ROI – Return on Investment

Return on Investment (ROI) is a measure of the gain (preferably) or loss generated relative to the amount of money that was invested.  ROI is typically expressed as a percentage and is generally used for personal financial decisions, examining the profitability of a company, or comparing different investments.  It can also be used to evaluate a project or process improvement to decide whether spending money on a project makes sense.  The formula is shown below-

ROI

  • A negative ROI says the project would result in an overall loss of money
  • An ROI at zero is neither a loss or gain scenario
  • A positive ROI is a beneficial result, and the larger the value the greater the gain

Gain from investment could include many factors, such as energy savings, reduced scrap savings, cost per part due to increased throughput savings, and many more.  It is important to analyze the full impact and to truly understand all of the savings that can be realized.

Cost of investment also could have many factors, including the capital cost, installation costs, downtime cost for installation, and others.  The same care should be taken to fully capture the cost of the investment.

Example – installing a Super Air Nozzles (14 SCFM compressed air consumption) in place of 1/4″ open pipe (33 SCFM of air consumption consumption) .  Using the Cost Savings Calculator on the EXAIR website, model 1100 nozzle will save $1,710 in energy costs. The model 1100 nozzle costs $37, assuming a $5 compression fitting and $50 in labor to install, the result is a Cost of Investment of $92.00. The ROI calculation for Year 1 is-

ROI2

ROI = 1,759% – a very large and positive value.  Payback time is only 13 working days.

Armed with the knowledge of a high ROI, it should be easier to get projects approved and funded.  Not proceeding with the project costs more than implementing it.

If you have questions regarding ROI and need help in determining the gain and cost from invest values for a project that includes an EXAIR Intelligent Compressed Air® Product, feel free to contact EXAIR and myself or one of our Application Engineers can help you determine the best solution.

Brian Bergmann
Application Engineer

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Many Ways to $ave on Compressed Air Costs

Using compressed air in the plant is common for many types of processes.  Typical uses are drying, cooling, cleaning and conveying. Compressed air does have a cost to consider, and there are many ways to keep the usage and the costs as low as possible.  The first step is to use an EXAIR Intelligent Compressed Air Product, which has been engineered to provide the most performance while using the least amount of compressed air. The next step is to control the use of the air, to only have it on when needed.

EXAIR offers the EFC – Electronic Flow Control.  It offers the most comprehensive method to maximize the efficiency of compressed air usage.  It combines a photoelectric sensor with a timing control that operates a solenoid valve to turn on and off the air as required. With 8 different program types, an on/off mode that works with any process can be programmed ensuring that the minimum amount of compressed air is used.  You can use the online EFC Savings Calculator to see how quickly the savings add up!

EFCp4

EFC – Electronic Flow Control

Another method would be to use a solenoid valve with some other method of control. Depending on the process, the solenoid could be energized via a machine control output, or as simple as an electrical push button station. EXAIR offers solenoid valves in a variety of flow rates (from 40 to 350 SCFM) and voltages (24 VDC, 120 VAC and 240 VAC) to match the air flow requirements of the products we provide, while integrating into the facility and available supply voltages.

For control of the Cabinet Cooler Systems, the ETC – Electronic Temperature Control, uses a thermocouple to measure cabinet temperature and cycle the system on and off to maintain a precise cabinet temperature, and provides a digital readout of the internal temperatures and on the fly adjustment.  Also available is the Thermostat Control models, which utilize an adjustable bimetallic thermostat to control the solenoid valve, also cycling the unit on and off as needed to maintain a set cabinet temperature.

ETC CC

ETC – Electronic Temperature Control

There are several manual methods that can be used to control the compressed air.  A simple valve can be used to turn the air off when not needed, whether at the end of the work day, at break time, or whenever the air isn’t required.  We offer several options, from a foot controlled valve, to a magnetic base with on/off valve, to a simple quarter turn ball valve.

footpedalvalve (2)dualstand (2) manual_valves (2)

 

To discuss your processes and how an EXAIR Intelligent Compressed Air Product can control the air supply and save you money, feel free to contact EXAIR and myself or one of our other Application Engineers can help you determine the best solution.

Brian Bergmann
Application Engineer

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Twitter: @EXAIR_BB

 

 

A Digital Flowmeter can Help Improve Your Monthly Electric Bill

No one likes paying their bills at the end of the month.  But, if you can save yourself some money, it helps to make it a little easier.  For this customer, he received a monthly bill for his compressed air.

Monthly Bill

An industrial facility consisting of four separate manufacturing plants and a power company that supplied all of them with utilities, i.e. hot water, natural gas, electricity, and compressed air.  The parent company decided to reorganize and sell the entities.  At the end of it, the power company was controlled by a different organization than the manufacturing plants.  The power plant was contracted to still supply the utilities to the individual plants, but now they would be charged individually on a monthly basis.

Being that compressed air is one of the most expensive utilities, the general manager of a solid-state electronic plant really noticed the charge on his bill.  He did an estimate on the amount of air that his equipment was using, and he compared it to the charges.  There was roughly a 20% difference in the figures.  Because of the excessive amount of money, he contacted EXAIR to see what we could offer.

In discussing their system, the compressed air was supplied through one 6” schedule 40 black pipe.  The pipe came into the facility in the ceiling and it branched off to supply the entire shop with compressed air.  He was looking for something to measure the compressed air flow with the ability to measure a cumulative amount.  He could use this amount to compare to his monthly usage.  He was also concerned about cutting into his compressed air line as this could cause him much downtime and additional costs.  He needed something easy to install, accurate, and versatile.

EXAIR Digital Flowmeter

I suggested our 6” Digital Flowmeter with the Model 9150 Summing Remote Display.  EXAIR Digital Flowmeters are designed to measure flow continuously and accurately.  You do not need to weld, cut, or disassemble pipe lines to install.  With a drill guide, the Digital Flowmeter can be easily mounted onto the 6” black pipe by drilling two small holes.  After that, they just had to insert the Digital Flowmeter into the holes, and tighten the clamp around the pipe.  The total procedure took less than 30 minutes, so downtime was minimal.  The EXAIR Digital Flowmeter measures flow by comparative analysis with thermal dispersion; so, the accuracy is very high and recalibration is not required.

EXAIR Summing Remote

With the option of the Summing Remote Display, they could attach it to the Digital Flowmeter and display the flow remotely up to 50 feet away.  They mounted it on the wall next to his office for the operational functions.  With a simple press of a button, it can show the current flow rates, daily flow rates, and cumulative flow rates.  So, during the billing cycle, he was able to get the cumulative measurement to compare the results, and reset the counter to zero for the next month.

Believe it or not, the power company was correct in their measurements.  But, not to waste an entire blog, I did have him turn the compressed air supply off after business hours to watch the flow rate.  He did find his 20% difference in compressed air leakage.  The Digital Flowmeter was able to measure low flows to target other problem areas in your compressed air system.  Now he had another chore in leak detecting and pipe fixing.

EXAIR Optimization line has different products that can help you to get the most out of your compressed air system.  With the customer above, he was able to measure his compressed air flow with the Digital Flowmeter, as well as detecting other issues.  I will now have to talk to him about our Ultrasonic Leak Detector.

 

John Ball
Application Engineer

Email: johnball@exair.com
Twitter: @EXAIR_jb

 

Picture: Calculator Calculation Insurance by stevepb.  Creative Commons CC0 Public Domain

Where Does 25 Cents For 1,000 Standard Cubic Feet Of Air Come From?

Wasting compressed air 2

Being an Application Engineer at EXAIR you tend to do a good amount of return on investment (ROI) calculations.   This is mainly to tell customers just how fast installing an EXAIR product on their system is going to pay its purchase price back and start saving them money.

In order to do these calculations there are several variables we must know.   The list is below.

  • Cost of EXAIR Product (This is an easy one for us to know.)
  • EXAIR Product Consumption (Another easy one!)
  • Current Product Consumption (If this is an unknown, we will test it for free!)
  • Cost of Compressed Air / 1,000 SCF (This is the most common unknown.)

With these four variables we can calculate the amount of air and the amount of money the EXAIR product will save over an existing non-engineered blowoff.   Let me address the two variables which have to come from you, the customer.

Current Product Consumption – If this value is not known please don’t guess at it.  We offer a free service which we refer to as our Efficiency Lab where you send us in your existing blowoff device and we will test it for force flow and noise level.   If you don’t know what pressure you are operating the piece at we will help you find out how to get that and then we will test our products at the same pressures.   This way you get a true apple to apples comparison.   Then, once we are done testing, you will get a recommendation from us in a formal report as to what EXAIR product will best replace your existing product.  Then we will pay for return shipping of your blowoff device back to you. So, if you don’t know how much air you are currently using then give us a call.  We will figure it out for you.

Efficiency Lab

The EXAIR Efficiency Lab is FREE!

Cost of Compressed Air/ 1,000 SCF – This is more often than not, the unknown variable in the equation.  The good news is there is a general standard assumption of twenty-five cents per 1,000 Standard Cubic Feet of compressed air.   This works out to be around 8 cents per kW/hr.  So even if you don’t know what you pay to compress the air, if you know what you are paying per kilowatt hour for your energy then we can calculate within reason what it costs for you to generate your compressed air. For reference, 8 cents per kilowatt-hour falls between the average US cost per kilowatt hour for commercial end-users (10.7/kWh) and industrial end-users (6.9/kWh).*

The best part of all is…EXAIR has a calculator available right on our website which provides air and dollar savings per minute, hour day and year as well as a payback in days for the EXAIR product purchase. On top of that, any step along the way that you aren’t sure of, we will help you out for free, even testing your product!

In case you would like to see the math, the formula used is below.

Basic Equation To Go From Cost Per kiloWatt Hour to Cost Per 1,000 Standard Cubic Feet of Compressed Air

Basic equation to go from Cost Per kiloWatt Hour to Cost Per 1,000 Standard Cubic Feet of Compressed Air

Brian Farno
Application Engineer Manager
BrianFarno@EXAIR.com
@EXAIR_BF

*latest U.S. EIA report here

 

 

 

How to Calculate Compressed Air Consumption at a Different Inlet Pressure OR Math Doesn’t Lie and Neither Will Your Results

EXAIR Application Engineers field a wide variety of technical assistance questions. Many are quantifiable, and we just need to do a little math.  For instance:

Q. You publish the compressed air consumption of your products assuming a supply pressure of 80psig. What if my supply pressure is different?

A. Compressed air consumption is going to be directly proportional to ABSOLUTE pressure supply. That means you have to add atmospheric pressure of 14.7psia (a=absolute) to your gauge pressure, measured in psig (g=gauged, and zero on the gauge is atmospheric pressure,) and calculate the ratio. For example:

Our catalog publishes most products' performance and specification data for a compressed air supply pressure of 80psig.

Our catalog publishes most products’ performance and specification data for a compressed air supply pressure of 80psig.

Model 1100 Super Air Nozzle consumes 14 SCFM @80psig. How much will it consume @95psig?

1100 recalc

This is good news…if you need that extra amount of flow and force from a little higher pressure supply, you’re still FAR below the air consumption of an open-ended 1/4″ copper tube (33 SCFM @80psig or 38 SCFM @95psig)* or SCH40 pipe (140 SCFM @80psig or 162 SCFM @95psig.)*

*Using the same formula above.  Check my math if you like.  I’m right, but it’ll be good practice.  Those values come from this chart in our catalog, by the way:

open blow air consumption

You can get your own personal copy of our current catalog here.

Of course, if your application doesn’t need all that flow and force, this formula works the other way too…it, in fact, works in your favor, air consumption-wise.  Consider the savings associated with dialing back your supply pressure.  Let’s say, for instance, you replace a open ended 1/4″ SCH40 pipe with a Model 1100 Super Air Nozzle, regulate the supply down to 55psig, and find that it still does what you need it to:

1100 recalc-1

(Remember, the value you’re solving for is ALWAYS the numerator of the fraction, because…Algebra! )

Now, let’s do just a little more math.  Don’t worry; I’m almost finished.  Plus, this is the part you can show your boss and be the hero.  So, we find out that you’re saving 151.7 SCFM by replacing that open pipe blow off with a Super Air Nozzle, and regulating its supply pressure down from your full line pressure of 95psig to 55psig:

162 SCFM – 10.3 SCFM = 151.7 SCFM saved

You may know your facility’s cost of compressed air generation.  If not, $0.25 per 1,000 Standard Cubic Feet (SCF) is a reasonable estimate:

151.7 SCFM X 60 minutes/hour X 8 hours/day X 5 days/week X 52 weeks/year =

18,932,160 SCF/year X $0.25/1,000 SCF = $4,733.04 annual savings

Now, this is just an example…one in which a $34.00 (Model 1100 Super Air Nozzle’s current 2014 List Price) product pays for itself before the end of the second day (again, feel free to check my math and see how right I am.)  Keep in mind that your mileage, as they say, may vary, but the math…and our products’ performance…will hold true according to whatever your conditions are.

How much can you save by using engineered, Intelligent Compressed Air Products from EXAIR?  Call me, and we’ll start the process of finding out.

Russ Bowman
Application Engineer
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Back To The Basics (of compressed air)…And The Track

The past several weeks I have been finding myself doing things the more complicated way (I  know how that sounds odd – an engineer that prefers to do things the hard way). Over the weekend I took a brief ride on the motorcycle for a short 15 minute trip that I found to be satisfying, even if it is less direct and a more out-of-the-way route for getting my errands complete.   The route runs past the local university of Mount Saint Joseph, down a winding road that has no houses and only one business, the rest is all woods and a creek.  Finally, this route runs along the mighty Ohio river and back up a steep winding road near my house.

While I have been worrying about all the projects and errands which need to be completed, this more complicated route gives me a moment to decompress and remember that my family at home and few other things are all I need.  Once  I was reminded of that and got some perspective which allowed me to “keep calm and carry on” I proceeded to break my projects and errands down into smaller pieces and everything will start to come together.

I now have a to do list at home as well as a refreshed list at EXAIR of all the items I need to do.   The list at home is considerably more fun as it all involves getting my “new to me” track bike ready for this season.  20140506_134512That’s right, it’s right around the corner, the first track weekend of 2014.  So expect to see some more motorcycle blogs coming and hopefully more ways to use EXAIR products while working on them. It was these newly developed lists that helped me reorganize and get back on track for the new season, sometimes a list is necessary in order to gain perspective, prioritize and begin to take action.

On that note, EXAIR has a list to help you gain perspective, prioritize and take some action toward getting your compressed air system optimized. Our systematic approach using the Six Steps To Compressed Air Optimization has been developed to help you save your compressed air,your hearing, and your money. By following these steps you can lower your compressed air use, minimize workplace noise exposure (OSHA will be happy) and save money on this important utility.

6 steps

 

If you have ever thought of reducing your compressed air costs, use our list to help you gain perspective on this simple process and take some positive steps toward saving your facility some money.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF

 

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