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Some of the important factors that are directly related to the cost performing maintenance are as follows:
• Labour: This includes all costs associated with trades, apprentices, semi-skilled support labour, and custodial and grounds staff directly employed by the maintenance department. These costs also include overtime, training, benefits, and various mandatory or regulatory costs,
• Materials: This covers purchased parts, spares, supplies, stationery, protective wear, shops supplies, and chemicals used directly for repair and maintenance activities. This can also include direct material overhead applied to the maintenance stores issue price, such as transport, storage handling, shipping, and internal parts delivery,
• Contracts: This covers the costs of specifics maintenance tasks, projects, or work orders contracted on a time pr project basis, such as facility maintenance, boiler overhaul, or machines refurbishment. Each work category is specified by a specific contract. In addition, the cost of temporary or permanent contracted personnel would be included in this category,
• Shop service: In large facilities and plants, there is usually a central shop service that provides specialized services. These shops usually charge a calculated hourly rate to specific work orders or projects as directed by the requesting area. This hourly rate often incorporates all the shop overhead, including supervision and building and equipment operating costs,
• Equipment rentals: This covers the cost of all mobile and stationery equipment rentals, such as cranes, flatbeds, backhoes, hydraulic rams, and so forth,
• Tool crib: This cover the cost of specialized hand tools and specialty tools, such as pneumatic wrenches, chain falls, hand grinders, acetylene torches, and so on, that are not included in materials (stores) or in shop services,
• Maintenance overhead: this may include all levels of maintenance management and supervision as well as maintenance and reliability engineering, planners, schedulers, material coordinators, clerks, and data input and computerized maintenance management systems support. It may also include any shops’ costs not included in shop services,
• Company or plant overhead: This normally includes a proportion of company management and executive overhead costs, including deprecation.
Along with the cost of the preceding categories of input measures, there may be specific non-cost measures for each. For example, when looking at materials, several statistics are used in inventory control:
• Inventory investment or value by cl *** and category,
• Inventory turns, defined as the ratio of total annual issues divided by the on-hand quantity at year end,
• Service level, defined as the ratio of service orders filled as requested,
• Stock-outs, defined as the number of orders unable to be filled as requested from the stores over a specified period of time,
• Inventory obsolescence, defined as the percentage of stock keeping units (SKUs) that have not been issued within a 24-month period.
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