Maximizing Lifetime Value: The Role of Productivity

Date: 7/6/2023

Previous Blog: The Importance of Safety for Maximizing Lifetime Value


Productivity and Its Impact on Lifetime Value

Manufacturing, mining, automotive, food processing and many more industries rely on hoists and cranes to keep facilities humming. Unexpected downtime, outages and equipment failure can result in significant setbacks, reducing productivity and profits. All of this affects the lifetime value of the equipment.


The Cost of Lost Productivity

Reduced productivity can have a direct impact on the lifetime value of hoists and cranes in several ways, such as:

  • Decreased Utilization: When hoists and cranes operate below their optimal productivity levels, their utilization rate drops, leading to underutilization of the investment made when acquiring the hoist or crane. This can result in a lower return on investment and reduced lifetime value.
  • Increased Downtime: Reduced productivity could be caused by increased downtime of hoists and cranes. More extended periods of downtime mean that the equipment is not available for productive use, causing delays in operations, missed deadlines and decreased overall efficiency. Increased downtime can result in revenue loss and negatively impact the lifetime value of the equipment.
  • Inefficient Resource Allocation: When hoists and cranes are not operating at their maximum productivity, it indicates inefficient resource allocation. The equipment may not be optimally utilized, wasting labor, time and other resources. Inefficient resource allocation reduces the efficiency and cost-effectiveness of operations, potentially increasing overall costs and reducing the lifetime value of the equipment.
  • Impact on Throughput and Output: Hoists and cranes play a crucial role in material handling, and lifting processes. Lower productivity levels can result in slower material handling, decreased production output and longer lead times. This can have a ripple effect throughout the supply chain, affecting customer satisfaction, order fulfillment and overall revenue generation. Reduced throughput and output can ultimately lower the lifetime value of the equipment.
  • Customer Dissatisfaction: Decreased productivity of hoists and cranes can lead to delays, errors and inefficiencies in operations. This can negatively impact customer satisfaction and the overall customer experience. Dissatisfied customers may be less likely to continue doing business with the organization, resulting in lost revenue and reduced customer lifetime value. Customer dissatisfaction can have long-term consequences for the perception of the company and its ability to retain customers.


Benefits of Improving Productivity on Lifetime Value

Improving productivity brings a multitude of benefits that extend beyond immediate operational efficiency and profitability. One significant advantage lies in the long-term impact on the lifetime value of equipment and overall business sustainability.

By focusing on enhancing productivity, organizations can maximize the utilization of resources, reduce downtime, streamline processes and achieve higher output and efficiency. These improvements translate into increased revenue generation, reduced costs, enhanced customer satisfaction and a greater return on investment. Ultimately, a strong emphasis on productivity improves short-term performance and significantly boosts the lifetime value of assets, ensuring long-lasting success and competitiveness in the marketplace.

To improve productivity and the total lifetime value of cranes and hoists, consider the following strategies:

  • Regular Maintenance and Inspections: Implement a comprehensive program for cranes and hoists, including regular inspections, proactive maintenance and timely repairs. This helps identify and address issues early on, minimizing breakdowns and reducing downtime.
  • Optimize Equipment Utilization: Analyze the utilization of cranes and hoists to identify opportunities for optimization. Evaluate scheduling, equipment allocation and workflow processes to ensure the equipment is used efficiently. This can involve coordinating tasks, minimizing idle time and optimizing equipment usage to maximize productivity.
  • Data Monitoring and Analytics: Implement data monitoring systems to gather performance data and usage statistics of cranes and hoists. Analyze the data to identify patterns, identify areas for improvement and make informed decisions. Data analytics can provide insights into productivity bottlenecks, maintenance needs and opportunities for optimization.
  • Safety Measures and Risk Mitigation: Prioritize safety measures to reduce the risk of accidents, injuries and equipment damage. Ensure compliance with safety regulations, provide proper safety equipment and implement safety protocols. By maintaining a safe working environment, the likelihood of disruptions due to accidents or equipment failures is minimized.
  • Collaboration and Communication: Foster collaboration and effective communication among crane and hoist operations teams. Improve coordination between operators, maintenance personnel and management to ensure seamless workflow and timely resolution of issues. Clear communication channels and efficient collaboration contribute to improved productivity and reduced downtime.


Prioritize Productivity with the HoistMonitor® and OLI App

Facilities that are efficient and productive prioritize their equipment to avoid downtime. They can achieve this through scheduled inspections, proactive maintenance and crane inspection technology like R&M’s OLI app, which works with the HoistMonitor to provide real-time data on your hoist.

The OLI app allows you to easily access data on your hoist's condition, events and usage. The app presents raw data in an easily understood format on your iOS or Android device. With the OLI app, you can even calculate the Safe Working Period of your hoist, hoist brake and contactors to see how much time is left before maintenance or replacement is needed.

The app provides up-to-date and easy-to-read data on your hoist's full load hours, max full load hours, hoist cycles, temperature, current load and runtime - all at your fingertips. Thanks to this real-time data, you can prevent downtime and keep your facility running smoothly.

To learn how a hoist monitoring system can boost productivity and increase the lifetime value of your cranes, contact us online or call us at 800-955-9967.