How To Reduce Your Equipment Maintenance Costs
Companies often rely on their assets to operate effectively, so they spend a lot of money on purchasing. Nevertheless, spending on regular equipment maintenance is equally vital since it can become expensive if delayed and done incorrectly. The Society for Maintenance and Reliability Professionals recommends spending 3% or less of your replacement asset value on maintenance. However, maintenance costs can be so high that they curb your profit margins and prevent your company from growing. Consequently, it is prudent to leverage ways to reduce your costs without cutting back on maintenance frequency. Here are some effective tips to reduce your equipment maintenance costs.
1. Stay on top of warranties
Warranties are the manufacturer’s guarantee to repair or replace the equipment if an issue occurs within a defined period. Warranty periods are usually for a few years, but some sellers provide warranty extensions if needed. Warranties are beneficial because they eliminate unplanned downtime, saving your business money. Therefore, it is best to purchase equipment and parts from trusted companies like Volvo Penta that offer warranties on products to protect your investments. However, remember that you will typically have to follow instruction manuals, conduct regular upkeep and keep the equipment unmodified to qualify for warranty guarantees.
2. Train your team properly
You can also train your entire team on using company equipment to keep maintenance costs down, so keep this in mind. Proper employee training everyone to detect problems instead of just the technicians. This way, malfunctions are detected and addressed faster. Also, good training of servicing staff ensures that your in-house team can handle all repairs internally, reducing your need for outsourcing and spending extra money. Therefore, organize frequent training for your team to ensure that everyone can always remember the key takeaways. In addition, organize refreshment training to prevent your tram from forgetting rarely practiced instructions.
3. Prevent breakdowns
Unexpected breakdowns can occur due to poor maintenance, so it is prudent to prevent them from happening in the first place. According to Caterpillar, the idle time for broken-down equipment for construction can range from 400 to 800 nonproductive hours annually per machine. Breakdowns are bad for business because fixing damaged equipment is expensive. Additionally, your operations will delay or eventually grind to a halt to accommodate repairs, robbing your business of essential time and money. Consequently, prevent equipment breakdowns by having an excellent preventive maintenance strategy in place. It would also be best to invest in an Intelligent Maintenance Management Platform (IMMP) to schedule, track, and review all technical operations.
4. Avoid cheap machinery
It may be tempting to reduce your equipment costs from the start by purchasing cheaper tools. However, it would be best to account for future expenses when buying these cheap pieces of equipment. According to experts, your company will likely need to invest more in repairs if it purchases cheap machinery since they will break down often. These breakdowns can cause project delays besides making you spend more money. Therefore, it is always best to invest in top-notch and reliable equipment to lower your maintenance cost and remain in business, even though high prices don’t necessarily guarantee equality.