Bearings Contractor Reduces Oil Refinery Operational Cost

Bearings Contractor Reduces Oil Refinery Operational Cost Bearing supplier Bearings International is nearing the end of its second, three-year contract as the exclusive supplier of bearings, to oil producer Sasol¡¯s Secunda and Sasolburg refineries. Part of the contract included saving Sasol in excess of 20% on operational costs, over a three-year period, states Bearings International CE Tony Patten. A clause was written into the contract which stated, if the supplier saved Sasol more than 20% in operational costs, half of the additional savings would be paid out to the supplier. Bearings International exceeded its set target, and, in return, received a seven-figure cheque, states Patten. As a result of this, Bearings International¡¯s contract was renewed for a second term, after the first three-year contract had expired. ¡°The way Sasol looked to achieve its savings and expenditure on items such as bearings was not to look at the price of the individual bearing but how the company could improve its mean time between failures, get its equipment to last longer, and, most importantly, to operate without any unscheduled stoppages.¡± Patten adds that, although Bearings Inter-national will again take part in the tendering process, which will be carried out in September, the chances of achieving another 20% savings on current operational costs are limited, since operational costs have already been reduced substantially. Sasol put a reliability team together, which met on a monthly basis to discuss each failure in the refinery: the cause, remedial action, corrective action, and accountability. Patten states that, by doing this, a certain level of thinking was entrenched into the company, which has caused significant improvement of plant operation times. Bearings International¡¯s contract with the Sasol refineries entailed a complete inspection of all bearings in which every bearing failure was inspected and the root cause identified. Patten says, in doing so, Bearings International identified three problem areas, including workmanship, tolerances on the bearing houses and shafts, and the use of incorrect bearings. ¡°The tolerance levels on the bearing houses and shafts were relatively simple to repair, as was the replacement of the incorrect bearings. To improve the workmanship, we set out on an intensive training programme of Sasol¡¯s staff, and the results have been outstanding,¡± Patten states. He adds that the training allowed the various section heads within Sasol to hold workers accountable when something went wrong, since ignorance was no longer an excuse. ¡°The most important element of the training, says Patten, was how fitters handled and fitted the bearings. It is very important that the bearing is seated correctly in the housing and has an even face-loading.¡± Although the project proved to be lucrative, Patten says it was not without its challenges. ¡°Our people had to go through Sasol¡¯s safety training before they were allowed to carry out work on-site, and we were subjected to very stringent controls.¡± He adds that another challenge was the negative sentiment from the refinery fitters. ¡°We had some difficulty getting people to believe that we could help them improve their operations, but, over time, we were seen not as a threat, but as an asset.¡± Patten says previous methods of dealing with pump failure included the replacement of mechanical seals, without replacing any other component which might have been damaged. ¡°No one was keeping track of how often each pump failed, or how long it ran between failures, or why it failed. ¡°With our intervention, we were able to expand the mean time between failures, or the life of the pump between overhauls, to about 400%. ¡°Bearings are an under-rated commodity. Every- thing that turns is supported by a bearing, and it is often regarded as just a bearing, when it is, in fact, a high precision piece of artwork.¡± Patten states that for many years the emphasis has been to drive bearing prices down, but, he states, this is not where the true savings lie. ¡°The true benefit comes from getting the right product, achieving the design life of that pro- duct, and, most importantly, not having any unexpected stoppages in your operation.¡± Bearings International director of bearings and allied products Ian Robertson agrees. ¡°A lot of people tend to buy cheap, and buy often. Now, however, the individual is realising that it¡¯s not just the price they pay for the product, but the quality.¡± He adds that companies are also looking for value- added services to accompany the product.