Turning One Crusher into Two: Maximizing Crusher Lifetime: The Key to Boosting EBITDA in the Aggregate Industry
Christopher Morrissette
Transforming Maintenance and IoT Investments into EBITDA Growth | 5+ Years Manufacturing Factory Floor | 20+ Years Working with Manufacturing Clients #operations, #reliability, #TPM, #maintenance, #IoT #MEDDPICC
TLDR:?"If you can't be with the one you love, love the one you're with!"
With supply chain issues, even if you have the money to buy a new Crusher, you may still be unable to get one.?
Stephen Stills: https://www.youtube.com/watch?v=HH3ruuml-R4
(Love the One You're with)
Crushers are the keystone of the gravel yard. I have had the pleasure of witnessing firsthand how my client's commitment to proper maintenance practices significantly impacts the overall performance of their crushers. By taking proactive steps to extend the life of these machines, EBITDA can directly improve (Earnings Before Interest, Taxes, Depreciation, and Amortization) performance.
Some insights on the value of extending the life of a crusher through proper maintenance, as well as outline the key aspects to consider when implementing a preventive maintenance (PM) program.
The Value of Extending Crusher Life
Crushers, like any industrial equipment, undergo wear and tear due to continuous usage. As their components wear out, efficiency decreases, and the risk of unexpected downtime increases. By implementing a regular maintenance schedule, we can:
(math below)
1.?Enhance operational efficiency: Timely maintenance ensures all components function optimally, leading to higher production rates and lower energy consumption.
Present Value Energy Savings = $143,220
2.?Reduce costly downtime: Well-maintained crushers are less likely to experience unexpected breakdowns, which can lead to costly production losses.
Present Value Downtime Savings = $358,050
3. Minimize replacement costs: Regularly serviced components last longer, reducing the need for frequent replacements and lowering overall expenses.
Present Value of Replacement Savings = $179,025
4. Improve safety: Regular maintenance helps identify potential hazards early, reducing the risk of accidents and ensuring a safer work environment for employees.
Total Present Value Savings?= $465,465 (adding Energy, Downtime, and Replacement Savings)?
ROI - 93.09% (Yeh, one into two)
Crusher Preventive Maintenance: Key Aspects to Consider
The following are some crucial aspects to include in your Crusher PM program:
1.?Lubrication: One of the most critical aspects of crusher maintenance is ensuring that all moving parts are adequately lubricated. Check and top up the oil and grease levels regularly, and follow the manufacturer's recommendations for type and frequency.
2.?Wear parts inspection: Regularly inspect worn parts such as liners, blow bars, and impact plates. Monitor their wear patterns and replace them as necessary to ensure consistent performance and avoid unplanned downtime.
3.?Belt and conveyor inspection: Check the condition of belts and conveyor systems for signs of wear, damage, or misalignment. Ensure proper belt tension and replace worn belts as needed.
4.?Vibration monitoring: Excessive vibration can indicate underlying issues with the Crusher's components. Regularly monitor vibration levels and address any abnormalities promptly to avoid further damage.
5.?Cleaning and housekeeping: Keep the Crusher and surrounding area clean to minimize the risk of material buildup, which can lead to blockages and damage.
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6.?Scheduled inspections: Perform thorough inspections of the Crusher at regular intervals, following the manufacturer's recommendations. Inspections include checking for loose bolts, damaged components, and signs of fatigue or wear.
7.?Training: Train all crusher operation and maintenance personnel in the best practices and safety procedures.
By adopting a comprehensive crusher PM program, aggregate companies can substantially extend the life of their crushers, reduce costs, and improve their EBITDA performance. By investing in the long-term health of your equipment, you are also investing in the success of your business.
The Math
Assumptions:
Operational Efficiency:?
Annual energy savings = Annual energy cost without proper maintenance - Annual energy cost with proper maintenance = $150,000 - $130,000 = $20,000
PV of energy savings over 12 years = $20,000 * [(1 - (1 + 0.10)^-12) / 0.10] = $20,000 * 7.161 = $143,220
Reduce Downtime:
Annual downtime savings = Annual downtime cost without proper maintenance - Annual downtime cost with proper maintenance = $100,000 - $50,000 = $50,000
PV of downtime savings over 12 years = $50,000 * [(1 - (1 + 0.10)^-12) / 0.10] = $50,000 * 7.161 = $358,050
Minimize Replacement Costs:
Annual replacement savings = Annual component replacement cost without proper maintenance - Annual component replacement cost with proper maintenance = $75,000 - $50,000 = $25,000
PV of replacement savings over 12 years = $25,000 * [(1 - (1 + 0.10)^-12) / 0.10] = $25,000 * 7.161 = $179,025
Total Present Value Savings:
Total present value (PV) of savings from maintenance = PV of energy savings + PV of downtime savings + PV of replacement savings = $143,220 + $358,050 + $179,025 = $680,295
PV of maintenance costs over 12 years = $30,000 * [(1 - (1 + 0.10)^-12) / 0.10] = $30,000 * 7.161 = $214,830
Net present value (NPV) = Total PV of savings - PV of maintenance costs = $680,295 - $214,830 = $465,465
ROI:
ROI = (NPV / Initial cost of the crusher) * 100 = ($465,465 / $500,000) * 100 = 93.09%