In the realm of industrial maintenance, the "run-to-failure" (RTF) approach can often seem like a cost-saving strategy. However, this seemingly economical method can lead to unpredictable and exponentially higher costs when failures occur unexpectedly. A stark example of this can be seen in the case of a boiler feed pump that failed due to shaft misalignment, as detailed in a recent article.
The Cost of Run-to-Failure Maintenance: A Real-World Example
RTF Cautionary Tale: Pump Misalignment
A boiler feed pump failed without warning for the second time in eight years. Had the plant employed condition-based maintenance (CBM), the pump would have been equipped with four vibration sensors. These sensors would have detected shaft misalignment long before the failure, allowing for corrective action to be taken during scheduled maintenance. Instead, the undetected misalignment overloaded the bearings, leading to a catastrophic failure of the pump and motor, halting production.
The repercussions were severe. With no replacement bearings in stock due to inventory reduction, the plant scrambled to find a supplier who could ship the rare bearings overnight at a substantial cost. The boiler, which normally operated 24/7, was down for 32 hours, resulting in a revenue loss of $6,000 per hour. Additionally, $18,000 worth of in-process products were ruined and had to be scrapped.
The real cost of this RTF maintenance event totaled $223,280, taking into account new bearings, motor repairs, laser alignment, expediting fees, lost revenue, and scrapped products. Given the pump's failure probability of 0.25, the total annualized RTF maintenance cost was $55,820.
Breakdown of RTF Costs:
- New bearings and labor to repair the pump (collateral damage): $2,000
- Spared motor swap-out and repair to the original motor (collateral damage): $10,000
- Laser alignment of the repaired pump: $280
- Expediting fees and air shipment for replacement bearings: $1,000
- Lost revenue from 32 hours of downtime: $192,000
- Value of scrapped products in process: $18,000
- Total cost of pump failure: $223,280
- Probability of failure: 0.25
- Total RTF maintenance cost: $55,820
In contrast, the cost of CBM, which includes installing vibration sensors and performing laser alignment, is significantly lower at $1,580. This example starkly illustrates that the initial investment in CBM can lead to substantial savings, as the costs of monitoring and preventive repairs are a fraction of the potential losses incurred from unplanned failures.
The Unpredictability of Run-to-Failure Maintenance
While the financial breakdown provides a clear picture of the costs associated with RTF maintenance, it is crucial to highlight the unpredictability of such scenarios. Unplanned failures can result in:
- Extended Downtime: As seen in the example, unplanned downtime can lead to significant revenue loss. The inability to predict when and how a failure will occur means that production schedules can be severely disrupted, leading to missed deadlines and lost business opportunities.
- Expedited Repairs: Urgent repairs often require expedited shipping of parts and emergency labor, both of which come at a premium cost. These additional expenses can far exceed the regular cost of maintenance.
- Collateral Damage: Unplanned failures can cause collateral damage to other components and systems, escalating the repair costs and complicating the restoration process.
- Inventory Challenges: Keeping an extensive inventory of spare parts for all potential failures is impractical and costly. This often leads to situations where critical components are unavailable when needed, further delaying repairs.
- Safety Risks: Sudden equipment failures can pose significant safety risks to workers, potentially leading to injuries or worse. Ensuring a safe working environment is paramount, and unplanned failures undermine this objective.
The FORTIQ Advantage: Predictability and Efficiency with the 7 Eyes Process
At FORTIQ, we understand the critical importance of predictive maintenance and operational efficiency. Our unique 7 Eyes process is designed to harness advanced manufacturing analytics to drive business growth, streamline processes, and achieve operational excellence. By focusing on data pattern discovery and actionable insights transformation, we help our clients move away from the unpredictability of RTF maintenance.
Integrating the 7 Eyes Process:
- Data Pattern Discovery: By analyzing vibration data and other key indicators, we can detect early signs of potential failures, allowing for timely intervention and maintenance.
- Actionable Insights Transformation: Translating data into actionable insights enables our clients to make informed decisions, schedule maintenance proactively, and avoid costly unplanned downtime.
The true cost of run-to-failure maintenance extends far beyond the immediate repair expenses. The unpredictability of failures, coupled with the high costs of lost production, expedited repairs, and collateral damage, makes RTF a risky and often more expensive strategy. By investing in predictive maintenance and leveraging advanced analytics through FORTIQ's 7 Eyes process, companies can achieve significant savings, improve operational efficiency, and ensure a safer working environment.
Don't let unpredictable failures drain your resources and disrupt your operations. Contact FORTIQ today for an initial analysis to determine how much money your company is losing due to inefficiencies and learn how our 7 Eyes process can help you save money and achieve operational excellence.