REDUCE YOUR OIL CHANGE COSTS BY UP TO 50%

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Hilary Merritt
6 years ago
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1 REDUCE YOUR OIL CHANGE COSTS BY UP TO 50% Without Putting Your Fleet at Risk While historical recommendations call for oil changes es every 3,000 miles or three months, advancements in oil and oil filter technology are changing how we should view w the typical oil change interval. This paper looks at some of those innovations, and best practices to follow with your ur preventive maintenance plan and optimize your fleet s oil change regimen. The Next Generation Oil Filter

OIL CHANGE PROGRAM ELEMENTS VEHICLE/ENGINE USE/ENVIRONMENT OIL AND WEIGHT OIL FILTER AND DISPOSAL CALCULATING ANNUAL PER-VEHICLE COST FOR OIL CHANGES $15 oil ($.

per PM check 3 OIL CHANGES PER YEAR $60 x 3 = $180 Annual Per-Vehicle Cost for Oil Changes Oil is one of the fundamental components of running a smooth fl eet operation, and, aside from fuel and

Changing oil infrequently results in increased downtime and affects your bottom line, while changing oil too often adds unnecessary costs to your fl eet operation.

While historical recommendations have called for oil changes every 3,000 miles or three months, advancements in oil technology and oil fi lters are changing how we should view the oil change interval.

2 OIL CHANGE PROGRAM ELEMENTS VEHICLE/ENGINE USE/ENVIRONMENT OIL AND WEIGHT OIL FILTER AND DISPOSAL CALCULATING ANNUAL PER-VEHICLE COST FOR OIL CHANGES $15 oil ($.50 x 6 qts) $5 filter $40 labor $60 COST PER OIL CHANGE 15,000 vehicle mi. per year 5,000 mi. per PM check 3 OIL CHANGES PER YEAR $60 x 3 = $180 Annual Per-Vehicle Cost for Oil Changes Oil is one of the fundamental components of running a smooth fl eet operation, and, aside from fuel and tires, oil change costs are probably your largest expense. Changing oil infrequently results in increased downtime and affects your bottom line, while changing oil too often adds unnecessary costs to your fl eet operation. At the heart of a strong fl eet preventive maintenance (PM) program is making sure that your vehicles are running the right oil with the right fi lter and at the right oil change interval. While historical recommendations have called for oil changes every 3,000 miles or three months, advancements in oil technology and oil fi lters are changing how we should view the oil change interval. But how do you determine the right oil and fi lter combination at the right oil change interval for your fl eet? The following is a seven-step approach to help fleets answer this important question: 1 Understand Your Current Oil Change Costs Before making any changes to your PM program, you should fi rst determine your current oil change costs. This includes not only the oil you use, but also the fi lters, the man hours and labor rate, the recycling/disposal of the oil and fi lter, and even the downtime costs for the vehicle sitting on the lift instead of being on the job. To properly calculate your oil change costs, fi rst determine: Vehicle oil sump capacity Labor rate per hour Oil change time in minutes Cost of oil per quart Oil fi lter and disposal cost Number of vehicles in the fl eet (you may want to segment your fl eet by vehicle type) Oil change interval Annual mileage per vehicle By multiplying the man hours and labor rate, oil, and fi lter costs, then determining the number of oil changes performed during a 1-month period, you can calculate the annual per-vehicle cost, as well as how much you are spending on your entire fl eet. For example, if you spend $15 on oil ($.50 x six quarts), approximately $5 on a fi lter, and about $40 in labor, that s $60 for one oil change. And, if you have a vehicle that runs about 15,000 miles annually with a PM of 5,000 miles, you are spending about $180 on that vehicle per year on oil changes. Multiply that for a fl eet of 100 vehicles and you are looking at $18,000 annually; 1,000 vehicles will cost $180,000. When dealing with a mixed fl eet, it is crucial to perform the above assessment for the key segments of your fl eet. You can segment your fl eet based on make, model, mileage, age, and use. How you segment your fl eet is up to you, but if you have a mixed fl eet, there is a good chance that you should have a different PM approach for each segment.

A thoughtful sampling program can be time and cost effective, and boost your confi dence that you are not putting your fl eet at risk when increasing an oil change interval.

For example, a commercial fleet in Florida has seen all of these benefits and more from switching to reusable filters, including: Increased oil change interval from 5,000 to 10,000 miles and

3 A thoughtful sampling program can be time and cost effective, and boost your confi dence that you are not putting your fl eet at risk when increasing an oil change interval. FLORIDA COMMERCIAL FLEET NETS BENEFITS FROM REUSABLE FILTERS Reusable oil filters can benefit fleets in a number of ways, from less downtime to lowered costs and reducing the carbon footprint. For example, a commercial fleet in Florida has seen all of these benefits and more from switching to reusable filters, including: Increased oil change interval from 5,000 to 10,000 miles and currently testing 15,000 miles Reduced oil change cost by over 30% Helped detect engine issues before becoming serious Enabled company to make a green statement through reduced oil consumption and the elimination of used filter disposal Not needing to buy and stock oil filters for most units Estimate the Value of Extending Your Oil Change Interval Extending oil change intervals is a popular topic, but the fi rst question you should ask is whether it s worth it for your fl eet? This is why Step 1 is so valuable, because it makes it easy for you to estimate the potential savings by each segment. You may fi nd that it makes sense for certain segments of your fl eet but not for others. For example, a high-mileage or severe-duty vehicle may not be a good candidate for extended oil change intervals, while a sedan used by sales or light-duty delivery vehicle may benefi t from extending the oil change interval. 3 Know Your Options and Develop a Game Plan More and more manufacturers are recommending moving to synthetic oil, which raises up-front costs but increases the interval between oil changes. Synthetic oil is a good option, but it may not make sense for all vehicles. Again, this is where the segmentation discussed in Step 1 is useful as well as the suggested analysis in Step. Oil is not the only factor that you should consider in developing your PM game plan. Recent developments in cleanable, reusable fi lters make it imperative that the fi lter be considered as well. These fi lters can help you safely increase the useful life of your oil by keeping it cleaner for longer. Plus, the right oil fi lter can increase the protection of certain vehicles, particularly those that spend a lot of time idling. But, like your oil choice, you may fi nd that not all vehicles are appropriate for a reusable fi lter. Leverage the knowledge of your peers as well as your vendors when developing your game plan. Ask them for their ideas as well as the testing data that supports their claims. If they are unwilling to provide you the data, you should question their claims. The better vendors will be more than willing to help you develop a testing plan. Of course, every vendor will have certain biases, but you can design a testing plan to nullify these biases. 4 Take a Data-Driven Approach to Your Testing Plan Determining the proper miles or hours between oil changes should not be left to chance. Too much money is at stake, which is why more fl eet managers are turning to oil analysis as a guide to oil change management. An oil analysis will inform you of how well the oil and fi lter are protecting your vehicle. In addition to measuring the overall health of your oil, an oil analysis report can identify: Coolant contamination caused by an exhaust gas recirculation (EGR) system, oil cooler, or head gasket failure Wear metal contamination due to turbo charger, bearing, or piston failure Out-of-spec oil properties, which can be caused by over-extended oil, fuel in the oil, or injector failure Dirt contamination caused by loose clamps, split hoses, or a clogged air fi lter. 1 3

SHOULD YOU INVEST IN AN OIL ANALYSIS MACHINE? Some fleets have been able to justify the purchase of an oil analysis machine by pointing out: Increased resale value.

4 SHOULD YOU INVEST IN AN OIL ANALYSIS MACHINE? Some fleets have been able to justify the purchase of an oil analysis machine by pointing out: Increased resale value. Sellers are able to provide a detailed, historical PM report. Extended oil change interval schedule. Fleets save considerable money by using less oil and fewer filters, as well as cutting down on labor costs. Increased component longevity. Wear particle size helps you determine when to replace parts, ensuring you do not do it early. Decreased replacement costs. Reduces engine breakdowns and parts replacement. Measurement of oil viscosity. The viscosity, or thickness of the oil, tells you how well oil is lubricating your engine components. Try our Fleet Savings Calculator at An oil analysis can cost as little as $40 per oil sample, but the sampling process and the analysis of the results can be time consuming. It is not practical or necessary to perform an oil analysis on every oil change for every vehicle. A thoughtful sampling program can be time and cost effective, and boost your confi dence that you are not putting your fl eet at risk when increasing an oil change interval. Further, it can identify potential risks in your current PM program. 5 Implement the Testing Plan Once you have developed the testing plan it s time to implement. We strongly suggest bringing a few of your techs into the loop. They can help administer the test and ensure that it stays on track. Use multiple test vehicles rather than one or two because you don t want the test to be wiped out by a vehicle incident, a missed PM or another mishap. Leverage your better vendors. They can lend a hand with the implementation. Plus, they are likely to have conducted similar testing with similar fl eets, so they can help ensure that you do not get off track. They may even help defray some of the testing and analysis costs. 6 Read the Results This is where your Step 1 analysis and the oil analysis come together to help you determine the proper course of action. But, this data should be used as an aid to your judgement. When the results are available, ask yourself if the results are conclusive in terms of the fi nancial benefi ts. If they are, then your decision is made easy. Unfortunately, the results frequently fall into a grey area. When this happens, don t be afraid to redo the test or perform a different version of the test, but only if the results are likely to be different, and the effort worth the time and money. As with Step 4, don t be afraid to seek the assistance of your peers and vendors. They may have data that you can draw from to help you make a decision. SAMPLE 7 Monitor Performance Once you implement, continue to monitor the performance of your fl eet. Consider new tests as your fl eet ages, new vehicles or types of vehicles with different engines are acquired, or when vendors bring new innovations to market. SAMPLE 4

HUBB OIL FILTER HUBB s unique design and CNC production process enables it to improve oil flow by up to five times, while capturing more contaminants from combustion which keeps the oil cleaner,

The HUBB filter uses a patented filter-in-a-filter design that improves oil flow, reduces engine friction and keeps oil clean, longer than other reusable or conventional filters.

Most fleets can see 10-0% in savings in the first year, and up to 50% or more in subsequent years by implementing the HUBB program.

About HUBB HUBB is a revolutionary, reusable oil filter for most passenger cars and light and medium duty trucks that use a spin-on filter.

HUBB s patented filter-in-a-filter design is made of a surgical stainless steel filter weave, rather than paper that is used by conventional filters.

5 HUBB OIL FILTER HUBB s unique design and CNC production process enables it to improve oil flow by up to five times, while capturing more contaminants from combustion which keeps the oil cleaner, longer. HUBB Filters: The Oil Filter That Pays You Back Reusable oil filters are nothing new, but in terms of the technology behind them, not all filters are equal. The HUBB filter uses a patented filter-in-a-filter design that improves oil flow, reduces engine friction and keeps oil clean, longer than other reusable or conventional filters. According to the manufacturer, their extensive field trials and laboratory testing supports these claims. Most fleets can see 10-0% in savings in the first year, and up to 50% or more in subsequent years by implementing the HUBB program. HUBB offers a 100,000-mile/5,000-hour performance guarantee on its filters. About HUBB HUBB is a revolutionary, reusable oil filter for most passenger cars and light and medium duty trucks that use a spin-on filter. HUBB provides faster, better and longer engine protection in comparison to conventional oil filters while reducing preventive maintenance costs and helping the environment. HUBB s patented filter-in-a-filter design is made of a surgical stainless steel filter weave, rather than paper that is used by conventional filters. HUBB s unique design and CNC production process enables it to improve oil flow by up to five times, while capturing more contaminants from combustion which keeps the oil cleaner, longer. HUBB is a reusable and cleanable filter so it eliminates the need to dispose of used filters in landfills. Backed by independent third party testing from Automotive Testing and Development Services, Inc. (ATDS), HUBB filters are designed to last the lifetime of a vehicle and are backed by an industry first 100,000-mile or 5,000-hour performance guarantee. HUBB has received multiple product design awards. For more information, visit Resources 1 When Should You Change Oil? November 016. Retrieved on February 4, when-should-you-change-oil.aspx Saving Money & the Environment through Oil Initiatives Retrieved on February 4, saving-money-the-environment-through-oil-initiatives.aspx. 5

Learn how switching to AMSOIL lubricants has saved Guardian Pest Control tens of thousands of dollars. Fewer Oil Changes Reduced Downtime Less Waste

Learn how switching to AMSOIL lubricants has saved Guardian Pest Control tens of thousands of dollars. Fewer Oil Changes Reduced Downtime Less Waste Oil Reduced Maintenance Costs Extended Equipment Life