What are some effective ways to reduce and control a company’s equipment maintenance costs?
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I have just taken on a role in equipment management; last year, our company’s expenses for equipment repairs were very high. The company’s management has requested that we exercise stricter control over the maintenance costs of equipment, and that we find various ways to effectively reduce production and maintenance expenses. I still lack sufficient experience in managing maintenance costs. I would appreciate it if everyone could share their insights; this is a good opportunity for me to learn from others’ experience. Please feel free to express your opinions and offer any advice you have!
What do you do before device management? Familiar with the business? How is equipment repair done for you? Which aspect do you mean? Are both stationary and moving equipment included?
1. Establish equipment condition monitoring and management, conduct regular summaries, implement predictive maintenance, reduce the scope of equipment failures, and lower maintenance costs； 2. Establish a ledger for equipment failures and defects; conduct regular analyses, summaries, and evaluations, and share these findings across the entire company to reduce the recurrence of similar issues with equipment ； 3. Establish a reward mechanism to reward those who identify major hazards in the equipment, thereby reducing the increased costs associated with equipment inspection and maintenance resulting from accidents ； 4. Implementing comprehensive equipment management, enforcing strict rules for equipment operation and maintenance, and improving the quality control of equipment inspection and repair can all help reduce the occurrence of equipment failures ； 5. Strictly control the quality management of the procurement of equipment, accessories, and maintenance materials, ensuring that only high-quality items make it into the factory from the outset ； 6. Strictly control the use of funds for equipment maintenance – remember that these funds are intended for the corrective repairs of equipment and facilities. If the above conditions are properly met, it will ensure the long-term operation of the equipment and reduce its maintenance costs.
Centralized management of maintenance personnel, decentralized operations； Quantitatively evaluate the work of maintenance personnel ； Different maintenance methods are applied according to device categories ；
Hehe! Replying to the first poster: I used to work in production management on the front line, so I have some knowledge of equipment management, but I feel I still don’t know enough, hehe! Shameful! :lol
Cost management is divided into cost accounting and cost control; accounting serves as the foundation, as it is only with accounting data that methods can be identified to carry out cost control tasks. When the cost of equipment maintenance is not high on a monthly basis, it can be included in manufacturing expenses and allocated to the cost of products on a proportional basis at the end of the month. If the maintenance costs are high each month, special management measures should be taken; this can be done in two steps: 1. Create a secondary account titled “Equipment Maintenance Costs” under both manufacturing expenses and administrative expenses. Maintenance costs related to production equipment should be recorded under this secondary account within manufacturing expenses, while those related to equipment used for non-production management purposes should be recorded under the corresponding secondary account within administrative expenses. These two accounts are used solely for aggregating such costs, which are then allocated to the cost of products at the end of the month. 2. Cost analysis. A detailed analysis can be conducted based on the maintenance costs under these two categories; a trend chart can be used to examine how these costs change from month to month. It is necessary to determine whether the level of costs is proportional to the volume of production, to find out why certain months have higher costs, and to explore any methods that could be used to reduce these costs If it is a fixed monthly maintenance cost, then create a trend chart to monitor for any abnormalities on a monthly basis; if such abnormalities occur, conduct an analysis and issue warnings.
It seems that many posts upstairs talk about the need to do a good job in cost management, and that’s undoubtedly true. However, what these people suggest focuses on cost accounting; while this is absolutely correct from a cost management perspective, for equipment managers at the workshop level who are new to their roles, they are not yet familiar with how equipment operates and needs to be maintained. How can we expect them to handle such complicated cost accounting tasks? What needs to be done is for them to get to know their duties as quickly as possible, understand how their equipment functions, and develop appropriate maintenance strategies for the equipment under their responsibility. Or else they should first master the existing maintenance procedures, do a good job in routine maintenance, which will in turn reduce maintenance costs. As for equipment, 70% to 80% of equipment failures are caused by poor lubrication! Keeping this in mind can help reduce a significant number of equipment-related problems. Additionally, it’s important to strengthen inspection and monitoring efforts; establishing an ongoing inspection regime is a good approach. By addressing corrosion in stationary equipment, maintenance costs can be reduced. It’s also essential to be well aware of the risks posed by corrosion caused by various media, among other things. :handshake
After reading the replies posted above, everyone has said a lot, and what they said is quite correct. However, there seems to be one thing that everyone has forgotten, yet which cannot be ignored: it is crucial to improve the professional skills of equipment maintenance personnel.
There aren’t many good solutions; the key is to check and maintain it regularly. When repairing it, don’t just think about applying plasters :lol :lol
Could you recommend some relevant academic materials and the names of necessary books?
1. Enhance employees’ knowledge so that they have a thorough understanding of the equipment and can perform the required three types of understanding and four types of skills. 2. Strengthen employees’ monitoring of operations to prevent accidents from occurring. 3. Improve the inspection, maintenance, and lubrication of equipment to ensure its long-term, safe, and stable operation. 4. Ensure proper control over the quality and costs associated with repairs
In summary, equipment spare parts should be replaced on a regular basis based on their usage cycle, in order to avoid higher costs resulting from unexpected equipment failures. The cost of manufacturing spare parts can be reduced by altering their design or materials. Operational management should also be improved to minimize unnecessary expenses