Implementing a Lubrication Management Program: How A Sawmill Saved $3M 

Couple years ago, a sawmill in Canada recognized the need to change its lubrication practices in order to address persistent maintenance issues and control rising costs. The sawmill aimed to improve the efficiency of its operations while reducing unnecessary expenses. To begin, they evaluated their current practices to identify gaps and ensure alignment with industry standards and best practices.

Over the next three years, we worked closely with them, partnering to implement a comprehensive overhaul of their lubrication strategy. This involved revising maintenance schedules, optimizing lubrication practices, and improving processes across the board. Key components addressed included lubricant selection, storage and handling, application methods, and staff training.

As a result of these efforts, the sawmill achieved remarkable outcomes, with savings of more than $3 million in oil, grease, and labor costs over the last decade. Furthermore, the long-term impact of this transformation not only reduced operational costs but also improved overall reliability and efficiency across their maintenance operations. The adoption of advanced technologies, such as digital monitoring devices and automation systems, played a significant role in these improved processes.

Understanding the Problem

When they first approach us, the plant encountered several significant challenges:

• Frequent lubrication-related equipment failures: These failures led to unplanned downtime, which disrupted production schedules and increased operational costs. The plant struggled to maintain output levels, and repair teams often had to work on emergency fixes, further compounding the issue. Both over-lubrication and under lubrication contributed to these failures, increasing the risk of wear, overheating, and component breakdown.
• Maintenance costs exceeding budget limits: The sawmill expenses regularly exceeded budget limits due to the need for frequent oil changes, emergency repairs, and high lubricant consumption. These costs were a significant financial burden, making it difficult to forecast and control spending within the maintenance department.
• Inefficient lubrication practices:  The use of incorrect oil viscosities, mishandling of greases, improper lubrication intervals, and excessive lubrication caused accelerated wear and tear on machinery, resulting in unnecessary expenses.

Poor documentation and management of lubrication activities further exacerbated these issues, making it difficult to track, report, and improve lubrication processes.

These inefficient practices contributed to a broader lack of optimization in the lubrication process, leading to both operational inefficiencies and avoidable costs.

The Transition to an Optimized Lubrication Program

Between 2012 and 2015, the sawmill recognized the need to overhaul its lubrication program in order to address operational inefficiencies and rising costs.

To achieve this, they implemented a series of strategic steps to optimize and achieve a reliable lubrication process, reduce waste, and streamline maintenance efforts:

• Structured lubrication plan: A comprehensive plan was developed, aligned with industry best practices (types of grease, quantities, ultrasound grease gun), to ensure that all lubrication tasks were carried out consistently and efficiently across the operation. This included the development and implementation of standard operating procedures (SOPs) to establish consistent, high-quality lubrication practices.
• Mapped lubrication tasks: The plant mapped out specific lubrication types and tasks for each asset and implemented standardized maintenance routes. This step ensured that each piece of equipment received the right amount of lubrication at the right time, reducing over-lubrication or missed maintenance.
• Lubrication Management Software: The sawmill leveraged software to track and optimize lubrication tasks. These tools helped reduce waste and inefficiencies by providing insights into lubrication needs and scheduling.
• Modified equipment: To further reduce costs, some equipment was modified to improve lubrication accessibility. These modifications made it easier for maintenance personnel to perform lubrication tasks, which, in turn, reduced labor costs.
• Personnel training: Recognizing the importance of long-term success, the sawmill invested in training staff to follow best practices. These trainings included instruction on the use of high performance lubricants and new technologies, ensuring that employees adhered to the new processes, reducing unnecessary lubricant usage and maintenance work.
• KPIs: Key performance indicators were established to monitor the effectiveness of the new lubrication program. These KPIs helped the plant track cost savings, efficiency gains, and overall performance improvements.

A dedicated program leader was appointed to oversee the transition, coordinate initiatives, and ensure best practices in lubrication management were followed throughout the process.

Although the initial implementation faced some challenges, the sawmill remained focused on the long-term benefits of these changes. Over time, these efforts, which included the optimization of lubrication processes and the implementation of structured lubrication programs, began to deliver significant financial savings and improvements in equipment reliability. These initiatives were part of broader programs aimed at achieving a successful program, ensuring machinery health, operational reliability, and equipment longevity.

The Results: 10 Years of Sustained Benefits

1. Reduction in Oil and Lubricant Consumption

The sawmill initially followed a time-based oil change schedule, replacing oil seasonally to adapt to temperature variations. During winter, they used viscosity 32, a thinner oil suited for cold conditions, while in summer, they switched to viscosity 68, a thicker oil designed to withstand higher temperatures.

However, this seasonal adjustment led to excessive oil consumption and rising procurement costs, with the plant using 60,000 liters of oil annually at $6 per liter, amounting to $360,000 per year in 2012. Additionally, the lack of oil filters on the equipment caused multiple hydraulic leaks, further increasing expenses related to oil consumption.

To address these issues, we suggested that they adopted a more efficient approach by switching to a synthetic 46-viscosity oil year-round and integrating filtration systems. The use of high performance lubricants, such as synthetic oil, improved efficiency and equipment reliability. Additionally, by optimizing lubrication intervals based on actual operating conditions, the sawmill was able to further reduce unnecessary oil changes and consumption. This change reduced oil consumption by 60%, resulting in annual savings of $216,000.

2. Optimization of Greasing Operations

Initially, to fulfill their greasing task, five part-time workers were assigned to grease the plant every weekend, which required a total of 120 labor hours per week.

However, by adjusting the lubrication frequency and quantity, the need for these part-time positions were eliminated, leading to a reduction in labor costs of approximately $90,000 annually. Improved documentation and management of lubrication activities also allowed for better tracking and reporting of each lubrication event, supporting quality control and continuous improvement.

Additionally, grease usage decreased, and the frequency of breakdowns caused by over-greasing was significantly reduced.

3. Reduction in Systemic Failures

Previously, 60% of mechanical interventions were related to lubrication issues. By correcting oil and grease viscosities and quantity, and addressing both over-lubrication and under lubrication, the sawmill achieved a significant reduction in breakdowns, which lowered emergency maintenance costs and extended the lifespan of the equipment by ensuring optimal machine performance and reliability.

• Over-greasing was a major contributor to equipment failures, leading to unnecessary repair costs.
• The optimized lubrication program reduced these failures, improving asset and machine reliability and lowering repair expenses.

Conclusion and Recommendations

In conclusion, implementing an effective lubrication management program is essential for maximizing equipment reliability, minimizing maintenance costs, and driving continuous improvement across your operations. A successful lubrication program goes beyond simply applying oil or grease, it requires a comprehensive approach that includes contamination control, oil analysis, proper lubricant selection, and regular audits to ensure best practices are followed.

To achieve lubrication excellence and reduce overall maintenance costs, organizations should consider the following recommendations:

By taking a proactive approach to lubrication management and investing in the right tools, training, and technologies, organizations can reduce downtime, improve equipment uptime, and achieve significant cost savings. Prioritizing a well-structured lubrication program not only protects your vital assets but also supports long-term operational success and reliability.

In 2012, when the sawmill realized that their strategy was not effective and decided to trust our experts, they embarked on a new path towards excellence in reliability and maintenance. The sawmill’s journey serves as an example of a successful program, demonstrating how a structured approach to lubrication management can drive significant improvements.

By making the decision to overhaul their lubrication practices, including advancements in machinery lubrication, they not only started to see significant cost savings, amounting to over $300,000 annually, but also improved the overall reliability of their equipment. With fewer unexpected breakdowns and a more proactive maintenance approach, their maintenance teams were no longer caught in the cycle of reactive repairs.

Christian Daoust
Supervisor / Industrial Reliability Services – Laurentide Controls
[email protected]