In a declining economy saving operating expenses has become a priority for most firms. Predictive and preventive maintenance although similar, are two different tools used by facilities managers in order to save precious dollars. Both asset maintenance strategy systems help keep earnings (the bottom line) stable by avoiding costly repairs and maximizing equipment up-time. Normally cutting expenses for operations means fewer support staff, hiring freezes, and a repair versus replacement strategy on equipment. But what happens when the forecast for low or declining sales does not improve or is mired in a deep recession? A recent survey conducted by Facilities Planners and Architects, Inc. of facility managers and business owners revealed intended reactions to the current economic situation. The survey highlights are:
Limiting capital expenditures to sustainability initiatives such as more efficient lighting systems. More plans to reduce square footage. Outsourcing non-core services such as janitorial services. Assessing the condition of the facilities and better strategic planning of their use
Initiating predictive maintenance programs. Obviously, it is always a good idea to watch your expenses. The results echoes this and indicates a long overdue desire to become more energy efficient, a focus on core responsibilities by outsourcing non-core functions, a strategic look at assets and the initiation of efficiency and savings programs. The survey mentions predictive maintenance as one of the most popular choices for cost saving solutions. It should be noted that predictive maintenance is not the same as preventive maintenance. Successful predictive maintenance starts with preventive maintenance. To better understand let us take a look at both.
Predictive vs. Preventive Maintenance: Preventive maintenanceoccurs on a pre-determined schedule and is intended to increase efficiencies by reducing the amount of reactive work and increasing the ability of management to manage work. Most importantly, it allows for the early identification of problems and significantly increases the life cycle of equipment, lowers capital expenditure requirements and allows for better planning of capital budgets. In addition, when integrated with handheld technologies and a combination of asset management, work order management and inspections, work flow efficiencies are increased to maximum levels. The data collected through this method becomes the building block for predictive maintenance.
Further, the flight school may have newer aircraft on the line that are owned by the FBO (fixed base operator) which they will attempt to rent first or the students and instructors may prefer. Thus, there could be a deficit in the monthly maintenance costs, tie-down, insurance, and payment of the aircraft. So, before you use a leaseback accounting strategy for equipment of any type you need to treat it as a business and consider the reality of the inevitable. After all, anyone can make anything look good on paper.
Do your homework if thinking about purchasing from a "fractional" scheme. Just because the company says it is fractional or isn't timeshare doesn't mean anything. You need to find out the fundamentals of: Right to Use. Responsibilities for fees (and how can these be increased). Rights to investment returns. Exit strategy.
Limiting capital expenditures to sustainability initiatives such as more efficient lighting systems. More plans to reduce square footage. Outsourcing non-core services such as janitorial services. Assessing the condition of the facilities and better strategic planning of their use
Initiating predictive maintenance programs. Obviously, it is always a good idea to watch your expenses. The results echoes this and indicates a long overdue desire to become more energy efficient, a focus on core responsibilities by outsourcing non-core functions, a strategic look at assets and the initiation of efficiency and savings programs. The survey mentions predictive maintenance as one of the most popular choices for cost saving solutions. It should be noted that predictive maintenance is not the same as preventive maintenance. Successful predictive maintenance starts with preventive maintenance. To better understand let us take a look at both.
Predictive vs. Preventive Maintenance: Preventive maintenanceoccurs on a pre-determined schedule and is intended to increase efficiencies by reducing the amount of reactive work and increasing the ability of management to manage work. Most importantly, it allows for the early identification of problems and significantly increases the life cycle of equipment, lowers capital expenditure requirements and allows for better planning of capital budgets. In addition, when integrated with handheld technologies and a combination of asset management, work order management and inspections, work flow efficiencies are increased to maximum levels. The data collected through this method becomes the building block for predictive maintenance.
Further, the flight school may have newer aircraft on the line that are owned by the FBO (fixed base operator) which they will attempt to rent first or the students and instructors may prefer. Thus, there could be a deficit in the monthly maintenance costs, tie-down, insurance, and payment of the aircraft. So, before you use a leaseback accounting strategy for equipment of any type you need to treat it as a business and consider the reality of the inevitable. After all, anyone can make anything look good on paper.
Do your homework if thinking about purchasing from a "fractional" scheme. Just because the company says it is fractional or isn't timeshare doesn't mean anything. You need to find out the fundamentals of: Right to Use. Responsibilities for fees (and how can these be increased). Rights to investment returns. Exit strategy.
