Skip Giessing is a 1973 graduate from the United States Naval Academy and a former licensed Nuclear Engineer. Let's review some costs associated with achieving this kind of reliability. In some cases, even grease routes are cut out. WebAnd if your software is a mobile app, add the hosting fees to the maintenance costs as both Google Play Market and App Store take payments for having your app available for download. The tube has a powerful burner in one end and is rotating and mounted in a small angle for the lime to travel through. But, as mentioned in the intro, many maintenance organizations are completely focused on reducing maintenance cost and/or to keep within the maintenance budget. Heres how to do aroot cause analysisto better explore failure modes. Customer purchases training at $250 per person for all engineers, operators and maintenance personnel who affect or touch the pumps. Industrial facilities budget their own money, and municipalities rely on public funding. This ensures you dont spend money on parts and tools you wont need or that are still in stock. 1) Form a project team of people to focus on opportunities for cost reduction and efficiency improvement. After 12-18 months, the maintenance cost will rise again because the preventive maintenance wasnt performed. We have explored these three ways in this article, but lets make the three choices crystal clear. Building Models Different Approaches to accomplishing your needs There are multiple ways to accomplish building data models in SAC. However, reducing maintenance spending by half requires almost superhuman efficiency.
Software Maintenance Costs Actual savings would be greater over the entire 5-year period. Assume also an average MTBM of 18 months, which is fairly typical. The future annual maintenance cost will be higher in the poorly maintained plant since equipment has more maintenance to be done than the well-maintained plant. Equipment will not fail, which reduces costs, The customer is alerted almost immediately when an upset exists, ensuring higher quality production results, less downtime and increased revenues, Smaller maintenance staffs are needed to address repair and maintenance of rotating equipment, Less failures mean less inventory of replacement parts and increased return on assets (ROA), The technology integrates well with process control schemes or DCS/MCC set-ups, Non-invasive analysis of equipment component condition-greatly reducing cost when compared to more invasive preventive maintenance practices, Prevention of catastrophic failures by scheduling controlled maintenance when analysis indicates the need- greatly reducing maintenance costs, Simplification of maintenance planning when equipment is confidently understood, Minimized unscheduled downtime, resulting in increased production and revenue. Common examples of this include air filters, oil filters for hydraulic units, and refiner plates and chipper knives. Plant with 500 pumps, all with mechanical seals. Second, environmental cleanup costs and lost production costs are typically higher because the equipment usually fails at the worst times, and catastrophic failures usually result in the most leakage or exposure to the environment. There may be two identical plants, side by side, one well maintained and one poorly maintained. Reduce the need for maintenance. The breakdown of the production line was avoided (1. Despite many efforts to reduce maintenance costs, most rotating equipment fails because it is forced to run in a failure-producing condition. Why? Instead, the customer will focus more on standardization, simplification, inventory reduction and, of course, cost reduction. When components fail during operation, this failure usually means other components get damaged, resulting in the need for more replacement parts, more labor and potential periods of unscheduled downtime and environmental cleanup. Learn how to reduce reactive maintenance and downtime with practical ideas.
Costs In reality, it is very common that, for example, a $50,000 investment is changed into two, $25,000, investments in order to classify it as an expense. Condition monitoring and fixed time replacements are typically the work that is removed. In a plant, there are thousands of equipment and millions of failure modes, but the delay effect will be the same. What you can do is eliminate wasteful maintenance and increase the productivity of your staff. Tomorrow permanently installed technology will monitor motors. The wear of the belt that carries rock in the sun will be more than the one that carries wood chips indoors, therefore, the maintenance cost will be higher. Collect historical
Maintenance & Cost Reduction WebThe best way to reduce maintenance costs is to reduce the amount of reactive maintenance that a machine or piece of equipment needs. Maintenance of infrastructure such as bridges, roads, railways, electrical grid are often under fire in most countries partly due to this fact.
maintenance costs Referring to the earlier logic in this article, they had two choices: No matter how, you spin these options, option 1 will always be cheaper since you add the cost of the breakdown risk in option 2. In this 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
6 Maintenance Cost Reduction Strategies You Must Follow Bearings are lubricated with the right amount, clean and the correct type of oil! Using earlier terminology, it can be said that the maintenance debt is reduced. It is true that reducing maintenance spending in a short period of time is difficult. In conclusion, significant cost reduction can be achieved as shown in the above example, and this example applies only to pumps and mechanical seals. The plant is typically around two to three years into the cost cutting efforts when the cost starts to rapidly increase again. The slice that is defined as maintenance cost can therefore quite liberally be described however a company wants to describe it as long as it follows local tax rules and regulations. 2) Define current maintenance costs. The customer addresses 100 pumps each of the next 4 years, so all of his pumps are protected after 5 years. Most of us want to have things now.
Pumps can be centrifugal or positive displacement. Its not the million-dollar question, but its close: How can your company reduce maintenance costs? The program would feature quarterly vibration monitoring and analysis for the pumps and semi-annual monitoring and analysis for the motors. Imagine (or worse, try) analysing all your maintenance operations one by one with a pen and pad of paper?
7 Most Common Home Maintenance Costs | Bankrate The average cost of each repair is $2,500 (pumps and seals), not factoring in lost production or environmental clean-up costs. Planned downtime is done when maintenance needs to be performed. 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. If the motor is replaced before the breakdown it may cost 1. A company with 500 pumps can easily have $500,000 to $1 million tied up in spare parts, pump and mechanical seal inventory. For example, condition monitoring using vibration analysis (VA) is useless unless the problems found are planned, then scheduled, then the bearing is changed. This condition is typically undetected or not addressed fast enough, resulting in equipment failure. This example will only cover pump and mechanical seal reliability, but customer total cost reduction is even greater when expanded to other rotating equipment. Infraspeak Team May 15, 2023 Total maintenance cost is always an important performance indicator. Execute contracted maintenance work more efficiently. Instead of constantly fixing the problem, conduct a root cause analysis to understand the true source of the problem. In reality, it can be very hard to see the opportunity costs.
Reducing Maintenance and Operation Costs at - Pumps Many plants are regulated by union agreements and may have to lay off the most recently employed maintenance crafts people. For traditional, in-house FM programs, reducing costs here typically results in a reduction of performance there. 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. The management team needs to ensure that the inventory is available. But if we wait with the job till after the breakdown it will cost 1 + downtime of production (assuming it affects production) + additional damages to equipment (in some cases). How to Reduce Maintenance Costs the Right Way | Reliable Plant It is a critical discussion to have because it changes the whole approach to maintenance in an organization. Parts that look good on the surface may have significant flaws when it comes to material integrity, efficiency (power consumption) and other engineering variables that directly affect the part's reliability. This means that reactive maintenance is not only haemorrhaging money and resources but also time. Eliminate this expense and once again increase ROA. As you see, these opportunities are not always easy to connect with. Failure prevention technology exists whether equipment operates at variable or fixed speeds. 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. Time that the stock market has no patience for. For day-to-day work we may simply say that the backlog is going down.
14 tips to reduce maintenance costs in 2023 Infraspeak Blog Maintenance efficiency is an important factor in this as typically more than half the cost is labor. For example, if a plant has poorly documented preventive maintenance routines, the cost of fixing that problem is not clear to all. A well tightened bolt will never, ever come loose, while a poorly tightened bolt may come loose after a couple of years. There are four necessary steps to maximizing maintenance cost reduction: training, use of failure prevention technology, implementing a predictive maintenance program and taking advantage of the typical consultative services provided by the normal service provider. By eventually protecting all 500 pumps, he has now effectively eliminated 75 percent of all the failures he would normally have and has increased his MTBF from 18 months to almost 60 months. Some maintenance work will have to be cut out or deferred in order to reduce the maintenance cost, but the question is what work the maintenance manager will cut out? The reduction of work executed will become the consequence of the peoples layoffs even if that isnt the intention. The execution of the chain and preventive maintenance is the key. If your average repair time is too high, one reason could be having a lack of spare parts in stock. Why is it interesting? A 60-month MTBF is reasonable based on normal bearing and mechanical seal life expectancies. The hidden maintenance costs are not always classified as maintenance costs, they can be classified elsewhere, but have a connection to maintenance. Learn more: https://www.mckinsey.com/ Tags : # digital transformation # innovation # IOT # maintenance Get all our new content every If the maintenance is cut quickly by doing less maintenance, there is a delay effect for the cost to go up again. Equipment projects should not be in a maintenance budget, so that is seldom an option. Reliability and Maintenance Consultant, 8081 Arco Corporate Drive, Suite 320 Raleigh, North Carolina 27617 USA, SHUTDOWN TURNAROUND OPTIMIZATION TRAINING, SPARE PARTS & MATERIALS MANAGEMENT TRAINING, RESULTS ORIENTED RELIABILITY AND MAINTENANCE TRAINING, selected equipment with good maintainability, inspectability and reliability, Defining Your Plants Maintenance Costs, Maintenance cost / Estimated Replacement Value (MC/ ERV), Maintenance Cost Compared to Estimated Replacement Value, Check out IDCONs Reducing Maintenance Costs the Right Way, IDCONs Practical Prioritizing for Leadership in Maintenance, The Secret to Maintenance and Reliability All Great Organizations Know, The Pros & Cons of Using Contract Maintenance Companies. Consumables: Frequently changed maintenance consumables such as cutting tools are often classified as an operational expense, whereas consumables that are changed less frequently are often in the maintenance budget. After the failure prevention equipment and training are purchased over the first 5 years, these costs go away and the customer is left with only the cost of predictive maintenance as an annual reliability program cost. At the end of the day, all maintenance activities should lead to: These three things are the end goal for all reliability activities. If all of your employees know how to detect problems, malfunctions will be detected much faster. The annual cost for the vibration monitoring and analysis is $42,000, or $210,000 over a 5-year period. 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. Maintaining and operating the equipment used to process water, wastewater and sewage is costly, adding to the budget strain. The systems are a major investment and, in many cases, they may not specifically address equipment reliability.
7 Ways To Reduce Equipment Maintenance Costs - Huyett If Preventive Maintenance activities are allocated to the preferred frequency intervals above in a We summarized the key components by explaining the concept of the chain. On average, only 30% of technicians time is spent working.
Over 700 complaints about bad landlords in Utrecht | NL Times But, since reliability of equipment is completely disregarded, the cost will go up again due to more breakdowns and poor reliability. Those factors are not explored in this article since the focus is on maintenance cost. However, most of these companies only use these technologies sporadically and miss the opportunity for better results.
Industry 4.0 and predictive technologies for asset maintenance The article Defining Your Plants Maintenance Costs by IDCON Inc. provides some helpful guidelines around classification of maintenance cost. Training is the foundation of cost reduction.
Shafts are aligned! In a 5-year period, instead of paying $5 million for pump and seal maintenance, he would only spend $1,400,000 ((500 pumps X $2,500/repair) + ($150,000 for environmental cleanup and lost production)). His total investment for the failure prevention technology after five years is $640,000. If reducing maintenance cost would be the key goal for a maintenance department, it is a very easy goal to achieve. While it may be difficult Scheduling cant be executed unless there is a close partnership with operations in order to coordinate production schedules with maintenance schedules. But lets see what happens by shifting the focus to equipment reliability instead of cutting maintenance costs. Production will go up and the maintenance cost will eventually come down. By reducing inventory, customers not only free up cash, but they also reduce the amount they pay in these carrying costs and taxes. The median American home sold for $375,000 in 2021, so the median homeowner is going to Upon fault detection, this technology will cause the equipment to either shut down completely, slow down into a safe mode or cause alarms that alert operators to take immediate action. The short-term effect is a reduced maintenance cost. Based on the earlier discussion in this article, it can quickly be seen that we are missing parts of the whole equation, right? In this approach, design improvements and preventive maintenance are typically seen as discretionary spend and are the first targets of budget reduction. Take a simple example of a conveyor belt that transports iron ore outside in a hot, humid environment to a similar belt that transports wood chips indoors in a northern paper mill. We want our candy, soda, and desserts now, we dont care if we gain weight later. The Infraspeak Network simplifies everyday processes like quote requests and proposals, sharing work orders and monitoring maintenance carried out by suppliers. Its not the million-dollar question, but its close: How can your company reduce maintenance costs? What happens? It is always a good idea to insure the most expensive equipment for your business or to extend the warranty of some items. Patching is more important than ever because of the increasing reliance on technology, but there is often a divide between business/mission To train personnel correctly, find a professional training program and use it. Maintenance cost is a subset of the total production cost. The average cost for fixed speed failure prevention technology (Emotron M-20 or ITT PS-20)per pump is $725.
Over 700 complaints about bad landlords in Utrecht | NL Times A fire departments work is primarily to prevent fires through regulations, education, and inspection, should we get rid of them because there are few fires. But VA in itself has no use without the chain. A good pitch or slap shot is tad over 100 mph. If you buy a new car and never change the oil, the car may run for 5 years (wild guess, I have not tried) before the engine seizes. If the basics are implemented, there may be an initial maintenance cost increase to start, but as equipment becomes more reliable over time, there are fewer breakdowns, fewer spare parts are used, less resources are needed, and the mine, plant, mill will produce more. The fixed time replacements werent done, so that equipment is now breaking down. They may say, This maintenance cost increase must be something completely new! This also allows you to save space and improve logistics. Common sense. The maintenance manager is often told that the maintenance cost must be cut by X%, within a time limit. This can add up to anything from 10 to 25 percent of the total value of the inventory. For example, if someone finds a hot motor that must be replaced, the job can be delayed for a while (until it stops), but it can never be avoided. Lets look at the maintenance cost from one more angle. WebIn most industries, the cost of maintenance is between 10 and 25 percent of total operating costs. When that pressure reaches the operational part of the company, a search for cost cutting items starts. A lime kiln is a 300-foot steel tube that is lined with brick. Intelligent Maintenance Management Platform (IMMP), come have a chat with one of our specialists. The average cost for variable speed failure prevention technology (ITT PumpSmart) per pump is $3,500.
How to Reduce Maintenance Cost The Right Way Management decided to try to get a good financial quarter and postponed the repair for the next shutdown six (6) months later. Some may say that the idea above is silly, no mine, plant or mill would do that. It should be undertaken by HTM managers with technical skills (such as those located at a maintenance workshop). When rotating equipment operates in conditions that will cause them to fail, there is not typically much time to detect this operating condition before the damage is done. If you dont exercise for 30 minutes today, the opportunity of being healthier in the future is missed. Not only because fixing damaged equipment is costly, but also because your operations have to slow down or even come to a halt in order to accommodate the reparation works.