From time to time it becomes clear that an item of equipment is expensive to maintain and it would be cheaper to replace it. To get moneys for the change it is necessary to justify the expenditure and prove that replacement is a better decision than keeping the existing item. In this guide you will be taken through the necessary steps to fully compare and justify the alternatives. You will be directed how to make simple but convincing presentations to the financial people and departmental managers. The appropriate formulas and spreadsheet layouts will be developed simply and explained fully. By following the procedure and methods covered in this guide you will make such a strong case for replacement that people will give you the necessary money to do it. Adobe Acrobat Reader required.

Valuable secrets in every work order report. The work order report is the maintainer’s opportunity to advise the engineer what problems exist with equipment out in the plant. It can also provide an accurate record of what was found during the repair. This makes it important that work order reports are completed in detail and are reviewed by managers and engineers. Adobe Acrobat Reader required.

How accounting policies affect maintenance costs. Accounting decisions can greatly affect maintenance costs. Two examples are the decision to purchase items as maintenance or capital and how to number plant asset items. Adobe Acrobat Reader required.

Quality is a mindset! When a wise man is given the chance to buy quality items he does so because quality pays for itself. A quality item lasts longer, runs better and looks good when others fade. To change the way you think about quality takes a lot of experience with using poorer options. When you are sitting down with your head in your hands wondering what can be done to get costs down, to get production up and how you are going to hit the key performance indicators, remember the importance of quality equipment, quality systems, quality training and your quality mindset!

When equipment is first selected the buyer has the choice to buy for quality and long trouble-free operating life or to buy based on least cost. The least cost choice will result in high maintenance and operating expense for the life of the equipment. When net present value cost of maintenance for cheap equipment is calculated in today’s dollars investors will discover that a large part of their capital will never earn them income but will be spent on maintenance and repair.

A benchmark is the end distance point from the start. In the world of maintenance it is the name for the targets that an organisation sets for itself in an improvement program. Benchmarking is often against world-best practice and it is used to provide direction and focus in an organisation’s efforts to improve. When RAV is chosen as the benchmark it means that the annual cost of maintaining the plant will be measured against the value of the plant. RAV is a percentage of the cost to replace the plant. The lower the RAV the more effective the maintenance effort.

The very best asset managers have maintenance under control. Their entire organisation’s systems and methods are tuned to preventing unplanned stoppages. They only do that which has first been thought through and prepared for. But most importantly they understand the key factor to excellent asset care and work toward it continuously and energetically.

Life cycle costing (LCC) is a way of analysing purchase choices and coming up with a justification to purchase a piece of equipment. If the analysis is done right and all factors are addressed, and the information is good, you would select the item that cost the least amount to own (buy and use) over its working life. This piece of equipment would perform its service at the lowest total cost to the organisation than any other comparable item.

Budgets represent plans or expectations for the future! They are a means to plan, forecast, coordinate and control the activities needed to achieve the business’ objectives. The budget document contains the amount of money that has been allocated to achieve those goals and the timing of its spending. Budgets cover the planned use of men, materials, external resources and management effort that is expected to be sufficient to hit the targets. Once the budget is finalised it becomes a tool to feedback how the actual progress is going compared to what was expected.