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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Life Hacking = Better Easier Life. So What Happens When You Hack Compressed Air?

The birth of the internet and personal computer brought to light a new form of hacking.  For many years now hacking has been considered a negative action, even criminal.  However, within the past several years the term lifehacking has come to mean a process of bettering your life through tips and tricks.  There are entire blogs and TED talks about life hacking, so that has gotten me thinking of how can EXAIR hack your compressed air system and turn it into a life hack?

All of our products are designed and engineered to make your life easier and better.  The best product I can think of to demonstrate this is our Super Air Knife With Plumbing Kit Installed.  This is an option for any of our Super Air Knives which are longer than 24″ that makes installation even easier on your end.  The plumbing kit has already connected air to each port on the Super Air Knife so all you have to do is plumb air to a single port at the end of the kit assembly.  See the picture below for a better idea.

Alumina dust 3 PKI

Another item that has helped many customers is our Chip Trapper System.   This is essentially a modified or hacked Reversible Drum Vac System which  adds the benefit of filtering the liquid you are sucking up to a 5 micron level.  (Other filter levels/sizes available.) This means you can make your cutting fluid last longer and cut that rancid coolant smell in your machine shop down because the bacteria in the coolant doesn’t have any solids to live upon.  This also means that you won’t be giving your coolant reclamation company any of your valuable solids so you keep more of your scrap profits.

So if you are looking for a way to make your life easier while you are working with compressed air, let us know, we’ll see how you can hack your compressed air applications.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF

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