How to Reduce Total Maintenance Cost? Proven Strategies

How to Reduce Total Maintenance Cost?

Every organization strives for peak operational efficiency in today's competitive business landscape. A well-maintained infrastructure plays a critical role here. Efficient maintenance ensures smooth operation, minimizes downtime, and ultimately maximizes profitability. However, maintenance costs can be a significant ongoing expense. With the rising cost of parts, labor, and energy, optimizing your maintenance strategy is no longer an option; it's necessary.

The good news is that there's a proactive approach. Implementing strategic cost-reduction techniques can significantly reduce your total maintenance cost (TMC). This blog will explore key strategies that maintenance managers, business owners, facility managers, and maintenance professionals can leverage to achieve significant cost savings and improve overall equipment reliability.

The Burden of Maintenance Costs

Let's delve deeper into the concept of Total Maintenance Cost (TMC). TMC encompasses all the expenses associated with keeping your assets operational. This includes:

  • Direct costs: Labor costs for maintenance technicians, replacement parts, lubricants, and other materials.
  • Indirect costs: Lost production due to equipment downtime, administrative costs associated with managing maintenance activities, and energy costs consumed by inefficient equipment.

Now, imagine a scenario where your TMC is high. This translates to a significant drain on your organization's profitability. Production slowdowns due to equipment failures directly impact your output and revenue generation. Furthermore,  excessive spending on reactive repairs can strain your budget and limit resources available for investments in growth or modernization.

Here's where understanding maintenance types becomes crucial. Traditionally, maintenance has been reactive, meaning repairs are only performed after a breakdown occurs. While this approach might seem convenient initially, it often leads to higher overall costs. Reactive repairs are more complex and expensive than planned maintenance activities.

There's a better way. Preventive maintenance involves proactive scheduled maintenance tasks designed to prevent breakdowns before they happen. While preventive maintenance requires upfront investment, it pays off in the long run by reducing downtime, extending equipment life, and ultimately lowering your total maintenance cost. We'll explore the power of preventive maintenance strategies in more detail later.

Strategies to Reduce Total Maintenance Cost

1. Proactive Maintenance

One of the most effective strategies to reduce total maintenance costs is adopting proactive maintenance practices, particularly preventive maintenance. Organizations can enjoy several benefits by conducting maintenance activities regularly and systematically before failures occur! Here's how:

Reduced Downtime: Regularly maintained equipment is less likely to fail unexpectedly, minimizing downtime and ensuring continuous production. This reliability is crucial for maintaining productivity and meeting customer demands on time.

Extended Equipment Life: Preventive maintenance helps you maximize the lifespan of your assets. By catching and addressing potential problems early on, you prevent unnecessary wear and tear, extending the useful life of your equipment and delaying the need for expensive replacements.

Preventive maintenance typically involves routine checks and equipment servicing to prevent breakdowns and failures. Common preventive maintenance techniques include:

Scheduled Inspections: Regular inspections allow you to identify and address minor issues before they escalate into major failures. These inspections can be visual, performance-based, or involve specialized tools like vibration analysis.

Lubrication: Proper lubrication reduces friction and wear on moving parts, extending equipment life and preventing breakdowns.

Part Replacements: Preventive maintenance plans often include scheduled replacements of critical components before they reach their failure point. This proactive approach minimizes downtime and avoids the high costs of reactive repairs.

Technology can be a powerful ally in implementing a proactive maintenance strategy. Work order management systems and Computerized Maintenance Management Systems (CMMS)  can streamline the scheduling, tracking, and execution of preventive maintenance tasks. These tools help ensure that critical maintenance activities are completed on time and every time.

2. Optimizing Maintenance Tasks

While preventive maintenance is a powerful tool, it's crucial to ensure you're optimizing your efforts. Not all equipment is created equal; some require more attention than others. Here's how to get the most out of your preventive maintenance program:

Prioritize Based on Criticality:  Focus your preventive maintenance efforts on critical equipment. This equipment plays a vital role in your operation, and its failure would result in significant downtime and production losses. By prioritizing critical equipment, you ensure you're directing resources toward activities that deliver the highest impact on overall reliability and cost reduction.

Leverage FMEA (Failure Mode and Effects Analysis): FMEA is a systematic approach for analyzing potential equipment failures, consequences, and likelihood of occurrence. By conducting an FMEA, you can identify your equipment's critical failure modes and tailor your preventive maintenance tasks to address those specific failure points. This ensures you're focusing resources on preventive measures that deliver the most value in preventing costly breakdowns.

Eliminate Unnecessary Tasks: It's essential to periodically review your preventive maintenance schedules and eliminate tasks that don't provide a significant benefit. Over time, maintenance practices may become outdated, and some tasks might be redundant or ineffective in preventing failures. You can streamline your program and allocate resources more efficiently by critically evaluating your maintenance routines.

3. Streamlining the Maintenance Process

Efficiency in maintenance operations is crucial for minimizing costs and enhancing productivity. A key component in achieving this efficiency is using a Computerized Maintenance Management System (CMMS). A CMMS acts as a central hub for all your maintenance activities. It provides features to:

Manage Work Orders: Create, assign, track, and manage work orders for preventive maintenance, corrective repairs, and other maintenance tasks. A CMMS streamlines communication between maintenance personnel and ensures tasks are completed on time and efficiently.

Track Inventory: Maintain accurate records of spare parts and inventory levels. CMMS can trigger automatic purchase orders when stock reaches predefined reorder points, preventing delays due to parts shortages.

Reporting and Analytics: Generate reports that provide valuable insights into maintenance activities, equipment performance, and overall program effectiveness. By analyzing this data, you can identify trends, pinpoint areas for improvement, and make data-driven decisions to optimize your maintenance program.

The benefits of a CMMS extend beyond simple organization. Improved data collection and analysis empowers you to:

  • Predict Future Failures: Use historical data to identify equipment prone to frequent breakdowns and schedule preventive measures accordingly.
  • Optimize Maintenance Schedules: Data analysis can reveal trends in maintenance tasks and equipment performance. This information can help you refine your preventive maintenance schedules, focusing resources on activities that deliver the most value in preventing failures and extending equipment life.
  • Reduce Administrative Costs: A CMMS automates many manual work order management and inventory control tasks. This frees up valuable time for maintenance personnel, allowing them to focus on core tasks and improve overall efficiency.

Ultimately, a CMMS not only facilitates a smoother maintenance operation but also empowers organizations to make data-driven decisions that enhance the effectiveness of their maintenance strategies, leading to significant cost reductions and improved asset performance.

4. Investing in People and Training

Your maintenance team is on the front lines to keep your operation running smoothly. A skilled and well-trained workforce is essential for maximizing the effectiveness of your maintenance program and minimizing total maintenance costs.

Here's why investing in your maintenance team is crucial:

Reduced Downtime: A well-trained team can troubleshoot problems quickly and efficiently, minimizing downtime caused by equipment failures. They can diagnose issues accurately and perform repairs correctly the first time, reducing the need for rework and repeat repairs.

Improved Equipment Lifespan: Proper training equips your team with the knowledge and skills to operate equipment correctly and perform preventive maintenance tasks effectively. This minimizes wear and tear, extending the lifespan of your valuable assets and delaying the need for costly replacements.

Reduced Costs: A skilled team reduces overall maintenance costs by preventing unnecessary breakdowns and improving repair efficiency. Training also helps minimize safety incidents, leading to lower compensation claims and a safer work environment.

Training programs should cover a variety of topics, including:

Proper Equipment Operation: Equipping your team with a thorough understanding of how equipment functions ensures they operate it correctly, minimizing the risk of operator error and premature equipment failure.

Troubleshooting Procedures: Training your team on systematic troubleshooting techniques empowers them to identify and diagnose equipment problems quickly and accurately. This allows them to address issues efficiently, minimizing downtime and reducing the need for reliance on external service providers.

Repair Procedures: Providing proper training on repair procedures ensures your team has the necessary skills to perform repairs correctly and efficiently. This minimizes the risk of mistakes leading to further equipment damage or additional downtime.

By investing in your maintenance team's knowledge and skills, you're investing in the long-term success of your maintenance program. A well-trained workforce is a powerful asset that can significantly reduce total maintenance costs and improve overall equipment reliability.

5. Optimizing Parts Inventory

Spare parts inventory plays a critical role in keeping your operation running smoothly. However, striking the right balance is essential. An ineffective parts inventory management system can lead to stockouts and overstocking, which can significantly impact your total maintenance cost.

Implementing a Strategic Parts Inventory Management System:

Real-Time Inventory Tracking: Utilizing technology like CMMS Software to monitor inventory levels in real-time can help maintenance managers ensure that parts are available when needed without maintaining excessive inventory. This system can alert managers automatically when stock levels approach a critical low, enabling timely reordering.

Automated Reordering: Setting up automated reordering systems based on predictive data and past usage patterns can streamline the procurement process, ensure parts availability, and minimize human error.

Supplier Relationships: Developing strong relationships with suppliers can lead to better pricing, reliable supply, and favorable terms, all of which contribute to cost-effective inventory management.

Here are some techniques you can leverage to optimize your parts inventory management:

ABC Analysis: This method categorizes spare parts based on annual dollar consumption. A-items represent the highest-cost parts and require close monitoring and tight inventory control. B-items have moderate consumption, and C-items are the lowest-cost parts. You can allocate resources effectively and optimize your overall inventory investment by prioritizing inventory management for A-items and implementing efficient ordering systems for C-items.

Minimum Order Quantity (MOQ): Establishing minimum order quantities for parts helps avoid stockouts while minimizing storage costs. By setting optimal reorder points based on usage data and lead times, you can ensure timely stock replenishment without unnecessary overstocking.

Standardization: Standardizing spare parts across similar equipment reduces the variety of parts you need to stock,  simplifying inventory management and potentially reducing purchasing costs through bulk discounts.

By implementing a strategic parts inventory management system and leveraging these techniques, you can ensure you have the right parts available at the right time, minimizing downtime, reducing storage costs, and significantly lowering your total maintenance cost.

Implementing a Cost-Effective Maintenance Strategy

A cost-effective maintenance strategy is tailored specifically to an organization's equipment and operations needs. It requires a deeper understanding of the machinery, its operational context, and the business objectives. By aligning maintenance strategies with specific equipment and operational demands, organizations can ensure that resources are utilized optimally, reducing unnecessary expenditures while maximizing equipment performance and lifespan.

Also, a cookie-cutter approach might not address your unique needs and could lead to inefficiencies or unnecessary costs. Here's why customization is crucial:

Optimizing Resource Allocation: You can allocate maintenance resources more effectively by understanding your equipment's criticality and failure modes. Critical equipment might require frequent preventive maintenance, while less critical assets might benefit from a more run-to-failure approach.

Balancing Cost and Risk: The ideal maintenance strategy strikes a balance between minimizing maintenance costs and mitigating the risks associated with equipment failures. For example, highly critical equipment might justify a more proactive and expensive preventive maintenance approach to avoid the high costs associated with downtime.

One valuable approach to customizing your maintenance strategy is Reliability Centered Maintenance (RCM). RCM is a structured process that helps you identify your equipment's failure modes, analyze the consequences of those failures, and develop a cost-effective maintenance plan to address them.

By focusing on the most critical failure modes, RCM helps you optimize your maintenance resources and achieve the desired level of equipment reliability within your budgetary constraints.

Conclusion

Implementing the strategies outlined in this blog can significantly reduce your total maintenance cost (TMC) and improve your operation's reliability and efficiency.

Remember,  maintenance is an ongoing process. The key to achieving sustainable cost reduction lies in continuous improvement. Regularly monitor the effectiveness of your maintenance program,  analyze data, and identify areas for further optimization. By consistently refining your strategies and adapting to changing conditions, you can ensure your maintenance program delivers maximum value and contributes significantly to your organization's overall profitability and efficiency.

Ready to take action and reduce your total maintenance cost? Start by implementing the strategies outlined in this blog and develop a culture of continuous improvement within your maintenance program. The rewards of a cost-effective and reliable maintenance program are well worth the effort!

References

  1. How to Reduce Maintenance Costs the Right Way

Want To Manage Your Work Order Smartly?

Send us a request for demo and we will get back to you shortly!
Schedule a Demo

What Do Our Clients Says ?

Amrapali Exports - Esteemed Clients of cryotos
Anuraj Sharma - Maintenance Manager

The best thing about Cryotos CMMS software is that it always tells me when something needs to be fixed - before it breaks and cost me a fortune!

The software is very user-friendly, and even if I don't know how to do something, the support team is always there to help me out.

Most importantly, unlike other such software, Cryotos is editable and hence the user can modify how the software works as per their need, we made several changes in the workflow & flowchart with the help of development team.

I don't know what I would do without Cryotos! I've been using it for years, and it has saved me so much time and money. I highly recommend it to anyone who wants to manage their assets efficiently.

Resil Chemicals - Esteemed Clients of Cryotos
Jeevan Belliappa - Head, Information Technology

Since we've been using Cryotos CMMS Software, our asset maintenance management has been running more smoothly than ever. We're able to track and optimize our preventive maintenance with ease, thanks to the customized process workflow. This has been a lifesaver for our team!

The Cryotos CMMS software has allowed us to manage our assets more effectively and efficiently. It has helped us to improve our asset utilization. The software is user-friendly and easy to navigate, and the support team is always quick to help with any questions we have. We're very happy with the results we've seen so far and we're confident that we'll continue to see improvements in our asset management as we use the Cryotos CMMS software.

Planys - Cryotos Esteemed Client
Antony Jacob Ashish - Lead, R&D

Cryotos goes above and beyond when it comes to customer satisfaction. Planys Technologies use Cryotos for preventive/ corrective maintenance of our critical systems and not once did we face a problem that was not dealt with immediately. The team is extremely professional and helpful. We can rely on Cryotos when it comes to the operations and processes.

Thanks to the whole team for the amazing performance and thought leadership. It's rare to see teams that can put themselves in the customer's shoes and think from their perspectives - Cryotos team doesthat and more.

We recommend Cryotos if you are looking to put an end to your preventive maintenance problems and sign up with them!

Thanks to the team for an awesome job.

Xpert IFM - Esteemed Clients of Cryotos
Siva Shankar - AGM, (Operations & BD)

On behalf of Xpert FMS we would like to express our sincere appreciation for the excellent support Cryotos team have provided us for our building and facility management. Cryotos has always provided support that is timely and meets our expectations. Professionalism and quick response are the hallmarks of this team.

Sincere appreciation for the team's brilliant performance and wish them continued success. We highly recommend Cryotos as they have executed well on all assigned tasks and continue to outperform.

Thanks to all the hard work, our lives have become easier.

ST Jude India Childcare Centers - Cryotos Esteemed Client
Mukesh J - CIO

We are able to raised the workorder and tracking of these till the closure as helped us to provide better services our beneficiaries. Workflow-based work order management has helped us to define processes for each locations separatley. System provide notification once order is raised for assignment to engineer.

Maspro - Esteemed Clients of Cryotos
Mr.Robert

This CMMS software is top-notch! I can't believe how much it has helped me with my facilities maintenance management. Customized reports and business intelligence have been invaluable in making better decisions.

The software offers a great deal of customization for each organization's specific needs. They are always updating the software with new features and improvements, which is great. The support team is fantastic - they are always quick to help with any questions or problems we have. This software has definitely made my life a lot easier! It's so easy to use and it's really helped me keep track of all my maintenance tasks in one place. I would definitely recommend it to anyone looking for a CMMS platform.

Al Zain Farms LLC - Esteemed Clients of Cryotos
Mr. Vishnu S Nair

Since we've started using Cryotos, our team has been able to stay on top of all the various SOPs. Checklists and safety procedures are now easily accessible to everyone, and we can quickly reference them whenever we need to. The software has definitely helped to improve our team's communication and efficiency. Plus, the fact that it's cloud-based means we can access it from anywhere, which is a big plus. It has been a great help in keeping everyone on the same page and up to date with the latest procedures.

Dinex - Esteemed Clients of Cryotos
B S Vijaya K. - Maintenance Engineer

At starting it felt some what difficult for scheduling but now it made to easy access.

Review from Capterra

Korrun - Esteemed Clients of Cryotos
Nithin G. - Maintenance Incharge

Overall: Nice Software
Pros: Scheduling, work order creation, asset inventory, records.
Reasons for Choosing Cryotos: Compared to other products it's easy to use and easy to understand the feature.

Review from Capterra

Aptiv8 IT Solutions
Hashim - Business Project Manager

This CMMS software is top-notch! I can't believe how much it has helped me with my facilities maintenance management. Customized reports and business intelligence have been invaluable in making better decisions.

The software offers a great deal of customization for each organization's specific needs. They are always updating the software with new features and improvements, which is great. The support team is fantastic - they are always quick to help with any questions or problems we have. This software has definitely made my life a lot easier! It's so easy to use and it's really helped me keep track of all my maintenance tasks in one place. I would definitely recommend it to anyone looking for a CMMS platform.

Gurit - Esteemed Clients of Cryotos
Mr. Mohanmurali R

I recently purchased Cryotos CMMS Software for asset management needs at my organization and after a few months of testing and monitoring, I'm incredibly pleased with the results. The software is user friendly, accessible and the design is very intuitive. It covers all the aspects of managing maintenance and repair, starting from preventive maintenance and standardizing operation cycles, to scheduling and streamlining workflows. I am highly satisfied with the performance and the range of features offered by Cryotos. Highly recommendable!

Metro Tyres - Esteemed Clients of Cryotos
Mr. Sanjay Beri

Before using Cryotos, asset management and maintenance seemed like an uphill task for my team. Manual processes laden with human errors did not work for us at all. We decided to go with Cryotos after checking out similar products in the market.

The user interface of the software is intuitive and easy to use, making it simple to navigate through the different features and functionalities. I particularly appreciate the ability to track all assets in real-time, allowing me to keep a close eye on their performance and maintenance needs.

Customized work order and workflow creation has reduced the needs to always follow a particular template. Depending on our needs we can create tailor made workflows to suit our requirements.

I highly recommend Cryotos to anyone who would like to unburden themselves of maintaining and managing their critical assets.

Dinex - Esteemed Clients of Cryotos
Mr. Yuksel Aksin

As a customer of Cryotos CMMS software for asset management needs, I must say that I am thoroughly impressed with the features and functionality offered by the platform. Cryotos CMMS software has made managing my assets a breeze, and I no longer have to worry about missing maintenance or inspections.

One of the standout features of Cryotos CMMS software is the ability to generate work orders and schedule maintenance tasks. This has made it easy for me to stay on top of maintenance and repair tasks, ensuring that my assets are always in optimal condition.

The software also allows me to track inventory levels which has streamlined my inventory management process. The ability to generate reports and analyze asset performance data has also been invaluable in helping me make data-driven decisions about my assets. Overall, I would highly recommend Cryotos CMMS software to anyone looking for a reliable and efficient asset management solution.

Blue Slider Left Arrow
Blue Slider Right Arrow