The struggle is real when it comes to asset management. To be as cost-effective as possible, you try to find the delicate balance between getting the maximum life out of a part or asset and doing preventive maintenance. If you work in an asset-intensive field, then you are likely already familiar with the impact of equipment downtime from throwing off your job timeline and production output to the actual cost of repairs.
These costs add up, and in the automotive industry alone, every minute of unplanned downtime equates to $22,000 per minute. With a reported 82% of companies experiencing unexpected equipment downtime at least once in the last three years, this is a widespread issue that organizations face. Whatever the cost is in your industry, it can be avoided with an Enterprise Asset Management (EAM) system set up to handle your preventive maintenance strategy.
The Benefits of an EAM System
Several benefits come with the implementation of an EAM system, including visibility between departments, faster processing of maintenance requests, digitization of inspections and maintenance tasks, and simplified reporting when needed. One of the biggest benefits we’ve seen with Redlist users is a reduction in equipment downtime. Continuing with the automotive industry example, if an asset is set up on an EAM-automated maintenance schedule that saves even just a single workday of downtime, that is $22,000 per minute for 480 minutes (assuming an eight hour day). In other words, $10.56 million is saved in a single day! The cost of preventive maintenance and an EAM system is far less than the cost of repairs and unplanned production downtime.
How does EAM Technology reduce equipment downtime?
Through the use of software, sensors, and configuration to your assets, the EAM automates your maintenance to maximize asset use and avoid machine failure. The data collected also allows you to identify the root cause of equipment failures and measure the life expectancy of your assets based on recorded downtime, repairs, and service. This prevents additional downtime when an asset needs to be replaced, as you will have a better view of the information necessary to predict when equipment needs replaced. However, the key to this reduction in equipment downtime is partnering the technology with an appropriate maintenance program for your assets.
The Role of Preventive Maintenance in Asset Management
The three components of a robust maintenance program are reactive, predictive, and preventive maintenance. Reactive maintenance is the unexpected stuff, typically due to machine failure, breakdown, an accident, or neglect caused by preventive maintenance being missed or ignored. Predictive maintenance is monitoring the condition and performance of an asset with sensors or HMI data, then performing maintenance on an as-needed basis rather than on a recurring schedule. Finally, preventive maintenance is a combination of manufacturer-recommended maintenance and any additional tasks determined by your predictive maintenance needs. It is very common for asset maintenance to be 70% reactive and 30% preventive, but the goal for the greatest ROI is to be 80% preventive and 20% reactive. Not only will this 80/20 program reduce equipment downtime, but it will also increase safety and compliance with OSHA guidelines.
This kind of technology has often been priced out of reach for many companies, which left smaller organizations to deal with paper or spreadsheet-based processes that cost more in downtime at the end of the day. It is now affordable enough for widespread integration across companies in many asset-heavy industries. When you figure out the total downtime cost for your business, you can’t afford to continue without making a change to your maintenance program. And, an Enterprise Asset Management system is the best solution to reducing your equipment downtime and increasing your bottom line, the life of your assets, and the safety of your employees.