Maintenance Budget cut by 70%

The Maintenance Manager is told the Maintenance Budget has been cut by 70%.

Question 1.

Has the director of the company who drives a luxury car cut the budget on the service cost of his car by 70% or is the cost of maintenance on his car not part of his savings drive?

Answer.
Probably not.

Question 2.

Has the Director been to the dealership where his car is serviced and then told them to replace the anti-freeze, brake fluid, gear box oil, diff oil and engine oil they recommend with cheap, inferior lubricants that he has shopped around for at his local discount spares shop.

Answer.
Probably not. So why is it that he will do it with the company’s production equipment. The equipment that pays his salary and the repayments on his car.

Question 3.

Does he question and discuss the reasons for the cost of items such as engine oils, gear oils, antifreeze and brake fluid before he hands over the petrol card and signs the service bill.

Answer.
Probably not. He will just accept the charges as normal and acceptable for the maintenance of his vehicle in order to keep its re-sale value and continue to be reliable in operation for many years to come. He will accept that the workshop has followed the recommendations specified by the original equipment manufacturer (OEM) without taking any shortcuts or using products that are inferior or products that are not approved by the vehicle manufacturer.

Question 4.

What will the result of this new Maintenance policy be on the Return on Investment (ROI) on the manufacturing equipment over the next 10 years.

Answer.
For the first year maintenance costs may be reduced slightly, but in following years the maintenance costs will rise steeply and very quickly negate the savings of the first year.

FACT
The life of any component will be increased three times by the use of the correct lubricant and the result will be huge savings in consequential losses due to downtime.
FACT
Three times as expensive but eight times the service life out of synthetics, when compared to mineral oil
FACT
Using the correct lubricants can reduce electrical consumption by 7.5%
FACT
Using the correct lubricant in a specific application will reduce lube maintenance, repair and replacement costs by 20%
FACT
Savings in investment due to higher utilisation ratios and greater machine efficiencies
FACT
Savings in investment through increased equipment and machinery life

SOLUTION

Do everything you can to save money, make Friday a half day for your tea lady and make your own tea, but never cut corners on the money spent on the correct selection, application and purchase of lubricants for your machinery and equipment.