32
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November - December 2019
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www
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machinerylubrication.com
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."
