approach to motor management

Transcripción

approach to motor management
1·2·3
The 1 · 2 · 3
A p p r oac h to M oto r Ma na g e me n t
De m o n s t r a t e t h e Be n e f i t s o f Proactive Motor Management to Your Customers
Developed by The Motor Decisions Matter Campaign sm
VERSION 6.5
© 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
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Table of Contents
1·2·3 Quick Start Guide
1
Overview
2
Requirements
4
Getting Started 6
1·Input
8
Gathering Data
2·Results
11
Understanding and Comparing Costs
3·Decision
13
Take Action Now or When the Motor Fails
Additional Features of the 1·2·3 Spreadsheet 14
Next steps
16
Appendices
Appendix 1 Customer Questionnaire
Appendix 2 Sample 1·2·3 Spreadsheet Pages
Appendix 3 Building a Motor Management Plan
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1 · 2 · 3 Q UIC K S T A R T GUI D E
Follow these simple steps to educate your customer about the many benefits of energy-saving NEMA
Premium™ motors, best practice repair and proactive motor management. References are provided
throughout this instruction manual for more information about each topic.
Contact your customer (on the phone or in person) to discuss the company’s current motor practices. The Getting Started section of this manual provides guidance for conducting these initial meetings.
Review the customer’s motor population and choose several for evaluation. The Getting Started section also provides guidance on identifying motors that are good candidates for The 1·2·3 Approach.
Follow the 1·2·3 process for each of the representative motors.
1·I nput
Collect nameplate data on the representative motors and enter that data into the 1·2·3 Spreadsheet.
2·RESULTS
Review the calculated results with your customer. The spreadsheet will automatically calculate the annual energy cost, capital investment, incremental investment cost, life-cycle cost, annual energy savings, net present value (NPV) and simple payback period for each of the following scenarios:
• Replace the motor immediately with a NEMA Premium motor.
• Wait for the motor to fail, then rewind it according to best-practice guidelines.
• Wait for the motor to fail, then replace it with an EPAct standard-efficiency motor.
• Wait for the motor to fail, then replace it with a NEMA Premium motor.
NOTE: No one can predict how a motor will fail. In order to make a comparison based on this future event, the 1·2·3 Spreadsheet assumes that the motor will require rewinding when it fails.
3·Decision
Decide on the most cost-effective course of action for each motor, and click on the appropriate decision button. Once you click, the spreadsheet will automatically prepare labels for printing. These labels can be used to create tags that can be affixed to the motor and communicate your decision to others within the facility. You can print as many labels as necessary for tagging similar motors running similar applications. Clicking the decision button also carries the decision forward to other pages within the spreadsheet.
Introduce the appropriate optional pages to your customer. The Additional Features of the 1·2·3 Spreadsheet section of this instruction manual provides background and guidance on these additional features.
Meet with your customer to determine the best approach for implementing these decisions and for assessing other appropriate motor management strategies. The Next Steps section provides a framework for reviewing and planning the optimal next steps. Building a Motor Management Plan, Appendix 3 of this instruction manual, provides specific strategies and resources that you might want to discuss with your customer.
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Overview
Many managers do not realize that electricity costs account for approximately 95 percent of a motor’s
lifetime costs and that great savings can be achieved by increasing motor efficiency. Improving motor
efficiency may also improve productivity, reduce operating and maintenance costs and help improve
air quality by reducing greenhouse gas emissions. The 1·2·3 Approach to Motor Management provides
a simple and easy way to demonstrate these opportunities to your customers. It also provides a
framework for educating your customers about the value of implementing other motor management
strategies such as maintaining a spares inventory, proper motor sizing and best practice repairs.
The Ba sic Ste ps
The 1·2·3 Approach is designed for you and your customer to work as a team. Together, you select a
few representative motors for review, collect nameplate data from these motors and enter that data
into the 1·2·3 Spreadsheet. By reviewing these few motors, you can help clarify the opportunity with
your customer. Based on the results, you can create an appropriate motor management plan. Plans
often start with a more comprehensive motor survey. See the Next Steps section for details.
Once the data has been entered, the spreadsheet will automatically perform a number of similar
calculations for two possible courses of action:
Replace the motor immediately with a NEMA Premium™ motor, or proactively decide on an appropriate, cost-effective course of action in preparation for future motor failure.
• Rewind the existing motor following best practice procedures.
• Replace the failed motor with an EPAct standard-efficiency motor.
• Replace the failed motor with a NEMA Premium motor.
The spreadsheet calculates annual energy cost, capital investment, incremental investment cost,
life-cycle cost, annual energy savings, net present value (NPV) and simple payback period for each
course of action.
After the spreadsheet has made the calculations, you and your customer will review the results and
decide whether to replace each motor immediately or whether to repair or replace it upon failure.
This process is designed to create an opportunity to discuss the benefits of comprehensive motor
planning with your customer. The 1·2·3 Approach provides guidelines for discussing and prioritizing
appropriate strategies.
The I nstruc tion Manual
The 1·2·3 Approach can be completed quickly and easily, with a minimum amount of time required
for data collection. This manual provides guidelines for each step of the process, from entering data
to interpreting results. The 1·2·3 Approach is also designed to help you educate your customer about
other aspects of effective motor management. These educational opportunities are highlighted in the
text boxes located throughout this manual. The issues are raised as suggested points for discussion.
Feel free to include them or not as you feel appropriate. You may choose to introduce different
issues, depending on the situation. These topics are included (in alphabetical order) as part of the
Quick Start Guide of the 1·2·3 Spreadsheet.
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Overview
The 1·2·3 Spre adsheet
There are multiple pages in the spreadsheet.
•
The Quick Start page, reproduced as the first page of this manual, divides the process into five simple steps. It also provides an overview of some additional topics you might want to discuss with your customer. Thereafter, pages are grouped for each representative motor. The 1·2·3 Approach can accommodate up to five representative motors.
•
The Motor page is the backbone of the 1·2·3 Approach. After you enter the required data, this page automatically performs the calculations, presents the results and prompts you to make a decision. When you have evaluated the results and decided on a course of action, click the appropriate decision button on this page and the information is carried forward to the other pages of the spreadsheet.
• The Tag page enables you to print labels for creating motor tags that communicate your decision to others. Five Motor pages are provided to permit review of up to five representative motors. Remember the 1·2·3 Approach is not intended to be used as a comprehensive survey tool.
•
The Calculations page allows customers to look more closely at the financial calculations and to incorporate their company defaults into the formulas. This page also includes graphs and charts to help clarify the financial information provided. Note: If the default values are changed, be sure to return to the Motor page to review the recalculated results and reevaluate your decision.
• The Inventory page serves as a tool for demonstrating the value of creating a motor inventory.
• The Summary page provides cumulative financial information based on the decisions made and the number of similar motors in the facility.
Other Supporting Documents
The Appendices section contains a print version of the 1·2·3 Spreadsheet and samples of all
supporting documents. Supporting documents include the Customer Questionnaire, Motor
Management Contact List and Building a Motor Management Plan. The last-named document provides
a framework for moving beyond this initial demonstration. It will help you describe, choose and
prioritize the motor management strategies that will best suit your customer’s needs.
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Requirements
Soft w are
In order to run the 1·2·3 Approach to Motor Management spreadsheet, you will need Microsoft Excel®
Version 97 or later. To open the Instruction Manual and the Sponsor Contact list, you will need to
have Adobe Acrobat Reader installed.
Registration
All documents related to the 1·2·3 Approach to Motor Management are subject to change without notice.
In order to receive e-mail notification about updates and additions to the 1·2·3 Approach, you must
register electronically on the Motor Decisions Matter (MDM) Web site (www.motorsmatter.org). Only
registered users will be notified of changes and additions to the 1·2·3 Approach files. All registration
information will be kept confidential and will not be shared with other outside organizations.
Enabling Microsof t Excel Macros
When you first open the 1·2·3 Spreadsheet file, a message may be displayed about macro security.
If the Enable Macros button is active, click on Enable Macros and the file will open. If the Enable
Macros button is not active, you should see some information about a “SelfCert.” Click on “Always
trust this source.” Then the Enable Macros button will be activated and you can click on it to open
the file. You might also need to add the 1·2·3 Approach’s developer as a “Trusted Source” or revise
your security level. For assistance with these functions, open Excel’s “Help” feature and search on
“Macro Security.”
Custom er I nput
Achieving a credible result with the 1·2·3 Approach to Motor Management requires active participation
from your customer. The amount of time required, however, is minimal. To participate in the
process, your customer must provide two critical inputs: the annual operating hours of each sample
motor and the company’s total cost of electricity. In addition, the customer must provide informed
consent to all cost information entered into the 1·2·3 Spreadsheet. These include new motor costs,
installation costs and best practice rewind costs. The customer must also understand and agree to
the value used to estimate motor life.
A ssum ptions and Cl arific ations
The results calculated in the 1·2·3 Approach are based on several assumptions:
• The customer has provided the critical inputs.
• The customer is well informed and agrees that the motor life and motor costs used in the calculations are appropriate.
• A motor rewind will be required at failure. This assumption must be verified at the time the motor actually fails before any action is taken.
• Nameplate data, including full-load efficiency, is used in the 1·2·3 calculations.
• Motor efficiency will be maintained during the rewind process.
• For Net Present Value (NPV), no borrowing has occurred.
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Requirements
For More I nformation
The 1·2·3 Approach was developed by a diverse group working together through the Motor Decisions
Matter campaign. The group includes energy-efficiency program administrators, motor manufacturers,
motor sales/service centers, trade associations, the U.S. EPA and U.S. DOE. Sponsoring organizations
are available to answer questions about the 1·2·3 Approach, motor management benefits and
strategies, and the Motor Decisions Matter campaign. For a list of these sponsors and specific
contact information, visit www.motorsmatter.org and click on the Sponsors tab.
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G e tt i n g Sta r t e d
Choosing a Target Com pany
The following guidelines will help you to identify customers who are most likely to find significant
savings opportunities from the 1·2·3 process. Obviously, each organization offers unique
opportunities. You may choose to review motors and/or approach companies that fall outside the
guidelines. Remember, these guidelines are provided to help you identify possible opportunities.
They are not intended to be restrictive.
• Choose a medium-sized facility (fewer than 500 motors). Often, larger facilities already maintain a motor inventory or have implemented motor management procedures. Smaller organizations may not have motor populations with many similar motors.
• The facility should operate at least two shifts per day. Efficiency savings increase with longer operating hours. Generally, look for motors that are running a minimum of two shifts per day, i.e., 4000 hours or more per year.
•
•
Look for facilities with older motor populations. The greater the difference in efficiency between the current motor and a NEMA Premium motor, the greater the opportunity for savings. Pre-EPAct 1992 motors (before 1997) are likely to be significantly less efficient than newer models and
therefore offer the greatest savings.
Choose a facility with a large number of general-purpose motors of the same size and type, sized between 10 and 200 horsepower, running similar applications. NEMA Premium motors are readily available in this size range. Having many motors similar to the ones chosen for review effectively multiplies the outcome. Generally, custom motors do not make good candidates, as replacements are often expensive and/or not readily available.
• Make sure that the motors chosen are easily accessible. Accessibility is important for reading nameplate data. Accessibility also facilitates follow-up action on motors where 1·2·3 indicates immediate replacement.
•
Look for facilities in regions with high electricity costs. General information about electricity costs across the United States is available from the Energy Information Administration Web site (www.eia.doe.gov). Use this information to assist in understanding your region’s energy cost. Once you begin the 1·2·3 process, the actual cost of electricity must be supplied by the customer. Both energy and demand changes should be included.
Pre paring for the Ini tial Meeting
The initial meeting is a time to describe the 1·2·3 Approach to Motor Management, identify the
customer’s goals and expectations and reach agreement on important assumptions. It can be
approached in several ways.
The Customer Questionnaire provides useful information for beginning the process and assessing
the opportunity. For example, high energy costs and/or long operating hours indicate facilities with
good savings opportunities. The questionnaire can also be used to gauge the customer’s current
understanding of motor management and learn if the company’s current policies address motor
efficiency, life-cycle costing, best practice repair or other relevant issues. The questionnaire can be
used either prior to or during the initial visit, by phone or in person.
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G e tt i n g Sta r t e d
At this point, you may want to explore the opportunity for assembling a motor management team.
Utilizing a team approach can help to solidify support for developing and implementing motor
management strategies. While team composition varies from company to company, it often includes
the purchasing agent, the facility manager, a process or design engineer, and a representative from
upper management (participation by upper management is important for long-term success). You
may want to include others outside the customer’s organization, such as a utility representative or a
motor service center or motor sales representative. The Motor Management Team Contact Sheet can
help you assemble a motor management team. Forms are available in Appendix 2 of this manual and in the 1·2·3 Spreadsheet.
In some cases, it is easier to organize a team after having completed the 1·2·3 process. The 1·2·3
Approach’s financial analysis coupled with the opportunity for additional productivity savings is a
powerful tool for convincing reluctant upper-level managers of the potential benefits. Team building
is discussed again later in this manual.
Conduc ting an Ini tial Discussion
During the early part of the process, it is helpful to gain an understanding of your customer’s
familiarity with various aspects of motor planning as well as the customer’s motivations for
participating in the 1·2·3 Approach. You will want to review the company’s current practices and
discuss specific interests and concerns. Discuss any preconceptions the customer may have. Are
there specific goals or expectations that the customer already has in mind? Are they reasonable? It is
important to understand where the customer expects to find savings.
Review the 1·2·3 process with the customer and set appropriate expectations. Explain what the
process does and does not accomplish. Explain the 1·2·3 assumptions listed in the Requirements
section of this manual. Discuss and clarify the deliverables:
• A Motor page for each sample motor that shows the data entered, annual energy cost, capital investment, incremental investment cost, life-cycle cost, annual energy savings, net present value
(NPV) and simple payback period for each decision scenario.
• Optional: A plan for tagging the representative motors (Tags will clearly identify the selected proactive decision)
• Optional: A simple inventory form showing the motors reviewed
• Optional: An expanded view of the financial analysis defaults and calculations
• Optional: A summary page that provides cumulative cost and savings information about the decisions made
During this discussion, you will also need to learn about the company’s motor population. If
possible, you might request a walk-through of the facility. Determine your customer’s motor
sample size (generally five motors or fewer) and identify which motors will be used for this 1·2·3
Spreadsheet. Remember, the best candidates
• are general-purpose motors installed prior to 1997 (i.e., pre-EPAct 1992);
• operate more than 4000 hours per year (two shifts);
• are readily accessible;
• represent multiple motors of the same size and type running similar applications.
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1·Input
Use the Input section of the Motor page to gather the necessary information. The 1·2·3 Spreadsheet
contains five Motor pages. The actual number of motors to review is a decision to be made with your
customer. Note: While it is possible to review more than five motors by using the spreadsheet
multiple times, it is not recommended. The 1·2·3 Approach is a demonstration tool. It is not designed
for creating and maintaining a complete motor inventory.
Gathering Data
Before you begin, please be aware that there are two distinct classes of data to be entered: critical
and customer approved.
• Critical data must be supplied by the customer. There are two critical data inputs in this 1·2·3 Spreadsheet: OPERATING HOURS and COST OF ELECTRICITY.
• Customer-approved data is information that the customer provides or agrees is applicable. All nameplate, cost and other data input must be customer approved.
It is important to the 1·2·3 process, and to your credibility, that the customer knows the source of all
data and agrees that it is acceptable.
The Input data is divided into four sections. Data fields marked with an asterisk are required.
Name pl ate Data
This section contains information available from the motor nameplate.
This is an opportunity
to discuss the common
practice of oversizing
motors for a given
application and the
benefits of proper sizing.
MOTOR ID*: A unique identifier assigned for tracking and management purposes.
The actual speed of a
NEMA Premium motor may
be higher than the actual
speed of a same-speed
standard-efficiency motor.
Make certain that this will
not be an issue in the
motor being reviewed.
For example, faster speed
may significantly decrease
anticipated energy savings
in centrifugal applications,
such as pumps and fans.
RPM (rpm)*: The synchronous speed of the motor.
MANUFACTURER: The motor manufacturer’s name.
MODEL: The manufacturer’s model number.
SIZE (hp)*: The horsepower rating.
ENCLOSURE TYPE: The motor’s enclosure type.
NOMINAL EFFICIENCY (%)*: The nameplate nominal efficiency rated at 100 percent load. Some pre-EPAct motors do not list nominal efficiency on the
nameplate. For these motors, you may refer to the pre-EPAct default efficiency
table in the 1·2·3 Spreadsheet. This table represents the default values used by
the DOE’s MotorMaster+ software for pre-EPAct standard-efficiency motors.
NOTE: MotorMaster+ 4.0 was developed by the Washington State University
Cooperative Extension Energy Program (the Energy Program) and is funded by the
U.S. Department of Energy (U.S. DOE) via the Industrial Technologies BestPractices
Program (formerly the Motor Challenge Program). It is available for download free
of charge (http://www.eere.energy.gov/industry/bestpractices/software.html).
FRAME SIZE AND TYPE: NEMA frame size and type.
Nameplate efficiency
assumes a 100 percent
load. This is an
opportunity to introduce
load vs. efficiency curves
and to discuss the
relationship between the
two. Also, discuss the
implications of assuming
100 percent load, i.e., the
actual load and efficiency
are often below these
assumptions.
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1·Input
Motor loading has a
significant effect on motor
efficiency. Studies show
that many motors in the U.S. typically run at
40 percent load or less.1
Use this opportunity to
discuss the benefits of
actual load testing.
Motor management is
sometimes hard to justify
since motor purchases
are often capital budget
items while motor repair
and maintenance are
often operating budget
expenses and the cost
of electricity is often an
overhead cost. Obviously,
it is important to look
at the entire financial
picture when making
repair/replace decisions
or developing motor
management policies.
VOLTAGE RATING (volts): Rated voltage.
FULL-LOAD AMPS (amps): Rated amperage.
Fin anci al Infor mation
This section contains information necessary for the financial calculations.
Motor Life (yrs)*: The estimated useful life of a motor. Common estimates range from 10 to 30
years. Enter the customer’s estimate or accept the 1·2·3 Approach default value of 18 years.2 The
value used must be understood and approved by the customer.
COST OF ELECTRICITY ($)*: The aggregate cost of electricity. This can be calculated from the
customer’s electric bill by dividing the total energy cost by total kilowatt-hours consumed.3
DESIRED PAYBACK PERIOD (yrs): The company’s hurdle rate for capital expenditures. For most
companies, payback period is generally between one and five years. Two years is a common value.
If the company’s payback period is unknown, the suggested value is two years, provided this meets
customer approval.
HORSEPOWER BREAKPOINT: Some companies have developed a
simple guideline to replace all motors that fall below a particular
horsepower upon failure. The motor size at which this occurs is called
the Horsepower Breakpoint. The value will vary from one company to
the next and should be based on life-cycle cost calculations.
Applic ation Infor mation
This section contains information pertaining to motor usage.
YEAR MOTOR INSTALLED: The year the motor was first installed.
MOTOR LOCATION: Facility, production line or other description of the
motor’s location.
APPLICATION: Equipment powered or other description of motor’s use.
TOTAL YEARLY OPERATING HOURS (hrs)*: Operating hours per year.
This value can be easily calculated by multiplying (the number of
hours the motor operates each day) x (number of days the motor
operates each week) x (the number of weeks the motor operates each year).4
REPAIRS/REWINDS: This input serves as a flag for discussion about
one or more important considerations regarding motor repair as
stated on the nameplates.
You might discuss the possible
negative effects of improper motor
repair. ANSI/EASA AR100 coupled with
EASA’s Guidelines for Maintaining
Motor Efficiency During Rebuilding
describes commonly accepted best
practice repair procedures. These are
available on EASA’s Web site (www.easa.com). You can also point
out the benefits of working closely
with a repair center and introduce the
concept of developing a motor repair
specification such as ANSI/EASA AR100.
If the motor has previously suffered a
catastrophic failure, it may be operating
below nameplate efficiency. Some
types of damage (such as damage to
the iron core) may not be visible but
may affect performance.
Frequent motor failure is an indicator
that further analysis is required. There
may be other problems with the motor
and/or motor system.
QUANTITY OF SIMILAR MOTORS*: Number of motors of the same size
and type running similar applications.
1. Greenberg, “Incentives for Premium-Efficiency Motors: The Role of Prescriptive Rebates in the Post-EPAct Era,” E-Source
(ER-03-9 Tech May 2003).
2. Based on information from Nadel, Elliot, et al., Energy-Efficient Motor Systems: A Handbook on Technology, Program, and Policy Opportunities, Second Edition, (Washington, D.C., American Council for an Energy Efficient Economy, 2002), p. 206, Table 6-14.
3. Critical data: Cost of Electricity must be supplied by the customer to comply with the 1·2·3 Approach.
4. Critical data: Operating Hours must be provided by the customer to comply with the 1·2·3 Approach.
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10
1·Input
Cost an d efficienc y Infor mation
This section allows you to input applicable new motor efficiency, installation and repair costs.
Remember, the customer must provide or give his informed consent to the costs entered.
INSTALLATION COST*: The cost of installing a new motor. Installation cost is included in capital
investment, life-cycle cost and net present value calculations.
One common stumbling
block for purchasing a
NEMA Premium motor is
the higher initial cost.
Explain life-cycle costing
as it applies to motors.
Incentives for NEMA
Premium motors can also
help to overcome the
initial cost differential.
AVAILABLE INCENTIVE: In many areas, financial and/or technical assistance is available for NEMA
Premium motors and other motor system improvements. Learn what opportunities are available in
your area by asking your utility, state energy office or regional efficiency organization representative.
CEE’s “National Summary of Energy-Efficiency Programs for Motors and Drives” contains information
about many incentive programs across the U.S. and Canada and can serve as a starting point (www.motorsmatter.org).
NEMA PREMIUM MOTOR COST*: The cost of the specific NEMA Premium motor selected. This cost will
vary by manufacturer, sales center, motor size and type. Motors are often discounted from list price.
NEMA PREMIUM EFFICIENCY*: The nominal efficiency of the selected motor as stated on the
nameplate.
EPACT MOTOR COST*: The cost of the EPAct motor selected. This cost will vary by manufacturer,
sales center, motor size and type.
EPACT EFFICIENCY*: The nominal efficiency of the selected motor as stated on the nameplate.
BEST PRACTICE REWIND COST*: The cost of rewinding the motor following EASA’s best practice
guidelines as described in ANSI/EASA AR100 and EASA’s Guidelines for Maintaining Motor Efficiency
During Rebuilding (Tech Note 16).
Once the required data has been entered, the 1·2·3 Approach will automatically perform the
necessary calculations.
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11
2 · R e s u lt s
Note: Please make sure all required fields marked with an asterisk are complete before continuing with
the 1·2·3 process. If cells in the RESULTS section are blank, it indicates that one or more of the required
inputs have not been entered.
Un derstan ding and Co mparing Costs
The 1·2·3 Approach to
Motor Management
identifies potential cost
savings. It does not
guarantee that these
savings will be realized.
For example, the actual
operating load and/or
motor efficiency may
differ from the nameplate
data, which will affect the
savings actually achieved.
The Results section enables you to compare the operating costs and financial benefits of each
potential course of action. Since most motor users are surprised to learn how much they spend
each year to operate their electric motors, it is an opportune time to educate your customer about
controlling energy costs through life-cycle costing and proactive planning.
In addition to saving money on energy, planning ahead for motor failure — and having the right
motor available when it fails — can also greatly reduce downtime and increase productivity. You can
use the 1·2·3 process to highlight these additional bottom-line benefits.
Act Now
The first question to answer is, “Do the potential energy savings justify replacing this operating
motor with a NEMA Premium motor?” To evaluate this, review the first two columns of the Results section.
• CURRENT COSTS (BASE CASE): This column provides information about the operating costs for the currently installed motor. These values provide the base case for the Act Now comparison.
This is an opportune time
to discuss the benefits of
proactive motor planning
with your customer.
Planning ahead for motor
failure ensures that
the right motor will be
available when needed.
Help move your customer
from panic to planning by discussing the benefits
of maintaining a spares
inventory of critical
motors.
• REPLACE IMMEDIATELY WITH NEMA PREMIUM: This column provides information about the operating costs for a same-size-and-type NEMA Premium motor.
Act Upon Motor Fai lure
The second question to answer is, “If the potential energy savings do not support immediate replacement, what course of action will be most cost-effective
when the motor fails?”
If this motor seems to
be a good candidate for
replacement, reiterate
the opportunity to
measure actual load
and, if warranted, resize
the motor to achieve
additional savings. Be
certain you obtain a
complete load profile
before making any
recommendations.
In this course of action, the 1·2·3 Approach assesses several different possibilities to make certain
that the customer chooses the most cost-effective solution, given the facility’s operating conditions
and electricity rates. These actions are: rewind the current motor according to best practice repair
guidelines, replace the failed motor with a standard-efficiency motor or replace the failed motor with
a NEMA Premium motor. Columns three through five of the Results section display these calculations.
The final column, Comparing Replacement Choices, provides a direct comparison of the replacement
at failure with EPAct or NEMA Premium options.
The 1·2·3 Approach assumes that the motor will need to be rewound when it fails. It is important that
the customer understand that if rewind is not the required repair when the motor actually does fail, this
calculation may not be valid and the decision should be reassessed.
• REWIND USING BEST PRACTICE (BASE CASE): This column provides information about operating and rewind costs (following EASA’s best practice repair guidelines) for the current motor. These values provide the base case for the Act Upon Failure comparison.
• REPLACE WITH EPACT: This column provides information about the costs associated with replacing the current motor at failure with a standard-efficiency EPAct motor.
© 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
T HE 1 · 2 · 3 A PPRO A CH T O M O T OR M A N A GE M EN T
Ve r s i o n 6 . 5
12
2 · R e s u lt s
The 1·2·3 Approach
assumes that best
practice procedures
are followed and that
nameplate efficiency will
be maintained during the
rewind process. This is
a good opportunity to
discuss the possibility
that some motor repair
practices will decrease
efficiency. A motor repair
specification can help
define and standardize the repair service the
customer receives.
You might also stress the
importance of working
with the motor repair
center to ensure best
practice procedures
are followed. Quality
assurance programs such
as Advanced Energy’s
Proven Excellence
Verification Program, EASA Q and ISO
certification provide
indications that motor
service center will deliver a quality repair.
• REPLACE WITH NEMA PREMIUM: This column provides information about the costs associated with
replacing the current motor at failure with a NEMA Premium motor.
Reviewing the calculated results with your customer will help determine the best course of action
when the motor fails. All formulas used in these calculations are clearly displayed on the Formula
page of the spreadsheet and as part of Appendix 2 of this instruction manual.
Calcul ated Value s
ANNUAL ENERGY COST: The calculated energy cost to operate the motor for the designated number
of hours at the designated energy cost.
CAPITAL INVESTMENT: The total cost for implementing a particular decision.
Act Now
• Current Costs: The investment cost is zero. No investment is necessary to continue operating the current motor as is.
• Replace Immediately with NEMA Premium: The investment cost is the new motor cost plus the installation cost.
Act Upon Motor Fai lure
All actions require that the failed motor be removed and a working motor be reinstalled. The 1·2·3
Approach assumes that the cost of reinstalling a rewound motor, installing a new EPAct motor and
installing a new NEMA Premium motor are all equal. In addition, all calculations (annual energy
savings, NPV and simple payback period) are based on the incremental cost between the decision
being considered and the applicable base case.
• Rewind using Best Practice: The Capital Investment is the rewind cost plus the installation cost.
• Replace with EPAct: The Capital Investment is the cost of a new standard-efficiency motor plus the installation cost.
• Replace with NEMA Premium: The Capital Investment is the cost of a new NEMA Premium motor plus the installation cost.
INCREMENTAL INVESTMENT COST: The calculated difference between the Capital Investment of the
action being considered and the applicable base case.
LIFE-CYCLE COST: The cost of operating the motor over its full lifetime, including initial purchase
price (less available incentive), installation cost and (total) annual energy costs.
ANNUAL ENERGY SAVINGS: The calculated difference between the annual energy cost of the
applicable base case and the annual energy cost of the action being considered.
NET PRESENT VALUE (NPV): Net Present Value is the sum of the investment made in the current
period and the present value of future cash flows. The present value is calculated using a discount
rate. If the net present value is zero or greater, then the project is generally considered to be viable.
The NPV calculated by the 1·2·3 Approach is based on the incremental investment cost and cash
flows for the motor life entered using the assumptions shown. It utilizes Excel’s standard formula.
SIMPLE PAYBACK: Based on the annual savings calculated above, this is the length of time it will
take to recoup the incremental investment cost.
© 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
T HE 1 · 2 · 3 A PPRO A CH T O M O T OR M A N A GE M EN T
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13
3·Decision
Take Action Now or W hen the Motor Fails
Take some time to review and discuss the 1·2·3 results with your customer. In addition to the
calculated savings and financial results, you will need to consider the company’s internal hurdle
rate (payback period, NPV, etc.), capital budget requirements and budgeting cycle. Sometimes there
are other issues, such as the motor’s operating environment, that will factor into the decision. Work
together to decide on the appropriate course of action for each of the motors analyzed.
Once this proactive decision has been made, press the appropriate button at the bottom of the
spreadsheet. This will carry that decision forward to other pages within the spreadsheet.
You have now completed the basic 1·2·3 Spreadsheet. This is a good time to revisit the customer’s
initial expectations to make certain that the results and their implications are clearly understood.
Review any issues that may have arisen during the process. Then assess your customer’s interest in
examining additional motors and/or pursuing additional strategies. © 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
T HE 1 · 2 · 3 A PPRO A CH T O M O T OR M A N A GE M EN T
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14
A dd i t i o n a l F e at u r e s o f t h e 1 · 2 · 3 S p r e ad s h e e t
There are several additional forms in the 1·2·3 Spreadsheet that might interest your customer. These
are all optional, and their usage will not affect the reliability or credibility of the basic approach. Rather,
they are provided to complement and enhance its capabilities.
Various pages from the 1·2·3 Approach can be combined with the Motor pages to form a compelling
report that supports the use of NEMA Premium motors and other motor management strategies. This
report might be presented to your customer’s senior managers to garner their support for developing
and implementing a motor management plan.
Labels
Color coding the labels
can simplify tag usage.
For example, the customer
might use red labels for
the “Replace Immediately”
tags, yellow for “Rewind
at Failure,” green for
“Replace with NEMA
Premium at Failure” and
blue for “Replace with
EPAct at Failure.”
In order to help preserve and communicate these motor decisions to other facility personnel, the
1·2·3 Approach offers a way to print labels. These labels can be used to create motor tags that
indicate the appropriate future action.
To print the labels, go to the Tags page of the spreadsheet. This allows you to create five sets of
front and back labels. Print as many pages as needed to address the quantity of similar motors you
want to tag. Labels can be printed on Avery 5163 or other comparable 2" x 4" labels.
Standard labels are unlikely to stick directly to the motor. They will need to be affixed to a tag that
can be tied or wired to the appropriate motor(s).
Fin anci al Calcul ations
This page is divided into several sections. Please note that all results displayed on this page are for
one motor only. Cumulative results, i.e., multiplied by the number of similar motors, are displayed
on the Summary page. Navigation buttons are provided across the top and throughout this page to
facilitate movement from one section to another.
ASSUMPTIONS
In some cases, a company’s financial officer may want to change the defaults or perform financial
calculations with varying inputs. The first section of the Financial Calculations page provides this
flexibility. Simply enter your customer’s company defaults into the table at the top of the form, and
the 1·2·3 Spreadsheet will recalculate based on these values.
Please note the option to enter an energy inflation factor. The energy Inflation Factor
provides an opportunity to incorporate projected changes in electricity costs over the life of the
motor. The default rate is 0 percent, i.e., the electricity rate will remain constant over the life of the
motor. As with all data entered into the 1·2·3 Approach, the customer must understand and approve
the value entered.
Recalculating Financial performance
If any default values have been changed, click on the navigation button provided to return to
the Motor page to review the new results. This process can be repeated multiple times to satisfy
questions raised by the company’s financial managers.
Should your customer choose to change the repair/replace decision based on these recalculated
values, click the corresponding decision button on the Motor page to carry the decision to the other
pages of the spreadsheet. © 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
T HE 1 · 2 · 3 A PPRO A CH T O M O T OR M A N A GE M EN T
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15
A dd i t i o n a l F e at u r e s o f t h e 1 · 2 · 3 S p r e a d s h e e t
Calculation Results
The final section of the Financial Calculations page provides graphs and tables to help illustrate the
financial implications of various decisions.
This inventory tool is
rudimentary and cannot
be used to maintain an
effective inventory or
motor tracking program.
It does, however,
provide an opportunity
to introduce other more
comprehensive programs
like MotorMaster+ to
interested customers.
sample Motor I nventory Form
It is impossible to effectively manage an asset that you don’t understand. Therefore, the 1·2·3
Approach includes a spreadsheet that can be used to educate the customer about the many
benefits of creating and maintaining a motor inventory. Like the financial form, it will be filled in
automatically based on the previously entered data.
This page is intended to demonstrate the value of maintaining an inventory. It is not intended as a
comprehensive tool. If you and your customer are interested in learning more about developing a
motor inventory, please refer to Motor Decisions Matter’s Motor Planning Kit, which is available free
of charge at www.motorsmatter.org. Summary Re port
The summary page views the results of the 1·2·3 Approach as a project to be completed. It takes
the results generated for each representative motor and calculates cumulative financial results
based on the decisions made for each motor and the number of similar motors in the facility.
Data for cumulative capital expenditure, cumulative annual energy cost, cumulative annual energy
savings, etc., are combined to create a report that is easy to read and understand. Grand totals, i.e.,
summations of the cumulative totals for all representative motors, are also provided.
If you choose to consider the financial implications of a different decision for any representative
motor at any time, return to the Motor page and click on a different decision button. That will carry
the new decision and the recalculated results throughout the spreadsheet.
The second page of the summary sheet provides a sample letter encouraging companies to develop
and implement a customized motor management plan. Use the letter as is, or customize it with your
contact information in the spaces provided at the top and bottom of the page. Alternately, you may
prefer to design your own summary page to clearly lay out the best next steps for your customer.
© 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
T HE 1 · 2 · 3 A PPRO A CH T O M O T OR M A N A GE M EN T
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16
Next steps
D e v e l o p i n g a M o t o r M a n a g e m e n t P l a n a n d Im p l e m e n tat i o n St r at e g y
In addition to its use as a demonstration tool, the 1·2·3 Approach is a way to help your customers
understand and realize the many benefits of a comprehensive motor management plan. The next
critical step is to develop a multifaceted plan and strategy for implementation.
To begin, it is often helpful to sit down with your customer to review what you have seen, heard and
learned so far. What payback period did you see? This will likely influence the scope and timing of
future actions. What types of motors did you see in the facility? Did you notice motor usage patterns
such as consistent oversizing? Did you observe a large population of older motors? Does your
customer have a motor purchasing policy? These types of observations will help you structure a plan
that best suits your customer’s current needs.
Building a Motor Management Plan, Appendix 3 of this instruction manual, divides a typical
comprehensive motor management approach into manageable, independent steps. These steps can
be included, prioritized, excluded and/or adapted to suit your customer’s needs and budget. The
appendix describes each of these activities and provides resources to support implementation. For
additional support, please refer to MDM’s Motor Planning Kit.
Discuss with your customer which of these activities are likely to achieve the greatest benefit.
You might also want to discuss which activities can be accomplished in the short term and which
might take longer. Which activities can be accomplished with minimal resources and which might
require some capital investment? Building a Motor Management Plan is provided as a worksheet to
review and discuss each possible activity. The boxes are one method to mark and/or prioritize those
activities appropriate for your customer.
Convening the Motor Mana gement Te am
Assembling a motor management team will help ensure successful results of any motor management
plan. Ideally, this team includes a senior level manager, a purchasing agent, a facility manager, a
maintenance manager and/or an engineer, as well as the customer’s motor sales representative(s),
motor sales/service center representative(s) and/or utility account representative. Including
managerial, financial and facility representatives provides needed guidance and support for longterm motor management strategies. The Motor Management Team Contact List offers one way to
organize the team’s information. Forms are available in Appendix 2 of this manual and in the 1·2·3 Spreadsheet.
The financial pages of the 1·2·3 Spreadsheet may help to justify the effort required to assemble a
team to develop and implement a comprehensive motor management plan. Talk with your customer
about the correct timing for bringing others into the process.
The motor management team may be interested in pursuing energy management on a larger scale.
Addressing motor systems or lighting, for example, often results in significant additional savings. If your customer is interested in learning more about tools for managing industrial processes, the DOE’s Industrial Technologies Program Web site (www1.eere.energy.gov/industry) is an excellent resource.
Some companies take an overarching approach to energy and environmental management at the
corporate level. For more information, visit EPA’s ENERGY STAR® Web site (www.energystar.gov).
MDM’s Motor Planning Kit can direct you to these and other organizations that support both motor
system optimization and corporate energy management.
© 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
T HE 1 · 2 · 3 A PPRO A CH T O M O T OR M A N A GE M EN T
Ve r s i o n 6 . 5
17
Next steps
Pre senting Your Re sults to Upper Mana gem ent
At some point in the process, it is often necessary to gain the involvement and support of
upper management. The 1·2·3 Approach is designed to help engage managers by providing clear,
compelling financial reasons for implementing sound motor management and proactive motor
planning strategies.
First, consider the financial results: life-cycle cost, net present value and payback period. Please note
that each of these calculations is carried out automatically as you input the customer’s data into the
1·2·3 Spreadsheet. There are certain defaults included in these calculations. For some customers,
their financial managers may want to modify these defaults to reflect their company guidelines.
In making the case for motor management, be sure to emphasize the non-energy benefits as well
as the operational cost savings. For example, developing a spares inventory for critical motors can
significantly reduce downtime when motor failure occurs. By talking with your customer, you may be
able to quantify this benefit in terms of material waste, improved productivity, etc.
Or your customer might greatly benefit from a predictive maintenance schedule that helps the
customer to schedule — and therefore plan — for necessary downtime.
While the ultimate plan of action will vary according to each customer’s needs and constraints, the
energy and non-energy benefits gained through proactive motor management based on life-cycle
costing will provide value for years to come.
© 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
A P P END I X 1
Customer Questionnaire
Background Information
1. What business or industry are you in?
2. How did you hear about motor management?
Company manager Electric utility
Motor vendor
State or regional efficiency organization
Motor sales/service provider
Newspaper, magazine, trade journal
Other
3. Why are you interested in pursuing motor management as a business strategy?
Reduce electric bills
General cost reduction
Reduce downtime Other
4. Does your company currently have any of the following motor-related policies? Please check all that apply.
Motor Procurement Policy
Motor Repair Policy Motor Management Policy
Predictive and Preventive Motor Maintenance Schedule
5. Does your company currently do any of the following? Please check all that apply.
Maintain a motor inventory
Track motor repair history
Track motor maintenance and repair costs
Track process downtime
6. How do you currently manage your spare motor inventory?
Maintain in-house spares inventory
Agreement with motor sales/service center
Agreement with motor vendor
Do not maintain a spares inventory
7. How many motors do you estimate are in your facility?
< 10
101 – 500
11 – 100
501 – 1000
> 1000
Requi red Information
8. How many hours does your plant typically operate?
Hours per day:
Days per week:
9. What are your electricity costs? In addition to the cost per kWh, be sure to include other appropriate costs such as demand charge, core charge, power factor penalty and any adjustments which might apply.
10.If available, please provide your company’s hurdle rate for capital projects such as payback period.
11. If available, what is your new motor discount rate?
© 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Quick Start Guide
Welcome to the 1·2·3 Approach to Motor Management:
Quick Start Guide
Follow these simple steps to educate your customer about the many benefits of NEMA Premiumefficiency motors, best practice repair, and proactive motor management.
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.



Contact your customer (on the phone or in person) to discuss the company's current motor practices.
Review the customer's motor population and choose several for evaluation.
Follow the 1·2·3 Process for each of the representative motors.
Collect nameplate data on the representative motors and enter that data into the 1·2·3 spreadsheet.
1 - Input
Review the calculated results with your customer. The spreadsheet will automatically calculate the annual
2 - Results
energy costs, life-cycle costs, annual energy savings, net present value (NPV), and simple payback period for
each of the following scenarios:
* Replace the motor immediately with a NEMA Premium motor.
* Wait for the motor to fail, then rewind it according to EASA's best practice guidelines.
* Wait for the motor to fail, then replace it with an EPAct standard-efficiency motor.
* Wait for the motor to fail, then replace it with a NEMA Premium motor.
NOTE: No one can predict how a motor will fail. In order to make a comparison based on this future event, the 1·2·3
spreadsheet assumes that the motor will require rewinding when it fails.
Decide on the most cost-effective course of action for each motor and click on the appropriate decision button.
Once you click, the spreadsheet will automatically prepare two-sided labels for printing. These labels can be
used to create motor tags to inform other personnel in the facility of the decision. You can print as many labels
as necessary for tagging similar motors running similar applications. Clicking the decision button also carries the
decision forward to other pages within the spreadsheet.
Introduce the appropriate optional pages to your customer.
Meet with your customer to determine the best approach to implement these decisions and set up a process for reviewing other
appropriate motor management strategies. Building a Motor Management Plan , Appendix 4 of the 1·2·3 Instruction Manual,
provides specific guidance and resources for strategies you might want to discuss with your customer.
3 - Decision


GO TO:
Discussion
Points
Motor 1
Page
Version 6.5 All files subject to change.
Motor 2
Page
Motor 3
Page
Motor 4
Page
Motor 5
Page
Sample
Inventory
Summary
Team
Contacts
Formulas
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Discussion Points (page 1 of 2)
Welcome to the 1·2·3 Approach to Motor Management:
Points for Discussion with your Customer
The 1·2·3 Approach to Motor Management is designed to demonstrate possible energy savings and to help you talk with
your customer about a number of motor selection and operations issues. These are highlighted in text boxes on each
spreadsheet page which correspond to the talking points highlighted in the instruction manual. For a more complete
discussion of these concepts, refer to MDM’s Motor Planning Kit which can be downloaded free of charge from their
website, www.motorsmatter.org.
Terms and formulas: All terms and formulas used in this spreadsheet are clearly defined on the Formula Page at the end of this
workbook. Click the “” symbol at the bottom of the page to navigate.
Available Incentive: Many utilities offer incentives for improving motor efficiency, installing adjustable speed drives, and/or
improving overall motor system efficiency. A summary of incentive programs is available on the Motor Decisions Matter web site,
www.motorsmatter.org. For more information, check with the customer’s local utility, the state energy office, or regional efficiency
group for information. Manufacturers may also offer incentives for purchasing NEMA Premium Efficiency Motors.
Cost of Electricity: When calculating the total cost of electricity, be sure to include usage, demand, and any other charges which
might apply. Information can be found on the customer’s monthly bills or by contacting their local utility. This input must be provided
or approved by the customer.
Energy Inflation Factor: Located on the Calculations Page, this inflation factor allows estimates of future energy costs to be
highlighted and factored into the calculations.
Full-Load Efficiency: All 1·2·3 Approach calculations are based on the full-load nameplate efficiency.
Horsepower Breakpoint: To expedite repair/replace decision-making for “smaller” motors, some companies follow a policy to
replace all motors which fall below a specific size. This size is often referred to as the “Horsepower Breakpoint.” Encourage your
customer to create a written purchasing policy that includes the horsepower breakpoint if appropriate.
Version 6.5 All files subject to change.
© Copyright 2004, 2005 , 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Discussion Points (page 2 of 2)
Welcome to the 1·2·3 Approach to Motor Management:
Points for Discussion with your Customer (cont.)
Life-Cycle Cost: This concept is at the heart of the 1·2·3 Approach and effective motor management. It is essential that your
customer understand that annual electricity costs are typically five to ten times higher than the initial purchase price and that even
seemingly small increases in efficiency can significantly reduce energy costs over the life of the motor. The 1·2·3 Approach was
developed to help you demonstrate and explain life-cycle costs to your customer. The calculations page provides graphs and
tables to help explain this concept.
Motor Costs: These inputs must be provided or approved by the customer.
Motor Life: Many factors such as load, duty cycle, and operating environment affect motor life. Typical estimates range from 10 to
30 years. You can accept the default value of 18 years or enter another value provided or approved by your customer.
Motor Loading: Be on the lookout for motors with varying load requirements especially in pump and fan applications. In some
variable load applications, adjustable speed drives can provide significant energy and cost savings.
Motor Sizing: In some cases, motors are significantly oversized for their given load application. As you work with your customer,
look for opportunities to save energy and money by “right-sizing” motors. Be sure to consider daily and seasonal production
schedules, or other factors which might apply.
Motor Speed: NEMA Premium motors often operate at faster speeds than their energy efficient or standard efficient counterparts.
It is important to talk with your customer about motor speed as in some applications (like centrifugal loads) higher speeds may
result in increased energy consumption and cost.
Repairs/rewinds: Multiple rewinds and/or major repairs may indicate an application or system problem that should be
investigated. Encourage your customer to require root cause failure analysis when contracting for motor repairs.
Total Yearly Operating Hours: This input must be provided or approved by the customer.
Version 6.5 All files subject to change.
© Copyright 2004, 2005 , 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Data
Input
for Motor 1
Sample
MotorPage
1
The 1·2·3 Approach to Motor Management:
Motor 1 Page
Company Information
Company Name
Location
Contact
Date Evaluated
Input: Representative Motor 1
Motor Nameplate Data
Motor ID *
Manufacturer
Model
Size (hp) *
RPM
Enclosure Type
Full-Load Efficiency (%) *
Frame Size and Type
Voltage Rating
Full-Load Amps
Financial Information
Motor Life (yrs) *
Cost of Electricity (Note 1) *
Desired Payback Period (yrs)
Horsepower Breakpoint (hp)
* Denotes required fields
Motor Application Information
Year Motor Installed
Motor Location
Application
Total Yearly Operating Hours *
Repairs/Rewinds
Quantity of Similar Motors *
New Motor & Best Practice Rewind Costs
Motor Installation Cost *
Available Incentive
NEMA Premium Motor Cost *
NEMA Premium Efficiency *
EPAct Motor Cost *
EPAct Motor Efficiency *
Best Practice Rewind Cost *
Results: Representative Motor 1
These results are for one motor.
Cumulative results for the full
quantity of similar motors are
displayed only on the Summary
page.
Act Now
Current Costs
(Base Case)
Replace
Immediately
with NEMA
Premium
Act Upon Motor Failure
Rewind Using
Best Practice
(Base Case)
Annual Energy Cost
Capital Investment
Incremental Investment Cost
N/A
N/A
N/A
Life-Cycle Cost (Note 2)
Annual Energy Savings
Net Present Value
Simple Payback Period
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Replace with
Replace with
EPAct
NEMA Premium
Comparing
Replacement
Choices:
NEMA Prem.
to EPAct
Decision: Representative Motor 1
Review the results with your customer. Decide on the appropriate
course of action. Then, click the corresponding button and the 1·2·3
software will generate label(s) that you can use to tag this
representative group of motors. It will also enter the decision in the
1·2·3 Motor Inventory and Summary.
Act Now
Act Upon Motor Failure
Replace
Rewind Using
Immediately with
Best Practice
NEMA Premium
Replace with
EPAct
Replace with
NEMA Premium
Notes:
1. One way to calculate your cost of electricity is to divide the total cost of electricity by the number of kWh consumed in a standard billing period.
2. Life-Cycle Cost = (Motor Cost - Available Incentive) + Motor Installation Cost + Lifetime Energy Cost.
3. The 18-year default value for Motor Life is an approximation based on data summarized in Nadel, Elliot, et al., Energy-Efficient Motor Systems: A Handbook
on Technology, Program, and Policy Opportunities Second Edition (Washington, D.C., American Council for an Energy Efficient Economy, 2002), p. 206 Table
6-14.
Customer understanding and approval of all data input is critical to the 1·2·3 Approach.
Version 6.5 All files subject to change.
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Financial Calculations for Motor 1 (page 1 of 4)
Sample Motor 1
1·2·3 Approach to Motor Management:
Financial Calculations
These results are for one motor. Cumulative results for the full quantity of similar motors are displayed only on the Summary page.
Company Information
Company Name
Location
Contact
Date Evaluated
Assumes motor purchased for cash; i.e.
no financing costs.
Values can be changed to reflect company defaults.
Discount rate
Tax rate
Energy inflation factor
Five-year Depreciation
Year
Depreciation
Schedule:
1
2
3
4
5
Application Information (from Motor 1 Page)
Assumptions
Motor ID
Size (hp)
RPM
Enclosure type
Motor location
Application
Total yearly operating hours
Motor Life
Cost of Electricity
Desired Payback Period (yrs)
0
Recalculating Financial Performance
Entering different values for any of these criteria will affect the financial calculations for this
motor. To review the recalculated results, click here to return to the Motor 1 page. Once you
have re-assessed your decision, click the appropriate decision button. You must click a
decision button to initiate the recalculation and carry it through to all Spreadsheet pages.
Go To Motor 1 Page
Calculation Results Page 1 of 3: Representative Motor 1
Comparing Replacement Choices at Failure:
NEMA Premium to EPAct
NEMA Premium may cost more to purchase but may generate significant savings
The incremental cost of purchasing a NEMA
Premium motor may be quickly recovered by
reduced energy costs over the life of the motor.
$0
Difference in
Lifetime
Savings
$0
Difference in
Purchase Price
$0
Definition of Net Present Value: The value of
future cash flows, i.e., future energy cost
savings, expressed in today's dollars.
The calculation is based on incremental cost. It
incorporates the discount rate, tax rate, and
depreciation schedule shown in the
Assumptions Table at the top of the page.
These can be re-entered by the customer to
more accurately reflect their financial practices.
If values are re-entered, you must re-click the
decision button on this page to update the
calculations.
Version 6.5 All files subject to change.
$0
$0
$1
$1
$1
Net Present Value
The value of projected cash flows in today's dollars
$1
$1
Replace
Immed.
w/NEMA Prem.
Replace at
Failure with
EPAct
$1
$0
$0
$0
1
3
5
7
9
Number of Years After Installation
Replace at
Failure
w/NEMA Prem.
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Financial Calculations for Motor 1 (page 2 of 4)
Sample Motor 1
1·2·3 Approach to Motor Management:
Financial Calculations
These results are for one motor. Cumulative results for the full quantity of similar motors are displayed only on the Summary page.
Calculation Results Page 2 of 3: Representative Motor 1
Note: Life-Cycle Cost provides an estimate of
how much it will cost your organization to
operate this motor over its life. This calculation
does not factor in the time value of money.
Life-Cycle Cost ($)
Act Now
Replace Immediately
with NEMA Premium
(includes installation
costs)
Act Upon Motor Failure
Replace with EPAct
Replace with NEMA
Premium
Year (after
installation)
Note: Simple Payback Period is a constant
value.
Act Now
Replace Immediately
with NEMA Premium
(includes installation
costs)
Act Upon Motor Failure
Replace with EPAct
Replace with NEMA
Premium
Simple Payback Period (Years)
Version 6.5 All files subject to change.
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Financial Calculations for Motor 1 (page 3 of 4)
Sample Motor 1
1·2·3 Approach to Motor Management:
Financial Calculations
These results are for one motor. Cumulative results for the full quantity of similar motors are displayed only on the Summary page.
Calculation Results Page 3 of 3: Representative Motor 1
Act Now
Act Upon Motor Failure
Replace Immediately
Note: NPV will continue to increase as long as
with NEMA Premium
Replace with EPAct
the motor is in service.
(includes installation
costs)
Net Present Value ($)
Replace with NEMA
Premium
Year (after
installation)
Customer understanding and approval of all data input is critical to the 1 ·2·3 Approach. All calculations are
based on incremental investment cost.
Version 6.5 All files subject to change.
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Financial Calculations for Motor 1 (page 4 of 4)
Sample Motor 1
1·2·3 Approach to Motor Management:
Financial Calculations
These
results areImmediately
for one motor. Cumulative
results for the full quantity of similar motors are displayed only on the Summary page.
Act Now:
Replace
with NEMA
Premium
0
Year 0
Cash Flow
Year 1
Year 2
Year 3
Year 4
Year 1
Year 2
Year 3
Year 4
Year 1
Year 2
Year 3
Year 4
Annual Energy Savings
Depreciation *
Operating Profit
Income Tax
Net Operating Profit After Tax
Depreciation (Add back)
Incremental Investment
Cash Flow
Cash Flow To Date
$0
* Attributable to Incremental Investment
Act Upon Motor Failure: Replace with EPAct
Cash Flow
Year 0
Annual Energy Savings
Depreciation *
Operating Profit
Income Tax
Net Operating Profit After Tax
Depreciation (Add back)
Incremental Investment
Cash Flow
Cash Flow To Date
$0
* Attributable to Incremental Investment
Act Upon Motor Failure: Replace with NEMA
Premium
0
Year 0
Cash Flow
Annual Energy Savings
Depreciation *
Operating Profit
Income Tax
Net Operating Profit After Tax
Depreciation (Add back)
Incremental Investment
Cash Flow
Cash Flow To Date
$0
* Attributable to Incremental Investment
Version 6.5 All files subject to change.
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Sample Inventory
The 1·2·3 Approach to Motor Management:
Sample Motor Inventory
Company Name
Representative Motor
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
Best Practice
Rewind at
Failure
Replace
Immediately
with NEMA
Premium
Best Practice
Rewind at
Failure
Best Practice
Rewind at
Failure
Best Practice
Rewind at
Failure
Location
Contact
Date Evaluated
Motor Nameplate Data
Motor ID
Manufacturer
Model
Size (hp)
RPM
Enclosure Type
Full-Load Efficiency (%)
Frame Size and Type
Voltage Rating
Full-Load Amps
Motor Application Information
Year Motor Installed
Motor Location
Application
Total Yearly Operating Hours
Repairs/Rewinds
Quantity of Similar Motors
Decision
Note for decisions other than immediate replacement: The 1·2·3 approach assumes that the
motor will need to be rewound when it fails. If rewind is not the required repair when the motor
actually does fail, this decision must be reassessed.
Customer understanding and approval of all data input is critical to the 1·2·3 Approach.
Version 6.5 All files subject to change.
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
10
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Summary (page 1 of 2)
The 1·2·3 Approach to Motor Management:
Cumulative Summary
Company Information
Company Name
Contact
1·2·3 Service Provider Information
Company Name
Contact Name
Phone
E-Mail
Summary of Results
These results are calculated to
represent the full quantity of similar
motors.
Sample Motor
1
2
3
Grand Total
4
5
Location
Date Evaluated
Quantity of Similar Motors
Gross Connected Horsepower
Cumulative Yearly Operating Hours
Cumul. Current Annual Energy Cost
Decision
Cumulative Capital Investment
Cumulative Annual Energy Savings
Cumulative Net Present Value
Avg. Incremental Payback Period
The Bottom Line
To improve the efficiency of the representative (and similar) motors
in your facility, INVEST:
Your organization's ANNUAL ENERGY SAVINGS could be:
Over the life of the motors, the CUMULATIVE ANNUAL ENERGY
SAVINGS could total:
And the CUMULATIVE NET PRESENT VALUE based on incremental
costs for this project would be:
Notes
1.
The 1·2·3 Approach is a demonstration tool used to identify potential energy and operating cost savings. It does not
guarantee that the identified savings will be realized.
2.
These results are provided with the understanding that the customer must either provide or give his consent to all
the data used in the 1·2·3 Approach.
3.
These results are based on nameplate data which may not reflect the actual operating conditions of the motor.
Customer understanding and approval of all data input is critical to the 1 ·2·3 Approach.
Version 6.5 All files subject to change.
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
11
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Summary (page 2 of 2)
The 1·2·3 Approach to
Motor Management
As the 1·2·3 Approach demonstrates, investing in motor efficiency may produce substantial cost savings for your company.
But that is only the beginning. There are significant benefits – including reduced downtime and maintenance costs – to be
realized by adopting a comprehensive approach to managing your motor population. Motor management plans may be
simple or complex. More complex plans take additional time and resources to develop, but offer greater savings
opportunities. Motor management plans may be developed and implemented over time. The important thing is to create a
plan and a strategy that works for your organization.
Many companies choose to start by developing a written policy for guiding motor repair/replace decisions that incorporates
efficiency and life-cycle costing – based on the simple type of calculation you have just seen demonstrated. By including
motor efficiency in your decisions, you can help reduce future operating costs. Creating a spares inventory for critical
motors is another step which offers a substantial benefit by minimizing downtime when motor failure occurs. And, by
taking the time to plan ahead for motor failure, you ensure that the right motor (type and efficiency) is on hand when you
need it. Other aspects of a more comprehensive plan may include completing a motor inventory (often using actual load
measurements), writing a purchasing policy, adopting repair guidelines, and implementing predictive and preventive
maintenance schedules.
Your 1·2·3 contact can help you define and create a plan that’s right for you. These basic strategies will need to be mixed
and matched, added to, and refined to create a custom-made plan that provides you with an optimum result. Talk with your
1·2·3 contact to select appropriate strategies and to develop an implementation schedule. You have seen the possible
energy cost savings. Achieving them is up to you.
Version 6.5 All files subject to change.
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
12
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Team Contacts (page 1 of 2)
The 1·2·3 Approach to Motor Management:
Motor Management Team Contact List
Please provide contact information for members of the motor management team.
COMPANY PERSONNEL
Management Liaison
Name:
Address:
Telephone:
Title:
Fax:
E-mail:
Maintenance Manager
Name:
Address:
Telephone:
Title:
Fax:
E-mail:
Plant Manager
Name:
Address:
Telephone:
Title:
Fax:
E-mail:
Purchasing
Name:
Address:
Telephone:
Title:
Fax:
E-mail:
OUTSIDE RESOURCES
Utility Contact
Name:
Company:
Address:
Telephone:
Title:
Fax:
E-mail:
Motor Vendor Contact
Name:
Company:
Address:
Telephone:
Title:
Fax:
E-mail:
Motor Sales/Service Provider Contact
Name:
Company:
Address:
Telephone:
Title:
Fax:
Version 6.5 All files subject to change.
E-mail:
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
13
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Team Contacts (page 2 of 2)
The 1·2·3 Approach to Motor Management:
Motor Management Team Contact List
ADDITIONAL CONTACTS
Name:
Company:
Address:
Telephone:
Name:
Company:
Address:
Telephone:
Name:
Company:
Address:
Telephone:
Name:
Company:
Address:
Telephone:
Name:
Company:
Address:
Telephone:
Name:
Company:
Address:
Telephone:
Name:
Company:
Address:
Telephone:
Title:
Fax:
E-mail:
Title:
Fax:
E-mail:
Title:
Fax:
E-mail:
Title:
Fax:
E-mail:
Title:
Fax:
E-mail:
Title:
Fax:
E-mail:
Title:
Fax:
Version 6.5 All files subject to change.
E-mail:
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
14
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Default Efficiency Tables (page 1 of 2)
Pre-EPAct Default Motor Efficiency Table for Use When
No Nameplate Efficiency is Available
Use this default table to estimate the efficiency of pre-EPAct, in-plant, Standard-efficiency motors
that do not display a nameplate efficiency. It does not apply to NEMA Premium motors or to EPAct
motors.
This table was produced for an early version of MotorMaster+ by Washington State University and
funded by DOE.
HP
1
1
1
1.5
1.5
1.5
2
2
2
3
3
3
5
5
5
7.5
7.5
7.5
10
10
10
15
15
15
20
20
20
25
25
25
30
30
30
40
40
40
50
50
50
RPM
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
Enclosure
Type
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
Version 6.5 All files subject to change.
Eff_fl
73.36
76.68
73.00
77.90
79.08
75.15
78.34
80.83
78.88
80.36
81.45
79.62
83.14
83.34
82.38
84.44
85.51
82.59
84.95
85.73
84.99
87.02
86.63
85.66
87.74
88.52
86.62
88.93
89.30
87.53
89.64
89.56
87.74
89.92
90.19
88.54
90.62
91.32
89.00
HP
1
1
1
1.5
1.5
1.5
2
2
2
3
3
3
5
5
5
7.5
7.5
7.5
10
10
10
15
15
15
20
20
20
25
25
25
30
30
30
40
40
40
50
50
50
RPM
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
Enclosure
Type
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
Eff_fl
74.52
77.55
76.19
77.64
79.34
77.25
79.86
80.54
79.56
81.66
82.38
79.08
83.62
83.83
82.57
85.54
85.16
82.87
87.39
86.09
85.02
86.96
87.80
86.63
87.70
88.30
88.13
88.96
88.91
88.45
89.48
88.86
87.73
89.43
90.00
88.57
89.74
90.69
89.06
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
15
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Default Efficiency Tables (page 2 of 2)
Pre-EPAct Default Motor Efficiency Table for Use When
No Nameplate Efficiency is Available
Use this default table to estimate the efficiency of pre-EPAct, in-plant, Standard-efficiency motors
that do not display a nameplate efficiency. It does not apply to NEMA Premium motors or to EPAct
motors.
This table was produced for an early version of MotorMaster+ by Washington State University and
funded by DOE.
HP
60
60
60
75
75
75
100
100
100
125
125
125
150
150
150
200
200
200
250
250
250
300
300
300
350
350
350
400
400
400
450
450
450
500
500
500
RPM
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
Enclosure
Type
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
TEFC
Version 6.5 All files subject to change.
Eff_fl
90.75
91.75
89.39
91.61
91.68
90.60
91.40
92.25
90.88
92.06
92.19
90.88
93.08
93.03
91.52
92.56
93.54
92.70
94.40
94.22
94.68
94.40
94.44
94.71
94.28
94.56
94.65
95.00
94.83
94.75
95.00
94.88
94.50
95.00
94.86
94.50
HP
60
60
60
75
75
75
100
100
100
125
125
125
150
150
150
200
200
200
250
250
250
300
300
300
350
350
350
400
400
400
450
450
450
500
500
500
RPM
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
1200
1800
3600
Enclosure
Type
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
ODP
Eff_fl
90.79
91.29
90.38
91.51
91.94
90.36
92.23
92.08
90.53
91.97
92.17
91.22
92.61
92.81
91.68
92.87
93.03
91.54
94.11
94.44
92.99
94.36
94.62
93.89
94.53
94.06
94.24
95.40
94.73
94.35
95.40
94.96
94.62
95.40
94.97
94.60
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
16
APPENDIX 2
S A M P L E 1 ·2 ·3 S P R E A D S H E E T P A G E S
Formulas
The 1·2·3 Approach to Motor Management
Formulas
See the 1·2·3 Instruction Manual for more information.
Annual Energy Cost ($/kWh)
(assuming 100% load)
Size (hp) x .746 x Total yearly operating hours x Electricity rate ($/kWh)
Full-Load Efficiency (%)
Increases each year by Energy Inflation Factor, if entered
Annual Energy Savings ($)
Base Case Annual Energy Cost - New Annual Energy Cost
Average Simple Payback Period (years) Average of Simple Payback Periods for all motor types based on
Incremental Investment
Capital Investment ($)
Motor or Rewind Cost less Available Incentive plus the Installation Cost
Cumulative Annual Energy Cost ($)
Annual Energy Cost x Quantity of Similar Motors
Cumulative Annual Energy Savings ($)
Annual Energy Savings x Quantity of Similar Motors
Cumulative Capital Investment ($)
Capital Investment x Quantity of Similar Motors
Cumulative Yearly Operating Hours
Yearly Operating Hours x Quantity of Similar Motors
Gross Connected Horsepower (hp)
Size (hp) x Quantity of Similar Motors
Incremental Investment Cost ($)
Calculated difference between the Capital Investment of the decision
being considered and the applicable base case
Depreciation ($)
Incremental Investment Cost x Depreciation % for Particular Year
Income Tax ($)
Operating Profit x Tax Rate
Life Cycle Cost ($)
Life Cycle Cost = (Motor Cost - Available Incentive) + Motor Installation
Cost + (Annual Energy Cost x Motor Life)
Net Present Value ($)
Value of cash flow (based on Incremental Investment) over Motor Life
discounted at 5% discount rate (or discount rate entered by user).The NPV
calculation assumes that motor & installation costs are paid at time of
purchase. If customer borrows money instead of paying cash, the cash
flows will change.
Operating Profit ($)
Annual Energy Savings - Debt Service - Depreciation
Simple Payback Period (years)
Incremental Investment Cost
Annual Energy Savings
Version 6.5 All files subject to change.
© Copyright 2004, 2005, 2006, 2007 Consortium for Energy Efficiency, Inc. All rights reserved.
APPENDIX 3
BUILDING A MOTOR MANAGEMENT PLAN
A plan as easy as 1·2·3 can save your company time and money. But 1·2·3 is only the beginning.
Additional benefits can be realized by implementing a more comprehensive approach. Motor
management plans can be simple or complex. More comprehensive plans take additional time
and resources to develop, but offer greater savings opportunities. The important thing is to create
a plan and a strategy that works for your customer.
Many companies start by developing a written policy for motor repair and replacement decisions,
a straightforward extension of the 1·2·3 analysis you have already completed. Creating a spares
inventory for critical motors is another step that offers substantial benefit. Other aspects of a more
comprehensive plan include writing a purchasing policy, developing repair guidelines, completing
a motor inventory, and implementing a predictive and preventive maintenance schedule.
the building blocks o f motor management
Successful motor management programs are based on a few fundamental principles. These
fundamental principles can be used like building blocks to create a plan that suits the company’s
needs. Many organizations phase in selected parts of a comprehensive plan over time. Others
implement a wider-ranging plan all at once. The order in which steps are undertaken is determined
by the customer’s interests and current practices.
The basic steps include the following:
• Create a motor inventory and implement a motor tracking program.
• Develop guidelines for proactive repair/replace decisions.
• Prepare for motor failure by creating a spares inventory for critical applications.
• Develop a purchasing specification.
• Develop a repair specification.
• Develop a predictive and preventive maintenance program.
What follows is guidance for moving forward with each step. Talk with your motor sales/service
provider to decide which steps are right for you. Work together to develop a plan that will
accomplish your stated goals while conforming to your company’s organizational structure and
financial guidelines.
For additional resources, visit the MDM Web site (www.motorsmatter.org). The Motor Planning
Kit provides specific guidance and resources for accomplishing each of these strategies.
© 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
APPENDIX 3
BUILDING A MOTOR MANAGEMENT PLAN
MOTOR INVENTORY AND TRACKING PROGRAM
It is important to understand a motor’s applications in order to optimize its performance. Therefore,
the most effective approaches to motor management start with a motor survey. The survey can be
based on nameplate data, as in this 1·2·3 Approach, or it can be based on actual measured loads.
By tracking the operating hours, load level, repair history, etc., you can be assured that you have
selected a motor for each application that will optimize performance while minimizing costs.
There are several software programs and/or spreadsheets specifically designed to build a motor
inventory and to help you make cost-effective motor decisions. MotorMaster+ 4.0, created by
Washington State University through a grant from the U.S. Department of Energy, is a comprehensive
program that allows you to create and manage your motor database. It also contains manufacturer’s
information for more than 25,000 motors including nameplate data, list price, repair costs, etc. The
MotorMaster+ 4.0 software is available free of charge from the U.S. DOE’s Industrial Technologies
Program on its Web site at www.eere.energy.gov/industry/bestpractices/software.html, or by calling
the U.S. DOE’s Office of Energy Efficiency and Renewable Energy (EERE) Information Center at
1-877-337-3463.
Other resources are also available. Advanced Energy’s Motor Survey How-To Guide is available
online (www.advancedenergy.org). This document provides step-by-step instructions for planning
your survey; collecting data; understanding life-cycle costing analysis; and creating policies for
purchasing, repair and replacement that are tailored to your operation. In addition, many electric
utilities, motor sales/service providers, motor suppliers, state energy-efficiency programs and
independent energy consultants offer inventory and management assistance.
DECI SION GUIDELINE S FOR S PECI FYING ENERGY-E FFI CIENT MOTORS
Some companies rely on simple rules for making proactive repair/replace decisions. Based on
energy costs, operating hours and motor size, performing a Horsepower Breakpoint analysis will
demonstrate the motor size at which it becomes more economical to repair failed motors than to
replace them. It is important to note that this analysis gives a general guideline and does not take
into account other application considerations. The Northwest Energy Efficiency Alliance’s brochure,
Your Motors and Your Money: Motor Repair and Replacement Decision-Making, is an excellent
resource (call 888-720-6823 for a free copy of this brochure). You might also refer to EASA’s A Guide
to AC Motor Repair and Replacement at www.easa.com.
There are many other factors that go into choosing the correct replacement motor, such as proper
sizing, matching the motor to the driven equipment, alignment, correcting for voltage variations,
etc. Resources are available to clarify and assist in proper motor selection. For example, the CEE
brochure Efficient Motors: Selection and Application Considerations (available as a free download
at www.cee1.org/ind/motrs/motr-broch.pdf ) offers constructive suggestions on optimizing these
parameters. Another excellent resource is Replacing an Oversized and Underloaded Electric Motor,
available at www.eere.energy.gov/industry/bestpractices/technical.asp#Technical_Fact_Sheets_and_
Handbooks.
© 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
APPENDIX 3
BUILDING A MOTOR MANAGEMENT PLAN
Spare M otor Inventory
Maintaining a spares inventory for your critical applications guarantees that your replacement motors
are selected through sound economic decision making — not panic. A spares inventory also ensures
that the motor you choose will be available when you need it, which minimizes downtime and
provides peace of mind.
Motor sales/service providers are stepping up efforts to work with customers in this area. Customized
programs might include stocking, storage, maintenance and/or tracking agreements. Talk with your
local motor sales/service center about establishing a spares inventory, especially for your critical
motors.
Motor Pur cha sing Polic y
An important component of any motor management plan, a motor purchasing policy accomplishes
several key objectives:
• Streamlines the purchasing process
• Demonstrates management support for decisions based on life-cycle costing rather than first
cost alone
• Ensures consistent procurement
• Helps to ensure that the most appropriate, cost-effective motor is chosen for each application
The policy may include simple repair/replace rules based on electricity costs, operating hours, motor
age and repair costs. Having clear, simple rules will help facilitate your purchasing process and
ensure the purchase of the most cost-effective motors. To be effective, however, the policy must
be widely disseminated to those who regularly make motor-related decisions and must be clearly
supported by management.
Several sample policies are available. The National Electrical Manufacturers Association’s General
Specification for Consultants, Industrial and Municipal: NEMA Premium Efficiency Electric Motors
(600 Volts or Less) covers many design criteria as well as material and mechanical considerations
(www.nema.org).
Motor Repair Poli c y
Motor repair quality is an important consideration when analyzing the costs associated with repair/
replacement decisions. While “best practice” repair services can maintain the efficiency of your
motors, some repair practices can result in decreased motor efficiency. Efficiency is important to your
bottom line, so it makes sense to ensure that you are receiving the highest-quality motor services
available. Developing a relationship with your motor service provider is an excellent way to
guarantee receiving the best repair/replacement advice and service. In addition, you might choose
to implement a motor repair policy. EASA’s Guidelines for Maintaining Motor Efficiency During
Rebuilding, EASA/AEMT Rewind Study and Good Practice Guide to Maintain Motor Efficiency and ANSI/
EASA Standard AR100-2001: Recommended Practice for the Repair of Rotating Electrical Apparatus are
excellent resources. These documents, along with others addressing premium efficiency motors and
best practice repairs can be downloaded from EASA’s Web site, www.easa.com. The Department of
Energy provides a number of resources, including Guidelines to a Good Motor Repair, available at
www.eere.energy.gov/industry/bestpractices/pdfs/motor_repair_guide.pdf.
© 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.
APPENDIX 3
BUILDING A MOTOR MANAGEMENT PLAN
In addition to requiring best practice repair services, you might look for a motor service provider that
has a formal assurance program in place, such as ISO 9000 or EASA Q. These programs can provide
a good indication of a service center’s quality.
Predic tive and Preventive Maintenance Program 1
In order to anticipate and prevent motor failures, your company might consider implementing a
maintenance program that incorporates both predictive and preventive measures as part of its motor
management plan. It is important to include both types of measures:
Preventive measures keep motors in good operating condition, reducing the risk of unexpected
failure. Talk with your motor expert about effective strategies for reducing the risk associated with
heat, dirt, moisture, vibration and voltage irregularities.
Predictive measures help determine which motor-related components may eventually lead to failure,
giving facility managers the opportunity to reconfigure repair or replace the components before
failure occurs. Among the tools available for predicting failures are infrared optical sensors that can
be used to identify overheating wiring and bearings, vibration sensors that can identify misalignment
and bearing problems, and electrical analyzers that can identify power supply problems and many
mechanical problems such as bearing failure.
A good record-keeping system is an important aspect of an effective maintenance program. Some
motor inventory systems, such as MotorMaster+ 4.0, can also record the operating characteristics of
the motors. If routine measurements of current operating characteristics reveal a change, the motor
system can be scheduled for maintenance to correct the problem before a failure occurs. A motor
can be reconditioned at a fraction of the cost of a rewind if it can be identified before an electrical
failure occurs.
Next Steps
There are many industry resources to assist your development and implementation of a motor
management strategy. Support is available through your motor sales/service professional, motor
vendor, electric utility, state energy office and/or regional energy-efficiency organization. The Motor
Decisions Matter Web site (www.motorsmatter.org) also contains many useful tools and documents.
The National Electrical Manufacturers Association (www.NEMA.org) and the Electrical Apparatus
Service Association (www.EASA.com) are also valuable resources.
In addition, there are resources available for optimizing other systems in your facility. The
Department of Energy’s Office of Industrial Technologies Web site is an excellent resource for
program information and best practice solutions (www.oit.doe.gov/bestpractices/). Other helpful Web
sites include the Compressed Air Challenge (www.compressedairchallenge.org) and the EPA’s Energy
Star program (www.energystar.gov).
1. Derived from Guide to Energy-Efficient Commercial Equipment, 2nd edition, published by the American Council for an Energy-
Efficiency Economy (ACEEE), available at www.aceee.org.
© 2004, 2005, 2006, 2007 Consortium for Energy Efficiency. All rights reserved.

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