Spending Money to Save Money – How Investing in Technologies Can Reduce Maintenance Costs
Spending Money to Save Money – How Investing in Technologies Can Reduce Maintenance Costs
Bryan Christiansen, Founder and CEO at Limble CMMS
Posted 3/12/2024
As economic uncertainty carries on into another new year, businesses around the world are carefully reviewing budgets and seeking effective ways to minimize expenses for the months ahead. One significant area that business leaders may consider is facilities maintenance. After all, it is a very large and multi-faceted expense, involving repair costs, part replacements, staffing, and more.
The high cost of maintaining physical assets can strain any business, inflating operational costs and narrowing profit margins. However, you can’t have a successful business without proper working equipment. The only solution is to manage maintenance activities and expenses as efficiently as possible.
Understanding the Scope of Maintenance Costs
Maintenance costs encompass all expenses associated with keeping equipment and facilities in optimal working condition. This includes costs associated with downtime that impact production volume, labor costs across the maintenance team, spare parts inventory spend, and regulatory compliance costs from time spent on audit prep to fines for failure to meet requirements.
Traditional maintenance methods rely on manual processes and reactive strategies, which often lead to inflated costs due to unplanned downtime and inefficient use of resources. In industrial industries such as manufacturing, energy, and construction, where equipment reliability and overall profitability go hand in hand, the impact of maintenance costs on overall operational expenses is even greater. A comprehensive understanding of these costs – both direct and indirect – is vital for businesses aiming to streamline their maintenance strategies and increase ROI.
Failing to manage maintenance efficiently doesn’t simply mean spending more time on the same tasks or watching labor costs soar. It also results in higher parts inventory spend, reduced asset lifespans, lost production hours, and even safety or regulatory issues. In certain industries, the costs of hands-off maintenance could include fines and legal fees.
Leveraging Technology to Improve Maintenance
Maintenance technology has brought significant changes to the way maintenance teams conduct their work and raised the bar for the impact they can make on businesses. Technology solutions such as Computerized Maintenance Management Systems (CMMS) and IoT sensors are revolutionizing maintenance strategies across industries.
CMMS platforms streamline maintenance operations by automating Work Orders and PMs, optimizing inventory management, and providing critical data analytics. These systems include features like intuitive mobile apps to manage work in the field in real time and automated scheduling to implement an efficient PM program. IoT technology, like performance-monitoring sensors, enables real-time equipment data collection to prevent breakdowns before they occur. Together, these technologies not only reduce the immediate costs associated with maintenance, but also minimize indirect expenses by improving asset reliability, reducing downtime, and optimizing resource allocation.
Investing in Technology to Reduce Maintenance Costs
It’s clear that advancements are continuously altering the maintenance landscape, offering various methods for managing teams, scheduling tasks, and reducing costs. A few of the potential cost-saving benefits of maintenance technology include:
Real-time monitoring & data collection: Enhances maintenance efficiency by providing vital asset information, reducing manual checks and unplanned downtime, and enabling closer attention to failure metrics like MTBF and MTTR.
Automated maintenance scheduling and workflows: Reduces time spent on administrative tasks, increasing wrench time and boosting overall productivity.
Mobile access for team members: Enables technicians to view Work Order procedures, parts, and tools on the go and make real-time updates as they complete work.
Improved asset performance and lifespan: Proactive maintenance and data-backed failure predictions help keep assets running in optimal condition – preventing breakdowns before they occur and extending overall asset lifetimes.
Improved employee performance: Maintenance tools keep maintenance tasks organized and surface employee performance insights for improved efficiency and reduced rework.
Improved safety: Technology can incorporate standard operating procedures into each, ensuring work is completed safely and compliantly.
Many business owners consider the maintenance department to be more of a cost center than a value driver. It isimportant to think of maintenance as an investment – maximizing equipment performance and, ultimately, overall revenue. Enabling the maintenance team with the resources they need to perform proactive maintenance and boost productivity can have a significant impact on the company’s bottom line.
Maintenance technologies are here to stay, and they are only getting better. For organizations looking to reduce budgets in the new year, investing in new technologies is a great place to start. Sometimes, you have to spend money to save money!
Bryan Christiansen
Bryan Christiansen is a self-taught, full-stack developer turned marketer turned entrepreneur. Bryan is the founder and CEO of Limble CMMS, the leader in CMMS software which empowers the unsung heroes that support the world. Limble has grown to having thousands of users in just a few short years.
The cost of maintaining the status quo is enormous. The status quo affects each and every one of us every hour of every day, at work and at home. We have come to accept doing nothing as a safe and acceptable alternative. We even make it the default solution. Doing nothing is the management equivalent of a baby’s soother. It makes us feel safe and comfortable. But there is a cost to doing nothing.
The cost of maintaining the status quo is enormous. The status quo affects each and every one of us every hour of every day, at work and at home. We have come to accept doing nothing as a safe and acceptable alternative. We even make it the default solution. Doing nothing is the management equivalent of a baby’s soother. It makes us feel safe and comfortable. But there is a cost to doing nothing.
Results-oriented organizations focus first on the quality and volume of production throughput, followed closely by the cost to produce the required quality and volume. This approach will improve reliability performance, which will drive manufacturing costs down.
Results-oriented organizations focus first on the quality and volume of production throughput, followed closely by the cost to produce the required quality and volume. This approach will improve reliability performance, which will drive manufacturing costs down.
Regardless of the nature of the manufacturing process you maintain, the subject of your maintenance budget has doubtless come up in recent days—probably over and over. That's because most organizations still view the maintenance department as a cost center, and when it's difficult to locate the bottom line, senior managers have a tendency to look behind the maintenance budget to find it.
Regardless of the nature of the manufacturing process you maintain, the subject of your maintenance budget has doubtless come up in recent days—probably over and over. That's because most organizations still view the maintenance department as a cost center, and when it's difficult to locate the bottom line, senior managers have a tendency to look behind the maintenance budget to find it.
Many smaller companies feel maintenance management software is overkill for their organizations. Nothing could be further from the truth. In reality, even a one-person maintenance department can reap the benefits of maintenance management software. The same benefits realized by the maintenance crew in larger companies are there for smaller maintenance departments also.
Many smaller companies feel maintenance management software is overkill for their organizations. Nothing could be further from the truth. In reality, even a one-person maintenance department can reap the benefits of maintenance management software. The same benefits realized by the maintenance crew in larger companies are there for smaller maintenance departments also.
Information technologies (IT), in the context of this paper, include all computer systems and networks, plant automation systems such as distributed control systems and programmable logic controllers, design drawing databases, procedures databases, and diagnostic monitoring systems. The role of information technology is critical for maintenance optimization because it relies on the ability of the plant personnel to bring all data together in a coherent fashion for optimum analysis and decision-making.
Information technologies (IT), in the context of this paper, include all computer systems and networks, plant automation systems such as distributed control systems and programmable logic controllers, design drawing databases, procedures databases, and diagnostic monitoring systems. The role of information technology is critical for maintenance optimization because it relies on the ability of the plant personnel to bring all data together in a coherent fashion for optimum analysis and decision-making.
We now have the ability to automate many of our standard maintenance processes, analyse in detail various parts of our businesses, and the performance of our equipment. We are able to plan shutdowns, technical change projects and operational maintenance procedures down to a very fine level of detail. As maintenance management generally makes up around 40 - 50 % of operational budgets, the savings made possible from increased efficiency and reduction of waste are staggering.
We now have the ability to automate many of our standard maintenance processes, analyse in detail various parts of our businesses, and the performance of our equipment. We are able to plan shutdowns, technical change projects and operational maintenance procedures down to a very fine level of detail. As maintenance management generally makes up around 40 - 50 % of operational budgets, the savings made possible from increased efficiency and reduction of waste are staggering.
Facility management personnel in all industries have waited a long time for computer technology to become applicable and affordable enough to implement in their respective maintenance efforts. In recent years, flexible, dependable and economical computerized maintenance management systems (CMMS) have become available to help fight the never-ending struggle to operate and maintain buildings of all shapes, sizes and functions.
Facility management personnel in all industries have waited a long time for computer technology to become applicable and affordable enough to implement in their respective maintenance efforts. In recent years, flexible, dependable and economical computerized maintenance management systems (CMMS) have become available to help fight the never-ending struggle to operate and maintain buildings of all shapes, sizes and functions.
Training for users of a computerized maintenance management system (CMMS) is a multiple-phase process. There are three areas of training needs: basic training, application (CMMS) training, and internal training.
Training for users of a computerized maintenance management system (CMMS) is a multiple-phase process. There are three areas of training needs: basic training, application (CMMS) training, and internal training.
The effectiveness of maintenance can make the difference between success and insolvency, between limping by financially and organizational excellence. Many companies and organizations consider their computerized maintenance management system (CMMS) and processes as catalysts for achieving a competitive advantage. Yet, good intentions are only part of the recipe for success.
The effectiveness of maintenance can make the difference between success and insolvency, between limping by financially and organizational excellence. Many companies and organizations consider their computerized maintenance management system (CMMS) and processes as catalysts for achieving a competitive advantage. Yet, good intentions are only part of the recipe for success.
The degree to which RCM analysis can contribute to profitability is directly variable with the quality and accuracy of the CMMS data on which the analysis is based. Because the technique is rigorous, its over-use will defeat the purpose and lead to cost overruns instead of savings. The way to optimize the RCM return is to apply the analysis strictly to the equipment and systems that will pay off from it, and to know this we must rely on the CMMS. This paper provides guidance for ensuring that the equipment data and history residing in a CMMS are complete and accurate; so that RCM analysis will be a success and positively impact a company’s bottom line, not hurt it.
The degree to which RCM analysis can contribute to profitability is directly variable with the quality and accuracy of the CMMS data on which the analysis is based. Because the technique is rigorous, its over-use will defeat the purpose and lead to cost overruns instead of savings. The way to optimize the RCM return is to apply the analysis strictly to the equipment and systems that will pay off from it, and to know this we must rely on the CMMS. This paper provides guidance for ensuring that the equipment data and history residing in a CMMS are complete and accurate; so that RCM analysis will be a success and positively impact a company’s bottom line, not hurt it.
Maintenance management is an around-the-clock challenge. Equipment failure can (and does) happen at inconvenient times–times when maintenance managers may be off-site and must rely on communication from technicians to convey problems and act efficiently. Mobile computerized maintenance management systems (CMMS) and applications provide live, synchronized status reports and other key features that can dramatically improve reaction time and efficiency.
Maintenance management is an around-the-clock challenge. Equipment failure can (and does) happen at inconvenient times–times when maintenance managers may be off-site and must rely on communication from technicians to convey problems and act efficiently. Mobile computerized maintenance management systems (CMMS) and applications provide live, synchronized status reports and other key features that can dramatically improve reaction time and efficiency.
The latest ARC Advisory Group study of the enterprise asset management (EAM/CMMS) software market profiles more than 80 maintenance application suppliers. This number of choices is enough to make any plant manager shudder. How can you pick the tool that is right for you? The tug-of-war between decision makers can make or break the success of an EAM/CMMS implementation. This article addresses the delicate balance of wants and needs, and how they apply in the application selection process.
The latest ARC Advisory Group study of the enterprise asset management (EAM/CMMS) software market profiles more than 80 maintenance application suppliers. This number of choices is enough to make any plant manager shudder. How can you pick the tool that is right for you? The tug-of-war between decision makers can make or break the success of an EAM/CMMS implementation. This article addresses the delicate balance of wants and needs, and how they apply in the application selection process.
Now that the best EAM/ CMMS application for your business has been selected, the deployment phase begins. But an EAM system is not a plug-and-play application. Will you miss out on some real operational savings? Will the data be clean enough to provide value in a production environment? Will processes be tailored to match the new system, or will they be optimized to improve business? Is the vendor knowledgeable about your specific industry or regulatory requirements?
Now that the best EAM/ CMMS application for your business has been selected, the deployment phase begins. But an EAM system is not a plug-and-play application. Will you miss out on some real operational savings? Will the data be clean enough to provide value in a production environment? Will processes be tailored to match the new system, or will they be optimized to improve business? Is the vendor knowledgeable about your specific industry or regulatory requirements?
A whopping 94.7 percent of plant maintenance managers feel they are not using their computerized maintenance management software system to its maximum capability, according to the results of a national CMMS survey conducted for Reliable Plant magazine by educator, consultant and author Kris Bagadia. “I knew that it was going to be a high percentage. I didn’t know it was going to be that high,” says Bagadia.
A whopping 94.7 percent of plant maintenance managers feel they are not using their computerized maintenance management software system to its maximum capability, according to the results of a national CMMS survey conducted for Reliable Plant magazine by educator, consultant and author Kris Bagadia. “I knew that it was going to be a high percentage. I didn’t know it was going to be that high,” says Bagadia.
What is a failure code? Quite simply, it is a code that illustrates why an asset failed or the reason that the asset failed. Codes can be a number which is cross referenced to a list of actual code descriptions or more conveniently a series of alphanumeric characters that are a logical abbreviation of their descriptions. However, with modern database technology and available disk space, the full descriptions are increasingly being used instead of alphanumeric codes.
What is a failure code? Quite simply, it is a code that illustrates why an asset failed or the reason that the asset failed. Codes can be a number which is cross referenced to a list of actual code descriptions or more conveniently a series of alphanumeric characters that are a logical abbreviation of their descriptions. However, with modern database technology and available disk space, the full descriptions are increasingly being used instead of alphanumeric codes.
An elephant is a large animal and it is doubtful anyone would want to eat one. But the old proverb, with a little twist, has a similar paradox to implementing a computerized maintenance management system (CMMS). Not developing the proper steps to implementation may lead a company to failure.
An elephant is a large animal and it is doubtful anyone would want to eat one. But the old proverb, with a little twist, has a similar paradox to implementing a computerized maintenance management system (CMMS). Not developing the proper steps to implementation may lead a company to failure.
Most, if not all, companies use CMMS systems to oversee their maintenance activities. From home-grown systems to complete ERP systems, leveraging technology allows companies to more efficiently and effectively manage their maintenance, repair and operations activities. So as a core maintenance function, surely routine, lubrication-related preventive and predictive activities such as regreasing motor bearings, taking oil samples, and executing oil top-offs and inspections belong in the CMMS system like any other maintenance task, right?
Most, if not all, companies use CMMS systems to oversee their maintenance activities. From home-grown systems to complete ERP systems, leveraging technology allows companies to more efficiently and effectively manage their maintenance, repair and operations activities. So as a core maintenance function, surely routine, lubrication-related preventive and predictive activities such as regreasing motor bearings, taking oil samples, and executing oil top-offs and inspections belong in the CMMS system like any other maintenance task, right?
In this year literally billions of dollars will be spent, in many different countries, on implementing CMMS and enterprise level systems. Some corporations, such as RIO TINTO and BHP, have attempted to circumvent a lot of this cost by developing implementation templates for use across their global operations.
In this year literally billions of dollars will be spent, in many different countries, on implementing CMMS and enterprise level systems. Some corporations, such as RIO TINTO and BHP, have attempted to circumvent a lot of this cost by developing implementation templates for use across their global operations.
Good Computerized Maintenance Management Software (CMMS) that schedules preventive maintenance work orders on your equipment is an integral component of any efficient maintenance department. Preventive and scheduled maintenance, efficiently scheduled, will not only reduce your maintenance costs, but will minimize emergency repairs and downtime, resulting in an increase in overall profitability.
Good Computerized Maintenance Management Software (CMMS) that schedules preventive maintenance work orders on your equipment is an integral component of any efficient maintenance department. Preventive and scheduled maintenance, efficiently scheduled, will not only reduce your maintenance costs, but will minimize emergency repairs and downtime, resulting in an increase in overall profitability.
Industry pacesetters use real-time equipment data to prioritize and optimize their maintenance resources. The process is straightforward in concept: use real-time data to determine the equipment health, but only inform the Computerized Maintenance Management System (CMMS) when maintenance is actually necessary. From there, the CMMS automatically produces the work order and uses the workflow that is already familiar to all maintenance personnel.
Industry pacesetters use real-time equipment data to prioritize and optimize their maintenance resources. The process is straightforward in concept: use real-time data to determine the equipment health, but only inform the Computerized Maintenance Management System (CMMS) when maintenance is actually necessary. From there, the CMMS automatically produces the work order and uses the workflow that is already familiar to all maintenance personnel.
CMMS systems, as we have come to know them, come basically from two distinct families. These are ERP systems such as SAP, JDE and the PRONTO system and EAM systems such as Epac, MIMS and a plethora of other systems. When most maintenance practitioners refer to CMMS systems they are in reality talking about EAM systems.
CMMS systems, as we have come to know them, come basically from two distinct families. These are ERP systems such as SAP, JDE and the PRONTO system and EAM systems such as Epac, MIMS and a plethora of other systems. When most maintenance practitioners refer to CMMS systems they are in reality talking about EAM systems.
For most companies, gone are the days when users were forced to conform to a rigid framework dictated by the CMMS vendor and strictly controlled by the Information Systems department. Users today enjoy freedom to customise the content, look and feel of their CMMS environment on a variety of devices, from handhelds to desktops. With modern computers and software, users are overwhelmed with choices.
For most companies, gone are the days when users were forced to conform to a rigid framework dictated by the CMMS vendor and strictly controlled by the Information Systems department. Users today enjoy freedom to customise the content, look and feel of their CMMS environment on a variety of devices, from handhelds to desktops. With modern computers and software, users are overwhelmed with choices.
