All Member Open Forum

From last 11 years I am working in FMCG/Pharma company as a non manager position. 

The main concern is, How can I make annual maintenance budget if in future promoted as managment position. 

&

Please consider this point- if every upcoming year management accepting less budget than last year.

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Brajesh Upadhyay
Engineering Executive
Dubai
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You should start by reviewing historical spending and performance against expectations.

The simplest approach requires you to know a headcount: how many people do you have, or need, or are allowed to have. (This could be direct employees or temporary employees in the form of service contracts.)

To do this accurately you must forecast work requirements somehow. So you’ll need to know about the weekly, monthly, and annual planned work, plus an average rate of surprise work.

Then add factors for material, overtime, and overhead. Like material 1:1, overtime 10% or whatever history supports, and the payroll costs for en employee, or contract management costs.

At first don’t include major, irregular repairs.

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Karl Burnett

General Electric
Anderson SC
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Thanks for your guidance 

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Brajesh Upadhyay
Engineering Executive
Dubai
------------------------------

Original Message:
Sent: 06-28-2023 08:15 AM
From: Karl Burnett
Subject: Annual budget of maintenance department

You should start by reviewing historical spending and performance against expectations.

The simplest approach requires you to know a headcount: how many people do you have, or need, or are allowed to have. (This could be direct employees or temporary employees in the form of service contracts.)

To do this accurately you must forecast work requirements somehow. So you'll need to know about the weekly, monthly, and annual planned work, plus an average rate of surprise work.

Then add factors for material, overtime, and overhead. Like material 1:1, overtime 10% or whatever history supports, and the payroll costs for en employee, or contract management costs.

At first don't include major, irregular repairs.

---------------------------------
Karl Burnett

General Electric
Anderson SC
---------------------------------

Using a CMMS going forward if you are not having access to one will help you capture the data you need not only for your budget, but for your work requirements and safety documentation as well.  

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Harold Kohal
Managing Director
TMA Systems, Inc.
Wauwatosa WI
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Original Message:
Sent: 06-29-2023 07:04 AM
From: Brajesh Upadhyay
Subject: Annual budget of maintenance department

Thanks for your guidance 

------------------------------
Brajesh Upadhyay
Engineering Executive
Dubai
------------------------------


Original Message:
Sent: 06-28-2023 08:15 AM
From: Karl Burnett
Subject: Annual budget of maintenance department

You should start by reviewing historical spending and performance against expectations.

The simplest approach requires you to know a headcount: how many people do you have, or need, or are allowed to have. (This could be direct employees or temporary employees in the form of service contracts.)

To do this accurately you must forecast work requirements somehow. So you'll need to know about the weekly, monthly, and annual planned work, plus an average rate of surprise work.

Then add factors for material, overtime, and overhead. Like material 1:1, overtime 10% or whatever history supports, and the payroll costs for en employee, or contract management costs.

At first don't include major, irregular repairs.

---------------------------------
Karl Burnett

General Electric
Anderson SC

Addition to what has mentioned by the other gents, and after use tge historical expenses and ZBB method, you can cross check the suitability budget by applying the RAV as Maintenance KPI.

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Samih Abdalazeez, CMRP

Assistance Maintenance Manager
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Activity Based Budgeting.  Last year's spending may have anomalies or other unforeseen expenditures. If you have defined what tasks/activities your staff needs to perform and you have time estimates for those activities, average labor rate you can then determine the most accurate budget.

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Andrew Gager CAMA, CMRP, CPIM, CRL, CSSGB
CEO / President
Wake Forest NC
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Original Message:
Sent: 06-30-2023 08:32 AM
From: Samih Abdalazeez
Subject: Annual budget of maintenance department

Addition to what has mentioned by the other gents, and after use tge historical expenses and ZBB method, you can cross check the suitability budget by applying the RAV as Maintenance KPI.

---------------------------------
Samih Abdalazeez, CMRP

Assistance Maintenance Manager
---------------------------------