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

Many Ways to $ave on Compressed Air Costs

Using compressed air in the plant is common for many types of processes.  Typical uses are drying, cooling, cleaning and conveying. Compressed air does have a cost to consider, and there are many ways to keep the usage and the costs as low as possible.  The first step is to use an EXAIR Intelligent Compressed Air Product, which has been engineered to provide the most performance while using the least amount of compressed air. The next step is to control the use of the air, to only have it on when needed.

EXAIR offers the EFC – Electronic Flow Control.  It offers the most comprehensive method to maximize the efficiency of compressed air usage.  It combines a photoelectric sensor with a timing control that operates a solenoid valve to turn on and off the air as required. With 8 different program types, an on/off mode that works with any process can be programmed ensuring that the minimum amount of compressed air is used.  You can use the online EFC Savings Calculator to see how quickly the savings add up!

EFCp4

EFC – Electronic Flow Control

Another method would be to use a solenoid valve with some other method of control. Depending on the process, the solenoid could be energized via a machine control output, or as simple as an electrical push button station. EXAIR offers solenoid valves in a variety of flow rates (from 40 to 350 SCFM) and voltages (24 VDC, 120 VAC and 240 VAC) to match the air flow requirements of the products we provide, while integrating into the facility and available supply voltages.

For control of the Cabinet Cooler Systems, the ETC – Electronic Temperature Control, uses a thermocouple to measure cabinet temperature and cycle the system on and off to maintain a precise cabinet temperature, and provides a digital readout of the internal temperatures and on the fly adjustment.  Also available is the Thermostat Control models, which utilize an adjustable bimetallic thermostat to control the solenoid valve, also cycling the unit on and off as needed to maintain a set cabinet temperature.

ETC CC

ETC – Electronic Temperature Control

There are several manual methods that can be used to control the compressed air.  A simple valve can be used to turn the air off when not needed, whether at the end of the work day, at break time, or whenever the air isn’t required.  We offer several options, from a foot controlled valve, to a magnetic base with on/off valve, to a simple quarter turn ball valve.

footpedalvalve (2)dualstand (2) manual_valves (2)

 

To discuss your processes and how an EXAIR Intelligent Compressed Air Product can control the air supply and save you money, feel free to contact EXAIR and myself or one of our other Application Engineers can help you determine the best solution.

Brian Bergmann
Application Engineer

Send me an email
Find us on the Web
Like us on Facebook
Twitter: @EXAIR_BB

 

 

Money For Something…Good

My blog a few weeks ago was all about saving, and finding, money. I hadn’t exactly thought about where it was going to go…then I went to a meeting on Sunday afternoon, for Scouts who plan to attend the 2013 National Scout Jamboree. This is an event put on by the Boy Scouts of America every four years, and it isn’t your typical Scout Camp.

The National Jamboree dates back to 1937, and is historically attended by tens of thousands of Scouts, and visited by hundreds of thousands of guests, often including the President of the United States. It’s been held for over 30 years now at Fort A.P. Hill, an Army base in Virginia, but is moving next year to the brand-new Summit Bechtel Family National Scout Reserve, in West Virginia, which is the BSA’s newest High Adventure Base. Scouts will participate in a range of activities, such as rock climbing, zip lines, mountain biking, shooting sports, even SCUBA diving.

As you might imagine, this isn’t cheap, but it’s a once-in-a-lifetime opportunity for my oldest son, who is just old enough to attend. Now, I’m totally sold on the Boy Scout program, so for me, I can’t think of a better “re-purposing” of funds that used to be spent on cable TV.

This was a great, and timely, reminder for me – not only of why it’s important to save money, but how important it is to evaluate what you’re spending money on, and what you get for it. In this case, I’m trading instant mindless entertainment and a promotion of a sedentary lifestyle for an opportunity to instill lofty values and a sense of adventure in a young man who is otherwise inundated by a culture of video games and computer screens. I expect the return on this investment to be priceless.  I’m already thinking about 2017, when his younger brother will be old enough to go.

At EXAIR, we’re focused on providing solutions, and helping you optimize your compressed air use. Consider this Blowoff Comparison, putting our Super Air Knife side-by-side with several other typical blow-off methods.

Where else can your company spend that extra money? I hope you make it count.

Russ Bowman
Application Engineer
EXAIR Corporation
(513)671-3322 local
(800)923-9247 toll free
(513)671-3363 fax
Web: http://www.exair.com
Blog: https://blog.exair.com/
Twitter: twitter.com/exair_rb
Facebook: http://www.facebook.com/exair

Money For Nothing

The Bowman household is cutting expenses…we’re not in a financial crisis or anything; we just want to have money to spend on stuff other than what we’re spending it on now, and we’ve decided to fund new expenses by shedding current ones. It’s as much about priorities as it is about money, but I won’t lie…it feels good, having money at the end of the month, as opposed to having month at the end of the money.

We pulled the plug on cable TV this weekend, and hooked our TV up to this peculiar steel wire contraption up on the roof…apparently, our ancestors had some long-forgotten form of wireless technology, and it still works! We get about 50 channels (which was impressive, as I was expecting no more than a dozen, max), as opposed to the hundreds we had with cable, but curiously, we’ve found the same number of channels that are actually worth watching as we had with cable.

I called our cellular phone service provider as well, to determine if we were on the least expensive plan that still met our needs.  As it turns out, we are.  The Customer Service Representative, however, said I might be eligible for a promotion that could save me $10/month or so for the length of the promotion – she wasn’t sure what that was, so I was transferred to another representative. THAT person said I wasn’t eligible for the promotion. I just said “easy come, easy go,” and we took a moment to joke about people who might get irate about not getting something – for free –  that they didn’t have before they called. As we talked, she found that there WAS a promotion I was eligible for: instead of the $10/month promotional credit on ONE line, she found one that gave me a $10/month credit on EACH of our THREE lines for a couple of months. Seems you can catch more flies with honey than you can with vinegar. And sixty bucks is sixty bucks…honey well spent.

Also on my soon-to-call list are my mortgage company and insurance agent. I haven’t talked to him since my last claim-related issue, but on the other hand, it’s been years since we talked…I’m optimistic.

If you’re looking to free up some household budget, I hope my stories might be helpful to you. If you’re ahead of me, feel free to share how you’re doing. It’s a good day when we all learn something, right?

However, if you’re looking to free up some compressed air system “budget,” EXAIR can help, for sure. We can start with our Optimization product line, and maybe even talk about the Six Steps To Optimizing Your Compressed Air System. If you’re using open-end pipe blowoffs, let’s talk about Super Air Nozzles. Or Air Knives. Or Air Amplifiers.

Lastly, if you’re shopping for an Industrial Vacuum, and don’t mind free stuff, we’re giving away Vac-u-Guns with Industrial Vacuum purchases through the end of May.  Just the latest in a long line of promotions; don’t forget to check back later and see what the summer promotion might bring…for free.

Russ Bowman
Application Engineer
EXAIR Corporation
(513)671-3322 local
(800)923-9247 toll free
(513)671-3363 fax
Web: http://www.exair.com
Blog: https://blog.exair.com/
Twitter: twitter.com/exair_rb
Facebook: http://www.facebook.com/exair

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