28 Jul 2014      |      by Carol Owens


Is Your Maintenance Department a Cost Center?

The term “maintenance” frequently conjures up negative thoughts. When you think of maintenance, you might imagine broken equipment or repairs that need to be made. Therefore, it isn’t surprising that many organizations view maintenance as a necessary evil and don’t treat it as a priority. Maintenance is often the first department that is cut when a company downsizes. However, it’s important to view maintenance as a positive activity in your organization because it keeps your assets in working order and significantly affects your bottom line.


Maintenance is the backbone of any organization with equipment that needs to be maintained and is crucial to an organization’s long-term survival. After all, if a piece of equipment breaks down, you will not be able to deliver your products and services, which could have serious consequences for your business. Not only will equipment downtime hurt profits, it could also affect your customer service and damage customer relations.


Taking a Profit-Center Approach to Maintenance


If you treat maintenance as a cost center, you will not be able to unlock its real value and profit. When you take a cost-center approach to maintenance, it means that you try to stick to your budget and lower costs as much as possible. Sadly, the vast majority of companies operate their maintenance departments as cost centers. The profit-center approach is focused on properly allocating investment and operating costs to boost efficiency and increase profits.


You can turn your maintenance department into a profit center by striving to keep your assets in tip-top condition. For example, if you have a manufacturing plant, you would focus on keeping your manufacturing equipment in the best condition possible. This would enable your organization to produce high-quality products with zero defects and thus achieve greater customer satisfaction and lower return rates.


Another effective method for turning your maintenance department into a profit center is preventive maintenance. Preventive maintenance is performed while a machine is in working order to prevent it from breaking down. Preventive maintenance is the opposite of corrective maintenance. It focuses on maintaining equipment and facilities in satisfactory operating condition to avoid or mitigate the consequences of equipment failure.


How EAM Software Can Help


Enterprise asset management (EAM) software streamlines the planning, administrative, and management functions required for effective maintenance. EAM software helps you plan and control maintenance work. Maintenance tasks are triggered by meter readings, condition, time, work requests from people on the plant floor, etc. These triggers or work requests are turned into work orders, which provide details about the procedures that need to be performed and the required parts and tools. Completing work orders enables organizations to collect data regarding the work performed and the underlying cause of the problem.


EAM software keeps equipment in good condition and hence enhances product quality. Benefits of using equipment maintenance software include the following:


  • Extends the life of equipment
  • Increases staff productivity
  • Ensures regulatory compliance
  • Maximizes equipment uptime
  • Increases operational efficiency


Maintenance is an essential activity that should be treated as a profit center rather than a cost center. Maintenance is an investment in your company’s future. Using EAM software can streamline your company’s maintenance operations, help you stay on top of preventive maintenance, and lower costs. To discover the benefits that EAM software can provide your organization, contact DPSI today to set up a free consultation with our team.

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