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

Send me an email
Find us on the Web 
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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

 

 

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

 

Where Does 25 Cents For 1,000 Standard Cubic Feet Of Air Come From?

Wasting compressed air 2

Being an Application Engineer at EXAIR you tend to do a good amount of return on investment (ROI) calculations.   This is mainly to tell customers just how fast installing an EXAIR product on their system is going to pay its purchase price back and start saving them money.

In order to do these calculations there are several variables we must know.   The list is below.

  • Cost of EXAIR Product (This is an easy one for us to know.)
  • EXAIR Product Consumption (Another easy one!)
  • Current Product Consumption (If this is an unknown, we will test it for free!)
  • Cost of Compressed Air / 1,000 SCF (This is the most common unknown.)

With these four variables we can calculate the amount of air and the amount of money the EXAIR product will save over an existing non-engineered blowoff.   Let me address the two variables which have to come from you, the customer.

Current Product Consumption – If this value is not known please don’t guess at it.  We offer a free service which we refer to as our Efficiency Lab where you send us in your existing blowoff device and we will test it for force flow and noise level.   If you don’t know what pressure you are operating the piece at we will help you find out how to get that and then we will test our products at the same pressures.   This way you get a true apple to apples comparison.   Then, once we are done testing, you will get a recommendation from us in a formal report as to what EXAIR product will best replace your existing product.  Then we will pay for return shipping of your blowoff device back to you. So, if you don’t know how much air you are currently using then give us a call.  We will figure it out for you.

Efficiency Lab

The EXAIR Efficiency Lab is FREE!

Cost of Compressed Air/ 1,000 SCF – This is more often than not, the unknown variable in the equation.  The good news is there is a general standard assumption of twenty-five cents per 1,000 Standard Cubic Feet of compressed air.   This works out to be around 8 cents per kW/hr.  So even if you don’t know what you pay to compress the air, if you know what you are paying per kilowatt hour for your energy then we can calculate within reason what it costs for you to generate your compressed air. For reference, 8 cents per kilowatt-hour falls between the average US cost per kilowatt hour for commercial end-users (10.7/kWh) and industrial end-users (6.9/kWh).*

The best part of all is…EXAIR has a calculator available right on our website which provides air and dollar savings per minute, hour day and year as well as a payback in days for the EXAIR product purchase. On top of that, any step along the way that you aren’t sure of, we will help you out for free, even testing your product!

In case you would like to see the math, the formula used is below.

Basic Equation To Go From Cost Per kiloWatt Hour to Cost Per 1,000 Standard Cubic Feet of Compressed Air

Basic equation to go from Cost Per kiloWatt Hour to Cost Per 1,000 Standard Cubic Feet of Compressed Air

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

*latest U.S. EIA report here

 

 

 

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

 

EXAIR Receives the 2012 Environmental Protection Award

I know, I know, it’s not good to boast or brag.  I don’t write this blog to brag about how we maintain such a high service standard, product quality or 99.9% on time shipping record.  I write this to thank all of our customers who have voted for us and helped us to reach this point in our life as a company.   With the help of our customers we brought home another award.

2012EP_trophy330pxw

This is the 2012 Environmental Protection Award for New Products in the Energy category.  The EXAIR product that brought this home is our Data Logger for the Digital Flow Meter.

dfmpp_datalogger300x300

This product is not only able to help you monitor your compressed air use, but quantify and track it.  This is the perfect way to justify installing the Intelligent Compressed Air Product to your plant manager.

dataloggerPRce_559wide

It is one of thousands of products that EXAIR brings to you with the highest quality and customer service standards.  Thanks for all the support and we can’t wait to see what the future holds.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF

Go OSHA Safe & Save Money in the Process

Another customer has contacted EXAIR and taken advantage of our FREE Efficiency Lab.  This customer has approximately 150 homemade magnetic blow offs throughout their facility.  They are being used to help move and push paper down the lines.

This unit was taken into the lab and put through the paces. The first being flow; The drilled hole in the pipe plug measured out to be a .061″ diameter hole.  The customers operating pressure for these units is 50 PSIG, so all testing was performed at 50 PSI at the unit.  The unit was flowing 3.46 SCFM per nozzle.   We then tested the sound level, at a distance of 3′ the unit measured 77.5 dBA, then force measured  3.2 oz at 12″ away from the homemade blow off.

Because the homemade blow off was a 1/8″ MNPT pipe plug it’s extremely easy to replace the unit with one of our Atto Super Air Nozzles.  The Atto Super Air Nozzle is a good fit for this application, even with a slightly lower force value, since we have determined the application can be successful at lower force values. The Atto Super Air Nozzle will also produce OSHA compliance for this blow off process. For this application the Atto Super Air Nozzle was tested at 50 PSIG inlet pressure and consumed 1.89 SCFM, created a 63.5 dBA noise level, along with gave 1.6 oz. of force 12″ away.

This calculates to saving 1.57 SCFM per nozzle, reducing the ambient noise level by 14 dBA, and still being able to get the job done.  When you calculate the savings for all 150 nozzles being operated at once the customer will save $3.53 per hour of operation.  Considering these nozzles run whenever  product is present that means the customer will save $28.26 per 8 hour day.

On top of the cost savings the customer gains the safety of the Atto Super Air Nozzle.  Their original blowoff device does not meet or exceed the OSHA standard for 30 PSI dead-end pressure.  Because the piece has a single hole the risk of an air embolism is there.  With the EXAIR Pico Super Air Nozzle we meet or exceed the OSHA standard for dead-end pressure to help keep the operators safe and in a quieter environment.

If you would like to take advantage of the EXAIR Efficiency Lab feel free to fill out the form and then send in your sample.  We’ll get it tested and give you a full report on how we can help.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF

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