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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FREE TESTING!!!! EXAIR’s Award Winning Efficiency Lab Saves Air and Money

EXAIR’s Efficiency Lab is now the “award-winning Efficiency Lab”. Thank you to Environmental Protection Magazine for recognizing the value and importance of this EXAIR service.

epawinner2016_400x

 

I have blogged about this many times and we continue to help customers by using our free Efficiency Lab service that EXAIR provides to customers throughout the USA.  The EXAIR Efficiency Lab allows customers to send in their existing blow off device and we will test it for compressed air consumption, sound level, and force.  Ideally we try to take these measurements at the same operating pressure that is being supplied in the field so that we can compare it to an EXAIR product and offer the customer the best solution, the safest solution, and an engineered solution capable of saving them money through air savings and effectiveness.

Here is a recent example of  a product sent in by a customer concerned with compressed air consumption and safety of their people. The  hose they sent in was actually designed to be used with liquid coolants and was a very large consumer of compressed air.

A flexible blow off with .495" openings. Designed for liquid but used for compressed air. Enormous waste of air and a huge safety risk.
A flexible blow off with .495″ openings. Designed for liquid but used for compressed air. Enormous waste of air and a huge safety risk.

The hose shown above was being used at 40 psig inlet pressure.  The device is not OSHA compliant for dead end pressure, nor does it meet or exceed the OSHA standard for allowable noise level exposure.   The hose was utilizing 84.64 SCFM of compressed air and was giving off 100.1 dBA of sound.

OSHA Noise Level

As seen in the chart above, an employee is only permitted to work in the surrounding area for 2 hours a day when exposed to this noise level.   The amount of force that the nozzle gave off was far more than what was needed to blow chips and fines off the part.   The EXAIR solution was a model 1002-9230 – Safety air Nozzle w/ 30″ Stay Set Hose.

The EXAIR products were operated at line pressure of 80 psig which means they utilized 17 SCFM of compressed air and gave off a sound level of 80 dBA.  On top of saving over 67 SCFM per nozzle and reducing the noise level to below OSHA standard, the EXAIR engineered solution also meets or exceeds the OSHA standard for 30 psig dead end pressure.   In total this customer has replaced 8 of these inefficient lines and is saving 541 SCFM of compressed air each time they activate the part blowoff.

If you would like to find out more about the EXAIR Efficiency Lab, contact an Application Engineer.

We look forward to testing your blow off and being able to recommend a safe, efficient, engineered solution.

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

 

Never Think Your Idea Will Not Be Heard

The above title proved very true in a work experience of my father’s. After working in the mill for several years, he drew up a new piece of process equipment which would eventually turn in to something that they put in place on the production line.   This was all done from his idea that he was able to place on a scrap piece of paper as a drawing.   While he wasn’t the decision maker in the process, he was the person who saw what kind of impact this device could have and knew the people he had to get the information to.

That brings me to the topic of this blog, don’t ever think an idea is too small to warrant a reward.  This can ring true throughout any type of application, including compressed air.  There have been instances where a maintenance worker, or even a new operator, have called in to speak to me here asking what can they do to lower the noise in the work area when they are using the hand held blow gun the company supplies.   After talking to them about what they are trying to achieve with the blow gun and how much air they are currently using, we generally find that they can save a good amount of compressed air, lower the noise level, and become OSHA compliant, all by changing this one simple tool.   Once they have all the benefits that their company will see from implementing our engineered solution, they can then propose this to the decision makers.

For the most part, companies will at the very least entertain ideas like this.  When you back that idea up with some relevant data on how much money the company will save, or the fact that is will make the work environment safer and more enjoyable, then you will more than likely get a little more attention.  The main point is to ensure that you are getting that information to the correct person and that you have the correct information.   That is one of the many reasons that EXAIR has a full team of Application Engineers who can help you identify how much air you might be using, what products will fit the need, and what kind of benefits your company will see.   On top of all the information that we have available for free, we even offer the chance to get compensation for sharing application data with us.

EXAIR Efficiency Lab
EXAIR’s Efficiency Lab will test your product for force, flow, and noise.

That’s right, we will compensate you for sharing your cost savings, sound level reductions or application improvements, with us.  This is all possible through our Case Study program.  All you have to do to find out more is contact any Application Engineer.  We simply need some photographs of the application and some quantitative data for the benefits you have gained.  Don’t know what your current device is using, take advantage of our EXAIR Efficiency Lab, that will give us a good amount of information we need to then, help you solve a problem as well as produce a Case Study.

If you would like to discuss your compressed air systems or how we can help you, please contact us.

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

 

Professor Penurious, Mystery Solver!

ZOINKS! What have Professor Penurious and the gang gotten into this time? Enjoy viewing this video – we sure do enjoy making them…And recognizing that some day the Oscar committee will be calling.

Russ Bowman
Application Engineer
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Taking Yourself Out Of Your Comfort Zone

During the warmer Ohio weather months, April through October, my blog posts may include information about taking my motorcycle to some road course tracks (and now even a cold month or two).  I take my bike to open track days where (mostly) amateur riders can get on a proper race course. There are people on the track for the first time and people who race professionally.   They will generally divide the riders into several groups, Novice, Intermediate or Advanced.  The control riders/coaches at the track will help you to determine what group you should ride in and then help you throughout the day.   Below is a video of a control rider that is also a professional rider at Mid Ohio Sports Car Course.  (Don’t mind the music, it’s not my cup of tea either.)

For the novice group there are classes after each session, as well as skills practiced in every session.  This is to help teach the beginning track rider that the same habits you use on the street are not meant for the track, as well as how to be as safe as possible while being on the track.  This is the most watched and controlled group due to the fact it generally has the most riders and they are all the newest to the track.

For intermediate group there are optional classes and you just run your own pace.  They step up the skill level by not enforcing you to focus on a skill during each session or requiring you to go to a class after each session of the day.  The pace is considerably faster than novice and the only ways to get instruction are to either ask a control rider for it or if they see something to help you with they will generally stop you and coach you on how to do it better.

The final group is advanced, or race class.  This has the same elements as a professional race minus the grid at start-up.   There aren’t really any passing rules and the control riders are mainly all professional racers or former racers who can still make your head spin as they fly past you.  Similar to the intermediate group the only way you will get help is to ask for it.

For the past two years I have been running in the intermediate group and it is a serious meat grinder.  You will have people in there that are fast enough to be in advanced group, but are too scared.  As well as having people who let their ego and pride tell them they don’t need to learn anything from a novice class and should really be in novice learning as much as they can.  I stayed in Novice for over the first year of track riding that I had done.   Some people choose to never leave the novice group because that is exactly where they are comfortable.  They don’t want to worry about the other classes and are perfectly fine with not even being the fastest person in Novice.  This is perfectly acceptable for some, but I had to push myself out of my comfort zone in order to really enjoy the entire experience.  Even though I have been to the track several times now I am always out of my comfort zone in intermediate because there are always new people showing up and you never know when you will running with a group that should be racing, or a group that should be getting coached in novice.

Here at EXAIR we have customers that could fit into each of these groups also.   The customer who doesn’t know what an engineered solution is and doesn’t understand the cost of compressed air.  The intermediate user who has used some of our products in the past but is encountering new issues and knows that we can help lead them in the right direction.  As well as the advanced users who know exactly what they need and sometimes even request a special unit to fit their exact needs.

No matter the case, we can help as well as coach even the most advanced users of our products on how to use compressed air better.  If you are reading this and you don’t know the difference between a Super Air Nozzle and an open pipe, then give us a call.  We will help teach you the differences as well as make sure you understand the need for engineered solutions on your compressed air system.  It may be out of your comfort zone for the first few calls but we will make sure you get to the level you want to be so you get back into your comfort zone.

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

 

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