WHAT RECOVERY' REVISITING TOTAL COST OF OWNERSHIP

Just as like poles on two magnets naturally repel one another, we encounter a similar "force field" when we try to balance what appear to be conflicting objectives of appropriate machine tool maintenance and reducing costs.

As manufacturing managers in a tough economy, we are tasked with getting the most mileage out of our equipment investment, running machines longer and harder in our quest for maximum run time, productivity and return. Unfortunately, we often run into an "equal and opposite" force pushing back in the form of increased maintenance costs, required to support ever-higher productivity goals. Have we reached the point of diminishing return? It depends on how we approach the problem.

Approached conventionally, it seems increased machine run times are directly correlated to higher maintenance costs and little can be done to change it. On the other hand, approaching the problem another way will yield low hanging fruit.

Given the manufacturer's need to focus finite resources on increased production and not on increased maintenance, an obvious alternative is to lateral that responsibility to a third party ? in most cases, to the machine tool OEM. This approach can yield significant value to the manufacturer. With a service provider handling the full scope of maintenance, internal personnel can be reassigned to production. In addition, significant cost reductions can be achieved through the transfer of direct labor costs, as well as the discounted rates and repair parts that are typically part of a service agreement.

These cost savings are worth thousands of dollars. However, there is another unexpected benefit with a measurable impact ? increased uptime. Proactive, responsive service by experts uniquely familiar with the machines reduces breakdown frequency, shortens repair cycle times and increases the availability of process-capable equipment.

Lockheed Martin (Bethesda, MD) is a perfect example of a manufacturer opting for proactive maintenance and cost reduction through outsourcing. Last year it awarded us a contract to provide service to its 23 manufacturing facilities around the world. We provides them with single-source preventive maintenance, field service, training, parts, machine rebuilding and complete system relocation, allowing them to focus on their manufacturing core competencies.

It may sound too good to be true, generating all these benefits at a significantly reduced cost. In actuality, the benefits are simply the byproduct of improved operational focus by reassigning responsibility for equipment maintenance to the logical experts.

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Bill Horwarth is the president of MAG Maintenance Technologies, 1780 Worldwide Boulevard, Hebron, KY 41048, 859-534-4600, Fax: 859-534-4999, www.maint-tech.com.