Asset failure can have significant financial implications for businesses, resulting in lost revenue, increased operational costs, and potential damage to reputation. According to various studies, asset failures can lead to losses in the millions of dollars annually.
For instance, a report from the U.S. Department of Energy indicates that unplanned downtime can cost manufacturers between $500,000 to $1 million per hour. Additionally, consultants estimate that manufacturers miss 5% to 20% of their productive capacity due to downtime.
This blog explores the top reasons for asset failure and offers strategies for overcoming these risks, including the adoption of advanced mobile Enterprise Asset Management (EAM) solutions.
Understanding the top reasons of asset failure is crucial for any organization looking to maintain operational efficiency. Here are some of the most common reasons:
Insufficient maintenance practices can lead to equipment degradation over time. This includes deferred maintenance where necessary upkeep is postponed, resulting in frequent breakdowns and reduced asset availability.
Conversely, excessive maintenance can also cause issues. Performing unnecessary maintenance can lead to increased wear and tear on components and higher operational costs without significant benefits.
Operator errors, such as running machinery outside manufacturer specifications or improper loading, can significantly impact asset performance. Lack of proper training often contributes to these mistakes.
This is one of the important reasons of asset failure. Using substandard materials in asset construction or repair can lead to premature failures. Ensuring high-quality materials are used is essential for longevity.
Inherent design issues in equipment may not be apparent until they become one of the important reasons for asset failures. Regular reviews and updates to design specifications based on operational feedback can help mitigate these risks.
Conditions such as extreme temperatures, humidity, or exposure to corrosive substances can accelerate asset deterioration, ultimately leading to asset failure. Implementing protective measures against environmental stressors is vital.
Continuous operation leads to metal fatigue, while corrosion from environmental exposure further degrades assets, becoming one of the key reasons for asset failure. Regular inspections and timely interventions are necessary to address these issues.
Inadequate training programs for staff can result in improper handling and operation of equipment, leading to increased risk of failure.
Failing to utilize data analytics for predictive maintenance can leave organizations unaware of potential issues until they become critical failures.
Variability in maintenance practices across different teams or locations can lead to inconsistent asset performance and increased risk of failure.
Now that you are aware about the top reasons for asset failure, so the next step is to design proper strategies to effectively overcome these failures. Here are several approaches that can significantly reduce the risk of asset failure:
To know how a mobile EAM solution like that offered from Propel Apps, helps mitigate equipment stress and failures, optimizing your production efficiency, schedule a free demo to experience our solution beforehand.
Asset failure is a significant concern that can lead to substantial financial losses for businesses across various industries. By understanding the common reasons for asset failure—such as under-maintenance, over-maintenance, poor operation, material quality issues, design flaws, environmental factors, fatigue, corrosion, inadequate training, lack of data analytics, and inconsistent practices—you can take proactive steps to mitigate these risks.
Implementing effective maintenance strategies is essential for ensuring the longevity and reliability of your assets. Leveraging a mobile EAM solution like that offered by Propel Apps enhances your ability to manage assets efficiently while minimizing the downtime and costs associated with failures.
Investing in robust asset management practices not only protects your bottom line but also enhances operational efficiency and safety within your organization. By prioritizing maintenance and utilizing technology effectively, you position your business for sustained success in an increasingly competitive landscape.
