The simple reality is that maintenance departments are cost
centers. This means maintenance costs the company money and does not provide a
value-added service to the end customer. In short, maintenance departments do
not create salable product, yet your job exists solely to support salable
product.
Therefore, maintenance must be managed as a competitive
advantage. By changing organizational thinking to view maintenance as a
competitive advantage, more innovative ideas are implemented. To affect this
shift, maintenance is measured by the value produced. First run output becomes
a direct measure of equipment capability, therefore reliability.
Reliability value is measured by the maintenance cost of the
best sustainable run output. Sustainable output length is organization
dependent; common timeframes include 90 shifts, 3 months, outage to outage.
Reliability Value
Best 90 shift output=9,000 widgets
10 hours/shift yields=10 widgets/hour
Maintenance costs for timeframe= $500,000
Maintenance cost/widget= $55.56
Whenever maintenance costs are below $55.56/widget, the
company sustains a competitive advantage. That advantage can be used in profit
taking, or in lowering the product price to gain market share.
Maintenance decisions are now based on cost per widget.
Consider the decision to enter into condition-based monitoring (CBM) at monthly
costs of $10,000. To be advantageous, the program must guarantee an additional
180 widgets ($10,000/$55.56 dollars/widget). At 10 widgets/hour, the program
must improve equipment uptime more than 18 hours/month.
Under cost center thinking, a $10,000/month CBM program
would be an unlikely approval. However, when viewed under the competitive
advantage model, it can be approved because there is a tangible measure of
success—hours of equipment uptime.
—Kate Kerrigan