Compressed Air Best Practices - April 2008 - (Page 32)

| 04/08 Focus Industry PLASTICS BLOW-MOLDING | GUARANTEEING AUDIT ROI FOR BLOW-MOLDERS To upgrade these pneumatic circuits, the blow-molding machine must be taken off-line, which results in lost production time. This cost must be factored into the project costs and can represent up to 10% of the overall cost to implement the project. Fixing these problems can and do greatly improve production outputs of blow-molding machines. The cost and benefits to address this must be part of the analysis. Step 3: Maintain the Gain and Monitor the ROI After the project is executed, the focus turns to verifying and maintaining the ROI. Over the agreed-upon ROI project lifetime, we monitor and measure the new system performance. We monitor dozens of facilities every day and track their energy consumption. We submit monthly reports to customers and normally hold quarterly reviews of how the system is performing versus the ROI expectations. If negative performance variations occur, we go to the facility to get the performance back on track. One decision by a machine operator can get the ROI performance off-track and this must be monitored. After one year, the customer is normally trained on how to monitor and manage the system themselves. We train them on the common issues and how to correct them. This “ROI Monitoring” can go on for as long as the customer wants. Some want to take it over themselves while others want us to manage it for them. The key point here is that until the CEO/CFO is satisfied that ROI has been achieved, the project is not over. Step 2: Execute the Project and Verify the ROI Execution windows usually range from 8 to 16 weeks from the date of commitment. Project execution is where a high degree of flexibility is required. Each client has different levels of project management and engineering capabilities. We have to customize a project execution schedule taking this into account. Some corporations want a turnkey project while others just want project management and engineering guidance. The simplified project execution steps include: a. b. c. Visit the facility and execute the full audit Develop a project engineering schedule during the audit visit Work with contractors and client personnel on project implementation. Partner with the customer in this process Summary This three-step process provides CEO- and CFO-level executives at large corporations with the assurance that they will see an ROI on a facility project involving their compressed air systems. It can take a couple of years to execute projects at all the plants of a corporation. This three-step process of (1) analysis and measurement of savings and costs (2) project execution and ROI measurement and (3) maintaining the gain and monitoring the ROI, ensures it is a rewarding experience for the corporation. For more information contact Dean Smith, iZ Systems, tel: (404) 307-6836, email: dsmith@izsystems.com 32 www.airbestpractices.com http://www.airbestpractices.com

Table of Contents Feed for the Digital Edition of Compressed Air Best Practices - April 2008

Compressed Air Best Practices - April 2008 Contents From the Editor Utility-Air News The Compressed Air Audit of the Month: Minimizing Blow-Molding Pressure Fluctuations AF Compressors: Focused on 40 Bar, Oil-Free Air for the PET Industry Real World Best Practices: PET Plants Using Boosters for High-Pressure Air Guaranteeing Audit ROI for Blow-Molders Managing Vacuum Pressure Differential Are You Taking Full Advantage of Pneumatic Valve Technology? Are You Strategic? Resources for Energy Engineers: Training Calendar & Product Picks Wall Street Watch Advertiser Index Job Market

Compressed Air Best Practices - April 2008

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