121312 PS Lubrication webinar v3[1]

Post on 30-Dec-2015

45 views 3 download

Tags:

description

Plant Services_Reliability Webinars_Lubrication

Transcript of 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

Brian.gleason@descase.com

615-672-880

Suzy Jamieson

Executive Director

International Council

for Machinery

Lubrication

suzyj@lubecouncil.org

Patrick Fasse

Director of Sales

Fluid Defense Systems

patrick@fluiddefense.com

Webinar sponsored by: