Did you know that 82% of companies have experienced at least one unplanned downtime outage over the past three years?* Was your company one of them? Either way – this is why a predictive maintenance program is no longer just a “nice-to-have” – it’s a necessity. Yet many reliability and operations managers face an uphill battle when trying to green-light these initiatives. If you’re struggling to get senior management on board with predictive maintenance, you’re not alone. Let’s explore how to build a compelling case that addresses common objections and demonstrates real value.
Understanding the Pushback
The hesitation often stems from several concerns. The big one? Fear of change. Then there’s the “if it ain’t broke, don’t fix it” mentality that still prevails in many organizations. This is particularly true for those with long-established reactive maintenance practices. Add to this the upfront costs, questions about ROI, and concerns about implementation, and it’s clear why many executives prefer to stick with traditional maintenance methods. But this approach is both risky and expensive.
The True Cost of Delaying Predictive Maintenance
Resistance to predictive maintenance implementation comes with hidden costs that typically exceed the investment. Consider these additional statistics from The Manufacturer:
- The average cost of downtime across industries is $260,000 per hour
- Unplanned downtime costs industrial manufacturers an estimated $50 billion annually
- More than two-thirds (70%) of companies know when their equipment is due for maintenance, upgrade or replacement
When equipment fails unexpectedly, the costs extend beyond just repairs. Production delays, rush delivery fees, overtime labor, and potentially lost customers all impact the bottom line. Moreover, emergency repairs typically cost 3-5 times more than planned maintenance. All of this is avoidable.
Building The Case
The key to winning management support is a clear, data-driven business case. Start by documenting your current maintenance costs, including:
- Emergency repair expenses
- Production downtime costs such as labor
- Regular maintenance labor and materials
- Energy costs related to inefficient equipment operation
Then, highlight how predictive maintenance can address these issues through:
- Early detection of potential failures, allowing for planned repairs
- Extended equipment life through proper maintenance timing
- Improved labor efficiency by eliminating unnecessary maintenance
Start Small, Dream Big
Rather than proposing a facility-wide implementation, consider suggesting a pilot program focused on your most critical equipment. This approach helps minimizes initial investment and risk while proving the concept. It also allows for learning and adjustment to be made, while creating reference points for broader implementation over time.
For example, start with monitoring your most critical pumps or motors where unplanned failure would cause significant production disruption. Document baseline metrics before implementation and track improvements in real-time.
Address Implementation Head-On
Proactively address common implementation concerns by outlining integration plans with existing systems, being mindful of data security. Be prepared to discuss training requirements and schedules. Have an implementation timeline ready. And don’t forget the big one: the numbers! Make sure you have good estimates around upfront and recurring fees as well as ROI. The ROI calculation should include equipment value, daily downtime cost, current annual maintenance cost and the fees for predictive maintenance.
A Competitive Edge
Finally, frame predictive maintenance as a strategic imperative rather than just a maintenance initiative. At a time when Industry 4.0 is rapidly transforming manufacturing, remaining competitive requires embracing digital transformation. Companies that fail to adapt risk falling behind more agile competitors who can operate with greater efficiency and reliability.
Go Get It!
Remember, your goal isn’t just to win approval – it’s to kick off a much-needed transformation that will deliver long-term value. By emphasizing the need and addressing concerns head-on, while presenting a clear implementation plan, you’ll be in good shape to win the support needed for this crucial investment.
*Source: Vanson Bourne Study