Maintenance Technology May 2016 - (Page 26)

MAINTENANCE STRATEGIES Right-Size Dividing the hours in a department's backlog by available hours and then following this trend is a common method for determining the size of a maintenance organization. Your Maintenance Organization Christer Idhammar, IDCON Inc. "HOW CAN WE TELL if our maintenance organization is the right size?" I'm accustomed to hearing that question, especially from individuals who are new to the field. Over the years, many maintenance professionals, including myself, have collected substantial data and worked to come up with a simple answer or formula that could finally bring closure to the issue. As a result, some suggest that the size of a plant's maintenance organization should be based on the number of motors, drives, pumps, compressors, and other equipment systems at the site. But that's just one approach. Others believe that right-sizing efforts should be based on estimated replacement value. It's often said that maintenance costs should be less than 2% of estimated replacement value and the cost of employees a percentage of that figure (often 30% to 60% depending on where in the world the facility is located). This approach, though, can have some drawbacks, given the difficulty in assessing the replacement value of older plants. Moreover, maintenance costs vary in facilities, even within the same company. Many of these 26 | MAINTENANCE TECHNOLOGY Implementing and performing improved maintenance processes will help operations reach a sweet spot of efficiency and effectiveness. costs depend on how rules are applied. Take, for example, the fact that some enterprises view lubricants as an operating cost while others view them as maintenance cost. One of the biggest variations involves the application of rules for what can be defined as a maintenance cost versus a capital cost. Consider the following situation. Several years ago, I worked with two competing companies. One had maintenance costs of about US$55 per ton of product; the other had maintenance costs of US$120 per ton. Interestingly, their respective cost of manufacturing was about the same. The company with the lower maintenance costs eventually purchased the other. Subsequently, the acquired company adjusted the rules of capitalization and its maintenance costs ended up at the same level as that of its new owner. The question is, had the acquired company capitalized as much as possible because it knew it could be bought? Another common methodology for determining the right size of a maintenance organization divides the number of hours MAY 2016

Table of Contents for the Digital Edition of Maintenance Technology May 2016

Editorial
Uptime
On The Floor
A 40% Production Boost From Reliability
Beck Helps Women Excel In Engineering
Unleash Your Plant's Hidden Potential
Right-Size Your Maintenance Organization
Respect The Cornerstones of Manual Grease Lubrication
Motor Connection Advice
Maximize Millennial Workers
Compressed Air Filtration
Pneumatic Tubing & Hose Specs
Products
Showcase
Ad Index
Final Thought

Maintenance Technology May 2016

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