maintenance cost reduction

maintenance cost reduction

We've emphasized the importance of data analysis and scheduling to reduce maintenance costs. Skilled maintenance crafts people are very hard to find these days, especially in the Instrumentation and Electrical area. maintenance This strategy has the potential to reduce your maintenance spending by up to 5%. The organization must understand that training of craftspeople is important, that rubber parts, electronics, hydraulics must be stored cool and clean, that planning of work is important etc. It does not fail. In addition to the obvious cost savings, customer benefits include improved overall ROA, measured results, a more reliable facility, managed versus reactionary maintenance and staff reduction opportunities. But, as discussed earlier in this article, the comparison of maintenance cost alone is not just unfair, it is purely poor data if it is used alone without the context of other performance measures. Start by asking, do we really need to do this job? But most plants already scrutinize jobs very carefully because they have had a limited budget for years, so in reality, this only applies if a plant has been careless with maintenance cost in the past. Revenue cost = profit, where did revenue go? This leads to an incorrect maintenance cost map that does not identify significant cost drivers, and generates faulty decision making. The event becomes a controlled, low cost maintenance event involving minimal parts, time and expense. Let's review some costs associated with achieving this kind of reliability. Heres some real-world examples of the hidden maintenance cost: Bricks were falling out of a lime kiln in a chemical plant in Canada. Reduce in relation to what? True cost reduction does not come as a result of using cheaper parts, as an example below will show. For this,each task needs to have a specific goal and the staff needs to have an optimised work routine. The findings are described in an article in Nature Energy, with further details on the Berkeley Lab website. Not sure what the failure modes are? How to Reduce Maintenance Costs the Right Way | Reliable Plant Bearings are lubricated with the right amount, clean and the correct type of oil! How to improve overall reliability is a very large topic, but there are some basics that always have to be executed. Training needs to include basic fundamentals of rotating equipment operation, troubleshooting principles and a complete understanding of equipment components and how they work. If you work in a plant, mine or mill, you are most likely under pressure to increase the equipment reliability and reduce the maintenance cost at the same time. This article will define a business case for achieving significant rotating equipment maintenance and energy cost reduction at industrial and municipal facilities.. This will be reduced dramatically by predictive maintenance. Their case studies reveal cost reductions of up to 46 percent for solar plant inspections as well as person-hour reductions of up to 75 percent for wind turbine inspections. Tomorrow permanently installed technology will monitor motors. Failure prevention technology exists whether equipment operates at variable or fixed speeds. Second, when components fail in a pump due to fatigue, catastrophic failure can occur if the plant is not aware of the trending toward failure. Age and type of equipment are different as well as the production flow. Increase Asset Performance and Reduce Maintenance Costs Did you know that 30% of preventive maintenance Opportunities for optimizing inventory due to standardization and the use of spare power end assemblies or back pull out assemblies can further reduce the investment in inventory and inventory carrying costs. Read more about Maintenance Cost Compared to Estimated Replacement Value. Customer reliability efforts are often thwarted when they are not properly funded or supported by senior management. Another way to avoid over-maintenance is to ensure that each task corresponds to a specific failure mode. Often, it is very damaging to the company to cut the cost too fast. This ensures you dont spend money on parts and tools you wont need or that are still in stock. If the motor is replaced before the breakdown it may cost 1. Pumps can be centrifugal or positive displacement. It can be hard to show the value of something that didnt happen. That analysis is often absolutely correct, but again, changing the behavior in a plant around work screening and prioritization is not done over a coffee break or in a couple of weeks, it would take time to do. These systems integrate many of the critical control equipment in process systems, so they "work together" to provide a specific process result. U. S. industrial companies compete globally for market share and profitability. Follow all regulations including over and above safety and environment, Culture (perhaps just an outcome of all above, but still), Cut the number of maintenance employees or. There is great news about the maintenance cost! Waiting for tools, for authorisations, going back and forth Anyway, the list goes on. At the end of the day, all maintenance activities should lead to: These three things are the end goal for all reliability activities. Maintenance improvements means dealing with people. Cost and efforts of software maintenance The first is to focus on the maintenance budget and reduce spend. Common examples of this include air filters, oil filters for hydraulic units, and refiner plates and chipper knives. The chain of Inspecting, Planning, Scheduling and finally Executing Work. But the maintenance cost has to be put in perspective with all factors described above. Well, from what weve seen there is typically little to no data, information, or basis for the decision that maintenance cost is too high. If the plant is well maintained, there is less maintenance to do in the future. We summarized the key components by explaining the concept of the chain. Some companies are beginning to use newer, emerging failure prevention technologies or are employing predictive maintenance practices. The mid-term effect is a reduced plant availability as the An improvement will take time to show, so will poor maintenance. Do you have equipment that breaks down frequently? There is an important unavoidable fact that the stock market doesnt understand and probably doesnt care about. Each pump is addressed quarterly and each motor is addressed semi-annually. The service provider should be able to provide these services, or the customer should have these services in house. 2) Define current maintenance costs. Only 100 use VFDs and the remaining 400 pumps are fixed speed. First, the magnitude of the repair cost is much greater when equipment is allowed to catastrophically fail. They are not always easy to predict, since breakdowns in most cases cannot be anticipated. The graph below illustrates the mechanics of this choice. With planned timing, maintenance, machine optimization, and servicing type of activities are done. Engineering services. Instead, the customer will focus more on standardization, simplification, inventory reduction and, of course, cost reduction. Consider what is more important to the customer, whether significant cost reduction is co-managed with the help of a competent service provider or whether the plant uses Brand X or Brand Y equipment. Foreword Download the PDF of the report, which includes the proprietary FM Cost Index Business and financial leaders are keenly aware of global inflationary pressures and need to understand how these factors will impact facilities management costs in Partner with a competent, proven and local repair facility. Using earlier terminology, it can be said that the maintenance debt is reduced. Try to cut maintenance costs within a few weeks or months by focusing on the maintenance The reduction of work executed will become the consequence of the peoples layoffs even if that isnt the intention. Giessing is also a founding member of Certified Equipment Services (www.certifiedequipmentservices.com), a company dedicated to industrial process improvement, service excellence and cost reduction solutions, with members nationwide. Finally, you should bear in mind that ordering parts in bulk allows you can negotiate better prices. Make a repair jobs be safer and completed more efficient, Make a repair job be completed with higher quality, Cut the cost short-term by reducing people and/or delay maintenance work, Inspect (also prioritize the work carefully, then). Quality of the product. Maintenance Expenses: The costs incurred to keep an item in good condition and/or good working order. Best practices. An example of dedication to precision can be illustrated by a plant that had an alignment standard of 2 thousandths of an inch for 1800 rpm shafts. Furthermore, improving maintenance efficiency has a positive impact on reliabilityso companies can cut costs without risking performance. Instead of constantly fixing the problem, conduct a root cause analysis to understand the true source of the problem. Concrete Repair Cost What happens? However, most of these companies only use these technologies sporadically and miss the opportunity for better results. Condition monitoring and fixed time replacements are typically the work that is removed. A valid maintenance repair job can never be avoided. For example, classifying a cost as capital investment costs versus expense changes if a company is making a profit or a loss any given year. Lets look at the maintenance cost from one more angle. Without a doubt, you should. By investing in predictive maintenance, the customer can now predict pump failures and remove the pump from service before it catastrophically fails, which minimizes repair costs and eliminates environmental cleanup and lost production costs. On average, the team got a rent reduction of 172 euros per helped tenant last year. But as equipment becomes more reliable, the cost will come down as a consequence of the reliability improvement. These are just a few examples, but I hope the point is made. Sure enough, you will have fewer periods of downtime and you will avoid expensive and time-consuming repairs. If this customer makes no changes over the next 5 years, he will spend almost $5 million repairing and maintaining his pumps and seals. Cost can be cut today, and results can be shown in the next monthly report to the market. This is a large topic by itself. Reduced safety, health, environment Another key to keeping maintenance costs down is training your entire team and not just the technicians. This means that reactive maintenance is not only haemorrhaging money and resources but also time. The revenue side of the equation is reduced AND the maintenance cost is going up. Common sense. Imagine (or worse, try) analysing all your maintenance operations one by one with a pen and pad of paper? This is a maintenance job that cant be avoided. This is the main reason that basic reliability has to be UNDERSTOOD by the organization as a whole. An analytical person may think that the operations maintenance team may prioritize jobs incorrectly and that there is a cost saving to be made by better analysis of the necessity of each job. The tube has a powerful burner in one end and is rotating and mounted in a small angle for the lime to travel through. Often, the maintenance costs of a company are so high that they can severely curb the profit margins and prevent the company from blossoming. There has to be an understanding for the future costs of maintenance actions and/or doing nothing. 8 IT Maintenance Cost Reduction Strategies August 27, 2020 Len Riley Reading Time: 4 minutes Each budget cycle, CIOs are expected to reduce operating Predictive maintenance involves the ability to detect changes in equipment component condition, so maintenance personnel can plan a controlled maintenance event to correct/replace the failing part(s) without catastrophic failure, unscheduled downtime or environmental impact issues. As reliability improves, MTBM and the ability to reduce inventory levels improves. Average cost of a pump repair is $2,500, not including lost production and environmental cleanup costs. Vendor relationships are important, and the service provider must be committed to the facility and trusted by the plant personnel. It is easy to get distracted with tools. Based on our observations of digital maintenance and reliability transformations in heavy industries, we see the potential for companies to increase asset availability by 5 to 15 percent, and reduce maintenance costs by 18 to 25 percent. Railroad crossings have automated gates, but they cost electricity to run, should we take them out since there are few accidents at these crossings? If Preventive Maintenance activities are allocated to the preferred frequency intervals above in a Why? What does it cost to reschedule, re-arrange all work to the new date? Outsource repair/rebuild activities. Building Models Different Approaches to accomplishing your needs There are multiple ways to accomplish building data models in SAC. True cost reduction comes as a result of not needing to purchase the parts in the first place. People dont change behavior because someone decided to cut the number of employees. A multi-awarded intelligent maintenance management platform, Infraspeak 2015-2023 - Brought to you by Facilities Management Geeks. There may be a slight increase in cost early in the improvement effort to reduce maintenance cost. The management team needs to ensure that the inventory is available. This example will only cover pump and mechanical seal reliability, but customer total cost reduction is even greater when expanded to other rotating equipment. Generally, software maintenance costs around $5000 per month or $60000 per year. Not all breakdowns follow a clear pattern over time. Strategies and Tools for Reducing Facilities Maintenance Costs | NEST Managing facilities maintenance (FM) performance and cost across a multisite business is a complex challenge. Maintenance prevention such as cleaning, lubrication, alignment, balancing, correct installation, etc. Equipment projects should not be in a maintenance budget, so that is seldom an option. Even if your phone freezes from time to time and your computer may require a quick fix via the failsafe On-Off method, technology is an asset to your business and should be used. Therefore, this customer spends almost $1 million annually to replace/repair failed pumps and seals. However, it is possible to improve control over your maintenance budget with a systematic approach. I would like to elaborate, As an option to reduce plant costs, you may be wondering whether you should contract your maintenance work. For example, condition monitoring using vibration analysis (VA) is useless unless the problems found are planned, then scheduled, then the bearing is changed. The Best Path To Maintenance Cost Reduction - Becht Regardless of how or who originated the maintenance cost cutting effort, the initiative will land in the lap of the plants maintenance manager. Over 700 complaints about bad landlords in Utrecht | NL Times Skip Giessing is a 1973 graduate from the United States Naval Academy and a former licensed Nuclear Engineer. The customer saves $808,000 each year starting with year 6. Customer started with $750,000 in pump and seal inventory. WebAccording to the McKinsey management consulting firm, predictive maintenance can generate substantial savings by increasing production line availability by 5 to 15% and reducing maintenance costs by 18 to 25%. In Formula 1, it can be done even faster. A good pitch or slap shot is tad over 100 mph. Copyright Cahaba Media Group, Inc. All Rights Reserved. If reducing maintenance cost would be the key goal for a maintenance department, it is a very easy goal to achieve. The average cost for fixed speed failure prevention technology (Emotron M-20 or ITT PS-20)per pump is $725. Unsurprisingly, the best way to reduce maintenance costs is to prevent malfunctions. The hidden maintenance costs are typically incurred because of the lack of clear maintenance processes and standards. In this The initial maintenance cost increase has several components, but the main cost is the cost of improving the equipment condition. maintenance Either you have too many people, and/or there is maintenance work that doesnt need to be performed. Condition monitoring (inspections) were not done, so the planner has no forewarning of breakdowns and now has to wait for breakdowns. Manage quote requests and agree on proposals for work orders and purchase of stock. Parts and service business is a necessary revenue source. The first is to focus on the maintenance budget and reduce spend. Understanding and implementing the correct work processes for good reliability and maintenance will generate improved reliability and lower total costs/ unit produced and maintenance cost/ unit produced. Many are obsessed with measuring the speed of a pitch or slap shot, but is it relevant? But jobs cant be planned that fast, so craftspeople will be handed emergency work. Hereswhat you can learn from breakdowns. This strategy is probably the most powerful, but also takes the longest time to hit the financial bottom line. For sure, the job will never become cheaper to do by delaying it, at least it is hard to think of any instances where it would. Running damaged equipment until it fails is not a good idea for two main reasons. These are two essential services in any reliability program. To enforce this standard, they had a sign-off form for accepting a sub-standard alignment. Advantages of predictive maintenance are: Making any cost reduction and reliability program a complete success means integrating additional consultative services into the program, which might require partnering with a competent service provider. When addressing the average maintenance cost of $2,500 per pump, understand that catastrophic failures are typically going to cost a plant much more than this average cost. Failure prevention technology reliably detects problems within a pre-set time frame. And, invariably, you will be asked if you can reduce All this raises repair costs. WebCost Reduction with Future Maintenance In addition to restoring and improving concrete properties and providing an added layer of protection to the embedded reinforcement, future maintenance costs associated with design operations are also reduced. Scheduling cant be executed unless there is a close partnership with operations in order to coordinate production schedules with maintenance schedules. According toReliable Plant, unplanned work takes 3 to 9 times longer. A well tightened bolt will never, ever come loose, while a poorly tightened bolt may come loose after a couple of years. Some may say that the idea above is silly, no mine, plant or mill would do that. If an asset requires numerous repairs, consider whether its worth continuing to repair it. Below are some examples. O evento de referncia para profissionais de FM e Manuteno.. We're the source of intelligent maintenance and FM trends, tips and tricks for 13,000+ professionals. Dr. JAYASEELAN has about 30 years of experience in various industries. The stock market demands instant results as well, no one wants to wait for a stock to be profitable in 2-5 years. Often, investing a little more time will pay off in the long run. Of course not, but why wouldnt they? Unsurprisingly, the best way to reduce maintenance costs is to prevent malfunctions.

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