Getting Real About Hidden Operating Costs
It seems like every time I turn on the TV, open a newspaper, log onto the internet, or switch on the radio I hear more bad news about the economy. There is no way around it: we are living in difficult times. Personally and professionally it has become absolutely crucial to conserve resources and minimize costs. For individuals this might mean cutting out obviously unnecessary things like cable television, eating out, and vacations but for companies it can be harder to identify hidden and avoidable costs. Recognizing and improving on these areas is the first step that any business, whether large or small, should take because it is the cheapest, easiest, and fastest way to cut overhead.
In the metalworking industry optimizing machine and operator productivity is now more important than ever before. A simple way to make sure that you are minimizing costs while maximizing profits is with your cutting fluid but currently most companies lose between 5 and 20% of their productivity to mismanagement of their cutting fluid.
The numbers:
$130.00
$6,600.00
$29,400.00
$31,200.00
$60,600.00
Machine downtime costs, on average, $130 an hour and frequent cutting fluid changeovers.
Tools are expensive: a band-saw blade is between $30 and $60, broaches run around $100, end mills cost up to $150, drills between $30 and $100.
A gallon of cutting fluid will run you $0.50 - $2.00 depending on the fluid and concentration; disposing of that same gallon of used cutting fluid costs between $0.50 and $2.50 depending on state.
To fill and empty out a 100 gallon sump every two months costs roughly $660.00 – $2,940.00 just for one sump, if you have ten machines you are looking at $6,600.00 to $29,400.00 for cutting fluid and disposal alone.
Now take into account the $15,600.00 to $31,200.00 it will cost to have 10 machines down for two to four hours every two months and the cost of broken tools and wasted parts, which can easily be in the tens of thousands of dollars.
To me those are some pretty scary figures. Time and time again it has been shown that by simply using the right coolant for your operation, running at the correct concentration, removing tramp oil every week, and dosing once a month with an antimicrobial additive the amount of money that can be saved is staggering.
Many coolant manufacturers are happy to help you assess your current situation and offer cost saving advice and recommendations. Talk to your coolant representative and see what changes you can make to start seeing big savings.
Check out the Daily Coolant Checklist and 10 Point Coolant Inspection in the Help section for ideas on maintaining your coolant. For help from a metalworking expert from Rustlick email info@rocolnorthamerica.com.
You are visiting the blog of ITW ROCOL North America, manufacturer of Accu-Lube, Rustlick, SafeTap, and Daraclean. For more information please visit their website at www.rocolnorthamerica.com.






