Faced with excruciating competitive pressures, many senior C-Level executives require maximum effort from every part of their organization to survive. 7. 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. Facilities maintenance, for example, often falls victim to short-term cost reductions. Perfective Maint. 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. Spare Parts Analysis. There is a tendency of job instructions to grow over time! Control of direct operational costs is critical to creating a high-performance business. and Reduction Strategy More & more detailed steps will be added to ensure that the job is done just right. • The idea will involve effort on their part. A typical purchasing, acquisition, procurement, contracting, or supply management professional will help reduce supplier prices and avoid incremental costs. To make the goal of cost reduction a reality, we cannot focus solely on the price. If you continue browsing the site, you agree to the use of cookies on this website. the region No public clipboards found for this slide, Maintenance Costs Reduction Strategy Presentation, Assistant Manager at Reliance Power (Sasan-UMPP).  Key skills retention and training schemes –toolbox scheme. Examples include expenses that are incurred and paid monthly or quarterly on a “pay as you go” basis, rather than annually. 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. By working both internally and externally with these stakeholders, cost reduction opportunities will become visible. 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). presented by Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. See our Privacy Policy and User Agreement for details. Cost control is keeping costs within an acceptable level. 1. To reduce lead-time the throughput, … 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. Performance measured against long-term target standards. Here are seven cost optimization techniques and success strategies to reduce IT infrastructure costs: 1. We Will Not Bow (Selected Scriptures) - Duration: 56:23. Regrettably, that potential is still mostly untapped. Asset Strategy Management. Six Sigma provides a structured approach to solving problems through the implementation of five phases; Define, Measure, Analyse, Improve and Control (DMAIC). Thomas L. Tanel, C.P.M., CTL, CCA 10 rules for rapid IT cost reduction.  Moving towards Total Productive Maintenance –reduced Now customize the name of a clipboard to store your clips. 1. Eliminate, reduce or suspend items that will impact in weeks or months, not in years. Clipping is a handy way to collect important slides you want to go back to later. Having a good Maintenance Strategy in place, can reduce downtime by more than 30%! President and CEO No. for 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 … Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Both a reduction in supplier lead-time and manufacturing lead-time will contribute to inventory reduction. Figure 1 illustrates four maintenance strategies by level of sophistication. cost reduction. Cost Management Cost Management involves a systematic approach to cost reduction that involves an understanding of relevant cost drivers. Assess your IT cost reduction options with these rules in mind. The key priority in strategic cost reduction is targeting resources where they can earn the best return, rather than just cutting costs in itself. Reducing maintenance costs and downtime is often associated with decreasing safety or service, in fact, it's the other way around! Now customize the name of a clipboard to store your clips. Planning for Cost Reduction ... – A free PowerPoint PPT presentation (displayed as a Flash slide show) on PowerShow.com - id: 15ffc2-MDNlY  Aim -23% reduction in overall R&M and Power Costs in  Accountability – machine ownership scheme (artisan + operator) 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. These negotiation tactics will maximize your gains either by bringing down the cost or getting more features for the same price. A good purchasing, acquisition, procurement, contracting, or supply management professional will reduce costs by lowering both costs of acquisition and risks of supply. 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. © 2009 CATTAN Services Group, Inc. Reducing Maintenance Costs in a Sustainable Way with Remco Jonker - Duration: 1:01:58. eMaint 953 views. 1. You can change your ad preferences anytime. http://www.logisticsbureau.com Rob O'Byrne introduces his 5 key levers for Supply Chain cost reduction. One of the advantages of virtualization over traditional infrastructure is the ability to … For many organizations, senior C-Level executives set forth annual purchasing, acquisition, procurement, contracting, and supply management goals that mandate cost reductions. Maintenance Strategies on an Industrial Scale Depending on assets, costs and technical sophistication, a broad spectrum of maintenance strategies can be applied. 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. Reductions achieved by eliminating unused capacity, nonvalue-added activities, and reducing activity cycle times. The mission of FEMP is to facilitate the Federal Government’s implementation of sound, cost- These strategies range from mere reaction to failures to highly evolved systems optimizing maintenance efforts for groups of assets. 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. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Regardless of the cost savings, avoidances, or containments achieved previously, you are faced with new cost reduction initiatives and objectives. 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). 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. 1. Don’t confuse price with cost As the saying goes, “you get what you pay for”. Maintenance Costs Reduction Strategy Presentation 1. These cost reduction strategies serve better during one-off projects and non-core activities. Availability & Capacity Assessment. You can change your ad preferences anytime. Many procedures will have grown over time. 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 … College Station, TX 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.  Reduce rate of breakdown – spares quality and correct use of Here's a situation that's not uncommon. @ 06/2012 Featured Solutions to Reduce Maintenance Costs. the machine Below you will find 8 suggestions on how to improve your maintenance strategy and reduce overall costs! See our User Agreement and Privacy Policy. This process is merely replacing physical hardware with their virtual counterparts. According to Vanson Bourne research, Average downtime costs 240.000 US dollars per hour according to decision makers in Field service and Service management. If you continue browsing the site, you agree to the use of cookies on this website. If you continue browsing the site, you agree to the use of cookies on this website. REDUCING COSTS. R&M and Power Costs analysis Virtualization is one of the methods that can help you achieve significant cost savings. Costs are organized by resources, activities, and cost objects. 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. See our Privacy Policy and User Agreement for details. As a maintenance manager or plant manager, you know there's something wrong with maintenance. 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). 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. 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. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Cost Reduction Strategies: Here is List of Inventory Reduction Strategies you can Try to Improve Inventory Turns 1. Downtime is incredibly costly for any company which has assets. CATTAN Services Group, Inc. Today, purchasing, acquisition, procurement, contracting, and supply management professionals must be the most progressive cost reduction oriented group in the company. Inspire Telecommuting. 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. Better spares or newer procedures may now be available. It seeks to eliminate all unnecessary steps from a company’s the processes. 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. 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 . Nowadays, availability, reliability and safety in the production plants are more emphasized. This idea was reported in a recent Forbes Insights survey which noted that “Three … Clipping is a handy way to collect important slides you want to go back to later. 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. 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. Considered as possible knee jerk or panic reactions. If you continue browsing the site, you agree to the use of cookies on this website. 70% of the companies' lack awareness of which assets require maintenance which leads to unpredictable failures and costly downtime.

maintenance cost reduction strategies ppt

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