Reactive maintenance can be a costly approach to keeping assets in working order. Discover its hidden costs and find out how to avoid them proactively.
Too many organisations’ approaches to maintenance are still a case of “don’t fix it if it isn’t broken.” A recent report found 67% of UK organisations link monetary incentives to breakdown repair rather than failure prevention, while 47% of companies defer preventative maintenance.
The result? Unplanned downtime that costs the UK economy a significant amount of money every year. However, the losses associated with downtime aren’t the only cost of taking a reactive approach to maintenance. Several other hidden costs also gnaw at company profits.
Reactive vs Proactive Maintenance
Also known as run-to-failure or breakdown maintenance, reactive maintenance is when an organisation operates equipment until it fails before sending it to repair technicians. This approach can cause significant problems and lead to soaring costs when dealing with expensive, critical assets.
In contrast, proactive maintenance involves organisations performing regular inspections and services before breakdowns occur, enabling them to make informed decisions about repairs or replacements. A proactive approach relies on early warning signs identified using real-time data provided by solutions such as FMIS’ equipment maintenance software.
The Cost of Reactive Maintenance
While not necessarily obvious at first, reactive maintenance comes at several costs. The most significant of these include:
Increased Downtime and High Repair Costs
The report mentioned above revealed that 55% of maintenance budgets in the UK are spent on reactive maintenance, costing the economy around £23 billion in avoidable downtime every year. Every breakdown or failure can bring production or other processes to a halt, and this stoppage could last for days.
Fixing the issue can be a costly undertaking, as organisations need to pay for replacement parts, faster delivery, and maintenance technician wages, which can run high if technicians need to work overtime or outside regular hours. If the equipment is irreparably damaged, replacing it would cost far more.
Safety Risks and Worker’s Compensation
Allowing equipment to run until failure before performing maintenance and repairs can put employees and the surrounding environment at risk. A machine that breaks down suddenly could injure employees or create an environmental hazard. This type of situation could result in workers’ compensation claims, higher insurance premiums, or fines for non-compliance.
Shorter Asset Lifespan
Taking a reactive maintenance approach can decrease the lifespan of an organisation’s assets. The constant stress on equipment, combined with daily wear and tear and exposure to dirt and grime, can lead to it failing much sooner than planned.
Organisations may also find themselves facing a bigger, more expensive problem if they ignore smaller issues, as damaged parts may affect undamaged parts.
Hindered Optimisation
Whereas proactive solutions, such as FMIS’ equipment maintenance software, track repair and maintenance activities and offer reporting to provide valuable insights, a reactive approach usually offers little if any data that can be analysed.
This makes it difficult for organisations to adopt a more proactive approach or to identify areas for improvement or optimisation. The result is organisations getting stuck in a seemingly endless loop of costly repairs while remaining stuck in the past.
Reputational Damage
A reactive maintenance approach puts brand reputation on the line. For example, if a coffee shop relies on a reactive approach and its coffee maker keeps breaking down, frustrated regular customers may leave negative reviews online and find a more reliable shop, resulting in a loss of revenue. The shop will then have to work harder to reattract the customers it lost to a competitor and to attract new customers.
The Benefits of Proactive Maintenance
Ditching a reactive approach in favour of proactive maintenance with the help of FMIS’ equipment maintenance software offers a range of benefits to organisations of all sizes. Chief among these are:
Increased uptime: According to the report mentioned above, organisations with less than 30% reactive maintenance report 78% fewer unplanned production interruptions. The proactive maintenance alerts and reminders provided by FMIS’ software help keep equipment and processes running smoothly, helping organisations meet their targets. They can then schedule downtime for planned maintenance during quiet periods.
Reduced maintenance costs: A proactive approach can help reduce organisations’ total maintenance costs, as routine maintenance is usually more cost-effective than emergency repairs. When parts are purchased, they’re at standard rates, and there’s no need for expedited shipping or maintenance technicians to work overtime or outside regular hours.
Longer asset lifespan: Maintaining and repairing equipment and machinery proactively can extend its lifespan, as their various components are under less stress and worn parts are replaced before they affect functional parts. If a £50,000 press lasts for 15 years instead of 10 due to proactive maintenance, it will protect an organisation from early replacement costs and the disruptions and potential losses associated with installing and testing a new press.
Switch to Proactive Maintenance
Business is competitive and volatile enough without unplanned breakdowns and extended downtime throwing a spanner in the works. Ensure your organisation is prepared for every eventuality by implementing proactive maintenance with powerful equipment maintenance software from FMIS. By keeping operations running smoothly, you’ll set your organisation up for continued growth and success.