What are the main factors that affect the cost-benefit analysis of preventive maintenance?

1 PM frequency

One of the key factors that affects the cost-benefit analysis of PM is how often you perform it. PM frequency depends on several factors, such as the type, age, condition, usage, and criticality of the equipment or system, as well as the manufacturer's recommendations, industry standards, and regulatory requirements. Generally, the more frequent the PM, the higher the costs, but also the lower the risks of failure and the higher the benefits. However, there is a point of diminishing returns, where the costs of PM outweigh the benefits. Therefore, you need to find the optimal PM frequency that balances the costs and benefits for your specific equipment or system.

3 PM effectiveness

A third factor that affects the cost-benefit analysis of PM is the effectiveness or outcome of the tasks performed. PM effectiveness measures how well the PM tasks prevent or reduce the occurrence and severity of failures, defects, or breakdowns. PM effectiveness also depends on the factors mentioned above, as well as the accuracy, completeness, and timeliness of the PM tasks. Generally, the higher the PM effectiveness, the higher the benefits, as you can avoid or minimize the costs of corrective maintenance, lost production, customer dissatisfaction, and safety hazards. However, PM effectiveness is not always easy to measure or quantify, as some failures or defects may not be detected or prevented by PM, or may occur due to external factors. Therefore, you need to monitor and evaluate the PM effectiveness regularly and adjust your PM frequency and scope accordingly.

4 PM alternatives

A fourth factor that affects the cost-benefit analysis of PM is the availability and feasibility of alternative maintenance strategies. PM alternatives can include corrective maintenance, which is reactive and involves repairing or replacing equipment or systems after they fail or malfunction; predictive maintenance, which is proactive and involves monitoring and analyzing the condition and performance of equipment or systems using sensors, data, and algorithms; and reliability-centered maintenance, which is systematic and involves identifying and prioritizing the most critical and failure-prone equipment or systems and applying the most suitable maintenance strategy for each. Generally, the more options you have for maintaining your equipment or systems, the more flexible and cost-effective you can be. However, each maintenance strategy has its own advantages and disadvantages, and may not be applicable or compatible with your equipment or systems. Therefore, you need to compare and contrast the costs and benefits of different maintenance strategies and choose the best one for your situation.

6 PM tools

A sixth factor that affects the cost-benefit analysis of PM is the availability and suitability of the tools that can help you plan, execute, and improve your maintenance process. PM tools can include software, hardware, documents, and methods that can assist you with various aspects of maintenance, such as scheduling, tracking, reporting, analyzing, optimizing, and auditing. Generally, the more tools you have, the more efficient and effective your maintenance process can be. However, each tool also has its own costs, benefits, limitations, and compatibility issues, and may not be suitable or available for your equipment or systems. Therefore, you need to select and use the tools that can best fit your maintenance needs and objectives, and that can integrate well with your existing systems and processes.

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?