The role of maintenance in improving companies’ productivity and profitability

The role of maintenance in improving companies’ productivity and profitability

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Article ID: iaor20072769
Country: Netherlands
Volume: 105
Issue: 1
Start Page Number: 70
End Page Number: 78
Publication Date: Jan 2007
Journal: International Journal of Production Economics
Authors:
Keywords: paper industry
Abstract:

This paper illustrates how an effective maintenance policy could influence the productivity and profitability of a manufacturing process. It was possible to show how changes in the productivity affect profit, separately from the effects of changes in the uncontrollable factors, i.e. price recovery. The main results of the case study performed at a Swedish paper-mill showed that a paper-mill machine could, ideally, generate extra profit of at least 7.8 million Swedish kronor (SEK) (approximately US$ 0.975 million) per year, i.e. 12.5% of its yearly maintenance budget, if it avoids all unplanned stoppages and bad quality production due to maintenance-related causes. Thus, maintenance is not a cost centre, but a profit generating function.

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