In the late 90’s, the show “60 Minutes” did showed that an average economy car worth $15,000 new would cost about $95,000 if it was to be built from aftermarket parts, and adding in an allowance for your own labor, excluding the uni-body (which wasn’t for sale). It is more or less a given that manufacturer’s make more money on parts for their products than on the initial sale of the product. (more…)
Many believe strongly in the value of warranties on new / refurbished equipment. They go to great lengths talking about how important it is to do the manufacturer’s recommended maintenance to maintain validity of the warranty. This is a continuation of the last blog article on having too many failures despite following manufacturer’s recommendations. Manufacturer’s usually recommend maintenance and spare parts for their products. In our last blog we can see that those recommendations are often flawed. So what about their warranty? (more…)
Manufacturers always publish recommended maintenance for users of their products. There are a few myths about this maintenance – one is that it will result in reliable operation of the equipment. In some cases it does, but in most, it does not. Why?
The myth is that the manufacturers always know best how to maintain their designs. Think about that for a minute. How many manufacturers actually use and maintain what they sell? (more…)
This one is a HUGE MYTH. Maintenance costs are a direct result of what you do and what you do produces capacity for service delivery or production (depending on your business). Cost is a consequence of your actions, available cash (in a budget) does NOT determine what you will spend. (more…)
Maintenance and finance may not seem like natural “allies” in the battles for business achievement. However, they share common concerns and can both do a lot of good – albeit from behind the scenes. Financial managers, directors and CFOs are primarily concerned with company financial performance. They are often the watchdogs for regulatory compliance. They are in an excellent position to see what’s going on, and spotting problem areas, but not always what to do about them. Like all of us, their expertise only goes so far. (more…)
A lot of attention is going to Infrastructure and its renewal. Here in Canada the recently elected Federal Government is about to spend over $100 billion on “shovel ready and shovel worthy” projects. At the municipal level alone (where we “own” about 60% of Canada’s infrastructure), some $123 billion is needed for catching up on deterioration that’s been allowed to accumulate since the 1950’s. That doesn’t take into account needs for growth. I recently attended a conference and listened to a well-regarded key-note speaker who placed our overall spending needs on infrastructure (all levels of government) nearer to $1 Trillion! The number is huge – no matter what it is. (more…)