A predictive maintenance program can have significant ROI and reduce stress on your Facilities Management department.
A well-thought-out predictive maintenance program can allow Facilities Managers to achieve strong ROI and a significant reduction in maintenance costs, which may be as high as 25 percent, reports Deloitte. However, missteps and program development may lead to frustration, unrealized cost savings and additional problems in your department. To create a successful program, Facilities Managers need to understand the cost associated with traditional maintenance programs, how predictive maintenance adds value, and the 10 steps to making it successful.
The Costs of Reactive and Deferred Maintenance
The cost of reactive and deferred maintenance may vary, but in general, the cost of deferred maintenance is equal to the squared cost of the original repair. Depending on the facility assets, the actual return on investment or implementing a preventative maintenance strategy and preventative maintenance needs can have an ROI as high as 545 percent, as shown in this case study. Meanwhile, proactive maintenance tends to result in actual savings to the budget of 18 percent.
The cost associated with reactive and deferred maintenance includes much more than just the component costs. Field service technicians will be needed, which may incur additional expenses if after hours or on weekends, service level agreements may stipulate additional compensation for unscheduled visits, and disruptions to occupant experiences could result in severe losses.
How Predictive Maintenance Programs Add Value
A predictive maintenance program adds value to an organization by encouraging preemptive inspection of facility assets. Obviously, such programs require a continuous review of existing facility assets and depending on the size of your organization, as well as the number of locations under your supervision, it may be impossible to perform these inspections at the frequency needed to truly create a predictive maintenance program. As a result, Facilities Managers are turning to technology, like internet-enabled sensors and smart devices, to gain real-time insight and visibility into distributed facility assets. Therefore, Facilities Managers can immediately judge the health and status of an asset from a single dashboard, enhancing collaborations, asserts Power magazine.
Best Practices in Creating a Successful Predictive Maintenance Program
Since a predictive maintenance program can represent a significant upfront change to traditional facilities maintenance budgeting and planning processes, which may be as high as 35 percent of the total facilities budget, reports Robert Hemmerdinger, Facilities Managers should follow a few best practices to streamline implementation and achieve a higher return. These practices include:
- Determine the investment costs, says Facility Executive.
- Identify facility assets that can be retrofitted with new technology.
- Use the Internet of Things and the “Cloud” to decentralize decision making.
- Integrate building management systems.
- Develop a defined path for the best way to handle specific maintenance needs, like repairing or replacing facility assets.
- Use analytics to track and monitor asset performance.
- Take advantage of external resources.
- Partner with an expert when necessary.
- Divide maintenance budgets into preventative, predictable needs and reactive maintenance needs for the first year.
- Report savings to stakeholders, allowing C-Suite executives to make informed decisions about the future of the program.
Start Your Successful Predictive Maintenance Program Now
A successful predictive maintenance program is not built simply on hoping to do maintenance at the best time and Facilities Managers should utilize the aforementioned best practices in creating and maintaining their program. In addition, a successful predictive maintenance program requires connected systems and the ability to proactively track performance in real-time.