Guidelines for Budgeting and Costing Planned Maintenance Services

Abstract

Effective planned maintenance management enables an organization to gain uptime – the capacity to produce and provide goods and services to customers’ satisfaction, consistently. This becomes quite critical in capital intensive organizations because of the heavy investment in capital assets needed for serving customers. Planned (preventive) maintenance involves the repair, replacement, and maintenance of equipment in order to avoid unexpected failure during use. The primary objective of planned maintenance is the minimization of total cost of inspection and repair, and equipment downtime (measured in lost production capacity or reduced product quality). It provides a critical service function without which major business interruptions could take place. It is one of the two major components of maintenance load. The other component is unplanned (unexpected) maintenance. Planned maintenance could be time or use-based or could be condition-based.