G lobally, the demand for power is increasing. The consequence for those in the business of power generation, transmission and distribution is a need to achieve greater productivity and reliability in a challenging climate of stricter environmental targets, severe penalties for supply interruptions, tighter budgets and tougher operating conditions.
Most companies are already well aware reducing total cost of ownership (TCO) over the lifetime of machinery is key to extracting the best possible value from the investment. However, an international survey of power companies commissioned by Shell Lubricants reveals businesses are underestimating the potential cost savings and productivity gains from effective equipment lubrication.
Only 32 percent of companies believe effective lubrication can help improve equipment availability, and 49 percent stated they wouldnât expect higher-quality lubricants to help reduce maintenance costs.
In fact, optimizing lubrication can have a significant impact on extending component life, reducing maintenance costs and limiting unplanned downtime. It can contribute to savings far higher than the price of the lubricant itself. Seizing the cost-saving opportunity depends on addressing two equally important elements:
1. Selecting the right lubricant or grease.
2. Effective lubrication management, including the right storage, handling, place, time, amount, monitoring and people.
Whether itâs a turbine, transformer or stationary engine, every piece of machinery made by different OEMs has its own specific lubricant or grease requirements. OEMs define the minimum requirements for lubricants, but for critical equipment lubricants that exceed, rather than simply meet, these standards can prove a worthwhile investment.
Selecting a less effective lubricant rarely results in immediate equipment failure but can lead to increased maintenance expenses over time, disruptions from unplanned downtime and even heavy financial penalties. These mounting costs can be far greater than the savings from selecting a lower-price lubricant.
In contrast, a high-quality lubricant that keeps equipment clean of deposits, retains good miscibility (the ability to mix compatibly with other liquids), and effectively protects against wear and corrosion can help extend equipment life, reduce frequency of breakdown and increase equipment availability. This could significantly decrease spending on spare parts and maintenance.
However, even the best product cannot perform effectively if it does not reach the right surfaces at the right time in the right amount without being contaminated or degraded. Thatâs why effective lubrication management is vital to unlocking potential TCO savings. It helps deliver value from improved productivity and reductions in lubricant consumption, maintenance and operating costs.
Despite this, our survey shows only 43 percent of companies have all the correct procedures in place to manage lubricants effectively, and 59 percent think they donât conduct staff training on lubricants as regularly as they should.
With a gap in staff expertise and only 25 percent of businesses making use of regular visits from their lubricant supplierâs technical staff, most companies are not well equipped to take action. External support can play a valuable role in upgrading lubrication to achieve cost savings. Technical experts should work with customers to help coach their staff in effective lubrication management techniques and conduct site surveys to help identify areas for improvement in lubrication. In doing so, the technical experts can help power companies achieve millions of dollars in savings.
In general, the cost of lubricants accounts for less than 5 percent of a power generation companyâs total operational expenditure. Lubrication can deliver significant business value and impact up to 20-30 percent of total ma intenance spend through improved system efficiency, reliable equipment protection, and longer oil and equipment life.
For more information, visit www.Shell.com/power.
