Machinery Lubrication magazine published by Noria Corporation
Issue link: http://www.e-digitaleditions.com/i/704613
FROM THE FIELD FROM THE FIELD improvements can be predicted with accuracy, such as imple- menting a condition monitoring program. There's really no way to determine the amount of unpredicted failures you will have versus the ones you will be able to predict through oil analysis, which means an ROI using this number will be useless. Even worse, if you use ROI as your financial benchmark and your implementation does not result in the expected return, obtaining additional approvals based on ROI will be difficult. Quantif ying returns can be challenging, particularly in a plant environment where key information needed to establish the metric is missing. This issue arises when the computerized main- tenance management system (CMMS) does not accurately reflect or represent the maintenance tasks performed. So unless you are sure everything will be reported correctly, using ROI as your financial benchmark would be irrelevant to what is actually occurring in your plant. Tracking KPIs The strategy for recognizing these returns comes down to tracking certain key performance indicators (KPIs). Some KPIs are straightforward and have a direct link to cost savings, but many are indirect and therefore more challenging to link the implemented process to the resulting savings. This may be due to a number of factors, such as a large time gap between the initiative and the cost savings, symptoms that mask the true root cause, or the complete- ness of the initiative. I recommend tracking or measuring everything you can. It is important to consider this before any significant changes are made, because you will need a reference point for comparison. If you don't know where you started, it will be difficult to look back and see how far you have come. Think Long Term Long-term analysis is another strategy that is often disre- garded. Many people have become accustomed to using short-term returns and the need for a net positive cash flow within only a few months. Implementation of a lubrication program can be a daunting task that requires a significant amount of time, money and energy. The results are not like flipping a light switch. They can take months or years to fully realize. Take a step back and try to identify how the initiative will improve reliability and the bottom line year after year. Shifting the culture to understand that an investment today can earn revenue long after the payback period will be a step in the right direction. Consider the Alternatives While there are several ways an organization can benefit from a greater focus on lubrication and reliability, the greatest value gener- ally comes from increased equipment availability. Machines that operate longer between outages produce more saleable product. This increase in production by more reliable equipment carries a greater profit margin. Even if the business is not in a sold-out capacity and additional volume is not needed, adjustments can be made in operating shifts to reduce costs. Increased reliability also results in a more stable process. Those in the continuous process industries will find that the inci- 10 | July - August 2016 | www.machinerylubrication.com By emphasizing lubrication, oil analysis and reliability, your organization can capitalize on the investment in its physical assets, increasing output, decreasing costs and improving the expected lifespan of components, machines and the overall plant. 60% of lubrication professionals do not use any metrics or key performance indicators (KPIs) to measure their lubrication program, based on a recent poll at MachineryLubrication.com