THE BOTTOM LINE: Reduce Maintenance Costs To Increase Profitability
About ‘The Bottom Line’
Equipment that improves plant efficiency is playing an increasingly important role in profitability for processing operations. In this recurring series, Triangle Process Equipment presents advice to help manufacturers realize cost-effective equipment investments.
Maintenance requirements can significantly impact profitability, and therefore should be a top consideration when purchasing new equipment. When establishing an equipment acquisition strategy, first quantify the labor costs associated with your current equipment’s maintenance requirements. Consider not only the time and resources required to disassemble and clean equipment, but the time and investments needed to update or modify equipment to adapt to changing production needs, and to service the equipment in order to minimize production downtime. And think beyond the equipment itself — don’t overlook administrative expenses associated with accounts payable/record-keeping services needed for replacement parts, service calls, etc.
Consider implementing an “equipment reliability program” in conjunction with new equipment purchases in order to capture cost-savings over the long term. Designed to keep a production facility operating as efficiently as possible, an equipment reliability strategy helps plants identify, prioritize and complete tasks needed to optimize production.
Most plants that update equipment to reduce maintenance costs quickly realize substantial cost savings relative to the costs/benefits of their previous equipment. For help incorporating a cost-effective maintenance strategy into your next equipment acquisition, please contact us.