Let’s be CLAIR:

Maintenance
Matters
Every business needs its
equipment – from prime
movers and forklifts to
personal computers and
tablets – to be available for
use whenever required.
“Maintenance is a way to maintain
a certain function of an asset whilst
also maximising the residual value
of the asset. It’s essentially just
a mixture of those two functions.”
— Hayden Reed
Mobile Plant & Equipment Risk Engineer, NTI
L E T ’ S B E C L A I R : M A I N T E N A N C E M AT T E R
Further, all your equipment must be in good working
order so operators can complete their tasks without
breakdowns or other complications.
The key to keeping your plant and equipment in good
working order is an effective maintenance schedule.
Good maintenance has plenty of benefits. It maximises
capital expenditure (CapEx) and return on investment
(ROI). It saves time and money by minimising downtime
and ensuring reliable service to staff, customers and
consumers.
This ebook covers the key terms and principles
of maintenance, including the CLAIR approach:
clean, lubricate, adjust, inspect and repair.
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Key concepts
Maximising ROI depends strongly on good maintenance. If a vehicle or other
equipment is unusable, it can’t generate revenue; it’s a cost. Here are some
essential maintenance concepts and terms.

Run to fail (RTF): Preventive maintenance (PM): Condition monitoring:

is generally used for electrical
components as they fail without notice,
and it’s hard to predict their usable life.
It’s not a great strategy for mechanical
components, but RTF can be used where
the risk of damage or disruption from
a failure is low.
occurs when you service assets before
breakdown. It can be scheduled by
calendar or usage time. It’s critical that
the service operator is sufficiently
qualified and experienced to recognise
signs of undue wear or potential failure.
uses observations of your equipment
to forecast when parts will reach the
end of their usable life. Examples include
oil sampling, thermography, vibration
monitoring, non-destructive testing
(NDT) and performance monitoring.

Predictive Maintenance: Total cost of ownership (TCO):

involves using data on wear and failures
to identify the optimal time to perform
maintenance activities. As internet-
connected sensors become cheaper, and
data analytics tools more sophisticated,
predictive maintenance will become
more common.
considers all costs for a piece
of equipment over its entire lifespan.
It includes fixed costs (e.g. finance
and insurance) and variable costs
(e.g. repairs and maintenance).

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Maintenance costs
Any equipment owner or operator
needs to understand that maintenance
is an investment (increasing ROI and
reducing TCO), not a cost. Skimping on
maintenance can lead to unpredictable
failures and revenue losses.
“Managing maintenance costs is vital to your long-
term success. Trying to minimise maintenance costs
will most likely result in higher TCO. Aiming to achieve
the lowest cost per hour over the entire life of the
asset should enable you to make a long term view
of expenditure.”
— Hayden Reed
Mobile Plant & Equipment Risk Engineer, NTI
L E T ’ S B E C L A I R : M A I N T E N A N C E M AT T E R
You may realise costs for your equipment as they are expensed.
The downside to this is that it can lead to thinking equipment costs
are incurred as lump sums. In reality, these costs are incurred as the
equipment wears. Resetting to a ‘cost per hour’ format enables you
to have a deeper understanding.
The key is to establish the TCO. Then you can calculate an effective cost
per hour at differing points in time and identify the asset’s optimal life
cycle and the best time for disposal.
Numerous studies have tried to identify the costs of breakdowns versus
maintenance. Figures vary, but RTF is generally held to be four to fifteen
times more expensive than PM. Such figures account for business
disruptions and rectification costs as well as direct costs such as
equipment repairs.
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Maintenance records
Keeping records of all your business activities is essential.

Maintenance records can

Key records to keep include: You might also find it helpful to track:
give insight into business
performance; be used for
tenders; are priceless if an >> Service sheets (see next page) >> Oil, fuel and consumables used
incident is investigated;
>> Work order history including defects >> Breakdown and equipment
increase equipment resale
identified, breakdowns carried out availability data
value; and can assist with
or other PM tasks
warranty claims. >> Labour used to maintain equipment
>> Inspections or certificates
>> Equipment utilisation data
(including third-party issued)

>> Component change-out data

“A well-maintained asset is much safer than As a rule of thumb, keep records for seven years (for tax purposes).
one that isn’t well maintained.” However, your business may have other requirements that mandate
keeping records for longer. Generally, maintenance records aren’t
— Hayden Reed valuable after you’ve disposed of a piece of equipment, but keeping
Mobile Plant & Equipment Risk Engineer, NTI digital copies (such as scans) is a sensible precaution in the event
of litigation or dispute.

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Service sheets
Service sheets are usually checklists that help The original equipment manufacturer (OEM) will provide
maintenance staff ensure all maintenance tasks a service schedule, but this should only be regarded as
a starting point. Your business’s use and duty cycle,
are completed and recorded.
environment and other operational factors may warrant
Industry best practice is to have a sheet for each model additional or more frequent checks.
and series of machine.
Digital service sheets are an excellent way to ensure data
is continuously tracked and never lost. Storing blank sheets
Basic data to record on every sheet includes: electronically (for example, as a Word or PDF) document saves
time and space. After a service, the data can be entered into
>> Equipment year, make and model
your system or the document scanned.
>> Service date
>> SMU reading Another option is to use a tablet-based checklist. If you’re
sticking with paper, make sure it’s stored safely.
>> Name of persons or persons conducting the service

You may also find value in capturing further data, including: “The OEM schedule is a good place to start …
it’s a baseline. The application of your equipment
>> Site >> Next service date or interval
can vary that baseline either way and how the
>> Shift >> Measurements of component equipment’s operated as well.”
>> Service interval wear
>> Issues identified and their — Hayden Reed
>> Supervisor sign-off
status Mobile Plant & Equipment Risk Engineer, NTI
>> Parts used

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Basics of maintenance: CLAIR
Whether you are maintaining shovels,
chainsaws, or prime movers, any
great maintenance strategy’s basic
components are clean, lubricate, adjust,
inspect and repair (CLAIR). All tasks
undertaken stem from one of these
concepts.
Regular checks, cleaning and lubricating help
you identify any problems that could arise.”
— Hayden Reed
Mobile Plant & Equipment Risk Engineer, NTI
L E T ’ S B E C L A I R : M A I N T E N A N C E M AT T E R
Clean:
It’s easier to identify potential faults on clean
equipment (and it’s less likely to catch fire or break
down. Psychology also plays a role as operators
using clean and tidy machines treat them with
much more care than a dirty or banged-up unit.
It’s a simple, low-cost practice that also presents
your business to clients in a positive light.
Lubricate:
Most modern equipment no longer requires
continuous lubrication. However, it remains critical
to keeping your equipment in good condition.
If lubrication is inadequate, contact between metal
surfaces can occur. The damage will be almost
instantaneous, and it can dramatically reduce the
equipment’s operating life.
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Basics of maintenance: CLAIR
Adjust:
It’s vital to maintain adjustment
of components within manufacturer
specifications. Doing so will prolong
service life and reduce running costs.
For example, correctly adjusted
tyres reduce driveline load and fuel
consumption while also maximising
their useful life.
“Scheduled inspections give you a chance to clean and remove debris and keep the asset in good condition.”
— Hayden Reed
Mobile Plant & Equipment Risk Engineer, NTI
L E T ’ S B E C L A I R : M A I N T E N A N C E M AT T E R
Inspect:
Inspections (by experienced and
observant personnel) can prevent
breakdowns. Arguably the most
important of these is the equipment
operator’s daily pre-start inspection.
Further inspections are best carried
out by skilled maintenance personnel
at scheduled services to identify any
pending issues.
Repair:
Repairs are best undertaken by
experienced maintenance personnel
with a thorough knowledge of the
equipment, as they will be able to
advise the most cost-effective solutions.
A structured repair process ensures
that all maintenance issues raised are
planned and completed before the
machine breaks down and further
damage is done.
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NTI.MYC.1.1.24052021

This document provides information and is a guide only. Whilst all due care has been taken, you must not rely on the
information as an alternative to legal, legislated regulatory and compliance requirements associated with your business
activities. Insurance products are provided by National Transport Insurance, a joint venture of the insurers Insurance
Australia Limited trading as CGU Insurance ABN 11 000 016 722 AFSL 227681 and AAI Limited trading as Vero Insurance
ABN 48 005 297 807 AFSL 230859 each holding a 50% share. National Transport Insurance is administered on behalf
of the insurers by its manager NTI Limited ABN 84 000 746 109 AFSL 23724.