{"id":6902,"date":"2013-06-01T00:00:00","date_gmt":"2013-06-01T00:00:00","guid":{"rendered":"https:\/\/insulation.org\/io\/articles\/mechanical-insulation-simple-calculators-a-guide-to-the-financial-returns-and-personnel-protection-calculators\/"},"modified":"2017-06-09T20:25:37","modified_gmt":"2017-06-09T20:25:37","slug":"mechanical-insulation-simple-calculators-a-guide-to-the-financial-returns-and-personnel-protection-calculators","status":"publish","type":"articles","link":"https:\/\/insulation.org\/io\/articles\/mechanical-insulation-simple-calculators-a-guide-to-the-financial-returns-and-personnel-protection-calculators\/","title":{"rendered":"Mechanical Insulation Simple Calculators: A Guide to the Financial Returns and Personnel Protection Calculators"},"content":{"rendered":"<p class=MsoNormal style='120%;\nnone;vertical-middle'><span style='-.2pt'>As a part of<br \/>\nefforts by the Department of Energy&#8217;s Advanced Manufacturing Office to improve<br \/>\nthe energy efficiency of the U.S. industrial and commercial sectors, the<br \/>\nNational Insulation Association (NIA), in conjunction with its Alliance<br \/>\npartners, worked to design, implement, and execute the Mechanical Insulation<br \/>\nEducation &amp; Awareness Campaign (MIC).<\/span><\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'>The MIC is a program to<br \/>\nincrease awareness of the energy efficiency, emission reduction, economic<br \/>\nstimulus potential, and other benefits of mechanical insulation. An integral<br \/>\ncomponent of the MIC was the development of a series of &#8220;Simple Calculators.&#8221;<br \/>\nThe calculators, listed below, provide users with instantaneous information on<br \/>\na variety of mechanical insulation applications in the industrial\/manufacturing<br \/>\nand commercial markets. <\/p>\n<p><UL><\/p>\n<p class=MsoListParagraphCxSpFirst style='left:26.1pt;-.25in;\n120%;none;vertical-middle'><LI>Condensation Control for Horizontal Piping<\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;-.25in;\n120%;none;vertical-middle'><LI>Energy Loss, Emission Reduction, Surface Temperature, and Annual Return<br \/>\nfor Equipment and Piping<\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;-.25in;\n120%;none;vertical-middle'><LI>Insulation Financial Returns <\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;-.25in;\n120%;none;vertical-middle'><LI>Estimate Time to Freezing for Water in an Insulated Pipe <\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;-.25in;\n120%;none;vertical-middle'><LI>Personnel Protection for Horizontal Piping<\/p>\n<p class=MsoListParagraphCxSpLast style='left:26.1pt;-.25in;\n120%;none;vertical-middle'><LI>Temperature Drop for Air in an Insulated Duct or Fluid in an Insulated<br \/>\nPipe<\/p>\n<p><\/UL><\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'><span style='\n.1pt'>The calculators are online as part of the National Institute of Building<br \/>\nSciences&#8217; Mechanical Insulation Design <\/span>Guide (MIDG), <i><a href=\"www.wbdg.org\/design\/midg_calculators.php\">www.wbdg.org\/design\/midg_calculators.php<\/a>.<\/i><span\nstyle='.1pt'> You can also access them through a link on NIA&#8217;s<br \/>\nwebsite: <i><a href=\"www.insulation.org\">www.insulation.org<\/a><\/i>. The calculators are fast, free, and<br \/>\nfunctional tools that make it easy to discover energy savings, financial<br \/>\nreturns, and other information for the design of mechanical insulation systems<br \/>\nfor above- or below-ambient applications.<\/span><\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'>This article provides an<br \/>\noverview and a guide on how to use the Financial Returns Calculator and the<br \/>\nPersonnel Protection for Horizontal Piping Calculator.<\/p>\n<p class=MsoNormal style='top:13.5pt;13.0pt;\nnone;vertical-middle'><b><font color=\"#0000FF\">Insulation Financial Returns Calculator<\/font><\/b><\/p>\n<p class=MsoNormal style='120%;\nnone;vertical-middle'>Insulation systems are frequently designed with the<br \/>\nobjective of minimizing costs. Properly designed insulation systems can reduce<br \/>\nheat loss or gain from (or to) mechanical systems by 90 to 98%. Since energy<br \/>\nmust be purchased to offset these heat flows, insulation systems can quickly<br \/>\npay for themselves in reduced energy costs.<\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'>Insulation projects, like many<br \/>\nenergy-conservation projects, generally involve making an initial investment<br \/>\nthat will result in future cost savings. A number of approaches can be used to<br \/>\nmeasure the financial desirability of an insulation project. All require<br \/>\nestimates of the initial investment (in this case, the installed cost of the<br \/>\ninsulation system) and the resulting future savings. Some of these financial<br \/>\nmeasures are simple, like return on investment (ROI) and simple payback period.<br \/>\nOthers are more complicated and take into account the time value of money,<br \/>\ninflation, and taxes.<\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'>This calculator was developed<br \/>\nto provide a convenient way to estimate the financial returns related to<br \/>\ninvestments in mechanical insulation: simple payback in years, internal rate of<br \/>\nreturn (IRR or ROI), net present value (NPV), and annual and cumulative cash<br \/>\nflow. It can be used for an overall mechanical insulation project or for a<br \/>\nsmall investment such as insulating a valve or replacing a section of<br \/>\ninsulation. Tax implications of the investment have not been considered in the<br \/>\nFinancial Calculator. You should consult your financial advisor for specific or<br \/>\ntailored financial calculations. (For further information on the definition of<br \/>\nterms used in the calculator, please refer to the MIDG website.)<\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'><span style='\n.1pt'>The calculator requires input information for five variables. The<br \/>\n&#8220;Results&#8221; and &#8220;Calculations&#8221; sections are updated as each input variable is<br \/>\nentered. Here are instructions and additional information for each input<br \/>\nvariable. Sample inputs appear in a box, after each instruction.<\/span><\/p>\n<p><UL><\/p>\n<p class=MsoListParagraphCxSpFirst style='left:26.1pt;\n-.25in;120%;none;vertical-middle'><LI><b><font color=\"#FF8040\">Line 1. Enter the cost of installing or replacing insulation, $10000<\/font><\/b><\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n120%;none;vertical-middle'><span\nstyle='-.2pt'>The default value is $10,000. However, you may<br \/>\nenter any positive dollar amount. You may use the overall cost of a mechanical<br \/>\ninsulation project, or a small mechanical insulation investment.<\/span><\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n-.25in;120%;none;vertical-middle'><LI><b><span style='-.2pt'><font color=\"#FF8040\">Line 2. Enter the estimated energy<br \/>\ncost savings during the first year, $\/yr<\/span><\/b><b> 5000<\/font><\/b><\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n120%;none;vertical-middle'>The default value<br \/>\nis $5,000\/yr; however, you should enter the estimated savings for the scope of<br \/>\nwork you identified in Line 1. You can use the Energy Calculators for<br \/>\nHorizontal Piping and Equipment within the MIDG Simple Calculator section to<br \/>\nestimate the annual savings. See the March 2013 issue of <i>Insulation Outlook<\/i><br \/>\nfor instructionson on using the Energy Calculator for Horizontal Piping.<\/p>\n<p class=MsoListParagraphCxSpLast style='left:26.1pt;\n-.25in;120%;none;vertical-middle'><span\nstyle='.05pt'><LI><b><span style='.05pt'><font color=\"#FF8040\">Line 3. Enter the projected<br \/>\nannual energy cost escalation rate, %\/yr  3.0<\/font><\/span><\/b><\/p>\n<p class=MsoNormal style='left:26.1pt;\n120%;none;vertical-middle'><span style='\n.05pt'>Energy cost savings after the first year are assumed to increase at the<br \/>\nenergy cost escalation rate. The default value is 3%; however, you should enter<br \/>\nyour best estimate of the percentage<\/span><b><span style='.05pt'><br \/>\n<\/span><\/b>that you expect the cost of your energy source to increase by<br \/>\nannually over the life of the scope of work identified in Line 1.<\/p>\n<p class=MsoListParagraphCxSpFirst style='left:26.1pt;\n-.25in;120%;none;vertical-middle'><LI><b><font color=\"#FF8040\">Line 4. Enter the estimated economic life of the insulation system,<br \/>\nyrs<\/b>    <b>20<\/b><\/font><\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n120%;none;vertical-middle'>The default value<br \/>\nis 20 years; however, you should enter your best estimate as to the expected<br \/>\nuseful life for the scope of work identified in Line 1.<\/p>\n<p class=MsoListParagraphCxSpLast style='left:26.1pt;\n-.25in;120%;none;vertical-middle'><LI><b><span style='-.2pt'><font color=\"#FF8040\">Line 5. Enter the discount rate<br \/>\nfor NPV calculation, %<\/span><\/b><b> 5.0<\/b><\/font><\/p>\n<p><\/UL><\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'><span style='\n.1pt'>The default value is 5%. NPV is the difference between the present value<br \/>\nof cash inflows and the present value of cash outflows. The input box requires<br \/>\nselection of an appropriate discount rate, sometimes referred to as the &#8220;hurdle<br \/>\nrate&#8221; or the &#8220;required rate of return.&#8221; It should be established as equal to<br \/>\nthe highest rate of return available on alternative investments of comparable<br \/>\nrisk, or a company-established minimum threshold. <\/span><\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'><span style='\n.1pt'>Based on the input information entered, the &#8220;Results&#8221; section provides<br \/>\nthe calculated simple payback period, IRR or ROI, and NPV. An example using the<br \/>\ndefault values for all input variables is shown below. Note that the simple<br \/>\npayback is calculated as the initial cost divided by the first-year savings.<br \/>\nThe calculator assumes that initial investment occurs at the beginning of Year<br \/>\n1, and annual savings occur at year-end. Savings after 20 years are ignored.<\/span><\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'><span style='\n-.1pt'>The &#8220;Calculations&#8221; section, using the default values for all input<br \/>\nvariables, is shown below. This section illustrates the initial Investment, the<br \/>\nAnnual Savings, Annual Cash Flow, and Cumulative Cash Flow over the economic<br \/>\nlife of the application. Using the default value examples, a $10,000 initial<br \/>\ninvestment yielding $5,000 of first-year savings will yield $124,352 net of the<br \/>\ninitial investment&mdash;before discounting&mdash;at the end of 20 years. The NPV of this<br \/>\ninvestment is $69,824.<\/span><\/p>\n<p class=MsoNormal style='top:13.5pt;13.0pt;\nnone;vertical-middle'><b><font color=\"#0000FF\">Personnel Protection Calculator for Horizontal<br \/>\nPiping<\/font><\/b><\/p>\n<p class=MsoNormal style='120%;\nnone;vertical-middle'>As described on the MIDG&mdash;Simple Calculators web<br \/>\npage, this calculator estimates the maximum contact exposure time on the outer<br \/>\nsurface of a horizontal pipe insulation system based on the potential for<br \/>\ncontact burn injuries. Input requirements include the pipe size, operating<br \/>\ntemperature, ambient temperature, wind speed, and details about the insulation<br \/>\nsystem (material and jacketing).<\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'>The maximum contact exposure<br \/>\ntimes are estimated using the procedures outlined in ASTM C 1055-03 (Reapproved<br \/>\n2009) Standard Guide for Heated System Surface Conditions that Produce Contact<br \/>\nBurn Injuries. This guide establishes a means by which the engineer, designer,<br \/>\nor operator can determine the acceptable surface temperature of a system where<br \/>\ncontact may be made with a heated surface. <\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'><span style='\n.3pt'>For the purposes of this calculator, the maximum contact exposure times<br \/>\nare based on an acceptable injury level of first degree burns (reversible<br \/>\nepidermal injury, or the limit represented by the lower &#8220;Threshold B&#8221; curve<br \/>\nshown in<i> <\/i>Figure 1 of the Standard). Acceptable contact times will depend<br \/>\non the application. The Standard recommends, based on a survey of the medical<br \/>\nliterature, 5 seconds for industrial processes and 60 seconds for consumer<br \/>\nitems.<\/span><\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'>The insulation materials<br \/>\nincluded in this calculator were selected to be representative of some of the<br \/>\nmaterials commonly used in the industry. The list is not inclusive of all<br \/>\nmaterials types and other materials are available. The calculator does not<br \/>\nscreen for material temperature limitations, so use caution when selecting the<br \/>\nmaterials.<\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'>For further information on the<br \/>\nthermal conductivity data used in the calculator, please refer to the MIDG<br \/>\nPersonnel Protection Calculator for Horizontal Piping. Also note that some<br \/>\nmaterials are not available in all of the sizes and thicknesses covered, and<br \/>\nsome are available in sizes and thicknesses not listed. <\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'>The calculator requires input<br \/>\ninformation for 6 variables. The &#8220;Results&#8221; section is updated as each input<br \/>\nvariable is entered. Following are the instructions and additional information<br \/>\nfor each input variable.<\/p>\n<p><UL><\/p>\n<p class=MsoListParagraphCxSpFirst style='left:26.1pt;\n-.25in;120%;none;vertical-middle'><LI><b><font color=\"#FF8040\">Line 1. Select Nominal Pipe Size<\/b>     <b>NPS 4<\/b><\/font><\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n120%;none;vertical-middle'><span\nstyle='-.2pt'>The default value is an NPS of 4&#8243;; however, you<br \/>\ncan select any pipe size from \u00bd&#8221; to 24&#8243; from the drop down box.<\/span><\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n-.25in;120%;none;vertical-middle'><LI><b><font color=\"#FF8040\">Line 2. Enter operating (process) temperature, \u00b0F<\/b> <b>800<\/b><\/font><\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n120%;none;vertical-middle'>The default value<br \/>\nis 800\u00b0F. You should enter the actual operating or process temperature.<\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n-.25in;120%;none;vertical-middle'><LI><b><font color=\"#FF8040\">Line 3. Enter average temperature of the air surrounding the pipe, \u00b0F<\/b><br \/>\n<b>  75<\/b><\/font><\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n120%;none;vertical-middle'>The default value<br \/>\nis 75\u00b0F; however, you should enter the average surrounding or ambient operating<br \/>\ntemperature, in Fahrenheit, for the area in question. <\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n-.25in;120%;none;vertical-middle'><LI><b><font color=\"#FF8040\">Line 4. Enter the wind speed of the ambient air (if unknown, use 0<br \/>\nmph for worst-case conditions)<\/b>    <b>10<\/b><\/font><\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n120%;none;vertical-middle'>The default value<br \/>\nis 10 mph. However, when in doubt, use 0 mph, which represents the worst-case<br \/>\nconditions.<\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;-.25in;\n120%;none;vertical-middle'><LI><b><font color=\"#FF8040\">Line 5. Select an insulation material<\/b> <b>Mineral Wool (to 1200\u00b0F)<\/font><br \/>\n<\/b><\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n120%;none;vertical-middle'>The default box<br \/>\nindicates Mineral Wool; however, you may select one of eight insulation<br \/>\nmaterials from the drop-down box: Calcium Silicate, Cellular Glass,<br \/>\nElastomeric, Fiberglass, Mineral Wool, Polyethylene, Polyisocyanurate, or<br \/>\nPolystyrene. <\/p>\n<p class=MsoListParagraphCxSpMiddle style='left:26.1pt;\n-.25in;120%;none;vertical-middle'><LI><b><font color=\"#FF8040\">Line 6. Select the effective emittance of the exterior surface<\/b><br \/>\n<b>0.80 &#8211; Painted Metal<\/font><\/b><\/p>\n<p class=MsoListParagraphCxSpLast style='left:26.1pt;\n120%;none;vertical-middle'>The default box<br \/>\nindicates painted metal; however, you may use the drop-down menu to select one<br \/>\nof twelve exterior surfaces. For a detailed discussion and definition of<br \/>\nemittance, please refer to the MIDG website. <\/p>\n<p><\/UL><\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'>The &#8220;Results&#8221; section, using<br \/>\nthe default values for all input variables, is shown below. The section<br \/>\nillustrates, for a range of thicknesses of the insulation material selected,<br \/>\nthe calculated surface temperature and resulting maximum contact time in<br \/>\nseconds.<\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'><span style='\n.2pt'>Note that the Personnel Protection Calculator incorporates a number of<br \/>\nimportant simplifying assumptions. Refer to the MIDG web page for further<br \/>\ndiscussion of these assumptions.<\/span><\/p>\n<p class=MsoNormal style='top:13.5pt;13.0pt;\nnone;vertical-middle'><b>Summary<\/b><\/p>\n<p class=MsoNormal style='120%;\nnone;vertical-middle'>While they do not address every insulation material<br \/>\nor application condition (thus the term, Simple Calculators), the Simple<br \/>\nCalculators are intended to provide the user with online, easily accessible,<br \/>\nsnapshot information on some of the most frequently asked-about benefits and<br \/>\ndesign considerations of mechanical insulation systems. <\/p>\n<p class=MsoNormal style='13.5pt;\n120%;none;vertical-middle'>Whether you need basic<br \/>\ninsulation information or are designing a complex insulation system, MIDG (<i><a href=\"www.wbdg.org\/design\/midg_introduction.php\">www.wbdg.org\/design\/midg_introduction.php<\/a><\/i>)<br \/>\nis a tremendous resource for the novice or the experienced user. Along with the<br \/>\ncalculators, it contains everything you need to know about the design,<br \/>\nselection, specification, installation, and maintenance of mechanical<br \/>\ninsulation. MIDG is continually updated with the most current and complete<br \/>\ninformation, including the Simple Calculators. These tools can be very helpful<br \/>\nin designing a mechanical insulation system and they allow the user to easily<br \/>\ndetermine the many benefits and value of mechanical insulation.<\/p>\n<div id=\"images\">\n<div class=\"figure\"><a href=\"https:\/\/insulation.org\/wp-content\/uploads\/2017\/06\/IO130603_01.jpg\"><img decoding=\"async\" src=\"https:\/\/insulation.org\/wp-content\/uploads\/2017\/06\/IO130603_01.jpg\"\/><\/a><b>Figure 1<\/b><\/div>\n<div class=\"figure\"><a href=\"https:\/\/insulation.org\/wp-content\/uploads\/2017\/06\/IO130603_02.jpg\"><img decoding=\"async\" src=\"https:\/\/insulation.org\/wp-content\/uploads\/2017\/06\/IO130603_02.jpg\"\/><\/a><b>Figure 2<\/b><\/div>\n<div class=\"figure\"><a href=\"https:\/\/insulation.org\/wp-content\/uploads\/2017\/06\/IO130603_03.jpg\"><img decoding=\"async\" src=\"https:\/\/insulation.org\/wp-content\/uploads\/2017\/06\/IO130603_03.jpg\"\/><\/a><b>Figure 3<\/b><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a part of efforts by the Department of Energy&#8217;s Advanced Manufacturing Office to improve the energy efficiency of the U.S. industrial and commercial sectors, the National Insulation Association (NIA), in conjunction with its Alliance partners, worked to design, implement, and execute the Mechanical Insulation Education &amp; Awareness Campaign (MIC). The MIC is a program<\/p>\n","protected":false},"author":[308],"featured_media":0,"template":"","categories":[38,298,34,43,294,289,24,301,21,291,297],"class_list":["post-6902","articles","type-articles","status-publish","hentry","category-material-selection","category-installation","category-industrial","category-technology","category-training","category-personnel-protection","category-contracting","category-design","category-business-managment","category-association-news","category-basic-understanding","author-ronald-l-king"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.0 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Mechanical Insulation Simple Calculators: A Guide to the Financial Returns and Personnel Protection Calculators - Insulation Outlook Magazine<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insulation.org\/io\/articles\/mechanical-insulation-simple-calculators-a-guide-to-the-financial-returns-and-personnel-protection-calculators\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mechanical Insulation Simple Calculators: A Guide to the Financial Returns and Personnel Protection Calculators\" \/>\n<meta property=\"og:description\" content=\"As a part of efforts by the Department of Energy&#8217;s Advanced Manufacturing Office to improve the energy efficiency of the U.S. industrial and commercial sectors, the National Insulation Association (NIA), in conjunction with its Alliance partners, worked to design, implement, and execute the Mechanical Insulation Education &amp; Awareness Campaign (MIC). 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