Executive Summary
TLT asked readers how they or their customers generate the highest ROI from oil analysis programs.
On potential returns of an OA program:
• ROI can be as high as 8,000:1 with an average probably in the 5%-15% range.
• TLT readers report OA-related savings of hundreds of thousands of dollars and in some cases millions.
• Preventing one catastrophic failure can pay for an OA program many times over.
Strategies readers have used to reduce the costs of lubricants include:
• Using OA to extend oil drain intervals.
• Reducing the number of different lubes to the bare minimum.
• Investing in higher quality lubricants, including synthetics for the proper application.
By implementing an oil analysis program at an industrial facility, we were able to save the customer more than 50% in pump repairs in just four months. We consolidated two fluids to one (correct) fluid and also saved the customer money on lubricants.
Customer confidence and loyalty.
Oil analysis is proactive maintenance.
Yes, oil analysis helps show clients how the behavior of the wear of the equipment relates to the oil.
I have a customer who uses oil analysis to double his drain intervals on his truck fleet. This has saved his company tens of thousands of dollars a year on the cost of new oil.
We are starting with oil analysis. On the last analysis of a 2,000-ton forging press, we found high presence of Cu. We acted before having a failure in the machine, which saved us several thousands of dollars.
Big savings. Low investment.
10%-15% savings.
We monitor consumption with OCR and always within the range because replacement is based on oil analysis report in the plant. We save money with it, because before failure comes we have seen the problem in analysis and have a plan for it, avoiding down time.
Yes, the ability to save just one engine from a catastrophic failure more than pays for a customer’s oil analysis program.
Significant oil drain extensions largely reduced the number of PM events, which meant greater uptime and reduced maintenance expenses.
Yes, savings easily cover expenses at 100% of accounts.
We are not going to save as a result of oil analysis. There has been not return in oil investment.
Yes. Hundreds of thousands of dollars.
Oil analysis programs work as proactive maintenance tools for our customers. Savings came from protecting their equipment from sudden breakdown and downtime.
Yes, but we’re unsure of the exact amount.
ROI can be as high as 8,000:1.
Extended oil service life. Less downtime and fewer failures. Reduced maintenance costs.
Longer drain time. Twice the savings in oil changes in product and labor.
I recently had a customer who had a gearbox filled with an incorrect oil, which was discovered through routine oil analysis. Potential savings were in the hundreds of thousands of dollars given that this was a large cement mill.
By extending oil change and picking up wear issues early.
Crankcase applications: Proactive service during the initial stages of EGR failure has saved numerous customers thousands of dollars.
Not when customers never bother to follow up on the results.
Determination of estimated life of equipment component. Scheduling repair during non-production times. ROI is at least 100%.
You can extend the life of the lubricant and save on wear and tear by keeping the oil clean and dry. The only way to know if it is clean and dry is to sample on a regular basis.
Yes. Extended drain intervals by 50%.
We have had much success with extended drains with customers, preventing failures by seeing the increase in certain wear metals.
OA enables us to schedule a piece of equipment for preventive maintenance based on oil tests. Result: We don’t have a reliability incident. Also allows us to know the condition of our oil so we don’t do unnecessary oil changes or repairs.
As a manufacturer of premium industrial and mining lubricants, our customers realize ROI through maximized productivity through optimized equipment performance and availability, longer equipment life and extended lubricant drain intervals.
In my experience, savings are varied and depend on the client’s overall maintenance program. At one extreme we have had to tell two clients to stop sampling because their practices were so bad their samples were wasting time and money for them and the lab. On the other extreme, we have seen documented case studies where ROI was running above 1:10; for every dollar spent expect 10 dollars in cost reduction, mostly based on lost production savings. In reality, most users are seeing around a 1:5 savings depending on how well they run their program.
Early detection of potential engine failure can save massive amounts of money and prevent down time.
We have helped customers identify problems in large gearboxes, which gave them time to shut down and repair the equipment before a catastrophic failure.
OA achieves its objective as part of our service or value proposition to the customer to extend the performance of its machines. With that comes the security of knowing the effect of its operation on machines through the effect of the health of its additives, external contamination and the wear of metal parts.
Estimated 15% savings.
Oil condition monitoring allowed customers to optimize oil usage to the fullest prior to complete change. Customers had saved substantial money in periodical maintenance cost.
OA enables us to collect frequent data to determine when to change the oil. It pays for itself, which also is true if you buy better quality synthetic lubricants.
Yes, extension of oil life and correct operation of filters/purifiers.
Extended drain intervals have caused the biggest savings for my customers.
By reducing the water content in the oil, about 10% fewer defective bottles in the lot were recorded.
Aside from identifying lube problems or equipment problems, our largest savings comes from condition-based oil changes. ROI is probably around 4-5 times the cost of the program.
Yes. 10 times to 20 times return by avoiding equipment operational issues.
Avoided premature/unplanned failures. Avoided replacement of thousands of gallons of fluids. Over the last 29 years, probably several million dollars.
We have several oil-analysis, oil-recycling projects where we run oil through purifiers and cartridge filter then send for oil analysis for reuse. We have saved roughly $40,000 a year to date.
We save time and money by analyzing our oil because we find we need to change it less often or can just filter it.
What is the primary reason you collect in-service oil samples for analysis on your machinery?
I am required to by my organization
5%
To remain compliant with equipment warranty
0%
Only when I suspect there is a problem with the equipment
9%
To determine if abnormal contamination is present
26%
To determine if the equipment is wearing abnormally
31%
To determine if I can extend the oil drain interval
29%
Based on responses sent to 15,000 TLT readers.
Q2. Describe at least one method you use to achieve savings on lubricants.
I always begin by researching the OEM-suggested lubes, then do a cross comparison of all the equipment to achieve the lowest number of different fluids needed. In most cases you can consolidate at least two to three fluids in industrial settings by using the right product.
Closely monitored sampling results.
Improved quality in terms of choice of base oil and additives (but obviously higher price).
Using a semi-synthetic oil in engines of trucks through 60,000 km before drain.
We always keep lubricants clean, cold and dry from the moment they arrive at the plant. That almost guarantees a long life for both the lubricant and the equipment.
Extending oil drains based in MBC.
Online monitoring.
Elemental analysis.
Correct use of lubricant.
Switch all trucks to synthetic-blend oils. We get better pricing in volume, and it’s also easier to keep track of usage and savings.
If the presence of wear and silicon is within acceptable limits, then we do online filtration and continue monitoring the oil. If oil viscosity is within limits, we manage by secondary cleaning to extend duration and save cost.
Extending oil drains was huge, but so also was using oil analysis to monitor equipment condition.
Preventing the wrong lubricant from being added to a system is our top way of saving.
Multipurpose lubes. Synthetic lubes.
Consolidating products can be a significant way to reduce costs, maintenance time, complexity and contamination.
Predictive maintenance, failure prevention and setting maintenance periods more accurately.
Consolidation of products to the fewest required to meet the manufacturer’s requirements. Reducing inventory also reduces the possibility of using the wrong product.
Lube rationing.
Extending oil drains by checking water, contaminants and acid number levels.
Actually, the most appropriate service intervals are determined based on service demands.
Use a dehydrator to remove emulsified and free water in hydraulic oil.
Extending drain intervals and minimizing downtime.
Buy in bulk if possible; the larger the package size, the cheaper the price by the gallon.
Bio-based lubricants.
By consolidating products, we reduce the chance of putting the wrong oil in a piece of equipment and reduce on-hand oil inventory.
Rather than achieve lubricant savings through one avenue solely, we usually maximize savings by using the several avenues described in the previous question. Although the percentage allocation will vary from customer to customer, depending on where they are in their lubricant optimization programs, we’re able to achieve savings via product consolidation, extended oil drain intervals, improved equipment uptime (i.e., extended oil drain intervals = less downtime and reduced unscheduled downtime) and extended equipment life.
Most of the savings are a result of extended drain intervals.
None. Most lubricate budgets are around 3% of the total cost to run and maintain equipment; applying resources to find saving here will miss the bigger opportunities elsewhere. If I did decide to look for savings on lubricants, I would focus on storage and dispensing practices to ensure there is no waste due to contamination and/or spillage/theft. Every gallon of oil purchased needs to be used to lubricate the equipment intended for the expected period. There is a common belief that oil analysis can be used to reduce lubricant costs. This is only true if there are wasteful practices that can be revealed by oil analysis. It is just as possible that oil analysis may drive up lubricant costs by identifying oils that have not been changed out in time.
When customers submit samples of their oil without draining and changing, they build a trending history that will give them an accurate picture of when their ideal drain interval is.
Oil change intervals are based on condition.
By monitoring oil in use, we have drastically extended drain intervals without risking damage to equipment.
Extending oil drains. We take samples of oil in consistent periods of time until finding real yields under their operating conditions. Based on this, we detect faults or anomalies in the machine that could interfere with better performance. The lubricant must be at least of the minimum quality required by the manufacturer.
Consolidating suppliers.
We are adjusting oil drain intervals and changing test slates based on the data we are gathering.
Extending oil drains, realizing the benefits of using better lubricants with longer equipment life.
Extending oil drain periods, product rationalization, product purification, matching product quality to application.
Proper maintenance such as regular air and fuel filter changing has helped the life of the oil.
Condition-based oil changes. Prior to utilizing them, most fluid were changed every six months to yearly. We now can run some of this equipment from 1.5 years to five years without an oil change.
Preventing unscheduled equipment downtime and maintenance work.
Eliminated multiple brands, eliminated off brand products and unnecessary use of synthetics.
Recycling hydraulic oils.
We analyze our oil, which reduces oil changes; we filter our oil, which reduces oil changes; and we consolidated our oils (which also leads to fewer errors).
How do you collect in-service oil samples from rotating equipment?
We do not have an oil analysis program
7%
Through the equipment’s reservoir/sump drain port
14%
Remove the compartment cover (if applicable) and dip the sample bottle
0%
Vacuum pump
20%
Oil sample valve installed on the equipment
59%
Based on responses sent to 15,000 TLT readers.