If It’s Not Broken…: How to Reduce Maintenance Costs to Increase Your Bottom Line

If It's Not Broken...: How to Reduce Maintenance Costs to Increase Your Bottom Line

Maintenance is often considered one of the most unglamorous aspects of a business, but in reality, it’s one of the most important of them all. If your company has been operating for a while now, you know the vital role maintenance plays in its daily processes. For example, a hotel simply couldn’t host guests in rooms with broken heaters or A/C units, just as a construction crew wouldn’t be able to work on the project at hand if the heavy equipment required to complete the day’s work wasn’t running properly.

Essentially, maintenance is a required cost in many organizations should they want to operate well and stay in business. However, many of these companies are also spending far more than they should on maintenance and repair costs each year. This happens for a variety of reasons, including neglected assets which break down or incorrect/outdated maintenance records, both of which affect a company’s overall productivity and total revenue.

Even over-servicing of assets, equipment, and inventory can unnecessarily increase costs related to maintenance. For example, a study of production and manufacturing plants by Emerson Process Management found over half of typical maintenance activities are unnecessary. In general, Emerson found 63% of work orders never resulted in corrective actions because there was nothing wrong with the specified equipment in the first place, and only 31% of 230 valves scheduled for rebuilding actually needed the work performed.

Maintenance can also cost companies more than is necessary when subsequent repercussions come into play. As noted above, neglected assets often require immediate attention when they fail to work, which decreases productivity not just within the company’s maintenance department, but also across the entire organization when others employees are relying on functioning assets to do their jobs. A company can lose hundreds to thousands of dollars a day in these situations, and also risk losing business opportunities and rapport with customers if they see the inefficiencies caused by lack of proper maintenance.

In some industries, unnecessary regulations can also increase the cost of maintenance for no good reason. If any organization has a hands-on experience with this situation, it’s the United States Department of Defense. A 2010 Budget Control Act forced all branches of the U.S. military to reduce operating costs, most of them opting for solutions such as personnel cuts and asset acquisition changes. However, a 2012 study by the Lexington Institute discovered the Navy and similar military organizations could save between $45 and $95 billion a year on a variety of these costs (including maintenance) if the Pentagon and Congress were to eliminate a plethora of unnecessary regulations and specifications.

As you can see, maintenance is an important part of the majority of companies’ expenses and operating costs, but it should not be taxing them so much that it becomes a concern and a financial drain all on its own. The rest of this white paper will examine how your business can avoid these problems by reducing your maintenance costs to increase your operating efficiency and overall bottom line.

Several Asset Panda customers have used our software to improve their maintenance operations, one of them being AIRTEST Company, Inc. AIRTEST provides testing, adjusting, and balancing services for HVAC systems in professional and commercial buildings. Before implementing Asset Panda, AIRTEST didn’t even know the last maintenance records of their assets, but this all changed after trying our software:

“After trying, unsuccessfully I might add, to keep a spreadsheet updated to keep track of all of our test equipment locations and calibration status, we knew we needed a more effective and reliable way to track our assets. We had items on the books that were lost, probably years ago, and we were losing valuable time and money trying to locate these items time and time again. There were no notes or details to keep the team informed on where particular assets were, who had them, their check in/check out status or even their maintenance records. With 20 plus field technicians moving equipment to and from multiple locations, keeping up with all our critical assets was next to impossible.

Since migrating our asset tracking and management to Asset Panda, I feel like we cannot be without the product ever again! With Asset Panda we are able to dial in our equipment to who has what and where, calibration status, etc. When someone needs a particular instrument they can check the Asset Panda mobile app to see who has what they need, making our employees and the office as a whole more efficient. We now have an accurate inventory of who has what in real time, and there is no more hassle or struggle in trying to update spreadsheets.”

Brent Wyman, Vice President & Operations Manager

Another Asset Panda customer who has benefited from the platform is a real estate rental company, Holiday Isle Property, based in Florida. Using our barcode scanning feature, the rental company was able to scan the keys for each property before handing them out to maintenance crews coming in to clean the homes vacated by tenants:

To read the rest of this white paper, please download it below:

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