A production stoppage of a continuous cycle plant requires planning, competence, speed and efficiency

The continuous cycle production departments use systems that maximize production yields by reducing downtime to a minimum, normally working on three daily shifts.

But the machines , although efficient, are subject to wear and tear , and this is why it is necessary to correctly schedule maintenance stops.

As part of the production budget , the maintenance stop has two important factors that must be carefully calibrated: time, which implies a lack of goods to sell or store in the warehouse, and the costs of the interventions, which involve the company's technical organisation. as a whole.

What rules to adopt to plan production stops for maintenance

Scheduling production downtime for maintenance, in a continuous cycle industrial production environment, is essential to maintaining equipment efficiency and preventing breakdowns.

There are some important rules to respect in order not to be caught unprepared during detention:

- Before planning a production shutdown, it is essential to conduct an analysis of the conditions of the production plants . This helps determine the need and urgency of maintenance.

- Plan production stops well in advance so as to have time to coordinate all the necessary resources .

- Try to schedule production stops during periods of low demand or when the impact on production will be minimal.

- Ensure that all employees and interested parties are informed of the expected times and durations of the shutdowns.

- Before stopping, make sure you have all the necessary spare parts and tools at hand.

- Ensure that the personnel in charge of maintenance are adequately trained and have the necessary skills.

- After each production stop, analyze the effectiveness of maintenance . This helps improve future processes.

- Document each production stoppage , including the reasons for the stoppage, the actions taken and the results. This will provide valuable data for future planning.

How to manage the spare parts warehouse for production plants

Spare parts warehouse management, in a continuous industrial production environment, is essential to ensure that the systems themselves operate without unplanned interruptions.

There are spare parts that can be purchased from suppliers in a short time, while others, especially specially created ones, require weeks or months between order and delivery.

This means how important it is to know how to plan the management of the spare parts warehouse, both for scheduled and extraordinary maintenance.

Even in this case it would be good to keep in mind some simple rules:

- Classify spare parts based on their importance. For example, critical spare parts that could cause production downtime if unavailable, regularly used spare parts, and less frequent spare parts.

- Establish minimum and maximum stock levels for each component. Critical parts may require higher stock levels.

- Use a warehouse management information system (such as an ERP) that allows you to track inventory in real time, record exits and entrances, and predict future needs.

- Perform periodic inventory reviews to ensure stock levels are adequate and to identify any obsolete or excess spares.

- Ensure that spare parts are of high quality and that they are stored in suitable conditions to prevent damage or deterioration.

- Place the most used spare parts in easily accessible places. Use clear labeling and coding systems to quickly find what you need.

- Establish relationships with reliable suppliers who can provide quality spare parts quickly if necessary.

- Track costs associated with parts storage, including purchasing, storage and obsolescence costs.

- Consider having an emergency kit for unexpected downtime , containing the most critical tools and spare parts.

What are the differences between costs and results between an internal or external maintenance service

The option between maintaining an internal maintenance service or outsourcing it , in companies with continuous cycle production, can have impacts on both costs and results.

It is difficult to give an absolute suggestion on which type of maintenance organization is advisable for the company, as the type of production, the complexity of the systems, their size, the commercial diffusion or otherwise of the production machines and many other factors.

Additionally, many companies take a hybrid approach , maintaining a small in-house team for day-to-day needs and partnering with external vendors for specialized needs or large-scale projects.

We can, in general, see the pros and cons of an internal maintenance structure within the company or one on call:

Internal Maintenance

- Internal staff involves fixed costs such as salaries, benefits, training and equipment.

- The company may need to invest in equipment, tools and specific training for the maintenance team.

- The internal staff has an in-depth knowledge of the systems and their specific needs.

- In the event of a breakdown, the internal team can intervene immediately, reducing downtime.

- The internal team is more aligned with the company's goals and cultures.

External Maintenance

- Costs are variable and are based on the work actually performed. There may be no fixed costs.

- Outsourcing can reduce overall costs, especially if maintenance needs are sporadic.

- External companies often have extensive experience in specific maintenance fields and can provide innovative solutions.

- The company can choose between different suppliers and services, based on needs.

- There may be a longer response time in case of failures, unless you have a specific service agreement.

- The company may have less direct control over the quality and timing of the work performed.

How to amortize and charge maintenance service costs to the budget

The accounting and amortization of maintenance service costs in a company with continuous production is an essential process to ensure correct representation of costs in the financial statements.

This begins by classifying maintenance costs , which can be direct (such as spare parts or technician working hours) or indirect (such as maintenance service administration).

Costs related to routine maintenance activities, which keep the equipment in normal operating condition, are often recorded as operating costs. They are charged to the income statement in the year in which they are incurred.

If maintenance extends the life of the equipment or increases its value, these costs can be capitalized as improvements and depreciated over time.

Once capitalized, they are depreciated on the income statement over the useful life of the improved equipment or asset.

The duration and method of amortization (for example, straight-line or decreasing) should be consistent with the company's accounting policies.

Additionally, recording maintenance costs in your accounting system ensures they are attributed to the appropriate periods. This helps in cost analysis and financial planning.

Periodically, you should analyze your maintenance expenses to identify trends, evaluate the effectiveness of your maintenance activities, and determine if there are opportunities to improve efficiency.

Ensure that budget managers and other relevant functions are informed about maintenance costs and how they are accounted for. This ensures more precise financial planning and forecasting.