Published: May 07, 2025  Updated: May 02, 2025

Balancing Maintenance Costs and Asset Performance for Long-Term Success

Many businesses constantly seek to balance maintenance costs and performance. They contend with the factors of efficiency, minimized downtime, and resource allocation. They seek reliable assets with long life. They want optimal inventory levels.

In this article, we'll delve into the art of achieving this balance and explore how a Computerized Maintenance Management System (CMMS) serves as a powerful ally in the process.

Understanding the Balance Between Maintenance Costs and Performance

Think of maintenance costs and performance as two colossal pillars. Both support the edifice of any industrial operation. You can't have too many maintenance expenses without risking financial health.

Example: Imagine a car manufacturer that spends a significant portion of its budget fixing malfunctioning robots on the assembly line. This scenario would not only delay production but also eat into their profits.

However, assets need maintenance to remain reliable. Crews strive for maximum uptime. In turn, this results in customer satisfaction and affects other businesses.

Consider a power plant that neglects vital maintenance on its turbines. If a turbine fails unexpectedly, it could lead to power outages. Now, you have disruptions to businesses and homes in the surrounding area.

Balancing maintenance costs and performance covers more industries than the two above examples.

Manufacturing - A steel mill that prioritizes running its furnaces at full capacity without proper maintenance risks breakdowns that could stall production and lead to missed deliveries.

Aviation – Cutting corners on aircraft maintenance risks catastrophic consequences if a plane malfunctions mid-flight.

Healthcare – Neglected medical equipment in a hospital could compromise patient care during critical procedures.

Essential KPIs That Drive Smarter Asset Management

For insights into this balancing act, companies use Key Performance Indicators (KPIs). These quantifiable metrics provide valuable information about various aspects of maintenance operations. Let's review a few KPIs.

Mean Time Between Failures (MTBF) - This KPI measures the average time elapsed between equipment failures. A higher MTBF signifies longer-lasting equipment reliability. Keep practicing what you've done in this area. You reduce maintenance and costs.

Mean Time to Repair (MTTR) - MTTR looks at the average time it takes to repair a failed asset. You're striving for a lower MTTR. This means you have swift issue resolution and reduced downtime.

Overall Equipment Effectiveness (OEE) - This assesses equipment performance, availability, and quality. It provides a holistic view of equipment efficiency. Through these, you have better cost-benefit analyses of maintenance strategies.

Maintenance Cost as a Percentage of Asset Value - This KPI calculates the ratio of maintenance costs to the total value of assets. It helps in understanding the financial impact of maintenance efforts. Also, it will show areas for improvement.

Planned Maintenance Percentage – Use this to quantify the proportion of pre-planned and scheduled maintenance tasks. A higher percentage indicates effective preventive strategies that can avert costly breakdowns and unplanned downtime.

Maintenance Cost per Unit Produced - This calculation divides maintenance costs by the number of units produced. It provides insights into how maintenance affects production costs.

Inventory Turnover – Using this, you gauge the efficient use of spare parts and inventory. Give your stock classifications based on how often they move off the shelves. With this measurement, you have better oversight of parts that you use infrequently. This helps when it comes to purchasing.

For more information on KPIs, the following sources provide excellent articles.

Reliable Plant

Tech Target

Lean Production

Investopedia

Insight Worthy

Discover how streamlined maintenance processes can elevate production. Learn more.

How a Computerized Maintenance Management System Helps Control Maintenance Costs and Improve Performance

CMMS Reporting and Preventive Maintenance Strategies

A CMMS organizes maintenance management by centralizing data, automating workflows, and providing real-time insights. It acts as a powerful ally in balancing maintenance costs and performance. With proper use, you'll see CMMS software as the most powerful "tool" you'll use.

A quality system will have many of the discussed key performance indicators. This helps you succeed in asset management. It will track equipment readings and depreciation values. This data helps you shape preventive maintenance strategy and when you should purchase replacement equipment.

Speaking of preventive maintenance (PM), don't underestimate the importance of a proper plan. You must adopt proactive practices rather than reactive policies.

Tracking Inventory and Labor for Cost Efficiency

Use the above equipment readings to guide your PM program. Imagine a wind farm that uses a CMMS to monitor sensor data from its wind turbines. The CMMS can predict potential issues with gearbox wear based on vibration patterns. By catching these issues early, the wind farm schedules maintenance during low wind periods.

Finding and resolving issues before they become serious issues reduces downtime and extra costs.

Inventory and spare parts received attention earlier. A CMMS tracks quantities, assigns classifications, and helps the supervisor organize the stockroom.

Create crews and specialized crafts for better labor allocation and work order management. Further reports such as attainment and on-time completion of work orders will help that balancing act. You want to keep the technician occupied without putting too much on the workload. Better efficiency balances out costs.

Custom Integrations to Maximize Asset Management

Further information for analysis comes in specified cost reports. How much inventory did the company purchase in the last thirty/sixty/ninety days? How much overtime accrued over a month? Look at shutdown costs for both maintenance and lost production.

Generate CMMS reports for whatever data you input into the system. Number of work requests, top equipment failures, special project costs, and numerous more. They can reveal inefficiencies in maintenance practices on a specific line. You then focus on improving those areas.

Don't forget about quality communications. Clear work orders and feedback through the system show better ideas for future jobs. Setting priorities on work orders and PMs reduces the risk of neglecting an asset.

Stay in touch with your CMMS provider for new features and training opportunities. https://www.mapcon.com/us-en/cmms-training Discuss integrating the CMMS with other company programs such as accounting and ERM systems.

Do you have a customized feature that would help your balancing act? Work with your provider to add value to your CMMS.

Ready to revolutionize your maintenance department? Schedule a live demo today.

Common Challenges in Managing Costs and Performance

You achieve balance while overcoming obstacles. Let's look at some common obstacles companies face.

• Limited Resources. To have a good balance, you need to invest in a quality CMMS. This means the initial expense and training costs. You also have to have adequate personnel and inventory. If changing from a reactive mindset to a proactive program, you might incur extra initial expenses.
• Lack of Data and Analytics. CMMS contains KPIs and other reports, many companies don't have access to that type of data through other means. Balancing maintenance costs and performance without this information risks a slide to overruns and more downtime.
• Reactive Maintenance Culture. I mentioned this before. Some companies have found a reactive approach the way to go. However, this risks increased downtime and more costs. To find that balance, you should consider a proactive approach. Overcoming resistance to change means finding better ways to communicate the benefits.

Prioritize Asset Management to Balance Costs and Performance Over Time

Once you near or find that balance, you don't stop. The effort to keep that balance means constant attention to and review of the goals and program. Continue to monitor KPIs. Gain the value of a quality CMMS.

Industries evolve and competition intensifies. You must prioritize both cost-effectiveness and optimal performance. Finding and maintaining that balance means better success over the years.

Mapcon Technologies has your CMMS solution. Call 800-922-4336 for a free demonstration. Ask to check out the KPIs. See management balance and success.