Machinery Lubrication

Machinery Lubrication Nov-Dec 2019

Machinery Lubrication magazine published by Noria Corporation

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Page 36 of 90

32 | November - December 2019 | www . To sell an organization on the value a lubrication program can offer, it is important to translate the program into true value. However, you first must define what value is. According to Merriam-Webster's dictionary, value is "the monetary worth of something: market price; a fair return or equivalent in goods, services or money for something exchanged; relative worth, utility or importance." Value shown by a lubrication program can take on many forms. Most of these can be tied back to monetary value. See Jim Fitch's "5 Ways to Monetize Lubrication Excellence Now" article on page 2. e focus of this article will be on capturing and showing this value in the form of savings and avoidances. Before you can show the value of your program and share it with others, a few factors within your facility must be understood. e first relates to the costs. Schedule a meeting with your finance depart- ment to learn the costs associated with maintenance cost per unit, cost of goods sold (and how it is calculated), total cost to produce, annual electrical costs, cost per kilowatt-hour, and total labor cost per hour by line. is is a good place to start. Next, try to understand how the finance department calculates these items and ask how savings How to Show the Value of a Lubrication Program LUBRICATION PROGRAMS Joe Anderson | Reliability X "If you follow this advice, you will start to change the perception of the lubrication program within your facility and begin to develop the much-needed credibility to be seen as the subject-matter expert you were hired to be."

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