All types of business equipment—from machinery and vehicles to computer hardware and technology—are susceptible to wear and tear over time. This can lead to decreased efficiency, reduced productivity, and downtime due to breakdowns. Equipment downtime can impact a business's production, resulting in lost revenue. Moreover, it can lead to unhappy customers and negatively impact a brand.
In this Huddle Business Capital blog article, we discuss various strategies to reduce equipment downtime. By understanding how to maintain equipment and identify and address issues, you can minimize downtime and ensure smoother operations.
Conduct an audit of all business equipment.
An equipment audit is one of the most overlooked strategies for reducing equipment downtime. However, it can help identify areas that require attention, such as maintenance and outdated equipment. It involves making a list of each piece of equipment, including purchase dates, vendor or supplier names, prices, usage history, and maintenance records.
You can input this information into a spreadsheet or equipment audit software program. Once your initial equipment audit is complete, you should review it regularly to identify any necessary updates or improvements.
While conducting an audit of business equipment can be time-consuming—mainly if your company uses a wide range of equipment—it is essential not to ignore this process.
Schedule regular maintenance.
While your business equipment may be functioning effectively today, it's important to recognize that this does not guarantee it will remain problem-free in the future. To prevent potential issues, you should schedule regular inspections and maintenance for your equipment.
A skilled service professional can examine each component, identify any issues, make necessary cleanings and adjustments, and ensure that everything functions optimally. By taking proactive measures now, you can enjoy peace of mind and extend the lifespan of your equipment.
Evaluate your company's technology.
A computer malfunction, server crash, or software conflict can bring your business's productivity to a halt. These technology-related issues can lead to systems becoming inaccessible, leaving both you and your employees unable to perform tasks. The disruption can slow down operations, impact customer service, and ultimately hinder business growth.
Similar to assets such as machinery and vehicles, technology also requires periodic evaluation and updates. If your business has an information technology (IT) manager on staff, ensure that they check your hardware and software. In addition to updating operating systems and software, an IT manager can pinpoint and correct issues such as overheating, malware, and viruses. If you don't have an IT manager on your staff, consider outsourcing your IT needs to a third-party professional.
Ensure that your employees use equipment properly.
Whether it's basic office equipment, such as computers or printers, or specialized equipment like machinery, packaging machines, and construction vehicles, they need to be used safely and effectively.
Training sessions can provide you and your employees with the knowledge and skills needed to use each piece of equipment properly and with confidence.
Several options for employee training are available. Some companies specialize in training for more complex equipment, such as forklifts, conveyor belts, welding machines, concrete mixing trucks, and tractors, which require both operational and safety training. Next, many equipment vendors and suppliers offer complimentary and paid training options for the equipment they sell. Lastly, third-party trainers are available to visit your business and conduct on-site training sessions.
Track equipment downtime.
In the unfortunate event that one or more pieces of your business equipment malfunction, it is wise to log the incident into your spreadsheet or equipment audit software program. Be sure to include details such as the duration of the equipment downtime, as well as any information regarding the cause of the malfunction. If a service technician was involved, write down their findings and any repairs made, along with the associated costs.
Tracking equipment downtime is a good method for evaluating equipment performance and identifying patterns that may impact maintenance plans in the future.
Replace malfunctioning equipment.
If you have business equipment that is not functioning properly, continues to break down, or is too expensive to repair, it may be time to replace it. Upgrading to more reliable equipment can enhance productivity and save you money in the long run by reducing downtime and repair costs.
Buying equipment outright can be expensive, but there are alternatives to a big one-time purchase. These include equipment financing, also known as an equipment loan. When you finance equipment, you receive a lump sum of funding to purchase the equipment, and you repay the amount borrowed, plus interest, over a specified period. Once you fulfill your payment obligations, you own the equipment.
Another alternative to a cash purchase is equipment leasing. When you lease equipment, you make monthly lease payments over a predetermined time frame to use the equipment. When the lease term ends, you simply return the equipment. However, you may be able to buy the equipment for its fair market value, renew the lease for another term, or upgrade to a new make and model. Just ask your lender for their end-of-lease options.
Disclaimer.
This Huddle Business Capital blog article is purely educational and contains general information and opinions; it is not intended to provide advice or recommendations of any kind.
