Preventive maintenance benefits: why preventive maintenance is important to the site that pays for it, the importance of preventive maintenance stated as figures, and the benefits of preventative maintenance you can measure

Updated

Preventive maintenance benefits are usually listed as adjectives, and adjectives do not survive a budget meeting. This page states why preventive maintenance is important as arithmetic: what a breakdown costs against the same work done as a planned job, how many breakdowns a schedule that runs removes, and what that is worth over a year. The importance of preventive maintenance is then a number the site can check, and the benefits of preventative maintenance a manager can defend are the ones that show up in the work order history.

Cheaper than the same work done as a breakdown

This site's worked example puts a breakdown at 3.4 hours of a technician against 1.1 hours for the same work done as a planned task. The difference is diagnosis, waiting and the disruption of doing a job the site did not plan for. At a $48 loaded rate that is $110.40 a breakdown, and on the example's 84 breakdowns a month it is $9,273.60 a month, $111,283.20 a year, before the value of what the line did not make. The preventive programme that would have caught them, 60 jobs and 66 hours a month, costs $3,168. That is the first benefit and it is a number.

Fewer failures, measured as MTBF

A preventive task at the right interval stops the failure mode it was written for, and the measurement is the asset's MTBF rising over the quarters after the task was added. The benefit is only real when the interval is set from the history and adjusted when the history disagrees; a task at the wrong interval delivers the cost without the benefit, which is why the schedule has to be read against the reactive work orders.

Longer asset life and a record that exists

Equipment that is lubricated, adjusted and inspected on schedule reaches the end of its design life rather than failing early, which shows up as capital not spent. And the completed preventive work orders are the compliance record: the forklift inspections, the lockout tests, the statutory checks, each with a date and a name. The cost of not having that record is invisible until the audit or the incident, which is when it is largest.

Benefits that are claimed and should be checked

Vendors and consultants quote percentage reductions in downtime and cost. Treat every one as a hypothesis for your site: put your own reactive share, your own breakdown hours and your own rate into the arithmetic above, and the benefit is yours rather than theirs. The maintenance log worksheet on this site is where a team without a CMMS finds those figures.

Questions people ask about preventive maintenance benefits

How quickly do the benefits show up?

The reactive share is visible in the first month of recording. Fewer breakdowns take a schedule cycle or two. Asset life is a matter of years, and the record exists from the first closed work order.

Can preventive maintenance cost more than it saves?

Yes, on assets whose failure is cheap and whose tasks are frequent. The benefit is on the assets where a breakdown costs more than the task, which is why the schedule is built per asset.

What is the biggest benefit for a small team?

The night calls that stop. A breakdown at two in the morning costs the site more than the technician's hours, and a schedule that runs is what removes it.

Sources

Related answers

Price your reactive work against plannedSee what your PM schedule costs to run