Top Compliance Risks in Manufacturing Maintenance‚ and How to Avoid Them

Manufacturing maintenance is one of those areas where things can go sideways fast if you’re not paying attention to compliance. Between OSHA regulations, environmental standards, and equipment safety protocols, there are several areas to look at, and the stakes are always high.

This post breaks down the biggest compliance risks that tend to trip up manufacturing maintenance teams and offers straightforward ways to avoid them before they become costly problems.

1. Workplace Safety Compliance Risk

Maintenance activities in manufacturing fall directly under occupational health and safety regulations such as OSHA (Occupational Safety and Health Administration) in the United States or equivalent authorities elsewhere. These regulations require strict adherence to procedures that protect employees working with machinery and hazardous equipment.

Failure to follow standards like lockout/tagout (LOTO), machine guarding, PPE usage, and proper training can result in severe injury or death. Violations expose manufacturers to penalties, forced shutdowns, and even criminal prosecution. The fines can go over $150,000 per violation, and there are several instances where organizations had to incur hefty fines. An iron casting plant had to pay $171 thousands as fine due to fatal injury caused to the operator due to poor inspection and maintenance.

How to Avoid:

• Follow lockout/tagout (LOTO) procedures to ensure energy sources are isolated before repair or inspection.
• Maintain machine guarding by using temporary barriers or alternative protective measures when guards are removed.
• Provide appropriate personal protective equipment (PPE) such as insulated gloves, helmets, and respiratory protection when workers are exposed to dust, fumes, or chemicals.
• Ensure only trained personnel operate or service high-risk equipment.

2. Environmental Compliance Risk

Maintenance in manufacturing often involves materials and processes regulated by environmental authorities such as the U.S. EPA or regional equivalents. There are lubricants, solvents, coolants, and cleaning agents that pose risks when released into soil, water, or air. Improper disposal, leaks, or emissions from these hazardous substances during maintenance directly violate environmental laws.

There are air quality regulations that apply to equipment like boilers, compressors, and generators, which must be maintained to stay within permitted emission levels. Skipped or incorrect maintenance can lead to excess release of VOCs or particulate matter. Further, wastewater from equipment washing or chemical flushing must be treated before discharge, as required by laws like the Clean Water Act.

Hazardous waste storage rules mandate specific containers, labeling, and time limits before transfer to authorized facilities. Mishandling by maintenance staff invites regulatory action. Non-compliance can result in heavy fines and also operational suspension. Organizations have paid fines to the tune of $28,000 to $1.5 million for improper disposal of hazardous materials.

How to Avoid:

• Follow hazardous material handling protocols by properly storing, labeling, and disposing of substances used during maintenance.
• Maintain emission-control equipment regularly to ensure boilers, compressors, and generators operate within permitted limits.
• Treat wastewater before discharge to comply with applicable water quality standards.
• Use approved containers and labeling for waste, and adhere to holding time limits and transfer requirements.

3. Equipment Certification and Inspection Compliance Risk

Certain categories of industrial equipment such as pressure vessels, boilers, lifting gear, cranes, and emission-control systems are subject to statutory inspection and certification requirements.

If maintenance schedules do not align with legally defined intervals, equipment may be operated outside of compliance. For instance, pressure vessels require hydrostatic or ultrasonic testing under standards like the ASME Boiler and Pressure Vessel Code. Lifting equipment must undergo proof-load testing and certification. Maintenance teams must also coordinate inspections with authorized bodies and maintain calibration records for gauges, valves, and sensors.

Using non-certified replacement parts or modifying safety systems without approval is a regulatory breach. Auditors verify compliance through inspection certificates, maintenance logs, and calibration reports. Equipment certification and inspection compliance risk arises whenever mandated verification is not completed within prescribed timelines.

How to Avoid:

• Schedule inspections and certifications in accordance with regulatory timelines
• Conduct required tests (e.g., hydrostatic, ultrasonic, proof-load) as per applicable compliance standards
• Use only certified parts and avoid unauthorized modifications to safety systems
• Coordinate with authorized inspection bodies for re-certification and testing
• Implement inspection management software and track inspection schedules

4. Record-Keeping and Documentation Compliance Risk

Agencies such as OSHA, EPA, and ISO require detailed records of inspections, repairs, calibrations, and incident responses. Because, these records serve as proof that statutory obligations have been fulfilled.

Even if maintenance is performed correctly, incomplete or inaccurate documentation can

place the organization in violation. Calibration records must confirm that measurement devices remain within tolerance, especially for equipment affecting product quality or environmental discharge. Maintenance logs must include dates, responsible personnel, and actions taken.

Retention requirements vary by jurisdiction, ranging from three years to the full service life of the equipment. Auditors and inspectors rely heavily on documentation during assessments. If records are absent, falsified, or outdated, the site may be deemed non-compliant regardless of actual performance. 60% of regulatory compliance fines come from poor records and documentation, which is why mere presence of a process is not enough.

Electronic systems like computerized maintenance management system (CMMS) are acceptable only if they maintain audit trails and prevent unauthorized changes. This risk arises when maintenance documentation fails to meet traceability, retention, or accuracy standards mandated by law.

How to Avoid:

• Maintain complete and accurate records of all inspections, repairs, calibrations, and incident responses
• Ensure calibration logs are verifying that instruments remain within specified tolerances
• Include dates, personnel, and actions in all preventive and corrective maintenance entries
• Retain documentation for the full legally required duration based on jurisdictional standards
• Use compliant electronic systems (e.g., CMMS) that support audit trails and restrict unauthorized edits

5. Regulatory Reporting Compliance Risk

Manufacturing maintenance activities generate events that require formal notification to authorities. Regulations define specific categories of incidents, equipment failures, or hazardous releases that must be reported within strict timeframes. In the United States (US), OSHA requires immediate reporting of fatalities and hospitalization cases, while the EPA mandates notification of hazardous substance releases that exceed threshold quantities. Delays or omissions in such reporting place the organization in direct violation.

Maintenance-related failures such as boiler explosions, ammonia leaks from refrigeration systems, or fires linked to electrical faults fall under mandatory reporting frameworks. Authorities demand not only initial notification but also detailed investigation reports outlining causes and corrective measures. The responsibility for preparing and submitting these reports through established channels lies on maintenance managers.

In addition, certain equipment requires periodic regulatory submissions to ensure compliance with emission limits, waste handling rules, or safety certifications. Continuous emission monitoring systems (CEMS) used in plants generate compliance data that must be submitted at regular intervals or else it comes with heavy penalties.

How to Avoid:

• Identify all reportable events and understand the specific reporting requirements of relevant authorities (e.g., OSHA, EPA)
• Establish clear protocols for immediate notification and follow-up investigation reporting
• Assign accountability to maintenance managers for preparing and submitting reports through approved channels
• Ensure that routine compliance data (e.g., emissions, waste handling) is submitted accurately and on schedule
• Use automated systems where possible to track reporting deadlines and generate required documentation
• Conduct regular audits to verify that all reporting obligations are being met and documented properly

6. Contractor and Third-Party Compliance Risk

Regulations make the plant owner legally accountable for compliance even when tasks are performed by third parties. If contractors lack proper licenses, certifications, or training, their actions constitute a direct compliance breach for the hiring organization.

Occupational safety regulations require verification that contractors follow lockout/tagout procedures, wear appropriate protective equipment, and adhere to site-specific safety rules. Environmental regulations demand that third-party waste handlers or chemical disposal firms possess valid permits for transport and treatment of hazardous substances. Use of unqualified vendors exposes the manufacturer to penalties, anywhere around $70 thousand to $135 thousand, if regulators trace improper violation of norm by the vendor.

Contractor compliance extends to documentation as well. Signed permits-to-work, safety training records, and maintenance certificates must be available for review. Regulators expect the manufacturer to demonstrate oversight of third-party activities rather than shifting responsibility.

How to Avoid:

• Vet contractors thoroughly for valid licenses, certifications, and training relevant to assigned tasks
• Ensure contractors follow lockout/tagout procedures, wear PPE, and comply with site-specific safety rules
• Confirm that third-party waste handlers and chemical disposal firms hold current environmental permits
• Require and retain signed permits-to-work, training records, and maintenance certificates for all contractor activities
• Conduct pre-work credential checks and ongoing oversight of third-party personnel
• Use a contractor management system to track compliance, documentation, and performance
• Train internal teams to understand their oversight responsibilities and regulatory liabilities

What are the Best Practices to Handle Compliance Risks?

While we have already discussed risk-specific solutions, there are several overarching best practices to follow for managing compliance risks in manufacturing maintenance. These are:

• Conduct regular risk assessment of maintenance activities to identify vulnerabilities across equipment, processes, and personnel.
• Foster a safe work environment where employees are encouraged to follow procedures and report hazards without hesitation.
• Implement ongoing employee training programs that cover regulatory requirements, safety procedures, and emergency responses.
• Monitor your supply chain, including contractors and vendors, to confirm they meet compliance standards and contractual obligations.
• Act proactively by identifying potential risks before they manifest and implementing preventive measures.
• Encourage team members to take initiative in addressing potential compliance gaps and reporting issues immediately.
• Use clear escalation protocols to escalate non-compliance or near-misses to supervisors or management without delay.
• Deploy systems and checks that safeguard critical processes and documentation from errors or omissions.
• Maintain a culture where employees feel empowered to act proactively, suggesting improvements or corrections to reduce risk.

To Wrap Up

With all compliances mapped on a maintenance software, you can leverage the tool to streamline the process of following regulatory compliances, and thus keep compliance issues at bay.

Essentially, an all-compassing maintenance software replaces risks with opportunities for improving operational efficiency. It gives your team a clear view of what’s due, what’s been done, and what needs attention. Compliance is integrated into maintenance workflows, which gives rise to a strong risk management framework.