Streamlining Maintenance Costs: How KAIZEN? Principles Drive Efficiency and Empower Teams

In 2022, maintenance costs increased by 16.4% compared to 2021, reaching IDR 20.67 billion. By April 2023, the year-to-date costs were projected to grow by 7.7%, with 63% of the spending concentrated in Halma. The company aimed to reduce costs by 15% from the 2022 annual total to a target of IDR 17.57 billion.?

Analysis revealed key insights:?

1. High Variance in PM Frequency: 75% of vehicles in the Built-Up category deviated significantly from the average PM range.?
2. Inadequate Root Cause Analysis for CM: With RCAs primarily conducted by managers since late 2022, many corrective actions lacked comprehensive follow-through.?
3. Inefficiencies in Supervisor Training: Maintenance teams, including supervisors and technicians, lacked problem-solving skills to address recurring CM issues.?

KAIZEN? in Action: A Systematic Approach to Streamline Maintenance?

Step 1: Identifying Root Causes?

Using the Ishikawa diagram and 5 Whys analysis, the project team identified the following contributors to the rising costs:?

• Procedural Gaps: Inconsistent PM scheduling, especially for high-usage vehicles.?

• Policy Shortcomings: Absence of detailed standards for vehicles based on age and mileage.?

• Training Deficiencies: Supervisors were not equipped with RCA capabilities.?

Step 2: Implementing Countermeasures?

The project introduced several measures to address these gaps:?

1. Standardized PM Schedules: Developed guidelines for PM frequencies tailored to vehicle age and mileage.?
2. Enhanced RCA Processes: Expanded RCA training to supervisors to ensure thorough investigation of recurring CM issues.?
3. Performance Monitoring Tools: Implemented digital dashboards to track adherence to PM schedules and RCA outcomes.?

Step 3: Quick Wins and Long-Term Solutions?

• Quick Wins: Adjusting PM schedules reduced unnecessary maintenance downtime, while RCA training improved CM resolutions within weeks.?

• Long-Term Solutions: Digitizing maintenance workflows and introducing an automated notification system for overdue PMs ensured sustained efficiency.?

Measuring Success: Cost Reduction and Improved Efficiency?

Post-implementation, the following results were observed:?

1. Cost Reduction: Maintenance costs in Halma decreased by 10%, achieving a monthly average of IDR 6.0 million per vehicle—a 5% improvement compared to baseline.?
2. Efficiency Gains: The average PM adherence rate increased from 60% to 85%.?
3. Team Empowerment: Supervisors demonstrated improved problem-solving skills, reducing RCA delays by 50%.?

Key Takeaways for Continuous Improvement?

This project highlights the importance of addressing procedural, policy, and training gaps in achieving cost optimization. By employing KAIZEN? principles, the company streamlined its maintenance processes, reduced costs, and empowered its workforce.?

Ready to streamline your operations and cut costs? Partner with KAIZEN? Institute Singapore for a tailored roadmap to efficiency and success. Unlock measurable results like reduced maintenance costs and improved team performance. Contact Kaizen Institute Singapore today to transform your operations!?

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