What is the size of the prize to be gained from implementing an optimised maintenance strategy?

Table 1 indicates a number of parameters for a typical manufacturing company. The Useful Hours value is based on an OEE level of 50%.

TABLE 1

The make-up of the 50% OEE level is shown in Table 2, which also indicates the target values for the company if it were to be operating at Best Practice levels. The 5th and 6th columns in the table show the estimated involvement that maintenance has in each element of OEE and the contribution that maintenance could make to the possible 35% improvement to OEE.

TABLE 2

The true cost of the maintenance operation is shown in Table 3. When all indirect cost impacts have been factored in, the true cost is actually 4 times the direct maintenance cost, and the potential added value that improving the maintenance operation would generate would be in the order of £1.5M. This benefit would flow directly into profit if the maintenance strategy to achieve the improvement were to be implemented without additional cost. In reality it is not unusual to achieve both an improvement in performance and a reduction in direct maintenance costs by implementing the optimum maintenance strategy for a business. 

To make a ballpark estimate of the profit opportunity for you own business, click here.

TABLE 3

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