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

Calculating Compressed Air Cost & Savings Made Easy

If you have ever looked through our catalog, website, blog, twitter feeds, or even our Facebook page, you will see that we can almost always put a dollar amount behind the amount of compressed air you saved by installing EXAIR’s Intelligent Compressed Air Products.   No matter which platform we use to deliver the message, we use the same value for the cost of compressed air which is $.25 per 1,000 Standard Cubic Feet of compressed air. This value is derived from average commercial and industrial energy costs nationwide, if you are on either coast this value may increase slightly. On the positive side, if your cost for compressed air is a bit more, installing an EXAIR product will increase your savings.

So where does this number come from?   I can tell you this much, we didn’t let the marketing department or anyone in Accounting make it up.   This is a number that the Engineering department has deemed feasible and is accurate.

To calculate the amount we first look to what the cost per kilowatt hour is you pay for energy.  Then we will need to know what the compressor shaft horsepower  of the compressor is, plus the run time percentage, the percentage at full-load, and the motor efficiency.

If you don’t have all of these values, no worries.   We can get fairly close by using the industry accepted standard mentioned above, or use some other general standards if all you know is the cost of your electricity.

The way to calculate the cost of compressed air is not an intense mathematical equation like you might think.  The best part is, you don’t even have to worry about doing any of the math shown below because you can contact us and we can work through it for you.

If you prefer to have us compare your current compressed air blow off or application method to one of our engineered products, we can do that AND provide you a report which includes side by side performance comparisons (volume of flow, noise, force) and dollar savings. This refers to our free Efficiency Lab service.

EXAIR's Efficiency Lab is a free service to all US customers.

EXAIR’s Efficiency Lab is a free service to all US customers.

If you already know how much air you are using, you can use the Air Savings Calculators (USD or Euro) within our website’s knowledge base. Just plug in the numbers (EXAIR product data is found on our website or just contact us) and receive air savings per minute, hour, day and year. We also present a simple ROI payback time in days.

Now, back to the math behind our calculation.
Cost ($) =
(bhp) x (0.746) x (#of operating hours) x ($/kWh) x (% time) x ( % full load bhp)
——————————————————————————————————————————
Motor Efficiency

Where:
bhp
— Compressor shaft horsepower (generally higher than motor nameplate Hp)
0.746 – conversion between hp and KW
Percent Time — percentage of time running at this operating level
Percent full-load bhp — bhp as percentage of full load bhp at this operating level
Motor Efficiency — motor efficiency at this operating level

For an average facility here in the Midwest $0.25/1,000 SCF of compressed air is accurate.   If you would like to attempt the calculation and or share with us your findings, please reach out to us.   If you need help, we are happy to assist.

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

 

There’s More Than 1 Way To Blow Some Air

Just today I spoke with a customer who is threading the ends of pipes and needs to blow the coolant and chips out of the threads.   The pipes range from 4″ to 9 – 5/8″ Diameters.  They are all threaded then fed into a trough and pushed down line to the next operation.

PEO ACWA

A machine with an out-feed roller conveyor similar to the pipe threading machine mentioned.

The photo above is not the exact machine but you can see where if this was used to process piping the different diameter pipes would all sit at the same level.  One option could be to use a Super Air Wipe  for this application but then the smaller diameters would not pass through the center of the Air Wipe, instead they would pass through the bottom half of the airflow which may not give optimal performance. Instead, I suggested to use 4 of our 6″ Super Air Knife kits and 2 of our Electronic Flow Control units.

 

2 - 110006 - 6" Aluminum Super Air Knives coupled together w/  a 110900 SAK Connector Kit

2 – 110006 – 6″ Aluminum Super Air Knives coupled together w/ a 110900 SAK Connector Kit

I  suggested that we make two pairs of knives for this blowoff setup by coupling two of the 6″ Super Air Knives together.  Once they are coupled together like is shown above, we could mount the two coupled air knives vertically along the trough and blowing at a 45° angle toward the center of the conveyor.  The plumbing of the two bottom knives will be to one EFC while the top two knives will be plumbed to the other.    The sensors will then be set up at two different heights, lower knives to sense the bottom of the pipe and the upper knife sensor will be set just above the bottom 6″ knife.

The reason for using 4 – 6″ Super Air Knives and 2 EFCs instead of 2 – 12″ Super Air Knives and 1 EFC is to save the most compressed air possible.   By enabling them to turn the top two 6″ Super Air Knives off automatically when they are running below a 6″ diameter pipe.  Then when a larger pipe is processed the top knives will also kick on with the lower knives and provide a uniform blowoff of the product.

So if you have multiple sizes of product being processed on the same line and don’t think any one solution will work, contact us and see if we can’t come up with our own recipe.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF

 

Machine image courtesy PEO ACWA Creative Commons

 

Pressure Profile: Where to Measure Your Air Pressure

Generic Layout drawing of compressed air piping system.

In order to fully understand how efficient your compressed air system may be, you will need to generate a system pressure profile at some point.   This is a list or diagram of what pressures you have in your compressed air system at specific locations, as well as the pressure required by all the demand devices on your compressed air system.

One of the reasons for the pressure profile is that you may have an application that is far away from the compressor but also highly dependent on a specific operating pressure.   You may also find an application that, due to pressure losses within the system, causes an artificially high pressure demand.

The list below gives the critical points for measuring your compressed air system profile.

  1. At the air compressor discharge. (If using multiple compressors, measure at each.)
  2. If dryers of any type are being used after the compressor measure downstream from the dryer.
  3. Downstream of each filter. (If a particulate filter and oil removal filter are being used it is best to measure downstream of each individual device.   This is to tell when you have more than a 5 psig pressure drop or a clogged filter.)
  4. After each intermediate storage device, such as receiver tanks.
  5. At the point just before the main line from your compressor room branches off to distribution.
  6. The furthest point of each header line you have installed.
  7. On both sides of every filter/regulator units that are at high pressure point of use applications.

To give you an idea of why it is so important to measure these locations, take a look at the blogs we have posted on pressure drop. (Link Here)  As you can tell by the list of blogs that comes up, pressure drop through piping can really cause a lot of wasted energy in your compressed air system.   If you can get a good base line measurement by utilizing a pressure profile then you can start the process to optimizing your compressed air system.

6 steps

The EXAIR Six Steps To Optimizing Your Compressed Air System.

 

If you would like to discuss this or any of the other 6 steps to compressed air optimization, feel free to contact us.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF

Don’t Waste Your Money (or Compressed Air)

This week I worked with a customer trying to separate a 135” wide paper sheet from a fabric used for commercial paper towel machines. They were using 45 spray nozzles, spaced 3” apart on a manifold, to blow off the sheet which then would fall into a chute below. The nozzles were doing the job but they were growing more concerned with their compressed air expense for this process.

Competitor Nozzle

45 pcs. of this nozzle were replaced with EXAIR’s Super Air Knife to save $87,000 annually!

The current nozzle setup was also causing another issue – there were “empty voids or gaps” in the airflow between the nozzles, which resulted in creases in the fabric. They were considering adding more nozzles and spacing them 2” apart but that was only going to increase their compressed air expense, so I asked them to consider our Super Air Knife. They were intrigued but were concerned that they would consume more compressed air, you’ll see below that the Super Air Knife uses less air and eliminates the creasing problem because the Super Air Knife provides a continuous airflow from end to end.

After reviewing the specs, I determined that each nozzle was consuming 29.6 SCFM @ 90 PSIG of compressed air, meaning they were consuming 1,332 SCFM for the process (29.6 SCFM x 45 nozzles).

I recommended using (2) 48” and (1) 42” Aluminum Super Air Knives, coupled together, to provide a 138” laminar sheet of airflow. I chose these In Stock – Ready to Ship lengths, so the customer wouldn’t have to order a special length even though that lead time would have only been 3 days. The Super Air Knife only consumes 2.9 SCFM @ 80 PSI (per inch of knife), and provides a laminar sheet of uniform airflow with a 40:1 air amplification rate, which would not only perform in the application, but also provide the needed compressed air savings.

SAK

What a great replacement for multiple nozzle manifolds! How SAK works

Using the above air consumption for our Super Air Knife, 2.9 SCFM @ 80 PSI (per inch of knife or 2.9 SCFM x 138”), I calculated the Super Air Knife consuming 400.2 SCFM @ 80 PSIG.

Since their process is a 24 hour operation, Monday – Friday, every week of the year, I calculated the following (* Using $ 0.25 per 1000 SCF used):

  • 45 nozzles x 29.6 SCFM = 1,332 SCFM @ 90 PSIG
  • 1332 SCFM (current) – 400.2 SCFM (EXAIR proposed) = 931.8 SCFM saved
  • 931.8 SCFM x 60 minutes x $ 0.25 / 1000 SCF = $ 13.98 saved per hour
  • $ 13.98 per hour x 24 hours = $ 335.52 saved per working day
  • $ 335.52/day x 5 days = $ 1,677.60 saved per week
  • $ 1,677.60 week x 52 weeks = $ 87,235.20 in yearly savings

After reviewing this savings with the customer, they mentioned they were glad they called because they were looking at increasing their air compressor size or purchasing another auxiliary unit. Now, they were not only going to save money on their current process, but they were eliminating the need to spend major funding on another compressor – not to mention the saved compressed air being available for future growth and processes.

At EXAIR, we commit to providing our customers with solutions to optimizing their current compressed air system.

Please contact an Application Engineer for optimizing your system today.

Justin Nicholl
Application Engineer
justinnicholl@EXAIR.com
@EXAIR_JN

 

Combat Rising Energy Costs

It has been a long cold winter this year and I just got my utility bill in the mail. I almost fainted. Sad to say, I’m told that I should expect rising utility costs due to the increased cost of producing electricity.

Rising utility costs has a trickle down effect and no one is exempt. Manufacturers, retailers, farmers, food service, etc. all share the same duress. As the cost to do business increases, prices go up. It’s almost like I’m taking the hit twice.

A recent survey by the U.S. Department of Energy showed that for a typical industrial facility, approximately 10% of the electricity consumed is for generating compressed air. For some facilities, compressed air generation may account for 30% or more of the electricity consumed. Compressed air is an on-site generated utility. Very often, the cost of generation is not known; however, some companies use a value of 18-30 cents per 1,000 cubic feet of air.(ref. DOE)

bog200x181_e7daad

With that being said, EXAIR is your partner in compressed air energy savings. Our products are designed to use less compressed air for blow off, cooling, and non contact motion control. It is as simple as finding the leaks and making the repairs, controlling the air use, and upgrading to efficient engineered blow offs. Request your copy of our blow off guide [link]

Joe Panfalone
Application Engineer
Phone (513) 671-3322
Fax (513) 671-3363
Web: www.exair.com
Twitter: EXAIR_JP

Blogheader_2014

Floating Plates With Compressed Air

Yesterday, I had the opportunity to work with a customer who was familiar with our product and was looking to roll out EXAIR’s Super Air Nozzle in various parts of the plant. Before purchasing our products, the customer was using (4) open 5/16″ aluminum tubing to move or “float” a 12 inches by 12 inches plate of aluminum. This plate is .187 inches thick and needed to be moved six inches against the wall of their conveyor. The (4) open tubes moved the plate, but the customer had some safety concerns. First, the open pipes violated the OSHA standard 1910.242(b) that any open pipe that can be dead ended must only be pressurized to 30 PSIG. Second, to move the plate successfully the shop pressure needed increase to 100 PSIG which increases the amount of load on the compressor and could lead to higher maintenance in the future. Finally, the noise level of open pipes was well over 110 dBA which was another OSHA violation.

1132ss

Considering all of these problems the customer contacted me, looking for an air nozzle to use instead of the open pipe. After a short discussion we decided to try (3) HP 1125 nozzles. Once the customer installed the air nozzles, they only used 2 of the air nozzles, and they were able to move the plate easily across the conveyor. This netted them several key results. The most noticeable at the plant was how quiet the operation became. Instead of dealing with noise levels in excess of 110 dBa (which is equivalent to the noise level of a turbo-fan aircraft at take off)  the HP1125 comes in at 83 dBA which is roughly the noise of a milling machine.  This was much more pleasant to the operator and any plant passersby.  The most important was the operation now complied with OSHA safety requirement of 1910.242(b).  Because of the width of the Flat Nozzle and the overhang of the cap, the nozzle can not be dead ended.  Since the unit can not be dead ended, pressure above 30 PSIG can be safely used.  Finally, the most economically result was that the air savings for the units.

The 5/16 tube had an ID of .183 and was 18″ long. When supplying it with 100 PSIG of compressed air, it will flow 22.8 SCFM of compressed air, so the customer was using 91.3 SCFM. The HP1125 nozzle uses 37 SCFM at 80 PSIG, so they were able to use 74 SCFM, which means each minute they were using 17.3 fewer cubic feet. At a cost of $0.25 per 1,000 Cubic feet, the HP1125 saved $0.26 per hour or $6.23 per day or $1,557 per year with 250 working days.

Replacing (4) open tubes with (2) HP1125 Flat Super saved $1,557 per year in compressed air savings, an OSHA violation, employees hearing, and lowered the system pressure from 100 psi to 80 psi.  Needless to say the customer was sold on the benefits on our products, and is looking for any more open pipes in his facility.

Dave Woerner
Application Engineer
Davewoerner@EXAIR.com
@EXAIR_DW

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