Risk management is an essential part of running any business. Depending on how it is conducted, it may lead to irreplaceable losses or serve as a catalyst for future growth. It is especially important for manufacturing businesses, as it involves dealing with a lot of different risks such as equipment breakdown due to improper application or service.
In today’s blog we’ll feature some great tips on how to ensure that your insurance policy is done right, from the latest Sign Association of Canada webinar – “Risk Management for Operational Improvement and Greater Profit”.
The first step in effectively managing your risks would be to break down all your tasks, including the assets that are used carefully, so that you would have a clear understanding of how things flow through your system. Basically, if you want to make an important decision – you want to be fully informed and have an ability to measure everything.
According to Lou Polur, The John Galt Insurance Agency, every business owner should account for his property correctly and understand where certain risks might lie. Is there an inventory item that might need to be replaced in the future? What are the costs connected with that? By asking yourself these questions you will be able to replace that inventory item without losing costs.
The next important step is ensuring proper and regular maintenance of your inventory. What is more, it is extremely important to hold documented proof that the inventory maintenance has been done. This will allow you to save costs in case of unexpected equipment breakdown.
While managing your risks, you are not expected to have insurance coverage for all of your inventory. What you are expected to do, is to convey full product lines analysis in order to see which pieces of inventory are essential to your manufacturing process and what are the various risks and costs associated with its breakdown.
Here at MultiCam Canada, we are always trying to educate our clients about the importance of machinery and parts maintenance. Be sure to subscribe to our CNC Router Store Newsletter to learn about all the best tips for your CNC tool maintenance.
You can also find some great posts on how to maintain your CNC machinery in our blog:
- “WaterJet Maintenance”
- “Plasma System Maintenance”
- “Greasing your CNC Cutting System”
- “Extending the life of your CNC Plasma consumables”