Maintenance Cost Calculation
Posted: Sun Dec 15, 2024 6:03 am
There are two popular approaches to estimating maintenance costs:
The approximate calculation
The specific or annual calculation
Let's take a look at the mechanism of action of both methods for determining maintenance and repair costs .
Approximate Estimate of Maintenance Costs
This approach takes into account the history of cambodia telegram data maintenance services performed on a piece of equipment in the past. To do this, work orders, maintenance checklists , frequency of replacement of parts and other similar indicators are consulted.
The approximate estimate of maintenance costs:
Use the available information to calculate the possible future costs that the company will have to cover.
It provides future projections based on the past.
Consider the current state of your equipment inventory to determine what percentage of your failing assets can be brought back into service, and how many you can rehabilitate.
Specific or Annual Estimate of Maintenance Costs
The second method used to calculate maintenance costs is a specific or annual estimate , which involves a more complex, but also more accurate process.
The main difference is that a maintenance specialist is required who can provide the company with accurate estimates.
In addition, the person in charge must have knowledge of predictive maintenance , equipment standardization and spare parts projection, since what is sought is to anticipate breakdowns.
This estimation model distinguishes between two types of budget:
One for the planned work (in the example below you will see the factors that are taken into account for this budgeting).
And another for contingencies
Contingency budgets allocate funds for unplanned maintenance work, such as emergencies or sudden breakdowns that cannot be predicted.
Maintenance Costs: Examples
1. Direct Maintenance Expenses vs. Capital Expenses
Suppose your company manager's computer breaks down.
Initially, only the graphics card needs to be replaced ( maintenance costs will be included here ), but you decide to also invest in expanding the RAM during your visit to the workshop ( capital expenditure ) so that your manager can increase his productivity.
The approximate calculation
The specific or annual calculation
Let's take a look at the mechanism of action of both methods for determining maintenance and repair costs .
Approximate Estimate of Maintenance Costs
This approach takes into account the history of cambodia telegram data maintenance services performed on a piece of equipment in the past. To do this, work orders, maintenance checklists , frequency of replacement of parts and other similar indicators are consulted.
The approximate estimate of maintenance costs:
Use the available information to calculate the possible future costs that the company will have to cover.
It provides future projections based on the past.
Consider the current state of your equipment inventory to determine what percentage of your failing assets can be brought back into service, and how many you can rehabilitate.
Specific or Annual Estimate of Maintenance Costs
The second method used to calculate maintenance costs is a specific or annual estimate , which involves a more complex, but also more accurate process.
The main difference is that a maintenance specialist is required who can provide the company with accurate estimates.
In addition, the person in charge must have knowledge of predictive maintenance , equipment standardization and spare parts projection, since what is sought is to anticipate breakdowns.
This estimation model distinguishes between two types of budget:
One for the planned work (in the example below you will see the factors that are taken into account for this budgeting).
And another for contingencies
Contingency budgets allocate funds for unplanned maintenance work, such as emergencies or sudden breakdowns that cannot be predicted.
Maintenance Costs: Examples
1. Direct Maintenance Expenses vs. Capital Expenses
Suppose your company manager's computer breaks down.
Initially, only the graphics card needs to be replaced ( maintenance costs will be included here ), but you decide to also invest in expanding the RAM during your visit to the workshop ( capital expenditure ) so that your manager can increase his productivity.