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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Twitter: @EXAIR_BB

Energy Rebates and EXAIR Products

In case it goes unnoticed, EXAIR focuses on engineered compressed air point of use products to ensure that our customers are utilizing their costly utility as efficiently as possible.  The main benefits to purchasing EXAIR products are the support you receive from us at EXAIR, the quality of the product, the savings in compressed air, and the increase in safety.  Another added benefit is a large number of utility companies are offering rebates on the purchase of engineered nozzles, just like the Super Air Nozzles that EXAIR offers.

Many energy providers offer these energy rebates for commercial or industrial users.  Here in the Cincinnati area, Duke Energy offers rebates on items such as lighting, air compressors, engineered air nozzles, heaters / dryers for extrusion machines, energy management systems, variable frequency drives, data center equipment, even food service equipment, custom incentives, and many other items.

Duke Energy Rebate

Example of our local energy rebate offering for Engineered Nozzles

For each engineered compressed air nozzle that is installed, in order to meet the rebate requirements they must flow less than or equal to given flow rates in SCFM at 80 psig inlet pressure. The pipe sizes, flow rates, and EXAIR equivalents are shown below.

EXAIR Engineered Air Nozzle Part Number EXAIR Flow Rate @ 80 psig
#1102/#1103 – 1/8 NPT 10 SCFM
#1100/#1101 – 1/4 NPT 14 SCFM
#1108SS-NPT/#1109SS-NPT/#1110SS-NPT
All are 1/8 NPT
2.5, 4.9, 8.3 SCFM
respectively
#1003 – 3/8 NPT 18 SCFM

By just replacing the nozzles the customer saved 2.7 SCFM per nozzle.If we take an example such as the EXAIR Case Study  shown below for 1/4″ copper tube that was being used as an open ended blow off.  The copper tubes were consuming 19.6 SCFM at 100 psig inlet pressure, there were 10 machines with one line per machine operating 40 hours, 52 weeks per year.   The customer retrofitted the open pipes with a model 1100 Super air nozzle and was able to reduce the air consumption by 2.7 SCFM per nozzle.  If they were to purchase these nozzles this year, current list price for a model 1100 Super Air Nozzle is $36.00 USD, then apply for the energy rebate offered by Duke Energy and receive $20.00 per nozzle replaced.  The total savings and return on investment is shown below.

Case Study 1561

EXAIR Model 1100 Super Air Nozzle Replaces Open Copper Pipe Blow Off

10 nozzles x 2.7 SCFM = 27 SCFM  x 60 minutes per hour x 8 hours per day x 5 days per week x 52 weeks per year = 3,369,600 SCF of compressed air saved per year.

3,369,600 / 1,000 SCF x $.25 = $842.40 USD savings in compressed air per year.

Cost Savings per week = $16.20 USD

Total purchase cost is  $36.00 x 10 nozzles = $360.00 USD

Energy Rebate = @20.00 per nozzle x 10 nozzles  = $200.00 USD in rebates.

$360.00 USD purchase price – $200.00 USD energy rebate = $160.00 USD final purchase cost.

Return on investment at a savings of  $16.20 USD per week is

$160.00 / $16.20 = Less than 10 weeks pay back!

By applying for the energy rebate this customer could reduce the ROI of this air savings project from just over 22 weeks (which is still very good) to less than 10 weeks.

If you would like to learn more about whether there are Industrial energy rebates available in your area, contact an Application Engineer and let us know where you are located and who your energy provider is.

We will help you determine the correct engineered solution to save your compressed air as well as help you to apply for eligible energy rebates in your area.

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

 

Another Piece To The Puzzle

With having three young children, puzzles are a very popular item in my house.   Whether it is a wooden puzzle where you are matching different color fishes into their corresponding recess on a board, or maybe a classic Rubik’s Cube that I will get half way through solving when one of my daughters wants to help mess it up.  (Which I absolutely love to help them do because I watch their face as they turn each side and it is simply a look of pure joy and amazement. No matter the case, the puzzles always get solved and then they are guaranteed to be done again.

Cabinet Cooler

Here at EXAIR, I look at nearly every application I come across as a puzzle.   Sometimes, we have the exact piece that has a precise place and fit.  This could be a Cabinet Cooler System to cool and overheating electrical panel.  More often than not, it’s not that easy.  We spend a good margin of our time creating a picture in our head of what the customer’s application is and we try to find that missing piece to the puzzle that will complete their needs.

This is one of the great things about the Application Engineering Department here at EXAIR, each one of us has a very diverse professional background and very different life experiences which permits us to cover just about any scenario you can throw at us.  If one of us hasn’t experienced it, there is a good chance we have someone outside of our department who has and we will bring them in on the problem solving.  It’s not too uncommon for certain applications to even make it into the eyes and ears of the President of EXAIR due to his extensive background with many industries.

The point is, if we can’t figure it out, we know who to ask, if they don’t know, we’re going to try our hardest to get you the right product to fit your needs and exceed your expectations the first time. If not, we honor a 30 day guarantee on stock products and will take the product back so you know that we have exhausted all options.   We’ve even been known to call former customers back when we come out with new products that will fit their needs we weren’t able to meet.

30 Day Guarantee

30 Day Guarantee

If you think you have a hard to solve compressed air application, contact us.

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

What Exactly Does “Easy To Do Business With” Mean?

That’s the goal – we want it to be easy for you to do business with EXAIR. I understand this is not exactly a quantitative expression, and everyone here likes to have data to back up our claims.  Well, here are just a few ways that I have found to verify we are easy to deal with.

Whenever you call in, the phone is answered by a live person.  This of course is true for Monday through Friday from 8 AM to 5 PM EST – what most of us consider “normal business hours”. The team that answers the phone is also our Order Entry team who can help with pricing, some general product questions, lead times, freight quotes, etc. And, if you need additional technical information or an expert to assist you with implementing a solution for your problem, they are the team who will pass your calls on to my team, the Application Engineers.

We have a full staff of Application Engineers who are here to assist with selecting the right product to fit your needs and troubleshooting existing compressed air setups. Our Application engineers are experts at determining how much compressed air can be saved compared to an existing setup and how that translates into your dollar savings. They understand how important it is to you to keep your processes OSHA compliant and personnel safe. Our Application Engineers also walk you through any returns which may occur with our 30 day trail period, which brings us to the next topic.

We honor a 30 day guarantee on stock products.  This permits you to get the product in to your facility and put it through the paces and if it doesn’t perform to your standards, give us a call.  We will take the item back and issue you a full credit for the purchase price of the product. I should probably state at this point that – Yes, we do deal with applications we have not dealt with before. In these situations we remain confident in our recommended solution (or we would not have made it) but will remain close to you as the installation and implementation occur just so we can help troubleshoot if necessary. If it ends up not working – see the first 3 sentences.

On top of all those, we stand behind our product with a 5 year built to last warranty for compressed air products, and a 1 year warranty on electronic components.   This just goes to show how strongly we believe in our workmanship and our products.

30 Day Guarantee

30 Day Guarantee

In case you have never called or sent in an inquiry from one of the numerous ways we offer to contact us,  please do.  I can assure you that you will receive a timely response from a live person that will give you the best answer possible.   If we don’t have the answer, we’ll tell you and many times we will offer a good place to find a solution.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF

 

The (Not So) Dreaded Warranty Claim Call, Resolved

A couple of weeks ago, I wrote about warranty claims…one, specifically, that I had recently received (it’s still worth a look even if you remember it well, just for another chance to see the old luggage commercial with the gorilla again.) I also advised my readers to stay tuned, which reminds me of another blast from my past as a kid who watched way too much TV in the early 1970’s…

same_bat-time_same_bat-channel

We did, in fact, receive and evaluate the failed Stay Set Hose. This is a formal process by which our Quality Control team analyzes all the information that I can give them as to the application, installation, and use of the product. They then perform a detailed inspection, evaluation, and test (if needed) of the product in question. I won’t say we never find manufacturing or assembly problems, but our records indicate we’ve never found the same one twice…we’re keenly aware that the first time may be a mistake, but the second time is a choice.

More often than not, we find the problem is due to easily correctable installation, operation, or air supply problems. In this case, when we inspected the bendable element, we could see that it had been subjected to an unsupported, twisting motion, which had fatigued it at the point where it was bent, and sheared it away from its internal connection.  The customer and I had already gone over the common best practices for their use (which included properly supporting the hose while bending…see pictures below,) so they got a replacement Stay Set Hose, and are back in operation.

Hose is being bent with one hand, with no support at the bending point.  DON'T DO THIS.

Hose is being bent with one hand, with no support at the bending point. DON’T DO THIS.

Hose is being held firmly at connection end, providing support for the element's connection inside the fitting.  DO THIS INSTEAD.

Hose is being held firmly at connection end, providing support for the element’s connection inside the fitting. DO THIS INSTEAD.

If you’ve got questions about how EXAIR’s Intelligent Compressed Air Products…and accessories…can make better use of your compressed air, give me a call.

Russ Bowman
Application Engineer
(513)671-3322 local
(800)923-9247 toll free
(513)671-3363 fax
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Customer Service?

Recently I was having some issues with my cell phone dropping calls and frequent undelivered texts, emails and voice-mails so I placed a call to my provider to see what could be done. From my previous experience with cell phone providers, I knew this was going to be a tedious process but was hoping for the best since I have been an 8+ year customer. So I contacted the company last week and explained my situation. They advised that the service in my area had been acting up and they would need to open a file on my line that could take 7 – 10 days before I would receive a response. The VERY next morning they called to tell me that there were issues with the coverage in my area but it had been resolved.

So as the week went by and I was still experiencing the same issues, I called the company back. This time I was transferred to the technical department so they could troubleshoot my device – after a 2 hour phone call, they could provide no reason as to why I was having issues and offered me no course toward a resolution. Now frustrated, I decided to visit their website and participate in their chat option to see if we could get to a resolution. No such luck, I now had to elevate the situation and speak to a manager.

funny-cell-phone

After 17 phone calls to customer service and a total of 5 online chats, I finally got the one person who was actually willing to help. After reviewing the notes on my account, she offered me a free upgrade, without extending my service contract, shipped the replacement phone for overnight delivery and waived the $40 activation fee for the new device. Of course I was pleased with this resolution but asked why it was necessary to jump through so many hoops about the same issue – “it really depends on who you talk to and if they want to do the work or not”. In my opinion, that’s a pretty sad approach toward servicing a customer.

At EXAIR, our main focus is customer service and we will make every attempt to provide assistance and handle your request(s) in a prompt and thorough manner.  The fact is, a sales person can sell just about anything once.  It is the service that you are provided – that installation and maintenance guide or 3D model that can be easily downloaded – that takes a company with amazing products over the edge.   We strive to ensure you have every possible way to reach our Application Engineers.  We are here to help you not only determine which product will work best in your application, but also to help you troubleshoot your existing product, determine what air savings you have gained from installing an engineered solution, as well as figure out ways to make your operating area a safer, quieter place for your employees.

Here are some very recent comments we have received from customers:

  • “Super fast service. EXCELLENT!” – Joe, industrial laser manufacturer
  • “I called your customer service line and Vikki Foley was very helpful and even though it was late Thursday afternoon, she sounds like she enjoys her job.” – Mark, rapid prototyping and product design company
  • “Fantastic service. Very fast responses and concise information.” – Chase, display technology manufacturer
  • “Russ Bowman was an excellent help. He was respectful and went out of his way to find information that I requested. Would definitely recommend working with Exair. Outstanding customer service!” – Kathryn, engineering consultant

We can’t ask for anything more than that. We want to do the work, we want to make it easy for you.

Please feel free to contact us – via phone @ 800-903-9247, by email techelp@exair.com or our online chat for assistance with your compressed air application today.

Justin Nicholl
Application Engineer
justinnicholl@EXAIR.com
@EXAIR_JN

 

 

 

 

Some Things You’re Stuck With, Others You Are Not

This past Saturday, my wife and I awoke to several missed calls from her mother.  The first reaction was, oh no, something has happened with someone and it is bad.   The good news is everyone in her family is just fine.   The bad news is,  the car my brother in law borrowed from us would not be getting returned in the same condition it left in.    While he was driving on the interstate he encountered some ice which caused him to lose control and meet a concrete divider head on, then spin and touch the back end too.  The good news again is, he is safe, the airbags did their job and kept him safe.  He was able to still make it to his destination which was a test for a new job.  The funniest part of the ordeal is the whole reason he had our car in the first place.  He had borrowed our Matrix while his truck was in the body shop getting repaired from a fight with a knee high wall and a shallow right turn.   Needless to say his truck was scratched and dented up pretty badly.  Now the same shop has two cars from the same family.  I don’t know if they could stay in business without my wife’s family being customers.  A picture of the aftermath on our Matrix is below.

20131217_174114

The reason for telling this story is to explain how the situation was handled.  When we first heard the news my immediate reaction was solely based on my frontal lobe thinking.  It was all emotion, I couldn’t believe something like this could happen and was furious for about 15 seconds.  Then I made sure to logically process everything about the situation.  When it all boils down to it, a car can be replaced, my brother in law is far more important than anything else that happened.  We really were just glad that he wasn’t hurt in the accident.

I joke with my in-laws that I would like to exchange them for some that work better.  The truth is, family is family, you are stuck with them whether you want them or not.   If you have an EXAIR product though, you aren’t stuck with it.  I know I have said it time and time again.  If for any reason you determine that one of our products you have bought factory direct from us doesn’t fit your needs, wants, or likes.  Simply give us a call.  We will honor our 30 day guarantee on stock products.  We don’t want you to feel like you do when you have to go to the in laws house for the holidays and the only thing you can do is try to find a nice dark quiet place to hide until it is time to leave.

Capture

Just to make sure my message is clear,  don’t ever feel like you are stuck with an EXAIR product that you ordered from us, from our shipped same day stock.  We want to make sure you never feel like you are left stranded on the side of the highway or worse, at the in-laws for a 7 hour dinner (I’m joking! …I could only stand it for about 6 hours).

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF

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