UNLOCKING THEHIDDEN POTENTIAL OF MANUFACTURINGHow prioritising the role of lubricants can support your business

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CONTENTS

1. INTRODUCTION 3

2. PAVING THE WAY TO COST SAVINGS WITH THE RIGHT APPROACH TO LUBRICATION 4

3. THE COST SAVING POWER OF LUBRICANTS 5

4. UNLOCKING THE COST SAVING OPPORTUNITY 5

5. SELECTING HIGH QUALITY LUBRICANTS 6

6. EFFECTIVE LUBRICATION MANAGEMENT THROUGH TRAINING 6

7. TAPPING INTO INDUSTRY EXPERTISE 7

8. HOW MANUFACTURERS CAN UTILISE SUPPLIERS’ EXPERTISE 7

9. THE RIGHT APPROACH TO LUBRICANTS CAN SAVE YOUR BUSINESS MONEY 8

10. THE CHOOSE, USE AND IMPROVE PROCESS 9

11. SHELL LUBRICANTS’ SIX STEPS TO GOOD LUBRICATION MANAGEMENT 10

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INTRODUCTIONTowards the end of 2017, the UK manufacturing climate peaked and factories saw orders jump to the highest level in nearly 30 years1. Manufacturers were driven to accelerate output and reduce downtime, while meeting demands and maintaining product quality.

However, this ‘time in the sun’ may prove to be short-lived, as uncertainty continues to linger. Brexit negotiations coupled with the rise of protectionist governments around the world may hamper growth.

As such, it remains important for manufacturing companies to find ways to increase productivity and profitability while maximising savings.

Many are already aware that monitoring Total Cost of Ownership (TCO) is important when it comes to extracting the best possible value from their equipment assets.

However, many often underestimate the importance of lubrication, even though the cost of lubricants accounts for around 1% to 2% of a manufacturing company’s total maintenance expenditure.

Building on the global Shell Lubricants 2017 report titled ‘Unlocking The Hidden Potential Of Manufacturing’, this paper will highlight one of three areas that UK manufacturers should address with respect to lubricants: the prioritisation of lubrication in manufacturing. Other papers in this series will explore leveraging new lubricant technologies to boost productivity and how to educate and upskill employees on TCO.

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65%Two-thirds (65%) say that lubricant management can play an important role in providing their company with increased productivity and efficiency

Understanding how lubricants contribute to TCO is the first step to realising potential savings. There are two key elements to seizing this opportunity; the first is selecting the right lubricant, and the second is effective lubrication management.

PAVING THE WAY TO COST SAVINGS WITH THE RIGHT APPROACH TO LUBRICATION Evolving technology, changing consumer demands and tightened regulations are just a few of the forces behind the ongoing transformation of the manufacturing market. To stay competitive, manufacturing companies are striving to increase productivity and reduce downtime in order to meet deadlines while still maintaining product quality.

Manufacturing companies already apply TCO evaluations, but often underestimate the importance of lubrication, even though the cost of lubricants accounts for around 1% to 2%4 of a manufacturing company’s total maintenance expenditure. In the UK, while two-thirds (65%) of UK companies5 believe in the importance of lubrication, only 32% report taking effective measures in the end-to-end lubrication process. Shell Lubricants technical experts have helped manufacturing companies achieve savings that equal their total lubricant spend, and further impact up to 30% of maintenance budget by adopting the right approach to lubrication6. Savings derive primarily from lower maintenance costs, reduced equipment downtime and productivity improvements.

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THE COST SAVING POWER OF LUBRICANTSWhen evaluating the effect of lubricants on TCO, Shell Lubricants considers the end-to-end impact on mainte-nance budget and processes, but also any costs related to lost production during equipment downtime.

Optimising lubrication can have a significant impact on component life, maintenance costs, and unplanned downtime so can contribute to cost savings far higher than the price of the lubricant itself.

UNLOCKING THE COST SAVING OPPORTUNITY Each piece of manufacturing equipment made by different original equipment manufacturers (OEMs) has its specific lubrication requirements. OEMs define the minimum requirements from a lubricant or grease, but not all products that meet these standards deliver the same level of performance.

81% of UK manufacturers state that their company has suffered unplanned downtime due to a lack of proper lubricant management

COMPONENTS OF TOTAL COST OF OWNERSHIP

Product costs 1. Lubricants

Maintenance costs 2. Leaks 3. Handling and dispensing 4. Oil analysis 5. Disposal

Business costs 6. Inventory 7. Administration and management 8. TrainingTo

tal I

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of Lu

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ost

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Increased maintenance costs

Downtime and loss of production

Maintenance & Business Processes

Lubricants & Greases

Decreased component life

Total cost of ownership

Two-thirds (63%) of UK manufacturers believe that more than half of the breakdowns experienced annually are avoidable, with 67% of them stating that lubricant related issues played a key role in the breakdown. 81% surveyed admit that lubrication errors caused unplanned downtime.

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SELECTING HIGH QUALITY LUBRICANTSA high-quality lubricant or grease that keeps equipment clean of deposits and effectively protects against wear and corrosion can help extend equipment life, reduce frequency of breakdowns and increase the machine’s availability. This could significantly reduce the spend on spare parts and maintenance.

EFFECTIVE LUBRICATION MANAGEMENT THROUGH TRAINING However, even the best product cannot perform effectively if not applied and managed correctly. Effective lubrication management is vital to unlock potential TCO savings. It helps deliver value from improved productivity and reductions in lubricant consumption, maintenance and operation cost.

Effective training is essential in the management of lubrication as it relates to issues such as contamination control as well as proper handling and storage. 68% of UK respondents feel their company does not conduct training on lubricant management as regularly as it should, which is a direct result of not enough businesses viewing lubrication management training as a priority (63%)5.

TOP SIX TRAINING NEEDS

75% identifying the lubricant needs of equipment

73% lubricant analysis

70% lubricant selection

57% lubricant spills and contamination

73% developing lubricant management system and programs

66% lubricant storage

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Manufacturing companies recognise that suppliers can offer support in improving lubrication management, which can help lead to a reduction in unplanned downtime due to avoidable breakdowns.

While simple fixes may not cost much, the revenue losses due to equipment failures can run into the millions of pounds when factoring in maintenance costs, replacement parts, and lost revenue from equipment downtime. There can also be longer term impacts if failures limit a manufacturer’s ability to meet customer commitments.

This is why it is important for companies to think about maximising system efficiency through holistic, end-to-end lubrication management.

TAPPING INTO INDUSTRY EXPERTISESupport from suppliers on correct lubricant application was revealed to be an underutilised resource. Tapping into the expertise of external suppliers can help companies supplement their own resources to help tackle many equipment maintenance issues.

Shell Lubricants, for example, offers support to customers through practical staff coaching on lubricant management techniques, as well as on-site surveys to help customers identify areas for improvement in equipment lubrication.

While manufacturing companies recognise that suppliers could play a role in helping lower TCO, the value of this external contribution is clearly underrated, as 73% state that they would be unwilling to invest budget in utilising supplier lubricant management expertise because they potentially believe that it is too time consuming to do so (75%)5.

Shell Lubricants has one of the world’s largest teams of technical lubricants experts available to support manufacturing companies in better understanding equipment and lubrication management, resulting from years of working for a manufacturing company or OEM. Tapping into this source of knowledge can help businesses improve equipment productivity and reduce maintenance costs.

HOW MANUFACTURERS CAN UTILISE SUPPLIERS’ EXPERTISE

73% agree they could utilise supplier expertise to provide training / coaching on lubricant management

66%agree they could utilise supplier expertise to provide information on how best to store and handle lubricants

62%agree they could utilise supplier expertise to provide analysis of their equipment, allowing them to ensure the right lubricants are applied to the right equipment

58%agree they could utilise supplier expertise to provide expert analysis of their lubricant management procedures

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THE RIGHT APPROACH TO LUBRICANTS CAN SAVE YOUR BUSINESS MONEY – BY DR. CAMERON WATSON, GENERAL MANAGER, LUBRICANTS TECHNICAL SERVICES, SHELL LUBRICANTS TECHNOLOGY The manufacturing industry sits in a world filled with complexities, challenges and unpredictable times. Although the sector has seen an upturn over the years, today’s political and economic uncertainties have threatened its growth.

To stay competitive, manufacturing companies look to innovative programmes to increase productivity gains, efficiency and performance.

At Shell Lubricants, we believe there is potential for lubrication to deliver significant business value by helping reduce costs and improving equipment productivity. Customers not only have access to our lubricants and greases, but also the experts and services to support in their correct application.

SHORT-TERM SAVINGS CAN PROVE COSTLY OVER TIME

“By failing to take into account the big picture and the long-term impact of decisions made today, a cost reduction that can seem like a good business choice right now, can end up costing companies more in the long run.”

Dr. Cameron Watson, General Manager, Lubricants Technical Services, Shell Lubricants Technology

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Shell Lubricants technical experts have helped manufacturing companies achieve savings that equal their total lubricants spend and can impact up to 30% of maintenance budget, by adopting the right approach to lubrication.

Such savings can be achieved through correct lubricant selection and application, and by regularly working with your oil supplier to audit, review and improve your operations, a helpful and collaborative cyclical process we call “Choose, Use and Improve”.

CHOOSE: Understand, select and recommend the right product

When a supplier has detailed knowledge of a customer’s business, it is able to recommend products and services to meet specific needs.

Shell Lubricants helps customers choose the best lubricant solution for their need through its global network of 260 lubricant field specialists and supporting virtual services. We make nearly 10 million recommendations a year through services such as:

– Shell LubeMatch which provides instant online lubricant recommendations for a wide variety of equipment

– Shell LubeAdvisor gives customers access to self-help tools, access to skilled technical helpdesk call centres and field-based technical advisors

– Our online Virtual Assistant, which allows customers access to over 100,000 datasheets relating to products, applications and OEM specifications. This tiered support means customers can access the best, customised advice at any given time

– LubeChat – launched recently in India and China , this chatbot tool enables customers to quickly find answers to their lubrication queries for a taster go to www.shell.in/business-customers/lubricants-for-business/shell-lubechat.html

IMPROVE

CHOOSE USE

THE CHOOSE, USE AND IMPROVE PROCESS

USE:

Effective monitoring and analysis

By leveraging new technologies and data, Shell’s lubrication services can help reduce TCO and deliver business value for manufacturing companies by providing advice to reduce downtime and allow for preventive maintenance.

Shell LubeAnalyst, for example, is an on-demand oil condition monitoring service that can provide early warning of equipment wear or lubricant degradation, enabling the lubricant to be changed before issues escalate and thereby helping reduce the frequency, time and cost of maintenance. Available in 95 countries and 28 languages, it has more than 60,000 users worldwide, and analyses over 750,000 samples a year. Shell LubeAnalyst allows customers to monitor equipment without interrupting operations, and provides guidance on interpretation of results.

IMPROVE: Ongoing lubrication management

Regularly reviewing data from oil analysis and equipment monitoring can give access to valuable technical information that delivers real business value, by allowing maintenance staff to identify machine wear long before it results in a need for costly repairs.

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SHELL LUBRICANTS’ SIX STEPS TO GOOD LUBRICATION MANAGEMENT

– Right storage and handling – the lubricant must be stored in the right conditions and handled correctly to avoid contamination and preserve its key characteristics

– Right place – for the oil or grease to reach the right surface it must be properly applied to the equipment

– Right time – the correct frequency of oil change or re-greasing ensures the lubricant reaches the surface at the right time. Delays can result in accelerated wear

– Right amount – the correct volume of lubricant or grease applied and topped up to protect moving parts effectively

– Right monitoring – regular sampling and analysis to ensure the lubricant remains fit for purpose and check for early indications of equipment wear. Inspections also ensure the consistent application of the first four steps. For a complete analysis service, Shell offers LubeAnalyst

– Right people – the competence of those who lubricate equipment can greatly affect its positive impact, particularly when it comes to ensuring all of the above happens

1 www.thisismoney.co.uk/money/news/article-5104203/Manufacturers-strongest-orders-30-years.html

2 Total Cost of Ownership (TCO) is defined by Shell Lubricants as the total amount spent on industrial equipment, including cost of acquisition and operation over its entire working life, including costs of lost production during equipment downtime

3 This study into lubrication procedures in the manufacturing industry was commissioned by Shell Lubricants and conducted by research firm Edelman Intelligence. It polled 493 manufacturing industry staff who purchase, influence the purchase or use lubricants / greases as part of their job across 8 countries (Brazil, Canada, China, Germany, India, Russia, UK, US)

4 Potential impact calculated based on Shell Lubricants site surveys with customers

5 This survey, commissioned by Shell Lubricants and conducted by research firm Edelman Intelligence, is based on 100 interviews in the UK Manufacturing sector with Senior Engineers, Operations Directors and Procurement Managers from UK manufacturing companies in Decem-ber 2016

6 Potential impact calculated based on Shell Lubricants site surveys with customers