Purchasing gear lubricants: be careful when playing the numbers game
Written by John Sander
10. Evaluate Price
Evaluating the price is the last step in this process for a reason. Unfortunately, many gear oil purchasers evaluate price first, and sometimes it is the only number they evaluate. This can be a costly mistake. According to Mike Johnson, lubrication consultant, trainer and author:
"Performance lubricants are often not considered for use because of price objections. Maintenance costs range from 5-15% of a plant’s cost of manufacturing, depending upon the industry. Lubricant purchases represent only 1-3% of maintenance expenses. Yet, the portion of the budget that can be directly impacted by lubricant expenditures can represent about 35% (20% from parts replacement, plus 15% from lube program routine and overtime repair labor). The cost-to-cost leverage factor for lubricant savings opportunity vs. lubricant expense is an astounding 35:1. Investment in either process or product improvements can produce returns at several hundred percent investment with just a little effort". See Figure 3 for an illustration of this breakdown.
While consideration of price is a valid part of the lubricant selection process, it should always be the last step.
By the time steps 1-9 have been completed, it is likely that the most appropriate lubricant for the gear application has become apparent. Yet, if there are still several products that appear to be equivalent, then price should play into the selection process. The highest priced lubricant is not necessarily the best for a given application. For example, if a gearbox has leaking problems, it is not likely that an expensive synthetic lubricant will provide value. On the flip side, this does not mean you should purchase the least expensive gear oil and ignore the leaking gearbox. In a case such as this, it is a maintenance issue and not a lubricant issue. As described by Mr. Johnson, leaving a problem like this unresolved can cost the company much more in the long run than initiating good maintenance practices and choosing high performance lubrication products.
