Proper lubrication has always been a low priority in industrial maintenance. Very few companies are aware that poor lubrication can have a massive ripple effect on equipment longevity, maintenance costs, and operational efficiency. As a result, the high costs due to poor lubrication go under the radar, quietly costing companies thousands, if not more, over time.
Many businesses don’t realize that a huge part of operational expenses like downtime, costly repairs, or premature equipment failure can stem from improper and inadequate lubrication. Issues like unexpected machine breakdowns, increased energy consumption, skyrocketing maintenance bills, unsafe equipment, etc., can be significantly minimized just by improving their lubrication management program.
This post breaks down the ways poor lubrication can cost you more than you think. It will also show you how the right software and proactive management can help save your company thousands while boosting overall productivity and extending the life of your critical assets.
Hidden Costs of Poor Lubrication
The financial impact of poor lubrication is significant but not always apparent and thus often overlooked. Below are the ways poor lubrication is costing your operations more than you think:
1. Equipment Downtime
Poor lubrication is one of the leading causes of equipment failure. When machinery components aren’t properly lubricated, friction increases, leading to overheating, wear, and eventual breakdowns. Equipment failure, in turn, is the main cause of unplanned machinery downtime.
When machinery and equipment are often out of commission, operations halt, products are not made, and services are not delivered. When deadlines are missed, the company incurs substantial losses. Forbes reported that the average cost of downtime in 2024 is now as high as $9,000 per minute. That’s $540,000 for every hour! In some industries and special scenarios, the rate can even reach $5 million per hour.
Aside from the lost operation time and subsequent loss in revenue, downtime can also lead to other costs, such as labor, materials, and delivery penalties. Unplanned repairs require paying extra costs for the labor and materials. Missing deadlines can lead to penalties in customer contracts.
2. Maintenance Cost
Poor lubrication accelerates wear and tear on machinery and equipment, leading to frequent repairs and parts replacements. As a result, maintenance work increases, requiring more spare parts, supplies, and manpower. The associated costs of these requirements will add up over time and drain your maintenance budget.
In addition, other maintenance areas can also become more costly due to poor lubrication. To accommodate the frequent repairs and parts replacement, companies may need to stockpile parts. These parts, in turn, need more facilities and labor hours to manage. Managing work orders is also more challenging if the demand for maintenance work is high. Not only will you need more technicians but also managers to plan and implement these tasks.
3. Reduced Asset Life
Poor lubrication can drastically reduce the expected lifespan of machinery and equipment. Without lubricants that minimize friction between components, prevent overheating, and protect against corrosion, machines will not reach their expected lifespans. Thus, companies will be forced to replace assets prematurely, increasing capital costs.
Reduced asset life can also lead to higher depreciation costs. This is because frequent machinery replacements can negatively impact the financial depreciation schedule, increasing tax liabilities.
4. Energy Inefficiency
Lubrication is a critical factor in the energy efficiency of machinery and equipment. Poor lubrication leads to high friction levels in machines that cause them to use more energy to run. Also, poorly lubricated machines are prone to overheating and heat loss, thus requiring more power to maintain performance. Furthermore, overheating also increases the burden on cooling fans, compressors, and ventilation systems, causing them to draw more power to manage the heat load. All these contribute to the high energy consumption of poorly lubricated assets.
On top of these factors, poor lubrication can also lead to environmental costs. The use of inefficient machinery and processes can violate regulatory standards, leading to additional capital costs, penalties, fines, and even operational shutdowns.
5. Safety Risks
Poor lubrication can create hazardous working conditions for employees, and with that comes hidden costs. When machinery is not properly lubricated, sudden equipment failure is more likely and can cause parts to fly off, components to collapse, or trigger chain reactions that harm nearby workers. Overheating of poorly lubricated machines can also lead to dangerous conditions, including sparks or fires, particularly if flammable materials or substances are present. Frequent failures due to poor lubrication also increase the likelihood of high-risk maintenance jobs, risking the well-being of technicians. Thus, poor lubrication can increase company liability and safety-related costs.
Proactive Lubrication with Lubrication Management Software
A valuable solution to reducing the costs discussed above is proactive lubrication management. Using modern technology in the form of software or computer applications, maintenance teams can now systematically improve lubrication processes and optimize machinery performance, reducing costs through:
Optimized Lubrication Schedules - By tracking lubrication tasks and automating lubrication schedules, the software helps teams ensure that machines are lubricated on time. Thus reducing the likelihood of machine breakdowns, costly repairs, and downtime.
Predictive Maintenance (PdM) and Condition-Based Monitoring (CBM) - Software allows real-time monitoring of lubrication conditions and asset health. Thus, teams can implement PdM and CBM strategies to proactively manage failures. Through these strategies, they can predict when equipment is at risk of failure, enabling them to address issues before they escalate into costly problems.
Extended Asset Lifespan - Software provides more visibility into asset health and conditions. Thus, maintenance teams can better plan and implement strategies that promote asset health and extend lifespan. They can also more easily assess whether these strategies are working through the software’s data analytics and reporting.
Enhanced Machinery Efficiency - By improving lubrication management using software, teams can reduce energy consumption and improve the efficiency of machines. A reduction in energy usage not only saves money but also supports sustainability initiatives, potentially qualifying businesses for energy efficiency credits or tax breaks.
Compliance with Regulations - Proactive maintenance and management software work together to minimize machine breakdowns and ensure a safe workplace. Teams can also use the software to keep maintenance records to prove compliance with regulatory standards, minimizing fines and penalties and other potential safety costs.
Eliminate Downtime Costs Lubrication Management Software from Redlist
Poor lubrication is one of the most overlooked causes of an organization’s maintenance and operating costs. Fortunately, you can use tools like Redlist to eliminate downtime. Redlist is a powerful Lubrication Management Software that can reduce downtime hours and save thousands of dollars. It can also streamline processes and save hours of labor. How? By integrating data analytics, real-time tracking, and automated scheduling. Redlist helps you stay ahead of the curve and turn lubrication-related challenges into opportunities for savings and growth.
Let Redlist help you eliminate downtime by improving your lubrication operations. Consult with our lubrication management experts today!
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