The following articles introduce and explain workload-based budget and control for maintenance operations and its underlying principles, practices and processes. However, the first webpage explain the the financial framework the budget and its control follow as their North Star. It is noteworthy that what is explained by the set of articles requires that a firm be data-driven-capable.
ROACE: Financial North Star to Maintenance and Reliability Operations Return on average capital employed (ROACE) should be the North Star for us reliability and maintenance (R&M) practitioners. First, it is one of several equivalent measures to evaluate how well a business uses its assets to generate earnings. Second, it is the measure of choice for firms whose production assets and facilities are a very large part of their total assets.
The Secret is to Budget and Control Maintenance Opex Dimensionally: Plants need a two-dimensional budget and variance control system to prove and assure that its maintenance operating expense is what it must be to realize the best short-, middle- and long-term business performance. This article will describe the two-dimensional system in contrast to the traditional and ineffective one-dimensional system.
Setting the Budget for Maintenance Workload: Predictive budget and control is a build-up of drivers from workload (activity) to resources to unit costs. The first stage of the workload-based budget procedure is to establish the number of jobs to be completed each month.
Size Maintenance Craft Capacity on Forecasts, Not Backlog: Get maintenance craft capacity right and many things get right. So it is no small thing that the wide range of insight given by data analytics enable maintenance operations to find and stay on the sweet spot.
Maintenance Reinvented and Business Success, Chapter 8: Workload-Based Budget and Variance. The papers of the webpage explain the first level of budgeting and human resource—work execution by crafts—because it is the most in need of methodology. The chapter of the free pdf-book explains the entire framework of budget and variance control for the maintenance department as a plant function. The chapter also offer a generalized project plan for building and bringing the budget and variance processes to full function.
The link to “Case: Activity-based budget and control,” is the output of what is explained in the chapter as it was actually implemented in a refinery.
Case: Activity-based budget and control. The purpose of this case document is to demonstrate an annual activity-based budget built upon a plant’s CMMS data and with statistical methods to deal with weaknesses in the data. In turn, it is to demonstrate how maintenance cost is controlled to be on-budget as the year unfolds. Furthermore, the document shown was available to all by the end of the day following the close of the budgeted month.
Anatomy of SAP Statuses History for Routine Maintenance: For a group of work orders, dates and elapsed time between the initial and exit events at each stage of the maintenance processes are primary data to data-driven operations. Unfortunately, maintenance systems do not dispense the data as a “standard report” even though it resides within the system’s data-base. The slide set describes an upon-demand “query” for use by anyone needing the data for their role in the maintenance process—which is almost everyone. Although specific to a particular CMMS—SAP in this case—the concept is universal and can be used to specify to your data specialist the standard report to be built and made functional.