Cost Reduction Examples CASE2

Cost Reduction Examples
CASE2 Recovery of oil floating on water soluble      processing fluid

What is floating oil?

Oil that floats because of the difference in specific gravity when coolant and oil are mixed together.
Because this is a source of nutrition for bacteria, it will become anaerobic by covering the liquid surface,
thereby accelerating the decaying of the fluid.
It is effective to remove this in order to control the quality of each type of water solution and to extend equipment life.

Problem in floating oils
1, Solutions decay, thereby
  requiring frequent replacement.
Increasing oil solution
purchasing costs
Increasing waste solution
treatment costs
2. Degraded working environment
Foul plant smells
3. Negative effect on post-washing
  processes
Adhering of floating oil
Benefits from recovering floating oils
1. Extended solution life
More difficult for solutions to decay →  
Reduced oil purchasing costs!
Reduced waste solution treatment costs!
2. Improved working environment
Improved working environment →
Resolved foul plant smells and improved
appearance
3. Reduced processing trouble
Improved product quality →
Improved welding problems and painting defects

Case Extended life through recovery of oil floating on water soluble machining fluid Support for ISO14000 Improved working environment Reduced costs for purchasing new oil and for waste-oil treatment Resolved the problems of decaying oil and foul smells. Reduced costs by extending the life of solutions

Customer Concerns

Company A (automobile part   manufacturer)


  • To reduce grease purchasing costs, industrial waste-product treatment amounts, and treatment costs
  • To extend the life of water soluble machining fluid

Present state

Uses a water soluble machining fluid soluble type
Replaced 3 times per year, but would like to reduce it to twice a year (late summer
and year-end)

Customer testimonials We often use carried-in oil; it quickly decays. (Mr. B) The plant reeks on mornings after a holiday. (Mr. C) We often refill the active oil. (Mr. D) The sharpness of our
machining tools is inconsistent. (Mr. E)

Company A machining equipment
[NC machine 24 systems; machining 18 systems]
Cost for using new oil per machine
(tank volume: Average: 320 L, diluted 20 times)
Amount and cost for purchasing new oil: 16 L x ¥520/L = ¥8,320
Amount and cost for treating waste oil: Approx. 480 L x ¥48 = ¥23,040
(Waste-solution amount: Includes amount to clean equipment)
Labor costs and various fees: ¥30,000
Total per unit: ¥61,360
Total equipment new solution cost: 42 systems x ¥61,360 = Approx. ¥2.57 million

Our proposal

Reduced waste-solution treatment costs using
new recovery method and attaining longer
equipment life.

Before proposal

  • proposal01

Conventionally, recovery was implemented using belts or disks.
However, only the oil in the solution that comes into contact with the repair surface
is removed; it is not very effective.
The two types in the photos above were efficient, and have become mainstream.

↓

After proposal

  • proposal03

  • Floating oil separated into solution and oil
  • Recovered oil

By removing the floating oil, it has become more difficult for the solution to decay,
thereby prevent foul smells from being generated.
We were able to attain longer equipment life, and to reduce the waste-solution treatment
costs.
At one automobile part manufacturer, we were able to triple equipment life.

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