SPECIAL SECTION | Flow & Filtration
Flow Metering for Accurate Cost Allocation in Industrial Applications
Accurate, repeatable and reliable flow measurement instrumentation is critical.
Marc Bennett | McCrometer
| IMAGE 1: Industrial pipeline, monitored for flow data (Images courtesy of McCrometer)
While some industrial organizations and companies may incorporate utility costs within their semivariable overhead expenses, a growing number employ a cost allocation system to distribute water, air, gas, electric, steam heating (WAGES) and other utility costs among departments and buildings.
Based on each company’s operational structure and financial practices, a cost allocation system provides a transparent account of resource consumption, efficiency and profitability. This method allows for informed decision-making about daily operations and identifies where utility expenses can be better managed.
For industrial organizations utilizing a cost allocation system, highly accurate, repeatable and reliable flow measurement instrumentation is critical when acquiring flow data to monitor utility costs. Additionally, installing duplicate flow meters creates redundancy and provides a level of transparency necessary to identify and eliminate waste, as well as diagnose pipeline issues.
Metering for Resource Optimization & Cost Behavior Analysis
In industrial organizations such as pulp and paper factories, manufacturing yards and food and beverage processing plants, understanding how costs change with production levels is imperative to increasing efficiency and minimizing waste.
Implementing reliable flow meters across pipelines can provide the real-time data necessary to manage utility water and steam usage. Whether for cooling towers, chiller water, boiler water, makeup water, steam heating or other applications, highly accurate and repeatable flow data integrated into a comprehensive management system will allow for more precise control over resource consumption.
This utility use (and, sometimes, on-site reuse) equates to expenses and savings associated with various departments or buildings within the production line. Flow data from a trusted instrument is a singular data point within the organization’s larger internet of things (IoT) network, providing technicians and engineers with the information needed to manage utilities as well as cost allocation.
For institutions such as hospitals, universities, hotels and resorts, utility costs are distributed among different buildings or departments, leading operations managers to seek a detailed understanding of cost center budget achievement and expenditures. Accurate, long-term flow data can assist in forecasting, planning and individual department responsibility of resource use and accountability.
Performance Measurement & Profitability
For organizations like those found in manufacturing, retail and even healthcare, understanding profitability is critical to the bottom line. By monitoring water, air, gas and steam use, sometimes referred to as WAGS, users can curtail excessive waste and minimize expenses.
These savings may then be reinvested in other areas of the budget. Accurate flow measurement allows operations managers a clear picture of resource consumption and identifies areas where expenses can be reduced or eliminated.
This level of cost allocation also improves financial transparency for an organization’s profit and loss statements, which may be needed for stakeholder reporting purposes, or even compliance reasons.
Metering for Resource Optimization & Cost Behavior AnalysisFlow Measurement for Compliance & Reporting
Cost allocation and its source data is imperative for verticals such as nonprofits, government entities and pharmaceuticals, among others. Some organizations may be heavily monitored by agencies such as the Food and Drug Administration (FDA), the Environmental Protection Agency (EPA) and the like.
Scrupulous recordkeeping is needed for compliance, funding and budgeting, as well as for corporate water savings, leadership in energy and environmental design (LEED) certification through the U.S. Green Building Council and to achieve a net-zero water footprint.
When considering flow measurement instrumentation, there is a considerable difference between a ±2% accurate flow meter and a ±0.2% flow meter, which may equate to thousands of dollars saved on utilities. When stringent regulations exist, selecting a compatible precision-accuracy meter is an excellent method to achieve compliance.
| IMAGE 2: An infographic showing the common measurement points in an industrial heating, ventilation and air conditioning (HVAC) pipeline
Selecting a Flow Meter for Cost Allocation Applications
Once industry standards and regulatory requirements are accounted for, manufacturers can shift their focus to the characteristics and needs of high-viscosity foods and beverages. These substances are defined by their resistance to flow, requiring greater force and more precise control to move than low-viscosity liquids like water or juice.
Common high-viscosity food and beverage products include honey, chocolate, peanut butter, tomato paste, syrups, molasses, yogurt and cream, as well as bakery batters, fillings and concentrated beverage bases. These sticky sweeteners, dense pastes and dairy products require equipment specifically designed to preserve product quality throughout production.
Not only are these foods often sensitive to shear, temperature variation and contamination, they also present a number of operational challenges. Air entrainment and cavitation can interrupt flow and strain equipment, while changes in temperature can significantly impact how easily a product moves through the system. Some materials may also thicken further, clog or crystallize if not handled under the right conditions.
Overcoming these issues often involves turning to pump technologies engineered for steady, controlled flow and minimal internal disruption while also accounting for factors like flow consistency, product stability and sanitary conditions to ensure reliable processing. To meet these demands, pumps must provide the control needed to move high-viscosity fluids efficiently while maintaining product integrity and adhering to strict food safety requirements. Two pump designs that are suited to this task are air-operated double-diaphragm (AODD) pumps and drum pumps.
FEA & Physical Testing: Complementary Tools
When narrowing down options for a flow measurement investment meant for industrial utility applications, there are numerous variables to consider:
- Measurement technology: It can be beneficial to standardize the technology and model of meter, for distinct reasons. Users become familiar with the installation, operation and maintenance of the meters, and a baseline of flow data is achievable within the pipelines. However, for utilities, it is often more complex. Certain flow meters are more compatible for water than they are for gases and steam, and those that are compatible with both may not be a fiscally smart choice to install in a large quantity across a facility. Rather, it is recommended to standardize technology, when possible, but make application and project goals the priority when selecting a meter technology.
- Meter integration: When selecting a flow meter, consider how each device and its data will assimilate with the organization’s overarching management system. This will determine the transmitter’s required communication outputs, data recording and in-field verification. A network of interconnected flow meters providing accurate data is a valuable tool for cost allocation processes, as automated, on-demand data is efficient and eliminates the need for manual meter reading.
- Installation needs: Additional costs can accrue when specifying in a new flow meter, such as construction costs, additional piping needs and more. Selecting a flow meter with custom lay lengths, minimal-to-no straight-run requirements and even hot-tap capabilities (no cutting or welding of pipe necessary) can minimize installation costs, especially in retrofit situations.
- Flow media needs: The application’s flow media and composition may require a specific material composition (i.e., stainless steel) to resist corrosion and abrasion, especially if the flow media is prone to particulates or chemical dosing or can cause scaling or mineral buildup. Additionally, the flow media may be a higher velocity, pressure or temperature, which will help determine flow meter selection as well.
- Maintenance needs: For tough applications and installation locations, consider a meter’s maintenance needs. Devices requiring frequent routine maintenance can get costly and problematic, whereas a more expensive initial purchase may be a better long-term investment for the sheer convenience.
For more articles about flow meters:
Marc Bennett is the regional sales manager for McCrometer, specializing in industrial water and wastewater plant solutions. For more information, visit mccrometer.com.
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