The role of maintenance in improving companies' productivity and profitability

This paper illustrates how an effective maintenance policy could influence the productivity and profitability of a manufacturing process. It was possible to show how changes in the productivity affect profit, separately from the effects of changes in the uncontrollable factors, i.e. price recovery. The main results of the case study performed at a Swedish papermill showed that a paper-mill machine could, ideally, generate extra profit of at least 7.8 million Swedish kronor (SEK) (approximately US$ 0.975 million) per year, i.e. 12.5% of its yearly maintenance budget, if it avoids all unplanned stoppages and bad quality production due to maintenance-related causes. Thus, maintenance is not a cost centre, but a profit generating function. (c) 2006 Elsevier B.V. All rights reserved.