Companies that are bent on avoiding preventive maintenance have to change outlook.
It is a company investment. Your company will benefit from an effective preventive maintenance schedule. Preventive maintenance limits unexpected breakdowns and eliminates non-productive working hours. With a structured preventive maintenance plan, your company will be able to avoid unexpected breakdowns and experience a significant return on investment.
In a 2017 study by Jones Lang LaSalle (JLL), a communications company actually experienced a 545% return on investment, following its implementation of a preventive maintenance plan. Would a 545% ROI be enough to convince your company to switch from corrective maintenance to preventive maintenance plan? It should, but here’s an explanation of how to incorporate JLL’s formula to further convince you.
The Formula to Preventive Maintenance ROI
To estimate your return on investment, JLL suggests that you take stock of the machines that require maintenance, the ones that are most important to production and the success of company projects. Select the machines that have the most value, that will require regular maintenance and cost more to replace. Does the equipment require regular maintenance? Figure the cost of repair or replacement of the machines.
To estimate your company’s return on investment, you must calculate how often each machine requires preventive maintenance. Manufacturers provide this information within the machine’s manual. If you’ve lost the manual the information can usually be found online by visiting the manufacturer’s website.
Next, what has the company spent on corrective (reactive) maintenance, the average dollar amount? Calculate this amount for each machine.
This is all the information you need to learn how much corrective maintenance is costing the company. The numbers will also provide an indication of how frequently or infrequently preventive maintenance is required to save the company money, by reducing corrective maintenance and emergency downtime.
According to JLL with a good preventive maintenance plan in place, your company can expect to reduce corrective maintenance costs by up to 70%.