Remove the pain points of Maintenance Work Requests

Remove the Pain Points of Maintenance Work Requests

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One of the best and worst things about being a Maintenance Manager is being so ‘popular’. Everyone wants a piece of you and, as you know, everything is urgent- at least to their way of thinking. When was the last time someone called you and said “No hurry on that work order request, take as long as you like.”

Of course, what might seem ‘red hot urgent’ to the person with the problem, may not be quite as urgent in the scheme of things as they might think.

Everyone has their own agenda and being the person in charge of maintenance issues, you play a key role in managing expectations.

Pain points associated with Work Order requests:

  1. Time lost in searching for unrelated information, and sifting through mountains of paperwork
  2. A loss of momentum, as one job comes straight over the top of another, and
  3. The feeling of being totally overwhelmed by the volume of work requests.

With this in mind, MCGlobal Solutions can provide proven ways to take the chaos out of maintenance work order requests.

Managing Maintenance Work Requests in 3 Steps:

Operations Management and Asset Maintenance

1) Conduct an Asset Criticality Assessment

Of the 200 or so work order requests that could be on your radar, not all of them will be critical.

The first thing to do is conduct a Criticality Assessment of the assets, prioritising all work requests.

Only those items requiring Statutory Compliance and/or impacting health and safety– such as checking for Legionella in a commercial HVAC system – are truly critical.

If it impacts a client experience, for example, a tap dripping at night in a hotel guest’s room or air conditioning not working in a shopping centre, its criticality is slightly lower.

The main advantage of a criticality assessment:

  1. It uses an established filter
  2. With predetermined criteria

It saves you from having to agonise over what risk level a task falls under by having criteria set. And it prevents you from going through the same process a few weeks later with a similar project.

If it ticks the box as critical, based on the predetermined criteria, then it automatically gets priority.

This will reduce the daily influx of work orders that must be dealt with immediately down to a more manageable figure.

2) Determine available resources

Once you have ascertained the criticality of work orders in descending order from “must do” to “wish list”, it is then a case of working out if you have the right resources on hand to confidently and competently do the work.

As you know, these resources are often interdependent.

For example, having the LABOUR to complete the task, in terms of supervisory staff and trades staff.

If the workforce is available, do you have the parts to complete the work?

If certain PART are not on hand, what is the timing for supply so the work order can be re-scheduled?

Also, you must consider the TOOLS and EQUIPMENT required for the task. You might have access to labour and parts, but if your team is on a mining site a piece of equipment might be 100kms away.

3) Consider physical access

This is where you need to look at the big picture, such as:

  • Is it safe?
  • Is it in use?
  • Is there other work going on that would prevent getting access? (Eg you need to paint, but earthworks are making the site too dusty)
  • Do other jobs require the same resources?
  • Can we schedule around regular maintenance?

This process can be stressful unless you have the right Computerised Maintenance Management System (CMMS) in place, one that will consider each and every facet of the job and give you a red or green light.

Our tailored CMMS will make short work of your work orders.

MCGlobal Solutions can configure the CMMS guaranteed to meet your specific industry challenges.

The system will be set up to effectively track, analyse and manage every component of your maintenance management operation, and;

  • give you an instant update on your real-time inventory,
  • increase efficiencies across the entire asset lifecycle
  • assist with better work scheduling,
  • improve the safety and reliability of your assets,
  • and much more.

Want professional advice about how to streamline work order requests?

Contact MCGlobal Solutions for more work order best practice information and professional advice tailored to your industry – Book a Demonstration

Synergy-Partner-Awards- MCGlobal Solution Most Innovative Partner Award

MCGlobal Solution receives Accruent Most Innovative Partner Award

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inventory parts CMMS system

3 Key Steps to Parts and Inventory Management Across Multiple Locations

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Parts and inventory management in one location is a hard enough task. Managing parts and inventory in multiple locations is infinitely more difficult.

If you’re like most companies, it’s a great feeling to add new locations; it’s a sure sign of successful growth.

However, with exuberant feelings also comes the downside – the growing pains associated with setting up new facilities complete with larger amounts of inventory management.

To ensure your company’s successful growth, MCGlobal Solution outlines three key steps to take to make sure all your locations – particularly the new ones – are efficiently managing their parts and equipment operations and will continue to do so for many years to come.

Step 1: Location and Layout of Warehouse and Inventory

As in real estate, it’s all about location.

Many businesses spend vast amounts of money to make sure the location of their storefronts are in highly visible areas to attract customers, but neglect to think about where their warehouses are located.

Warehouse location

Warehouses should be situated in highly accessible locations near main thoroughfares and major highways.

This connectivity not only reduces travel time and fuel but also saves on delivery charges made to and from warehouses.

Eg, opting for a location that is already on a main shipping route is a clever move because it will reduce cost and time in package delivery to your customers or affiliated companies.

As well as making sure your warehouse is located in the best possible location, the layout of inventory parts within your stockroom is of paramount importance when planning.

Stockroom layout

Think about the location, overall design and general theme of where parts are situated within your stockroom.

It pays to be consistent.

Even if your company houses stockrooms in multiple locations, parts and components should have basically the same layout and be in the same location as your other stockrooms- if possible and practical.

This will streamline part locating and make it easier for new employees to be trained.

For example, if Stockroom A at the Toowoomba warehouse looks exactly the same as Stockroom B at the Rocklea location, then training new staff or sending existing employees to other stockrooms will make things easier for them; they’ll be totally familiar with the layout and operations. MCGlobal Solutions Consultants can advise on how to standardise your warehouse operations.

Step 2: Streamline Multiple Inventory Locations

One of the best things you can do when expanding to multiple locations is to set processes in place for inventory activity.

Replenishing inventory stock

The first guideline you should establish is how to replenish inventory.

When a particular item becomes low in stock, your process may NOT be to rush out and purchase new items, but instead to look within your maintenance software to check whether your other stockrooms in close proximity have an overstock of this item. If they do, it makes sense to pull inventory from this stockroom first before purchasing new parts.

Benefits of maintenance software showing inventory across stockrooms

  • This not only saves on purchase costs and shipping but also allows for a Last in First Out replenishment of parts.
  • Having parts sitting on shelves that may be two, there or even five years old could be counter-productive according to inventory best practice.
  • Establishing maximum and minimum stock levels, reorder points and criticality on inventory is another great way to manage multiple locations.

To avoid manually keeping an eye on these levels, it’s a good idea to establish parameters and notifications within the CMMS software letting you know when parts run low, especially critical parts. You can identify parts technicians use on a frequent basis, plus parts they rarely use, so they can easily match parts with the equipment on which they are used.

Mobile scanners and barcodes for inventory stock

Another important key to streamlining your inventory is to make full use of mobile scanners and barcode parts.

The real-time usage of parts and inventory can save your business a lot of time and money. It keeps the company informed about lost inventory and notifies you about shortages of frequently used inventory.

Barcoding and scanning also helps to track parts and ensure correct part ID usage for billing.

Finally, having a great Return Material Authorisation (RMA) process in place will enable your organisation to manage and track returns efficiently.

You’ll also save money on items not used.

Step 3. Streamline Your Operations & Inventory with Maintenance Connection CMMS Integration

MCGlobal Solutions team believes that automation is crucial for any company that wants to streamline operations and inventory at multiple locations.

This automation is given when integrating Enterprise Asset Management (EAM) software into a company’s processes.

Organisations are using Computerised Maintenance Management Systems (CMMS) more and more on a daily basis to manage maintenance needs and to streamline their facilities and inventory needs.

Furthermore, they are turning to CMMS to help manage their operations, with many locations running together and communicating superbly, as it can be integrated with other internal systems.

Learn more about the benefits of inventory and equipment management and CMMS integration

Let MCGlobal Solutions demonstrate what we can do for you with a CMMS system – Book a Demonstration

Why is it Beneficial to Implement an Enterprise Asset Management Plan for your Maintenance Teams + What to Consider When Formulating the Framework

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An Enterprise Asset Management Plan should be implemented regardless of how “aged” your assets are.  The Enterprise Asset Management Plan sets out what your desired level of service will be and provides this service level in the most cost-effective way.

The 5 major benefits of an Asset Management Plan

  1. Prolonging the asset life through efficient and focused operation and maintenance
  2. Meeting customer demands and expectations
  3. Budgeting and efficient use of resources
  4. Meeting service expectations
  5. Complying with regulatory requirements

What to consider in your Asset Management Plan

1. What is your current situation?

An extremely important first step to building the framework for your Enterprise Asset Management (EAM) Plan is understanding our assets.

  • What assets do we own? (Do you have an asset register?)
  • Where are the assets located?
  • What condition is each asset in?
  • What is its useful life?
  • What is the value of each asset?

2. What is the required level of service?

  • What level of service do the stakeholders demand? (Is it ok for the asset to be “down” for a period of time or is the item a “critical” asset)
  • Are there regulatory requirements?
  • What is the current actual level of performance? (Not what we think the performance level is, what it actually is)
  • What is the asset capable of? (Is it running at optimal speed/performance or has it been slowed down to save it?)

3. What are my critical assets?

  • How can the asset fail?
  • How do the assets fail?
  • What are the likelihood and the consequences of the asset failing?
  • What does it cost to repair the asset?

4. What are my life cycle costs?

  • What strategies are suitable for my organisation? (Predictive, Preventative, Run-To-Fail)
  • What would the costs be to maintain, repair, refurbish or replace the asset over the expected life of the asset?

An Enterprise Asset Management Plan is not a static document. Once you have formulated your framework, the components must be reviewed as situations change over time, or new best practices are established.

Interested in unlocking the full potential of your EAM?

Let us demonstrate what we can do for you, as it is never too late to formulate a quality Enterprise Asset Management Plan. Book a Demonstration.

Enterprise Asset Management Series

Next in our Enterprise Asset Management (EAM) series, we discuss some common issues in the industry and some best practices to get your EAM/CMMS running up to speed – The System Health Check

 

 

How to Define What Asset Maintenance and Management Regime to Employ.

Effective Decision-Making Process for Asset Management to Determine which Maintenance Plan to Adopt

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In our previous blog, we covered the topic of ageing assets and their impact on facility management. Having determined an asset doesn’t necessarily need to be old to be “ageing”, all organisations need to look at a process to manage their assets regardless of the physical age of the equipment or facility.

Deciding how to maintain fixed assets or facilities

Regardless of the age or complexity of the facility, or the equipment, we need to make decisions as to how we are going to maintain (or not maintain) our assets.

The decisions made need to be what is best for our organisation and our processes. There is no “right or wrong” decision, however, there does need to be some sound reasoning behind the decisions we make. “Just because…” or “that’s the way they do it” is not sound reasoning.

As all assets age and deteriorate, wear or become obsolete, our decision-making process needs to look at a number of issues.

Determining an asset maintenance plan

A key issue we need to consider when determining the maintenance plan and how we are going to manage an asset, is what is the consequence of failure. Here are two examples:

1. High-risk asset management

If the asset we are considering is the drain valve at the base of a 100,000-litre tank containing sulphuric acid, the consequence of failure is extremely high. Not only would the business risk the financial loss of the value of 100,000 litres of acid, but it would also pose a high risk to the safety of staff, and neighbouring businesses as well as the potential environmental impact.

In the case of a high-risk asset, decision-making with regard to managing the asset will need to look at planning:

  1. rigorous testing
  2. inspections and
  3. monitoring so repair or replacement prior to any sign of wear and long before failure.

2. The low-risk asset management, and Run to Failure (RTF) method

On the other hand, if we are looking at the lighting in the admin office, what maintenance and asset management regime should be employed?

Again, our decision needs to consider what is the consequence of failure.

Should one of the fluorescent tubes fail, what would happen? As there are many light fittings in the office, the loss of one tube would have little to no effect on the operation of the business, there would be little safety impact and production would not be affected in any way.

When the fluorescent tube does fail, it is an easy job for the electrician to replace the tube and if there are no spare tubes on hand in the spare parts stockroom or service van, they are easily and quickly sourced from their supplier. Therefore, when we are making decisions regarding how we handle the ageing light fittings, we may decide that “Run to Failure” (RTF) is the appropriate method of managing the asset.

RTF means the assets maintenance strategy is that the assets are used until they break down, and require repair or replacement.

As shown by the example of the drain valve and the light fitting, there is no one solution that will suit all assets. RTF may in fact be the chosen management method but the decision process used to make this choice must be sound.

Adopt a rigorous & robust decision-making process

Regardless of what the asset is, there needs to be a rigorous and robust decision-making process in place to effectively and efficiently manage all assets as they age.

Contact MCGlobal Solutions for a review

MCGlobal Solutions are highly experienced to demonstrate how you can improve your asset and maintenance management decision-making process. Contact us to arrange a free consultation with our team to discuss a review your asset management and maintenance plan best practices.

Enterprise Asset Management Series

Next in our series, we discuss Why is it Beneficial to Implement an Enterprise Asset Management Plan for your Maintenance Teams + What to Consider When Formulating the Framework.

 

 

What are Ageing Assets, and What is the Impact on Facility Management as Asset Deterioration and Obsolescence Occurs

What are Ageing Assets + What is the Impact on Facility Management as Asset Deterioration and Obsolescence Occurs

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If a colleague makes the comment to you, “we’re working in an ageing facility full of ageing assets”, what do you immediately think?

If you’re like most of us, you’ll probably picture a facility built in the 1920s with run-down equipment and buildings almost collapsing under their own weight.

In some cases, you’d be right, however, the issue of ‘ageing assets’ also applies to those managing brand-new,  state-of-the-art facilities. “How can that be?” I hear you ask…

Defining the term ‘ageing asset’

The term ‘ageing assets’ can be misleading. The term does not necessarily mean the equipment or the facility is old in years.

Ageing is taking into account how old an asset is, its condition, and how the condition is changing over time.

Ageing is the effect whereby a component suffers some form of deterioration and/or damage (usually, but not necessarily, associated with time in service) with an increased likelihood of failure.

The impact of asset deterioration and obsolescence

Just because an item of equipment is old does not necessarily mean it’s significantly deteriorated and damaged. There are many examples of old equipment and facilities still remaining fit for purpose, yet newer equipment showing accelerated deterioration or obsolescence.

The significance of the deterioration and/or damage relates to the potential effect on the equipment’s functionality, availability, reliability and safety.

Every facility or piece of equipment can begin ageing even before it’s commissioned. Newly commissioned facilities may have control systems and software that become obsolete, superseded, or require updates even before the plant is commissioned. Equipment poorly transported or stored prior to installation may have deteriorated or lost performance even before its first use.

Generally, the more hi-tech the equipment or facility is, the quicker obsolescence becomes an issue requiring management.

For example, how many times have you bought an electronic device such as a PC, laptop or television, only to find that before you have unboxed it, there is a better, faster, shinier model already released? …your brand-new device is no longer the current model.

All assets are required to be managed correctly to remain fit-for-purpose and to manage their obsolescence.

Book a free MCGlobal Solutions consultation

Contact us to arrange a consultation with our highly-experienced team to discuss a review your asset management and maintenance plan.

 

Enterprise Asset Management Series

Next in the series, we will discuss the decision-making process of maintaining assets and facilities.

MC Global Solutions Asset Management and Maintenance Software Solutions

Best Practices to Establishing System Naming Conventions

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“A little forethought at the start can save a lot of time in the future.”

It is advised as a best practice to build a strong naming convention and protocols during the initial setup of the Computerised Maintenance Management System (CMMS). This will make it easier for workers to get used to using the Maintenance Connection modules. By employing a consistent and logical format, the explorer lists will naturally group listings to simplify the look-up and search process.

There are five modules where this is particularly relevant

  1. Assets
  2. Inventory
  3. Classifications
  4. Procedures
  5. Preventative Maintenance

1. Assets

As assets are often added, modified or moved within the asset tree, the ID and name need to contain sufficient information to make them identifiable without requiring them to be altered if modified or moved. The ID can often incorporate the classification or unique numbering associated with that asset. The name should start with a general description followed by increasing levels of refinement.

Asset ID and name example

Asset ID: GENDSL200-026

Asset Name:  Generator, Diesel Standby 200KVA Siemens

Always make allowances in the ID for future additions and larger sizes. In the given example, -026 was used in preference to -26 as there is the possibility that there may be more than 99 Generators in the future.

2. Inventory

Inventory/stock items can number into the thousands for many companies.

The ID and naming of these need to be standardised to allow

  • efficient searching for a part,
  • removal of duplication from non-standard descriptions,
  • sufficient descriptors to avoid ambiguity, and
  • new items to be added that match the existing naming convention.

Often the inventory ID is not related to the description of the item, but rather a simple indexed number matching a barcode. A defined number of numerals/letters is valuable in keeping inventory in order.

Inventory ID example

Inventory ID: FIX1003456

Inventory Name:  Bolt, M16 x 100 SST

Inventory ID: MTR040403F

Inventory Name:  Motor, 4KW 4Pole 3PH 415V Foot Mount

The name, however, should follow a noun-adjective protocol. It can also include manufacturer or model details in situations where this is relevant to the correct selection.

3. Classifications

In several major industries, some standards can help in creating a set of classifications. Reporting and analysis can be enhanced by having major classification groups, these can then be broken down further into more specific descriptions.

In the International Standard for the Petroleum, Petrochemical and Gas industry ISO 14224, they used a four-letter abbreviation to group and sort classifications

Classification naming convention example

COAX = Compressor (CO) – Axial (AX)

VESE = Vessel (VE) – Separator (SE)

A similar convention can be used by incorporating the same or more letters or numbers for other industries which do not have existing standards.

4. Procedures

Avoid creating duplicate procedures and easily identify all applicable procedures when updates are required by using the classifications in the procedure and preventative maintenance ID.

As the procedure can either relate to a time or meter-based interval, or an unscheduled type of repair, the ID and name need to be flexible enough to allow for all variables.

Procedure naming convention example

VESE-M48-M-30  = Vessel, Separator 48-Monthly Mechanical Internal & External Inspection

VESE-X01-M-01 = Vessel, Separator Recoating of Corrosion Protection

5. Preventative Maintenance

The classification can be incorporated into the preventative maintenance ID and the name. A similar protocol can be used, with the main variation being the inclusion of the asset within preventative maintenance.

Preventative maintenance ID example

PM-VESE-M-COMPSTN-01 = Vessel, Separator Mechanical Service Compression Station 01

Contact us for a free demonstration

For more information and advice about Maintenance Connection CMMS, please contact our friendly and highly-experienced team at MCGlobal Solutions. We can arrange a free demonstration of our asset management software based on your specific issues.

 

Contact Us

Are you using Enterprise Asset Management Best Practices?

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It’s easy to fall into the habit of using your Computerised Maintenance Management System (CMMS)/Enterprise Asset Management (EAM) system for your ‘favourite problems’ on a day-to-day basis. However, establishing Asset Management Best Practices has many benefits for you and your team.

Can your powerful CMMS/EAM system do more for you?

CMMS systems are a bit like our brains. We know it’s incredible. We know it can do amazing stuff, and yet we only use 10% of it. What if you could unlock that extra 90% of your CMMS/EAM system?

Imagine the difference to your workplace if you could unlock the other 90% not being utilised… or perhaps not utilised very well…  and ensure you are implementing best practices every step of the way.

No more putting out those daily fires. No more Post-It note ‘must do’ (when you have the time) and no more frustrated inter-department emails because something slipped through the cracks and in some cases, created (predictable in hindsight) downstream issues.

 

Learn new ways to use your CMMS/EAM software and outline your Asset Management Best Practices

Your role as an operations manager is complex, and it is difficult to find the time to learn how to get the most out of your investment in a computerised maintenance management system. Or to figure out whether you could be using it better to implement best practice strategies and take more of the load off your shoulders.

See if these questions start you nodding…

  • Do you and your department get blamed for constant breakdowns?
  • Have inefficiencies started to creep into your CMMS/EAM system?
  • Have your preventative maintenance schedules become too complex?
  • Is your asset data incomplete?
  • Are you missing opportunities because the system just isn’t coping?
  • Are there complaints, tantrums, walkouts, picket lines, news reporters, and lawyers??? Ok, ok. So things haven’t become THAT drastic!

The good news is you are not alone. It’s more common than you might think for operation and maintenance managers at a large facility to have a powerful CMMS at their fingertips — but not have the time to make the most of its functionality.

If your system is not running at optimum efficiency, it could be time for a CMMS health check

Without your CMMS/EAM system running at optimum efficiency, things start to fall apart. So, it might just be time for a full review of your CMMS/EAM system.

A CMMS health check scan will identify:

  • What percentage you’re effectively implementing and
  • What is yet to be ‘switched on’ or integrated

Regardless of whether you are using a CMMS, or a manual system, there’s nothing like a fresh pair of expert eyes to help you see where and how you could be saving time, and getting more done in an easier manner. For example:

  • It could be appropriate naming protocols haven’t been used or adhered to.
  • Or classifications are too general — or haven’t been assigned correctly.
  • Maybe incremental errors have occurred as a result of scheduled PMs not being set correctly.
  • Or if labour records are not being kept up to date, there might be discrepancies in staff and contractor’s licenses, qualifications and competencies.

All small things, but all with potentially serious ramifications.

A health check of your system enables a CMMS/EAM consultant to take a good look into:

  • How your daily workflow operates,
  • Review your current methods and procedures, and
  • Identify opportunities for future improvements.

Valuable insights can be gained from an ‘outside’ professional analysing your system.

A health check analysis can quickly identify:

  • Deficiencies,
  • Improve efficiencies,
  • Help to optimise your CMMS/ EAM and
  • Make your job a lot easier, by simply discovering what’s working, what’s not and what to do about it!

A fresh set of expert eyes from a professional consultant can pinpoint errors, detect problems waiting to happen, help prevent future issues and suggest Asset Management Best Practices.

What should be included in a maintenance management system health check?

  • It must examine your current processes and study your present management systems within the CMMS/EAM.
  • It should be non-obtrusive. You can’t afford downtime, so consider conducting a health check in your quiet(er) period.
  • While some preliminary work can be carried out offsite, it’s best to conduct the assessment with the system administrator, supervisors and maintenance staff in attendance to ensure input is received from all involved.
  • A thorough system health check should generally take 2-3 days for medium-sized customers with CMMS/EAM systems. This can vary depending on the size and complexity of your system.
  • A comprehensive, in-depth report should be included. It would provide a full appraisal of your current situation, as well as recommendations for improvement, plus details of benefits you’ll enjoy as a result of implementation if required.
  • IMPORTANT: The health check should be conducted by a consultant from a technical background… not a salesperson!

Your CMMS/EAM health check report

The report is back from the ‘doctor’ on the health of your CMMS/EAS. It might require a little minor surgery, or it may just be given the all-clear. If there are a large number of potential safety and efficiency gains identified, it could be time to look at the business case for an upgrade to a more capable system.

Whatever the outcome, at least you will know where the opportunities are, and what you can do to capitalise on them.

We’d love to help you make the most of your EAM/CMMS

Like you, we care about managing preventive maintenance. Let us run a full System Health Check on your CMMS/EAM system.

With the report in hand, you can implement any or all recommendations yourself, or engage MCGlobal Solutions to do it all for you if you prefer.

Your health check will streamline your system and make it more efficient than ever. You’ll have peace of mind, and you’ll know that you are making the most of your investment in your EAM/CMMS.

For more information about Enterprise Asset Management systems, or advice on specific problems and challenges you are facing, please call MCGlobal Solutions on (07) 3303 0177 or click here to contact us.

How to calculate the life cycle cost of equipment | MC Global Blog

How to calculate the life cycle cost of equipment & the benefits of requesting new equipment to avoid costly unscheduled downtime

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Life cycle cost (LCC) is an extremely useful analytical tool to help minimise waste and optimise energy efficiency, especially when incorporated into a fully-customised computerised maintenance management system (CMMS).

Background: life cycle cost calculation

The US military devised the concept of life cycle cost (LCC). It was so logical and accountable, it was adopted by other government departments and eventually adopted by big business. The U.S. Department of Energy definition of LCC,

“the sum of all direct, indirect, recurring, nonrecurring, and other related costs incurred in the planning, design, development, procurement, production, operations and maintenance, support, recapitalisation and final disposition of real property over its anticipated life span for every aspect of the program, regardless of funding source.”

Why you need to calculate the life cycle cost of equipment

As modern businesses have substantial operational plants and large pieces of equipment, it’s imperative to manage all your assets correctly in terms of productivity and safety.

Life cycle management is an important part of the tendering process. It helps determine how to get the best value from a new piece of equipment.

For example, your experience tells you a new widget would make the factory more productive. However, senior management won’t sign off on the request.

You instinctively know retaining and maintaining the old equipment is not worth the expense, but you need concise information and facts to present to them. A detailed life cycle cost analysis will be able to show management the benefits of the upgrade. This will enable management to make decisions with confidence, with all the figures clearly visible.

Benefits of a life cycle cost analysis

When pitching to management, you will be able to provide detailed pros and cons of upgrading compared with the costs of retaining, based on the life cycle cost analysis of:

  • Age
  • Condition
  • Frequency of breakdowns, and
  • Cost of breakdowns

If the production line is breaking down, you’ll be able to explain to management why.

You can confidently outline recommended solutions, present projected costs and show long-term return on investment – management will see the value in your recommendations.

A life cycle cost analysis will help you make sound buying decisions, and avoid making mistakes twice.

3 life cycle cost considerations

When calculating equipment life cycle costs, there are three areas that need to be analysed.

  1. Past scheduled work
  2. Reactive maintenance costs
  3. Forward projections

Each data set gives you important insights and takes the guesswork out of decision-making.

1. Past scheduled work

This determines the criticality of an asset. Even if it is an inexpensive part that no one notices, if it stops everything else, it is critical.

The criticality of past scheduled work covers:
  • Cost of parts
  • Labour
  • Consumables, and
  • Downtime

2. Reactive maintenance life cycle costs

When you react to a breakdown, in addition to the cost of lost productivity (particularly if it is a critical piece of equipment), you also have to account for the hard costs of parts, labour, and consumables.

It’s important to keep an up-to-date log of work orders/ work requests because if there is no system, there is no knowledge.

Downtime is even more important in terms of reactive maintenance; because it is unplanned, it has an even more significant impact.

Obviously, you cannot project ‘Murphy’s Law’ forward, but a failure analysis, such as reporting on two similar-but-different pieces of equipment can provide invaluable insights.

For example, a manufacturer will say a piece of equipment has a two-year MTBF (Mean Time Between Failure) rate, but what is the ACTUAL rate in your particular environment looking backwards, as a result of your specific conditions (eg dusty, hot, humid, etc)?

Knowing this can make a tremendous difference in decision-making, and take out much of the guesswork.

3. Projecting life cycle costs forward

It is difficult to project forward manually, as it is very labour-intensive, which is no doubt why maintenance managers keep putting it off.

A proven CMMS such as the one offered by MCGlobal Solutions lets you define maintenance schedules in the system and project annual maintenance years in advance.

In terms of reporting, it will give you a clear, concise summary and help you put forward a compelling business case – complete with any up-spec or superior performance figures the proposed new equipment will bring.

For more information and advice about calculating Life Cycle Costs of equipment, please contact our friendly and highly-experienced team at MCGlobal Solutions, simply click here to contact us.