The unit price of oil is far from what an organization actually ends up paying as a result of their purchase. Ensuring the oil is optimized requires the help of direct labor and thus an additional cost must be incurred by the organization buying it. What’s more, there are disposal costs that must be considered as well. All this to say, organizations have a number of hidden costs that they might otherwise not assume due to their oil. This post will detail those costs in length, in addition to the ways your organization can minimize them.
It becomes the responsibility of your organization to ensure that its cost effectiveness for each operation is kept to a minimum. This is typically accomplished through all machinery performing at optimal levels. Most machinery’s most important maintenance functions are proper lubrication and completing regular oil changes. As many organizations understand, however, finding the time to do this amidst operations is extremely difficult as it can halt processes that are necessary to an organization’s success.
One of the hidden costs that would otherwise be not considered are the unnecessary oil changes organizations conduct. Organizations often schedule an oil change in hopes that it’ll resolve a problem that’s entirely unrelated to an oil change. Organizations waste valuable resources and time by doing this. Worse of, though, they’re emitting additional hazardous waste into to the environment.
While these oil changes are costly, what’s truly expensive for an organization are the various damages that occur to machinery. Even one simple mistake can result in a costly error for organizations to solve. An over or under-filling the sump or reservoir, for example introduces a new cost for organizations to handle. The same can be said for contaminated or incorrect product runoff. The damage they resolve will also require maintenance and subsequent downtime, keeping organizations from operating at max efficiency.
As mentioned above, both damage and inadequate maintenance could ultimately lead to equipment failure. What contributes most to a machine’s failure, though? Majority of time, damages are a result of bearing malfunctions. Nearly 40-50% of machine failures are attributed to improper lubrication or re-lubrication of bearings. Even organizations willing to expend the capital for the right parts to resolve their issue can be met with their machine becoming non-operational. In that case, much more capital will have to be spent to keep the machine alive.
For more information on the ways your organization can minimize the hidden costs associated with its oil purchases and applications, such as different preventive measures or upgrades, be sure to continue reading on to the infographic paired alongside this post. Infographic courtesy of Isomag.