King Fahad University of Petroleum & Minerals

1. King Fahad University of Petroleum & Minerals Term Project Expansion of Water Treatment Plant Sagar M. Al-Anazi CEM-512 VALUE ENGINEERING

2. Presentation Outline • Introduction • Information Phase • Functional Phase • Creative Phase • Evaluation Phase • Development Phase • Implementation & Presentation CEM-512 VALUE ENGINEERING

3. Feed Pretreatment Process ROProcess Demineralization Process Condensate Water Tanks Reverse Osmosis Process CEM-512 VALUE ENGINEERING

4. The Existing Situation Information Phase The existing plant is unreliable plant and has the following problems: • Type of membranes (HFF) is obsolete. • There are reliability concerns. • High maintenance cost comparing with other RO plant. • More chemical consumption. • The other water treatment plants (old plants) will be demolished due to aging. CEM-512 VALUE ENGINEERING

5. Information Phase A company has decided to upgrade the existing water treatment plant the (RO Plant) to overcome the existing problems and to produce 1000 gpm industrial water instead of 400 gpm. CEM-512 VALUE ENGINEERING

6. Information Phase Objectives or required Criteria • Expand the existing water treatment plant by providing 16 new RO Units. • Use new type of membranes. • Minimize the chemical consumption. • The plant production should meet the required water quality. CEM-512 VALUE ENGINEERING

7. The original Design Information Phase • Install additional pretreatments Equipments. • Install 16 RO Units using SW Membranes to reduce water TDS to 20 ppm. • Install additional 4 Deminalizers to reduce the TDS to less than 5 ppm. • Install new Deaerator to remove gases. CEM-512 VALUE ENGINEERING

8. Information Phase Consultation Record CEM-512 VALUE ENGINEERING

9. Cost Data Information Phase CEM-512 VALUE ENGINEERING Tot. Cost = $ 9,550,000

10. Functional Phase Identify the present Function What does it now do? Item description: CEM-512 VALUE ENGINEERING Verb Noun Provide Industrial Water Support Operations What must it do? Objective or required criteria: Verb Noun Produce Industrial Water Support Operations

11. Functional Phase Functional Worksheet CEM-512 VALUE ENGINEERING

12. Creative Phase • Use Sea water spiral wound membranes • Eliminate Deminilizeras and related equipments. • Eliminate Deareator. Generate Ideas:- CEM-512 VALUE ENGINEERING

13. EvaluationPhase Feasibility Ranking Potential Cost Benefit Time to implement Probability of implementation Cost to develop CEM-512 VALUE ENGINEERING Tot. Rank Use Sea water spiral wound membranes 2 7 7 10 26 3 10 10 Eliminate Deminilizeras 9 10 39 1 10 8 8 8 34 Eliminate Deareator 2

14. Evaluation Phase Ideas Comparison CEM-512 VALUE ENGINEERING

15. Evaluation Phase Determining Weight for Evaluation Criteria Raw Score Assigned Weight CEM-512 VALUE ENGINEERING 7 10 A. Initial CostB. Operation & MaintenanceC. ReliabilityD. Environmental Impact 4 6 3 5 1 2 How Important3. Major Preference 2. Medium Preference1. Minor Preference

16. Evaluation Phase Evaluation Matrix Initial Cost Oper & Maint. Reliability Envir. Impact CEM-512 VALUE ENGINEERING Use Sea Water SW Membranes 42 56 Idea 2 Eliminate Deminilizers 47 Eliminate Deareator

17. Development Phase Additional InformationAdditional information was collected to develop the alternatives.1. Equipments specifications.2. VE team consulted RO manufactures like Toray (website). CEM-512 VALUE ENGINEERING

18. 0 20 13,000 1,000,000 30,000 Development Phase The original Life cycle of Deminilizers The Initial Cost of Deminilizer = $ 1,000,000 Annual maintenance cost =$ 13,000 Salvage value = $ 30,000 Interest rate = 5% Service life = 20 years Then, P = 1000,000+ 13000(12.4622) – 30,000 (0.3769) = $ 1,150,702.0 CEM-512 VALUE ENGINEERING

19. Development Phase Item Total Cost CEM-512 VALUE ENGINEERING $ 4,000,000 Original: Install 4 Deminilizers. Proposed:Eliminate the deminilizers $ 0 Saving in Initial Cost = 4,000,000 Original Life cycle cost = 4,602,808 Proposed Life cycle cost = $ 0 Saving in Life cycle cost = 4,602,808

20. 0 20 6,000 500,000 12,000 Development Phase The original Life cycle of Deaerator The Initial Cost of Deaerator = $ 500,000 Annual maintenance cost =$ 6,000 Salvage value = $ 12,000 Interest rate = 5% Service life = 20 years Then, P = 500,000+ 6000(12.4622) – 12,000 (0.3769) = $ 570,251.0 CEM-512 VALUE ENGINEERING

21. Development Phase Item Total Cost CEM-512 VALUE ENGINEERING $ 500,000 Original: Install a Deaerator Proposed:Eliminate the deaerator $ 0 Saving in Initial Cost = 500,000 Original Life cycle cost = $ 570,251.0 Proposed Life cycle cost = $ 0 Saving in Life cycle cost = $ 570,251.0

22. 0 20 8,000 250,000 9,000 Development Phase The original Life cycle of RO Unit The Initial Cost of RO Unit = $ 250,000 Annual maintenance cost =$ 8,000 Salvage value = $ 9,000 Interest rate = 5% Service life = 20 years Then, P = 250,000+ 8,000(12.4622) – 9,000 (0.3769) = $ 346,306 CEM-512 VALUE ENGINEERING

23. 0 20 8,000 270,000 9,000 Development Phase The proposed Life cycle of RO Unit The Initial Cost of RO Unit = $ 270,000 Annual maintenance cost =$ 8,000 Salvage value = $ 9,000 Interest rate = 5% Service life = 20 years Then, P = 270,000+ 8,000 (12.4622) – 9,000 (0.3769) = $ 366,306 CEM-512 VALUE ENGINEERING

24. Development Phase Item Total Cost CEM-512 VALUE ENGINEERING $ 4,000,000 Original: Install 16 RO Units Proposed:Install 16 RO Units and Use Sea Water Membranes $ 4,800,000 Increase in Initial Cost = $ 800,000 Original Life cycle cost = $ 346,306/Unit = $ 5,540,896 Proposed Life cycle cost = $ 366,306/unit = $ 5,860,896 Increase in Life cycle cost = $ 320,000

25. Development Phase Total Saving CEM-512 VALUE ENGINEERING Proposed Cost = $ 5,370,000 Original Cost = $ 9,550,000 Saving in Initial Cost =$ 4,180,000 = 44% Reduction

26. Development Phase Value Study Proposal VE team recommended the following proposal to design the water treatment plant:-1. Use sea water membranes.2. Eliminate the deminilizers. 3. Eliminate the deaerator.The final product of sea water SW membranes will meet the requirement of water quality (TDS will be less than 5 ppm). Also, the new plant production which is 1000 gpm will not be affected by this change.Using sea water membranes will increase the initial cost of the membranes by $ 800,000 but will eliminate the need for deminilizers and dearteator. CEM-512 VALUE ENGINEERING

27. Development Phase Proposal Advantages CEM-512 VALUE ENGINEERING 1. Reduce the initial cost2. Eliminate unrequited equipments.3. Minimize chemicals consumption.4. Reduce the maintenance cost.5. Safety.

28. Implementation Phase 1. How should it be implemented? VE proposal will be discussed with the engineering and project team to remove any roadblocks prior to management presentation 2. What should be changed and in what sequence? The proposed case will be discussed with engineering team. 3. Who should do it? Engineering department. 4. How long should it take? 5 months 5. Any deadline required? Before issuing the IFC package. CEM-512 VALUE ENGINEERING

29. Thank you Q & A CEM-512 VALUE ENGINEERING