The Resident Maintenance Model Five Ways an Outsourced Maintenance Program Can Provide the Most Efficient and Cost-effective Answer for Your

Transcription

1 The Resident Maintenance Model Five Ways an Outsourced Maintenance Program Can Provide the Most Efficient and Cost-effective Answer for Your Operational Challenges

2 The Resident Maintenance Model Table of contents The Resident Maintenance Model Maximum Uptime With Minimal Headaches Make Maintenance Team Recruitment, Training and Turnover a Problem of the Past Control, Predict and Reduce the Cost of Maintaining High-tech Systems Gain the Benefits of a Fully Integrated CMMS Make Time for Preventive Maintenance Programs Decrease Downtime With Contracted Uptime Major Home Improvement Retailer Keeps DC Equipment Uptime High With a Resident Maintenance Program A Calculated Return Calculating the ROI

3 The Resident Maintenance Model 1 By Dave Trice, Senior Director, Business Development Lifecycle Support Services, Honeywell Intelligrated The Resident Maintenance Model Five Ways an Outsourced Maintenance Program Can Provide the Most Efficient and Cost-effective Answer for Your Operational Challenges Maximum Uptime With Minimal Headaches High-speed omnichannel fulfillment depends on complex equipment, controls and software to get the job done. With trailers arriving for unloading and loading on tightly monitored schedules, the intangible cost of downtime can quickly escalate, cutting into slim profit margins and jeopardizing future business and customer loyalty. However, preventing downtime and optimizing operational efficiency of these highly automated systems require PM programs planned and executed by a skilled maintenance staff that is competent with the latest versions of software, systems and diagnostic techniques. With manpower in high demand, fewer highly qualified personnel are available in the labor pool. This increases the risk of losing key personnel and their legacy system knowledge due to employee turnover. More and more, DC operators and e-retailers recognize the value of a resident maintenance program offering guaranteed uptime and staffing and limitless access to original equipment manufacturer (OEM) engineers and support staff. While maintenance outsourcing is not a new concept, particularly during peak demand periods, replacing internal staff with on-site experts and a turnkey maintenance program is proving to be a cost-effective model for today s high-volume, high-speed distribution centers. Today s automated order fulfillment and distribution systems operate faster and longer to meet increased fulfillment volumes at the speed of omnichannel demands. Typical operational requirements mandate sorting and shipping orders hours a day, seven days a week. These prolonged hours of operation limit available time for maintenance teams to perform required repairs, preventive maintenance (PM) and rebuilds, and prevent benchmarking the relative health of a system.

4 The Resident Maintenance Model 2 In this white paper, we ll look at five benefits of implementing a resident maintenance program using real-life examples from the Honeywell Intelligrated lifecycle support services team: 1. Solving maintenance staffing and training challenges 2. Controlling the cost of high-tech system and software maintenance 3. Integrating a computerized maintenance management system (CMMS) with enterprise resource planning (ERP) and warehouse control system (WCS) 4. Implementation of a robust PM program 5. Guaranteeing and achieving uptime 1: Make Maintenance Team Recruitment, Training and Turnover a Problem of the Past Staffing shortages, particularly skilled mechanical, electrical and software maintenance technicians, continue to plague DC operators. A resident maintenance program provides an attractive alternative, deploying staff already trained in OEM equipment and resourced to start work on day one. Rather than spending time with internal HR staff to define and redefine the required skill sets for this month s maintenance recruitment effort, the resident maintenance service technicians deployed to the facility exactly match operational and maintenance requirements including any seasonal demand adjustments. Facility staff no longer bear the burden of initial training and subsequent training as equipment is added, upgraded or changed. In addition, resident maintenance programs eliminate the risk of losing legacy knowledge due to staff turnover; the service provider institutionalizes this information among a broad base of system experts and databases.

5 The Resident Maintenance Model 3 Today s automated DCs are far more complex than systems used a decade ago. The wider variety of equipment with more dependent interconnections of the WCS, WMS and real-time controllers has been extremely transformative. Because of the many trade disciplines required for a robust, preventive and emergency maintenance team, recruitment and training can be substantial inconveniences. Having a resident maintenance program in place frees operations staff from worries about system uptime and extending system lifespan, allowing them more time to focus on product flow and customer satisfaction. 2: Control, Predict and Reduce the Cost of Maintaining High-tech Systems High-throughput DCs employ increasingly complex hardware and software that demand new and specialized maintenance knowledge from technicians. The increased productivity of these systems brings a potential risk of higher associated maintenance costs. This affects the type of staffing a facility requires. For example, an older non-automated facility may run with operational staff and 25 maintenance staff. However, upgrading to an automated facility with higher throughput capability may only require 80 operational staff but require 50 maintenance technicians. Keeping a high-throughput automated system up and running with short maintenance windows can be a challenging endeavor. Factoring in staffing and parts requirements to meet throughput KPIs adds an additional challenge and costs. With less time for maintenance, preventive tasks can get pushed aside for more urgent repairs, thereby compounding downtime and maintenance costs as the system ages. Furthermore, in the event of an equipment malfunction, spare parts must be on-site along with a fully trained technician to complete the repair. A resident maintenance program meets these maintenance challenges head-on and provides a predictable cost for guaranteed throughput. This program not only means having trained mechanical, electrical, controls and software technicians available but also necessary spare parts on hand for fast repair, plus instant access to OEM resources and engineering assistance. A resident maintenance program allows DC operators to focus on meeting their business objectives, rather than maintenance and staffing issues. The guaranteed uptime and more efficient control of expenses yield enormous benefits across the entire organization.

6 The Resident Maintenance Model 4 3: Gain the Benefits of a Fully Integrated CMMS Keeping hundreds of assets maintained and operating at peak efficiency is a daunting task. By implementing a computerized maintenance management system, every facility asset can be viewed and tracked on a graphical interface, ensuring efficient management throughout its lifecycle. CMMS implementation has benefits that range from system-wide maintenance planning and labor allocation down to individual machine-level monitoring to identify repetitive issues and cost of ownership. Maintenance scheduling, labor management, PM planning, work order generation, spare parts inventory and performance reports can all be aggregated within a CMMS. In addition, a CMMS integrates with a DC s other software systems to share data and provide an unprecedented ability to manage assets and predict system wear and tear, all while optimizing maintenance budgets and schedules. The CMMS also sends notifications via text, automated voic s or s should critical situations arise. The results: reduced response time, less downtime and lower perceived maintenance costs. A properly implemented CMMS gives DC operators a complete, end-to-end asset history, including ancillary equipment such as lift trucks and batteries. This provides invaluable insight to the true cost and performance history of each asset, thereby impacting how and when maintenance is performed. Additionally, potential upgrades or replacements are scheduled while considering associated cost benefits to the operator. Each asset is then tracked individually so that identical units that may have different motors are managed as separate assets. The result is a smarter, more efficient way to work that positively impacts uptime. 4: Make Time for Preventive Maintenance Programs Maximizing equipment life and preventing unplanned shutdowns are some of the primary drivers for a PM program. A PM program also ensures that recommended system enhancements and upgrades are implemented. Running a lean internal maintenance team frequently results in downsides such as minimal to no time allocated for preventive maintenance. Responding to unplanned outages takes all the resources available, with the consequence of expensive equipment not meeting life expectancy and a noticeable increase in unplanned outages. Running 18- to 20-hour days, seven days a week can also compromise a PM program. A resident maintenance program includes a robust and highly structured PM program designed for total lifecycle support. This type of PM program ensures maximum life of the capital equipment investment, as well as keeping uptime and throughput at optimum levels.

7 The Resident Maintenance Model 5 DC operators should see a robust PM program as an insurance policy for long-term system performance. Without a PM program in place, overall costs suffer due to lost throughput. This reason alone makes a cost-effective PM program one of the single greatest benefits of a resident maintenance program. Your resident maintenance professional will be Time-efficient Providing high-quality maintenance during limited downtime A clean sweeper Keeping your systems clean and clear of debris A system inspector Inspecting and identifying worn parts and equipment to prevent failures before they happen, reducing unplanned downtime 5: Decrease Downtime With Contracted Uptime Throughput is one of the most important KPIs for any DC operator. The ability to meet throughput goals relies on sustaining uptime. A superior maintenance program contractually guarantees uptime of 97 percent or better. While actual uptime frequently exceeds this figure, the number alone is not the whole ROI story. With operational staff free from maintenance oversight, they can focus on strategic planning and management. This guaranteed uptime provides tremendous peace of mind for DC operators. Meeting or exceeding these uptime projections comes in large part from having skilled technicians on hand to respond to any emergency outage or equipment failure with the right skillset and spare parts at just the right time. A reference point Providing greater access to company resources both remotely and in-person as an employee of the system s manufacturer Fully trained Comprehensive training in the company s specific solution, as well as industry standards and OSHA requirements Familiar with asset management and legacy knowledge base Maintaining complete system knowledge that never just gets up and leaves, like employees. The system manufacturer manages hiring, training, record keeping and reporting.

8 6 The Resident Maintenance Model Major Home Improvement Retailer Keeps DC Equipment Uptime High With a Resident Maintenance Program A major home improvement chain faced Results from peak season operation at increasing online orders coupled with growing 22 locations running up to 95 hours per week demand at its brick and mortar facilities. tell the story: With more than 35,000 SKUs available at each store and more than three times that number available online, the company required continued high-level automation investments for both retail and online DCs to meet demand. As part of its automation strategy, the retailer contracted Honeywell Intelligrated for a resident maintenance program offering guaranteed uptime at a controlled cost allowing the company to concentrate on serving customers, not maintaining highly automated material handling systems percent of downtime due to maintenance issues, including label applicator and printer needs, mechanical adjustment, e-stop and photo eye adjustment 0.3 percent of downtime due to operational issues, including jam clears, accumulation issues and faults 40 percent of downtime due to loose product or product jams

9 The Resident Maintenance Model 7 For more information, contact Honeywell Intelligrated by at info@intelligrated. com, by phone at , or visit www. intelligrated.com. A Calculated Return Today s automated distribution centers face increased maintenance challenges due to increased dependence on software, high-tech control systems and generally reduced times for periodic maintenance tasks. Difficulty finding, training and retaining qualified maintenance technicians coupled with lack of time to support a PM program can result in unacceptable downtime, increased maintenance costs and early replacement of underutilized assets. A resident maintenance program solves these challenges and ensures that high-performance DCs and all associated equipment and controls operate at peak efficiency. Guaranteed uptime at a controlled cost can be an attractive proposition for DC operators struggling to meet throughput KPIs and overall investment ROI goals. Integration of a CMMS as part of the Honeywell Intelligrated resident maintenance program provides an extensive management tool for more strategic decisions on maintenance activities and equipment performance. For DCs that struggle to meet uptime requirements or keep a fully trained maintenance team on-site, a cost-effective resident maintenance program can provide guaranteed uptime, minimal unplanned outages, increased overall system performance and longer life for capital equipment investments. Calculating the ROI Factoring in sales volume, number of employees, hours worked and wage structure, operations can easily calculate potential savings incurred by a contracted resident maintenance program. For example, a facility operating 4,500 hours a year with 4 percent downtime could reduce downtime by hours with a resident maintenance uptime guarantee, saving more than $1.25 million annually. Subtract more than $500,000 of in-house maintenance costs, and total program savings exceed $1.75 million. Ask your lifecycle support representative to estimate your downtime and discover what your company could be saving. Honeywell Intelligrated is a full-service resident maintenance provider for automated material handling systems. Designed to meet DC systems maintenance challenges, a Honeywell Intelligrated warrantied resident maintenance program provides a predictable cost for a guaranteed throughput. A resident maintenance program like Honeywell Intelligrated s includes CMMS integration by trained personnel, a robust, highly structured PM and asset management program designed for total lifecycle support from cradle to grave, and a contractually guaranteed uptime of 97 percent.* *97 percent uptime guarantee is a minimum standard. Current programs may exceed these expectations.

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