What Does It Mean?
Maintenance costs include the expenses your plant incurs that are tied to the upkeep and repair of machinery and components present throughout your operation. This KPI measures the levels of maintenance expenses and is useful for tracking machinery’s effectiveness over time.
Why Does it Matter?
Machinery and production tools are the life blood of any manufacturing operation and require constant upkeep to remain in optimal conditions. However, equipment that requires too much maintenance or involves a large amount of upkeep may be detrimental to the bottom line, despite its upsides.
Understanding your costs when it comes to maintenance, wear and tear, and emergency repairs can help you make better decisions regarding your machinery. This includes aspects like choosing between reactive and proactive maintenance, repairs, having spare parts at hand, and more.
By breaking down your maintenance costs, you can decide which machinery to keep, what to replace, and how many resources to allocate to this area.
How Do you Measure the KPI?
Measuring the KPI in your manufacturing analytics dashboard requires tracking the different components that accompany maintenance. This includes maintenance frequency, cost per maintenance, replacement parts, and the skilled labor required for upkeep before aggregating these costs and subtracting them from the target set.
Additionally, it’s important to compare preventive maintenance costs against corrective, with the latter ideally costing less than the former.
What Sources Would You Use to Measure the KPI?
Common data sources for tracking maintenance costs include data from sensors on machinery, expenses for replacement parts and skilled labor, and monthly budget allocated to repairs and preventive and predictive maintenance.
Give me an Example…
Let’s say your factory is producing its regular number of units daily, but the costs of producing each unit have increased drastically. The problem seems to be that a key machine in the process is working too hard to keep up with the current levels of utilization, increasing its need for maintenance from every few months to every few weeks.
Maintenance costs can highlight the problem, which machine is the culprit, and help suggest ways to reduce the associated costs back to normal levels. Similarly, maintenance costs can highlight which spare parts to purchase more frequently, or when to switch from corrective to preventive maintenance.
What Benchmark/Indicators Should I Use?
Some useful indicators include: