How to cut Your Hydraulic oil and PM labor costs by 80%

If computers are the “brain” then hydraulic systems are the heart, circulatory system and muscle for most robotics, CNC machines, plastic injection molding machines, and many other industrial machines and systems. Just as electrical storms can “fry your brains,” hydraulic contamination; water, dirt, acids, and varnishes (cholesterol) in your circulatory system, cause over 80% of all hydraulic system downtime, malfunctions and early death to your machines.

The Problem:

Hydraulic contamination is much more critical than contamination in your car oil. However, both the oil filter in your car and your hydraulic systems are thin “paper vane filters” they stop dirt larger than a certain micron size, but they do not stop water and they do not stop acids and varnishes from building up and damaging your mission critical machines. So, every year you have to change the oil and the filter and you move on with life. Right?

1. First Problem: These cycles of clean oil to dirty oil, clean oil to dirty oil, allow periods of stress and wear – malfunctions and failures.
2. Second Problem: The fivefold costs of replacing hydraulic oil;

1. Cost of the oil,
2. Cost of old oil disposal,
3. Cost of technical labor to change oil & filter,
4. Likely cost of failures when dirt is introduced into the system as filters are changed, and
5. Lost production from oil change downtime.

Because of these costs, along with the logistics of every day operations, Dept. politics and PM risks, oil changes get ignored or past over, time-after-time. Even if changes are done on schedule, the system suffers from problem #1 (above).

A Solution:

Amemco will analyze, specify and provide a cost effective solution, based on your hydraulic system size, oil type, pressure, flow rate, and duty cycle. The Amemco solution will allow you to:

1. Save the cost of new hydraulic oil and oil filters at 9 out of 10 oil changes,
2. Save labor costs for changing oil & filters,
3. Eliminate oil disposal costs for 9 out of 10 oil changes,
4. Avoid 80% of future malfunctions, failures and downtime,
5. Prolong machine life,
6. Eliminate machine downtime and lost production for changing of oil & filters,
7. Keep contamination from being introduced into the system (which now occurs during system inline filter changes),
8. Eliminate machine wear, damaged gaskets, hosing, solenoids, servo valves etc.,
9. Eliminate downtime and scrap parts due to #4,
10. Eliminate future maintenance repair time due to #4,
11. Avoid lost productivity due to #4, #5, and #7,
12. Avoid costs of early machine replacement due to #4 – #7.

You can easily calculate the above savings and increased productivity. Return on investment (ROI) is usually 6 – 12 months. Call Amemco at 801-859-2073 or e-mail us to discuss your application and needs.

__________________________________________

What Others Have Said About Us 

“By following your program we have cut equipment malfunctions and downtime to near zero. Thanks, we will expand application of these most cost effective concepts.”
- Dick Kohli (Maintenance Manager)
Minster Machine Tool 

Think Profits

How To Increase Reliability & Profits in a Stagnant Economy

Which is the best way to increase profits?

Should you first focus on;

1. Increasing your sales? or
2. Reducing your costs?

The table below will help you answer:

1. What is your net profit percentage?
2. What increase in sales is needed to increase profits by $10,000?
3. What amount of cost reduction is required to increase profits by $10,000?

% Net Profit from Sales	Required Sales Increase	Required Cost Reduction
15% 12% 10% 8% 6% 5% 4% 3% 2% 1%	$66,667 $83,333 $100,000 $125,000 $166,667 $200,000 $250,000 $333,333 $500,000 $1,000,000	$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

Of course when the economy is growing or your market niche is growing, every company wants to expand sales and market share. But, what is the most immediate and long lasting way to increase annual profits? Reduce costs?

Amemco will help you sharply increase profits and uptime by eliminating 70% – 92% of your unscheduled equipment downtime and related overhead – within 30 days! A side benefit is that our process hardens your systems against terrorists attack, heat, lightning, power surges, as well as other catastrophic events and chronic stresses. The process readies your new and old equipment for true Lean Manufacturing capability and Six Sigma reliability, uptime and increased profits.

Why have Amemco help maximize uptime?

Because, Amemco has over 25 years of experience in minimizing costs by maximizing equipment and systems uptime for medium and large companies like yours, nation wide. This expertise is needed for just a few weeks to turn things around and put you on a permanent course of increased profits with improved equipment uptime and productivity. If you had people with this same level of expertise, they should have made these improvements already. If they haven’t done it already, it is usually because they won’t or they don’t know how. Being an outside consulting firm, Amemco sees no advantage or reason for frequent malfunctions, failures and downtime. Our mission purpose is to eliminate downtime and increase client profits.

Your ROI for Engaging Amemco?

This is a simple calculation. Just subtract our consulting fee and the cost to install the resulting recommendations from the profits reaped by increasing uptime, productivity and eliminated downtime. To complete this calculation you simply need to get a good handle on your “cost of downtime”:

Total Cost of Downtime = Repair parts & labor + Scrap & Error Costs + (Hours of DT x Hourly cost of $Downtime)

Compare or average this with the cost of Outsourcing:

Hourly cost of $Downtime = Cost of outsourcing (the hourly shop rate) – less 10%

Calculate your Savings (increased profits) by looking at the difference between your current Total Cost of Downtime or Average $DT above and the reduced downtime costs enjoyed by other Amemco clients:

• 50% reduced machine tool downtime
• 80% reduced hydraulic systems repair costs & downtime
• 92% reduced D.T. on electronic, computer, automation, telecom systems, etc.

If you had done this two years ago, what would your profits have been by now?

Stop to Calculate here:

Downtime – Your #1 Overhead Expense

Commonly maintenance downtime is the companies largest overhead expense. Yet maintenance costs are just a fraction of the associated downtime losses. Both maintenance costs and downtime losses can be shifted to your bottom line profits, when equipment reliability and uptime are maximized.

What is it Amemco really does to boost uptime?

1. We first talk with you by phone to assess your potential savings and need.(no charge – just call: 801-859-2073)
2. If needed, we then conduct a survey of your facility & equipment to analyze needs and prescribe solutions.The first 3 hours in your facility we hold a seminar to orient your management and technical personnel. Sharing expertise with your people and listening to them helps maximize the benefit of the survey to create a more immediate jump in your profits.
3. We then produce a written report detailing system by system, machine by machine, what must be done to minimize unscheduled malfunctions, failures, scrap, re-work, and downtime by as much as 92%.
4. We then guide you through implementation,
5. Act as technical support till project completion, then help measure and report your improvements.
6. Retain Amemco for 30 days. It doesn’t cost, it pays.

E-mail us to request Amemco’s Free seven (7) page report:

• “How To Eliminate 92% of Your Unscheduled Equipment Donwtime – within 30 Days!” or

• “Lean Maintenance via Six Sigma DMAIC”