Online fluid monitoring

Reducing costs and increasing profitability
with online fluid monitoring
 

by John Malone

Reducing costs and increasing profits are top performance objectives for businesses of all sizes. It is advantageous to have tools designed to help achieve these business objectives. An online fluid monitoring system offers the capability to directly impact the bottom line for bulk lubricant users.

This article describes the vital components of an effective online fluid monitoring system and how these systems benefit industrial plants, companies with commercial transportation fleets, and other companies that purchase lubricants in large quantities.

Advances in fluid monitoring
While fluid monitoring technology has developed rapidly in recent years, the type and sophistication of fluid monitoring in use today varies widely across industries. Some users of bulk chemicals, fuels, and other fluids rely on advanced systems with automated data gathering and transmission. Other tank farms rely on the manual process of “sticking the tanks.” A large percentage of industrial facilities have gauges and monitors on their tanks but rely on a human being to read each one.

For users of bulk lubricants, advances in online fluid monitoring have resulted in innovative new systems that save time and money. Chevron’s EyeTank, for example, is designed to efficiently and reliably maintain bulk lubricants at optimum levels.

Vital functions of online fluid monitoring
Sensors and monitors collect data from each tank at pre-determined intervals and transmit that data to a central location where it is analyzed and placed in a folder on an interactive Web portal. Users need only a standard browser and an Internet connection to take advantage of online fluid monitoring capabilities. They can maintain an accurate view of lubricant stock levels by checking the Web portal periodically, and eliminate the costs and stress associated with emergency orders and deliveries by scheduling replenishment before run-out. As needed, alerts can be created to draw attention to unusual events such as sudden changes in inventory levels.

In selecting a fluid monitoring system for bulk lubricants, users should look for specialized functionality such as forecasting and the ability for simultaneous viewing of information for multiple tanks. The ability to segment the data, customize it for the unique needs of the user and incorporate it into larger business processes is vital. In addition, sophisticated new systems can connect tank monitoring signals to dealer and supplier order fulfillment systems, creating automatic email purchase order requests, distributor replenishment requests and total order fulfillment.

A proactive effort: the power of forecasting
Online fluid monitoring provides a proactive business tool for industrial plants to help plan for appropriate levels of bulk lubricants. A proactive approach will help users see trends, compare performance and take action before inventory problems occur or broader business processes are affected.

In the past, industrial facilities could derive some business data about their lubricant inventories through their cost accounting systems. One hurdle was that rolling this data across multiple plants took time and required that every reported transaction have consistent coding. Beyond the time-consuming task of assembling and analyzing data, the issue that undermined its potential value was that it was all after the fact. It was a reactive response.

With the new online fluid monitoring capabilities, decision-makers have easy access to data that shows what is happening at each site, no matter how geographically dispersed. This data can be viewed for separate tanks or aggregated for the overall inventory. Much more than indicating a re-order point, the online fluid monitoring systems provide accurate forecasting for advance planning.

Benefits, cost savings and valuable collaboration
Efficiency and centralization are key drivers in the cost savings offered by online fluid monitoring systems. For plants with hundreds of tanks in multiple locations, having to manually read gauges takes time and generates labor costs. Even with sophisticated sensors and gauges, it can take several hours to gather data at a large industrial facility.

A major efficiency benefit of online fluid monitoring is data centralization. Online fluid monitoring enables businesses to centralize the information related to inventory and forecasting and put it into the hands of one or a few individuals to review. Centralized data gathering also provides a measure of control. With one person authorized to observe and review fluid inventory data, the potential for local problems that could result in costly losses or fines is mitigated.

Minimizing the risk of spillovers is another benefit of online fluid monitoring systems. Knowing the precise level of each tank at all times can help the tank operator avoid clean-up charges (and hefty fines!) associated with a spillover. An online fluid monitoring system can pay for itself in a few months to a year depending on fluid usage and company business model. In addition, the system will pay for itself immediately if it prevents a spillover.

New online fluid monitoring systems combine data collection and automation and deliver forecasting fine-tuned to the user’s business requirements. The forecasting data can be shared automatically with suppliers. Therefore, close collaboration with suppliers ensures a seamless supply and replenishment process on a regular basis. In addition, if a weather disaster or other emergency were to cause a supply disruption, the accurate forecasting provided by an online fluid monitoring system enables lubricant users and their suppliers to determine precise needs and arrange delivery accordingly.

Summary
The benefits of an online fluid monitoring system designed for lubricants include a reduction in the time and labor required to check tank levels, optimization of inventory and lower carrying costs, simplification of the fulfillment process, and the ability to validate and track deliveries with absolute accuracy. These benefits result in safer, more reliable operations, which in turn lead to a reduction in costs and an increase in profitability for the business.

John Malone is the Global Industrial Segment Manager and Reliability Solutions Manager for Chevron Products Company.
He is a member of SMRP as well as the Society of Tribologists and Lubrication Engineers. If you have lubrication questions, contact Coach Malone at: Phone: 713-432-2647; E-mail: jvma@chevron.com.

This article appeared in the February 2007 issue of MRO Today magazine. Copyright 2007.

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