Hydraulic Asset Management: Balancing Cost, Performance, and Maintenance Risk

Effectively carrying out hydraulic asset management is key to optimizing hydraulic assets’ lifecycle. These assets may include original equipment manufacturer (OEM) or aftermarket hydraulic cylinders, pumps, valves, pipes, besides other hydraulic elements. Managing them typically involves different activities, for example, inventory monitoring, predictive maintenance, and preventive maintenance.

Efficient management is only possible when businesses are able to balance three key aspects concerning such assets: cost, performance, and maintenance risk. While it can be tricky for many companies, using effective strategies can enable companies to avoid hefty repair bills, unanticipated machinery failures and ensure optimal performance without exceeding the budget.  If you are looking to know about these hydraulic equipment maintenance strategies and the key to achieving cost-performance balance, you are in the right place. 

In this article, we’ll cover some key aspects to understand how to better manage hydraulic assets. By the end of this article, you will have a clear idea of how to ensure hydraulic system optimization and bring down the total cost of ownership of these assets. 

In the case of these assets, strategic oversight is imperative because of the following reasons: 

• Minimized Safety Risks: Hydraulicasset failures can result in serious injuries and even death. Hence, strategic oversight is vital to avoid a mishap at the workplace.
• Increased Profitability And Cost Control: Preventive maintenance, which may include periodic fluid examination and asset component replacement, can help prevent any serious damage or hefty repair bills. Moreover, preventive measures can ensure optimal asset performance.
• Continuous Operations: Ensuring proper maintenance of such assets, regardless of the use of aftermarket solutions, results in reliable asset performance and prevents operational disruptions.  

When carrying out hydraulic asset management, organizations often have to make a tough choice. Either they can invest in assets that can deliver high performance, or they can settle for cheaper options that offer lower efficiency and less reliability. The key is to find the right balance so that the organization can get optimized performance without having to overspend. 

Companies can achieve this balance through the following measures:

• Asset Lifecycle Cost Analysis: Businesses need to evaluate the overall ownership cost, not the purchase price only. For that, they must factor in the maintenance costs, repair bills, the disposal costs, etc. 
• Building An Effective Strategy: Organizations need to have a clear and effective hydraulic asset management strategy to balance risk, cost, and performance. This balance can help ensure that the asset can help the company achieve its set objectives.
• Condition Tracking: Checking hydraulic fuel levels, monitoring for worn components, and other preventive measures can help companies keep the asset-related check costs, like repairs, in check, even if they do not opt for the equipment of the highest quality.

For keeping hydraulic assets in optimal condition and maximizing their lifespan, preventive maintenance is a non-negotiable. Sticking to a maintenance schedule enables organizations to identify any issues concerning assets early and address them with straightforward and quick fixes. This proactive approach concerning hydraulic asset management can help avoid stress, save time, and steer clear of expensive repairs. 

Testing such assets on a regular basis provides businesses with a clear idea of what is normal. This, in turn, helps organizations identify discrepancies if anything changes. 

Some risks of ignoring maintenance are as follows: 

• Sudden or steady pressure loss
• Fires and overheating 
• Sudden shutdown or loss of control 

Hydraulic systems generally operate under significant pressure to generate strong forces. Hence, any failure all of a sudden can be dangerous. Thus, neglecting maintenance can jeopardize safety and health for the employees working around and with them.  

The cost of hydraulic asset maintenance can climb quickly. Some common equipment maintenance strategies to reduce expenses include monitoring expenses and following a fixed maintenance schedule to address or prevent even minor issues. Moreover, companies may even replace outdated equipment to avoid expensive repairs. 

Despite these measures, a company might not be able to stick to its budget. To combat this issue, they may consider opting for aftermarket options. Indeed, third-party manufacturers in the market sell parts at a lower cost than OEM manufacturers.  Moreover, the increased competition among after-market component sellers drives down the component prices and enhances availability. Hence, by using high-quality aftermarket components and parts, organizations can make significant cost savings. 

One can look at maintenance risk as a financial decision. Think of it like this: maintenance risk management is like purchasing an insurance policy. It can help companies avoid unforeseen expenses that may arise in the future. Individuals can also look at it like investment decisions. 

Indeed, imagine how investors assess the risks and returns concerning an investment. Similarly, companies must estimate the potential losses that may result from improper hydraulic asset management and compare them against the cost of preventive maintenance. Looking at maintenance from this standpoint can help organizations remain proactive, stabilize operations, and boost cost savings.

In the context of hydraulic assets, portfolio thinking means managing a collection of such assets strategically, like a portfolio of investments, rather than managing them individually. In the case of such an approach, businesses have to assess the performance of every asset to figure out which ones would require higher investment, lower maintenance, or replacement for boosting the overall performance. 

Based on their assessment, they can make the necessary adjustments. Simply put, this approach can help ensure that the business is allocating the assets prudently to improve cost efficiency and boost performance simultaneously, thus ensuring a balance between the total cost of hydraulic asset ownership and the returns from it. 

Hydraulic asset management offers a wide range of benefits across different industries. These advantages can enhance the sustainability and efficiency of organizations. By adopting a proactive approach toward maintenance, organizations can prevent unanticipated asset failures and reduce downtime. This, in turn, enables organizations to keep their operations stable and remain on track to achieve their goals.