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10 Apr 2018

The Rising Cost of Compliance Issues

April 10, 2018Blog

Today, asset-intensive companies are struggling with compliance issues that result in high costs. From verifying that maintenance plans and inspection tasks that are programmed into an EAM conform with corporate performance standards to ensuring that you can satisfy corporate audit requirements with an appropriate paper trail, compliance issues take time and effort. Most asset-intensive companies that work with EAM solutions and third-party contractors struggle with compliance. Asset-Intensive companies are exposed to these issues on a wide scale. So why exactly do these problems persist?

According to Thomson Reutors, 2017 was a pivot point for the cost of compliance. Here are some numbers:

  • Companies grew their compliance teams by 42%
  • 60% of companies are expected their senior skilled staff to cost more in 2017

EAM Solutions

EAM solutions are not designed to easily visualize, review and edit the maintenance plans associated with locations and assets. You are not able to click on an asset or location and see the associated maintenance plans and performance standards easily. Why? Because maintenance plans are not associated with performance standards in the EAM. There is no simple way to search for gaps in the data or all equipment associated to the same performance standard. You cannot automate the process, do it in bulk nor have a maintenance expert edit the details in an easy-to-use interface. There is no way to document which assets and locations have been verified as compliant in the EAM solution.

Third-Party Contracting

So why not just hire a third-party contractor? According to the Reutors report, 28% of companies chose to outsource their compliance process in 2017 and will continue to rise. However, a key issue with outsourcing has been in regard to managing and overseeing their work. As maintenance domain experts, they are typically hired to make recommendations on performance standards and ensure they are applied appropriately to locations and assets. They do not manage compliance. In addition, if they are not using productivity tools, this will also result in high service costs.

What can you do?

The NRX AssetHub platform software will completely change the way your company deals with compliance issues. Our software solutions load, assess, visualize and report on EAM data quality. Configured with custom fields and filters, NRX AssetHub helps automate the process of associating performance standards with locations and assets. It also confirms that performance standards are correctly associated, maintenance plans are highlighted properly and the process is documented accurately.

Want to Learn More?

NRX AssetHub provides maintenance and reliability professionals at asset-intensive businesses with world-class software solutions for analyzing, visualizing, building, editing, organizing, approving, and sustaining high-quality Asset and Maintenance Data for the Enterprise Asset Management (EAM) and Computerized Maintenance Management (CMMS) systems. We help our customers get their CMMS data right. To learn more about how NRX AssetHub can help your organization, please contact us at 1-877-603-4679 or book a demo today!

 

Sources:

English, S., & Hammond, S. (2017, December 06). Cost of Compliance Report 2017: Is there a new risk approach?| Inside Financial & Risk Thomson Reuters blog. Retrieved April 06, 2018, from https://blogs.thomsonreuters.com/financial-risk/risk-management-compliance/cost-of-compliance-report-2017-is-there-a-new-risk-approach/

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