Without work order management system software, organizations are left to use paper, spreadsheets, custom databases, one’s memory, or other methods which make calculating Asset Cost difficult if not next to impossible.
Since all work order management system software is NOT created equally, this article assumes the following about work order management system software:
1. It’s powerful, yet easy to use.
2. It’s been properly implemented, processes have been properly defined, users have been properly trained (on the processes inside and outside of the software), and it is properly supported.
3. Reports are easy to generate, email, customize, and automate.
Asset Cost is defined as an asset's total maintenance cost (parts, materials, labor, and services) over time.
When Asset Costs are tracked, reports can be generated to let you know where to focus attention. For example, run a report to identify the top 5 or 10 assets with the highest Asset Cost. Or, set up an alert to receive immediate notification once an Asset’s Cost hits 50%, 75%, 80%, or 100% of its budget.
Once high-cost assets have been identified, do the following to minimize Asset Cost and increase asset reliability:
*The following are typical FMEA and RCFA results and are used to minimize Asset Cost and increase asset reliability:
Asset Cost also provides continuous improvement support by validating improvement (when costs decrease or remain constant) and present windows of opportunity (when costs increase).
An indicator of when to replace an asset is when Asset Cost creates an attractive return on investment (ROI) while justifying replacement cost. However, according to Nyman and Mountjoy (2022), “More and better-directed reliability efforts may well yield full design capacity, making additional capital investment unnecessary” (p. xxvii). Many times, it is more expensive to fix the same problem repeatedly (which increases Asset Cost) instead of analyzing the problem to minimize or eliminate it. Before replacing an asset based on asset and replacement costs, verify that the fixes haven’t sabotaged the asset’s opportunity for increased reliability.
If you seek work order management system software or if your current system lacks the features listed in this article, contact us today to learn about MVP CMMS. Or, contact us today to start (or accelerate) your Maintenance, Operations, & Reliability Excellence! (MORE!) journey with the help of our reliability engineering team led by Bill Mountjoy himself!