Tag: return

How Fast Can I Get My Return On Investment

Published on by Brian FarnoLeave a comment

Whenever an EXAIR product is sold to another business there is ultimately a question from a customer whether they know it or not. That question is very often, how fast will this product pay itself back in production gains, air savings, or decrease in downtime. One of the ways we offer this information is through our calculators.

The easiest method to determine how fast an EXAIR Engineered Solution will pay itself back is by knowing a few variables and then plugging them into our simplified Air Savings Calculator on the EXAIR site.

Simple ROI Calculator from EXAIR.comhttps://www.exair.com/knowledgebase/calculator-library/air-savings-calculator-usd.html?pub=28.calc

The Variables:
1. Current Customer Consumption (SCFM) or (SLPM) – We need this to have the baseline, it isn’t always easy to know off the top of your head so we offer items like the Digital Flowmeter or even the ability to send the product to us through the Efficiency Lab for a free diagnosis of consumption.

2. $ Cost of EXAIR Product – This is easy, you can even add in other known project costs to this that you want factored in for the return on investment. The more you add, the less it becomes a simplified ROI. Basic cost of the EXAIR product that is being installed is the best to keep it simplified.

3. EXAIR Product Consumption (SCFM) or (SLPM) – This can easily be obtained from our website or our Brain Trust, I mean Application Engineers who are always eager to talk about air consumption and other technical details. To really determine this we just need to know the operating air pressure and the model number.

4. $ Cost of compressed air/1,000 Cubic Feet – This is a value that may be known by the on-site utilities team, if not a good industry standard for the Midwest is $.25 USD. This has come assumptions on your kWh cost of energy and compressor efficiency. Again, if you want to dive deep into this, reach out to our Application Engineers, we are here for a reason.

That’s it, with those values input you can get a break down on how much air, and money you are saving and a simple payback in days of operation.

If you have questions on the math behind this, or how to determine/factor in some more information, contact one of the team members here and we will walk you through the best options to decrease your payback time and increase your efficiency.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF


Want to Know How Much Money you can Save? Use EXAIR’s Efficiency Lab

Published on by Brian FarnoLeave a comment

Growing up as a kid of the 80’s I remember wanting a Nintendo 64. This was very much a want due to the excellent advertising and having friends that got them when they first came out. So, like many kids of the times, I set forth to present my case to my parents and sell them on the benefits to me receiving this 64 bit wonder of the world. These benefits all revolved around me doing chores and “helping” to earn money to go towards the end goal. Thinking back now, I really should have started to learn more about negotiating earlier in life because my parents and older brother really made out on the deal. The point is, I had to make sure that they saw a return on their investment. Mainly, I would be entertained and they would get some stuff done around the house without complaints.

1 – NUTS For Nintendo special on ABC news 20/20 from 1988

Well, flash forward to today and I still feel as though it is always an easy justification if I have supporting evidence of the benefits and even better, if there is some form of cost savings that will be had by spending money on a project or a tool. Often times the justification is the amount of time spent on a task. Well, here at EXAIR we completely embrace that justification culture and, in many cases, can provide you the information necessary to present to management or budget committee – the simple ROI your company will see when investing in EXAIR products. The best part is, this study is always free.

The way it works is pretty simple, we want to compare your current solution to our engineered products. EXAIR has a simple form that gets filled out (or you can call, e-mail or chat) explaining your application to us. We ask for a few key pieces of detailed information, and for you to send one of your current solutions (the nozzle, homemade device, or open tube for example). Then we run side by side tests in house to determine air consumption, noise, and force at the same pressure you are using at your facility. That’s right, this testing is all done here at EXAIR through our EXAIR Efficiency Lab. We document these performance characteristics and send a report showing a simple return on investment for you if you replace your device with an EXAIR engineered solution.

EXAIR’s Free Efficiency Lab

This information is then easily backed up by our 30 day guarantee on stock products. Get the EXAIR solution in, test it in your facility and see how the savings stack up. If there is anything that doesn’t stack up, you simply let us know and send the units back.

The entire Efficiency Lab and 30 day guarantee are offered to all of our customers that are within the US and Canada. If you would like to discuss what is possible for you and your team, please reach out to an Application Engineer.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF

1 – Hertz, Steve – NUTS FOR NINTENDO special on ABC news 20/20 from 1988, 6/24/2010 – Retrieved from https://www.youtube.com/watch?v=yt4KG9ib8S4

Tools Of The Trade: The Rotameter

Published on by Brian FarnoLeave a comment

EXAIR’s Free Efficiency Lab

One of the free services we offer to customers here at EXAIR is our Efficiency Lab. In case you are not familiar here is a brief synopsis. Speak with an Application Engineer about your existing compressed air blowoff/point of use product and that you would like to know how much air it consumes. Fill out the brief survey and send the product you use in to our facility. Let us perform tests on calibrated test equipment to determine the force, flow, and noise level. We will then issue you a report that states what the EXAIR model would best be suited (if applicable) as well as how much compressed air you will be able to save. Order the recommendation and start saving money.

To do these evaluations, we have to have calibrated equipment that is reliable and capable of handling vast range of products we may receive in. For this, we could use a Digital Flowmeter, in some cases that is what has to be done due to large flow rates. For the majority of these though we go old school. We utilize a piece of equipment called a rotameter.

A rotameter pairs nicely with a calibrated pressure gauge as well.

The float can be seen with graduated marks for readings. The taper of the chamber is not easily seen with the naked eye.

This is a device that is designed to measure the flow rate of a fluid within a closed tube. The inside diameter of the tube is varied which causes the float within the meter to raise or lower.  They are calibrated for a specific gas at a given pressure and temperature, most are calibrated for atmospheric conditions, 14.7 psi (1.014 Bar). The meter must be mounted vertically and this is not always best suited for industrial environments.

When testing products the compressed air within the meter is pressurized which means we have to correct the reading for the given pressure, if the temperature is outside of the calibration temp then we must also perform that correction. We do this using a table provided by the manufacturer of the meter or by using the calculations shown to get exact values that may be in between the pressures in the table.

Pressure Correction Table

 

This will allow us to then multiply the Correction Factor by the meter reading and calculate our corrected flow for the point of use device at a given operating pressure and temperature.

Temperature correction table

Knowing where the values that are measured and calculated come from add validity to the reports and understanding all of the variables that go into reading like this helps to better validate the cost savings that can be seen.

In a pinch, for a field estimation, we can also use these Correction Factors and determine an approximate consumption rate of a device that has been measured at a pressure such as our cataloged 80 psig (5.5 Bar). This can often be done on the fly to help determine the flowrates currently on a system. This can be helpful when troubleshooting, giving estimated simple ROIs, and help justify results and reasons for future purchases of engineered solutions.

If you want to discuss the Efficiency Lab or any of the math behind our calculations, contact any Application Engineer, we can all help out.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF

EXAIR’s Return on Investment For One Engineered Air Nozzle is Amazing!

Published on by Jordan T ShouseLeave a comment

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 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
ROI Calculation
  • 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
1100group
Our catalog publishes most products’ performance and specification data for a compressed air supply pressure of 80psig.

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 $42, assuming a $5 compression fitting and $45 in labor to install, the result is a Cost of Investment of $92.00. The ROI calculation for Year one is-

ROI2

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

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.

Jordan Shouse
Application Engineer

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