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2002 Maintenance Costing and Budgeting Survey Results
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2002 Maintenance Costing and Budgeting Survey Results

Ó Plant Maintenance Resource Center

Overview

This survey of Maintenance costing and budgeting practices was conducted on the Plant Maintenance Resource Center website between November 2001 and January 2002. The survey highlights some interesting findings, which will form the basis for later, comparative surveys in future years.

Summary of Key Findings

Voluntary (and confidential) responses were sought to the survey, and 84 valid responses were received.

The key findings are:

  • Overwhelmingly, budgets are prepared based on the previous year's budget, with over one-third of respondents also indicating that budgets were adjusted to meet management cost targets
  • In general, maintenance budgets appear to be prepared with a moderate level of detail.
  • Maintenance Managers are most involved in the budgeting process, with Maintenance Planners and Supervisors being about half as likely as the Maintenance Manager to be involved in the process.
  • Maintenance Managers, Production Managers and Engineers are most likely to own the Maintenance budget.
  • The overwhelming majority of budgets are prepared or revised annually, but many organisations update their budgets more often than this.
  • The overwhelming majority of cost reports are issued monthly, with weekly being the next most popular response.
  • Maintenance Managers are most likely to receive regular maintenance cost reports. Shop floor maintenance personnel are more likely to be kept "out of the loop".

Respondent Data

Of the 84 valid responses, Maintenance line management positions and Maintenance Engineering positions were well represented in the survey.
Position Responses % of Total
Maintenance Manager/Superintendent 30 35.7%
Plant/Maintenance Engineer 13 15.5%
Maintenance Planner 9 10.7%
Maintenance Foreman/Supervisor 7 8.3%
Consultant 5 6.0%
CMMS Support Professional/Officer 4 4.8%
Production/Operations Manager 3 3.6%
Materials/Supply Manager 2 2.4%
Maintenance Crafts/Tradesperson 1 1.2%
Process/Industrial Engineer 1 1.2%
Contractor 1 1.2%
Other 5 6.0%
Don't Know (!) 3 3.6%

Which phrase best describes how you prepare your Maintenance budget?

Overwhelmingly, budgets are prepared based on the previous year's budget, with over one-third of respondents also indicating that budgets were adjusted to meet management cost targets

Budgeting Method Responses % of Total
Based on previous year's budget with adjustments to meet Management cost targets 30 35.7%
Based on previous year's budget with adjustments for changes in production throughput 26 31.0%
Based on previous year's budget with adjustments for price inflation 6 7.1%
Completely Zero Based 5 6.0%
Zero Based for Large Expenditure items only 3 3.6%
Other 3 3.6%

Which phrase best describes the level of detail to which you prepare your Maintenance budget?

In general, maintenance budgets appear to be prepared with a moderate level of detail.

Budget Detail Responses % of Total
Separate budgets for each major process/equipment area 39 46.4%
Budget for the plant/facility as a whole 19 22.6%
Separate budgets for each item of equipment 9 10.7%
Separate budgets for each component of each item of equipment 4 4.8%
Other 4 4.8%
Don't Know 3 3.6%

Who is Involved in the Maintenance Budgeting Process?

Perhaps not unsurprisingly, Maintenance Managers are most involved in the budgeting process, but it appears that Maintenance Planners and Supervisors are about half as likely as the Maintenance Manager to be involved in the process.

  Involved in Budgeting?
Position Yes No Don't Know No Opinion
Maintenance Manager70419
Maintenance Planner3716130
Maintenance Supervisor3717228
Plant/Maintenance/Reliability Engineer3510237
Production Manager3215334
Maintenance Technician/Trades/Craftsman1627239

Who "owns" the Maintenance Budget at your workplace?

Maintenance Managers, Production Managers and Engineers are most likely to own the Maintenance budget.

Position Responses % of Total
Maintenance Manager/Superintendent 44 52.4%
Production/Operations Manager 12 14.3%
Plant/Maintenance Engineer 12 14.3%
Maintenance Foreman/Supervisor 6 7.1%
Maintenance Planner 2 2.4%
No Opinion 4 4.8%
Other 2 2.4%
Don't Know 2 2.4%

How often do you prepare or revise the Maintenance Budget?

The overwhelming majority of budgets are prepared or revised annually, but many organisations update their budgets more often than this.

Frequency Responses % of Total
Daily 1 1.2%
Weekly 1 1.2%
Monthly 8 9.5%
2 Monthly 1 1.2%
3 Monthly 7 8.3%
4 Monthly 4 4.8%
6 Monthly 7 8.3%
Annually 49 58.3%
Don't Know 6 7.1%

How often are routine Maintenance cost reports issued?

The overwhelming majority of cost reports are issued monthly, with weekly being the next most popular response.

Frequency Responses % of Total
Daily 1 1.2%
Weekly 9 10.7%
Monthly 48 57.1%
2 Monthly 2 2.4%
3 Monthly 4 4.8%
6 Monthly 3 3.6%
Annually 5 6.0%
Every 2 Years 1 1.2%
Don't Know 1 1.2%

Who receives regular Cost Reports?

Again not unsurprisingly, Maintenance Managers are most likely to receive regular maintenance cost reports. Shop floor maintenance personnel are more likely to be kept "out of the loop".

  Receive Cost Reports?
Position Yes No Don't Know No Opinion
Maintenance Manager615216
Maintenance Supervisor3715131
Production Manager369435
Maintenance Planner3411237
Plant/Maintenance/Reliability Engineer338142
Maintenance Technician/Trades/Craftsman133147

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