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2002 Maintenance Costing and Budgeting Survey Results
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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 Manager | 70 | 4 | 1 | 9 |
| Maintenance Planner | 37 | 16 | 1 | 30 |
| Maintenance Supervisor | 37 | 17 | 2 | 28 |
| Plant/Maintenance/Reliability Engineer | 35 | 10 | 2 | 37 |
| Production Manager | 32 | 15 | 3 | 34 |
| Maintenance Technician/Trades/Craftsman | 16 | 27 | 2 | 39 |
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 Manager | 61 | 5 | 2 | 16 |
| Maintenance Supervisor | 37 | 15 | 1 | 31 |
| Production Manager | 36 | 9 | 4 | 35 |
| Maintenance Planner | 34 | 11 | 2 | 37 |
| Plant/Maintenance/Reliability Engineer | 33 | 8 | 1 | 42 |
| Maintenance Technician/Trades/Craftsman | 13 | 3 | 1 | 47 |
If you wish to copy or distribute this article, please email me to ask for permission first!
(Permission will generally be granted, so long as appropriate credit is given to its origin).
Copyright 1996-2009, The Plant Maintenance Resource Center . All Rights Reserved.
Revised: Thursday, 08-Oct-2015 11:51:44 AEDT
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