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RAW MATERIAL CONSUMPTION


CONTRIBUTING RE.ENGINEER Kevin Lane CHALLENGE Raw material consumption is one of the largest cost for any business and probably only second to labor. When you reduce the consumption of materials, there is significant cost savings which can add up to profits at the end of the day.

SOLUTION The most cost effective way a business or plant can improve their consumption is with accurate metering that is repeatable. Calibration is fundamental to the operation of an measurement system and without it, organizations can expect to have some level of uncertainty as it relates to their most critical operating indicators, commercial or inter-company transactions (goods sold or purchased). In a well- functioning measurement system, agreements are in place to ensure orderly transactions.


RESULT One project that I completed saved right at $900,000 per year and we only spent $50,000 on the equipment. Another custody transfer project I completed saved $1 million per year and the equipment was only $30,000. At a total of $1.9 million, both of these projects yielded an immediate Return on Investment that can be realized year after year.

IMPACT $1.9 million

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