Maintaining a competitive edge

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.