Last April 2016¸ in this same blog space, we made a presentation regarding how Lubrication Processes in connection with the implementation of ISO 4406, influence the mitigation of costs inside industrial organizations.
Today, we want to address another point of interest for Financial Managers. Usually, Financial Managers are not aware how many downtime hours are the result of poor lubrication practices.
This is mainly due, to the existing divorce that we still find in most industrial organizations throughout the world, between the Financial Departments and Maintenance and Production Departments.
KPI´s listed in the Production and Maintenance Departments are almost totally oblivious to Financial Departments. Downtime production hours are not classified by Financial Departments in order to arrange better treatment of Failure Modes that show up in daily industrial operations.
Maintenance Departments have almost no access to monetary costs of their departments and the most common relationship between Financial and Maintenance consists on demanding lower operational expenditures on the part of Financial Departments.
ISO 55000 insists that in order to have a better productivity, efficiency and net margins, all departments of the industrial organizations must work together, having KPI´s that are the product of consensus accross Financial, Quality, SHER, Acquisitions, Logistics and Warehouse, Human Resources, Maintenance and Production Departments.
All departments should be considered as Production Centers, not only as Cost Centers by Financial Departments.
However, the blame is not in these not connected departments activities and objectives. It is the main responsibility of Industrial Leadership to LEAD all departments to achieve better effectiveness of investments made by stockholders, and to accomplish these main aims, Industrial Leadership must LEAD all departments endeavors.
As we have mentioned in several articles of this blog, one of the principal industrial aspects of production impairment, is the lack of accountability of failures expenditures due to lack of Lubrication Procedures observed across the organization.
Bannister calculates that not less than 50% of all Maintenance Expenditures (taking into account downtime hours and lost production) is due to poor practices of Lubrication Procedures.
In most cases, there are no Written Standard Operating Procedures concerning these following aspects of Lubrication Duties (to mention just a few), like:
I – Particulate Content of Lubricating Oil
II – Regular Measurements of Viscosity
III – Regular Measurement of Water content
IV – Prefiltering and Filtering of Lubricating Oils
V – How to open a 20-liter-pail of Lubricating Oil
VI – How to open a 21o-liter-drum of Lubricating Oil
VII – How to load a cartridge in a Grease Gun
VIII – How to clean an Oil Spill inside the Lubricating Room
IX – How to take a sample of Lubricating Oil
These written procedures are not always present in many industries, and people from Acquisition Departments have never been trained on how to make a selection of a Lubricating Oil, nor, they even have a written Standard Operating Procedure to make Lubricating Oil Selection.
Personnel from Warehouse, have not often been trained on how to label the lubricants they receive from suppliers, and Quality Assurance are aware on the Water and/or Particulate content of the Lubricating Oils they receive.
Production Personnel Department, more often than not, have never received a proper training, even less, a Certification on ISO 18436-4
Quality System Inspectors usually do not have KPI´s related to Lubrication Best Practices in the plant.
All these lacks establish a shameful lost of more than 50% of Maintenance Costs due to Poor Lubrication Practices.