Operational Efficiency Gains with HPS Smart Transformers
The rise of IIoT (Industrial Internet of Things) technology has significantly transformed electrical infrastructure, and HPS Smart Transformers are at the forefront of this evolution. These transformers are designed to optimize energy use, reduce operational costs, and minimize downtime. Here’s how HPS Smart Transformers can contribute to operational efficiency gains:
1. Reduced Downtime
With the ability to predict equipment failures, HPS Smart Transformers provide a critical advantage in operational continuity. By leveraging early-warning alerts, facility managers can identify issues before they become costly disruptions. This predictive maintenance reduces unexpected downtime.
2. Optimized Energy Consumption
Real-time monitoring of energy patterns with HPS Smart Transformers allows for optimizing transformer loading and energy usage. This can help reduce waste and lower utility costs. As the demand for sustainable energy solutions grows, these transformers play a crucial role in enabling optimized energy efficiency in industrial and commercial settings.
3. Labor Efficiency
The deployment of smart transformers reduces the need for manual inspections and monitoring. With remote monitoring capabilities, maintenance teams can focus on more strategic tasks. This saves time and allows organizations to reallocate resources more effectively.
Total Cost of Ownership (TCO) Model of an HPS Smart Transformer: 5-Year Analysis
The following table gives an estimation of the total cost of ownership of an HPS Smart transformer over the period of 5 years. For further insight into how the savings were calculated, please see the section on calculations.
| Year | IIoT Investment | Reduction in Downtime Costs | Net Savings |
| Year 1 | $2,500 | $30,240 | $27,740 |
| Year 2 | $0 | $30,240 | $30,240 |
| Year 3 | $0 | $30,240 | $30,240 |
| Year 4 | $0 | $30,240 | $30,240 |
| Year 5 | $0 | $30,240 | $30,240 |
| Total | $2,500 | $151,200 | $148,700 |
Reduction in Downtime Costs Calculations
| Item | Value | |
| Initial Investment Costs | Cost of IIoT Device and Integration | $2,500 |
| Downtime Overview | Average Cost of Downtime in Industry | $5,600 per minute |
| Average Annual Number of Downtime Incidents | 20 events per year | |
| Percentage of Downtime Due to Power Failures | 30% | |
| Percentage of Power Failures Attributed to Transformers | 20% | |
| Average Duration of Downtime Incident | 90 minutes | |
| Total Annual Cost of Downtime Due to Transformer Failures | $604,800 per year | |
| Downtime Savings | Projected Downtime Reduction with IIoT Implementation | 5% |
| Savings | $30,240 per year | |
| Total Annual Savings | $30,240 per year | |
| Payback period based on initial $2,500 investment | 0.083 years | |
Industry Sources
There is a wide range of research that gives insight into the factors contributing to downtime in industrial settings and some potential strategies for maximizing uptime. Here are a few key points that were used in the calculations above.
- A 2014 Gartner study shows that that average cost of downtime in industrial facilities is approximately $5,600 per minute.
- U.S. manufacturers experience an average of 20 - 30 unplanned downtimes events per year.
- The U.S. Department of Energy (DOE) states that 25 - 35% of downtimes incidents in the manufacturing sector are attributed to power failures. Of these, 25 - 30% are due to transformer failures.
- In a 2017 report, McKinsey highlights that real-time monitoring systems can reduce equipment downtime by 30 - 50% across various industrial sectors, including power distribution. This reduction is achieved through faster response times and pro-active maintenance.
- The report "Transforming the Grid: Optimizing Load Management for Reliability" indicates that load optimization and balancing can reduce transformer failure rates by 15-20%, which directly contributes to a reduction in overall downtime by 5-10%.
- An IEEE study on "Smart Grid Technologies and Their Impact on Power Distribution" found that implementing smart grid technologies, such as IIoT-based load management, can decrease the frequency of outages by 15% and reduce downtime by an additional 10% by maintaining equipment health.