Evolving technology, changing consumer demands and tightened regulations are just a few of the forces behind the ongoing transformation of the global manufacturing market.

To stay competitive, manufacturing companies are striving to increase productivity and reduce downtime in order to meet deadlines while still maintaining product quality.

Many companies already apply Total Cost of Ownership (TCO) evaluations to measure operational performance, knowing that reducing TCO over the lifetime of machinery enables them to extract the best possible value from the asset. However, the impact of lubrication on TCO is too often underestimated.

An international survey of manufacturing companies commissioned by Shell Lubricants found that while the majority (59%) of companies recognise that effective lubricant selection and/or management can help reduce costs by 5% or more, they undervalue the opportunity – fewer than 10% realise that the impact of lubrication could be up to six times greater1.

Our Shell Lubricants team believe lubrication can deliver significant business value. When considering the potential savings, we expand upon the typical definition of TCO to include productivity, and the costs of lost production resulting from equipment downtime2.

In general, the cost of lubricants accounts for around 1% to 2% of a manufacturing company’s total maintenance expenditure. Shell Lubricants technical experts have helped manufacturing companies achieve savings that equal their total lubricants spend and further impact up to 30% of maintenance budget, by adopting the right approach to lubrication. Savings derive primarily from lower maintenance costs, reduced equipment downtime
and productivity improvements.

There are two key elements to seizing this opportunity; the first is selecting the right lubricant or grease, the second is effective lubrication management. Have a look through this site as we explore the substantial business benefits possible from effective lubricant procedures and hear case studies that illustrate how manufacturing companies have successfully worked with Shell Lubricants to upgrade their lubrication and extract value by reducing TCO and improving equipment productivity.

Yin Jie, Shell Lubricants Global Sector Manager for General Manufacturing.

Lubricant selection

By selecting the right lubricant, you could improve the performance of your products and realise significant cost savings.

How to select a lubricant
  1. This study commissioned by Shell Lubricants and conducted by research firm Edelman Intelligence, polled 493 decision-makers in the manufacturing industry in eight countries (Brazil, Canada, China, Germany, India, Russia, the UK and the US) from November to December 2015.
  2. Total Cost of Ownership (TCO) is defined by Shell Lubricants as the total amount spent on industrial equipment, including cost of acquisition and operation over its entire working life, including costs of lost production during equipment downtime.

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