Surviving & Excelling in the Global Crisis
Controlling your Maintenance Costs
Getting Efficient without risking the health of your plant
As you are aware, the current downturn in the global economy has forced many plants around the world to shut down their operation. Many of those lucky ones that are still operating are running at a reduced production level due to the global decline of many products around the world. Both consumer and industrial products.
The impacts of this global condition are also realistically felt by many Indonesian plants across the industries. Many of our clients have reduced their operating level and struggling to survive the current turmoil by trying to improve their operation into a more efficient plant. For many Indonesian operation and maintenance organization, where it is not a hire and fire workforce situation, this financial situation has simply pushed the management into delaying what deemed as unnecessary expenses. These may include reducing the proactive maintenance activities and delaying capital expenditure for asset improvement.
For example, with the new understanding of reliability centered maintenance principles, many now have realized that if their PM program has stayed very much the same since commissioning time, or if it has not been updated for quite sometime, then chances are, they can save maintenance costs by eliminating a portion of unnecessary routine tasks. They can save big by reducing unnecessary preventive maintenance activities and also by converting some of these preventive tasks into predictive tasks.
But Beware! wrongly executed, this decision may have a reversed impact from the intended benefit. It may results in the deterioration of the overall plant performance which in the long run could lead to an even worse condition (highly unreliable and costly plant). It may even put us back into the vicious cycle of fire fighting maintenance. Blindly reducing maintenance activities, its supporting elements costs and delaying capital expenditure spends will surely reduce your plants ability to ramp up production when the demand picks up. This will make your company feel the impact of the crisis way after it has passed.
The key principle to abide-by in this tough situation is: Control your costs without jeopardizing the health of your plant. So how do you to this? Below are some tips you can consider :
Shed your costly maintenance tasks sensibly. Utilize a solid Maintenance Task Analysis method in a quick PM program rationalization exercise on costly subsystem to immediately reduce maintenance costs and spares consumption without risking its health. For more information on maintenance task analysis, please click here.
Ensure that you are executing a good work management practice. Some of our clients have found that now is the perfect time to tidy up the maintenance management business process as production demand is not high.
Reduce stockouts but also reduce unnecessary spares by ensuring your MRO spares policy is fully aligned to your asset maintenance strategy. For more information on how you can ensure proper MRO inventory strategy, please click here.
It is also a good idea to consider using the equipment downtime due to no production as an ideal time to restore equipment back to its basic condition. For ideas on how you can do this successfully while at the same time also improve teamwork, please click here.
If you are having a quiet time, then perhaps now is the time to get the training that you always want but never had the time. WHY?? Well, if we can't upgrade our equipment due to Capex restriction, then we better upgrade our resources so that we can keep what we have run better. For a list of some value-added training courses we currently offer on the public to improve the effectiveness of your key resources, please visit here.