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To manage maintenance as part of the business, the firm
will be able to budget, and report and forecast variance
structured on workload
·
The
workload-based budget and variance report and forecast
are collectively the mandatory body of actionable
information to manage maintenance as part of the
business.
·
It is
hard to envision any program for maintenance and
reliability being fully successful without this body of
information.
·
Too
often we immediately think of "cost control, cost cutting or
saving money" at the mention of budgeting, and reporting and
forecasting variance.
o
Of
course, an unavoidable, but beneficial, outcome is
that overall maintenance cost is under control.
o
What
is actually being managed, according to a
budget as a business plan, are the drivers that decide
cost.
Important point:
Workload-based budgeting and variance reporting and
forecasting for maintenance is not intended to
interfere, change or replace the traditional accounting
system and its budget and variance. As a parallel
system, it serves the nature of managing maintenance as
part of the business that the traditional system
cannot. Consequently, the system increases the power of
the traditional system by giving the firm the means to
explain its content with granular and transparent
details.
Links to related
information:
Book:
Maintenance Reinvented and Business Success,
Chapter 8, Workload-based budget and variance.
Article:
Workload-based budgeting for maintenance.
Article:
Workload-based variance reporting for maintenance. |
