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What is the advantages and dis advantages for the Emergency maintenance plane due to the increase of the profit margin?

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Question added by Deleted user
Date Posted: 2015/06/18
Ahamed Junaid mohamed Akkeel
by Ahamed Junaid mohamed Akkeel , Project and Sales Engineer , Qatar Speed House WLL

Reactive maintenance is the process of reacting to failed, ineffective or damaged equipment and repairing or replacing in order for the intended function to be achieved. Essentially, reactive maintenance ignores any preventative measures and simply deals with a problem or issue when it is reported.There are many arguments against this approach to maintenance, as well as some positive aspects. Below are the advantages and disadvantages of reactive maintenance. 

AdvantagesLower start up cost – the first main advantage to running a reactive maintenance system is the lack of initial cost involved. When only reacting to a problem, as long as there is a point of contact and the relevant contractors are known to contact, there is very little to actually do before a problem occurs. Therefore, investment in systems, procedures, pre planning and organisation time is greatly reduced, along with the start up cost required to begin the operation.Limited personnel requirement – Due to the reduced planning, management and organization time involved with reactive maintenance, the approach requires fewer staff to manage a portfolio or client. This can offer management companies the opportunity to save on payroll and either increase profit margins or offer clients competitive rates.Reduced maintenance costs – a reactive maintenance approach sits inline with a ‘run until it fails’ concept, whereby equipment is used as much as possible without spending any further money that its cost price. Maintenance is avoided, servicing and checks are not ordered and temporary repair or quick fixes are made in order to reduce ongoing maintenance costs and spend only when absolutely necessary.Potentially increased margins – depending on the type of management company, some operations will prefer to deal with reactive maintenance for the potential of higher profit margins. Those operations that charge a percentage of job prices will often prefer an ‘emergency call out’ or and ‘out of hours attendance’ due to the opportunity to charge more for the repair, especially when the client is desperate for the repair to be completed and is not in the position being able to negotiate or get a second opinion.

DisadvantagesUnpredictability – One of the main disadvantages of reactive maintenance is the unpredictability of when issues may occur. This lack of knowing may well result in either labour or materials being unavailable immediately and therefore delay the time taken for a repair, increasing equipment downtime. Furthermore, out of hours or emergency visits by contractors to fix an issue can result in unnecessarily expensive charges that may have been avoided. This aspect of unpredictability can also affect budgets and cost planning as there is no maintenance plan and anticipated cost in place.Equipment not maximised – Reactive maintenance doesn’t protect or look after equipment and therefore reduces the lifespan of the unit. Rather than preserve the equipment and ensure it is running in optimum condition, a reactive maintenance approach does the bear minimum to keep equipment operational. The negative effect of this is that the equipment won’t fulfill its potential or return on investment.Indirect costs – Further indirect costs are found with reactive maintenance with equipment downtime or unreliable equipment causing negative effects on reputations, safety and the ability to run a business efficiently and productively. Furthermore, reactive maintenance can be an inefficient use of employee time. Both for the operators of the equipment and the management personnel who will have to work hard to arrange repairs to be made.

What are the alternatives?An alternative approach to reactive maintenance is preventative maintenance, which takes an entirely opposite approach with the main focus being on taking steps and measures to avoid any breakdowns or problems occurring with equipment. By planning, servicing, making regular checks and replacing parts when recommended, a preventative maintenance approach limits unexpected problems and aims to reduce long term expenses through avoiding unanticipated issues.However, it is worth noting that preventative maintenance cannot be solely relied on as there are always going to be unpredicted breakdowns or issues. For this reason, every maintenance management operation will require an essence of reactive maintenance.

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