Experts lay out a case for ROI of maintenance

Maintenance has always been a cost center in manufacturing, but experts at the July 19 Webcast presented by PLANT ENGINEERING and sponsored by UNICCO Service Company made a compelling case that a proper maintenance program can drive profits and a return on investment. “All manufacturers have to get to operational excellence,” said Tim Goshert, worldwide reliability and maintenance m...

08/15/2007


Maintenance has always been a cost center in manufacturing, but experts at the July 19 Webcast presented by PLANT ENGINEERING and sponsored by UNICCO Service Company made a compelling case that a proper maintenance program can drive profits and a return on investment.

“All manufacturers have to get to operational excellence,” said Tim Goshert, worldwide reliability and maintenance manager for Cargill Inc., one of the presenters of the Webcast. “Customers are getting more demanding. The assets that make our products must be very reliable.”

Even so, Goshert noted, most manufacturers fail to embrace preventive maintenance in any form. “Maintenance as a culture is highly reactive,” Goshert said.

The result, said Don Reed, director of operations for UNICCO, is a cycle of short-term savings followed by sharp increases in costs. “We’re talking about a culture change,” Reed told the Webcast audience. “You’ve got to create a vision for maintenance. Your company’s leadership has to share the vision, and you have to get the buy-in of everyone involved.”

One of the first things needed is a Gap Analysis of the current maintenance operations. The other is to involve not just senior management, but line maintenance workers as well. “When they buy into the process,” Reed said, “the maintenance staff becomes energized.”

Viewing maintenance costs as something that can be managed and reduced changes the way it is perceived. “If it is indeed a cost center, then it can be categorized differently as a profit center,” he said.

The Webcast is available for review at here .





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Prescriptive maintenance; Hannover Messe 2017 recap; Reduce welding errors
Safety standards and electrical test instruments; Product of the Year winners; Easy and safe electrical design
Safer human-robot collaboration; 2017 Maintenance Survey; Digital Training; Converting your lighting system
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
Automation modernization; Predictive analytics enable open connectivity; System integration success; Automation turns home brewer into brew house
Commissioning electrical systems; Designing emergency and standby generator systems; Paralleling switchgear generator systems
Natural gas for tomorrow's fleets; Colleges and universities moving to CHP; Power and steam and frozen foods

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
Compressed air plays a vital role in most manufacturing plants, and availability of compressed air is crucial to a wide variety of operations.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me