According to a study, planned preventive maintenance has a huge return on investment (ROI) of 545 percent on average compared to reactive maintenance, which eats up 40 percent of your company's operational and maintenance budget.
Not only that, but if a piece of equipment breaks down unexpectedly, your facility's production goals could be set back by hours or even days.
Before you decide to invest your company's money and change your facility management budgets, you need to compare 5 key things.
1. Focused on zero downtime vs. focused on repairs
Imagine that your equipment breaks down all of a sudden. To get it back up and running and working at its best as soon as possible, you would have to pay more to hire machine specialists, pay more to get missing parts shipped as soon as possible, and pay more for technicians to work overtime.
Planned downtime, on the other hand, lets you schedule downtime or split up maintenance tasks to reduce disruptions and save money and time while the machine isn't working.
2. The difference between preventive and reactive maintenance
Machines are bound to break down! But the next step is to understand why proactive maintenance is better than reactive maintenance. Once the asset has broken down, the technical expert will figure out what went wrong and come up with a solution right away to get it working again.
But such expensive and time-consuming repairs can be avoided by keeping an eye on maintenance and wear and tear while the machine is still running. This reduces the risk of failure and unplanned downtime.
3. Efficiency of operations vs. handling crises
When a company is operationally efficient, the benefits it gets are greater than the resources it uses to run the business well. A part of Operational and Maintenance costs is buying and taking care of company equipment.
If the machine breaks down, the company has to use Reactive Maintenance to handle the situation. Because of this run-to-fail situation, the company has to pay out a lot of money. Preventive maintenance, on the other hand, would cut costs by letting technicians stop and find a major breakdown by doing regular maintenance and keeping an eye on the asset's upkeep.
4. Equipment Longevity vs Equipment Replacement
The more breakdowns and major repairs a piece of machinery has, the less well it works and how long it lasts. By keeping an eye on its maintenance and planning for it on a regular basis, you can extend its life and make more money out of it.
The amount of time a company can expect to make money from a tangible asset is called its "Useful Life." By keeping equipment in good shape and making sure it works well, the company can avoid spending a lot of money on replacing it too soon.
5. Based on ROI vs. Based on Temporary Benefits
People say that a business is only as good at making money as its resources. Every resource that is used and put to use is seen as an asset. So, the plan should be based on a Return-on-Investment model that looks to the future, not on the short-term and immediate benefits it offers. A machine's lifecycle includes wear and tear and routine maintenance.
Planned Preventive Maintenance will give the best return on investment (ROI) because it takes into account the costs of keeping the equipment in good shape and reduces the chance that it will break down unexpectedly, which would cost a lot of money until it is fixed.
Companies that use the Reactive Maintenance model might think that Preventive Maintenance is an unnecessary overhead cost until they realize that it would cost them more money and time to fix equipment that broke down without warning.
Planned Preventive Maintenance is the most important part of a successful and cost-effective maintenance plan.