The maintenance budget
Annual budgeting MAINTENANCE
By Santiago García Garrido
The budget of a maintenance department should consist of at least four headings: labor, materials, tools and resources and contracted services. Of course, there may be subheadings, other divisions, etc, but divide it into these four can be simple and practical.
- Personnel costs are the sum of five concepts:
- The annual fixed gross amount received by each department workers
- Bonuses, overtime and amounts collected availability to work or receive calls (checkpoints)
- Staff costs associated with labor, as staff transport to the plant (in some countries and areas that cost is paid by the employer) the allowances and expenses displaced staff, seals and overtime, etc..
- Training costs. This section, for companies with excellent management and concerned about the performance and motivation of its staff is a major item. Many countries, especially in Europe, heavily subsidize the training, so that the company can have a low cost.
- Obligatory social costs for the company, which are paid directly by the company management.
To calculate the social cost of the worker are two possible situations:
a) Do not exceed the maximum contribution base. In that case, the social cost is calculated as a percentage of their gross salary. It is usually between 33-38% of salary
b) that exceeds the maximum contribution base. In this case, the social cost is a fixed amount of salary independent.
It is the sum of all parts and supplies needed during the period that aims to budget. The concepts to be added can be grouped into two categories: Parts and Consumables. The difference between them is basically the frequency of use. While the latter are used continuously, and need not be associated with a particular team, the former are used rarely, and when linked to a particular team (sometimes more than one).
In a typical industrial plant these would be items of materials that should be taken into account when preparing the annual budget:
- Parts normal. It is standard equipment, and can be acquired from various manufacturers, so prices tend to be more competitive
- Special Parts. It is usually one of the highest items on a combined cycle plant. They are supplied by the equipment manufacturer exclusively, that having no competition, works with high profit margins.
Sometimes, especially in plants away from main supply, it is important to consider the costs of transporting materials to the plant, it can become significant
Consumables most common are:
- Oils and lubricants
- Air filters, oil, etc.
- Sealing elements
- Different material of hardware
- Miscellaneous electrical equipment
- Workshop Consumables
- Security elements
- Fuel for vehicles
- Other materials
3. TOOLS AND TECHNICAL RESOURCES
The sum of money that is expected to use the reset tool and means missing or damaged, or the acquisition of new media. Keep in mind that these media can be purchased or rented. The items raised to consider purchases will be three:
3.1. TOOL REPLACEMENT
3.2. ACQUISITION OF NEW TOOL AND TECHNICAL RESOURCES
3.3. EQUIPMENT RENTAL
In general, the media are often rented means not continuously used in the plant, and therefore, the frequency of their use inadvisable acquisition. Usually treated, in most cases the lifting means and transport:
- Cranes, forklifts
- Other equipment rental
4. EXTERNAL ASSISTANCE
Jobs that usually hire outside companies are:
4.1 Labor tips work in general firms. This additional labor flexibility allows the template so that the department can sized for a given workload, and cover times of increased need for labor with outsiders.
4.2 Hired labor continuously to generalist firms. Usually, by the staff's regular template contracts for regular work, hence reducing the template itself.
4.3 skilled labor, manufacturers (including travel expenses) for corrective maintenance
4.4 skilled labor, manufacturers (including travel expenses) for scheduled maintenance
4.5 Work in external workshops (winding engines, parts manufacturing, etc.)
4.6. Maintenance Services to be conducted by companies that fulfill certain legal requirements, and can issue a certificate of having carried out certain work. Among others would be:
4.7 Major revisions. Often another of the most important items of the budget. The budget may contain this special item, or not contain it and spread in different concepts (labor, materials, etc.).
5. BUDGET COMPLIANCE
Of the four games, the most difficult to estimate a priori is the material (spares and consumables), as it depends heavily on what fails. This is also a game that relies heavily on plant status of the implementation of preventive techniques, design and assembly. In a rapid assessment is usually between 0.5 and 2% of immobilized, ie the value of the plant. It has the greatest potential for optimization.
Another item is the variable and problematic of external assistance. Policy depends heavily on outsourcing, specialization and training of staff, and the number of technicians available to the department.
The staff is easy to estimate it, but often make mistakes in their budgeting constant then create enormous tensions with financial management or anyone financially responsible for the plant. It is common practice to ignore the costs of premiums, overtime, checkpoints, personnel costs, and also is usual disregard that inflation of skilled labor is higher than for other sectors or marked for country.
The media, tools and equipment rental is usually easily presupuestable and presents few deviations.