One of the most important aspects of any business is cost control; This is particularly crucial in the maintenance department, where the cost of materials can significantly affect the bottom line.
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Maintaining equipment can be expensive, but there are effective ways to control the cost of materials in maintenance. Implementing a Computerized Maintenance Management System (CMMS) is essential to track work orders, scheduling preventive maintenance, and managing inventory. The increasing sophistication of CMMS and its supporting software has given maintenance organizations unprecedented ability to manage material costs. In fact, with the right system in place, it is now possible to predict and track the cost of every repair, replacement, and spare part.
This article will explain how to control the cost of materials in maintenance using a CMMS. We will cover the following topics:
After reading this article, you will better understand how a CMMS can assist in controlling the cost of materials in maintenance.
Any business owner will attest that maintaining tight control over costs is crucial to the success of their enterprise. The same holds true for those managing maintenance operations. In fact, cost control is one of the most critical aspects of maintenance management.
To achieve effective cost control in maintenance, one must have a comprehensive understanding of the various costs associated with running a maintenance operation. These costs can be broadly categorized into three groups:
Let’s take a closer look at each of these categories.
Direct Costs: These costs are incurred as a direct result of carrying out maintenance activities. They include materials, replacement parts, repairs, and outside services.
Indirect Costs: These expenses are not directly related to maintenance activities but are necessary to support the maintenance operation. They include utilities, rent, insurance, and payroll.
Administration Costs: These costs are associated with the management and administration of the maintenance operation. They include CMMS Software, training, and consulting.
Now that we have a better understanding of the various costs involved in running a maintenance operation, the most effective way to control maintenance costs is to implement a comprehensive preventive maintenance (PM) program. By regularly scheduling inspections and proactive repair work, a preventive maintenance program can help reduce the number of Unplanned Downtime events and the associated costs.
In addition to implementing a preventive maintenance program, several other best practices can help control maintenance costs. These include:
An effective parts and Inventory Management system is essential for any maintenance operation. A parts and inventory management system can help reduce downtime and avoid the costs associated with unplanned downtime by keeping track of inventory and ensuring that the right parts are available when needed.
An asset tracking system can help reduce maintenance costs by providing visibility into the condition of assets and the work that has been carried out on them. By tracking the work history of an asset, an asset tracking system can help identify potential problems before they lead to downtime.
Regular equipment maintenance is essential for ensuring equipment can operate efficiently. By properly maintaining equipment, it is possible to extend its lifespan and avoid the cost of premature replacement.
Every maintenance department's never-ending goal is to achieve the perfect balance of maintaining equipment while still controlling the budget. A well-run maintenance organization will keep track of its inventory and work to minimize the amount of wasted materials.
Cryotos CMMS helps maintenance management and reduces material costs by providing a real-time maintenance plan. It tracks equipment status, inventory, and critical spare parts, allowing you to optimize your maintenance staff.
