The Importance of Safety for Maximizing Lifetime Value

Date: 6/26/2023

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Crane Safety and Its Impact on Lifetime Value

Cranes and hoists are a fundamental part of manufacturing facilities and play a significant role in production. This equipment helps to increase productivity, reduce labor costs and improve product quality. However, they are also one of the most potentially risky parts of the facility, which is why crane safety is so vital. That’s why we consider safety one of our three key pillars of the total cost of ownership (TCO). In this article, we will explore the importance of crane safety and how it can impact the lifetime value of your equipment.


The Cost of Accidents

The safety of manufacturing equipment is crucial for the well-being of employees and the company’s long-term profitability. Safety issues in the workplace can lead to injuries, accidents and even fatalities, which can significantly impact the equipment's lifetime value.

Accidents involving cranes can be complicated for everyone involved, and the potential costs following an incident are huge. The cost of any accident, no matter how minor, is substantial. For example, an accident can result in the following:

  • Downtime: When an accident occurs, the crane may need to be taken out of service for repairs, resulting in downtime and lost productivity. This can be costly in terms of lost revenue and repair expenses. The longer the downtime, the greater the impact on the lifetime value of the crane or hoist.
  • Maintenance Costs: When equipment is not operated safely, it can become damaged or worn out more quickly. This can lead to increased maintenance costs as the equipment needs to be repaired or replaced more frequently. Preventive and predictive maintenance can help you avoid these issues, but it is essential to ensure that safety protocols are followed during the maintenance process to prevent accidents or injuries.
  • Lost Productivity: Even if no one is hurt, an accident can cause delays and disruptions to the production process, resulting in lost productivity. The lost time can be challenging to make up or involve overtime that will add to operating expenses.
  • Employee morale: Safety also impacts the company culture. When employees feel unsafe at work, it can lead to low morale and a high turnover rate. This can result in increased training costs as new employees need to be hired and trained to operate the equipment. Additionally, low morale can lead to decreased productivity and a lack of attention to detail, which can impact product quality and ultimately affect the company’s reputation.
  • Increased Liability Costs: Accidents can increase liability costs, including workers' compensation claims, legal fees and insurance premiums.
  • Reputational Damage: Safety concerns can impact the reputation of a business. In today's world, customers are becoming more aware of the importance of safety in the workplace, and they are more likely to support companies that prioritize safety. A business with a reputation for safety concerns may find it difficult to attract customers, leading to a decrease in revenue and the lifetime value of the equipment.


Investing in Proper Crane Safety Measures

Investing in proper crane safety measures can help prevent accidents, reduce downtime and minimize liability costs. Some steps that can be implemented include:

  • Preventive and predictive maintenance can help identify potential safety issues before they become accidents.
  • Proper safety training for operators and workers can help prevent accidents caused by human error.
  • Implementing safety protocols and procedures such as daily safety checks can help prevent accidents and minimize the potential costs associated with accidents.


Impact on Lifetime Value and TCO

Safety is critical for increasing the lifetime value and reducing the TCO of cranes and hoists. By prioritizing safety, you can protect your employees and equipment, reduce expenses and increase profitability in the long run. Some ways that safety can impact the lifetime value and TCO of cranes and hoists include:

  • Increased Lifespan of Equipment: Proper maintenance and safety measures can help prolong the lifespan of the equipment, increasing its lifetime value.
  • Reduced Downtime: Preventing accidents can help reduce downtime, increasing the productivity of the equipment and its lifetime value.
  • Reduced Liability Costs: Implementing safety measures can help reduce liability costs, decreasing the TCO of the equipment.


Prioritize Safety with the Hoist Monitor® and OLI App

By prioritizing safety, you can increase the lifetime value and reduce the TCO of cranes and hoists, making them a valuable investment for your manufacturing facility.

R&M's HoistMonitor®, HoistMonitor Enclave and HoistWatch devices collect real-time data on how the equipment is used and protects it from overloads, faults and motor overheating. When connected wirelessly to the OLI app, you can access this information from a handheld device in a matter of seconds.

Not only does the OLI app provide real-time information about your hoist, but it also keeps a data log for its entire lifecycle. Whether scheduling preventive maintenance or looking into a part failure, you can easily access data from the floor to find out exactly what happened. Without OLI, you would have to shut down the crane and physically open the panel to get the needed data. OLI not only saves you downtime, it also makes your factory floor safer.

Want to know more about our safety features that increase lifetime value and reduce TCO? Contact us online or give us a call at 800-955-9967.