Measuring Maintenance Costs

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Measuring Maintenance Costs
When running your business, can we all agree that it’s better to be proactive than reactive? And since we are going to be focusing on measuring maintenance costs, I believe this is one of the most crucial areas of proactivity. “But Ed”, you say, “I just need to get out there and pick up the trash. If the truck breaks, I fix it. What is there to measure?” I’m glad you asked!
Maintenance costs can comprise 15-20% or more of your total operating expenses. In a time of rapid inflation where we are trying to save money anywhere possible, maintenance is an area that can be controlled, if you are willing to take the time to do so. Whether you are using QuickBooks or some other form of software to manage expenses, utilize the categories and track your costs.
Preventative Maintenance is the easiest of categories to manage if you have your equipment on a regular PM schedule. If not, we can help with that too. When performing regular PM services, keep track of the potential problems that you find while underneath greasing the chassis and changing the oil. You may find a brake about to cam over, a hydraulic hose about to burst, broken leaf spring, or a bulge in a tire. These are all things that could result in a roadside breakdown. When you catch them in advance, you have saved yourself untold amounts of time and money. It’s almost like finding $20 bucks in your pocket!
Track all your repairs and why they are being performed, whether they are PM’s, roadside breakdowns, driver inspections or warranty repairs. Once you have done that, you can begin to recognize patterns. For example, if you have a lot of breakdowns on the road, what are they? Tires? Hydraulic lines? Maybe those are some areas that need more attention during a scheduled PM service. Train your techs to look for these things during a service and track that as well. A hydraulic line replaced in the shop during a routine service is like money in the bank compared to having it blow out at the farthest point on the route from the shop!
Now that you have a system in place and can track the patterns, there is a formula we have developed to measure how well the maintenance team is doing. You can compare month to month to track your progress and even use it as an incentive. If you would like more information on this system, message me or give me a call! I would enjoy talking with you and getting to know you and your business.
Ed Dryfhout
Van Tholen & Associates
ed@vantholenassociates.com
616-813-6600
vantholenassociates.com
616-813-1657