How do we prepare a maintenance budget?

Creating such a budget involves analyzing maintenance history, determining future needs and taking into account all associated costs.

Here are the main steps for developing a maintenance budget:

• Analyze historical maintenance data (repairs, spare parts, labor costs). Identifies possible trends regarding the frequency or type of defects
• Determines the frequency of preventive maintenance: based on the manufacturer's recommendations, experience, degree of use of the equipment
• Identifies critical equipment components and assesses the risks associated with their failures.
• Estimates the need for spare parts and consumables: based on manufacturers' recommendations, previous failures and the need for consumables. For industrial equipment and machinery, it is considered reasonable if the value of spare parts is somewhere between 2% and 10% of the total value of the asset
• Labor costs: calculates the time and resources required for each type of intervention (predictive, preventive and corrective). It includes the salaries and benefits of the technical staff who perform the repairs and maintenance. It can be somewhere between 20%-35% of the total budget.
• Includes a reserve fund (typically 5% - 15% of the total budget) for unforeseen repairs or major breakdowns.
• Upgrades - if equipment requires technology upgrades or is nearing the end of its useful life, budget for upgrades or replacements.
• Possible external services

The annual maintenance budget of an asset / equipment can vary between 5% and 20% of the initial value of the asset, but can significantly depend on the type of asset, frequency of use, environment and working conditions.

Good luck!