The value and total returns of any asset is based on its lifecycle performance. Simplistically, it follows that Value = Outputs – Inputs. The effort and cost required to acquire, commission, maintain and eventually decommission an asset is therefore offset against the output to deliver value. In an ever competitive world one factor that all companies can control and leverage is the reliability of their assets and equipment to perform.
Reliability is paramount to maximise the return of an asset that is experiencing unplanned downtime. Industry has shown that unplanned corrective work can cost up to 4 – 10 times more than planned maintenance. This cost does not include the loss in production downtime or output, nor does it include the time required to start-up to full capacity. If the right maintenance is carried out in a timely manner, failures can be prevented, reducing maintenance costs and increasing an asset’s output. Do you know what one hour of lost production is worth?
Cost of Downtime (per hour) = Lost Productivity/Revenue + Unplanned Maintenance Costs + Start-up Costs + Intangible Costs
Maintenance that is focused on improving reliability ultimately reduces downtime and maximises output. Undertaking appropriate maintenance activities at the optimum time is essential for the long-term maximisation and sustainability of any asset or piece of equipment, hence increasing the bottom-line profitability.