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  • 1.  Annual budget of maintenance department

    Posted 06-27-2023 02:41 AM

    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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  • 2.  RE: Annual budget of maintenance department
    Best Answer

    Posted 06-28-2023 08:16 AM
    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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  • 3.  RE: Annual budget of maintenance department

    Posted 06-29-2023 07:05 AM

    Thanks for your guidance 



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    Brajesh Upadhyay
    Engineering Executive
    Dubai
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  • 4.  RE: Annual budget of maintenance department

    Posted 06-29-2023 12:27 PM

    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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  • 5.  RE: Annual budget of maintenance department

    Posted 06-30-2023 08:33 AM
    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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  • 6.  RE: Annual budget of maintenance department

    Posted 07-03-2023 07:46 AM

    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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