Download - 121312 PS Lubrication webinar v3[1]
Lubrication Webinar - December 13, 2012
Welcome!
View the 2012 Plant Services Plant Maintenance and
Reliability Strategies Webinars on-demand at:
http://www.plantservices.com/webcast
Welcome to the PlantServices Webinar:
Lubrication
Available to watch now:
•Electrical Safety: Arc Flash Hazards
•Motors & Drives: A Business Case for Energy Efficiency across the Drive Train
•Mechanical Vibration: Where Do I Start, and What Is the Benefit?
•Predictive Technology
•Compressed Air Systems
•More!
Lubrication Webinar - December 13, 2012
Moderator
Mike Bacidore
Editor in Chief
Plant Services
CAN YOU HEAR ME?
Sponsored by:
The webinar has started. If you
cannot hear me speaking:
1. Please check to make sure your
computer mute button is turned
to OFF
2. Please log off and log back in
3. If you still cannot hear me, please
click the “Tech Support” button
at the bottom of your screen
Lubrication Webinar - December 13, 2012
Mike Bacidore
Editor in Chief
Plant Services
Joining us today:
Suzy Jamieson
Executive Director
International Council for Machinery
Lubrication
Patrick Fasse
Director of Sales
Fluid Defense Systems
Brian Gleason
President
Des-Case Corporation
Lubrication Webinar - December 13, 2012
Suzy Jamieson
Executive Director
International Council for
Machinery Lubrication
Lubrication Webinar - December 13, 2012
Lee Taylor – National Reliability Manager – VISY Pulp & Paper
Who Is ICML?
A Non-profit, Vendor-neutral, International
Organization
An Independent, Third-party Certification Body, with
over 8,000 certifications, in 75 countries, offering
exams in 8 different languages
A Standards Development Support organization
actively participating in ISO TC108/SC5 for the
development of lubrication-related international
standards (ISO 18436-4 based on ICML’s program)
An Awards Body which recognizes excellence in used
oil analysis and machinery lubrication
A community of practitioners that advocates the needs
of Industrial Lubrication Professionals
Awards Criteria
Lubrication Management
Commitment to Education and skills
competencies
Maintenance Culture and Management Support
Preventive, Predictive and Proactive Program
Design and Effectiveness
Technology Integration
Use of Information Technology
Use of Standardized Procedures
Contamination Control
Performance Metrics and Reporting
Continuous Improvement
Condition Monitoring
Awardees Palo Verde Nuclear Generating Station (Arizona Public Service)
Smoky Canyon Mine (J.R.Simplot Company)
Georgia Power Company (Southern Company)
Kennecott Energy Company (Rio Tinto)
Clopay Plastics (Augusta Ky. Plant)
Coal Creek Station (North Dakota)
Energizer (Maryville, Mo.)
International Paper (Courtland Plant)
Clopay Plastics
Valero Energy Corporation (Port Arthur, TX)
Cargill Corn Milling (Wahpeton, ND)
Eli Lily & Co. (Indianapolis, IN)
Invista (Victoria, TX)
Minera Yanacocha S.R.L. Gold Mill Yanacocha Newmont Plant
Visy Pulp & Paper
Gibson Island Plant
Lubrication Webinar - December 13, 2012
– Do a Lubrication GAP analysis
– Do a quick Cost Benefit Analysis (CBA) to see if its worth improving Lubrication
– Find a COACH – they are worth their weight in gold
– Get some onsite training for what Lubrication Best Practice (LBP) is and why its worth doing
– Redo the Lubrication GAP analysis, but get the maintenance team to score themselves
– Do a FULL Cost Benefit Analysis (CBA) and pitch it to senior management
– Present the maintenance team with ways in which to close the GAPs and choose what you want to do, by whom and by when
– Closing the GAP’s – 11 real case studies
– IMPORTANT STARTING POINTS: (1) set cleanliness/health targets and (2) set KPI’s
– Our AWARD WINNING case study on contamination vs. vibration
– Management buy-in & support – track the progress and dollars
– Keep sharpening the saw and re-GAP
Agenda
Lubrication Webinar - December 13, 2012
Lubrication GAP Analysis
Lubrication Webinar - December 13, 2012
Cost Benefit Analysis (CBA)
Lubrication Webinar - December 13, 2012
Find a Lubrication Coach – We used Drew Troyer (Sigma Reliability & Noria*)
– Provided training for us (both on site and via WEBEX)
– Guided us through the GAP analysis
– Assisted us with our Cost Benefit Analysis (CBA)
– Assisted us with setting lubrication cleanliness/health targets
– Assisted us with completing our Lubrication PM routes & procedures
– Assisted us with setting KPI’s that will drive right long term behaviour
– Assisted us with ideas (seen with other clients) to close our GAP’s
– Guided us how to attain Management buy-in and keep staff motivated
– Assisted us with systems to easily track the benefits of the program
* Prior to starting Sigma
Lubrication Webinar - December 13, 2012
Onsite or Remote training – Again, we used Drew Troyer (Sigma Reliability & Noria*) for this.
– We also pressurised our lubricant & filter suppliers for FREE training & materials
– We have recently done our own in-house training on “reading an oil analysis report”
– WEBEX is a fantastic training tool in which anyone in the world can access everyone in your company to perform interactive training
– You can share desktops
– You can use VOIP communication
– You can create & save video/audio minutes
* Prior to starting Sigma
Lubrication Webinar - December 13, 2012
Lubrication GAP Analysis
Lubrication Webinar - December 13, 2012
Cost Benefit Analysis (CBA)
Lubrication Webinar - December 13, 2012
Cost Benefit Analysis (CBA)
Lubrication Webinar - December 13, 2012
Discuss the WHAT, WHOM & WHEN with maintenance team
– Following the Best Practice training done by Drew Troyer, we discussed what needed to done to close the GAP on each element of the GAP analysis
– We also discussed who was the best resource to do each task (used combination of out-house & in-house resource)
– With assistance from Drew, we decided & prioritised which GAPs were our easy wins and which were our ‘biggest bang for our buck”.
– We then (together) decided when each would be done. I would suggest don't be to ambitious; its difficult doing this work on top of our day-to-day work.
– Whilst working on each GAP, we recorded & photographed the improvements – you never know who is going to ask for a progress update at any time.
– We tried to celebrate the closing of each GAP with a form of recognition (either words from senior management or a barbeque or pizza)
Lubrication Webinar - December 13, 2012
– We were able to find a spare / clean / dry area in the mill
– We walled & bunded it and installed a roller & PA door
– We installed racking, cupboards, bench, bulk tank, desk etc.
– Bulk tank was piped off to our 3 main lubricating tank in the mill
– Walls/roof was painted & floor was sealed/painted
– OilSafe containers setup & colour coded
– All lube PM Schedules / Procedures / Routes displayed
– All site lubricant TDS/MDS/Colour coding displayed
– Extraction fan installed
– Fire sprinklers installed
– We made the area an example of Best Practice 5S (everything fully colour coded and ergonomically positioned)
Closing the GAP #1 - Lubrication storage -
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
– We set up a World Best Practice Lubricant Colour Coding system for $2500
– We asked our accountant & our lube supplier for a list of all the lubricants used on site in the last 2 years
– We broke them down into type i.e. paper machine oil (PMO), a mineral gear oil (EP), a synthetic gear oil (EP-S), a hydraulic oil (AW), a turbine oil (R&O) and a chain oil (CHN). We did the same for greases, identifying each as a motor grease (EM), multipurpose grease (MP), wet area grease (W) or coupling grease (C)
– We then chose a colour for each type i.e. blue for PMO, yellow for EP, black for EP-S, red for AW, grey for R&O, green for CHN oils (OilSafe containers compatible), purple for EM, green for MP, pink for W and brown for C greases
– We then chose shapes for each viscosity/NLGI number i.e. 22 = trapezium, 32 = inverted triangle, 46 = rhombus, 68 = triangle, 100 = pentagon, 150 = diamond, 220 = square, 320 = circle, 460 = hexagon and 680 = star.
– We trialled various combination of material/adhesive and settled on 0.7mm aluminium with high temperature automotive sponge adhesive
Closing the GAP #2 - Lubricant Colour Coding -
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
– We defined our oil cleanliness targets for bearing, hydraulic, gear & turbine oils
– We installed a 3 micron polishing system for oil supply to our main bearing lubrication tanks to ensure we met our strict cleanliness targets
– We installed 3 micron particle & water removal filters in our store for our drum oils decanting into OilSafe containers to ensure we met our strict cleanliness targets
– We purchased drum toppers and filter carts for each lubricant type, viscosity & plant area to ensure we met our strict cleanliness targets
– We made the area an example of Best Practice 5S (everything fully colour coded and ergonomically positioned)
Closing the GAP #3 - Lubricant Transfer -
Lubrication Webinar - December 13, 2012
Top 10 To-do-list
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
– We defined our oil cleanliness targets for bearing, hydraulic, gear & turbine oils
– We installed a 3 micron polishing system for oil supply to our main bearing lubrication tanks to ensure we met our strict cleanliness targets
– We installed 3 micron particle & water removal filters in our store for our drum oils decanting into OilSafe containers to ensure we met our strict cleanliness targets
– We purchased drum toppers and filter carts for each lubricant type, viscosity & plant area to ensure we met our strict cleanliness targets
– We made the area an example of Best Practice 5S (everything fully colour coded and ergonomically positioned)
Closing the GAP #4 - Contamination Exclusion (vents) -
Lubrication Webinar - December 13, 2012
Top 10 To-do-list
Lubrication Webinar - December 13, 2012
Top 10 To-do-list
Lubrication Webinar - December 13, 2012
Top 10 To-do-list
Lubrication Webinar - December 13, 2012
– We defined our oil cleanliness targets for bearing, hydraulic, gear & turbine oils
– We installed a full time 3 micron polishing kidney on our main lubrication tank (feeding about 250 bearings)
– We installed a full time Vacuum Dehydrator on our main lubrication tank (feeding about 250 bearings)
– We installed a full time 3 micron particle filter and water removal filter on our press bearing tank (4 x $35,000 bearings)
– We installed a full time 3 micron particle filter and water removal filter on our pulping gearbox ($300,000 gearbox)
– We installed a full time 3 micron particle filter and water removal filter on our 2MW steam turbine
– We made the area an example of Best Practice 5S (everything fully colour coded and ergonomically positioned)
Closing the GAP #5 - Contamination Removal (full time) -
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
– We defined our oil cleanliness targets for bearing, hydraulic, gear & turbine oils
– We purchased filter carts for all our lubricant types, viscosities and plant areas
– We set up all our critical gearboxes, hydraulic tanks and bearing tanks with supply/return quick connects
– We use the oil sample ports on the carts to draw repeatable samples
– We made the area an example of Best Practice 5S (everything fully colour coded and ergonomically positioned)
Closing the GAP #6 - Contamination Removal (periodic) -
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
SAMPLE PORT
Lubrication Webinar - December 13, 2012
ISO 12/9
100ml @ 100X
ISO 24/21
100ml @ 100X
ISO 23/21
100ml @ 100X
NEW OIL
USED/FILTERED OIL
USED OIL
PAPER MACHINE 220cSt GEAR OIL
Lubrication Webinar - December 13, 2012
Reducing our gear oil from an ISO 24/21 to an ISO 12/9 has extended
the life of our gears by 8 times and the life of our gear bearings by 10
times
Lubrication Webinar - December 13, 2012
Closing the GAP #7 - Oil Analysis Tests, Targets, Alarms & Limits -
Lubrication Webinar - December 13, 2012
Hydrascout Moisture Tester
‒ Allows instant confirmation of water in oil
and provides a reading in PPM.
‒ Eliminates the need to send oil sample away
to the lab and having to wait up to a week for
results.
Millipore Patch Testing Unit
‒ Allows onsite wear-debris analysis.
‒ Gives visual before & after results of the
online filtration cart doing it’s job.
Closing the GAP #8 - Basic onsite oil analysis -
Lubrication Webinar - December 13, 2012
– We compiled a list of all the equipment in the plant – For each piece of equipment, we recorded the:
– Bearing number – Rotational Speed – Operating temperature
– We used the FAG formula for calculating volume & frequency. We calculated that the minimum relube frequency on motors was 8 weeks, pumps was 4 weeks & fans was 4 weeks. We then fixed the relube frequency and interpolated the volume for the new relube frequency.
– We assigned a lubricant type to each equipment – We separated each equipment into an area – We then created the routes – We then created the schedules – We then uploaded into our CMMS – Each planned & scheduled route is filled out, scanned and attached to the
job prior to closing the job.
Closing the GAP #9 - Lubrication PM Procedures, Schedules & Routes -
Lubrication Webinar - December 13, 2012
An example of the list of Schedule
Lubrication Webinar - December 13, 2012
An example of 1 of the 25 routes
Lubrication Webinar - December 13, 2012
An example of the Schedule table
Lubrication Webinar - December 13, 2012
The Lubrication PM system is then uploaded and managed through the CMMS
Lubrication Webinar - December 13, 2012
– We engaged the services of Drew Troyer for a one-off half day onsite session for all our maintenance personnel and lubrication technicians
– We made it a Company Policy that all our Lubrication Technicians are MLT1 certified through the ICML
– We sent our Lube Techs on the MLT1 course and exam
– We held a WEBEX training session on oil analysis report interpretation with Shaun Thiele (INDISOL)
– We are looking at setting up many more WEBEX training sessions; they’re extremely effective & efficient
Closing the GAP #10 - Lubrication Training -
Lubrication Webinar - December 13, 2012
– We used the services of another external consultant to develop our oil cleanliness & health targets - these are tracked on a pass/fail (%)
– We simply used the same KPI’s that were taught to us during the NORIA course – these are tracked as a actual/planned (%) & pass/fail (%)
Set your KPI’s & Targets
Lubrication Webinar - December 13, 2012
– Following the MLT1 course in 2009, I thought there might be something to this “clean oil equals more reliability”
– I took a big punt and spend $50k on a Vacuum Dehydrator & a Kidney – I set a target of 100ppm water and ISO13/10 cleanliness – I first installed the polishing kidney and took our cleanliness from an ISO
25/23/21 to an ISO 21/20/18. It was a slow process, a drop of 1 ISO level per month, but I did not see any major change in reliability, velocity or acceleration levels
– I then installed the Vacuum Dehydrator and it only took about 3 weeks to reduce the water from 970ppm to 66ppm.
THEN SOMETHING UNBELIEVABLE ... – My GOOD bearing count increased from 61% to 91%, my SUSPECT bearing
count reduced from 36% to 9% and my ALERT bearing count reduced from 3% to 1%
– My unplanned bearing downtime reduced from 84 minutes per month to ZERO – In the words of our crafts people, “we used to change between one and two
dryer can bearings a month, now we are lucky to change one a year”.
Award Winning case study - Oil Cleanliness vs. Vibration -
Lubrication Webinar - December 13, 2012
Vacuum Dehydrator 2 micron polishing kidney filter
Lubrication Webinar - December 13, 2012
VISY Brisbane Paper MillLubrication Contamination TrialDryer Section (350 bearings) - Downtime vs. Vibration
312
0 0 0
101
167
0
136
0
124
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00
50
100
150
200
250
300
350
400
Dec-08 Apr-09 Jul-09 Oct-09 Feb-10 May-10 Aug-10 Nov-10 Mar-11
Nu
mb
er
of
Pap
er
Mach
ine B
eari
ng
VA bearing OK VA bearing Suspect
VA bearing Alerts Bearing Downtime
Linear (Bearing Downtime)
VA bearing OK
VA bearing Suspect
VA bearing Alert
Bearing Downtime
(minutes)
Vacuum Dehydration running
2 micron particle polishing kidney filter
Lubrication Webinar - December 13, 2012
312
0 0 0
101
0
136
0
124
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
167
00
50
100
150
200
250
300
350
400
Jan-
09
Feb-0
9
Mar
-09
Apr
-09
May
-09
Jun-
09
Jul-0
9
Aug
-09
Sep
-09
Oct-0
9
Nov
-09
Dec
-09
Jan-
10
Feb-1
0
Mar
-10
Apr
-10
May
-10
Jun-
10
Jul-1
0
Aug
-10
Sep
-10
Oct-1
0
Nov
-10
Dec
-10
Jan-
11
Feb-1
1
Nu
mb
er
of
Pap
er
Mach
ine B
eari
ng
s
0
50000
100000
150000
200000
250000
300000
350000
Part
icle
co
un
t <
6 m
icro
ns
VA bearing OK VA bearing Suspect
VA bearing Alerts Bearing Downtime
particles<6micron Linear (Bearing Downtime)
VA bearing OK
VA bearing Suspect
VA bearing
Alert
Bearing Downtime (minutes)
2 micron particle polishing kidney filter
Dirt < 6 microns
VISY Brisbane Paper MillLubrication Contamination Trial (DIRT)Dryer Section (350 bearings) - Downtime vs. Vibration
Maintenance Department
proactively using offline
filtration, replacing roll
seals and breathers to try
and reduce oil leaks and
contamination ingress
Lubrication Webinar - December 13, 2012
312
0 0 0
101
167
0
136
0
124
0 0 0 0 0 0 0 0 0 0 0 0 0 0 00
0
50
100
150
200
250
300
350
400
Jan-
09
Feb-0
9
Mar
-09
Apr
-09
May
-09
Jun-
09
Jul-0
9
Aug
-09
Sep
-09
Oct-0
9
Nov
-09
Dec
-09
Jan-
10
Feb-1
0
Mar
-10
Apr
-10
May
-10
Jun-
10
Jul-1
0
Aug
-10
Sep
-10
Oct-1
0
Nov
-10
Dec
-10
Jan-
11
Feb-1
1
Nu
mb
er
of
Pap
er
Mach
ine B
eari
ng
s
0
200
400
600
800
1000
1200
1400
1600
Wate
r (p
pm
)
VA bearing OK VA bearing Suspect
VA bearing Alerts Bearing Downtime
Water (ppm) Linear (Bearing Downtime)
VA bearing OK
VA bearing SuspectVA bearing
Alert
Bearing Downtime
(minutes)
Water (ppm)
VISY Brisbane Paper MillLubrication Contamination Trial (WATER)Dryer Section (350 bearings) - Downtime vs. Vibration
Winter (less humidity)Summer
(more
humidity)
Vacuum Dehydration running
Lubrication Webinar - December 13, 2012
The RAW data from tracking our main lubrication tank decontamination project
Lubrication Webinar - December 13, 2012
Cleaning oil from an
ISO 21/18 to an ISO
13/10, will mean
instead of putting
243,089kg of dirt/yr
in our bearings, its
reduced to 949kg
dirt/yr in our bearing.
We’ve gone from
4862 50kg bags of
dirt to 19 x 50kg
bags of dirt (256
times less dirt)
Lubrication Webinar - December 13, 2012
Patrick Fasse
Director of Sales
Fluid Defense Systems
LEAN / 5S
&
Visual Lubrication Management
Lubrication Webinar - December 13, 2012
Lubrication Quality
Impact on Equipment Life & Maintenance
The lubricant is only as good as the methods used
to handle it.
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Current Practices
Lubrication Webinar - December 13, 2012
Lubrication Webinar - December 13, 2012
Visual Lubrication Management
• Delivering well identified and clean lubricants from bulk storage to point of application
• Meeting increasing reliability, safety and environmental demands
• Gaining efficient processes, systems, reliability
• Reducing downtime, health and safety costs and penalties.
Lubrication Webinar - December 13, 2012
LEAN AND 5S
Lubrication Webinar - December 13, 2012
LEAN/5S
• Create a culture shift
– Break the “we’ve always done it this way”
mindset
• If its not measured it can’t be improved
• Continuous Improvement – Always looking
for a better way
Lubrication Webinar - December 13, 2012
LEAN Elimination of Waste
In Any Process
Lubrication Webinar - December 13, 2012
Using 5S
Lubrication Webinar - December 13, 2012
The 5S’s
• Sort
• Straighten
• Scrub
• Standardize
• Sustain
• Safety (the additional 6th S)
Lubrication Webinar - December 13, 2012
Step 1: Sort
• Separate unnecessary from the necessary
• Remove things not required for the process
• ‘Red Tag’ removed items – Identify and list all ‘stuff’
removed
– It may come in handy later!
• Clean the space as you go
Lubrication Webinar - December 13, 2012
Step 2: Straighten
• Organize the workplace so ‘value’ can flow freely
• Eliminate non-value-adding steps
• Convert from ‘batch’ or ‘craft’ processes to flow
• U-shaped flow is ideal
Lubrication Webinar - December 13, 2012
Step 3: Scrub
• Clean the new
workplace and its
equipment
• Re-paint and Identify
Lubrication Webinar - December 13, 2012
Step 4: Standardize • A place for everything
and everything in its place
• Re-paint and repair
• Label and mark out
• Implement a color and symbol fluid standard
Lubrication Webinar - December 13, 2012
Step 4: Standardize
Lubrication Webinar - December 13, 2012
Step 5: Sustain
• Define the 5S standards
• Innovate to make it
impossible to slip back
• Assign responsibilities
• Allocate time at the end of
each day / shift for ‘reset’
• Audit regularly
• Manage by walking about
Lubrication Webinar - December 13, 2012
Step 5: Sustain
Lubrication Webinar - December 13, 2012
Step 6: Safety
• Resolve all safety issues
• Change things likely to cause injury, stress, or overburden
• Check existing safety equipment
• Improve and innovate to avoid ‘anti-work’ thinking
Lubrication Webinar - December 13, 2012
Next Steps
• Identify Improvement Opportunities
• Provide Ownership to the process
• Plan
• Implement
• Measure
• Reward the small Successes
• Repeat
Lubrication Webinar - December 13, 2012
Cost
Imple
menta
tion E
xert
ion
Low High
High
Project Planning
Lubrication Webinar - December 13, 2012
Next Steps
• Identify Improvement Opportunities
• Provide Ownership to the process
• Plan
• Implement
• Measure
• Reward the small Successes
• Repeat
Lubrication Webinar - December 13, 2012
Brian Gleason
President
Des-Case Corporation
Building the Business Case for Precision Lubrication
Lubrication Webinar - December 13, 2012
The Role of Lubrication in Machine Reliability
Less than 0.5% of a plant’s maintenance budget is spent purchasing lubricants, but the downstream effects of poor lubrication can impact as much as 30% of a plant’s total maintenance costs each year.
ExxonMobil Case Study
© 2012 Des-Case Corp.
Lubrication Webinar - December 13, 2012
Lubrication Transformation® – Business Case Analysis
Key Objectives – Financial Analysis:
Work with plant maintenance management to estimate the amount lost
each year due to imprecise lubrication
Develop an action plan to help close the gap on the most common
reasons for poor lubrication
Estimate the upfront and ongoing costs to close the gaps
Calculate the 5-year Net Present Value (NPV) and Internal Rate of
Return (IRR) for improvements
Note: Most companies have a hurdle rate of 15-30% IRR for project
approval
Managers speak in dollars and cents, not beta ratios and microns. We need to learn the language of management.
Managers really don’t care about lubrication. They care about the financial impact of poor lubrication.
Lubrication Webinar - December 13, 2012
Lubrication Assessment – Business Case Analysis
Low Case
Estimate
Likely Case
Estimate
High
Case
Estimate
Question 1
How much do you typically spend annually on ALL maintenance
work (mechanical, electrical etc.)? Include in your estimate both
material and labor costs for both planned (scheduled) and
unplanned (repair) work.
$13.5M $15M $17M
Question 2
In a typical year, how much do you lose due to unscheduled
downtime, production slow downs or off spec production? If you
cannot provide a reasonable estimate, enter $0 and proceed to
complete the assessment without accounting for production losses.
$0 $0 $1.5M
Question 3
Of your total annual maintenance costs entered in question 1, what
percentage can be attributed to either scheduled
rebuild/replacement or emergent, unscheduled repairs? Exclude
any costs associated with routine inspections or routine predictive
maintenance activities.
60% 70% 80%
Question 4
What percentage of scheduled or unscheduled repair work is
performed on rotating or reciprocating equipment, as opposed to
facilities maintenance, electrical equipment etc.? 50% 60% 70%
Question 5
Of the scheduled or unscheduled repair tasks performed on
rotating or reciprocating equipment (Question 4), in your
estimation, what percentage are due to poor lubrication (wrong
lubricant, under or over lubrication, contaminated oil etc.)?
30% 40% 50%
Question 6
By implementing the improvement plan outlined in this project
proposal, what percentage of the lubrication problems entered in
question 5 could have been avoided? 10% 20% 30%
Lubrication Webinar - December 13, 2012
Lubrication Assessment – Business Case Analysis
Response Calculated value
Choose low, medium or high case estimate likely case
Annual maintenance costs $15,000,000 $15,000,000
Downtime losses $0 $0
Scheduled PM and Repair costs 70% $10,500,000
Amount spent on rotating/reciprocating
equipment 60% $6,300,000
Percentage of lubrication related problems 40% $2,520,000
Percentage of lubrication problems that can
be eliminated 20% $504,000
Estimated Annual Losses Due to Poor
Lubrication likely case $504,000
Lubrication Webinar - December 13, 2012
Lubrication Transformation® – Macro Business Case
Financial Evaluation Case likely case
Estimated Annual Lubrication
Losses $2,520,000
Addressable Annual Lubrication
Losses $504,000
Year 0 1 2 3 4 5
Program Benefits $0 $252,000 $378,000 $504,000 $504,000 $504,000
Program Costs
Upfront $94,900 $0 $0 $0 $0 $0
Ongoing $36,850 $36,850 $36,850 $36,850 $36,850
Total Costs $94,900 $36,850 $36,850 $36,850 $36,850 $36,850
Net Cash Flow -$94,900 $215,150 $341,150 $467,150 $467,150 $467,150
Select Discount Rate 10%
Discount Factor 100% 91% 83% 75% 68% 62%
Discounted Net Cash Flow -$94,900 $178,545 $266,446 $336,890 $306,263 $278,421
Investment Analysis
Five Year Net Present Value (NPV) $1,274,165
Internal Rate of Return (IRR) 260%
Lubrication Webinar - December 13, 2012
Case Study | Bearings in Foundry
Statistics
• More than 50% of electric motor failures are
bearing related.
• An estimated 95% of all bearing failures are
premature.
• 58% of bearing failures are due to poor
lubrication, contamination, over-lubrication or
wrong lubricant selection.
Assumptions
• $65,796.50 total electric motor purchases and rebuilds in 2011.
• $1,496,623 total bearing purchases in 2011 (not including electric motor
bearings)
Conclusions Based on Statistics
• $65,796.50 x 50% x 58% = $19,080.99 failures likely due to poor lubrication, contamination, over-
lubrication or wrong lubricant selection in 2011.
• $1,496,623 x 58% = $868,041 in avoidable lubrication failures total bearing purchases in 2011
(not including electric motor bearings)
Lubrication Webinar - December 13, 2012
• A large refinery was experiencing
pump failures at a rate of 351/year
• Deployed new lubricant storage
and handling, equipment tagging
and operator lead reliability
Results:
Pump failures dropped from 351 to 276 in 1 year Estimated annualized savings of $935,000 Reduction in lubricant purchases of $50,000 5-year Net Present Value (NPV) savings of $3M at an Internal Rate of Return (IRR) of 196%
The Value of Precision Lubrication
Lubrication Webinar - December 13, 2012
Questions for our Panel?
Brian Gleason
President
Des-Case Corporation
615-672-880
Suzy Jamieson
Executive Director
International Council
for Machinery
Lubrication
Patrick Fasse
Director of Sales
Fluid Defense Systems
Webinar sponsored by: