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Intelligent Lubrication Solutions™

Intelligent Lubrication Solutions™

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How to Outsource Your Lubrication Management to Get Results

Posted by Matt Mohelnitzky on Oct 27, 2015 8:30:00 AM

outsource4resultsBack in September, we wrote a 3-part Lubrication Cost-Savings Series documenting the benefits and savings companies can experience by implementing an optimized lubrication management program (LMP). We also used this opportunity to announce our new joint venture with AMRRI: Precision Lubrication Services, Inc. In this post, we’ll help you find the right third-party contractor for your specific lubrication needs, and explain how PLSI can help you save money and achieve your desired results.

With more companies realizing the importance of lubrication management and proper preventative maintenance procedures, many have started to outsource these responsibilities to third-party maintenance contractors. They think that this will allow them to maintain their lubrication standards while focusing their own labor elsewhere, but in reality, many third-party service providers aren’t specialists when it comes to lubrication. In fact, they likely get most of their information from lubricant providers like U.S. Lubricants! Outsourcing lubrication management services typically provides a lower apparent operational and labor cost, but in order for these savings to be sustainable, only a skilled contractor will know how to maximize the efficiency and longevity of your equipment.

What are contract lubrication services? 

Contract lubrication services are still relatively new to the U.S., but are demonstrating success for manufacturers in Brazil, Australia, and other countries. It can be defined as the practice of hiring a third-party to conduct lubrication management services in your plant(s), and depending on the contractor’s a la carte services, this may include lubricant selection, storage and handling, application and dispensation procedures, and PM scheduling.

How can they increase machine reliability? 

When it comes to managing an LMP in-house, not all organizations have the interest, knowledge, and/or resources to build these programs. Even if they do, its common for companies to spend a lot of time and money trying to figure out exactly how things should be, only to never end up getting it right. Outsourcing your lubrication services can provide an immediate solution to your machine reliability challenges by providing a full-service, turnkey solution that is embedded in your own plant. That is, as long your hired contractor knows what they’re doing. Technical expertise is key to managing a successful LMP, because if you don’t know the necessary nuances from the start, you’ll only create more maintenance problems later on. By relying on lubrication specialists to implement your LMP, however, you can greatly reduce your chances of suffering machine breakdowns—which significantly lowers maintenance costs and extends the longevity of your machine’s components.

How do the benefits of outsourcing compare to the cost?

We know what you’re thinking: “is it really worth paying for this?” Well, to put it simply: yes it is. In fact, we even have the calculations to prove it. A good contract lubrication program will produce documentable savings by helping you do these 3 things: 

  • Improve Plant Performance and Efficiency — Taking a preventative maintenance approach to your lubrication will help you prevent machine breakdowns and downtime, which helps improve reliability, uptime, and productivity
  • Reduce Maintenance and Component Replacement Expenses — Improper lubrication leads to increased wear on your machines’ components. By implementing an optimized LMP, organizations can expect to reduce spending on overtime labor and component replacement by 10% or more
  • Reduce Labor and Supervision Costs — Some people choose to outsource so they can focus on their core competencies. By using a third-party service for your lubrication maintenance, you can keep your workers focused on higher-prioritized tasks, and let contractors spend time servicing your machinery

With PLSI, our contract lubrication program provides experienced, highly trained personnel to manage and carry out an LMP, on a daily basis, that will deliver against your plant’s unique requirements. It’s a custom designed solution that takes into account your exact machinery, operating environment and demands, machine reliability, and budget requirements, as our carefully developed routines are characterized by precision in every aspect. All PLSI technicians hold International Council for Machinery Lubrication (ICML) certifications of MLT I and MLT II. We promise you that the right lubricant will be delivered at the right time, in the right place, in the right quantity, and with the right attitude. Over time, these practices will pay off by reducing the maintenance spending on your machinery—helping some companies save nearly $800,000 over a 5-year span! 

Picking the Proper Provider is Key to Your Success

In order for an LMP to offer real, long-term savings, lubrication excellence must be one of the third party’s core competencies. Similarly, a great technician in a poor program is destined to fail. Make sure the third party you’re outsourcing to has the ability to help improve your overall program, AND the skilled technicians to deliver services through detailed job plans and procedures. This may cost more than strictly outsourcing the labor, but it is still typically less expensive than adding overhead to your business that could be deployed elsewhere.

For more information about PLSI’s multi-pronged approach to addressing your lubrication needs, or to learn more about our expert contract lubrication services, please contact Tony Springer at TSpringer@uslube.com or by phone at (800) 490-4900 ext. 8823.

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Topics: Lubrication Management Program