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Cost vs. Effectiveness
in Maintenance

Not always buying Cheap means Savings or
High Cost is Guarantee of Success

Traducir al Español

There is always some room for misinterpretation. In order to perform World Class Maintenance there is no need to waste your money. It is a fact: a good Maintenance Plan should consider not only the upkeep of the equipment at top shape – (better than new), but also assure we achieve that at the lowest possible cost.

Worldwide Economy Situation

Especially under the current conditions, everywhere in the World, this is a common logic trend: “Maximum results at Minimum Cost” it is our guideline. At every step, whatever our responsibility in the plant, we should always be asking: Can we achieve this good result or even better and at the same time do it at a lower cost?

Cost-Effectiveness is a part of the Lean Philosophy

Every Maintenance Professional must keep this in mind for every action and decision. There can be some misunderstandings though… a few years ago I was implementing TPM in a small heavy press (1,000 Tons). Discussing with a technician about the fluid leaks that were evident, he said the seals had just been changed a few days before. We took apart one of the valves and discovered that the seals were being literally dissolved by the fluid. He showed me his requisition requiring “Polyurethane seals” that were the appropriate for that use. The supplier told us that the purchase order was changed by the purchasing agent “To save up to xx%” in the price.

Cheaper not always means Savings

This situation repeats itself over and over every single day everywhere in America and the World.  As a result, a component that should last for months or years fails in just days or hours of operation. It made me recall the bargain-dirt-cheap tires I found in a swap-meet that almost caused me a terrible accident. I was driving downhill on the Mexico-Puebla freeway when the entire retread came off to the inside and severed the brakes’ hose.

An old saying “buy cheap-get cheap” came to mind. After that I have avoided the retreads for the following 2’000,000 plus miles that I have driven since. Of course this has to be an informed decision. Not always high price is directly proportional in terms of quality. We need to have the knowledge to make that kind of decision. The information is usually available in cases like this, from our suppliers. The oil supplier will give us the specifications for the seals, then our purchasing or procurement team needs to get the facts clear. That is why in TPM implementations I frequently encourage the participation of administrative associates. It helps big time in their education and the support they can give us.

The Other Side...

There is also the risk of falling into the false assumption that good quality or optimal results come from high cost. We have seen many cases of “over-spending” that did not represent any advantages. When we compare results, not always the best results are achieved by those who paid the highest price. This is particularly true in terms of Training and Consulting. One critical thing to avoid in these cases is the “Publicity and Apparatus” behind a consulting firm or an Implementation Process.

Focus on the results.

You probably have seen doctors and attorney’s offices show in their lobby diplomas and titles earned by the professionals who work there. Some may even show trophies and other awards. After so many years (more than 30) in this profession, I have learned that anyone can buy any kind of award and not always that award is reflected in the real-world results of the individuals or the organizations.

Certification...

The only parameters that are taken into account and attested by our certificates when we “Certify” companies or individuals are their Results. Serious honest consultants don’t want their customers to accumulate “Awards” trophies or papers, what they do accumulate though, are: knowledge, experience, and a solid culture of Continuous Improvement. They also get money in the bank as a result.

Don't take this wrong. Many companies who achieve or buy those "Awards" are very successful. Their success is the result of their dedication and Leadership. Organizations like JIPM and a few others, usually do a great job implementing TPM and developing those positive attitudes.

Many others which did not buy any awards but have the right knowledge, practice, leadership, and dedication are also just as successful, but at a much lower cost.

Also we recommend that you read...

JIPM Awards Not Endorsed by TPMonLine

 

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This page last updated on

20 May, 2010 20:11

 

 

 

 

 

 

 

 

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