One post tagged with "roi"

Every maintenance manager knows predictive maintenance works. The evidence is overwhelming — decades of industry data showing 25-30% cost reductions, 70-75% fewer breakdowns, and 10-20% equipment life extension. The U.S. Department of Energy puts predictive maintenance costs at $4-8 per horsepower annually versus $15-18 for reactive maintenance.

So why do most predictive maintenance proposals die in the CFO's office?

Because maintenance managers present technology features. CFOs want financial returns. The gap between "this platform monitors vibration signatures using machine learning" and "this investment returns $847,000 in avoided costs over 36 months with a 14-month payback period" is the gap between a rejected proposal and an approved purchase order.

This guide provides the formulas, benchmarks, and framework to build a predictive maintenance business case that speaks the CFO's language.