Time is money: Another case of pay-me-now-or-pay-me-later

This one is for you Mr. Plant Manager or CEO.? Especially if your company is publicly traded company you are very familiar with how tight money appears to be when it comes to funding projects that involve machinery and condition monitoring, which do not have a ? to a 1 year ROI it is virtually impossible to bring them alive.? I have seen projects not make it even though they would have saved the company tenths of thousands of Dollars in power savings, cooling water elimination, repair reduction etc.  You also know that little expense is spared when production is down because a machine broke that sometimes does not even need to have been a critical piece of equipment.? Bunches of money are then spent trying to expedite the repair or replacement.? Ironic, is it not?

I have lost track of how many maintenance managers I have spoken to that wanted to buy a much more reliable and efficient machine that had an average ROI of around 2 years in most cases.? Much like local anglers the manager is casted his line out into the big yearly budget pond in hope that his request would finally be granted.? Yet he gets few nibbles? and thus he is reduced to repeating the same spiel in the following year.?

Now I am not saying that every project is worth pursuing, however, I would implore plant managers and CFOs to look twice before sending your maintenance managers back to the pond:? The money that they could be saving you over time would pay great dividends in less than 2 years.  Imagine what you could do with that money then!? You would need to have faith and not get tied up in the 90 day turn thinking for a little while.? Or you could kick it up a notch and let your CFO run the number that you are currently spending in unnecessary downtime and repairs.? Do not trust existing numbers.? Go speak with you maintenance people that do the actual work and see if your impression now matched what your balance sheet is trying to tell you.? Do not be surprised finding out that your company has become complacent by accepting the current state of affairs as something that cannot change.? If you still cannot go through with the project it may be time sharing this blog with the main company board.? They also should go out and walk the plant floor sometime soon and see what short term thinking does to their folks, morale and most of all their cherished profits.? Perhaps the maintenance managers can finally go home with a big catch from the pond.?

Have an awesome day,

Ralf Weiser

One thought on “Time is money: Another case of pay-me-now-or-pay-me-later”

  1. Hello Ralf,

    Managing a technical orientated company requires a technical-commercial or a commercial-technical personality.
    That person needs to balance the shareholders (short term) interests with the (long term) interests of the working personnel of the company and maintaining his personal position.
    There he faces the always better knowing and inflexibly minded technician (although, most of the time he is right indeed)
    Social interaction between various levels in a company is rare, due to the different social backgrounds of the people involved.
    Sometimes that gap can be bridged, most of the time this gap is maintained or magnified to secure personal positions, whatever the costs are.
    Spare your hart, enjoy the game and do the right thing.

    Have a very awesome day,
    Teus

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