Why you should Reduce Costs of Downtime

The Costs of Downtime

World-class maintenance organizations and programs are created to curb poor maintenance issues in most Nigerian industries. But the problem faced in the past still exists because having these programs and organizations is not enough. We have significant roles to play in ensuring the technology created to assist us with maintenance is utilized. This is how we will experience positive changes. One of the biggest limiting factors Nigerians face in achieving a fully thriving economy is inadequate care for its assets. For instance, with our road network, Nigeria loses a whopping 1 trillion naira annually due to negligence on maintenance according to reports. Staff lose out on productivity work. Downtime then comes with costs.

The cost of downtime should not be ignored with such numbers. Rather, a structure should be put in place to monitor and maintain the state of assets. One solution that can be beneficial to various industries is a Computerised Maintenance Management System. It is guaranteed to help reduce inefficiencies and costs of downtime for facilities.

What is CMMS?

Simply put, CMMS is a software that allows you to carry out preventive maintenance, inventory control, and uniform work orders. It has been in effect since the 1980s. However, Nigeria has been slow to adapt to this change. Information on maintenance is still recorded on paper. As a result, maintenance has largely been reactive than preventive. It is only when there is a need for damage control that maintenance is carried out. Loss is also a direct result of long approval procedures and turn around time. Most firms, both private and government organizations still use manual incident reporting. Company assets are written on paper and maintenance requests are printed and taken through offices before action is taken. This requires a lot of effort and time.

Some firms have upgraded to the use of spreadsheets for easy data management. However, they still face the same issue in relation to the cost of downtime. There is a limitation to the range of services these platforms can produce and manage.

Currently, in Nigeria, there isn’t a clear understanding of the costs and losses related to the failure of an asset. Well, the cost of asset failure can be 30 times direr than the direct maintenance costs involved. The costs spread company-wide. A serious collapse can affect all departments in an organization. A CMMS can prevent all downtimes observed.

What are the benefits of a CMMS?

This software will make workflow seamless but what are the true benefits of having one for your organization?

Why you should invest in a CMMS

The Costs of Downtime

To elaborate, when there is an equipment breakdown, the operations or maintenance teams are the first to suffer the impact. A breakdown leads to staff idle time, hence, reducing productivity. To carry out urgent breakdown management, the maintenance team would be taken off scheduled work.

Production delay occurs when specialists are needed. Charges come at a higher rate due to the urgency of the request. The cost of downtime spreads to other departments soon after if not prevented or handled properly.

Procurement departments are affected if there is an urgent need to source for equipment spare parts. These individuals will have to contact the accounts team for urgent processing of funds for the purchase.

 

 

The sales team will need to contact the affected clients. If orders for products and services need to be completed. They have to contact affected clients. This is sensitive for a business as it can shape or break customer loyalty.

Not left out is the administrative department. Suppliers and vendors will have to invoice all purchases and expenses made. Either on repairs or replacements of the broken-down equipment. There might be pressure to complete this in time, hence, the room for errors and inefficiencies.

With downtime, you cannot escape the ripple effect it brings. Only if you have a system to carry out preventive maintenance. All losses do not have to occur which puts profitability at mercy.

The Way Forward

In such a fierce environment, structured machinery maintenance methods can indicate the difference between a profitable firm and one that loses sales and money. A CMMS removes the task of door to door data gathering, surveys, and data analysis. SimplyLog CMMS interprets imported data and reports providing statistics of recurring issues and trends. It allows you scheduled maintenance reminders and provides budget reports. Thus allowing management to make more informed decisions reducing the costs of downtime.

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