Blank Success Story Format.pdf

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TITLE

1.1 Description

This OA describes

Pollution Prevention Objective:

1.2 Applicability of the OA

This OA applies to:

1.3 Alternatives

The following alternatives are analyzed in this OA:

1.4 Advantages and Disadvantages of the Alternatives

Alternatives

Advantages Disadvantages

Table 1 contains a comparison of each alternative based on selected criteria.

Table 1. Comparison of Alternatives for Oil Analyzer for Predictive Maintenance

Criterion Alternative 1

Alternative 2

1.5 Technical Analysis

1.6 Economic Analysis of the Alternatives

1.7 Sources of Information on the Alternatives

1.8 Tailored Spreadsheet for the OA

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Table 2.1

Row Cost Item Alternative 1 Alternative 2

16 .

Table 2.2

Row Cost Item Alternative 1 Alternative 2

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1.8.1 Basis of Economic Analysis

1.8.2 Economic Analysis Calculations for Alternative

Table 3 illustrates the steps required to perform a manual economic analysis.

Table 3. Economic Analysis Calculations

Startup Costs [$] Cost of Equipment Purchase + Installation Costs (including power hookups, piping, etc.) + Training Costs (if any)

Manpower Costs [$/yr] Manpower to Operate X Manpower Rate Cost of Oil Purchased [$/yr] Cost of X Amount Purchased

Disposal Cost [$/yr] Cost of Disposal X Quantity Disposed Recurring Costs [$/yr] Manpower Cost + Cost of Purchase + Disposal Cost

Payback Period (yrs) Startup Costs / [Recurring Costs for Current Operations

- Recurring Costs for Proposed Alternative]

First Year Cost of Process [$] Startup Costs + Recurring Costs

Three Year Cost of Process [$] Startup Costs + [3 X Recurring Costs]

First Year Savings [$] Current Operations Cost - Startup Costs - Alternative Operating Costs

Three Year Savings [$] [3 X Current Operations Cost] - Startup Costs - [3 X Alternative Operating Costs]

Notes:

If the payback is negative, it means that there is no payback - the alternative costs more than it saves.

If the savings is negative, then the alternative does not save money, but actually costs money over the current practice.