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Failure Statistics: Budgeting Preventative Maintenance Activities Using Forecasted Work Orders

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9th WCEAM Research Papers

Part of the book series: Lecture Notes in Mechanical Engineering ((LNME))

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Abstract

Presently more and more organizations are replacing their reactive strategies for maintenance with proactive strategies such a preventative maintenance (PM). The goal being to maximize organizational profitability by decreasing asset downtime cost and increasing asset availability (therefore production). Successful implementation of PM activities necessitates a supporting budgeting strategy, set according to the maintenance need. PM needs can be quantified from asset failure frequency data using Failure Statistics (FS). Unfortunately, current budgeting strategies such as Traditional (Incremental) and Cost Replacement Value (CRV) budgets cannot integrate FS into its budgetary cycles. Recently, Work-Based Budgets (WBB) and Asset-Based Budgets (ABB) were put forward as alternative budgeting strategies. Their budgeting of proactive activities (PM) relies on attaining forecasted PM work orders. These work orders encompass all the PM activities planned for the budgeted year. Therefore, planning PM activities in line with FS, maintenance budgets (WBB and ABB) can finally incorporate PM needs into its budgetary cycles.

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Authors and Affiliations

  1. Asset Care Research Group, Industrial Engineering Department, Stellenbosch University, Stellenbosch, 7600, South Africa

    Petrus Daniël Swart & Pieter-Jan Vlok

Authors
  1. Petrus Daniël Swart
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  2. Pieter-Jan Vlok
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Correspondence to Petrus Daniël Swart .

Editor information

Editors and Affiliations

  1. Department of Engineering and Technology Management, University of Pretoria, Pretoria, South Africa

    Joe Amadi-Echendu

  2. Dynacon Consulting Engineers (Pty) Ltd, Johannesburg, South Africa

    Changela Hoohlo

  3. Asset Institute, Brisbane, Queensland, Australia

    Joe Mathew

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Swart, P.D., Vlok, PJ. (2015). Failure Statistics: Budgeting Preventative Maintenance Activities Using Forecasted Work Orders. In: Amadi-Echendu, J., Hoohlo, C., Mathew, J. (eds) 9th WCEAM Research Papers. Lecture Notes in Mechanical Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-15536-4_27

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  • DOI: https://doi.org/10.1007/978-3-319-15536-4_27

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-15535-7

  • Online ISBN: 978-3-319-15536-4

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