Why are oil analysis programs now the rule rather than the exception across most industries? Because they are one of a handful of services that deliver obvious and demonstrable ROI. The calculation of ROI can get very complex, but even a simple equation will deliver the evidence management needs to justify and expand the program.
Oil Analysis ROI—A Few Aspects You May Not Have Considered
Any organization that has instituted an oil analysis program has seen the bottom-line benefits of a reduction in downtime and equipment replacement expense. However, there are many less obvious contributors to ROI that some companies don’t consider. One of these is employee morale and a resulting reduction in turnover.
Eurofins TestOil Reliability Concierge Program Manager David Gawelek, CLS explains, “The maintenance function is inherently unpredictable, staff can (and often do) get called in off-shift and/or overnight to deal with equipment failures. This unpredictability is minimized when effective condition monitoring programs are in place. Ownership/buy-in of staff is a critical piece of a proactive reliability-centered maintenance culture. This occurs naturally when staff members see a condition-monitoring program (like oil analysis) improve operations and make their jobs more manageable and consequently their lives better.”
An improvement in employee morale also means less turnover (which can be costly). “Better employee retention leads to the retention of hard and soft skills, David adds. “A well-run oil analysis program is a learning and growth opportunity for staff. However, the benefits of reduced turnover are not limited to maintenance staff. Production staff, management, sales, and ultimately the customer benefit from more predictable operations due to well-executed condition monitoring. The impact and ROI of a successful oil analysis program extends across all stakeholders. “
In addition to improving employee morale and retention, other often overlooked areas where oil analysis delivers easily measurable ROI include:
- Reduced lubricant consumption
- Reduced energy consumption
- A reduction in the percentage of product defects
- An increase in equipment resale value
Other ROI factors less difficult to measure, but no less valid include catching contaminated new oil before it contaminates equipment and the peace of mind in knowing the maintenance operation is well run.
At Eurofins TestOil, we always encourage the measurement of ROI at regular intervals and are happy to provide help! For more information on working with Eurofins TestOil for oil analysis and training visit www.testoil.com. Contact: 216-251-2510; sales@testoil.com.
About Eurofins TestOil
With more than 30 years of experience in the oil analysis industry, Eurofins TestOil focuses exclusively on assisting industrial facilities with reducing maintenance costs and avoiding unexpected downtime through oil and fuel analysis program implementation. As industry experts in diagnosing oil-related issues in equipment such as turbines, hydraulics, gearboxes, pumps, compressors and diesel generators, Eurofins TestOil provides customers with a guarantee of same-day turnaround on all routine testing. For more information on partnering with Eurofins TestOil on oil analysis programs or training opportunities visit https://testoil.com. Contact: Michael Barrett 216-251-2510; sales@testoil.com.
About Eurofins – the global leader in bio-analysis
Eurofins is Testing for Life. Eurofins is the global leader in food, environment, pharmaceutical and cosmetic product testing, and in discovery pharmacology, forensics, advanced material sciences and agroscience Contract Research services. Eurofins is also a market leader in certain testing and laboratory services for genomics, and in the support of clinical studies, as well as in BioPharma Contract Development and Manufacturing. The Group also has a rapidly developing presence in highly specialised and molecular clinical diagnostic testing and in-vitro diagnostic products.
With over 61,000 staff across a network of 940 laboratories in 59 countries, Eurofins’ companies offer a portfolio of over 200,000 analytical methods. Eurofins Shares are listed on Euronext Paris Stock Exchange.
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