Colegio Felipe Palazón

The first step in the cycle of using lubricants is the specification, purchase, and receipt of new lubricants. The basis of effective lubrication is the right product, in the right location, at the right time, in the right condition, in the right amount. Using the right product starts with its

specification and purchase. Often, this function happens independent of those individuals who might be considered as the lubrication experts for the site. As a result, sometimes the sole criterion for the purchase of lubricants becomes cost. Lubricants that are purchased based solely on cost, without consideration given to the technical requirements, the quality implications, or the effects of interchangeability of lubricants, can have a significant adverse effect on the lubrication program.

At any given time, the currently stocked lubricants for a facility typically include the products originally specified when the plant or machinery was designed, plus any number of additional products that have been added over time. This population of products may or may not be an efficient allocation of the proper type and number of different lubricants in use. Making the process even more difficult is the fact that many equipment manuals, which are provided as a guideline to installation and maintenance of that equipment, are rather vague in their description of lubrication requirements. For example, it is not uncommon to find an equipment manual that will specify something such as “use a good grade of mineral oil 300 SSU.” Another possible recommendation could be from a manufacturer to use the specially named product that they supply with their equipment or an equivalent. That named product might be merely a

repackaging of an existing manufactured lubricant, which is then resold at a greater price to the customer. Although manufacturers are required by law to supply their customers under warranty with either alternate lubricants that they can use or a free supply of their own solely specified lubricant, many times the information given about alternate acceptable products is minimal and leaves much to be desired.

Plants that have an efficient system of procuring lubricants typically have performed a lubrication consolidation in the recent past. The consolidation process is most effective when implemented with strict configuration controls in place. These controls are typically in the form of guiding procedures that limit how new lubricant types can be specified and that provide for a periodic review of lubricants in use. The approval process for new lubricants is linked to a set of existing generic specifications that have been created to address all of the equipment lubrication needs for the site. A receipt inspection program has also been implemented that provides for the quality assurance of delivered lubricants, whether packaged or in bulk. Nuclear power plants have also identified all equipment whose lubricants must be purchased Q-class, and have taken

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Consolidation—Optimizing the Use of Lubricant Products

To understand the need for consolidation present in most facilities, it is important to realize just how lubricants become specified for machinery. In most cases, plants are built around an optimal design for production of the desired product. This can mean that a given facility can have a wide range of components from many different suppliers and equipment manufacturers.

Manufacturers supply information about lubrication requirements with their equipment, but the specificity of those recommendations can vary greatly. Although some equipment manuals may include detailed instructions for specifying and selecting a suitable lubricant, others may be extremely brief and vague. Statements such as, “use a good grade of 30 weight mineral oil,” may be the sole direction in choosing the lubricant.

It is with this varied and uncoordinated set of guidelines that design and construction engineers select lubricants for plant equipment and stock quantities of the needed types in the facility. Even when efforts are made during this phase to minimize the number of products, changes to the plant over time can lead to additional lubricants being used in new or upgraded equipment. When performance problems are experienced with equipment, it is not uncommon for personnel to arrive at a conclusion that the current lubricant was the cause of failure and to specify a new product to be used in that application. Over time, these changes can lead to a growth in the number of products inventoried and used in plant equipment. Figure 2-1 shows the types of lubricants recommended by various suppliers and the variations that depend on plant-specific requirements.

Figure 2-1

Suppliers’ Recommendations

Business competitiveness and lean manufacturing techniques have, in recent years, led to the scrutiny of many of the costs of operating a facility. Not least among these are costs associated with maintaining an inventory of equipment, parts, and supplies for production machinery. This has inevitably led to the assessment of lubricant types and brands in a facility storeroom and a general acknowledgement of the need to reduce. But unlike discrete parts, which are assigned to

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specific equipment applications and can be addressed through a review of consumption

frequencies and just-in-time scheduling techniques, lubricants are more like a commodity. The uses and requirements are not as clearly defined and it takes more care to ensure that, when changing any of the products used in lubricating equipment, the proper product is specified for the equipment type, application, and environment.

From this starting point, significant gains can be made through a careful evaluation of the products available and the equipment needs. Even a general review of existing inventories can reveal potential savings merely through the identification of redundant products from different manufacturers. The chart in Figure 2-1 illustrates how a given plant may identify the distribution of lubricant types among a number of different suppliers when first glancing at an existing inventory. When a varied number of suppliers exist, there is probably the potential for making initial gains in consolidation, solely through the evaluation of product data sheets for the lubricants currently in use.

A carefully planned approach to lubricant consolidation can translate into big benefits. The keys to success are identifying all lubricants in use, using equipment lubricant requirements to create generic specifications, and adopting an environment of continuous improvement through the use of a current and updateable database. A multi-phase approach can allow a facility to realize real benefits after a minimal investment and allow sufficient support to be generated to sustain the effort. As the program grows, multiple facilities within a given company can be brought together to share data and leverage lubricant buying power. Using existing database resources of

commercial lubricant properties, equipment lubrication requirements, and lubricant equivalency tables will result in the lowest cost optimized lubrication program.

Determining the Consolidation Approach

When taking a first cut at consolidating lubricants, many companies find that the most economical way to proceed is to use the incentive of increased lubricant sales to entice a

lubricant supplier to provide the service for reduced cost, or possibly at no cost. Many suppliers, especially the larger companies, use this as a marketing tool to increase their sales. Larger end- users are offered free lubrication engineering service and this opportunity typically results in a consolidation of the existing slate of suppliers to a very few. Optimally, all existing products are cross-referenced to the assisting suppliers’ products. Some will go beyond the simple cross- reference and actually tour the facility to look at equipment to help make the determination. This type of consolidation can be very effective, especially for companies with a large existing inventory of lubricants from a large variety of suppliers. Additionally, the out-of-pocket costs can be close to zero, which is always well received by managers trying to get as much as they can out of their budget. Real costs, however, are higher and include the time invested by plant personnel to interface with the supplier lubrication engineer, the cost of replacing the existing lubricants with the new supplier’s products, and the costs associated with revising procedures, labels, and other documentation to indicate the new products. Another positive is that most

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However, with even the most reputable suppliers, there are trade-offs for this “free” service. For one, it is intrinsic in the fact that these companies are in the business of selling oil, that there may not be an incentive for them to help the plant reduce lubricant consumption. Indeed, the potential to sell more product is the very incentive that has them offering the service. Although the total number of suppliers will invariably be reduced, there is some question whether the total number of different products will be reduced. Again, there is little to drive the supplier to reduce the number of different products.

Another byproduct of using a supplier to perform the consolidation is the removal of product price reduction pressure in the absence of competition. Once a company has cleared out its storeroom, brought in the new product, changed out their machines, revised procedures and changed labels; it would be difficult to justify doing it all over again to respond to a different supplier who may offer similar products at a lower cost. The supplier’s knowledge of this may remove some of their incentive to keep product costs competitive.

In spite of the concerns listed here, lubricant supplier-provided consolidation services can still be a useful and viable option for companies to consider when approaching a lubricant consolidation project. A general rule of thumb may be that, if less than 50% of the total number of products is provided by any one supplier, then a lubricant consolidation proposal provided by a potential supplier can be a valuable first step in optimizing a facility’s lubrication. A party that holds no interest in the sale of products to the company generally provides an independent evaluation to the organization. This service appears to be more costly because the company now pays the full cost of the engineering service directly to the provider, instead of indirectly through the cost of the lubricants it purchases. There is an obvious and direct impact on the company’s budget and this can serve as a barrier to selecting this path. The exception to this is when plant staff or corporate personnel provide the service. In that case, the costs can be quite high but are hidden because the salaries of those individuals are being paid whether they are working on lubrication or some other function.

In an independent optimization, however, the entire approach to lubricant consolidation is changed. Instead of focusing on the existing products in use and finding equivalents, the focus is on optimizing the lubricant inventory based on equipment design, production, and environmental needs. This method is a three-phase process to identify redundant products, define equipment requirements, and develop lubrication specifications.

Phase I—Brand Consolidation

Somewhat like the efforts undertaken by lubricant suppliers performing consolidation, the first step of independent optimization is an inspection of existing lubricants and a comparison of product design and application. Although some of this consolidation can be done by inspection based on personal knowledge of the products, the majority of the work is accomplished by obtaining the technical data sheets for all of the products on the list. This is not as easy as it sounds. Some manufacturers openly share the physical/chemical property and performance data for their products, but others closely guard this information.

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Many suppliers include these data on their web sites or graciously fax or email the data sheets upon request. Others may present more of a problem. As a customer, it is usually possible to get this information from the manufacturer without too many problems. There are some suppliers, however, who may refuse to release this information. It is necessary at that point to determine if the product is sufficiently unique or of such superior performance to warrant its continued use, because it will be impossible to include it in the consolidation effort.

Figure 2-2 shows a typical table used to compile a list of currently used lubricants, including identification of each product by application and type. Designations include Extreme Pressure (EP) Gear Oil, Turbine Oil, R&O Oil, Worm Gear Oil, and Anti-Wear (AW) Grease. Within the greases, thickener type is also used to identify the product, because some applications require specific thickener types. Once this has been done, products are grouped together by type to indicate where there may be redundant product types from different manufacturers. The total number of groupings is the total number of different lubricant types currently in use. Many times this first step, although requiring minimal work, can identify significant opportunity for

elimination of redundant products. As much as 40% of a given plant’s inventory may be eliminated in this manner.

Figure 2-2

Typical Lubricant Table

A table similar to that shown in Figure 2-3 can be developed to identify the functional properties of the lubricants and the overlaps. Once the lubricants have been grouped together, the decision to reduce certain products can be based on operating experience with the products, ease of storage or purchase, or, most likely, unit cost. Once the surviving product is identified in each group, the others can be phased out by not restocking the redundant products. It is important to confirm compatibility between manufacturers within a group. If an incompatibility exists,

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Figure 2-3

Lubricant Identification

Phase II—Technical Consolidation

Although the brand consolidation can be very effective, it doesn’t ensure that the products being used presently are right for the job. Somewhere along the line, an improper product may have been specified or equipment may have been modified without addressing the changed

requirements of the lubricant. To ensure that lubrication is optimized (that is, that all equipment has the proper type and amount of lubricant specified), it is necessary to go further. The next step of the process expands the investigation to the equipment and component level. By reviewing the population of lubricated equipment in the facility and identifying the make and model, vendor specifications can be obtained. It is important to remember that lubrication is a fundamental design property and the machine designer makes certain assumptions and design decisions based on the lubricant to be used. It is, therefore, important to begin any technical evaluation by

looking at the recommendations made by the equipment designer, captured in the vendor manual for the equipment.

Assembling the list of all lubricated equipment in the facility is the first step. This is often accomplished by using existing databases, such as the Computerized Maintenance Management System (CMMS), the lubrication route, or a predictive maintenance database. Using a versatile program like Access® or Excel® allows flexibility in the design and output of the database. Figures 2-4, 2-5, and 2-6 show typical screens from a database developed in Access. After converting the raw data to the database format, fields are established for equipment ID, reservoir ID (for multiple sump equipment), manufacturer, model number, and current lubricant. For equipment that is assembled from separate manufacturer’s components (such as a Roots blower driven by a Siemens motor) and provided with separate vendor manuals, it is necessary to treat them as separate database entries.

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Figure 2-4

Screen from Access Database

Figure 2-5

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Figure 2-6

Screen from Access Database

The next step usually takes place in the plant library or at another location where most of the vendor manuals can be found. Not all facilities have done a good job at cataloging equipment vendor manuals, so some extra work is usually required in researching the manufacturers to obtain the lubrication design data. When using outside service providers, there may be some advantages at this stage because they may already have a catalog of equipment lubrication design data from previous consolidation efforts. Other fields in the database are used to identify the key physical/chemical properties and performance characteristics. Figure 2-3 showed how the lubricants can be characterized by these properties. A similar table is used to identify the equipment requirements. A project can be brought to completion in this step by using these tables to find the overlap between available products and equipment requirements. The most significant gains are made, however, when proceeding to the final step and creating the blueprint for lubricant optimization: generic specifications.

Phase III—Generic Specifications

Once the lubrication requirements have been determined for the facility, that information can be reduced to generic purchase specifications. This optimized configuration can be used to meet the lubrication requirements for the facility, and then these specifications can be taken to the

potential lubricant suppliers to obtain the benefits of leveraged purchasing power. This allows the plant to obtain the best deal on those products whose characteristics and performance meet or exceed the minimum standards outlined in the specifications. This also provides for the

flexibility of using multiple suppliers or changing a particular supplier from time to time as product prices, quality, or availability vary. Of course, to ensure the compatibility of products from different suppliers, care must be taken when changing suppliers and products.

A list of lubricant application types can be developed for the facility using the tables or databases that have been constructed for equipment lubricant requirements, operating conditions, and

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environmental conditions. Examples include EP Gear Oil, Turbine Oil, Anti-Wear Hydraulic Oil, Worm Gear Oil, and Hi-Temp Grease. Within each of these application types, the viscosity grades necessary to address machine requirements can be identified. The process generally proceeds by choosing some obvious category classifications within the population of identified required product types, and then by creating generic specifications for those types. Plant equipment is identified in the database as belonging to a generic specification. As generic specifications are assigned to the database, those machines are filtered out of the population requiring specifications. Before creating new specifications, the existing set of specifications is reviewed to see if any of them meet the requirements of the next machine. In those cases where the difference in requirements is minor, consideration is given to expanding an existing

specification to include this next piece of equipment, or possibly going to a multi-purpose

lubricant or taking advantage of the properties of some superior performance product types (such as synthetics).

The goal is to determine the minimum number of unique lube application types that will address all equipment needs within the plant. The specification must be sufficiently generic to be able to receive competitive bids for products that will meet the specification. In efforts to minimize the