Return On Investment: Does It Matter, And How Much?

I have a friend who participates in a process known as “extreme couponing.” She has multiple subscriptions to the Sunday edition of our major newspaper, and a couple of local papers that also have coupon inserts. When I see her at the grocery store, she’s got two 4″ binders full of baseball card holders, all stuffed with multiples of clipped coupons, organized by store aisle. The insane amount of money saved is a big factor in her being able to be a stay-at-home mother, which is something else she’s pretty good at.

If you get stuck at step one…or even two…extreme couponing may not be for you!

Now, extreme couponing isn’t for everyone. Even beginners to the process can buy a year’s worth of paper towels for next to nothing. However, that may take up so much room in their house that they need to rent a storage facility for other belongings that folks like you and me simply keep in the garage or basement. It also takes a LOT of time and effort to do it right – as well as discipline. Saving half (or more) on a truckload of stuff you don’t need (or will never use) is a waste of money, time, and space. In fact, I know people who have abandoned extreme couponing for those very reasons…the “return on investment” just isn’t there.

That’s the deal in industry too.  Anyone tasked with finding and exploiting efficiencies – or finding and eliminating inefficiencies – is going to be looking at return on investment.  Like extreme couponing, though, it has to make sense in all aspects of the operation.  For example:

*An OEM taking advantage of a quantity discount for components or subassemblies has to not only have the storage space available, but also has to consider the turnover rate…it costs money to keep product on the shelf.

*A machine shop considering a tooling upgrade has to compare the cost difference with the increased performance and/or lifespan of the “new and improved” product.  A tool that costs 10% more but lasts twice as long is probably a good deal.  A tool that costs twice as much but lasts 10% longer might not provide the “bang for the buck.”

*Any facility, before switching a service or utility provider, will “run the numbers” on promotional rates, contract terms, etc. before making a commitment.

Unlike extreme couponing, EXAIR makes it easy – and beneficial – to evaluate the return on investment:

*Our catalog (if you don’t have the latest, get it here) has complete performance & operational data on all of our products.  This is great if you know what you want it to do.

*If you’re not quite sure, our catalog also has a good number of actual application write-ups for most of our Intelligent Compressed Air Products.  You may be able to find something that’s similar to what you want to do, and further inform your selection from there.

*Once you’ve chosen a product, you can use the Calculator Library on our website to determine actual dollar cost savings associated with replacing a current compressed air powered device with an EXAIR product.

*Application Engineers are available to discuss your application and/or product selection via phone, email, or Live Chat.

*No matter how detailed the discussion, and how confident a plan we may make, the age-old saying about how it “looked good on paper” proves itself every now and again.  When this happens, all catalog products are covered by our 30 Day Unconditional Guarantee.  If you’re not satisfied for any reason within 30 days of purchase, we’ll arrange return for full credit.

*Let’s assume that we’re pretty good at this (because we are) and it actually DOES work out (because it usually does) – we can calculate your new (and improved) operating costs and compare them with the cost of your previous devices.  If you don’t have the instrumentation (flow meters, sound level meters, etc.,) this is a free service we provide in our Efficiency Lab.  Send it in, and we’ll do a full performance test & issue a comprehensive report, all at no charge.  And if you qualify for a Case Study, we can even save you some money on your next order.  Contact me for more details if you’re interested.

Free testing. Verifiable data. EXAIR Efficiency Lab.

Russ Bowman
Application Engineer
EXAIR Corporation
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Coupon Pile Stock Photos courtesy of Carol Pyles  Creative Common License

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

 

Outfitting Your Receiver Tank

Intermediate storage is a key component to your compressed air system.  Intermediate storage is step five in the Six Steps to Optimizing Your Compressed Air System.  Receiver tanks can also be the difference between having to buy a new compressor or outfitting the application with a receiver tank.  Today I would like to discuss some of the accessories you might need to outfit your receiver tank with.   Below is a picture of a receiver tank that Professor Penurious has outfitted.

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This is a unit that we transport around the lab to help with different tests.  As you can see there are more ports than needed on the EXAIR 60 Gallon Receiver Tank, so we have installed plugs in the unused ports, while using pipe unions and ball valves to make quick and simple installation into many different areas.

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Another key item to have is pressure relief valve, this needs to be paired with the receiver tank to ensure you are operating within the limits of the tank.

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Another key component is a drain valve on the bottom of the unit.   This is to help drain any moisture that has accumulated in the tank over a period of use.

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The final piece that is recommended to install on an intermediate storage tank would be a pressure gauge.   This is so you can ensure the tank is holding pressure over time, along with allow you to see your operating pressure.

If you have any questions about how intermediate storage can help your compressed air system, contact us.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF