Operating expenses

5 April 2022

THE EQUATION OF OPERATIONAL BUDGET MINIMIZATION UNDER THE CONSTRAINT OF MARGIN MAXIMIZATION.

The process industry is complex: manufacturers have to ensure the reliable operating of existing equipment, all the while keeping operating expenses as low as possible and increasing productivity to the highest possible levels. In this context, operational efficiency is becoming one of the main drivers of productivity, and thus, the optimization of maintenance processes is becoming essentially important in the equation of budget minimization.

 

 

Opportunity cost: Productivity vs. reliability vs. operating expenses?

 

 

In a vast majority of industrial sectors, such as the oil & gas, chemical, mining, pharmaceutical, engineering industry, etc. operating expenses and the entire cost of plant interventions and repairs is high. Additionally, inspection operations need to be carried out on a regular basis in order to ensure regulatory compliance with national or international standards and/or law. Quite naturally, when considering these large amounts of maintenance and inspection operations, it becomes clear, that these processes hold considerable potential for optimization.

 

 

But is inspecting and maintaining equipment for the sake of regulatory compliance and the avoidance of downfalls really all you can achieve with such operations? Naturally, equipment is a key element in the production cycle for many companies. Thus, maintaining them to the highest possible level of productivity has become one of the main tasks of plant management in industrial groups. It is obvious that only those companies that are able to maintain optimal equipment quality and increase the lifespan of their assets while using fewer resources, will emerge as the top players in their given markets. Consequently, one of the fundamental conditions for achieving this goal is the implementation of a well-designed equipment maintenance process, which includes complete analysis, a vast set of various data, the elaboration of a strategy for each set of equipment and so much more.

 

 

In terms of strategy, a plant or site manager ought to always find an optimal balance between productivity and reliability under the constraint of minimizing the related operating expenses. Therefore, different maintenance strategies (or reliability approaches with respect to the characteristics, criticality, function, and the current condition of a given piece of equipment) ought to be analyzed and taken into consideration.

 

Let us help you solve the equation

 

At SIRFULL, we are passionate about offering our customers software solutions that meet their needs to the finest. Whether you are looking for a large-scale digital platform with a complete toolkit of data management, structuration, maintenance, inspection and/or cost management, or simply a small software module capable of carrying out RCM studies – we have what you need. Whatever it might be, contact us and we will find a solution tailored to your needs.

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About SIRFULL

Sirfull is a software vendor with a strong industrial culture and French know-how, which develops solutions that enable its customers to anticipate changes in their market.

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