The starting point is differentiating the capabilities needed to fuel profitable growth (‘good costs’ targeted for investment) from low-performing business and inefficient operations (‘bad costs’ targeted for overhaul or elimination). the region Cost control is keeping costs within an acceptable level. More & more detailed steps will be added to ensure that the job is done just right. Eliminate, reduce or suspend items that will impact in weeks or months, not in years. cost-reduction–related changes for any of several reasons: Organizing a Cost-Reduction Program 5 • The idea was not theirs. • They did not think of the idea fi rst, and perhaps that is a source of embarrassment. Maintenance cost reduction strategies 1. Review all maintenance procedures & simplify them. Having a good Maintenance Strategy in place, can reduce downtime by more than 30%! You can change your ad preferences anytime. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. While slashing maintenance budgets might deliver savings in the short term, postponing maintenance will eventually undermine longer-term asset integrity, and give rise to reliability and HSE issues. If you continue browsing the site, you agree to the use of cookies on this website. Control of direct operational costs is critical to creating a high-performance business. You see two or three tradespeople doing work that requires only one, people hanging around the storeroom or leaving early, work being done that's of questionable value, and no one can … Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.  Reduce rate of breakdown – spares quality and correct use of It seeks to eliminate all unnecessary steps from a company’s the processes. This type of professional also balances supply related costs and cycle time for the lowest overall cost, at the best value, while seeking risk optimization rather than risk minimization strategies. Six Sigma provides a structured approach to solving problems through the implementation of five phases; Define, Measure, Analyse, Improve and Control (DMAIC). This is a highly concentrated presentation that addresses the differences among price, cost, and TCO; what cost reduction strategies to focus on; and an overview of various techniques, as well as when and where to use them. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. R&M and Power Costs analysis The mission of FEMP is to facilitate the Federal Government’s implementation of sound, cost- Nowadays, availability, reliability and safety in the production plants are more emphasized. We must examine the total cost of ownership to your organization, which means moving beyond the organizational environs to include suppliers, internal customers, other allied business functional entities, and external customers. You can change your ad preferences anytime. R&M and Power Costs analysis and Reduction Strategy Aim -23% reduction in overall R&M and Power Costs in the region How Reduce rate of breakdown – spares quality and correct use of the machine Use of quality spares at the right price –eliminate the middleman Accountability – machine ownership scheme (artisan + operator) Moving … See our User Agreement and Privacy Policy. Performance measured against long-term target standards. These strategies range from mere reaction to failures to highly evolved systems optimizing maintenance efforts for groups of assets. CATTAN Services Group, Inc. Assess your IT cost reduction options with these rules in mind. One of the advantages of virtualization over traditional infrastructure is the ability to …  Accountability – machine ownership scheme (artisan + operator) No. Figure 1 illustrates four maintenance strategies by level of sophistication. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Reducing Maintenance Costs is all about managing your maintenance strategy and planning more efficiently. Here are seven cost optimization techniques and success strategies to reduce IT infrastructure costs: 1. In building their business case to implement this cost controls system, the energy contractor conducted a study where they identified that nearly two thirds of their cost analyst's time was spent on “wasteful” activities (Exhibit 3). http://www.logisticsbureau.com Rob O'Byrne introduces his 5 key levers for Supply Chain cost reduction. Best Practices and Policies for Improving Total Cost of Ownership of your AWS... No public clipboards found for this slide, Cost Reduction Strategies:Focus and Techniques. If you continue browsing the site, you agree to the use of cookies on this website. Regrettably, that potential is still mostly untapped. Clipping is a handy way to collect important slides you want to go back to later. Cost Management Cost Management involves a systematic approach to cost reduction that involves an understanding of relevant cost drivers. 1. A typical purchasing, acquisition, procurement, contracting, or supply management professional will help reduce supplier prices and avoid incremental costs. These negotiation tactics will maximize your gains either by bringing down the cost or getting more features for the same price. The problem of under-maintaining assets is often addressed through loss … IT Cost Reduction Strategies: 6 Ways to Reduce Ongoing Costs. presented by In my experience, when reducing the number of licenses requiring maintenance, a number of the main software vendor’s initial response is that the costs actually increase because you’ve dropped down a price break point. QuickFMS shares 6 maintenance cost reduction strategies you must follow: # 1 Learn How to Care The first and foremost step that you should take is, teach and train your employees, workers and staff on how to operate and handle various machines and technical equipment, being used at your business facility. Looks like you’ve clipped this slide to already. 70% of the companies' lack awareness of which assets require maintenance which leads to unpredictable failures and costly downtime. Many procedures will have grown over time. Perfective Maint. Types of Maintenance Costs PROD MEST-3 Types of Maintenance Costs Deeeop eto et esovelopment of next Version CoCo ect o o ast e s orrection of last Version Appreciable because fI tA l i Hardly predictable CtiMit Maintenance Management of Impact Analysis Adaptive Maintenance Enhancive Maint. Software maintenance is usually a high cost affair, but the tips and strategies here will help you learn how to better negotiate software maintenance contracts. Considered as possible knee jerk or panic reactions. Reducing maintenance costs and downtime is often associated with decreasing safety or service, in fact, it's the other way around! There is a tendency of job instructions to grow over time! This idea was reported in a recent Forbes Insights survey which noted that “Three … Costs are organized by resources, activities, and cost objects. 1: Target immediate impact. Planning for Cost Reduction ... – A free PowerPoint PPT presentation (displayed as a Flash slide show) on PowerShow.com - id: 15ffc2-MDNlY • The idea will involve effort on their part. If your business facility is burdened with high maintenance and repair costs, implement these simple strategies: Simplify procedures: Review maintenance and operational procedures for redundancies or unnecessary tasks that can be replaced with newer practices or more efficient equipment. For many organizations, senior C-Level executives set forth annual purchasing, acquisition, procurement, contracting, and supply management goals that mandate cost reductions. By working both internally and externally with these stakeholders, cost reduction opportunities will become visible. Featured Solutions to Reduce Maintenance Costs. Don’t confuse price with cost As the saying goes, “you get what you pay for”. See our User Agreement and Privacy Policy.  How the machine © 2009 CATTAN Services Group, Inc. A good purchasing, acquisition, procurement, contracting, or supply management professional will reduce costs by lowering both costs of acquisition and risks of supply. No public clipboards found for this slide, Maintenance Costs Reduction Strategy Presentation, Assistant Manager at Reliance Power (Sasan-UMPP). The rise of the Inspire Telecommuting. Virtualization. REDUCING THE COST OF PREVENTIVE MAINTENANCE Deryk Anderson Business Analyst - Maintenance Oniqua Enterprise Analytics deryk.anderson@oniqua.com T: +61 7 3859 9523 SUMMARY: Lean Manufacturing and Lean Maintenance target the identification and elimination of waste through continuous improvement. The key priority in strategic cost reduction is targeting resources where they can earn the best return, rather than just cutting costs in itself. 1 In the first year of addressing this issue, a chemical destruction company saved $10,990,986 in avoided maintenance costs after GP Strategies’ Planned Maintenance Program Analysis. Maintenance Strategies on an Industrial Scale Depending on assets, costs and technical sophistication, a broad spectrum of maintenance strategies can be applied. For thousands of business owners, telecommuting has marvelous cost-cutting potential. Reliability Centered Maintenance Cost Reduction and Planned Maintenance Optimization As much as 43% of unplanned downtime is caused by equipment failure. See our Privacy Policy and User Agreement for details. Virtualization is one of the methods that can help you achieve significant cost savings. Looks like you’ve clipped this slide to already. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. REDUCING COSTS. If you continue browsing the site, you agree to the use of cookies on this website. Examples include expenses that are incurred and paid monthly or quarterly on a “pay as you go” basis, rather than annually. Spare Parts Analysis. Reductions achieved by eliminating unused capacity, nonvalue-added activities, and reducing activity cycle times. Regardless of the cost savings, avoidances, or containments achieved previously, you are faced with new cost reduction initiatives and objectives.  Aim -23% reduction in overall R&M and Power Costs in You may no longer need some steps. Focus and Techniques President and CEO workshop labour from 34 to 23 and sawmill R&M from 43 to 25 It is important to realise that CBM as a maintenance strategy does not reduce the likelihood of a failure occurring through life-renewal, but instead is aimed at intervening before the failure occurs, on the premise that this is more economical and should have less of an impact on availability. As a maintenance manager or plant manager, you know there's something wrong with maintenance. 7. College Station, TX Today, purchasing, acquisition, procurement, contracting, and supply management professionals must be the most progressive cost reduction oriented group in the company. Downtime is incredibly costly for any company which has assets. These cost reduction strategies serve better during one-off projects and non-core activities. Forbes eBook: 5 steps for managing cloud costs In an earlier post, I looked at the simple but powerful idea that there is an inverse relationship between IT maintenance and management costs (M&M) and an organization’s competitiveness. We Will Not Bow (Selected Scriptures) - Duration: 56:23. 13 STRATEGIES TO REDUCE THE OPERATING COST OF YOUR G.E.T. Reducing Maintenance Costs in a Sustainable Way with Remco Jonker - Duration: 1:01:58. eMaint 953 views. This is a highly concentrated presentation that addresses the differences among price, cost, and TCO; what cost reduction strategies to focus on; and an overview of various techniques, as well as when and where to use them. Safety first! According to Vanson Bourne research, Average downtime costs 240.000 US dollars per hour according to decision makers in Field service and Service management. Now customize the name of a clipboard to store your clips. We have undertaken extensive operational cost-reduction engagements delivering auditable bottom-line savings for our clients. Maintenance has during a long period of time mostly been associated with costs and stoppages and has, of this reason, acquired a connotation of being something necessary evil. NAPM-Wichita Better spares or newer procedures may now be available.  Key skills retention and training schemes –toolbox scheme. 1. 1.  Use of quality spares at the right price –eliminate the middleman for Maintenance Costs Reduction Strategy Presentation 1. Here is List of Inventory Reduction Strategies you can Try to Improve Inventory Turns 1. and Reduction Strategy Cost Reduction Strategies: See our Privacy Policy and User Agreement for details. Availability & Capacity Assessment. This Operations and Maintenance (O&M) Best Practices Guide was developed under the direction of the U.S. Department of Energy’s Federal Energy Management Program (FEMP). Measuring Downtime as a KPI, can help Maintenance Department t… Below you will find 8 suggestions on how to improve your maintenance strategy and reduce overall costs! To make the goal of cost reduction a reality, we cannot focus solely on the price. Now customize the name of a clipboard to store your clips. Thomas L. Tanel, C.P.M., CTL, CCA Clipping is a handy way to collect important slides you want to go back to later. Strategies to Reduce Maintenance Costs Don Armstrong, Veleda Services. Faced with excruciating competitive pressures, many senior C-Level executives require maximum effort from every part of their organization to survive. • The idea has implementation and operational risks.  Moving towards Total Productive Maintenance –reduced Reduce Total Supply Chain Lead Times A reduction in total supply chain lead-time will lead to products / materials not being held in stock for a long time. 10 rules for rapid IT cost reduction. 1:01:58 . Cost Reduction of a product through Value Analysis & Value Engineering, Cost Reduction: Inventively Reducing the Cost of the Bill of Materials, COST CONTROL & COST REDUCTION (Management Accounting). A great purchasing, acquisition, procurement, contracting, or supply management professional will reduce total costs across the board, increase service levels to the internal customer, make a significant contribution to the bottom line, seek value-added opportunities, and help to delight the organization’s customer. To reduce lead-time the throughput, … Ground engaging tools (G.E.T) 2 To improve your overall profitability and your ability to compete, we provide 13 strategies to optimize G.E.T. @ 06/2012 If you spend any time reading about industry trends, you’ll know that predictive maintenance is getting more popular every day. Asset Strategy Management. Both a reduction in supplier lead-time and manufacturing lead-time will contribute to inventory reduction. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Facilities maintenance, for example, often falls victim to short-term cost reductions. This process is merely replacing physical hardware with their virtual counterparts. 1. If you continue browsing the site, you agree to the use of cookies on this website. management. Here's a situation that's not uncommon. Downtime cost and Reduction analysis: Survey results Master Thesis Work, Innovative Production, IDT KPP231 Mohamad Tabikh Commissioned by: Mälardalen University Supervisor: Dr. Antti Salonen Examiner: Dr. Antti Salonen . cost reduction. , procurement, contracting, or Supply management professional will help reduce supplier prices and avoid incremental costs found... Inventory Turns 1 ’ ll know that predictive maintenance is getting more popular every day to go back later! Eliminate all unnecessary steps from a company ’ s the processes reduction in lead-time! Safety in the production plants are more emphasized collect important slides you want to go back to later systematic to. Strategy in place, can reduce downtime by more than 30 % part! 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