The 8 Steps to Make the Business Case for a Predictive Maintenance Plan

Maintaining the status quo in maintenance in your facility is the easiest approach, but it is folly. Also known as reactive maintenance, traditional maintenance strategies focus on correcting problems. Modern maintenance programs, including preventative and predictive maintenance, are more efficient. Yet, even preventative maintenance has its limitations, explains Steve Wallis of Facility Executive. The best approach is a predictive maintenance plan, which will include preventative maintenance measures, and facility managers need to understand a few things about making the business case for such a program.

Challenges in Building a Business Case for Predictive Maintenance

The major challenge of implementing a proactive maintenance plan revolves around cost. Both preventative and predictive maintenance plans have an upfront investment cost. This cost may be reflected in the purchase of serviceable components, such as air filters and electrical relays, but preventative maintenance increases equipment longevity. Predictive maintenance takes preventative maintenance a step further, leveraging internal and external data to identify potential failures before they occur. The need for data leads to a few additional challenges in building the business case, which include the following:

  • Costs of implementing new technology and sensors, connected to the Internet of things (IoT). A predictive maintenance plan is built on the ability to collect data, and facility-wide deployment of sensors in all assets is necessary.
  • Length of the maintenance backlog. Another challenge goes back to addressing the existing maintenance backlog. It is difficult to gain funding for something that will have returns in the future when maintenance problems already exist. In addition, some select systems may be incompatible with new technology, but cloud-based sensors are changing the narratives.
  • Inexperienced staff. Support from staff members may be lacking when considering the implementation of a predictive maintenance plan. According to Saar Yoskovitz of Facility Executive, staff members may be reluctant to change in policy and processes.
  • Disparate systems. Disconnects between systems, including disconnects between facility assets and the existing means of tracking work orders, will require additional investment in preparation for a predictive maintenance plan.

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Predictive Maintenance Offers Great Value

The potential benefits of a predictive maintenance plan outweigh the challenges to implementation and management. As explained by Deloitte, some of the potential benefits of such a program include:

  • Material cost savings of up to 10 percent, such as reducing the volume of cleaning supplies purchased in a given period. This also includes less space required for storage of equipment components and serviceable features, such as air filters.
  • Faster planning for maintenance. Facilities Managers can plan maintenance needs in approximately half the time spent in a pre-existing, reactive maintenance program.
  • Sustainable energy consumption results in lower utility bills and enhances equipment longevity.
  • Reduced downtime leads to better customer experiences, and diversion of resources to guest experiences, not complaints.
  • Compliance with regulations increases as Facilities Managers are able to immediately track potential violations address the issues before a violation materializes
  • Clear linkage of intervention to results, which is the greatest benefit of a predictive maintenance plan, providing a data-based means of proving return on investment (ROI).

How to Build the Business Case to Guarantee Approval

It always helps to know where to get started when creating a business case presentation, so follow these steps to create a winning pitch:
  1. Create an Asset Database.
  2. Track Energy Spend.
  3. Focus on Health and Safety.
  4. Conduct a Needs Analysis.
  5. Optimize Scope/ Program With Data-Driven Insights.
  6. Calculate Indirect and Direct ROI.
  7. Emphasize the Savings of Compliance Guarantees.
  8. Build up to Agile Financial Management.

Master Your Business Case to Reap Efficiency, Savings and More Today

A successful predictive maintenance plan begins with making a winning business case to stakeholders and upper-level managers. Know the challenges, benefits, and best practices in building your business case. This will help make the prospect less daunting and improve chances of approval from stakeholders. After you’ve started creating your business case, remember to contact QSI Facilities at 1-888-328-2454 or online to review how outsourced predictive maintenance can augment your argument.

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