What is the actual cost of equipment failure?
The prospect of an equipment failure is enough to keep any IT professional up at night. Organizations rely on their hardware to work optimally at all times to support critical business processes and data, but when something goes wrong, the consequences can be dire.
Let’s take a closer look at the real cost that you might be paying for an equipment failure.
Delayed investments increase expenses
Businesses often operate on tight budgets, making it difficult to address unforeseen issues. It’s easy to see a piece of hardware working effectively and thinking that it doesn’t need to be fixed. However, an industry survey found that delaying investment in equipment to the point of failure can cost 10 times higher than making investments in advance, HydroWorld reported. In some cases, parts might have to be expedited, which often carries a high price tag and can delay processes further if any issues emerge along the way. Failures themselves will bring downtime and other service interruptions, which might mean missing out on revenue opportunities.
Broken equipment frustrates employees and customers
If you don’t have a proper maintenance plan in place, it’s only a matter of time before hardware starts to break down. Sometimes, numerous pieces of equipment will fail at once, creating major problems. Wright Commercial Products noted that hardware failures take a high toll on employees, as it means that they are constantly unable to complete their duties. This also impacts your reputation with customers. Consumers might find business elsewhere, creating a huge financial hit with the loss.
“Preventive maintenance will eliminate the prices associated with expedited shipments and operational interruptions.”
Maintain regularly, repair and replace as needed
The costs of equipment failure and associated downtime is far too much for organizations, particularly when these situations can be minimized or avoided entirely. In many cases, failures happen when businesses don’t have an established preventive maintenance plan in place. This type of strategy is becoming more important to ensure that any issues are spotted earlier, allowing companies to make the necessary repairs and order parts without feeling the need to rush. Preventive maintenance will eliminate the prices associated with expedited shipments and operational interruptions.
As part of the preventive maintenance plan, organizations must determine what criteria is needed to repair or replace the equipment. Facilities.net noted that if the repair cost is more than 50 to 60 percent of the cost of a new part, it should be replaced rather than repaired. This will not only be more cost-effective but also help avoid issues in the future.
Equipment failure is becoming more costly for organizations, and it’s important that business leaders take action to prevent these incidents. By implementing an uninterruptible power supply unit and establishing a preventive maintenance schedule, companies will ensure that they catch issues quickly and that their power will be seamlessly transitioned in the event of an emergency. For more information on preventing equipment failures, contact ECS today.