A planned and proactive approach to maintenance
management can deliver significant financial and
operational benefits, as Ian Ritchie, managing director of
Brammer UK, explains

While every manufacturing
company has a maintenance
department, often time and
resource constraints mean their role is
primarily based around firefighting with little
planned or preventive action to avoid future
downtime. While many companies realise
an improved maintenance programme can
help reduce downtime, many are still some
way off the type of approach which will
deliver long-lasting bottom line benefits.

Put simply, an effective maintenance
management programme is one of the most
cost-effective actions a company can
implement – especially when downtime costs
are considered. These typically range from a
few thousand pounds per hour, to hundreds
of thousands per day, and even completely
lost production in sectors like food and drink.

Identifying problems One way to start to tackle unplanned
downtime is through using condition
monitoring equipment on productioncritical
machinery. This can help identify a
problem before it creates a line stoppage,
allowing maintenance to replace the
component during the next convenient plant
downtime. Condition monitoring has been
simplified by wireless systems detecting and
reporting excessive vibration or temperature
from the most inaccessible or inhospitable
locations. Components are now changed on a
condition basis, potentially extending service
life and maintenance intervals.

Condition monitoring can also help stock
planning as companies understand better how
long key components are lasting, reducing
the need to tie up capital in unnecessary
spare parts stock. This also minimises the
issue of unused spare parts deteriorating, or
becoming obsolete and being written off.

Reducing costs Spare parts sourcing is another important
element of maintenance strategy, affecting
cost, efficiency, safety and productivity. MRO
component supply can be highly
transactional, with buyers shopping around
to get the best price. However, to deliver
value and ensure total cost of ownership
savings, buyers should seek to reduce the
number of suppliers of similar products and
services. This streamlines business processes,
consolidates expenditure and eliminates
expensive duplicated administration costs.

Suppliers providing a comprehensive
range of components and services will be
attractive to manufacturers seeking to
rationalise a supply base to bring economies
of scale and consistency of service. As an
example, one Brammer customer went from
having 3000 parts to a more manageable 230,
and now plans to consolidate to less than 10
working in partnership with Brammer.

Total cost of ownership The current economic situation may lead
some companies to focus on efforts to reduce
maintenance-related purchasing costs by
making decisions based solely on unit price.

However, buying cheapest is rarely the best
policy. In fact, in almost all cases the total
cost of ownership is at least as important as
the initial purchase price. Greater cost
savings and improved production efficiency
are often achievable by focusing on factors
such as production downtime and people
costs associated with product exchange,
product reliability, service life and ongoing
maintenance requirements.

The drive to reduce costs may also tempt
some companies to ‘shop around’ for the
lowest unit cost, possibly resulting in using
an unauthorised distributor. This introduces
risk as products from such a source are often
not to the latest specification and may have
been incorrectly stored and handled.

Sourcing from an authorised distributor
guarantees quality assurance, consistent part
numbering, instant confirmation of
availability, total product traceability, and full
manufacturer’s warranty. A company that
cares about consistent product quality,
production line integrity and continuity of
supply should only buy genuine, fully branded
products from an authorised source.

Savings on energy Well-managed maintenance – in particular
not ‘over-specifying’ in terms of the
components needed – can impact
significantly on reducing energy costs and,
therefore, profitability. For example, industrial
electric motors and drives account for more
than two-thirds of power consumption in UK
industry. Yet many motors are unnecessarily
oversized for the machines they drive. A
motor’s annual energy consumption cost can
be up to 10 times its purchase cost. A 10kW
motor operating at 87% efficiency could cost
£1500 more over its lifetime than one that is
just 5% more efficient. Meanwhile, fitting the
correct drives can save as much as 50% in
the cost of energy consumed.

Best practice in energy management
suggests that time should be taken to identify
specific areas where the most improvements
and potential cost savings are achievable,
rather than changing just one or two
components. The challenge is to identify
ways in which manufacturers can improve
production output and efficiency, while
reducing costs. Best practice maintenance
strategies build a streamlined supply chain
around an authorised MRO distributor. This
ensures continuity of supply, eliminates the
risks associated with non-authorised
providers and reduces admin costs. It also
allows customer and supplier to engage in a
proactive way. A collaborative approach,
including consolidating vendors of similar
products and services, has long been a smart
way to manage maintenance and maximise
operational cost savings.