The Instantaneous Cost and Failure from Breakdowns is Huge. When a failure incident occurs, there is a consequential loss of profits and amassing of costs. The cost of failure includes lost profit, the cost of repair, fixed and variable operating costs wasted during the downtime, and a myriad of consequential costs that surge through the business. They are all paid for by the organisation and seen as poor financial performance. The costs of failure cannot be escaped and are counted in fortunes of lost profit per year. Total defect and failure true costs are not normally recognised by managers, yet they can send businesses bankrupt. In the instance of a failure, all its costs and losses are automatically incurred on the business. These costs can only be prevented by not having the failure in the first place. This article explains the ‘Instantaneous Cost of Failure’ (ICOF) and introduces a proactive technique, ‘Defect and Failure True Costing’, that helps companies recognise and prevent this tremendous waste of money.

To increase reliability, you need to decrease the chances of failure occurring. Each chance of failure creates risk. Operating risk can be mitigated and managed by meeting all 15 Precision Maintenance excellence targets.

This list of precision maintenance excellence targets is how to ensure component parts, and the equipment they are in, always operate with optimal reliability. Each requirement must be met to the highest standard. By doing this your equipment and machinery are operating with the least microstructure stress possible and getting utmost reliability.

Here is a great example from an industrial operation of a maintenance procedure using an Accuracy Controlled Enterprise (ACE) 3T standard operating procedure (SOP) format. To make it better would need photos and/or videos included for critical tasks. 3T stands for Target-Tolerance-Test, which are the minimum criteria needed to specify maintenance task quality and prove compliance. The 3T’s are a simple maintenance work quality assurance technique we invented to maximise the chance of doing outstandingly high-quality maintenance work that brings you outstanding plant and equipment reliability.

Enterprise Asset Management and Maintenance will Always be Spectacularly Unsuccessful at Delivering Failure-Free Equipment, Until you Change to an Equipment Wellness Paradigm

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The role of Maintenance is to eliminate operating equipment risks. Yet, organizations using Preventive and Predictive Maintenance strategies still have equipment breakdowns. They still have forced outages and stoppages. They consistently get emergency repairs. So, what makes today’s Maintenance paradigm so unsuccessful at equipment risk elimination? Because it is the wrong paradigm to use. The right mindset to have is an equipment wellness paradigm!

Is there a percent of replacement asset value benchmark for run and maintain capital expenditure?

Replacement asset value (RAV) is a performance indicator of expenditure related to the operation and care of the plant or equipment vs. CAPEX expenditure needed to replace the plant or equipment. Many people ask if there is a replacement asset value benchmark for the operating cost. 

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An Executive Report for CEO’s, Executives, and Senior managers in industry and manufacturing.

Utmost operating profits, lowest maintenance costs, world class reliability, & outstandingly effective physical asset management the Plant Wellness Way

Let a Plant Wellness Way EAM System-of-Reliability halve your Annual Maintenance Costs

In the Plant Wellness Way (PWW) you do nothing to your business until you have total confidence that what you do, and how it will be done, will be extraordinarily successful.