Published in Marketing and Strategy Terms category by MBA Skool Team
What is Maintained Item?
A maintained item can be described as an object or a set of objects that are subjected to preventive maintenance tasks taking place at regular intervals. A maintained item is required when a product is to be sold but is still at the inventory phase.
If one looks at the inventory of a company, i.e. only the ones which have regular maintenance and safety test (in case of technical objects) are the ones which have higher performance value than the others. Let's take the example of a perishable product. Now in such a case before the product is sold, it should be properly maintained and should have gone through all the necessary maintenance steps at regular intervals in order to reach the customers satisfaction and these are the ones which come under the category of maintained items.
For any item, may it be perishable or non-perishable, the maintenance of the product is very important. What we need is a performance assessment of the product before it reaches the consumer. For this we have a performance improvement evaluation and if the product has gone through all the necessary maintenance tests via the decision tool for maintenance applications which makes the product less prone to under performance.
Taking into consideration the importance of performance, we can very well say that the level of maintenance required for a product is very high to be a performing asset rather than a non-performing asset. The brand image of a company depends on the performance of its products and the performance can only be accounted for if the product comes under the category of maintained items.
Under-performing or non-performing products are a result of neglected maintenance and in turn, have lesser salvage value than their maintained counterparts. The ultimate truth for any company is to gain profits, i.e. the selling price is higher than the cost price, but only if the product has a customer satisfactory performance.
Therefore, in order for a company to achieve high customer satisfaction and maintain a brand image, the product should be well maintained and have passed the safety test before being taken to the market for selling. It would be an understatement to say that the Return on Investments for the products that are sold should be high in order to gain profits.
Advantages & Disadvantages of Maintained Item
Some advantages are of maintained item are:
1. Reducing health concerns- With increased health concerns the governments and the industry standards have made it compulsory for maintained items at the factory thus reducing the risks associated.
2. Increased self-service has led to increased demand for maintenance and this is very advantageous for the players in the market.
3. Next is the scope for innovation which increases three fold. With the rise for the demand of maintained items, the market has seen a rise in the number of innovations in these fields.
4. Now the major advantage is the product differentiation which is greatly achieved through the type of maintenance. And in recent times, the maintenance industry has seen steady growth due to the increased demand for maintained items.
Disadvantages of maintained item:
1. Cost disadvantage- We all do agree on the fact that maintenance is important for a company’s product but maintenance costs also levy a heavy toll on the company’s revenue as the maintenance costs are high.
2. It also has a negative impact on the environment because of the use of plastics and many other non-biodegradable materials used for it.
3. Production usage for making the maintenance material is very high. The material cost of consumption increases and along with that the overall cost of production of the product
Example of Maintained Item
If we have an inventory, per se containing ketchup bottles. The sauce does have a shelf life on its own. However chemical engineers add certain edible substances to even further prolong it. They use acidifying agents (example: acetic acid) and preservatives (example: sodium benzoate) to prevent bacterial growth and stabilize the product. Certain companies even add an extra layer of protection by providing aluminium inner lining in the form of tetra packs in case of refill pouches. Thus, we come to a conclusion that in order to increase the shelf life and to increase the performance level of an item or a product we need to use the different methods of maintenance and that can increase the performance levels and the overall customer satisfaction.
Hence, this concludes the definition of Maintained Item along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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