15 Aug, 23

What Would 10% Less Downtime Do to Your Bottom Line? How Maintenance Management Software Boosts Profits

Charlie McFarlaneBLOGNo Comments

In the fast-paced and fiercely competitive world of manufacturing, every moment counts. The efficiency and reliability of equipment directly impacts a company’s ability to meet deadlines, satisfy customers, and maximise profitability. Yet, the challenge of minimising downtime persists, leaving organisations searching for solutions to bolster their potential. 

This is where CMMS software emerges as a powerful tool that can propel companies toward new levels of productivity. 

This article reviews the cost savings a computerised maintenance management system brings by reducing downtime.    

The Cost of Asset Downtime 

On average, manufacturers witness around 15 hours per week of equipment downtime. The cost? It depends on the industry but in automotive manufacturing, for example, losses sit at around $22,000 (approximately £17,100) per minute when the production line is down. Despite the lost productivity, the usual operating costs are still incurred, squeezing profit margins. 

Reactive Maintenance Management is Costly 

One factor that is likely to increase the chances of unplanned downtime is relying on reactive maintenance strategies. This approach can be more expensive than planned preventive maintenance, and the sudden rush to repair assets often incurs premium costs for emergency repairs and replacement parts. Without scheduled maintenance, assets may succumb to maintenance issues more often.  

Intangible Costs  

What about the intangible costs? First of all, if downtime impacts product availability or service delivery, customers may experience delays and dissatisfaction. This may lead to the loss of existing clients and may tarnish the company’s reputation. On the contrary, the ability to prevent and minimise downtime means more time for production and service delivery, ensuring greater customer satisfaction, and more recommendations and revenue growth. 

As for the emergency services, any downtime or disruption in the ability to respond promptly to emergencies can lead to an escalation of dangerous situations, putting public safety at risk and potentially resulting in property damage or loss of life. To prevent these catastrophic scenarios, they must implement robust protocols in order to ensure preparedness at all times. 

Missed Opportunities 

Downtime may prevent a business from capitalising on time-sensitive opportunities, such as fulfilling urgent orders, meeting market demands, or responding to competitive challenges. 

How CMMS Software Can Improve Your Bottom Line 

Maintenance and asset management software play a crucial role in optimising maintenance operations, extending asset life, reducing downtime, and forecasting potential issues before they escalate. 

A case study reported in the Reliable Plant Magazine discusses that a DaimlerChrysler plant demonstrated cost savings of up to $112,000 thanks to predictive maintenance. More than 106 pieces of equipment needed new parts or other adjustments, including water pumps, cooling fans, gearboxes, and regenerative thermal oxidizer motors. 

Estimates indicated that, if the defects had not been detected in advance, the cost would have been between $31,000 – $112,000 – and that’s not including the production losses. 

CMMS software from Idhammar Systems is proven to deliver year-on-year reductions in maintenance costs of 5-15%, and you’ll see ROI within 6-12 months. Predictive maintenance isn’t the only cost-cutting tactic though – below we outline some other ways that downtime is reduced so your bottom line can improve. 

Inventory Management 

Proper inventory management facilitated by computerised maintenance management software can significantly reduce downtime. Here’s why. 

Timely Spare Parts Availability 

CMMS software allows for more accurate inventory analysis, which helps determine the optimal stock levels for different spare parts. Accurate record keeping combined with automating reorder points ensures that essential spare parts are readily available when needed. This eliminates delays caused by waiting for spare parts to arrive and allows maintenance personnel to perform repairs promptly, reducing equipment downtime. 

Integration with Work Order Management 

Work order management can also be automated. The Inventory Management module within our solution also makes it easy to manage requisitions, purchase order, deliveries, returns, invoices and credits – letting managers handle the admin in all in one system. 

Inventory Tracking for Warranty Claims 

Proper inventory management allows manufacturers to track warranty information and identify parts that are still under warranty. This can help in obtaining free or discounted replacements for faulty components, saving on maintenance costs. 

Conclusion 

Relying on reactive maintenance strategies and experiencing unplanned downtime leads to significant financial losses and various intangible losses. However, the use off maintenance management software presents a powerful solution to tackle downtime-related challenges. 

The predictive maintenance capabilities of CMMS software track asset performance and enable early detection of potential defects, allowing companies to address issues before they escalate and lead to breakdowns that cost thousands of pounds per minute. This proactive approach to maintenance not only saves on repair and replacement costs but also extends the lifespan of assets. 

In addition, having a robust planned maintenance schedule and streamlining inventory management ensures the prompt handling of maintenance tasks. 

Idhammar Systems are the creators of the world’s first CMMS software. To discover how our solutions can maximise your profitability, contact us today to book a demo. 

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