Maintenance : What’s the cost of outdated systems?
According to the latest data in North America, commercial and residential real estate use an estimated $40 billion worth of outdated equipment, which costs them $50 billion in unexpected building’ system downtimes.
According to maintenance professionals, the leading causes of unscheduled equipment downtime are :
- Aging equipment (34%)
- Mechanical failure (20%)
- Operator error (11%)
- Lack of time for maintenance (9%)
- Poor equipment design (8%)
In 2020, 46.91% of surveyed companies in North America reported that they spent 21% to 40% of their operating budget on cleaning and preventive maintenance.
Meanwhile, 35.67% spent 1% to 20% of their budget. On the other hand, 2.25% of companies spent more than 80% of their operating budget on system maintenance alone (HVAC). (CMM, 2020)
Maintenance : What’s the cost of outdated systems?
According to the latest data in North America, commercial and residential real estate use an estimated $40 billion worth of outdated equipment, which costs them $50 billion in unexpected building’ system downtimes.
According to maintenance professionals, the leading causes of unscheduled equipment downtime are :
- Aging equipment (34%)
- Mechanical failure (20%)
- Operator error (11%)
- Lack of time for maintenance (9%)
- Poor equipment design (8%)
In 2020, 46.91% of surveyed companies in North America reported that they spent 21% to 40% of their operating budget on cleaning and preventive maintenance.
Meanwhile, 35.67% spent 1% to 20% of their budget. On the other hand, 2.25% of companies spent more than 80% of their operating budget on equipment maintenance alone. (CMM, 2020)
Value drivers that leads to predictive maintenance
To get a general idea of the difference in maintenance costs and therefore the benefits of your investment, take into consideration all the different failure types of the asset and whether or not the new technology will improve its sensitivity (the percentage of failures that are identified beforehand).
For each failure, estimate how often they happen now and how often you expect them to occur in the future. Then calculate the old and the new sensitivity, and estimate the costs of the situations in which the failure was foreseen.
Reduced maintenance costs-
Improved safety/reduced risk
-
Reduced operational costs
-
Operational efficiency
-
Increased overall equipment effectiveness
Costs are likely lower with the investment because the new technology ensures you a more ideal response time, and in which the failure was unforeseen. Costs will be the same in the current and future situation.
Take all different costs into account: Analysis, repair, machine downtime, labor overtime, cost of materials, etc.
Value drivers that leads to predictive maintenance
When investing in an asset, you should consider its failure types, sensitivity, and maintenance costs.
Estimate how often failures will occur, calculate sensitivity and estimate costs.
-
Reduced maintenance costs
-
Improved safety/reduced risk
-
Reduced operational costs
-
Operational efficiency
-
Increased equipment effectiveness
Investing in new technology can reduce costs by improving response time and addressing unforeseen failures, while costs remain the same for current and future situations.
Maintenance : Data strategies and team’ adoption
Maintenance is vital to commercial and residential Real Estate, particularly in commercial real estate: Offices building, industrial, warehousing facilities, facility management, and more.
There are two types of maintenance:
- Preventive maintenance;
- Predictive maintenance;
Preventive maintenance is done pre-plan per season, based on usage or yearly and bi-yearly maintenance to prevent when something breaks down unexpectedly. This is the type of maintenance you don’t want to find your team to be overperforming because this would mean waste and double charging for the same operation, which results in higher costs.
Predictive maintenance involves the careful planning and scheduling of performance and safety checks to eventually ensure that the need for any maintenance is minimized.
Aside from using modern tools such as maintenance management software, including computerized maintenance management systems (CMMS), you need to know what’s going on in the field and what system’ component is present on a building to help develop better preventive maintenance plans.
Maintenanceproof adds to this with the concept of the memory of all asset inventory on a building, to know all the specifics about what is where by who on a building and associate the data for future-proof intervention.
This also involves looking at what other maintenance executives are doing to improve their processes. So, for your convenience, we’ve rounded up the latest maintenance statistics that can help you streamline and strengthen your maintenance plans and strategies.
Maintenance : Data strategies and team’ adoption
Maintenance is vital to commercial and residential Real Estate, particularly in commercial real estate: Offices building, industrial, warehousing facilities, facility management, and more.
There are two types of maintenance:
- Preventive maintenance;
- Predictive maintenance;
Preventive maintenance is done pre-plan per season, based on usage or yearly and bi-yearly maintenance to prevent when something breaks down unexpectedly. This is the type of maintenance you don’t want to find your team to be overperforming because this would mean waste and double charging for the same operation, which results in higher costs.
Predictive maintenance involves the careful planning and scheduling of performance and safety checks to eventually ensure that the need for any maintenance is minimized.
Aside from using modern tools such as maintenance management software, including computerized maintenance management systems (CMMS), you need to know what’s going on in the field and what system’ component is present on a building to help develop better preventive maintenance plans.
Maintenanceproof adds to this with the concept of the memory of all asset inventory on a building, to know all the specifics about what is where by who on a building and associate the data for future-proof intervention.
This also involves looking at what other maintenance executives are doing to improve their processes. So, for your convenience, we’ve rounded up the latest maintenance statistics that can help you streamline and strengthen your maintenance plans and strategies.
Environmental KPIs: Up to 20% Operating Cost Savings
Perhaps nowhere is the need for Key Performance Indicators more urgent for organizations these days than in their attempt to meet environmental objectives.
Whether a self-imposed moral imperative, a legal obligation, or both, implementing environmental sustainability initiatives promoting energy conservation, reducing the generation of hazardous materials and greenhouse gases, or targeting other environmental goals- do more than make the world a greener place.
Environmental sustainability strategy deliver up 20% on operational costs mastery.
Key metrics might be based on the volume of recyclable versus disposable materials headed for landfills, the rate of energy reduction or adoption of renewable energy, better hazardous materials management and so on.
Being able to track the amount of water or electricity being used on a day-to-day basis, and where the energy sinks are, gives organizations the ability to take quick remedial measures that can have immediate returns.
A centralized real estate, infrastructure, and facilities management system is invaluable in supporting robust KPI data collection, reporting and data analysis.
Environmental KPIs: Up to 20% Operating Cost Savings
Perhaps nowhere is the need for Key Performance Indicators more urgent for organizations these days than in their attempt to meet environmental objectives.
Environmental sustainability initiatives can help make the world a greener place by promoting energy conservation, reducing hazardous materials, and other goals.
Environmental sustainability strategy deliver up 20% on operational costs mastery.
Key metrics might be based on the volume of recyclable versus disposable materials headed for landfills, the rate of energy reduction or adoption of renewable energy, better hazardous materials management and so on.
A centralized real estate, infrastructure, and facilities management system is invaluable in supporting robust KPI data collection, reporting and data analysis.
Added value of predictive maintenance
Besides the savings made from reducing maintenance costs, determine all ways the new technology will change and benefit operations.
Think about reducing and mastering:
- Amount of inspections
- The benefit of extending periodic maintenance intervals or skipping them altogether
- Lower labor costs
- Keep less excess inventory
- Not needing a big inventory of spare parts
- Lower insurance premiums
- Reducing energy waste
- Extending the asset’s lifetime
Added value of predictive maintenance
Besides the savings made from reducing maintenance costs, determine all ways the new technology will change and benefit operations.
Think about reducing and mastering:
- Amount of inspections
- The benefit of extending periodic maintenance intervals or skipping them altogether
- Lower labor costs
- Keep less excess inventory
- Not needing a big inventory of spare parts
- Lower insurance premiums
- Reducing energy waste
- Extending the asset’s lifetime
