The first step is to define and measure your maintenance cost variances and deviations. You need to establish clear and realistic benchmarks, standards, and targets for your maintenance costs, such as labor, materials, equipment, utilities, and overheads. You also need to track and monitor your actual maintenance costs regularly and compare them with your planned or budgeted costs. This will help you identify and quantify your maintenance cost variances and deviations, as well as their sources, causes, and impacts.
I believe that maintenance costs could be defined as: 1- Prevention costs; to lessen the risk of machine failure. Any expenditure associated with repairing or replacing assets prior to failure or maintaining their condition to a certain level. Such as Material, people, training, preventative maintenance, installation, spare parts, quality control, process control, design reviews, production loss, and so on. 2- Inspection costs; Such as material, manpower, and inspection equipment used to inspect the asset, testing, production loss, and so on. 3- Failure cost; costs due to failures; That could be materials, staff, downtimes, corrective actions, warranty charges, insurance expenses, catastrophic consequences cost, production loss etc
The Performance Layer can only function effectively with the standards, processes, controls and data provided by the Foundational and Stable & Capable Layers The Performance Layer provides the financial information and services, integrated to management routines, to better support performance analysis and decision making The Stable & Capable Layer embeds and automates these standards into our systems and ways of working so that we deliver more stable, reliable finance services and generate consistent, high quality financial data to support improved performance The Foundational Layer defines the standards by which Finance will operate, including the capabilities required of our people, and the ways into the Maintenance Department! Regards.
Las variaciones de los costos de mantenimiento son NO renovables, y si se acciona sin un seguimiento prolijo, la pérdida es significativa entre: ?Tiempo. Dinero. Expectativas? Lo hago haciendo lo siguiente. Llevo un control mes a mes entre: ? El presupuesto mensual vs el costo real. ? Acumulado mes a mes del presupuesto vs acumulado mes a mes del real. ? Calculando el % de desviación. ? En el presupuesto considero aspectos como costeo, inflación, etc. Este control me ayuda a ir verificando mes a mes el desvío, y veo hacia adelante los siguientes mantenimientos con sus costos proyectados, para tomar una decisión para priorizar los trabajos.
Para poder evaluar cualquier variación, primero se debe haber establecido correctamente el Presupuesto del área de Mantenimiento. Si se comenten errores en la definición del Presupuesto, si no se cuantifican correctamente los recursos necesarios para ejecutar los Planes de Mantenimiento, la Organización caerá en la trampa de buscar reducir los costos directos de Mantenimiento, aún a cuanto de incrementar los riesgos, las pérdidas de ingresos, y la vida útil del equipamiento.
Variance from budget means that you've probably not budgeted correctly. There are two types of spending in maintenance: discretionary (e.g.: training and proactive maintenance activities), and non-discretionary (e.g.: repairs that were not anticipated). It's the latter that messes up budgets. If you don't spend enough proactively and on the right activities, then you will suffer breakdowns that are not anticipated and blow your budget. The equipment doesn't care about your budget, so your budget had better consider what the equipment needs to be reliable.
The second step is to analyze and prioritize your maintenance cost variances and deviations. You need to understand why and how your maintenance costs differ from your plans and targets, and what factors influence them. You also need to assess the significance and urgency of your maintenance cost variances and deviations, and how they affect your maintenance performance, efficiency, and quality. This will help you prioritize your maintenance cost variances and deviations, and decide which ones need immediate attention, which ones can be tolerated or postponed, and which ones can be ignored or accepted.
It's important to have correct cost alocation, so the preventive/predictive, planned corrective and emergency corrective cost can be analyzed separately. In MP/MPd costs you need to analyze the unitary cost of your interventions, frequency and tendencies, also comparing to compliance and breakdown KPIs, so you can evaluate is is an effective MP/MPd program. You can reduce cost working on logistics on negotiations, and on frequency or activities by implementing PMO initiatives. With emergency corrective you have to analyze the main offenders, have good data and start improvement programs such as defect elimination or root cause analysis. Also have to standarize the emergency attention criteria to avoid everything to be considered as that.
Variances are due to unexpected actions that were needed, most likely dealing with breakdowns. If the variance is large and the equipment was critical, you really need to focus attention on your proactive maintenance program. There will always be breakdowns, so it shouldn't be a surprise "that" it happens. The timing is often random though, so "when" it happens needs a bit of thought. Given that randomness, the timing of spending on repairs may vary and show up as budget variance, but it should not be substantial. The over and under budget instances should be balancing each other out for the most part.
I believe that well-planned and executed plant shutdown activities could save a significant amount of indirect maintenance expenditures and cost. Scheduling maintenance and inspection activities that required plant shutdowns will significantly reduce downtimes (the first item of savings). Equipment maintenance/inspection mandated shutdowns should take priority over other planned maintenance activities.
We need to do that: Bring fixed and variable unit cost inputs for each element of LoW III Business Structures to support defining targets for efficiency. Bring cost data in to evaluate cost trade-offs to define production and service strategies that achieve business expectations in the most cost-efficient way Provide cost data inputs into the OMS to make it an EPS Provide cost data to estimate UCLs for high-cost impact or high-cost variability work, ensure that only funded work gets approved Ensure frequent work cost settlement and posting delivering cost data granularity throughout the month. regards
La variación mensual en el Presupuesto de Mantenimiento podría estar sujeta a factores externos al área, por ejemplo, la variación en el nivel de utilización, de régimen operativo, adelantos de paradas de plantas por temas comerciales, o requerimientos especiales para la operativa, entre otros posibles motivos. Por todo lo anterior, los costos de Mantenimiento no pueden analizarse de forma aislada. Así mismo, para una mejor evaluación de la Gestión de Mantenimiento, los Costos de Mantenimiento, se deben utilizar en un conjunto de Indicadores claves de Mantenimiento.
The third step is to implement and monitor corrective and preventive actions. You need to develop and execute effective and feasible solutions to address your maintenance cost variances and deviations, and to prevent or minimize them in the future. You also need to measure and evaluate the results and outcomes of your corrective and preventive actions, and to adjust them as needed. This will help you improve your maintenance cost control, optimize your maintenance resources, and enhance your maintenance value.
Preventive and predictive costs can be forecast very accurately. You should also know that with preventive there is still a risk a failure will occur, albeit reduced. With predictive, you also know you will find failures, more or less at the same "average" rate as the MTBF. All of those are known (or should be). If you are experiencing intolerable budget variances then you really need to focus on that proactive program and stop assuming that because you are doing so, you will avoid failures. You will be avoiding consequences of failures, but only rarely will you be able to avoid the failures altogether.
Agreed. Resilient organizations account and build bank for inevitable failures. Zero failures is a myth, mitigated, avoided and or controlled consequences the reality the truly great organizations.
In my experience a CMMS such as such as SAP, is regarded as a great tool for register, managing, controlling, and reporting on the performance of not just the maintenance program, but also the equipment. The cost of each piece of equipment and task is effectively calculated, manpower is precisely managed, and a tracing history is kept. purchasing orders for spare parts are easily expedited. CMMS could explicitly manage preventive maintenance, preventive maintenance task lists, asset integrity assurance inspections, characteristics, and pass/fail criteria. SAP has the ability to keep each equipment PM as well as CM records in order facilitate the process of evaluation, assessments, tracking, even helpful in the RCA process
Es importante aprovechar los forecast para identificar las desviaciones del presupuesto y buscar acciones que mitiguen el impacto generado en él. Un ejemplo que podría mencionar es el incremento del consumo de lubricante en una flota de equipos pesados, para dicho problema se generó la acción de realizar el cambio de lubricante por uno me mejor rendimiento con la finalidad de lograr el costo horario establecido en el presupuesto. El cambio propuesto fue fundamentado a traves de un protocolo de prueba controlado y con un seguimiento exhaustivo para garantizar la confiabilidad de la flota y la reducción del costo operativo de los lubricantes mitigando así la desviación encontrada en dicho cuenta o centro de costo.
This is the element that lots of folks forget. Given you have a baseline to start with, or an improvement goal, its knowing based upon collected data that your actions are having the desired impact is important. If you do not know where you started and do not know where you are, then it will not be possible to know if you have made any positive changes.
The fourth step is to communicate and report your maintenance cost variances and deviations. You need to share and discuss your maintenance cost data, analysis, and actions with your relevant stakeholders, such as management, staff, customers, suppliers, and regulators. You also need to document and report your maintenance cost variances and deviations, and their implications and recommendations, in a clear, concise, and consistent manner. This will help you increase your maintenance transparency, accountability, and collaboration.
One of the best ways to find and keep track of the cast variation for each item of registered equipment is to use a CMMS, like SAP. This will provide you excellent analytical, tracking, and evaluative abilities for the equipment that is a bad actor—that is, equipment whose maintenance costs have devoured more than 70% of its original value. A KPI dashboard might be dynamically connected to data from SAP. Our organization uses an Upstream KPIs dashboard to provide characteristics in real time, including which equipment is the most expensive based on maintenance costs. All authorized personnel, including the highest levels of management, can access this dashboard to track and monitor both the equipment used by bad actors and their performance
It is even better to have these variances (KPIs, charts, etc.) made very visible to staff every day. Make them a discussion at the daily briefing. Have them displayed on flat-panel TVs in the office. Include your staff in the process of worrying about overages!
The fifth step is to learn and improve from your maintenance cost variances and deviations. You need to review and reflect on your maintenance cost performance, challenges, and opportunities, and to identify and implement lessons learned and best practices. You also need to update and revise your maintenance plans, targets, and standards, and to align them with your changing needs, expectations, and goals. This will help you enhance your maintenance knowledge, skills, and competencies, and to achieve your maintenance excellence.
Think about this 2/2 No CMMS, only a cost accounting software for labor and identified materials, no history except what ‘worker recall’ which was typed on a card in a manual Kardex file for each ‘asset’ within the site, no technical library except what was stored away in the original equipment files, no condition monitoring except what was seen, felt, heard, smelled by caring craftspersons, operators, supervisors on routine troubleshooting routes, and reported. That research culminated in a rudimentary list of potential ‘bad actors’ which obviously wasn’t accurate nor complete, but that boss’ goal was achieved. To manage and lead you must think critically, no matter the objective. Refer to 1/2 below.
Para aprender e melhorar é importante que: 1. Seja feita uma análise detalhada: deve ser analisado detalhadamente os desvios de custos, buscando entender suas causas e impactos. Analisar registros, dados e relatórios para identificar padr?es e tendências. 2. Benchmarking: é sempre importante buscar modelos que funcionem e entender os porquês, como é feito, como melhorar. 3. Monitoramento contínuo: deve-se estabelecer sistemas para monitorar continuamente os custos de manuten??o e os indicadores-chave de desempenho (KPIs). Isso permite detectar problemas precocemente e tomar medidas preventivas.
Think about this. 1/2 One of my bosses, decades ago, while Maintenance Manager, asked me to define specifically the pumps and motors that were going to fail the following year that would be included in my CAPEX request item labeled ‘Replacement Pumps & Motors’ for $xx. That obviously was a challenge because he was asking me to ‘predict’ which specific pumps and motors would fail during the upcoming operating year. While I love a challenge, I hate to fail, and I felt this was an unfair request. He knew that. But I did some research, as he knew I would, without the benefit of all the tools and technologies present in today’s world. Continue to 2/2.
It is always enlightening to go back to the previous years' activities and see how the organization has improved (or not). An annual review of the good, bad, and ugly is cathartic. Most organizations do improve organically, with just a few stops to take a harder focus on.
This is rarely done in practice, yet can be very valuable. Capturing what happened last year or the last project, and thoughtfully considering how that knowledge could be used for the next is important. Yet, know that what happened in the past may not be even close to what might happen in the future.
Quality Issues aren't uncommon in Property maintenance, To Ensure Top Notch maintenance, and avoiding cost overruns, Predictive maintenance remains the Key - achieving same requires a One to cultivate culture of space ownership among the occupants, and Motivating the ground team and managers, gaining Knowhow on building systems and equipments, who are able ask the right questions, on maintenance practices by service engineers, capture the usage patterns and fine tuning the systems & equipments for optimum loading to avoid over & under loading - which leads to premature Breakdown & failures Lastly the ensuring efficient running of ancillary equipment, and quality inputs to systems e.g Water, Electricity ( harmonics),Ambient Air etc
Para manejar las variaciones y desviaciones de los costos de mantenimiento con respecto a los planes y objetivos, es fundamental implementar un sistema de monitoreo continuo, análisis de causas raíz y ajustes proactivos en los planes de mantenimiento.
Segun Jeff Sutherland, 'La agilidad no es hacer más rápido lo que siempre has hecho, sino aprender y ajustar continuamente'. En el contexto de los costos de mantenimiento, esta filosofía implica una adaptabilidad constante a las desviaciones, priorizando las actividades cruciales y optimizando procesos para mantenerse ágil frente a los cambios. Al adoptar prácticas ágiles, las organizaciones pueden no solo gestionar eficazmente las variaciones en los costos de mantenimiento, sino también aprender de ellas.
By defining and measuring maintenance cost variances and deviations using these methods, organizations can gain better visibility into their maintenance cost management practices, identify opportunities for cost savings or optimization, and improve overall maintenance performance and efficiency.
Regularly review performance against objectives, identify root causes of discrepancies, and adjust plans accordingly. Implement corrective actions promptly to align activities with targets. Foster open communication within the maintenance team and collaborate across departments to address challenges effectively. Regularly update plans based on lessons learned to improve future maintenance execution and achieve desired outcomes.