As many businesses operating in the industrial space have come to realize, the price of oil is never the per gallon price. There is so much more that goes into making that oil function in a way that contributes to the processes of any business. The disposal costs and labor expenses, for example, are just a few of the ways businesses will be taxed for the purpose of the oil. Attempting to reduce the amount of money these will cost your business can be troublesome, but this post will provide a breakdown of the ways to avoid spending too much on the hidden costs of oil.
One of the first steps in reducing the hidden costs in any operation is ensuring that your organization’s equipment is performing at peak levels. This will require optimizing the maintenance required for that equipment. For example, proper lubrication and completing regular oil changes is a necessary input to ensure equipment remains producing its output efficiently. Though it’s worth mentioning that finding ways to keep all cogs moving in the right direction with regularly scheduled maintenance can be challenging, it will reduce downtime in the long run and improve efficiency.
Without the proper maintenance schedule, your business is at risk of paying additional costs in the form of unnecessary oil changes. Though it may seem beneficial, organizations incur these costs for no reason when they hope to resolve a much deeper rooted issue in the machine through an oil change. When they realize it had no impact at all, it becomes much clearer how valuable resources and time were wasted.
Additional costs are bound to be incurred by your business if any machine suffers any damage. These costs are often extremely expensive for organizations to resolve. Some damages are related to over or under-filling the sump or reservoir, introducing contaminated or incorrect product or even cross threading a drain plug. The true hidden costs of this damage come in the form of additional maintenance and subsequent downtime. In addition, these costs can also rack up administrative purchasing costs, storage, handling and testing costs for an organization.
This damage and inefficiency can also lead to equipment failure in the worst cases. This is why it’s so important for organizations to be prepared for these instances. Most equipment failure can be attributed to bearing malfunctions, nearly half of all reported failure in fact. The replacements necessary to prevent this failure are expensive and can be proven useless if a machine is non-operational.
While the information shared within this post serves as a great foundation for reducing your organization’s risks of hidden costs in your industrial operation, there’s always more to be done to remain prepared. To learn more about the preventive solutions available to businesses, such as various machinery upgrades and how these can be introduced into your operations, be sure to continue reading on to the infographic featured alongside this post. Courtesy of Isomag.