Turning Chips Into Profits
—How Automated Chip Processing Can Add a New Profit Center to Your Shop

Have you considered installing an automated chip processing system as part of your manufacturing process? If not, you may have overlooked a simple method to increase profits and reduce bottom line expenditures. The purpose of this article is to provide you with the information you need to help you consider the viability of chip processing for your own operation.

Advancements in chip processing make it possible for almost any volume of chip generation to benefit the bottom line. But before examining recent advancements, let’s take a look at the fundamentals of chip processing...

Chip Processing – A Definition:

Chip processing is the technology of automatically and continuously processing machining by-products into three distinct constituents–stray parts and bar ends, cutting fluid, and clean, dry and consistently-sized chips. The latter portion of this definition–clean, dry and consistently-sized chips–is critical. Chip processing should not be confused with batch wringing, which removes only some fluids from scrap. Nor should chip processing be confused with compacting, which attempts to squeeze machining waste into pucks. Batch wringing and compacting do not yield the more valued commodity of clean, dry and consistently-sized chips.

Advantages of Chip Processing

Chip processing delivers a multitude of advantages:

Increased value of scrap: A chip processing system removes solids from saturated, multi-sized and shaped chips and larger solids such as bar ends, parts, and tooling. These processed solids bring higher prices on resale.

Chip processing reduces chips to a uniform size, and extracts virtually all fluids from them. The resultant clean, dry, and consistently-sized chips enjoy a more competitive market, as this commodity may be sold to any dealer, not just one with the capabilities to size and dry chips. Aluminum, for example, often secures double the price if the seller used a chip processing system.

Substantial fluid recovery: A well-engineered chip processing system can guarantee recovery of over 98% of oils and coolants. When this reclaimed oil and coolant is recycled, dramatic fluid savings can be realized, and the associated costs for ordering, storing and handling appropriately are reduced. Beyond cost savings, fluid recovery and recycling is also environmentally-friendly.

Reduced labor costs: Heavy, wet chips require substantial labor for transport, handling and housekeeping. These efforts are greatly reduced when chips are dry and manageably-sized. Most menial labor needed from chip creation through processing and loading for transport–is eliminated.

Reduced shipping costs: A typical 40,000 pound load of wet chips contains approximately 8,000 pounds of fluid. If chips are dried prior to shipping, transport costs are incurred only on the revenue-producing product–the clean, dry chips.

Minimized environmental liability: In one case a California manufacturer hauled coolant-saturated chips on the highway, an action interpreted by the state’s Department of Health Services as transport of hazardous waste. The result: 28 violations and nearly a quarter million dollars in fines.

Though difficult to quantify, chip processing minimizes environmental risk, because dry chips may be safely handled and transported without undue concern for collateral environmental damage. Additionally, for companies seeking ISO 14000 compliance, chip processing is an essential factor.

Process System Components

An automated chip processing system is a collection of components, selected and interconnected according to the type and volume of site-specific chips. A typical automated chip processing system is composed of:

Delivery equipment: Various types of conveyors may be configured to transport chips from their point of generation to the system. Conveyor types range from single or twin screw, elevated or horizontal, in-floor push bar or overhead, drag, belt, or tube. The type used is dependent upon the chip volume and configuration as well as plant floor layout.

Chips may also be transported to the system via carts. If this method of conveyance is used, the first component of the chip processing system is typically a cart dumper, used to automatically introduce chips into the system.

Solids removal equipment: These components separate solids from chips, prolonging the life of processing equipment. Solids removal equipment includes vibrating separators, typically used prior to chip processing for initial, gross separation. Pneumatic parts separators are usually found within the system, to remove solids from material flow.

Sizing equipment: Sizing is typically accomplished with a shredder, which shears large stringy bales into manageable chip sizes and rejects nested solids. For high volume, high carbon, tough materials, crushers or hammermills may be needed.

Wringers: Wringer performance is the most essential ingredient of a successful chip processing system. Wringers remove coolants and cutting oils from metallic turnings via high, sustained G forces. They range in size from 15” to 50”, depending upon chip volume.

Discharge and distribution equipment: Chips may be conveyed to their final destination via an assortment of blowers and pneumatic discharge piping for direct loading into barrels, containers, trailers or silos.

Fluid reclamation equipment: Fluids may be reclaimed and, if desired, recycled for reuse. This is accommodated by an application-specific configuration of holding tanks and assorted filtration equipment.

Evaluating Automated Chip Processing

As stated initially, most manufacturing applications can benefit from chip processing and produce a rapid return on investment. Advancements in technology make it possible to justify chip processing for even low volume (100 pounds/hour) applications. The increased use of expensive, specialty metals, even in low volumes, often can justify some level of automated chip processing.

Calculating actual payback time for a chip processing system is, of course, a standard business analysis, involving: volume and price of materials processed, initial investment in processing equipment, etc. But beyond the standard analysis is another critical factor–selecting a qualified vendor to evaluate and answer your application requirements.

Key points to consider when evaluating a system vendor include: length of time in the industry, breadth of product line and system components offered, experience processing a wide variety of chip materials (processes required for brass chips are different from those for aluminum and steel, etc.). Finally, make sure the vendor not only sells, but installs and services the system sold. A “hands on” vendor will better understand your system and is not likely to walk away from process challenges.

Summary

Automated chip processing yields many advantages: enhanced housekeeping, reduced labor, fluid reclamation, decreased environmental liability, decreased shipping costs. Probably the biggest advantage is that chip processing converts scrap into a highly valued commodity that can generate substantial revenue. Use of an automated chip processing system transforms scrap into another plant floor profit center.