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Last updated on 2024年6月18日

How do you assess and optimize the life cycle cost of your assets through preventive maintenance?

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Preventive maintenance is a proactive strategy to keep your assets in optimal condition and reduce downtime, failures, and costs. But how do you measure and improve the effectiveness of your preventive maintenance program? How do you balance the benefits of preventive maintenance with the costs of implementing it? In this article, you will learn how to assess and optimize the life cycle cost of your assets through preventive maintenance.

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Brian B.

I help manufacturers achieve sustainable productivity gains of up to 85%, cost reductions exceeding $10M by optimizing…

1 What is life cycle cost?

Life cycle cost (LCC) is the total cost of owning, operating, and maintaining an asset over its entire life span. It includes the initial acquisition cost, the operating and energy costs, the maintenance and repair costs, the replacement and disposal costs, and the opportunity costs of lost production or service. LCC analysis helps you compare different alternatives and make informed decisions about your asset management strategy.

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Gnash Aboobacker

"Senior Biomedical Engineer| Manager - Dept. of Biomedical Engineering| Biomedical Engineer| Clinical Engineer| Lecturer"
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In addition to considering life cycle cost, it's valuable to integrate a sustainability perspective. Assessing the environmental impact and resource efficiency throughout an asset's life cycle contributes to a holistic decision-making process. This approach aligns with evolving corporate social responsibility standards and positions organizations to make choices that not only optimize costs but also minimize their ecological footprint over time.

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2 How does preventive maintenance affect life cycle cost?

Preventive maintenance is a type of maintenance that aims to prevent or delay the deterioration of an asset by performing scheduled inspections, tests, cleaning, lubrication, adjustments, and replacements. Preventive maintenance can reduce the life cycle cost of an asset by extending its useful life, improving its reliability and performance, lowering its energy consumption, and avoiding costly breakdowns and repairs. However, preventive maintenance also involves some costs, such as labor, materials, tools, and downtime. Therefore, preventive maintenance should be applied only when it is cost-effective and justified by the expected benefits.

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Brian B.

I help manufacturers achieve sustainable productivity gains of up to 85%, cost reductions exceeding $10M by optimizing their asset management programs through our consulting services | Founder AMSS Consulting
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Preventive maintenance helps lower life cycle costs by preventing unexpected breakdowns and extending the life of your equipment. It reduces emergency repairs, minimizes downtime, and boosts efficiency, making your assets more reliable and cost-effective in the long run.

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Gnash Aboobacker

"Senior Biomedical Engineer| Manager - Dept. of Biomedical Engineering| Biomedical Engineer| Clinical Engineer| Lecturer"
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It's essential to consider a risk-based approach to preventive maintenance. Tailoring the maintenance strategy based on the criticality and failure consequences of different assets allows for a more targeted and efficient allocation of resources. By focusing efforts on high-risk components or systems, organizations can maximize the impact of preventive maintenance while optimizing costs and minimizing disruptions to operations.

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Tommy Davis

Welding Engineer | Operations, Problem Solving
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I have been consistently advised throughout my life to take good care of my equipment, as doing so will ensure its longevity and reliability.

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3 How to assess the cost-effectiveness of preventive maintenance?

To assess the cost-effectiveness of preventive maintenance, you need to calculate the net present value (NPV) of the preventive maintenance activities and compare it with the NPV of the corrective maintenance activities. The NPV is the sum of the present values of all the future cash flows associated with an investment, discounted by a certain interest rate. The higher the NPV, the more profitable the investment is. You can use a spreadsheet or a software tool to perform the NPV calculation and compare different scenarios and variables.

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Gnash Aboobacker

"Senior Biomedical Engineer| Manager - Dept. of Biomedical Engineering| Biomedical Engineer| Clinical Engineer| Lecturer"
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Consider incorporating risk analysis into the assessment. While NPV provides valuable financial insights, factoring in potential risks and their impact on maintenance strategies can enhance decision-making. By evaluating the probability and consequences of equipment failures, organizations can better gauge the overall effectiveness of preventive maintenance in mitigating risks and ensuring operational continuity. This comprehensive approach helps in making informed decisions that align with both financial goals and risk management objectives.

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4 How to optimize the preventive maintenance schedule?

To optimize the preventive maintenance schedule, you need to find the optimal frequency and timing of the preventive maintenance activities that minimize the life cycle cost of the asset. You can use various methods and models to determine the optimal preventive maintenance schedule, such as reliability-centered maintenance (RCM), failure modes and effects analysis (FMEA), condition-based maintenance (CBM), and optimization algorithms. These methods and models help you identify the failure patterns and criticality of your assets, the optimal intervals and triggers for preventive maintenance, and the trade-offs between preventive and corrective maintenance.

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Gnash Aboobacker

"Senior Biomedical Engineer| Manager - Dept. of Biomedical Engineering| Biomedical Engineer| Clinical Engineer| Lecturer"
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Incorporate real-time data and advanced analytics into your preventive maintenance strategy can enhance its effectiveness. Utilizing sensors, IoT devices, and predictive analytics enables you to monitor equipment health in real-time, allowing for dynamic adjustments to the preventive maintenance schedule based on actual asset conditions. This data-driven approach enhances accuracy, reduces the risk of unplanned downtime, and ensures that maintenance activities align closely with the current state and performance of the assets.

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5 How to monitor and improve the preventive maintenance performance?

To monitor and improve the preventive maintenance performance, you need to establish and track key performance indicators (KPIs) that measure the efficiency, effectiveness, and value of your preventive maintenance program. Some examples of preventive maintenance KPIs are preventive maintenance compliance, mean time between failures (MTBF), mean time to repair (MTTR), availability, reliability, maintainability, and return on investment (ROI). You can use dashboards, reports, and analytics to visualize and analyze the preventive maintenance KPIs and identify gaps, trends, and opportunities for improvement.

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6 How to foster a preventive maintenance culture and leadership?

To foster a preventive maintenance culture and leadership, you need to create a shared vision and commitment among all the stakeholders involved in your asset management process, such as senior management, maintenance managers, technicians, operators, and customers. You can use various strategies and tools to promote a preventive maintenance culture and leadership, such as communication, training, empowerment, recognition, feedback, benchmarking, and continuous improvement. By creating a preventive maintenance culture and leadership, you can enhance the engagement, motivation, and collaboration of your asset management team and achieve better results.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you assess and optimize the life cycle cost of your assets through preventive maintenance?

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1 What is life cycle cost?

2 How does preventive maintenance affect life cycle cost?

3 How to assess the cost-effectiveness of preventive maintenance?

4 How to optimize the preventive maintenance schedule?

5 How to monitor and improve the preventive maintenance performance?

6 How to foster a preventive maintenance culture and leadership?

7 Here’s what else to consider

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