Maximize Your ROI With Total Protection Solutions™
Cost justification of a capital investment
consists of two critical components—the payback/breakeven analysis
and the lifecycle savings analysis. Careful consideration of these
two components of return on investment (ROI) analysis is essential
for good decision-making on any capital equipment investment. This
is especially true in the case of a surge suppression system,
because its one and only function is to maximize savings by
eliminating transients and surges throughout all electrical
distribution systems and equipment operations. Both
payback/breakeven and lifecycle savings analysis prove the long-term
cost savings of investing in quality and performance over the first
cost/low bid alternative. |
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PAYBACK/BREAKEVEN
A payback or breakeven analysis evaluates how
much time (usually expressed in years) it takes to recover the
total cost of the initial investment (equipment and
installation). Most companies want to see a payback within 5
years for equipment with over a 10-year lifespan. Total
Protection Solutions™ equipment, with its standard 30-year free
replacement warranty, far exceeds the usual long-life
expectations. |
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LIFECYCLE
SAVINGS Lifecycle savings is the often
overlooked analysis of a capital equipment investment relative
to the cumulative savings over the useful life of the
investment. Lifecycle analysis is critical to reaching a true
understanding of the potential savings on long life projects
(typically 20-30 years). The TPS standard 30-year free
replacement warranty assures maximum lifecycle ROI.
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FIRST COST/LOW BID
Companies purchasing TVSS equipment solely on the basis of a low
bid/bid spec procurement process will overlook an opportunity to
realize significant long-term savings. Today, many specs require
TVSS to be integrated into switchgear and sub-panels. The resulting
lower cost product lines may protect against external surges while
doing little or nothing to protect against the daily damage caused
by internally generated transients. Over 80% of transients and
surges are internally generated. Sacrificing quality and performance
for first cost/low-bid will result in significant long-term expense.
The following are examples of an ROI comparison performed for a
manufacturing facility for a Total Protection System, using the
following criteria: |
Example # 1
- Total Protection Solutions™ TVSS investment
= $100,000
- Estimated installation cost = $12,000
- Estimated maintenance repair cost =
$100,000/year
- Estimated downtime = 2 X repair cost =
$200,000/year
- Example #1 TPS TVSS % savings = 10%
- Total Protection Solutions™
life cycle = 30 years
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Example # 2
- Total Protection Solutions™ TVSS investment
= $100,000
- Estimated installation cost = $12,000
- Estimated maintenance repair cost =
$100,000/year
- Estimated downtime = 2 X repair cost =
$200,000/
- Example #2 TPS TVSS % savings = 30%
- Total Protection Solutions™
life cycle = 30 years
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Here's how:
Example 1 ROI analysis
A. TPS surge suppression + installation = $112K
B. Maintenance/Equipment Repair Cost and Downtime = $300K/yr
C. Payback @ 10% savings
Payback = $112K ÷ (10%($300K)) = 3.73yrs.
D. Life-cycle savings:
$30K * 30yr - $112K = $788K
7 times investment |
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Here's how:
Example 2 ROI analysis
A. TPS surge suppression + installation = $112K
B. Maintenance/Equipment Repair Cost and Downtime = $300K/yr
C. Payback @ 30% savings
Payback = $112K ÷ (30%($300K)) = 1.24yrs.
D. Life-cycle savings:
$90K * 30yr - $112K = $2,588K
23.1 times investment |
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*cost of money and inflation not considered, which
minimizes this investment risk. |
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TOTAL PROTECTION SOLUTIONS™
WILL DRAMATICALLY MAXIMIZE YOUR ROI.
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TPS OFFERS SIGNIFICANT LONG-TERM SAVINGS
An investment in Total Protection Solutions™ products is an
investment in cost savings and increased productivity for the life
of your facility. A Total Protection System…
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REDUCES ELECTRICAL MAINTENANCE AND EQUIPMENT
REPAIR COSTS
TPS surge suppression protects your equipment and
facility from costly repairs due to electrical problems. If
unprotected, sensitive electronic devices are subject to damage from
transient events, and over time, these small spikes erode electronic
circuit connections, making them unstable and subject to failure. |
REDUCES DOWNTIME
Electrical disturbances cost North American companies more than $26
billion each year. For large businesses, even a few minutes in
operational disruption can cost millions of dollars in lost
information and revenue. Reducing downtime is the most important
priority in operating any facility. The cost of downtime is almost
always many times (10+) the cost associated with electrical
maintenance and equipment repair. A TPS Total Protection System will
ensure a dramatic reduction in downtime. |
INCREASES RELIABILITY
TPS products suppress and neutralize potentially damaging spikes or
surges. High frequency noise is filtered and reduced to harmless
levels, preventing degrading, damaging transients from disrupting
the processes you depend on every day. |
INCREASES PRODUCTIVITY
When your equipment is working, downtime is minimized, your staff is
productive, and your company is reaping huge benefits. In facilities
where productivity is routinely measured, significant increases can
be expected.
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