Would you know if you are using 10%, 15% or even 50% more fluid than you need to? Most companies consume far more fluid than necessary, while still paying the hidden costs associated with poor fluid condition.
Why the $/G is just one of the variables in the Total Fluid Cost puzzle
Lack of focused attention, poor non-core business process and missing the specialized expertise necessary to optimize fluid costs, are the primary reasons that industry has been using the $/G mentality to drive their decisions for far too long. By using the Right Fluid and managing it the Right Way, it’s possible to spend a fraction of the total costs your facility has been paying historically. An OBEf approach is essential to reducing the fluid cost and drive sustainable improvement over time.
Unit Price vs. Total Cost
Purchasing departments are focused on cost control, closely monitoring price. An essential function, industry has to be sure it’s paying a competitive cost for any item it needs to operate its business. If the price changes, a company’s procurement process catches the change and follows up. Through competitive bidding, commodity prices are kept in check, and the company knows it is paying a competitive rate for the item in question. What’s difficult for the purchasing department to identify however, is when too much or too many gallons of product are being consumed by the manufacturing process. That’s where OBEf comes in.
The Keys to Cost reduction
Two primary factors impact consumption rate when it comes to industrial fluid usage, 1) how the fluid is being managed and maintained on the floor, and 2) the product itself. Though some fluids (like hydraulic oils) are commodities and perform relatively the same compared to one another, most industrial fluids are engineered to perform a specific function and change over time when subjected to the various stresses associated with manufacturing. What may look like a “competitive fluid” from a cost per gallon perspective, may in fact have a significantly different impact on the bottom line when the total cost is taken into consideration.
Zimmark’s Gap Analysis Audit
We look at all 5 elements of OBEf to identify and quantify where the opportunities are for cost and risk reduction. For companies that qualify, this audit is done at no cost to the facility. Results are presented to your management team clearly identifying opportunities for cost reduction and on-going risk management.