Cost Reduction

COST REDUCTION


The ability to reduce costs is as important as the ability to increase sales. Our custom solutions will reduce expenditure and remove unwarranted expenses without having a negative impact on operations.
The facilities budget is a typically the third largest expenditure of an organisation. These days as operations and maintenance budgets are scrutinized, senior managers and facility executives are cutting budgets down to bare bones. Preventative and non-critical maintenance are often regarded as opportunities for cuts. It is important to know where cuts can be made without incurring greater expense in the long term.

Our Solution

On average we can reduce your facilities / maintenance budget by up to 15%. This is a Return on Investment (ROI) of between 280% - 360%.
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Areas of Expenditure

Energy

Energy is a prime candidate for belt-tightening. With fossil fuels geting progressively more expensive and winters becoming wetter and colder, savings can be hard to find. Savings that relate to the solutions Compass provide include:

Expenditure Reason Our Solution

Excessive Fuel / Energy Usage Poor plant maintenance Tracking and validation of maintenance actiities.
Inefficient, old or dated technology plant and equipment Comparitive analysis between energy usage of similar & different plant.

Comparative Energy Usage Knowing the energy usage of individual or plant types Comparitive analysis of energy usage in different areas by plant & equipment.

Plant Replacement & Failure

The average working / effective lifespan across all plant types is approximately 12 years. Depending on plant type, early or unplanned replacement can have a huge impact on an annual budget. Savings that relate to the solutions Compass provide include:

Expenditure Reason Our Solution

Unplanned Replacement Critical failure Prevention through tracking and validation of maintenance actiities.

Early Replacement Poor maintenance, adverse environmental impact Prevention through tracking and validation of maintenance actiities.
Outdated technology Comparitive usage analysis of similar plant and equipment.
Excessive and increasing frequency of remedial work Early intervention through analysis of remedial work actiities.

Planned Preventative Maintenance

How will plant, equipment and property be affected if a preventative maintenance cycle is skipped or non-critical maintenance is not performed? Managed PPM can produce a wide range of savings. See how these relate to the solutions Compass provide:

Expenditure Reason Our Solution

Un-planned maintenance Insufficient, outdated information of assets will lead to inability to schedule maintenance or control contractors A detailed asset register with asset details, current condition and age profile

Reactive Maintenance Short term savings can lead to long term financial and operational issues Tracking and validation of maintenance actiities can determine what assets are suitable for PM frequency changes.

Maintenance Cycle Frequency The preventative maintenance rule of thumb is that if you go through six PM cycles, and don't find anything wrong, it's possible to reduce the maintenance frequency. Tracking and validation of maintenance actiities can determine what assets are suitable for reactive maintenance.

Non-Performing Contractors When contractors under perform the door is wide open for a whole range of financial and operational issues. Maintaining KPI's on work performance, administrative tasks and health & safety compliance

Missing or Incorrect Maintenance Equipment Lack of site / plant access or detailed asset information can lead to costly delays. Contractors need to know in advance if height equipment and additional PPE are required. Likewise asset make & model information is needed for spares and repairs

Choice & Scheduling of Contractors Choosing the optimal In House, local, regional or national contractors to match your needs PPM needs will have considerable savings. Many factors will influence your choice, cost tracking, quote analysis, contractor knowledge base and maintenance analytics can provide an optimal solution

Remedial Works

Remedial work expenditure can easily exceed maintenance costs if not controlled. Passing of information between your facilities and finance departments is vital in controlling these costs. Savings that relate to the solutions Compass provide include:

Expenditure Reason Our Solution

Excessive Callouts Poor maintenance will generate more callouts with their associated costs Tracking and validation of maintenance actiities combined with asset analytics
No grouping of jobs and minor issues being given too high a status Tracking of callout requests including originator combined with asset analytics
Repetitive callouts to same asset and trends Requirement to determine cause of problem and find permanent solution

Excessive Time On / Off Site Missing or incorrect maintenance equipment Contractors need to know in advance if height equipment etc., and additional PPE are required.
Leaving site for purchases Contractors should know in advance what spares or replacement parts match the asset(s) they are working on.
Access to plant & equipment Preperations should be made in advance of contractors arrival for passes / keys etc.

Callout Charges Minimum callout fees, travel and out of hours work can make remedial works excessively expensive. Historical cost tracking, multiple contractor knowledge base and remedial work analytics can provide a cost saving solution

Purchasing

Wear & tear, age and technology improvements will require budget planning for new plant and equipment. Savings that relate to the solutions Compass provide include:

Expenditure Reason Our Solution

Choice of Supplier Poor choice can lead to plant and equipment that over the long term could be more expensive to run and more prone to breakdowns. Historical tracking of maintenance and remedial work actiities of same and competitor branded assets can give a future indicator of performance.
Many different brands and suppliers across your organisation will increase costs Groupage under brand allows for lower purchase and maintenance costs. Suitable choices can be made using your asset register

Materials Individual instead of batch purchases Needs Analytics before assigning work to contractors
Material / Job Matching Ensure quantities match requirements by confirming purchase at time of event

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