Many businesses and organizations spend thousands of dollars on the maintenance alone of their equipment, machinery, vehicles, and the workplace itself. Maintenance work helps companies guarantee a well-functioning production, safe facilities and workspaces, and maximum efficiency in their operations. It also plays an important role in protecting the work environment, the safety of the employees, and the quality of the manufactured products.
As part of the quality assurance, maintenance can most definitely make or break a business. Poorly maintained resources and premises can eventually lead to interrupted services or product delays. But since maintenance management requires quite a lot of effort and money, some companies still choose to cut it short. This blog seeks to highlight the four tips on how you can reduce maintenance costs without compromising on anything.
Keep a sharp eye on expenses
Whether you’re in the food or manufacturing industry, it is vital to track your maintenance expenses — at least every month. Create up-to-the-minute, detailed records of every maintenance or repair work that the company pays for. Include building maintenance such as HVAC duct inspection, septic tank pumping, landscaping, plumbing inspection, replacement of HVAC air filters, pest control, and so on.
For equipment and machinery, make sure to list down the supplies and parts that needed replacement. To efficiently track the cost, it’s better to utilize a maintenance management system. Such a tool can help you monitor spare parts inventory and schedule preventive maintenance. Alternatively, you can opt for digital spreadsheets using Microsoft Excel or Google.
Create a maintenance budget
Creating a budget for your business’ maintenance may seem overwhelming. But if you are already tracking your expenses, budgeting will come easy. The budget should be based on your maintenance goals and strategy. Ideally, it must meet the demands of the company’s assets, depending on the production needs and targeted asset life.
If you’re in the food industry, let’s say as a restaurant owner, you need a systematic plan that includes in-house repairs and preventive maintenance. It’s best to keep a cash reserve to minimize interest charges and take the cash flow into account. With a list of your recommended maintenance intervals and equipment, start creating the budget. Also, instead of the traditional 12-month forecasts, plan your budget in 13 4-week segments. This way, you can easily make adjustments to your budget for hot-weather fridge repairs or equipment wear.
Practice preventive maintenance
On average, reactive or unplanned maintenance doesn’t just have tons of overhead costs. It also costs about three to nine times more compared to planned maintenance. Some examples of these expenses include higher costs for parts and delivery and loss of production while the machinery isn’t working.
Implementing a good preventive maintenance program is a huge help in reducing your costs. It requires discipline and support from everyone. Coordinate with your team regarding all the equipment or areas that require regular maintenance and schedule the inspections or cleaning. Make sure to consider the maintenance history of your machinery, including details about the manufacturer’s recommendations, types of previous failures, and replaced parts. This will help the new technicians in solving the issues faster, reducing the labor hours needed.
Another key to practicing good preventive maintenance is training every member of your team. Don’t solely rely on calling technicians every single time your manufacturing equipment fails to work. This won’t just allow you to detect malfunctions quickly but also minimize downtime, avoiding time-consuming and expensive repairs.
Extend warranty for equipment
If you can minimize risks, do it. Nothing functions flawlessly every time. For such reason, it is smart to extend the warranty for some of your most expensive equipment. This can readily save you from high repair costs, as well as maintenance expenses. Generally, extended warranties enable you to put a claim on repairs, just as long as the reason is covered by the warranty’s parameters. If the machinery stopped working and the reason again falls under the parameters, you are entitled to a replacement.
You can acquire insurance for particular machinery if you want to. Discuss with a trusted technician what policy is best for your business. Whether you’re obtaining an extended warranty or an insurance policy, there’s no doubt that both are effective in protecting your business against financial loss.
Maintenance should not necessarily ruin your finances. By having an efficient and organized system of handling your maintenance, you can minimize the costs without missing out on your needs. Lastly, do not hesitate to seek the help of professional contractors or experts to do the job. Hiring professionals can save you tons of money in the long run, guaranteeing quality service and preventing more expensive repairs on your equipment. Take action now!