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Services.
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Reproduced below in an interesting item on
the real cost of an oil change. |
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“
An article published in lubrication word about the true cost of an
oil change in Practical Oil Analysis and was amazed at how much money
directly and indirectly goes into what seems to be a simple procedure.
Oil changes include four costs:- |
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the
cost of new oil |
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cost
of removing old oil - (without evaluating its rejection limits) |
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labour
costs incurred in changing the oil |
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Administrative
cost towards precurement of Lubricants. |
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Assisting
management in vendor evaluation as technical basis . |
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cost of machine down time |
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These
are obvious direct costs that should be included in all cost analysis
for an oil change. The several hidden costs that must be considered
while analyzing the cost of an oil change are The total time it takes
to change the oil and the total time the machine is not in operation.
All the paper work and pursuits involved plus tracking, verifying
and inspection costs. Cost of labour should include the human resources
needed to support the labour. This has been estimated at 1.5 times
the hourly rate for the total number of hours needed to change the
oil. |
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Indirect
activities such as wait time, travel time and tool and material collection,
which can all cost 2 - 8 times the normal “ wrench” time. Supervisory
tasks (work order, and monitoring) add another 20% to labour costs.
Cost of rags, gloves, filters, sampling material New oil overheads,
inventory and storage areas. Purchasing department activities for
purchase oil.bids, credits, checks, payments etc. |
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At
the end of major oil change, with all there often overlooked overhead
costs, a 5-gallon oil change (at $ 5 per gallon) with two hours of
labour and a purchase order to receive the new oil would cost $ 988.70.
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