The impact of under maintaining something is obvious and typically catastrophic – failure of the item and costly repairs or replacement. Conversely, the cost of over-maintaining something is less obvious but generally includes waste and increased costs.

According to Greg Folts, director of operations for the Marshall Institute, Raleigh, NC, maintenance operations may be wasting up to 25 percent of available labor. Some manufacturing plants find that up to 60 percent of wasted maintenance labor results from activities that add no value to the output factors or overall performance measurements of the plant. Another study estimates that 30-40% of maintenance costs are spent on items with a negligible failure impact with 80% of preventative maintenance costs associated with activities performed on a frequency of 30 days or less.

As owners of commercial real estate struggle with reducing operating costs the practice of lean maintenance must be considered. So what is Lean Maintenance?

First it is a process and not an immediate destination. The concept is based on continuous refinement of practices, policies and procedures and takes its cue from lean manufacturing processes.

The second key component is that it is based on reliability centered maintenance (commonly known as RCM). This is maintenance performed based on the impact on the item’s reliability and the impact on the operation should the item fail. To illustrate these two, let’s consider an item that has no to minimal impact on the property’s operation should it fail. It would be unwise to give it the same maintenance protocol as a critical item. Likewise, consider an item with a lifecycle that won’t be materially enhanced with a lot of preventative maintenance. While both of these items deserve some preventative maintenance they do not need the same extent of preventative maintenance as other, more critical items.

The third key area of lean maintenance is to understand that it is more than just the actual physical maintenance of the item. It also embodies carrying excess parts inventory, ineffective maintenance routines and time lost in finding tools, documentation, etc.

Less Frequent Maintenance Routines

The initial reaction when companies introduce lean maintenance to their buildings is to simply extend the frequency cycle. A 30 day interval becomes 45 days or a 6 month period becomes 9 months. The problem with this approach is that it is left more to intuition than science and this can actually result in unintended failure due to a lack or improper maintenance.

The correct approach is to look at the function of each item and the potential cascade of issues if maintenance was not done correctly, or in a timely manner.

For example, replacing an air filter on an HVAC unit allows the motor to breath properly which in turns makes its operation more efficient. Not replacing the filter on a timely basis causes the motor to heat up and potentially suffer an early failure. Therefore, this is a more important task done at a greater frequency than, say, inspecting and cleaning gutters and rain leaders. Note that we aren’t saying that gutters should be ignored, but they do not be inspected at the same frequency.

Creating a Lean Maintenance System

Challenging past operational assumptions and protocols is just one step in developing a lean maintenance system – and it is not the first step.

Step 1: Inventory current practices and equipment

Step 2: Define objectives

Step 3: Seek waste in process, procedure, tools, etc. and document

Step 4: Evaluate and refine

We use lean maintenance practices to assist our clients better maintain their properties at a lower cost. If you would like to know more about the way we advance Beyond the Building^SM and what it could mean for your commercial real estate investment please contact me personally.

 

© 2010 Peter D. Morris

pmorris@beyond-the-building.com

www.beyond-the-building.com