The Real Cost of Deferred Maintenance
Deferred facilities maintenance, like many other forms of procrastination, may seem fine in the moment, but quite often, that postponement comes back to bite you in the – wallet!
The postponement of upkeep on buildings and equipment due to budgeting cycles and/or lack of funding is an issue that many businesses face. Putting off routine maintenance can cause neglect, allowing various forms of minor repair work to evolve into more serious conditions. The problem is especially compounded by choices made during shaky financial times when routine facility maintenance is often deferred in order to meet other fiscal requirements. The failure to take care of major repairs and/or restore building components that have reached the end of their useful life, tends to result in an overwhelming backlog or worse.
There is a significant measure to procrastination; even if without negligence. Simply deferring maintenance due to budget constraints or lack of man power can have drastic results that impact the company as a whole.
Do the math. There is a difference between breakdown costs and early intervention costs. When an asset is operated to failure, an exponential cost escalation begins to progress. By using Geaslin’s Inverse-Square Rule against reliable cost numbers, it can be determined what you may be looking at for future costs of ignoring those nagging problems in your facility. We all know that Time is Money.
To view money as a form of energy, Geaslin identifies the following connection:
“If your maintenance people tell you that a $15 wheel bearing is failing on a light utility trailer you can predict that the next energy state to recover from a breakdown event will be about $225 in direct maintenance costs to replace the whole axle if operated to failure. You can also predict that if the bearing failure causes an accident on the road that the next escalating energy state level to the whole organization could be about $50,000.”
To break it down even further:
• Level 0: Identify Cost of Primary Part
• Level 1: √Cost of primary part to determine energy ($$) needed to recover
• Level 2: √Cost of Level 1 to determine cost of the ‘Worst Case Scenario’
• Level 3: √Cost of Level 2 total to determine resultant impact to whole company (i.e lawsuit)
Don’t let procrastination and agonizing over budgets create a backlog of maintenance tickets that do not get addressed. Lingering issues have proven to cost drastically more in the long run. Address smaller needs as they arise so as not to impact the daily experience or further result in a building failure – such as a door latch or damaged window that has potential to lead to an issue of building security.
Properly maintained facilities are a reflection of a company’s pride – your tenants and their customers DO notice the details!
Call us today and see how Suburban can help you simplify your maintenance needs and get you back on track!