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How to correctly view the "Equipment Maintenance Fee"
(?). Chengdu Huabiao Enterprise Management Consulting Co. Chief Consultant? Jiang Liangjun?)
Title Note: This article looks at equipment maintenance costs from the perspective of equipment creating profits for the enterprise, maintenance costs from the perspective of production costs and manufacturing costs, and equipment maintenance costs from the perspective of equipment life cycle costs? , that reducing the time of production due to equipment problems affecting production, etc. is more important than reducing maintenance costs, equipment is to provide security for production, should be reduced maintenance costs into the pursuit of rationalization of maintenance costs is more important. All in order to reduce costs, should take into account the relationship between equipment security, maintenance costs and create profits, sometimes, a different way of thinking about the problem, a different perspective, reduce the total cost of production than the focus on reducing the cost of maintenance of equipment is more important to control maintenance costs is more important than reducing maintenance costs.
One, from the point of view of the equipment to create profits for the enterprise equipment maintenance costs
Two, from the cost of the equipment life cycle equipment maintenance costs
Three, the control of the main factors related to the cost of equipment management and recommendations
I am in the process of counseling the enterprise equipment management, I often hear such a statement, "The company now! The control requirements for equipment maintenance costs are decreasing year by year, making it a little difficult for us to carry out maintenance work. In this regard, I should be on the top of the enterprise how to correctly view the issue of equipment maintenance costs, to talk about my personal views, for reference only.
One, from the point of view of the equipment to create profits for the enterprise equipment maintenance costs
Everyone understands that the purpose of production is to create profits for the enterprise, the equipment is to provide protection for the production, in other words, the equipment is also to create profits for the enterprise. Enterprises as long as the production, equipment will wear, consumption, gradual aging, in order to make the equipment can continue to provide security for the production, maintenance and repair of equipment, lubrication, repair, etc., will need to incur costs. As long as the equipment is broken, the repair or repair, this is a rigid demand. In the manufacturing process, the maintenance of equipment and the costs incurred, usually divided into equipment broken and then repair (after the fact maintenance), equipment is not broken on the repair (preventive maintenance, state maintenance, etc.). The most current and differentiate between the two is, not broken to repair, is planned, will reduce the impact of equipment problems due to production downtime losses, while broken and then repair, for the main production line, its losses are usually larger and many times higher than the cost of maintenance, such as (Figure 1).
From the above figure, we can understand that reducing the factors affecting production due to equipment problems is more important than controlling the cost of maintenance, assuming that a piece of equipment before the failure of a component with the same cost of repair after the failure of the same, but pre-control and post control of the biggest difference is in the impact on production, while the cost of maintenance is secondary.
We all care about this question, so should maintenance costs be reduced? My answer is: "Maintenance costs should not be reduced, but should be continually pursued for rationalization."
What is "rationalization" is "the process of constantly adapting (adjusting) the unreasonable to the reasonable."
What is "reasonable" is what everyone agrees and recognizes as reasonable.
Our maintenance budget, usually in the past (year) maintenance costs based on statistical analysis, plus the budget annual plan for the cost of the need (including technical improvements, spare parts and equipment performance upgrades, etc.), the use of the use, we believe that the reasonable is reasonable maintenance costs, not to reduce or increase costs.
Everyone will ask again, "Can maintenance costs be reduced?" My answer is: "From the composition of maintenance costs to dig, to analyze, to find unreasonable countermeasures to improve, the cost is likely to be slightly reduced."
Therefore, equipment maintenance costs should not be reduced year by year, but should continue to pursue the rationalization is the right way of management.
A mining company friend Mr. Du and I QQ exchange said: "I have a problem has been confused! I am in the operation area to engage in zero failure management! I'm not sure how much I'm going to be able to get out of this, but I'm going to be able to get out of this, and I'm going to be able to get out of this.
Please take a look at the chart below and you will fully understand.
Mr. Du said, "Zero fault management! Increase equipment investment." The focus of his equipment management work is to "fix it if it's not broken" and to control it in advance, with the aim of providing better guarantees for production, which is the right thing to do. To provide these guarantees, he did the work, absolutely is to reduce the aftermath of the maintenance, but increased preventive maintenance, condition maintenance, and carried out targeted equipment improvement activities. These improvement activities, as long as they involve equipment spare parts, materials for equipment maintenance, lubricants, technical modifications, and so on, are basically charged to maintenance. From an accounting point of view, routine maintenance should be included in manufacturing costs, and major repair costs should be included in administrative expenses (long-term amortized expenses) or increase the value of fixed assets. For example, Article 13 of the Tax Law stipulates that major repairs need to meet two conditions to increase the value of fixed assets: 1, repair costs account for more than 50% of the value of the asset; 2, after the repair to increase the useful life of 2 years ago.
In order to make the equipment can better protect the production, to take prior control, the result of maintenance costs have three kinds of situation, that is, the maintenance costs down, maintenance costs flat, maintain the maintenance rise. We can not say that this maintenance costs rise is bad management, had to be reasonable. For example, in order to enhance the performance of equipment spare parts for the technological transformation, invested more maintenance costs, but the performance of the equipment has improved, fewer failures, therefore, can not say that a certain situation is good, suitable is good.
From here, we understand another truth, that is, equipment maintenance costs can not be used as a key indicator of the equipment department for the assessment, only as a reference indicator of equipment management. Therefore, the equipment maintenance costs as a key indicator of the equipment department, is not reasonable, should be amended as a reference indicator. And it is still more reasonable to use the time and efficiency of production affected by equipment failure or abnormality as the key index. Do you think it is right!
From what Mr. Du said above, he "engaged in zero failure management", which is a lot of costs are included in the maintenance costs, his annual maintenance costs can be reduced by one-fifth, is to do a lot of real work, it is worthy of praise.
We look at the following chart:
To keep the equipment in good functional condition, to maintain or improve the reliability of the equipment, and the capital investment in equipment and non-capital investment is directly proportional to the relationship. In other words, "To make a horse run, you have to put it on good grass." There are inputs (maintenance costs, etc.) before there are outputs.
You think about it, engage in zero-fault management, in the equipment did not break down before the need for repair or replacement of spare parts, which also counts in the maintenance costs, the most important thing is that you control in advance, so that the equipment can protect your production. Equipment is used to create a profit tool,
As long as the equipment is turned, the need for maintenance costs.
In order to keep the equipment in good functional condition, it is impractical to continuously reduce equipment maintenance costs. It's as if people have to eat to work, and maintenance costs are like the food they eat. Therefore, the senior leadership of the enterprise and the financial sector, should not be required to continue to diminish maintenance costs, but should be required to continue to pursue rationalization, reduce equipment failure, reduce the impact of the production of equipment problems, which is the correct understanding of equipment maintenance costs.
Of course, our goal is to reduce production costs, from the point of view of production costs and manufacturing costs, in addition to maintenance costs, we can think from the perspective of equipment management, pre-production cost control, labor cost control, site management, operations management, inventory management, elimination of waste, etc., for example, this piece of the manufacturing costs, there is a lot of digging space, such as: the enterprise's various production units (sub-factory, Workshop) for the organization and management of the production of production unit management personnel wages, employee benefits, transportation, labor protection, depreciation, repair, rental, material consumption, amortization of low-value consumables, production tooling, testing and inspection costs, seasonal and repair during the downtime losses, heating costs, water and electricity costs, office expenses, travel costs, transportation costs, insurance costs, technical and organizational measures, other Manufacturing costs. As long as these items in the existence of unreasonable, do not produce value-added, can be taken to improve the measures, the overall cost will be reduced, and sometimes change the angle of thinking, perhaps the results will be better.
Next, we are from the perspective of equipment life cycle costs, to see the factors that affect the cost of equipment maintenance and manufacturing costs, from another perspective to reduce costs.
Two, from the equipment life cycle cost of equipment maintenance costs
We first need to think, in terms of equipment management, the impact of equipment maintenance costs and manufacturing costs, what factors are involved? Usually, the main aspects are as follows:
1, ? Acquisition of equipment, equipment innate reliability, maintainability, supporting how. If the innate bad, behind the failure of the maintenance costs, spare parts costs, technical transformation costs will certainly increase.
2,? Equipment users. If the equipment users are not skilled in operating skills, due to improper operation damage to the equipment, will also increase the maintenance costs.
3,? Routine maintenance. The working environment of the equipment, the operating post and equipment professional post on the daily cleaning of the equipment, adjustments, maintenance and other work to implement the effect, if the environment is not good, maintenance is not in place, triggering failures will also increase maintenance costs.
4,? Spot check lubrication management. Did not do a good job of daily lubrication management equipment, poor lubrication will lead to failure will increase maintenance costs; did not do a good job of point inspection of the equipment, did not find equipment abnormalities or hidden failures, not only to increase the cost of maintenance, but also will bring the loss of downtime.
5,? Spare parts management. Purchase or processing of spare parts quality does not meet the requirements, shorten the replacement or use of spare parts cycle, will also increase maintenance costs.
6,? Equipment age. Equipment close to or has passed the depreciation life, or meet the end-of-life equipment, equipment body and most of the components in the (aging) wear and tear failure period, maintenance frequency is high, will also increase maintenance costs.
7, ? Equipment maintenance. Maintenance standardization is insufficient, maintenance personnel skills are insufficient, the level and price of outsourcing maintenance party, the multiple, high impact failure did not source governance, will also increase maintenance costs.
Three, control and equipment management costs related to the main factors and recommendations
1.? Acquisition of equipment stage. Pre-equipment aspects need to focus on:
a)? Need to ensure that those involved in the selection of equipment to be comprehensive, such as: equipment management, equipment use units, safety and environmental departments, energy departments, preferably to standardize the selection needs and assessment.
b)? On the price of equipment. Avoid low price to win the bid, usually, the equipment is a penny a penny, with a reasonable price to purchase the right equipment for themselves.
c)? Match with production needs. Equipment is not the most advanced, ultra-high-speed best, as long as it can meet the expected production requirements of the enterprise is good. Such as cigarette companies imported high-speed roll wrapping machine, high-speed machine is not as good as they expected, the domestic roll wrapping unit is also good.
d)? Random spare parts. For wear and tear spare parts, preferably in the new acquisition of equipment, you can consider negotiating the contract to agree to the appropriate amount of more purchases, because the subsequent purchase of another spare parts costs a lot more than when the new purchase.
e)? Equipment operation, maintenance and repair personnel training. In the new purchase of equipment, if it is not used in the new equipment, it is recommended that the contract should be agreed within the requirements of personnel training, which will bring a lot of benefits to the subsequent management of equipment.
2,? Equipment use. In the use of equipment need to focus on consideration:
a)? Stability of equipment operators. Skilled operators can avoid the maintenance caused by misuse. If the enterprise operator post staff mobility is too large, and then perfect operating procedures, inspection and maintenance standards are empty talk, therefore, if the enterprise does not address this aspect, want to reduce maintenance costs is a little difficult.
b)? Qualified on duty. For equipment users, should be trained and qualified to operate the equipment. Enterprises use unqualified training of new personnel is the biggest waste, will not utilize the experience and wisdom of the old staff, is also the biggest waste of the enterprise.
c)? Equipment environment. The environment directly affects the equipment, the environment will also affect people, when feasible, people can also change the environment. In particular, the environment of the dust, temperature, humidity, vibration, corrosive media, etc., the impact of the equipment is very large, therefore, the environmental factors affecting the equipment, where feasible, the need to govern and improve from the source. Here, not only to consider the impact of the external environment, but also need to consider the governance of the equipment itself to produce factors affecting the environment.
d)? Equipment maintenance. The focus is to carry out a good 6S work and according to the requirements of the equipment daily cleaning, adjustment, fastening and maintenance, so that the equipment from the outside to the inside to maintain its original color. This work seems simple, can do a good job of the enterprise is not much.
e)? Equipment environment, equipment maintenance, need to establish a mechanism, and improve the combination of activities, with the mechanism to promote the implementation.
3,? Equipment spot check lubrication management. Focus on the following aspects:
a)? Mechanism. That is, to promote the implementation of inspection and lubrication, to do the system process, the most important of which is the equipment management vertical, horizontal supervision and inspection and assessment mechanism, which is to promote the enterprise equipment management can do the key point, if the work is not done the other will be greatly reduced.
b)? Standards. Optimize and improve the inspection standards, lubrication standards and their records, high standards to strict requirements. Many companies do not lack standards, but the common **** problem is that the standard content is unreasonable, the design of the record sheet on the lack of guidance to the user, which requires the organization of business professionals to analyze and improve. Of course, you can also ask a professional equipment consultant guidance. What is a professional equipment consultant, that is, in the same industry reputation is very good practical consultant.
c)? Personnel skills. According to the standard on the division of labor, engaged in point of inspection lubrication personnel, the standard should be familiar with, and will check, lubrication equipment. This requires companies to identify the skills of personnel according to standards, training as needed to meet or exceed the skills required for the job. It is best to skill level and skill wages linked to this aspect of the work, the need for equipment management and human resources departments to collaborate well.
d)? Lubrication management. In the enterprises I have contacted, equipment lubrication management is generally weak. Of course, in the coaching process, some companies have improved a lot. Enterprise lubrication management is a common problem: inadequate lubrication facilities, lubrication equipment, lubrication standards are unreasonable, oil filtration, oil dust, lubrication equipment and parts of the clean, lubricating oil and equipment and lubrication parts of the visualization of the use of insufficient oil quality, rapid detection of the lack of most of the people engaged in lubrication, the lack of lubrication basics of the training. Enterprises can be based on their own current situation, targeted improvement. Of course, can learn from the mature method, the improvement will be better and faster.
4,? Spare parts management.
a)? Do not accept bad spare parts. Requirements for spare parts, should consider the quality and reliability of its spare parts, with poor quality spare parts losses will be greater. For critical and important spare parts, enterprises need to establish spare parts acceptance criteria to standardize spare parts.
b)? Spare parts storage management. We need to do a good job of protecting the spare parts in the warehouse and beside the machine to avoid rust, deformation, deterioration, etc.
c)?
c)? Spare parts quantity. Enterprise units responsible for the management of spare parts, it is recommended that through statistical analysis, the study of spare parts consumption patterns, which can make the number of spare parts continue to rationalize. From the spare parts reserve strategy, can be based on the equipment bathtub curve, in the equipment break-in period, occasional failure period, the number of spare parts can be based on statistical information to determine the number of; in the equipment loss failure period, the number of spare parts reserves should be minimized. At the same time, it is also necessary to take into account the problem of inapplicability of spare parts brought about by technical reform. In addition, the key and important spare parts between the sister companies, mutual reserve and mutual use, call each other is also a good way.
e)? Spare parts substitution, spare parts localization, spare parts performance upgrading and so on.
5.? Equipment age. Enterprises need to go through the statistics and assessment, if the old equipment is often maintenance, and accounted for the ratio of equipment costs are also relatively large, the scrapping on the scrapping, otherwise, several times the cumulative cost of maintenance can buy a new piece of equipment, so that the equipment is a big waste of money. For example: a mining flotation area of multiple motors was put into use in 1997, due to the production process many times upgraded, resulting in motor overload operation, the main motor failure is the over-temperature leading to burnout, an average of every 3 months failure 1 time, each time each motor repair costs in the 1,000 yuan or so, the purchase of a new motor is more than 3,000 yuan, the district equipment managers have also put forward to update the motor application, perhaps the company funding arrangements and other factors. The district's equipment manager also submitted a request to upgrade the motors, which was not approved by the parent company, perhaps due to factors such as the company's funding arrangements. From this actual case, we can see that the aging equipment and frequent failures and high maintenance costs, equipment renewal is very necessary. Of course, more than the life of the equipment is okay, maintenance costs are normal, but also can continue to use (except for special equipment). I see in the mining enterprises in 1956 imported electric forklift, maintenance is very good, functional performance to meet the production requirements, of course, continue to use.
6,? Equipment maintenance.
a)? Maintenance staff positioning and configuration.
i.? Maintenance personnel need to master the complexity of skills, is a highly technical job. Modern equipment, the operation is more and more simplified, but the maintenance is more and more complex, especially the higher degree of automation equipment. Therefore, the enterprise from the perspective of human resources, the need for maintenance personnel from the perspective of remuneration and benefits, so that the maintenance team is relatively stable, and more to avoid the use of temporary workers in the nature of the way as maintenance workers. People engaged in equipment are clear, to train a competent maintenance workers, their own efforts plus corporate training, at least 2-3 years; to become a maintenance expert, is the need for N failure analysis and maintenance of the hone, in order to become a unique maintenance workers.
ii. In enterprises without full-time inspection positions, usually mechanical, electrical and instrumentation maintenance personnel act as full-time inspectors, both to do full-time inspection, but also to do maintenance work. Therefore, for the kind of often busy fire-fighting to protect production, most of the time in the field maintenance units, really should be based on the need to supplement the professional maintenance staff. Many business leaders know that the configuration is not enough, but also not supplemented, which is mainly due to two aspects, one is the leadership of the equipment management of the lack of awareness and did not pay attention to the other side, is the leadership of the "heart and the right to not enough," the maintenance of the position is the parent company to say. In any case, in order to meet the needs of enterprise development, the declaration should be declared. b) Fire-fighting and prevention, failure and maintenance. Equipment maintenance, usually divided into two main categories, one is broken and then repaired (after-the-fact maintenance), the second is not broken to repair (predictive maintenance, state maintenance, preventive maintenance, horizontal improvement maintenance). To reduce unplanned maintenance (after-the-fact maintenance), increase planned maintenance (not bad on the repair), to do this is not difficult, as long as the typical, high-impact, frequent, recurring failures, true cause analysis, countermeasures to improve the source management, can be resolved. The analysis of equipment failure, the common way is to analyze the individual failure analysis, statistical perspective. Many companies have fault management, but not many companies really do a good job of fault management, we want to solve the problem at the source, someone needs to organize maintenance personnel to carry out good fault management work. Therefore, the maintenance staff must be properly configured, otherwise busy with on-site maintenance also have no time to do to improve and preventive work. We need to understand: the process of solving problems is to improve the process of reducing equipment failure is to reduce costs.
b)Maintenance staff skills. Enterprises need to identify the skill level of their maintenance staff according to the needs of their internal maintenance work, and take measures to train them according to their needs. There are many ways to do this, but the most applicable way is action learning - "learning by doing".
All of you have read the above, so that we better understand a truth, "production of a flower, all rely on the equipment to be in charge." No equipment for this tree, production will not flower fruit. Modernized production, the lack of equipment you can not do anything, equipment is the pillar of production, equipment is a tool for enterprises to create profits, is to protect the quality, safety and efficiency of the foundation, the tool is not good enough to make the need for maintenance, maintenance will have to spend money, it is undeniable.
Of course, running a business, reduce costs is the hard truth, save money is to make money, we have to maximize the value of the enterprise as the goal, the production cost control is not a one-sided emphasis on savings, but the continuous pursuit of rationalization process, is a long-term, systematic, continuous process, as long as the enterprise exists, there is no end.
c) fire-fighting and prevention, failure and maintenance. Equipment maintenance, usually divided into two main categories, one is broken and then repair (after-the-fact maintenance), the second is not broken to repair (predictive maintenance, state maintenance, preventive maintenance, horizontal improvement maintenance). To reduce unplanned maintenance (after-the-fact maintenance), increase planned maintenance (not bad on the repair), to do this is not difficult, as long as the typical, high-impact, frequent, recurring failures, true cause analysis, countermeasures to improve the source management, can be resolved. The analysis of equipment failure, the common way is to analyze the individual failure analysis, statistical perspective. Many companies have fault management, but not many companies really do a good job of fault management, we want to solve the problem at the source, someone needs to organize the maintenance staff to carry out good fault management work. Therefore, the maintenance staff must be properly configured, otherwise busy with on-site maintenance also have no time to do to improve and preventive work. We need to understand: the process of solving the problem is to improve the process of reducing equipment failure is to reduce costs.
d)? Maintenance staff skills. Enterprises need to identify the skill level of maintenance personnel according to the needs of internal maintenance work, and take measures to cultivate according to the needs. There are many ways to train, but the most applicable way is action learning - "learning by doing".
All of you have read the above, so that we better understand a truth, "production of a flower, all rely on the equipment to be in charge." No equipment for this tree, production will not flower fruit. Modernized production, the lack of equipment you can not do anything, equipment is the pillar of production, equipment is a tool for enterprises to create profits, is to protect the quality, safety and efficiency of the foundation, the tool is not good enough to make the need for maintenance, maintenance will have to spend money, it is undeniable.
Of course, running a business, reduce costs is the hard truth, save money is to make money, we have to maximize the value of the enterprise as the goal, production cost control is not a one-sided emphasis on savings, but the continuous pursuit of rationalization process, is a long-term, systematic, continuous process, as long as the business exists, there is no end.
Equipment maintenance costs, only part of the manufacturing costs, we in order to protect the production, and more importantly, from the perspective of manufacturing costs, from the perspective of the cost of the equipment life cycle to consider reducing costs, through a series of improvement activities, the irrational adaptation to the reasonable.
In a word, the requirement of equipment maintenance costs decreasing year by year is inappropriate, but also does not accord with the law of equipment management. Enterprise executives and financial management in the treatment of cutting equipment maintenance costs, it is best to think differently, from multiple perspectives to think about cost reduction and efficiency.
It is hoped that this article can give the top management and financial management personnel, equipment management personnel have reference and inspiration.
When you read the above, think my opinion how?