COST-EFFECTIVE MANAGEMENT OF LUBRICATING AND HYDRAULIC OILS

Transcription

1 GG227 GUIDE ENVIRONMENTAL TECHNOLOGY BEST PRACTICE PROGRAMME COST-EFFECTIVE MANAGEMENT OF LUBRICATING AND HYDRAULIC OILS GOOD PRACTICE: Proven technology and techniques for profitable environmental improvement

2 COST-EFFECTIVE MANAGEMENT OF LUBRICATING AND HYDRAULIC OILS This Good Practice Guide was produced by the Environmental Technology Best Practice Programme Prepared with assistance from: Entec UK Limited Crown copyright. First printed December This material may be freely reproduced in its original form except for sale or advertising purposes. Printed on paper containing 75% post-consumer waste.

3 SUMMARY Hydraulic and lubricating oils are vital commodities used by the engineering industry to ensure the smooth running of machinery and to maintain production. Industry spends millions of pounds each year on oil products, but the efficiency of oil use is often poor. Lubricants are vital, yet often overlooked, resources for the engineering industry. They play an important role in keeping plant running, thus making production possible. With good control, oil use can be minimised and considerable savings made. The benefits of having a good management system extend well beyond these initial savings because there are many production and maintenance benefits. Identification of high oil use can help to identify plant problems which, if left unchecked, could lead to machine failures and lost production time. Companies that have embarked on improvement projects have found that they can reduce use by around 10% using basic measures. It is estimated that the engineering sector would save around 7.5 million/year if it reduced use by 10%. With comprehensive management, some companies have identified savings of more than 40% - a considerable reduction that no company can afford to overlook. Industry Examples show how some of these savings have been achieved. The Guide follows the same structured approach to the implementation of an oil management system as for any waste minimisation programme. By following the advice in this Guide, you will achieve reductions and improvements in costs, waste arisings and environmental impact. The flow chart opposite, Fig 1, illustrates the content of this Guide and highlights the importance of minimising oil usage at source before tackling the issue of waste oil. The benefits of managing oils effectively include: cost benefits from reduced consumption; using fewer oils leading to simpler management; less time spent applying lubricants; fewer mistakes from incorrect use of oils or running out of oil; lower maintenance costs and less production downtime through improved control of consumption and early identification of problems; reduced environmental risk; improved housekeeping.

4 Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Introduction Selecting the right oils Rationalising oil usage Implementing an oil management system Oil storage and handling On-site recovery of waste oil Off-site recycling and disposal of waste oil Minimise at source any oil usage Re-use oil where possible Recycling and disposal options Recycling Re-use Minimisation, measurement and management Commitment and implementation Fig 1 Flow chart to show the structure of this Guide and key issues

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6 CONTENTS Section Page 1 Introduction Purpose of this Guide Why reduce oil use? Cutting the cost of oil 2 2 Selecting the right oils for your needs Why oils are needed Mineral and synthetic oils Oil viscosity Identifying oil properties Use-by dates 6 3 Rationalise your oil use A step-by-step approach A worked example Implementing the changes 10 4 Implementing an effective oil management system Responsibility for oils Procurement of oils Stock control Measuring to manage Lubricating procedures Condition monitoring Oil management services offered by oil suppliers 15 5 Good practice for oil storage and handling The oil store Handling oil containers Leakage and spill control 20 6 On-site recovery of waste oil Reclamation of used oils Re-using oil for its initial purpose Re-using oil as a lower grade lubricant Recovering oil from water 26 7 Off-site recycling and disposal of waste oil Off-site reclamation (laundering) Off-site recycling (re-refining) Disposal of waste oils 28 8 Action Plan 29

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8 1 INTRODUCTION 1.1 PURPOSE OF THIS GUIDE This Guide is produced by the Environmental Technology Best Practice Programme to help engineering companies improve their management of hydraulic and lubricating oils. The Guide demonstrates how improved management will reduce the cost of oil purchase, bring cost benefits through better maintenance routines, reduce production downtime, and lower environmental risk. The efficiency of oil use is often poor and there are many ways in which oil is wasted. For example, small amounts are left in containers and part drums of fresh oil are filled with waste oil. Companies that have embarked on improvement projects have found that they can reduce use by around 10% using basic measures. With comprehensive management, some companies have identified savings of more than 40%. In cost terms, this represents a considerable saving for UK industry. A 10% reduction in lubricating and hydraulic oil usage could save the engineering industry around 7.5 million/year. Oil use must be understood before it can be controlled. This Guide will help any engineering company to gain better understanding of how oil is used in its processes and how to improve the efficiency with which it is used. Taking a systematic approach is most effective for reducing the use of hydraulic and lubricating oils, because an ongoing programme of systematic measurement and reassessment will lead to continuous improvement. Once cost savings and benefits start to be made and quantified, feeding back the results can make it easier to gain commitment for continuing and making further changes and savings. 1 Commitment and implementation In order to implement an improved oil management programme along the lines outlined in this Guide and to start saving money, you may first need to win the commitment of senior management and colleagues. Start by contacting the Environment and Energy Helpline on for advice. Ask about the free support material produced by the Environmental Technology Best Practice Programme. The following publications may be of particular interest: Good Practice Guide (GG125) Good Practice Guide (GG199) Good Practice Guide (GG205) Environmental Performance Guide (EG179) Waste Minimisation Pays: Five business reasons for reducing waste. Optimising the Use of Metalworking Fluids. Environmental Management Systems Workbook for Engineering Manufacturers. Benchmarking the Consumption of Metal Cutting Fluids. Waste can be dealt with in a number of ways, but the most effective is by following the waste minimisation hierarchy - eliminate, reduce, re-use and recycle, in that order. Elimination is at the top of this ranking because it is best for the environment. If feasible, it will also generate the largest cost savings. The next best option is to minimise waste and production at source. Below this comes the option to re-use, but if this is not practicable then waste should be recycled in-house, sold for reprocessing, or incinerated for energy recovery. The last and generally least beneficial option for the environment is disposal of waste to landfill. 1

9 1.2 WHY REDUCE OIL USE? 1 Hydraulic and lubricating oils are vital commodities used by the engineering industry to ensure the smooth running of machinery and to maintain production. Industry spends millions of pounds each year on oil products, but the efficiency of oil use is often poor. Lubricants are vital, yet often overlooked, resources for the engineering industry that play an important role in keeping plant running, thus making production possible. With good control, oil use can be minimised and considerable savings made. The benefits of having a good management system extend well beyond these initial savings because there are many other production and maintenance benefits. Identification of high oil usage can help to establish plant problems which, if left unchecked, could lead to machine failures and lost production time. Improving the use of hydraulic and lubricating oils will help companies to: Commitment and implementation save money on oil purchase and disposal costs; use fewer oils leading to simpler management; save time spent applying lubricants; make fewer mistakes from incorrect oil use or running out of oil; save on maintenance costs and production downtime through improved control of consumption and early identification of problems; improve environmental performance and reduce environmental risk; improve health and safety in the workshop; improve housekeeping. This Guide demonstrates how to improve the efficiency of your oil system to achieve cost savings. Good practice details are given for the management, storage and handling of oils as well as the options for dealing with spent oil, including re-use, recovery and recycling. Problems with oil selection, supply, storage or application can all lead to difficulties that can increase plant downtime and reduce output. This Guide outlines the good practice techniques required to provide an efficient oil management system for lubricating and hydraulic oils. Industry Examples appear throughout the Guide to demonstrate good practice in action. A number of checklists and forms are included in the pocket at the back of this Guide for photocopying and reference, along with two further Industry Examples. Many of the benefits will be difficult to quantify accurately as they will be avoided costs, such as the avoidance of downtime caused by machinery breakdown through incorrect oil use. A more efficient oil system will lower the risk of plant problems in general. For this reason, in many of the Industry Examples used, the companies found it difficult to quantify accurate financial savings, although all are aware of substantial benefits from the actions taken. 1.3 CUTTING THE COST OF OIL Others 20% Hydraulic 30% The total sale of oil products in the UK last year was between and tonnes, with industry accounting for approximately half of the sales. The breakdown of oil sales within the industrial sector is shown in Fig 2. Metalworking 8% Transformer 8% Process 20% Gear/compressor/ turbine oils 14% 2 Fig 2 UK oil sales

10 This Guide is concerned with the use of hydraulic, gear, compressor and turbine oils. These account for 44% of the oils used by UK industry. Where oil management has been reviewed in the engineering sector, the reduction in consumption has been significant and rewarding. Tip If the industrial sector reduced its oil consumption by just 10% as a direct result of the best practice outlined in this Guide, it would save at least tonnes/year of oil. Based on average oil prices, this represents a saving of around 7.5 million/year for UK industry as a whole. (This is based on the use of hydraulic, gear, compressor and turbine oils.) 1 Improved oil management brings oil use savings Ford s Dagenham plant uses a large amount of oil and the potential for reducing the amount and rationalising the grades of oil used was investigated. Ford took several measures to improve oil management, with the staff responsible for distributing the oils encouraged to identify potential savings. The initial savings helped to secure investment in better facilities and even further improvements. Controlling oil use has helped Ford with its Total Preventative Maintenance (TPM) programme and has helped the Company to understand plant problems. Benefits to date include: a 20% reduction in oil use, representing a litres/year reduction of oil; reduced plant downtime; reduced risk of oil filling mistakes through plant labelling and fewer oil errors through improved management procedures; condition monitoring has been used to reduce unplanned maintenance. Commitment and implementation The following improvements have been made so far: the oil storage areas have better handling equipment and air pumps; vehicles have been produced specifically for the transportation and dispensing of oil; Ford s internal web site is used to record and monitor plant performance with a dedicated on oils, and allows comparison of use for similar plant items; the installation of meters in hydraulic lines has helped to monitor use; all plant items have a small diagram posted next to the filling point to inform staff of the oil type and filling requirements. Each area is charged for the amount of oil used. This allows comparison between similar areas and helps to identify sudden changes. It also introduces some competition between the production lines which will help to drive down oil usage as staff take pride in their work area. Since starting the condition monitoring and TPM programme with oils, Ford has reduced unscheduled machine stoppages for lubrication by 80%. The savings associated with this reduction will far outweigh the cost of the monitoring. Future improvements Ford has undertaken a rationalisation survey and established the potential for reducing the different grades of oil from the current number of 24 down to just 13. This will further improve the system and make management easier. 3

11 2 SELECTING THE RIGHT OILS FOR YOUR NEEDS This Section provides the information that will enable you to select the right oils for your requirements. An understanding of oils and their properties is crucial if a rationalisation process is to be undertaken effectively. 2 The correct selection of lubrication and hydraulic oils can maintain the smooth running of machinery. This avoids maintenance problems and the associated costs to the engineering industry. Using the incorrect oil will result in frequent oil changes, high maintenance costs and a low production efficiency. 2.1 WHY OILS ARE NEEDED Commitment and implementation Lubrication and hydraulic oils are used to reduce wear and prevent overheating in machinery where a number of surfaces come into contact. Lubricants work between surfaces to reduce friction and to minimise the heat build-up resulting from this. Modern lubricants can protect, clean and seal mechanical devices and ensure that they run smoothly. 2.2 MINERAL AND SYNTHETIC OILS Mineral oils are manufactured from crude oil, which is refined to produce various grades of oil and petroleum products. Distillation processes produce oils of different viscosities which are then blended before the addition of additives to produce the final lubricant. Synthetic oils are manufactured from chemicals and are stable at high temperatures whilst maintaining good viscosity at low temperatures. Synthetic oils generally have superior performance to mineral oils although they are more expensive. High performance lubricants can be a mixture of mineral and synthetic oils to provide the required properties. Typically, oils are a blend of several base oils with additives to maintain the oils properties when in use. Additives are used for a variety of reasons, for example, to maintain oil properties under high temperatures or pressures, and reduce oxidation and corrosion. 2.3 OIL VISCOSITY Viscosity is the most important property of an oil and refers to its resistance to flow eg: low viscosity oils flow easily; high viscosity oils flow very slowly. Manufacturers will specify the oil viscosity that is required for their machinery. If moving components need oil to flow quickly then a low viscosity oil will be used. Where maximum protection is required, a high viscosity oil will be specified. All oils thin with increasing temperature, ie the viscosity decreases, which is an important consideration when selecting products. 4

12 2.3.1 Viscosity classifications There are two viscosity classifications used by oil suppliers: the International Standards Organisation (ISO); the Society of Automotive Engineers (SAE). ISO classifications are most commonly used in industry and the numbers specify the nominal kinematic viscosity at 40 C. There are 18 viscosity grades ranging from 2 to 1 500, increasing in increments of approximately 50%: The SAE classification is used mainly for the automotive industry but can be applied in other industries. SAE classifications can be for gears or engines and there are around 10 SAE engine grades. The SAE viscosity numbers define viscosity ranges at 100 C and some have a W suffix indicating winter service for applications in low temperatures. A multigrade oil is one that bridges at least two SAE classifications, for example, SAE 10W/30 has the SAE 10W specification at 0 F and the SAE 30 specification at 210 F. Tip Understanding which oils you use is an essential first step to minimising oil consumption. Oils with different names and numbers may be identical. Use a comparison chart (Fig 3) to obtain an initial estimate of how many different oils you actually need. Further guidance is given in Section 3. Oil viscosity comparison charts can be used to compare different oils. The charts should be used as a rough guide to establish the similarity of oils that appear to be very different. There is a loose-leaf copy of this chart in the back pocket of this Guide. 2 Commitment and implementation Low viscosity High viscosity ISO viscosity grades SAE gear viscosity numbers 75W 80W 85W SAE engine viscosity numbers 0W 5W 10W 15W 20W Fig 3 Viscosity comparison chart 5

13 2.4 IDENTIFYING OIL PROPERTIES In order to gain an understanding of the oils that may be used on your site, it is important to be able to identify their properties from the name of the oil. The most important benefit of this information is that the oils you use can then be rationalised. This means you have fewer oil products on-site which will help to reduce waste. Also, if staff understand the properties of the oils used they will be able to use the correct oil in cases of emergency, eg when one grade runs out and another is required. For example, if a machine must be kept running, it may be wise to select the closest oil rather than risk mechanical failure due to lack of lubrication. Selecting the most appropriate oil involves matching the closest product in terms of viscosity and other properties (see Fig 4). 2 Oil company trade name T68 A trade name to identify the oil type. In this case, it could be a highly refined turbine oil with anti-wear properties. The T indicates a turbine oil. 68 is the ISO viscosity code. Commitment and implementation Company A Type C E30 Company Z Type G T100 Fig 4 Identifying sample oils Although these two oils have different names and codes, they are identical. The companies are different and the trade names will be different but the viscosity codes are, in fact, equivalent. E30 is a classification relating to SAE grades and T100 is a classification relating to the ISO system. The viscosity comparison chart (Fig 3) can be used to highlight the similar viscosity of the example above. The oil from Company A, Type C E30, has an SAE engine viscosity number of 30. The oil from Company Z, Type G T100, has an ISO viscosity of 100. Using the chart, read across the SAE engine column, and find the block for 30. Read upwards and you will see that it aligns with the ISO viscosity of 100. Tip Ask your oil supplier(s) for a list of products with definitions so that you and your employees understand the products being used. 2.5 USE-BY DATES All oils and greases have a use-by date, normally in the form of a code provided by the manufacturer. To ensure that the oil performs exactly to its specification, the product should be used before this date. Your oil supplier will be able to inform you of its date code system so that you can avoid problems associated with out-of-date products. 6

14 3 RATIONALISE YOUR OIL USE This Section explains how you can reduce the number of oils you handle on site, resulting in a simplified system. Duplication of similar grades over a number of years has left many engineering companies with many more grades of oil than they actually need, often leading to waste. 3.1 A STEP-BY-STEP APPROACH Rationalisation can reduce the number of oils used on your site through a process of identifying your oil requirements and assessing the suitability of products. Reducing the number of oils used will make your oil system easier to operate, reduce the chances of mistakes being made through the wrong oil use, and reduce the waste of oil. National Power, Aberthaw, reduced the number of oil products it uses from 36 to 18. This resulted in a simplified oil schedule and helped achieve a 15% reduction in oil use. For more details see Industry Example 2 in the pocket in the back of this Guide. 3 A project flow chart can be seen in Fig 5 overleaf. It outlines the five key stages in the rationalisation process. The time spent on this exercise should reflect the number of plant items and oils used. Step 1 involves a survey to gather information about all the oils currently used on-site. A blank survey form is included in the pocket in the back of this Guide. You can photocopy and use this to record the necessary information. Once these basic details on oil types and consumption have been gathered, Step 2 is to consider other issues that could affect the rationalisation. For example, are any machines covered by a warranty that will be invalidated if a specific oil is not used? Minimisation measurement and management Step 3 outlines the process involved in assessing the potential for rationalisation. In most cases, to complete Step 3 you will need the assistance of an oil supplier to assess the full potential for rationalisation. Waste oil container at National Power, Aberthaw. The picture shows the chart on the wall with the rationalisation system. 7

15 To decide on the best option, Step 4, a number of considerations should be made: What is the reduction in the number of oils used? Fewer grades of oil will result in a system which is easier to use and manage. There is less margin for error when fewer products are used on-site. Can larger containers be used? Larger containers of oil: are normally cheaper to purchase than smaller ones; reduce the waste which occurs in the bottom of containers after oil is dispensed; can transport oil around the site with fewer trips; reduce the amount of small containers left next to plant items. What is the overall cost benefit? Minimisation measurement and management 3 How do current prices compare to the future prices quoted by suppliers? (This is best achieved by roughly calculating the costs and quantities of oil purchased over a year and comparing them to the new stock list and expected usage and costs.) Ensure that the products suggested are suitable for their application. Check that no plant items will use excessive amounts of the proposed oil product as a result of the change. Step 1 Photocopy and use the oil survey form in the back pocket of this Guide to carry out an audit of oils on site. Cover all items of plant and include all oils, even those that have a small usage. Step 3 Identify the current oils used Assess the potential for rationalisation This is best done by contacting oil suppliers and providing them with the full results of your survey. They can then provide a rationalised list of products based on their product range. It is important to seek assurance that the oils proposed will be suitable for the applications. Help Step 2 Consider other issues Are any machines covered by a warranty? Are different sized oil containers currently used? Do any machines have difficult filling points or restricted access that require certain containers or dispensing systems? All these details should be included in your plant survey. Step 4 A special oil survey form can be found in the back pocket of this Guide. Copy this as many times as required to help complete your survey. Decide on the best option Based on the results from oil suppliers, a decision can be made on the way forward. Refer to Section 4 for details of setting up an oil management system that uses a reduced number of suppliers or, ideally, a single supplier. Step 5 Inform staff and implement changes Inform all staff of the changes via training and signs placed in key areas around the site. Signs or leaflets should show all of the old oils along with the new equivalents and, ideally, the plant items where each oil is used. Fig 5 Rationalisation flow chart 8

16 3.2 A WORKED EXAMPLE An engineering company had a manufacturing site with a high use of oils. The management of the company decided that improving the oil supply system and managing use would both save money and reduce engineering problems affecting production. The company could not afford major expenditure on the changes but were keen to make savings where possible. The company used the oil survey form (included for you to photocopy in the pocket in the back of this Guide) to establish the current situation and gather information for an oil supplier. An example extract of survey information is seen in Fig 6. The use of oils is shown in the Pareto analysis graph, Fig 7, which helped the company understand which oils were used in great quantity. Form 3 of 6 Completed by: HSE Co-ordinator Date: 12/4/99 Oil use (litres/year) Plant item Press 03 Location Shop floor Area 3 Oil currently used Company A Type E80 Size of oil bath 325 litres Estimated annual consumption litres (approx. 10 changes in 1998) Filling point Height 1.23 m adjacent to west wall Notes Good access. Filling point is small and could be made larger Fig 6 Oil survey example A B C D E F G H I J K L M N O P Q R S Oil type 3 Minimisation measurement and management Fig 7 Oil survey results Once the information was gathered, the company approached a number of suppliers and established the potential for rationalising the 19 grades of oil that they were using. After several companies had been consulted, the company agreed to set up a contract with one supplier that proposed to reduce the number of oils to just 11. The company reduced the number of oils with several observations, including: Oil Type R was the same viscosity as Type B. Type R was eliminated as Type B would do the same job. Type R had been purchased in 205-litre drums from which only a few litres were dispensed. The waste from drums being purchased unnecessarily, or where the oil became contaminated, was estimated at five drums/year (at a cost of 400/year). Oil Types A, B and C are now supplied in intermediate bulk containers (IBCs) because these hold litres and save time in transporting oils around site. Purchase costs were reduced by 10%, saving an estimated 500/year. 9

17 The company reduced oil use by 20% as a result of the new system. Based on the annual use of litres of oil, the company reduced use by litres/year, an estimated saving of 2 200/year. Tip Don t forget to measure existing levels of use to get a base-line figure from which to chart progress. It will be more difficult to prove results if you don t know your starting point. 3.3 IMPLEMENTING THE CHANGES Once the best option has been identified, Step 5 is to implement the changes. If an oil store has been renovated or rearranged, this is the best opportunity to implement the main changes. Staff will need to be informed of the proposed changes and made aware that oil grades will be changing. Minimisation measurement and management 3 Arrange the oil store so that all oils are grouped according to the results of the rationalisation. This may mean that different oils are stored next to each other until the replacement grade is ordered. The confusion can be minimised if all drums are marked up as the new oil and all old names are ignored. Over a few months the old grades will slowly be used and the new grades will be introduced. The most effective way of communicating the new system to the relevant staff is to hold brief training sessions that can be included at the start of existing meetings or group workshops. Information, in the form of signs and/or pocket references about the changes, can be easily produced and distributed (see Fig 8). Old lubricant New lubricant Plant items Company A Type B E90 Press in cell 1 Company C Type R 220 Company C Type B 220 All presses in production area 1 Company B Type X 220 Gearbox on VSD air coolers Company B Type V 100 Company C Type A 100 Hydraulic systems in production area 1 Company A Type U 100 Company C Type A EP80 Company C Type A E80 All spiral bevel gears Fig 8 Example of rationalisation sign or flyer Tip In order to undertake the rationalisation process, first obtain commitment from all levels. Take time to complete all the steps of the rationalisation process shown in Fig 5. Accurate data will produce better results. The decision process involves an evaluation of benefits and costs. Consider all of the benefits, including the time and labour issues. When launching a new system, communicate the changes to staff as early as possible to ensure a smooth transition. 10

18 4 IMPLEMENTING AN EFFECTIVE OIL MANAGEMENT SYSTEM This Section gives guidance on the key elements of an effective oil management system to minimise costs. By taking a structured approach and setting up a basic system, it should be possible to improve the management of oil supply and use, and ensure that waste is minimised. The management system is the vital factor in the control of oil movements and should allow easy monitoring of both oil and plant items. 4.1 RESPONSIBILITY FOR OILS Tip Improved management of oils will lead to better control, improved quality of output and reduced maintenance. Before stock control can be tackled it is important to establish who has responsibility for oil within your organisation. The number and identity of those responsible will depend on the size of your company, the number of staff employed and the quantity of oils used each year. For effective management, oil stock and use must be controlled, and everyone must be clear about who has responsibility. 4 Several approaches can be used, including: control of the oil store is given to a small number of staff with site-wide responsibility; responsibility for the application of oils is given to a site team; individual manufacturing cells are given responsibility for oil application. Internal competition reduces oil use A study of oil consumption at Royal Ordnance, Crewe, revealed the duplication of many oils, and that this was resulting in excessive use. Royal Ordnance undertook a project to reduce oil consumption, move to a single supplier and reduce the environmental risk of handling oils. Production cell manufacture means that each individual manufacturing area is responsible for its own oil use, and high oil use will result in a greater burden on each budget. Comparison of similar cells promotes competition to reduce oil use. Minimisation measurement and management Monitoring of oil use also means that if a problem with machinery arises suddenly it is identified easily. Action can be taken and plant shutdowns and expensive breakdowns are avoided. Royal Ordnance has seen reductions of up to 50% in the consumption of some oils. 4.2 PROCUREMENT OF OILS The use of a single supplier for all oils has a number of benefits, including: it helps to minimise waste; it simplifies the control of stock movements; the rationalisation process is far more effective when one supplier is used; if all oil is purchased from one supplier, discounts may be available due to larger orders; 11

19 with a larger order, oil companies are more likely to provide technical support and assistance; you will have a single point of contact; the procurement process is easier to administer, reducing the supply chain costs. If a contract is going to be set up with a single supplier it is important to take the time to ensure that the contract meets your requirements. Obtain details of what several suppliers can offer and then evaluate each in terms of the oil supplied, delivery details, technical support and the various terms and conditions of the contract. 4.3 STOCK CONTROL Effective stock control will enable you to produce a balance of the oil dispensed and the waste oil generated. If records are kept of quantities of oil dispensed, the time and date and the location of the oil use, the system can be used to monitor plant performance and assist in maintenance planning. Minimisation measurement and management 4 For effective stock control, ideally all oils should be stored in one location, although this is dependent on the size of your site. Larger sites may require several small oil stores. If oils are stored all over the site, eg next to the plant items where they will be used, effective stock control becomes almost impossible Oil store stock levels Within your oil store a minimum stock of oil is required to cover operational requirements. However, unexpected plant problems can lead to a sudden need for large quantities of oils. If this happens, arrangements must be in place with your oil supplier to provide the necessary oil within an agreed time in order to maintain the running of machines. The minimum stock levels should be calculated based on your consumption, delivery lead-time and minimum order quantities. Part of the assessment made during the rationalisation process should involve a survey to identify the required stock levels of oils. This is normally done by deciding upon a minimum stock level and a reorder quantity to maintain the stock levels Logging oil use When oil is taken from the oil storage area, knowing where the oil goes is a vital part of monitoring its use. Without these data an effective monitoring system cannot be established and problems with certain plant items may be overlooked. Data need to be collected for all oil that is taken from the store. As a minimum, data should include the type of oil and when and how much was taken. Ideally, they should also include the plant area or machines for which the oil has been dispensed. This information can be used to monitor the oil use and for comparison with the stock purchases for the oil store. Once data are collected they should be processed efficiently to identify any problems quickly. Comments from staff are vital in establishing discrepancies with the normal use figures. The oil issue sheets are best kept in the oil storage area and completion of the sheets should be written into any procedure for oil dispensing. Where oils are dispensed into a container and transported around site for filling plant items, it will be necessary to issue forms to the staff involved in the management system. Photocopy the oil issue sheet in the pocket in the back of this Guide to help you. Tip 12

20 Bar-coding allows easy oil use comparison Ford s Dagenham plant is currently installing a bar code system to monitor oil consumption by every plant item. Although this is a large and complex project, it will allow Ford to monitor all oil use. The oil history of any plant item will be available to identify problems and reduce oil use. A further benefit is that this will allow easy comparison of oil consumption for similar machines Logging waste oil The monitoring of waste oil generation can be as important as the monitoring of fresh oil application. In order to understand use of plant items it is very useful to know the quantity of waste oil arisings. A log book in the oil store or a central control room can be used for waste oil arisings. Any significant quantity of waste oil should be recorded, along with basic details of the type and quantity. The combination of the data from the oil dispensed and the waste oil generated will help you to understand your oil requirements on-site. Tip Good stock control will eliminate waste by reducing the oil used at source. This is the priority as it saves on the cost of oil used as well as the disposal and any other costs associated with handling oils on-site MEASURING TO MANAGE When you are producing regular and accurate data for oil movements on-site, anaylsis will allow you to identify trends and this will help you to begin to reduce oil consumption. The data gathered from the stock control system can be used to set some targets for the reduction of oils, to cut down on waste and benefit from savings. Reliable data are a vital component of this system and it is important to win the confidence of staff. The basic stages of the monitoring and targeting process are: collection of oil usage and waste oil data; monitoring of oil use; setting targets that your company can achieve with the use of the techniques outlined in this Guide; using the data to identify problems with machines. Minimisation measurement and management 4.5 LUBRICATING PROCEDURES In order to formalise stock control and a monitoring system, written procedures may need to be introduced. A written procedure can be included in a management manual as part of a company quality system to harmonise oil practices. Training of the relevant staff is a task that can be carried out quickly and efficiently, ensuring staff are aware of the procedures and the oils used. Your oil procedure should contain the following elements: use of the oil store, including the procedure for gaining access; the operation of dispensing oils; stock control; logging of oil use and waste oil; 13

21 health and safety issues, including the procedure for handling oil containers 1 ; how waste oil should be handled and where it should be stored; emergency spill procedure. 4.6 CONDITION MONITORING Condition monitoring involves the taking and analysing of oil samples from plant items to identify any problems. The main uses of condition monitoring are to: identify any debris within an oil to highlight problems with wear of machinery and components, eg bearings; establish the performance and suitability of an oil for its application; see if an oil change is required. The final point is very important as it illustrates how condition monitoring can be included in maintenance procedures. Oil needs to be changed only when it becomes excessively contaminated or the additives become depleted and it performs less efficiently. Minimisation measurement and management 4 The benefits of condition monitoring include: cost savings by extending oil life and avoiding costly changes; early warning of machinery breakdown or excessive wear of components; provides a benchmark for comparing identical machines; a better understanding of the suitability of each oil. Condition monitoring is a further step in minimising oil consumption at source. This also reduces the waste of resources spent on oil changes. Condition monitoring is seen as listening to plant items so that oil is changed only when necessary. Condition monitoring is proven in industry. It has the potential to reduce oil consumption dramatically where oil changes are customarily made on a time or plant running hours basis. Possible savings from one machine The following example illustrates the savings possible from condition monitoring on just one machine, where previously the oil was changed on the basis of plant running hours alone. Condition monitoring was carried out on a monthly basis on this important production machine at an engineering company: Cost of oil change 250* Cost of condition monitoring per sample 12 Number of samples taken 10 The sample from month ten indicated that the oil was still fit for its purpose. The engineering company did not change the oil and saved 250. The monitoring had cost them 120, resulting in a saving of around 130. The company estimates that one all-clear result in 20 makes the condition monitoring worthwhile and cost-effective. *This is the cost of oil, labour and lost downtime Health and Safety in Engineering Workshops, from HSE Books, can be purchased for 9.50 and is available from: HSE Books, PO Box 1999, Sudbury, Suffolk, CO10 6FS. Tel: , Fax: See also or call the HSE infoline

22 4.6.1 On-site condition monitoring Where on-site laboratory facilities are available, condition monitoring can be a part of the laboratory s duties. The analysis of oil can be complicated, so it is important to establish the level of oil analysis required Off-site condition monitoring The majority of engineering companies that carry out condition monitoring use the services offered by their lubricant suppliers or specialist laboratories. During the consultation process with suppliers to assess the potential for rationalisation it is worth finding out about condition monitoring services as part of the contract. The results from condition monitoring will normally be displayed in a brief report which provides a chemical analysis of the oil, highlighting any abnormalities. The report will often be accompanied by a form which lists various chemical components and their likely source. The procedure for taking a sample should be followed closely to avoid any contamination of the oil after it has left its point of use. This could lead to false levels of contaminants. It is important to label each sample and state clearly the oil type and the plant item from which it has come The cost benefits of condition monitoring The services offered for condition monitoring normally cost around per sample. The results can lead to several outcomes: the oil may need changing if contamination is high or depletion of additives has occurred; the oil may be satisfactory to leave in place but with a requirement for increased monitoring of parameters that could lead to problems in the future; the oil may be in good condition and thus not need changing. Morgan Matroc s Rugby Division uses condition monitoring as part of its Total Preventative Maintenance programme. The Division changes oil based on the reports received from the oil analysis. Just one report in 30 that recommends leaving the oil in place, when previously it would have been changed, will pay for all of the samples. For more details see Industry Example 1 in the pocket in the back of this Guide. Tip Work out how much is saved when the report from a sample recommends leaving the oil in place without a change. Include all costs in this calculation, including labour. Compare this saving to the cost of the sampling. In most cases, if the true costs of an oil change are compared with the cost of the monitoring, they will be higher. Condition monitoring will usually pay for itself if it saves just one oil change in ten. 4 Minimisation measurement and management The effectiveness of the programme will depend on the actions taken as a result of the reports. If oil is changed when it could have been left then the scheme will not be cost-effective. Similarly, changing oil without investigating the reasons for the degradation can overlook and ignore possible plant problems. 4.7 OIL MANAGEMENT SERVICES OFFERED BY OIL SUPPLIERS An oil management package is available as part of the services offered by many oil suppliers. This is best applied to sites that have a considerable use of oil which needs to be well managed. In many cases, the oil supplier will have an employee on-site to look after the oil store, distribute oils around the site and keep the monitoring programme up-to-date. 15

23 Although at first this may seem an expensive option, many engineering companies find that they are spending a lot of time and resources on managing lubricants. When all costs are considered, it is often possible to justify employing the services of a lubricant company which has added benefits: reordering is done directly from the oil store to the lubricant supplier; technical support will be readily available; staff do not have to worry about maintaining the oil store as this will be done by the lubricant supplier; the lubricant supplier will often use a computer package which can readily produce monitoring data as part of your management system. The strength of computer packages for oil systems is that they allow scheduling of lubricating tasks so that full control of all plant items is achieved. Each day, the system will produce the lubricating tasks for that day. If missed, the system will continue to generate work orders, ensuring that plant items receive attention and lubrication is not ignored. The packages can be used to produce data on consumption by machines as part of the monitoring system detailed in Section 4.6. Consult your oil supplier about computer packages and investigate the: Minimisation measurement and management 4 features of the software; cost of installation and back-up; assistance that the software will provide with the overall oil management; benefits of using a computer package to assist in procurement of oils; compatibility of their system with your company. Simplified oil management ensures high quality products Rolls-Royce s Ansty site makes and repairs engine parts for aero, power generation and marine engines. It employs staff. There are very different production and maintenance processes in different areas of the site, so a system that results in the effective management of oils without compromising the quality of products, is vital. Rolls-Royce has introduced a computer package to schedule maintenance of plant items. The Company is aiming for ISO certification and has made several improvements to its oil management procedures, including: the use of a range of equipment to facilitate the safe handling and storage of oils on-site*; the use of spill kits around the site, located in key areas and stocked with the necessary equipment to deal with most spills; the use of a single supplier, where possible, to simplify the procurement of oils. The main benefits are: a minimal risk to the environment from oil spillage; simple handling of oil containers with the correct equipment; safe storage of oil drums both inside and out; fewer plant problems as a result of the maintenance planning; the ability to contain and clean-up any oil spills effectively. * Further details on good practice for oil storage and handling can be found in Section 5. 16

24 5 GOOD PRACTICE FOR OIL STORAGE AND HANDLING The correct storage and handling of oils will avoid waste resulting from either damage to or contamination of the product within its container, or from a leak or spill of the product. The following Sections outline how to avoid waste from poor handling and storage. 5.1 THE OIL STORE Ideally, oils should be stored inside or, at least, under cover from the elements. Where drums of oil are stored in their vertical position and exposed to the elements, there is a high chance of contamination, particularly from rainwater. This leads to defective oil which will not adequately protect the machine it is used in. If water accumulates on the top of a drum, particularly during the warmer summer months, it can cause contamination. As the contents of the drum warm up and expand during the day, a small amount of air from the drum will be forced out. As the drum contents cool later, a vacuum is created and the water on the drum will be sucked in. If this occurs with insulating oil there is a risk of failure of the insulating properties of the product. Oils are susceptible to extremes of temperature. Oils can be affected by low temperatures and extreme cold should be avoided. Similarly, high temperatures, such as may be found close to boilers or steam pipes, can be detrimental to the oils properties. The location of the oil store is ideally a central one in order to minimise the transportation of oils around the site. This reduces the labour input, makes oils more accessible and reduces the risks associated with transporting oils Storage of drums Drums are ideally stored in their horizontal position, on racking away from any possible surface water. Where drums cannot be stored off the ground on racks, pallets will help to keep them away from standing water. Where drums are stored in their vertical position, ensure the label is visible and that stock is still rotated. The fitting of taps can allow the dispensing of oils into smaller containers in a controlled manner. Drip trays will be required under each tap to collect the small amounts of oil that will inevitably drip after dispensing. Bunding should be in place and intact around racking, or in doorways. 5 Minimisation measurement and management Good practice example of an oil store at Morgan Matroc - note the bunded pallet system with ramps onto it. 17

25 5.1.2 Stock control within the store Stock rotation is important and is best tackled by adopting a first-in-first-out system to avoid oils being left to go out of date. Using the data from the oil use survey (see Section 3), it is important to understand which oils are used frequently. The high use oils should be positioned so that they can be reached easily and are less likely to be hidden away at the back of the store. 5 Minimisation measurement and management Horizontal storage at National Power, Aberthaw. The drums are arranged in bays, three deep, for each type of oil. The lower drum is used first so that stock rotation takes place. Stock checking is very easy as stock check sheets are arranged in the same order as the drums Waste oil Waste oil should be stored in separate, clearly labelled containers to avoid any mistakes that could lead to waste oil being used instead of fresh oil. Within the store, a container should be clearly labelled and used for waste oil only. The quantities of waste oil removed from the store should be logged as part of the overall management system to account for oil movements. Further details are given in Section Labelling oils It is important to ensure that all containers are clearly labelled so that staff can easily identify the oil they require. As oil is moved around it is important to ensure that the contents labels are left in a visible position. Signs next to rows or columns of oil will help you to organise the oil store. Photocopy the oil store checklist in the pocket in the back of this Guide to help you. Tip 18

26 5.2 HANDLING OIL CONTAINERS A range of devices exist for the handling of drums that allow simple movement. Devices are also available for manoeuvring drums through 90 from their horizontal position to their vertical position or vice versa. Intermediate bulk containers (IBCs) can hold litres and are easily transported around the site. They can be manoeuvred by a forklift truck although, due to their construction, they must not be carried from above. Tip When selecting devices to handle oils, it is important to establish the requirements of all staff who handle oils. Poor handling leads to many spills that waste oil and require expensive cleanups. Good handling practices, with the appropriate equipment, will reduce the cost of spills. Once dispensed from larger containers, oil will often be transferred into plant items via a jug or similar container. It is vital to use clean containers to avoid contamination of fresh oil. Ideally, try to use the same jug for one type of oil and avoid any contact with waste oil. Tip Table 1 in Section 5.3 will help you with the selection of oil containers for handling and storage. Move to IBCs saves time and money Adtranz, a rail vehicle and component refurbisher, has saved 1 650/year through improved oil management. The Crewe site employs people, has a turnover of 85 million, and uses litres/year of hydraulic and lubricating oils. A risk assessment was carried out for oil use as part of the Company s environmental management system for ISO This led to improved oil management and the following benefits: the change from barrels to IBCs has realised savings of 1 100/year; central collection and selling of waste oil provides revenue; management and operational safety procedures exist for all oils and their use; improved housekeeping reduces health, safety and environmental hazards resulting from oil leaks and spills. Adtranz has replaced 200-litre barrels with litre IBCs for 40% of oil use. There are significant handling and storage benefits. A fork-lift truck can carry only two barrels (400 litres), one IBC holds litres. Housekeeping has been improved, with fewer spills and drips. The same volume of oil can be stored in far less space. The IBC oil cost is 51 pence/litre, the barrel oil cost is 57 pence/litre, a saving of 10% on oil purchase. 5 Minimisation measurement and management Staff training has been fundamental to the success of the oil management improvements. A tailored training programme on how to use spill kits has been developed internally. Training is ongoing, so as experienced, skilled operators retire, new operators receive effective training to ensure the high standards are maintained. 19

27 5.3 LEAKAGE AND SPILL CONTROL Preventing leaks from drums within the store will improve housekeeping issues and make the store safer for staff walking around. Leakage and spill control is achieved with a variety of equipment, depending on the quantity of oil. Tip Table 2 will help you with the selection of leak and spill control products. When selecting products for leakage and spill control 2, it is important to obtain samples from a number of suppliers and ensure that they are suitable for your needs. Consider the range of products available and select the one that offers good absorbency and is the correct size. It is important to consider other issues such as housekeeping and health and safety requirements when making your selection. 5 Minimisation measurement and management IBC storage at National Power, Aberthaw 20 2 Spill control products are available from a number of suppliers. For further details contact the Environment and Energy Helpline on

28 Product Description Uses Indicative price range ( ) Notes Storage Decking for oils Decking units can make an oil storage area safe by containing spills and leaks Units can be added to cover the floor area required. Sump pallets Pallets to hold two or four drums with a sump to contain spills Dispensing sump trolley Used for transporting and then dispensing a single drum. Fully bunded when in horizontal position Good for where oils need to be stored next to their point of use. Drum racking Racks for the storage of drums, normally in pairs or rows of four Plastic or metal racks. Some may be stacked. Some have integral bunds ( 275+). Conventional racking systems The racking found in most warehouses Conventional racking can hold drums horizontally with special chocks. Handling Fork-lift truck without attachment Drum trolley Basic fork-lift without any attachments. Can be used for simple transporting on standard pallets. Simple trolley to move 205- litre drums. More expensive models have straps or larger wheels. If fork-lift trucks are used for transporting oil, they should have a spill kit onboard Good for reducing the manual handling of drums. 5 Fork-lift attachments Drumtipping device Key: Devices that slide over the forks to increase the capabilities of a fork-lift. Many variations available from twin drum carriers to carriers that wil tip a drum on end. A simple device for safely tipping a drum into the horizontal position. IBC 205-litre drum Small oil container Table 1 Storage and handling products selection table Discuss the devices with staff who handle drums to establish the best option. 35+ Reduces manual handling for staff. Reduces the risk of spillage. Minimisation measurement and management 21

29 Product Description Leaks Minor spills Major spills Indicative price range ( ) Notes Absorbent granules Clay, woodchip or chemical absorbents. 7+ per bag Absorbs around 30 litres/bag. Absorbent mats Square mats, normally around 0.5 m pence + each Absorbs litre/mat. Small booms Absorbent booms with diameters around 7-10 cm. Normally between 1-6 m long /m (8 cm diameter) Absorbency depends on thickness. 8 cm diameter booms absorb around litres/metre of length. Large booms Thicker booms of varying lengths. Around 10/m Absorbent pillows Similar to pads and booms but used to lower into interceptor drain or tanks. 5+ Dikes Simple, non-absorbent 150+ Ideal for recovery of booms to reduce the product. spread of a spill. Drip trays Trays to put under drums More expensive types with taps fitted or under contain absorbent small leaks in machines. materials. 5 Drum blocker A substance that can be used to plug a rupture in an oil container. A temporary measure to avoid spills. 5 (per small container) Useful to include in spill kits carried on fork-lift trucks. Minimisation measurement and management Drain covers In the event of an emergency these covers will protect surface drains. Best used in conjunction with booms. Bunds Walls constructed around Varies tanks or storage areas to contain leaks or spills. (depending on size) Table 2 Leak and spill control products selection table Low-cost options are resistant mats. Highcost options are steel clamps. The inside volume of the bund should be at least 1.1 times the volume of the largest tank or container. 22

30 Change in spill management reduces workplace dust LDV, a Birmingham-based van manufacturer that produces vans/year, wanted to improve its environmental performance. The Company decided to improve its oil management procedures to minimise the risks associated with handling and storing oils on-site. For the last few years LDV has used absorbent clay granules to soak up minor oil spills at the end of the production line. Although effective at soaking up oil, the granules tended to produce a large amount of fine dust, which caused a housekeeping issue and a potential health and safety problem due to the possibility of dust inhalation. In order to remove the problem of dust and to avoid the absorbent clay being trodden around the area, a project was set up to find a suitable alternative. LDV considered several absorbent mats that would eliminate the use of clay granules. However, even these could produce small but significant amounts of fibre from the fibrous material from which they are made. This would cause a great deal of problems in the paint shop and press shop. The solution was to use absorbent mats and cover them with plastic grid tiles to allow staff to walk around without oil or oil and clay mixtures underfoot. LDV will reduce the time spent on general housekeeping cleaning and the risks of personnel injury as a result of investing in absorbent mats. The savings are not easily quantified but the benefits demonstrate good practice. Waste oils were left for collection by a waste contractor and LDV saw the risks of these oils being used as fresh oil. A labelling system for waste oil containers has eliminated the risk of waste oil being used as fresh. Spillage containment pallets, designed to hold 110% of the contents of the largest barrel, were purchased to hold any day-to-day spills, or in the worst case, the entire barrel. A drain plug is available for easy emptying of the pallets. The benefits realised so far from the oil management programme include: elimination of the risks associated with waste oil being used as fresh oil; removal of a housekeeping and health and safety problem with the use of appropriate absorbent materials for spills on the production line; introduction of the formal system which sets a high standard for handling fresh and waste oils. The oils at LDV are managed by a facilities management company that ensures stock levels are maintained. Improvements in the use of oils include: the writing of a procedure for oils which aims to use good practice in all areas; the training of staff in the procedure, and refresher training; the training of track staff to solve minor leaks, and better notification to the maintenance department when leaks occur; improved housekeeping on the production line. 5 Minimisation measurement and management 23

31 5.3.1 Emergency spill kits Spill kits should be available at sites where an environmental hazard would result from a spillage or leak of oil. The contents of a kit should reflect the nature of the spill or leak that could occur. The kit should contain a number of basic items: absorbent materials; booms to contain pools of oil; gloves for the protection of staff handling oils; bags for waste products; instructions for staff on how to use the equipment effectively and safely. Kits can be purchased ready-made from most equipment suppliers and generally contain the items listed above. Prices for kits vary and it may be more cost-effective to build up your own kits which are tailored to the needs of your site. 5 Minimisation measurement and management 24

32 6 ON-SITE RECOVERY OF WASTE OIL Following the principles of the waste minimisation hierarchy described in Section 1, introducing re-use or recovery options should only be considered once oil use has been minimised. This Section contains advice on good practice for the re-use of waste oil. 6.1 RECLAMATION OF USED OILS If oils are to be used again, they must be reclaimed under controlled conditions to avoid any further degradation of their quality. None of the recovery equipment should come in contact with waste oils for disposal. Pumps and containers for the oil should all be free of any contaminants to maintain the quality of the oil that is being reclaimed. Ideally, reclaimed oil should be of one type, as mixed oils cannot be used for their original applications. If oil is to be reclaimed and re-used in the same plant item, it should be kept separately from all other reclaimed, waste or virgin oils. If oils are reclaimed, they should be available in sufficient quantities to make the system cost-effective. The procedure for reclaiming oil should be written into an oil management system to control the transfer and storage processes. Containers may need labelling to avoid confusion with other oils. 6.2 RE-USING OIL FOR ITS INITIAL PURPOSE If used oil is removed from its machine, cleaned and returned to use, it is important to check that the properties of the oil remain adequate for the application. If reclamation opportunities are being investigated, oil condition monitoring may assist in the decision process (see Section 4.6). 6 Where only basic filtration and water removal is required to launder an oil, on-site recovery may be possible. Small on-site recovery kits are available on the market to clean up oil for re-use, costing from upwards. Standard filtration equipment is too coarse to remove the fine particulate contamination that can cause problems in hydraulic oil and so specialist filtration systems may be required. These can take a small flow of oil from a hydraulic system and pass it through an ultra-fine filtration system that will remove particles and water. Tip A range of filtration devices are available to the engineering industry. These devices can continuously clean your oil, reducing the frequency of oil changes. This frees valuable production time and allows staff to concentrate on core business activities. Information on filtration units is available from the Environment and Energy Helpline on Re-use 6.3 RE-USING OIL AS A LOWER GRADE LUBRICANT Where oil can be recovered but not used for its original application, there may be opportunities for re-use as a lower grade of oil. This will require some investigation into the condition of the used oil and the requirements of the secondary application will need to be assessed. Failure to investigate the secondary usage could lead to plant problems. 25

33 6.4 RECOVERING OIL FROM WATER Where oils are used on industrial sites, there will often be oil discharges into the site drainage system which should ideally be removed prior to discharge from the site. Depending on the amount of oil and the details of site operations and infrastructure, a number of options are available. Belt skimmers are used to remove oil from water in a sump. They are small devices comprising a motor, belt and collection point (see Fig 9). The motor drives the belt so that it passes into the oil and water mixture, adsorbing oil before lifting it out, back towards the drive. The belt then passes through rollers which remove the oil and drain it into a collection container under the unit. The belt can be constructed from rope or other materials such as polypropylene. The removal capacity of these units can be up to 6 tonnes/hour. Motor drive Waste oil drain Collection drum 6 Belt lowering into sump Fig 9 Belt skimmer Variations include systems with two pulleys, one next to the scrapers to drain oil and the other under the oil and water mixture. Plate units contain a number of sloping plates that allow water to pass through a unit but trap oil for removal. Plate units work on a similar principle to the belt skimmers, using the fact that oil floats on top of water. Re-use A number of companies offer interceptor systems that can be built into a drainage system to separate oil and water. The oil can then be removed by pumping it out. For smaller quantities, absorbent pillows can be purchased with a length of rope to dip into an interceptor drain or tanks. Tip The Environment and Energy Helpline on may be able to assist with a list of suppliers of oil recovery systems. 26

34 7 OFF-SITE RECYCLING AND DISPOSAL OF WASTE OIL In cases where oil cannot be reclaimed and re-used on-site, off-site recycling or disposal are the remaining options. Recycling of oil is likely to increase in the future, as tighter legislation on incineration increases disposal costs. 7.1 OFF-SITE RECLAMATION (LAUNDERING) If used oils require treatment in addition to basic filtration and water removal, off-site reclamation may provide the answer. A number of companies exist that offer a collection, laundering and return service. They will normally use a process of filtration, dewatering and then replenishment of the additives, returning an oil that is of equal quality to the original oil. Owing to the transportation costs involved, significant quantities of used oil usually need to be recovered to make this a financially viable option. The oil will need to be kept separate from other used or fresh oils and it should be of a consistent nature. Gathering accurate data on used oil arisings will assist the specialist waste oil company to offer advice on the available options. 7.2 OFF-SITE RECYCLING (RE-REFINING) Re-refining processes use a variety of technologies to recycle waste oil into a base stock oil ready for blending and the addition of additives to make it into a usable product. Consult an oil recycling company and provide it with accurate data of waste oil quantities. Details can be obtained from the Environment and Energy Helpline on The suitability of a waste oil for re-refining will depend on the: quantity available; nature and degree of contamination; consistency of composition. 7 If the parameters vary considerably, there may be problems for oil recycling companies to take the oil on a regular basis. These details need to be clarified with the oil recycling companies. Recycled oils are growing in popularity and some motor vehicle manufacturers have started to use recycled oil in their vehicles. If this trend continues and demand rises, the infrastructure for recycling oil should develop beyond its current state. In the UK there are relatively few facilities for waste oil recycling. It is hoped that in the future they will be more widespread and available to more companies. Recycling 27

35 7.3 DISPOSAL OF WASTE OILS Waste oils that cannot be re-used or recycled will need to be disposed of in an environmentally responsible manner Handling waste oils Waste oil produces environmental and health and safety risks and should be handled and controlled to avoid such risks. Containers that are to be used for waste oil should be clearly identified and labelled to avoid confusion. Clean drums that have recently had their virgin oil used should not be used for waste oil as this increases the chance of waste oil being used as virgin, with serious implications Disposal options Outlined below are the main options for the disposal of waste oils. Direct burning of waste oils, ie burning waste oil without any pretreatment, is a form of energy recovery. There are three uses for oil as a direct burn fuel: cement manufacture; space heaters; municipal waste and chemical waste incinerators. It is estimated that around 30% of waste oil is burnt in space heaters. Indirect burning of waste oils involves limited reprocessing to allow them to be blended into fuel oil for uses including roadstone plants and power station start-up. Roadstone plants combust waste oil in order to dry limestone prior to sizing and then mixing with bitumen and filler. Roadstone burning accounts for between 60-80% of combusted waste oil. 7 Tip Disposal should be the last option for used oils. The methods of minimisation described in this Guide will offer the greatest savings. Re-use of oil can also provide considerable savings. Where all options have been considered, disposal will offer a final solution. In all disposal cases, waste oils must be dealt with responsibly, taking care to avoid any releases into the environment which can cause pollution or become a health and safety risk to staff. Recycling 28

36 8 ACTION PLAN If you would like to improve your management of lubricating and hydraulic oils and save money: Select the right oils. Investigate which oils you use and which you need. Photocopy the oil survey form in the pocket in the back of this Guide to help you. Rationalise oil use. Talk to your supplier about reducing the variety of oils used. Reducing the number of oils makes management easier and will reduce waste. Implement an oil management system. This will ensure the correct products are stocked in the right quantity. Ensure everyone knows who is responsible for use of oils. Optimise stock control. Photocopy the oil issue sheet in the pocket in the back of this Guide to help measure and manage use of oil. Introduce a system of condition monitoring. Consider best practice of storage and handling. Photocopy the oil store checklist in the pocket in the back of this Guide to help you reduce waste and make the job of using lubricants simpler and safer. Use Table 1 to help choose the tools that you need. Set up a system for spillage and leak control. Use Table 2 to help you. When oil use has been minimised, consider on-site recovery of waste oil. On-site reclamation and re-use may be possible for some oils. This can offset the purchase cost of virgin oil without compromising plant items and production. When oil use has been optimised, consider using an off-site recycling company before disposing of any oil as waste. It may be possible to offset the purchase cost of virgin oil. Where reduction, re-use and recycling is not possible, dispose of waste oil in an environmentally responsible way. Obtain help. The Environment and Energy Helpline ( ) can: 8 Send you copies of relevant Environmental Technology Best Practice Programme publications. Suggest other sources of information. Provide free, up-to-date information on a wide range of environmental issues, legislation, technology and equipment suppliers. Arrange for a specialist to visit your company, free of charge, if you employ fewer than 250 people, at the discretion of the Helpline Manager. 29

37 The Environmental Technology Best Practice Programme is a Government programme managed by AEA Technology plc. The Programme offers free advice and information for UK businesses and promotes environmental practices that: increase profits for UK industry and commerce; reduce waste and pollution at source. To find out more about the Programme please call the Environment and Energy Helpline on freephone As well as giving information about the Programme, the Helpline has access to a wide range of environmental information. It offers free advice to UK businesses on technical matters, environmental legislation, conferences and promotional seminars. For smaller companies, a free counselling service may be offered at the discretion of the Helpline Manager. FOR FURTHER INFORMATION, PLEASE CONTACT THE ENVIRONMENT AND ENERGY HELPLINE world wide web: address: etbppenvhelp@aeat.co.uk

38 INDUSTRY EXAMPLE 1 GG227 GUIDE ENVIRONMENTAL TECHNOLOGY BEST PRACTICE PROGRAMME IMPROVED OIL MANAGEMENT REDUCES PRODUCTION DOWNTIME Morgan Matroc s Rugby Division (a subsidiary of Morgan Crusible Company plc) produces an extensive range of technical ceramic components for a wide range of industries. These include aerospace, defence, medical and telecommunications. It employs 170 staff and has a turnover of around 8 million/year. Improvements in the management of oil at Morgan Matroc has reduced production downtime noticeably over a two-year period, saving both money and time. Dispensing from a small mobile unit at Morgan Matroc, Rugby Division. This unit holds three oils and acts as a transfer from the oil store to the point of use. Reasons for Improving Oil Management Around three years ago, Morgan Matroc decided to focus on the management of its oils in order to optimise usage and reduce the risk of spills and leaks. The initiative was a development of its Total Preventative Maintenance (TPM) programme, and so won management approval. The overall benefits envisaged were reducing production downtime, avoiding costly maintenance activities and reducing the number of unnecessary, and therefore, costly, oil changes.

39 INDUSTRY EXAMPLE 1 Outline of Improvements The following list summarises the improvements that have been made at Morgan Matroc: the oil storage area is now bunded, with oils being stored in rows, each oil having an air pump for dispensing into smaller containers; the oil store has signs to show the oil type in each row as well as a copy of the procedure on the wall; Morgan Matroc has just one oil supplier, and this company provides a full management system, including the provision of a member of staff to manage the oil store and control the procurement of oil; waste oil materials are labelled and disposed of according to the procedure; spill kits are located in key areas; Morgan Matroc has developed a good understanding of its oil use and can easily identify problems. Benefits of Improvements The oil store is now a well-controlled area with bunded decking and spill kits readily available. Storing the drums vertically and using an air pump have proved effective in reducing spills. Morgan Matroc has achieved substantial cost savings through reducing its oil consumption and, more importantly, reducing its production downtime. The provision of spill kits has improved the Company s overall environmental risk management by ensuring there is only a minimal risk of oil spills or leaks becoming a threat to the environment. Problems Overcome Staff required training in the new procedures and this took some time and effort. The end result is rewarding as all staff are aware of the full procedure and can implement it effectively. Staff undergo regular refresher training to keep them up-to-date with any changes. Future Improvements The waste oil product bin is just one example of good practice at Morgan Matroc Morgan Matroc is working closely with its oil supplier to achieve further improvements to the system. Both parties share the common goal of making Morgan Matroc s oil system as efficient as possible, with the least waste and the lowest chance of spillage. Morgan Matroc is planning to introduce a bar-coding system to assist in oil management. The Company takes a proactive approach to oil management and TPM and is keen to review targets and monitor usage to produce continuous savings. FOR FURTHER INFORMATION, PLEASE CONTACT THE ENVIRONMENT AND ENERGY HELPLINE world wide web: address: etbppenvhelp@aeat.co.uk THE ENVIRONMENTAL TECHNOLOGY BEST PRACTICE PROGRAMME IS A GOVERNMENT PROGRAMME MANAGED BY AEA TECHNOLOGY PLC GG227 Crown copyright. First printed December This material may be freely reproduced in its original form except for sale or advertising purposes. Printed on paper containing 75% post-consumer waste.

40 INDUSTRY EXAMPLE 2 GG227 GUIDE ENVIRONMENTAL TECHNOLOGY BEST PRACTICE PROGRAMME IMPROVED OIL MANAGEMENT BRINGS REDUCTION IN OIL USE National Power s Aberthaw Power Station is a MW coal-fired plant in South Wales. It employs 190 staff and has a turnover of 100 million/year. Improvements in oil management have reduced oil use by around 15% at the site, saving substantial purchase costs. Reasons for Improving Oil Management Aberthaw Power Station uses a large amount of lubricating and hydraulic oils in the running of its plant. The Power Station wanted to improve its oil management in order to gain a better understanding of, and achieve a reduction in, oil use, and to monitor the use of plant items. The management gave its full support to the project. Outline of Improvements View of turbine hall at National Power, Aberthaw The following improvements have been made: oils are now purchased from a single supplier; the number of oils used has been reduced from 36 to 18;

41 INDUSTRY EXAMPLE 2 the oil store was renovated with new bunds, horizontal storage for all drums and improved organisation with grades being stacked in a rotation system; the site started using IBCs for bulk oil to avoid handling drums and to avoid the waste that can occur at the bottom of drums. Benefits of Improvements The principal benefits of the improvements made are: a reduction in the quantity of oil used on-site; the introduction of a simple but effective system to control use and distribution; Aberthaw can benefit from the technical support offered by the single supplier; the use of IBCs around the site has led to a reduction in the waste associated with the use of drums and the amount that tend to get wasted in the bottom after dispensing; the reduction of the risk associated with drums being left around the site containing fresh oil that could become contaminated; the reduction of the risk of waste oil in clean drums being used as fresh oil, which would have serious implications; stock control in the oil store is simple as all drums are stored in order with labels showing. IBCs can reduce wastage and make transportation of oil in bulk a simple process. IBCs are moved with a fork-lift, they can be picked up from any of the four sides as they all have a pallet-like arrangement for forks to enter. IBC use at National Power, Aberthaw. Note the ease of stock checking when it is possible to read the level in the IBC. FOR FURTHER Problems Overcome The distribution of oils can be difficult on a large site involving many trips back and forth with drums of oil. IBCs can transport litres safely from the oil store to the point of use. The introduction of IBCs required some changes in handling techniques as they needed to be lowered into the basement area of the Power Station. A special cradle was fabricated along with some suitable racking for the storage of IBCs. Such items make storage and transportation both safe and efficient. Future Improvements National Power, Aberthaw, aims to continue the improvements and believes that further reductions can be achieved. A general increase in the awareness of oil use will help staff to understand the site s oil requirements even better and to avoid any unnecessary waste. INFORMATION, PLEASE CONTACT THE ENVIRONMENT AND ENERGY HELPLINE world wide web: address: etbppenvhelp@aeat.co.uk THE ENVIRONMENTAL TECHNOLOGY BEST PRACTICE PROGRAMME IS A GOVERNMENT PROGRAMME MANAGED BY AEA TECHNOLOGY PLC GG227 Crown copyright. First printed December This material may be freely reproduced in its original form except for sale or advertising purposes. Printed on paper containing 75% post-consumer waste.