Maintenance Mindset: The business case for ICML 55.1 — Better lubrication, fewer breakdowns, higher profits
Welcome to Maintenance Mindset, our editors’ takes on things going on in the worlds of manufacturing and asset management that deserve some extra attention. This will appear regularly in the Member’s Only section of the site. This week's column features guest contributor Michael D. Holloway, President of 5th Order Industry, writing part 2 of a 4-part series on the positive impact of implementing the ICML 55.1 standard. (Click the link to read Part 1 or Part 2.)
ICML 55.1 is an international standard detailing best practices for lubricated asset management that is aligned with ISO 55001 asset management principles. By addressing 12 key elements (from workforce skills and lubricant selection to contamination control and program metrics), ICML 55.1 provides a comprehensive framework to improve machinery lubrication management and, in turn, asset reliability.
Implementing this standard can significantly boost equipment uptime and lifespan and program sustainability, but organizations must navigate certain challenges to realize its full benefits. This four-part blog series analyzes the standard’s impact on reliability in the following areas: implementation challenges, real-world case studies, cost-benefit considerations, and best practices for effective integration of ICML 55.1’s principles into daily operations.
Part 3 – Cost-benefit considerations
ICML 55.1 is an international standard detailing best practices for lubricated asset management that is aligned with ISO 55001 asset management principles. Implementing ICML 55.1 requires investment, but the balance of costs and benefits often heavily favors the latter once the program is in place. Companies evaluating the standard should consider both the initial expenses and the long-term returns in reliability and efficiency.
Initial capital investment in lubrication program infrastructure and workforce training
The initial phase may involve costs such as training personnel, purchasing or upgrading lubrication equipment, and possibly hiring experts to assist with program development. There might also be expenses for establishing new oil storage facilities (e.g., climate-controlled lube rooms, fire-safe cabinets for oils/greases as seen at Blue Buffalo’s Heartland Facility), buying tools like desiccant breathers, filtration systems, condition monitoring devices, and acquiring the ICML 55 standards.
While these costs can be significant, they are usually a small fraction of what unreliable assets cost a business. Maintenance budgets typically allocate only 1-3% to lubrication, yet lubrication-related issues have an outsized impact on downtime and repair expenses. In other words, a modest increase in spending on excellent lubrication can prevent failures that would cost far more to fix. For example, retrofitting the pumps at Eli Lilly’s IE43 facility with proper sampling hardware and breathers had an upfront cost, but it enabled the plant to avoid replacing hundreds of liters of oil and multiple unplanned shutdowns each year, a trade-off that quickly justifies itself.
Reducing unplanned downtime and maintenance costs through proactive lubrication management
The primary financial benefit of ICML 55.1 comes from avoiding failures and extending the life of components.
Numerous studies show that poor lubrication is a leading cause of equipment failure – for instance, manufacturers report it contributes to ~43% of mechanical failures and over half of all bearing failures. By systematically addressing lubrication (correct lubricant selection, proper intervals, contamination avoidance, etc.), companies can eliminate a major root cause of breakdowns. The result is fewer emergency repairs, lower spare parts consumption, and reduced maintenance labor. Weyerhaeuser’s program, for instance, cut out chronic hydraulic failures, saving nearly $50K annually in parts and labor.
Beyond direct maintenance savings, the avoidance of unplanned downtime leads to huge productivity gains – production lines can keep running without interruption. Blue Buffalo’s lubrication excellence, yielding virtually no lubrication-related downtime, means the facility can maximize output and meet orders without costly stops. Similarly, by switching to condition-based oil changes, Eli Lilly’s team not only saved on oil costs but also prevented unnecessary downtime that would have been needed for routine oil drain/refill tasks. In many industries, a single hour of downtime on a critical asset can cost tens of thousands of dollars in lost production, so every failure prevented translates to significant monetary value.
Maximizing equipment lifespan and energy efficiency with precision lubrication practices
A well-lubricated machine runs cooler, smoother, and with less wear. Over the long term, this extends the mean time between failures (MTBF) and delays capital expenditures for replacements. Proper lubrication can also improve energy efficiency (reducing friction losses), which lowers operating costs. While harder to quantify in the short term, these factors contribute to the return on investment (ROI).
For instance, by maintaining cleaner oil, Weyerhaeuser improved their hydraulic systems’ efficiency and longevity, likely deferring expensive overhauls. Another example is the elimination of frequent oil changes at Eli Lilly, which not only saved oil costs but also meant machines spent more time in optimal lubricated condition, reducing wear rates. Some studies even tie lubrication to energy consumption (e.g., well-lubricated bearings draw less power), providing utility cost savings and supporting sustainability goals (a point addressed by ICML 55.1’s focus on energy conservation and environmental impact).
Calculating ROI and payback timeline for ICML 55.1 lubrication program adoption
Companies often see a fast payback from reliability improvements. According to industry experts, a quality lubrication program provides a substantial financial opportunity, often yielding “remarkable ROI…eclipsing 1,000%” (10x return) and sometimes recouping investments within six months. While results vary, this underscores that lubrication initiatives can dramatically reduce costs.
Real-world cases back this up: after implementing its oil analysis program, Eli Lilly’s site reduced sampling costs nearly by half in the first year and projected further savings in year two, meaning the project likely paid for itself very quickly. Weyerhaeuser’s $50K yearly savings similarly implies that the cost of training and new filters was recovered in short order. In essence, preventative lubrication care is far cheaper than reactive repairs – every bearing or gearbox saved from failure avoids not just part replacement cost but also secondary damage and downtime. Moreover, achieving ICML 55.1 compliance can have intangible benefits like improved safety (fewer catastrophic failures or oil spills) and environmental gains (less waste oil disposal), which reduce risk and potential regulatory costs.
Building a data-driven business case for ICML 55.1 and justify the cost
To build a business case for ICML 55.1 compliance, reliability teams should gather baseline data on lubrication-related downtime, maintenance expenses, and safety incidents. Quantifying the current cost of poor lubrication (failed components, labor hours on reactive fixes, lost production, etc.) creates a contrast for the expected improvements.
Many organizations perform an initial lubrication audit to identify “low-hanging fruit” savings. For example, if analysis shows that a significant percentage of breakdowns are lube-related, one can project the savings from preventing those. It’s also persuasive to reference industry benchmarks and success stories: e.g., “Company X saved $40,000 by switching to condition-based oil changes” or “Plant Y cut lube maintenance costs nearly in half by implementing a lubrication management system.” These examples, backed by the authoritative ICML 55 framework, help convince stakeholders that the program is not theoretical – it delivers real value. Additionally, compliance with ICML 55.1 can be pitched as a step toward broader asset management excellence (since it aligns with ISO 55001) and even as a marketplace differentiator. ICML representatives have noted that certified lubrication excellence gives companies a “demonstrable advantage in the marketplace” – meaning fewer disruptions and a reputation for reliability that can win business. When all these factors are considered, the long-term ROI of implementing ICML 55.1 is typically very high, often covering initial costs many times over through sustained reductions in downtime and maintenance overhead.
While organizations must invest time and money to adopt ICML 55.1, the payoff comes in the form of significant maintenance cost savings, improved operational efficiency, extended equipment life, and risk reduction. The cost-benefit balance strongly favors implementation, and many companies should find the program “pays for itself” quickly by shifting maintenance from a cost center into a source of profit through reliability gains.