What is Operations and Maintenance (O&M)?

Running a facility isn’t just about keeping things moving but also about creating harmony between people and machines. Both need to operate at their best, free from safety concerns, to keep everything running smoothly. That’s where Operations and Maintenance (O&M) come in. These two practices tackle different aspects of the job but work hand-in-hand toward the same goal: ensuring your business runs efficiently while hitting its objectives.

What are Operations?

Think of operations as the engine room of your business. It’s where all the moving parts come together to keep the train chugging along. From delivering services to manufacturing products, operations cover the daily activities that keep your business functional.

But here’s the kicker: operations aren’t just one thing—it’s a collection of tasks and processes working in sync. And they all share a common goal of driving growth and boosting revenue.

In other words, Operations consist of all the processes and components a company needs to successfully deliver a product or a service. These include:

• Production and Delivery: This subsection of operations handles the creation and delivery of whatever product or service a company offers. For example, a bakery produces fresh loaves every morning (production) and ensures they’re displayed on shelves for customers (delivery).
• Marketing and Sales: This gets the customer interested in the product and converts that interest into an actual sale.
• Financial Management: Poor money management is the downfall of many newer businesses. Financial management helps with expenses, generating reports, and ensuring profitability.
• Human Resources (HR): The backbone of every industry, on a fundamental level, is the people within it. Hiring, training, and managing employees are important operational tasks handled by HR.
• Supply Chain and Inventory: Once a business has the above points working in its favor, supply chain and inventory help meet demand without overstocking or understocking.

What is Maintenance?

Maintenance is all about taking care of business equipment or assets to extend their lifespan as much as possible while retaining maximum functionality. This involves regular inspections, repairs, and servicing to make sure small issues are fixed before they snowball into bigger problems that could lead to a breakdown. It also helps maintain safety conditions for employees and machinery involved.

Here are the different types of maintenance procedures:

• Preventive Maintenance
• Corrective Maintenance
• Predictive Maintenance
• Routine Maintenance

Let’s take the example of a fleet to understand maintenance better. In this context, maintenance refers to the regular care and repair of the trucks or cars that make up the fleet. The goal is to keep them running in good condition, maintain safety on the roads, and avoid breakdowns.

This would involve preventive maintenance, where routine checks and servicing are done before any issues arise, and corrective maintenance, which occurs when a vehicle breaks down and needs urgent repairs.

With the help of the right data analytics and a capable CMMS program, predictive maintenance can anticipate potential problems and fix them before they snowball into major issues. There’s also routine maintenance, like cleaning and basic checks, that are done regularly, which does not particularly require technical expertise.

See how O&M practices boost efficiency and product quality in manufacturing.

Operations vs Maintenance: Key Differences

Alright, let’s talk about the difference between operations and maintenance. At first glance, they might seem like two parts of the same puzzle, but they have their roles in making sure things run smoothly. Here’s a breakdown of how they compare:

What Operations Focus On

Operations are all about the day-to-day activities of a business that helps deliver a product or service efficiently. Reel yourself back to the example we gave above. It is the engine room that keeps everything running. Responsibilities of operations include:

• Production: Managing the creation of goods or services, like assembling products or preparing food.
• Logistics: Managing the movement of materials and goods, ensuring that everything reaches customers on time.
• Customer Service: Dealing with customers and maintaining a positive relationship with them.
• Sales: The actual sale of a product or a service that helps the business grow and gain profits.

What are the key goals of operations? It is to optimize processes, making sure products or services are delivered on time and at the highest possible quality.

What Maintenance Focuses On

Maintenance keeps things in order, working, and safe. The equipment, machinery, systems, and software, everything involved in operations must not break down and cause disruptions. While operations manage the flow of goods and services, maintenance focuses on the maintenance (surprise), upkeep, and repairs of the tools and assets used by the operations department. Responsibilities of maintenance include:

• Preventive Maintenance: Regular checks and services to avoid breakdowns. For example, changing the oil in machines or replacing worn-out parts before they cause issues.
• Corrective Maintenance: Repairing or fixing items when something goes wrong, like fixing a broken piece of machinery in a factory or replacing a failed air conditioning unit.
• Predictive Maintenance: Using data to predict when an asset might fail so maintenance can be done before a breakdown happens.

The main goal of maintenance is to ensure the longevity and proper functioning of equipment, reducing downtime and extending the lifespan of assets, tools, or equipment, 

Where Operations and Maintenance Overlap

While operations and maintenance may differ in terms of their direct goals, they work towards the same goal. Here’s where they overlap:

Overlapping Area	What it Does
Asset Utilization	Operations stop if machinery or equipment aren’t functioning smoothly or safely. One affects production capacity, and the other, clearly, is a safety hazard. Without proper maintenance, operations will be massively slowed down due to machines either being extremely slow, outright failing, or being too much of a safety risk.
Teamwork	The maintenance team communicates with the operations team to make sure equipment downtime is minimized. For example, if maintenance needs to happen, the operations team is notified in advance so they can plan accordingly.
Cost Control	Operations try to keep things running efficiently, while maintenance makes sure equipment doesn’t break and becomes expensive to repair. For example, keeping machines clean and in good condition saves money compared to major repairs.

Why Integration of Operations and Maintenance Matters

Long-term success does not come easy, but integrating operations and maintenance is a tried and tested way of achieving it. Without the proper collaboration between the two departments, businesses are left in turmoil dealing with equipment failure, delays, poor performance, or, on the far end of the spectrum, potential safety risks. Here are a few reasons why integrating the two should be your top priority:

1. Performance Optimization

When maintenance is integrated into operations, the result is equipment being serviced on time. For example, if you’re a fleet owner, the operations and maintenance department can coordinate and plan a scheduled service for trucks within the fleet. This reduces unplanned downtime and keeps the trucks running properly.

2. Long-term Savings

Unplanned downtime, breakdowns, performing last-second repairs, and finding alternatives all add up to shelling out a chunk of money. However, with better planning and preventing major breakdowns through regular maintenance, operations can plan their production schedules around when equipment is being serviced or fixed. This reduces disruptions and allows businesses to save money on repairs and replacements.

3. Safety and Compliance

Maintenance and operations together allow companies to stick to safety regulations and implement best practices in their respective industries. A safe working environment is incredibly important to keep employees, the general public, and the environment safe, especially if the work involves dealing with hazardous substances.

Key regulations like OSHA’s lockout/tagout procedures and hazard communication standards are integral in reducing these risks.​

What is an O&M Manual?

An operations and maintenance manual is exactly what it sounds like. A go-to guide for running your equipment and assets like a well-oiled machine. The manual clearly outlines how everything is supposed to run under perfect conditions throughout their respective lifecycles and what daily operations, routine maintenance, and troubleshooting procedures your company needs to perform. Here’s what a great O&M manual includes:

• Step-by-step instructions to maximize efficiency and get the most out of your equipment.
• Everything your team needs to know to prevent accidents and create a secure work environment.
• The tasks that need to be done, when to do them, and how to keep your assets in great condition.
• Clear steps to fix any arising issues and who to call if everything else fails.
• Detailed instructions to stay compliant with safety regulations

Some manuals even go a step further with a record-keeping section, where you can log maintenance, repairs, and inspections. This makes tracking what’s been done a breeze and keeps your team organized. An O&M manual isn’t just a book. It’s your facility’s roadmap to efficiency, safety, and long-term success.

Types of O&M Manuals

There are various kinds of Operations and Maintenance manuals, all created to serve a different purpose and built for various industries. However, all are written to help users best operate and maintain their equipment. Here are the main types of O&M manuals:

• Installation, Operation, and Maintenance Manuals: These manuals provide detailed instructions on how to install, operate, and maintain specific equipment. They often include technical specifications and troubleshooting tips.
• Emergency Procedures Manuals: These help protect yourself during an emergency by knowing what’s safe and what isn’t when a crisis event or dangerous situation arises.
• Human Resources Manuals: These manuals cover policies and procedures related to personnel management, including training requirements for operating specific equipment safely.
• Product Setup and Care Guides: These guides, often sourced from the manufacturers, help you understand how to set up new products and maintain them.
• Backup and Recovery Guides: Essential for IT systems, these manuals detail the processes for backing up data and recovering it in case of system failures.
• Maintenance and Repair Manuals: These focus specifically on the maintenance tasks required to be performed on an asset, when is the time to do so, and what to do along with the necessary tools and parts required during the entire process.

Once you’ve created your O&M manual, you can improve equipment utilization and timelines with robust O&M strategies.

How CMMS Can Enhance O&M Efficiency

A CMMS solution acts as a singular point for all types of manual storing, and it makes it easier to track, plan, and execute tasks efficiently. Our CMMS software, LLumin, does exactly that and beyond. It keeps everybody who needs to be involved actively informed on all developments and alerts them regarding everything operations and maintenance.

You can enhance your O&M programs with LLumin’s advanced CMMS software, as it becomes your centralized database for equipment information, like service history and manuals, in one place. It also becomes a means to improve communication and collaboration. Here are some of the many ways it can help in O&M:

• Tracks an infinite amount of assets and offers specialized tools for training employees
• Assists in proper maintenance and managing the performance of assets
• Provides clear KPIs and monitors equipment in real-time
• Presents information in reports and custom dashboards
• Integrates with existing systems in your tech ecosystem

Moreover, with AI and machine learning capabilities, LLumin improves return on assets (ROA) by helping your company make calculated and data-backed decisions on the replacement or retirement of your assets. 

To know more about how to optimize O&M processes with comprehensive asset management solutions, schedule a demo with us today.

Conclusion

By following the correct operations and maintenance protocols and using a powerhouse CMMS like LLumin, your business can unlock a whole new level of efficiency. You’ll extend asset lifespans, boost ROI, and create safer working conditions—all while minimizing those costly and unexpected breakdowns. It’s a win-win for your team.

FAQs

What are the challenges in implementing O&M programs?

O&M programs are indeed a little tough to implement, as it involves processes in the right place at the right time while coordinating with multiple teams and maintaining consistency. Some common challenges include budget constraints, proper training, and handling expected equipment failures. It’s important to start small, pick manageable projects, and document everything from there.

How can O&M improve equipment reliability?

O&M involves practices that actively improve equipment reliability via regular checks and maintenance systems in place. For example, say there is a truck in your fleet. Making the active effort to keep the oil levels up, regular servicing, and proper driving habits all help extend the life of the equipment and keep the truck running smoothly. Preventative maintenance further reduces the chances of unexpected failures.

How can O&M improve productivity and cost-efficiency?

O&M helps improve productivity and save money by ensuring everything works smoothly. Regular maintenance of equipment results in a reduced chance of unexpected breakdowns, keeping things running without any roadblocks. Well-maintained equipment is more efficient, using no extra energy, resulting in saved money. With fewer disruptions and longer-lasting machines, O&M helps save both time and money, allowing employees to work more effectively and efficiently. It’s all about keeping things running well without spending too much on repairs or replacements.

What does maintenance cost include?

Maintenance costs include labor costs, parts and materials, equipment, and energy and operational costs.