If your organization calculates return on fixed assets, you should be aware of the impact maintenance has on that indicator. The investment a company makes in its assets often is measured against the profits the company generates. This measure is called return on fixed assets (ROFA). This indicator is often used in strategic planning when a company picks what facility to occupy or the plant in which to produce a product. Asset management focuses on achieving the lowest total life-cycle cost to produce a product or provide a service. The goal is to have a higher ROFA than your competitor, so as to be the low-cost producer of a product or service. A company in this position attracts customers and ensures greater market share. Also, a higher ROFA will attract investors to a company, ensuring a sound financial base on which to build further business.
Preventing human error will exist in at least two areas. The first to be considered is operations. If a piece of equipment is observed to be mis-operated, what really is the cause of the mis-operation?
"For the longest time GIS and SAP EAM were continents all onto themselves. Each contained many little countries but nobody from one continent would talk to anybody from the other, except for the occasional letter from an aunt. This is analogous to the way enterprise applications work in many organizations. While they are often viewed in a similar way...
Design weaknesses can be improved in the equipment by strengthening the various parts to extend component life. This may take the form of some type of wear resistance, where a material is changed in a high wear area to a material that has a higher wear rating than the components around it.
The choice is there – so let’s choose carefully. In my last blog, I discussed how to find the $100K per year job. This blog is going to continue that theme with some additional references and successes from individuals that are working towards the $100K job.
In previous blogs, I have discussed the cost of inefficient maintenance practices and the impact they have on a company’s expenses. In this blog, the focus will change from maintenance costs to what I refer to as “The Impact Cost of Reliability and Maintenance”.
Maintenance is not Asset Management – Or is it? - Conclusion In the previous blog (Part 3 of this series) the design phase of an asset’s life cycle was discussed. In this blog, we will [...]
Maintenance is not Asset Management – Or is it? (Part III) The last blog (Part II) finished with the need to understand the relationship between maintenance and asset management. To achieve a clear understanding, it [...]
Maintenance is not Asset Management – Or is It? (Part II) As my last blog finished, we were going to consider areas of asset management that are outside the control of the maintenance organization. There [...]
Where the Jobs are – The “New” Blue Collar - Terry Wireman Blog Series In the USAToday (9/30/2015) there was an article with the above title that focused on the millions of new, high-paying jobs [...]