Focus on TCO: How the Right Strategy Can Cut Costs and Boost Efficiency

Cost reductions and efficiency increases in production: That is the goal of all investments. Drive technology plays a decisive role in this. After all, according to studies, the consumption of electric drives amounts to up to 70% of the industry’s total energy consumption. Nevertheless, many users still focus mainly on the purchase price when making investment decisions, although the costs for operation and recycling have a much greater impact. Fact is: If aspects such as energy efficiency, operational reliability, maintenance effort and variant reduction are also taken into account, it pays off in the long term. By using highly efficient technology in combination with a consistent variant reduction and standardisation, the Total Cost of Ownership (TCO) of drive systems can be significantly reduced.

Benefits of a TCO Analysis in Drive Technology

• Optimal Drive Variant Selection: Minimize complexity and costs by determining the ideal number of drive variants
• Hidden Cost Identification: Uncover overlooked expenses
• Savings Potential Evaluation: Identify long-term cost-saving opportunities
• Comprehensive Economic Review: Consider all economic factors in decision-making
• System Design Optimization: Maximize efficiency and reduce costs through system-wide design

What to Look for When Reducing the TCO of Your Drive Systems

Drive technology is key to lowering the Total Cost of Ownership (TCO). The ideal drive system for each customer depends on specific application requirements and operating conditions, which need to be tailored to each project. However, several general factors can help achieve a fast Return on Investment (ROI) and effectively reduce TCO.

Key Drive Technology Features for Reducing TCO:

• Minimal Energy Consumption: Lowering energy costs is a significant factor
• Consistent Efficiency: High efficiency across a wide range of speeds and torques
• High Overload Capacity: Ensures reliability under demanding conditions
• Great Adjustability: Flexibility for various operational needs
• Fewer Gear Stages: Simplifies the system and reduces losses
• Optimal Installation Positions: Minimizes oil volume, especially for low ratios (reducing churning losses)
• Compact Design: Saves space and reduces material costs
• Low Maintenance Effort: Reduces downtime and service costs
• High Operational Reliability: Ensures consistent performance
• Long Service Life: Maximizes return on investment
• Global Usability: Suitable for diverse markets and applications
• Variant-Optimized Design: Reduces the need for multiple system variants
• Modular System: Enables flexibility and future upgrades

By focusing on these properties, operators can design and implement drive systems that offer greater efficiency, reliability, and long-term cost savings.

TCO in the Balancing Act Between Energy Efficiency and Variant Reduction

Reducing Total Cost of Ownership (TCO) hinges on two factors: energy consumption and the number of drive variants. However, optimizing both presents a conflict.

Focusing on energy efficiency typically leads to many drive variants, which increases management and maintenance costs over time. Conversely, reducing variants minimizes administrative and service costs but often raises energy consumption as the drives may not be as optimized for energy efficiency.

A balanced approach—combining variant reduction with energy efficiency—yields the best results, particularly in large intralogistics projects like airports or parcel centers, where numerous drive units are used. This balance can significantly lower TCO.

High-Efficiency Synchronous Motors: The Key to Reducing TCO

A highly effective way to lower Total Cost of Ownership (TCO) is by using high-effeciency synchronous motors. With Permanent Magnet Synchronous Motor (PMSM) technology, these motors maintain high and consistent efficiency across a wide range of speeds and torques, offering superior energy performance, even in partial load and speed conditions. This is a significant advantage over traditional IE1, IE2, or IE3 asynchronous motors.

Synchronous motors are more energy-efficient at partial load and low speed, making them ideal for applications like areas of baggage handling, post and parcel processing. They also reduce the need for multiple variants while maintaining high efficiency, even in cases of over-dimensioning. This leads to significant cost savings over the entire product life cycle, ultimately lowering TCO.

IE5+ Motor: High Power, Compact Design

The optimized power density of the IE5+ motor enables space savings of up to 40% compared to conventional asynchronous motors. This allows for a more powerful motor with higher energy efficiency to fit in the same installation space. For example, an IE5+ synchronous motor delivering up to 4.8 Nm of torque is the same size as an older IE1 motor that provides just 1.24 Nm.

Due to efficient material use and a compact design, IE5+ motors are over 50% lighter than IE3 asynchronous motors of the same power. This also reduces shipping costs and benefits the environment. For instance, a 0.75 kW IE3 motor weighs about 10 kg, while the comparable IE5+ motor weighs only 6 kg. Shipping an IE5+ motor from Hamburg to Stuttgart instead of an IE3 motor reduces CO2 emissions by around 120 g per motor.

With systems often using up to 20,000 drives, this demonstrates that high-efficiency motors not only lower electricity consumption but also contribute to sustainability through reduced weight and volume during transport.

Motor and Gear Unit Integration = A Positive Impact on TCO

By integrating the motor and gear unit into a single housing, the DuoDrive is exceptionally lightweight, compact, and features high power density. This design eliminates wear-prone parts, such as radial shaft seals, reducing both maintenance needs and friction losses. Fewer gear meshing points and bearing contacts further enhance efficiency, while the minimized oil volume lowers churning losses.

The DuoDrive’s versatile design allows it to be mounted in various positions with the same oil volume, further reducing the need for multiple variants. Its compact size also offers a significant advantage: it has a slimmer profile than competitor products, enabling narrower aisle widths in conveyor systems. Additionally, the motor power can be scaled within the same housing size, meaning no modifications to the plant layout are needed when increasing power.

Low Total Cost of Ownership Through Targeted Variant Reduction

Reducing drive variants, which are combinations of gear unit, motor, and frequency inverter in different sizes and ratios, optimizes Total Cost of Ownership (TCO). By using a single motor and inverter size for a specific speed and load range, all operating points can be covered, minimizing the need for multiple variants.

Significant cost savings

While variant reduction may slightly increase project costs due to larger drives, it leads to long-term savings in administration, service, and spare parts. System integrators also save on engineering costs through streamlined variant management.

Benefits of Reducing Variants Across Different Cost Areas:

• Energy Costs: Analyzing load conditions (e.g., partial load) leads to permanent energy savings and a smaller carbon footprint
• Engineering Costs: Fewer variants simplify drive selection and system design
• Administrative Costs: Fewer part numbers reduce procurement efforts and minimize errors
• Documentation Costs: Standardization and fewer variants streamline documentation
• Training Costs: Simplified maintenance and commissioning reduce training efforts
• Spare Parts Costs: Fewer spare parts lower inventory costs and ordering errors
• Commissioning, Service, and Maintenance: Standardization and modularity simplify maintenance and installation, with excellent support from the NORD DRIVESYSTEMS flobal service network

Find Out More About TCO

Interested in learning how drive technology can reduce your Total Cost of Ownership? Download our white paper, “Total Cost of Ownership: Drive Technology is the Key to Reducing TCO”, to explore savings potential, optimization strategies, and how XYZ drives TCO reduction.

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