Potential customers often ask about the ROI of oil analysis—how to convey it to decision makers. It’s a question that TestOil Field Analyst David Gawelek is only too happy to answer. “Oil analysis will detect a problem before it becomes impactful,” he explains. “It will also allow you to measure the cleanliness and moisture levels of the fluid which, when controlled, can more than double the life of machinery.”
He continues, “There are start-up and overhead costs as with any program, but the goals and outcomes involve quantifiable cost controls and benefits.” Per David, these include:
- Materials and labor saved using condition-based PMs
- Reduced repair and downtime costs (both the number of events and their severity)
- Reduction of materials and energy consumption
- Fewer defects
- Increased production
Other sources of oil analysis ROI include:
- Longer Equipment Life: Oil analysis ensures that the machinery is being optimally lubricated while also monitoring issues such as wear and contamination. Wear particle analysis—the cornerstone of oil analysis—is amazingly effective at flagging and predicting problems before they start to negatively affect the life of the equipment.
- Extending the Life of Lubricants: Oil analysis yields a clear picture of the condition of the lubricants so that it will never have to be changed prematurely. This can, in some cases, more than double the filter change and drain intervals. Eliminating even one oil change a year saves money in material and labor time.
- Boosting Resale Value. Nothing says the equipment has been taken care of better than a series of reports demonstrating regular oil analysis.
“Over a 3-5 year timespan there could be multiple failures detected by oil analysis, and avoiding just one major failure will generally recover the entire cost during this time,” David says. “The other savings then apply directly to the bottom line.”
Most companies don’t have a good strategy in place for determining the ROI of oil analysis, but they should. “It’s like an annual checkup with your doctor,” David adds. “We all know it has the potential to catch things early that could otherwise become serious. As with check-ups, there is a peace-of-mind element to regular oil analysis. It is not something we often do consciously, but when you consider the financial and opportunity cost of regular doctor visits and bloodwork versus the cost of a catastrophic late-stage diagnosis and treatment, you are considering your return on investment. Calculating the ROI of your oil analysis program is no different.”
TestOil offers an excellent program, KickStart PRO, which helps companies get off on the right foot (or back on track) with oil analysis in a way that can easily demonstrate ROI. It’s a six-month hands-on regime that begins with an onsite consultation and evaluation and ends with a final onsite visit, program handoff, TestOil program certification and a customized program manual. For more information about KickStart PRO visit: https://testoil.com/kickstart-pro/
With more than 30 years of experience in the oil analysis industry, TestOil focuses exclusively on assisting industrial facilities with reducing maintenance costs and avoiding unexpected downtime through oil analysis program implementation. As industry experts in diagnosing oil-related issues in equipment such as turbines, hydraulics, gearboxes, pumps, compressors and diesel generators, TestOil provides customers with a guarantee of same-day turnaround on all routine testing. With in-house, certified training professionals, TestOil offers lubrication and oil analysis training, private onsite training, certification training and exams, and educational webinars. For more information on partnering with TestOil on oil analysis programs or training opportunities visit www.testoil.com.