A Bird's eye-view of the services offered by Global Technical Services
- Conducting intensive awareness programs on Lubrication and Fuel Conservation.
- Conducting detailed diagnostic study of the client’s plants, to ascertain the prevailing indenting, receipt, storage, handling, dispensing, condition monitoring, reclaiming and re-using and/or disposal of used lubricants and recommending adoption of scientific practices from ‘cradle to grave’.
- Providing training for operating and maintenance to staff of correct lubrication practices, and effective utilization of lubricants and fuels.
- Providing training for stores personnel in correct inventory management, storage, handling and dispensing of lubricants
- Establish systems – e.g. Color coding, records keeping, from receipt of new Lubricants to rejection and disposal of used oils from the plant use of Dust-free Containers, etc.
- Establishing in-house condition monitoring systems and arriving at rejection limits for different lubricants.
- Developing in-house used oil reclamation systems and recommending the use of such reclaimed oils for original / top up / alternative non critical applications based on the laboratory tests.
- Critical review of grades in use to examine the possibility of introducing oils of higher performance levels to extend life of oil / drain period, while estimating the cost of an oil change, and many of the hidden costs which are more than the cost of the product, are lost sight of as illustrated below
Reproduced below in an interesting item on the real cost of an oil change.
An article published in lubricants word speaks about the true cost of an oil change. It is amazing to observe at how much money directly and indirectly goes into what seems to be a simple procedure. Oil changes include six basic costs :
- The cost of new oil
- Cost of removing old oil – (without evaluating its rejection limits)
- Labor’s costs incurred in changing the oil
- Administrative cost towards procurement of Lubricants
- Assisting management in vendor evaluation as technical basis
- Cost of machine down time
These are obvious direct costs that should be included in all cost analysis for an oil change. The several hidden costs that must be considered while analyzing the cost of oil change
- The total time it takes to change the oil.
- The total time the machine is not in operation.
- All the paper work and pursuits involved plus tracking, verifying and inspection costs.
- Cost of labor should include the human resources that needed to support the labor. This has been estimated at 1.5 times the hourly rate for the total number of hours needed to change the oil.
- Indirect activities such as a wait time, travel time and tool and material collection, which can all cost 2 – 8 times the normal “wrench” time.
- Supervisory tasks (work order and monitoring) add another 20% to labour costs.
- Cost of rags, gloves, filters, sampling material.
- New oil overheads, inventory and storage areas. Purchasing department activities for purchase oil bids, credits, checks, payments etc.
The end of major oil change, with all are often overlooked overhead costs, a change (at $ 5 per gallon) with two hours of labor and a purchase order to receive would cost $ 988.70.
Some Case Studies
