Work Orders in Maintenance Management

The Critical Role of Work Orders in Maintenance Management

The average maintenance department processes approximately 45 work orders each week. This adds up to more than 2,200 work orders annually, or a new request every four hours. The impact of these work orders on your business is significant, and they play a crucial role in maintaining operational efficiency.

However, work orders often don’t receive the attention they deserve to unlock their full potential. Traditional work order metrics, such as the percentage of planned maintenance, are helpful for maintenance teams but don’t fully capture the broader business impact of work orders. As a result, many companies struggle to make informed decisions about hiring, capital expenditures, and customer commitments because they lack insight into whether work is being done correctly.

It’s time to shift our perspective on work orders. Instead of viewing them as just another task on a to-do list, we should recognize that, when analyzed collectively, work orders offer valuable insights into human behavior, asset performance, processes, and more.

The Business Risks of Poor Work Order Management

Ineffective work order processes can lead to minor maintenance issues spiraling into major problems. For instance, one company experienced significant inventory discrepancies and unnecessary expenses due to poor work order practices.

Their maintenance team was only capturing a fraction of the actual work being done, with no failure analysis or proper documentation to support their mechanics. Another organization faced similar challenges, with workers spending nearly an hour at the end of their shifts writing detailed notes. This time-consuming process not only delayed the start of the next shift but also led to inefficiencies across the business.

These examples illustrate how poor work order management can have a ripple effect throughout an organization, causing problems far beyond the shop floor.

The Consequences of Inaccurate Records and Inventory Management

When departments like finance, purchasing, and maintenance operate with different sets of information—or no information at all—it can lead to several issues:

• Increased operating costs and reduced efficiency: Lack of necessary spare parts can cause unscheduled downtime, while excess inventory ties up resources and drives up costs.
• Inaccurate capital expenditure planning: Without proper context for inventory purchases, early signs of asset failure may be missed, leading to unpleasant surprises during budget reviews.
• Misallocated resources: Without a clear understanding of parts, failures, and performance, it’s impossible to allocate people, money, and tools where they are needed most.

The Impact of Inefficient Work Order Processes

Despite the challenges, good work order management can deliver substantial benefits:

• Increased productivity: Standardizing work order processes allowed one company to boost its productivity by 15% within three months, freeing up nearly two extra hours per shift for technicians to focus on their tasks.
• Reduced downtime: Another organization reduced downtime costs by tracking maintenance activities and costs through work orders, leading to significant savings.
• Improved asset performance: Data shows that optimizing work orders can lead to a 50% increase in asset performance on average.

Why Work Orders Deserve More Attention

Work orders are more than just routine tasks; they’re a vital part of a company’s operational strategy. Each work order represents a piece of a much larger puzzle that, when properly assembled, reveals critical insights into your business. However, many organizations fail to recognize this, treating work orders as mere administrative duties rather than strategic tools.

The reality is that a poorly managed work order process can have far-reaching consequences, not just for the maintenance team but for the entire organization. Without the right processes in place, work orders can lead to inefficiencies, increased costs, and even safety risks.

The Domino Effect of Bad Work Orders

Bad work orders don’t just stop at inefficiency; they create a domino effect that can disrupt your entire operation. For instance, without accurate and detailed work orders, maintenance teams are left without the necessary context to perform their tasks effectively. This often leads to incomplete or incorrect repairs, which in turn can cause equipment failures, production delays, and ultimately, financial losses.

In one case, a company faced significant issues due to poor work order practices. The maintenance team was only able to capture a portion of the actual work performed, resulting in missing inventory and unplanned downtime. The lack of proper documentation and failure analysis meant that the company was constantly playing catch-up, rather than proactively managing its assets.

Another company dealt with the inefficiency of workers spending excessive time writing up work orders at the end of their shifts. This not only reduced the time available for actual maintenance but also created communication gaps between shifts, further compounding the problem.

The Broader Impact on Business Operations

The effects of bad work orders extend beyond the maintenance department. When records are inaccurate or incomplete, it creates a disconnect between different departments. Finance, purchasing, and maintenance may end up working with different sets of data, leading to misaligned priorities and ineffective resource allocation.

For example:

• Operating Costs: Inaccurate work orders can result in an overstock of unnecessary parts or a shortage of critical components, both of which can drive up operating costs. Excess inventory ties up capital, while missing parts lead to costly downtime.
• Capital Expenditure Planning: Without proper work order data, it’s challenging to predict when assets will fail or require major repairs. This lack of foresight can lead to underfunded capital expenditure plans and unexpected expenses.
• Resource Allocation: Poor work order processes can obscure the true needs of different sites or assets, making it difficult to allocate resources such as personnel, training, and tools effectively.

Unlocking the Potential of Good Work Orders

The good news is that effective work order management can turn things around dramatically. By standardizing and optimizing work order processes, companies can achieve:

• Higher Productivity: Streamlined work order processes free up time for technicians to focus on their core tasks, leading to significant productivity gains. For instance, one company improved productivity by 15% in just three months by refining its work order process.
• Reduced Downtime: Companies that track maintenance activities and costs through well-managed work orders can identify patterns, anticipate issues, and reduce costly downtime. This proactive approach can lead to substantial savings and improved asset reliability.
• Enhanced Asset Performance: Data-driven work order management allows companies to optimize their maintenance strategies, leading to better asset performance and longevity. On average, companies can see a 50% improvement in asset performance by focusing on work order fundamentals.

Building a Strong Foundation for Work Orders

To fully harness the power of work orders, it’s essential to build a strong foundation. This means creating clear, standardized processes that ensure every work order is comprehensive, accurate, and actionable. By doing so, work orders can become a critical asset in your maintenance strategy, driving efficiency, reducing costs, and improving overall business performance.

As you refine your approach to work order management, remember that each work order is not just a task to be completed but a piece of valuable data that can provide insights into your operations. With the right approach, work orders can help you unlock new levels of efficiency and success for your business.

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