MPulse CMMS Blog

Thoughts and commentary about CMMS Software, the Industrial Internet of Things and Maintenance Management.

Why Your Maintenance Department is a Profit Center

Your Maintenance Department is a Profit Center

Traditionally maintenance was thought of a cost center—an area that does not directly add to profit, but still costs money to operate.  Not anymore. Today’s organizations have discovered maintenance has a direct effect on their profitability. Your Maintenance Department is a Profit Center

How? Modern maintenance technology has shown managers and accountants how maintenance generates revenue for the organization.

The objective of a cost center is to minimize costs. However, a profit center’s goal is to maximize profit. It’s a subtle but important shift in perception, and it’s changing the way organizations of all sizes think about their maintenance operations.

What Changed?

This change started with the rapid adoption of data-driven management, which simply means making management decisions backed by reliable data instead of assumptions or perceptions.

As technology has advanced, more detailed, relevant data is now available. And that data reveals some interesting things, including how the maintenance team makes major contributions to the organization’s financial viability.

These contributions include…

  • Safer operations (because accidents cost money)
  • Higher quality product (because rework costs money)
  • Better production efficiency (because you can produce more output in less time)
  • Reduced downtime (because equipment that isn’t working isn’t producing)
  • Better asset use (because increased capacity means more production capability)

In other words, if your organization’s success depends on uptime, reliability, production capacity, or any other quantifiable measurement, your maintenance strategy contributes to much larger goals.

How Does Maintenance Contribute to the Bottom Line?

Every dollar saved by maintenance is a dollar that goes to the bottom line.

Think of maintenance in its simplest form—a production line producing widgets. If the production line goes down, no widgets are made. Which means there are no widgets to sell, and your organization isn’t making money. It’s your maintenance team’s job to fix the problem—and look for ways to prevent it from happening again.

Now expand that to your organization. Do you produce goods? Provide services? Rent space? Make deliveries? Every industry relies on maintenance in some form, from buildings to vehicles to production equipment. If you have assets of any kind, you need maintenance.

In the past, the maintenance profession was often undervalued and sometimes unappreciated. If that’s the case in your organization, it’s time to re-evaluate how maintenance influences your operation’s productivity and profitability.

We’re here to help you get started. Contact us.

Latest Post

Schedule Maintenance the Smart Way with CMMS

Smart Ways to Schedule Maintenance with CMMS

Building Maintenance Mistakes that Cost Time and Money

Building Maintenance Mistakes That Cost You Time and Money

Building Maintenance Lowers Utility Bills

How Building Maintenance Lowers Utility Bills

What Does Preventive Maintenance Mean?

What Does Preventive Maintenance Mean?

Related Posts

Schedule Maintenance the Smart Way with CMMS

Smart Ways to Schedule Maintenance with CMMS

When people schedule maintenance, they often imagine a simple calendar alert that tells you it’s time to change a filter..

Building Maintenance Mistakes that Cost Time and Money

Building Maintenance Mistakes That Cost You Time and Money

Building maintenance mistakes can cost a lot of time and money. If you don’t take care of systems like heating,..

Building Maintenance Lowers Utility Bills

How Building Maintenance Lowers Utility Bills

Keeping a building in good shape does more than just make it look nice. It helps your equipment work better,..

Can't Find What Your Looking For?

Our team of experts is happy to assist with finding the maintenance management software resources you’re looking for!