Worry-free lubrication for machines
At present, industry and logistics use approximately 40 million tonnes of lubricants annually in Finland. Oil changes are usually carried out according to a regular maintenance programme, based on statistical average, by experience or because of an unanticipated failure. An oil change per se is not always a solution, and devices around the world do fail on a regular basis. Between 50 and 80% of mechanical failures can be attributed to lubrication problems of some sorts. Globally, this means a cost in excess of €500 billion in the form of new oil, oil changes, downtime and device failures. In addition, the reuse rate of lubricant oil globally is at only 10%.
Solution: oil as a service
Fluid Intelligence helps the energy industry and companies in the heavy industry and logistics businesses to maximise the efficient use of lubricant oil through smart monitoring and maintenance. The customer’s oil-circulation system is connected to the company’s cloud service, which monitors changes in oil performance. Because the performance of oil is monitored, potential problems can be addressed immediately, keeping small problems from escalating into large-scale mechanical failures. This, in turn, extends the useful life of the machines, increases their operational reliability and prolongs the useful life of the oil.
Revenue model and benefits to Fluid Intelligence
Fluid Intelligence’s turnover is comprised of monitoring and maintenance income through monthly charges and specific specialist services. Real-time oil-performance monitoring is continuous, using cloud-based software to provide a service with a monthly charge that is supplemented by particular analysis and specialist services. Offering lubrication as a service enables the company to build long-term customer relationships and provides a regular, predictable revenue stream.
Benefits to customers and end users
The customers primarily include production plants in the energy, processing, chemical and paper industries and in logistics. With the solution, the customer is able to eliminate operating anomalies related to lubrication and hydraulic oil, and to reduce unanticipated problems and the related expenses. The customer’s oil consumption is reduced by 40 to 80%, depending on the site. The customer’s total cost savings are between 10 and 50%, again depending on the site. The oil-monitoring system can be installed in new plants or retrofitted into existing plants. In addition to cost savings, the service improves the plant’s operational reliability. With the help of the service, several equipment failures and sudden production stoppages have been prevented, and thousands of euros saved and oil changes avoided.
Fluid Intelligence in a nutshell
Main business: industrial maintenance
Net sales: Less than €1 million
Launch of circular economy solution: 2016
Share of the circular economy solution of the total business: At present 30-50%, target close to 100%
Based: Vaajakoski, Jyväskylä