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Tramp Oil Skimmers
for Single Sumps

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Pump/Skimmers

Filter Chips/Fines from Coolant Filter Chips/Fines from Cutting Oil Other Filtration &
Separation Products

What is the Return on Keller Pump/Skimmers?

Answers:
Payout Time - 0.37 years (or less),
Annual Return on Investment (ROI) - 272%

CALCULATION OF RETURN ON KELLER PUMP/SKIMMERS
BASES OF CALCULATIONS:
10 machine tools, 80 gallons of coolant mixture total
CASE 1: Without effective cleaning equipment; CASE 2: Keller TKO Pump/Skimmer on each sump

COOLANT LIFE:
Without Effective Coolant Cleaning Equipment - 3 months (4 changes per year)
With Keller TKO-10 Pump/Skimmers - 12 months (1 change per year)

OPERATION NO EFFECTIVE CLEANING EQUIPMENT WITH KELLER PUMP/SKIMMERS
Calulation of Annual Cost
Cost ($/year)
Calulation of Annual Cost
Cost
($/year)
COOLANT RELATED COSTS:
Coolant Makeup @ $14 per 800 gal. x 5%=40 gal/change
4 changes/year=160 gal x $14
$2,240
800 gal. x 5%=40 gal/change
1 change/year=40 gal x $14
$560
Spent Coolant Disposal Cost @ $2 per gallon 800 gal. x 4 x $2
$6,400
800 gal. x 1 x $2
$1,600
Labor to Change Coolant
@$20/man-hr variable costs
4 man-hrs/sump x 10 sumps=
40 hrs/change x 4 changes/yr
$3,200
4 man-hrs/sump x 10 sumps=
40 hrs/change x 1 change/yr
$800
Totals, Coolant Related
$11, 840
$2,960
ANNUAL SAVING, COOLANT RELATED COSTS
$8,800
MACHINE TOOL RELATED COSTS:
Tooling Costs Est. annual tooling costs $10,000/machine, est. savings of 10% with clean coolant, or $1000 per machine/year x 10 machines
$10,000
Machine Downtime
for Coolant Change
At 4 hours/machine/change, saving with clean coolant = 3 changes/year, or 12 hours/machine/year x 10 machines
120 machine-hrs
Improved Parts Finish With clean coolant, less work required. Savings are shop-specific
?
Improved Machine Production With clean coolant, less machine downtime for adjustments
to maintain dimensional specifications. Savings are shop-specific.
?
Improved Working Conditions Elimination of oily parts, improved working conditions.
Savings are shop-specific
?
ANNUAL SAVINGS, QUANTIFIABLE MACHINE TOOL RELATED COSTS
$10,000
TOTAL ANNUAL SAVING, QUANTIFIABLE COSTS
$18,880
PAYOUT CALCULATION Cost of coolant cleaning equipment: One Keller TKO-10 per machine,
$695 per machine, or $6950 for 10 machines.
PAYOUT TIME, YEARS
0.37
ROI CALCULATION
Annual Return on Investment (ROI): $18,880/$6950
ROI
272%

To calculate the payout on Keller Pump/Skimmers to remove tramp oil and suspended solids from coolant, we use the case of a cell or shop with 10 machine tools holding 800 gallons of coolant. The cost savings from using effective coolant cleaning equipment fall into two categories:
1) Savings from extending coolant life, and
2) Savings from improving machine tool performance
The bases for the calculations are stated above. A shop can revise our calculations using its own cost data.

Coolant Related Cost Savings
Based on thousands of shop installations, coolant maintained by Keller separators will have a life of at least one year, while coolant with ineffective or no cleaning equipment usually has a life of about 3 months. The savings are the reduced cost of coolant makeup and disposal, and the labor needed to clean and change each sump.
Total calculated savings are $8,880 per year.

Machine Tool Related Cost Savings
All shops state that machines "run better" with clean coolant. While the savings from most of the improvements are shop-specific, we can estimate savings in tooling costs. Numerous shops report savings of 20% to 50% in tooling costs after installation of Keller separators. For the above calculation we used a conservative 10% saving on $10,000 annual tool costs per machine, or $1,000 per machine. The other machine tool related costs are significant but shop-specific.

CONCLUSION: Calculated annual savings $18,880 for an investment of $6950 in Keller separators;
Payout 0.37 years, ROI 272%. The shop-specific savings in machine tool related costs will further reduce the payout time and increase the annual ROI.

Return to Portable Tramp Oil Separators.
Return to Tramp Oil Skimmers for Individual Sumps.
To contact our office, call 800-352-8422 (Outside U.S. 978-264-1911),
FAX 978-264-0221, or e-mail: info@kellerfilters.com