The True Cost of Poor Lubrication - UE · PDF file© 2012 Des-Case Corp. 3 Quiz Time...

© 2012 Des-Case Corp. 1

Des-Case Confidential

The True Cost of Poor Lubrication

Jason Kopschinsky, CMRP Director of Reliability Services

Des-Case Corporation


Quiz Time

• How important is precision lubrication to overall equipment reliability?

Source: Machinery Lubrication Reader Survey March, 2011 (n: 347)

99.1%



Quiz Time

• At your plant, have you achieved a level of lubrication that you would consider close to best practice?

Source: Machinery Lubrication Reader Survey March, 2011 (n: 347)



Roadblocks to Precision Lubrication

Problem Solution

Lack of knowledge or understanding of what’s possible

External Support & Engineered products/solutions & Training

Too busy putting out fires to develop an action plan

Project Management Support

Lack of management buy-in to provide funding

Develop a Business Case




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.


What Causes Machines to Fail?

Ref: MIT, E. Rabinowicz

70% of loss of machine life is due to loss of surface material

Loss of Usefulness



What Causes Surface Degradation?

Ref: MIT, E. Rabinowicz

Surface Degradation



What Causes Machines to Wear?

Ref: NRCC, STLE

Primary Wear Mechanisms

82% of mechanical

wear is caused by

particle contamination



0.001” = 25.4 microns 1” = 25,400 microns

Human Hair

How Big is a Micron?



One tsp of dirt in a 55 gal drum yields a particle count of 19/17/14. That means there are about 1 billion particles in the drum which are greater than 4 microns in diameter.

How Much Does it Take to Contaminate?



How Clean is New Oil?

With few exceptions, new oil is never clean enough for common applications. New oil must be filtered before installation to provide any reasonable level of cleanliness. New Oil is Dirty!!!



Particle Effects on Component Life



Failure starts Precision PdM (high frequency vibration analysis , oil analysis)

Wear debris analysis

Vibration analysis

Thermography

Audible noise/hot to touch

Looseness

Ancillary damage

Catastrophic failure

P

roac

tive

P

red

icti

ve

P

reve

nti

ve

R

un

To

Fai

l % r

emai

nin

g lif

e

Operating Hours

0%

100%

Progression of a Failure P-F Curve



Time Based PM’s


“When evaluated on a benefit/cost basis, approximately 50% of PM tasks have essentially no value.” John S. Mitchell

Time Based

Oil Drains

Time Based

Replacements Over Lubrication


Time Based Replacements

Des-Case Confidential Ref: NASA RCM Guide

• 30 identical 6309 deep groove ball bearings

• Run to failure on test bench • Standard test procedures

The wide variation in bearing life precludes the use of any effective time-based maintenance strategy.


Contamination Control Strategy

3


Set Targets Measure Results Take Action


Case Study – Steel Mill Hydraulics

0

10

20

30

40

50

60

70

80

90

100

year 1 year 2 year 3 year 4 year 5

Hydraulic Failures

Principle strategy: 1. Set targets 2. Offline filtration &

improved Breathers 3. Good oil analysis

Results: 96% drop in hydraulic failures 80% drop in oil consumption



Automotive Press Case Study

0

10000

20000

30000

40000

50000

60000

70000

80000

1 2 3 4 5 6 7

Par

ticl

e C

on

cen

trat

ion

(P

arti

cle

s/m

L) =

/> 4

mic

ron

Sample Number

93%-97% reduction in particle

contamination



Automotive Press Case Study

A Line B Line C Line D Line E Line

3 yearaverage

2012 YTD

Do

wn

tim

e (M

inu

tes)

Downtime 54% reduction in

downtime

6 7 8 9 10



Lubrication TransformationSM – 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 Assessment – Business Case Analysis

Low Case Estimate

Likely Case Estimate

High Case Estimate

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.

$8.5MM $9MM $10MM

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 $0

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.

75% 80% 80%

What percentage of scheduled or unscheduled repair work is performed on rotating or reciprocating equipment, as opposed to facilities maintenance, electrical equipment etc.?

45% 50% 70%

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.)?

40% 45% 50%

By implementing a well defined lubrication improvement program, what percentage of the lubrication problems entered in question 5 could have been avoided?

30% 35% 40%


Maintenance Manager

Production Manager

Maintenance Planner

Millwright/Mechanic

Mechanic/Lube Tech

All


Lubrication Assessment – Business Case Analysis

Response Calculated value

Choose low, medium or high case estimate likely case

Annual maintenance costs $9,000,000 $9,000,000

Downtime losses $0 $0

Scheduled PM and Repair costs 80% $7,200,000

Amount spent on rotating/reciprocating equipment

50% $3,600,000

Percentage of lubrication related problems 45% $1,620,000

Percentage of lubrication problems that can be eliminated

35% $567,000

Estimated Annual Losses Due to Poor Lubrication likely case $1,620,000

Addressable Losses Due to Poor Lubrication

likely case $567,000



Lubrication Transformation™ – Macro Business Case



Foundry Case Study | Dust Collector Bearings

• 26 Dust Collector Units • 250hp motors greased every 90 days • 6” fan bearings greased every two weeks

Current Practice • 16.65 fl.oz. of grease per motor bearing / 90 days • 3.33 fl.oz. of grease per fan bearing / 14 days

Calculated Practice • 1.35 fl.oz. of grease per motor bearing / 90 days • 5.48 fl.oz. of grease per fan bearing / 30 days

Assumptions • Cost of grease = $0.4/oz

• Cost of labor = $25/hr

• Time per shot = 4 seconds

Conclusions • Using the calculated relubrication volumes and frequencies on 26 dust collectors, there

would be a savings of $1747.64 per year which has a 5 year NPV of $5858.00. In addition, the amount of time that could be redirected to value added tasks is almost 40 hours per year.

• The above calculations do not account for travel time or damage to the bearing from over-lubrication or using the wrong lubricant reducing the useful life of the bearings.

• The grease selection for the fan bearings was also incorrect. A grease with a lower base oil viscosity should be selected.



Foundry Case Study | Bearings

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)



Foundry Case Study – Closing the Gap

GAP = Benefits - Total Upfront Program Costs = ($1747.64 + $19,080.99 + $868,041) - $344,750 = $924,258.49 - $344,750 = $544,119.63




Questions?

Putting best practices into practice…

Jason Kopschinsky, CMRP Director of Reliability Services

Des-Case Corporation 905.999.0076

[email protected]

The True Cost of Poor Lubrication - UE · PDF file© 2012 Des-Case Corp. 3 Quiz Time...

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