Budget – An overview

Introduction

The purpose of maintenance budget is to plan, allocate, monitor, analyze and control the funds required for effective maintenance. The budget also helps in providing accurate and timely information to the management, which can facilitate in short, and long-term planning and decision making for effective control.

The maintenance budget involves five basic activities: Proposal, Plan, Allocation, Apportionment and Reviews. Proposal follows bottom-up approach to indicate the expected maintenance expenses for the plant and its child locations along with equipment at various locations. The budget is planned and approved for the Apex location for a particular fiscal year. The approved funds are then allocated to various locations using Top Down Approach. Various levels of reviews and analysis are provided to facilitate management to monitor apportioned funds for control cost, propose changes and for future planning.

Feature Highlights

• Propose maintenance budgets for individual equipment locations for a fiscal year, on the basis of expense history.

• Qualify proposals for a location by specifying the break up in terms of expected resources, spare parts and miscellaneous costs as well as with specific proposals for critical equipment within the location.

• Allocate maintenance budget for a fiscal year on the basis of the approved proposal.

• Facility to allocate budgets for different cost elements such as resource, material and miscellaneous costs and for exigencies.

• Allocate budgets for critical equipment within a location.

• Revise budgets in the event of extreme cost escalation or new projects being taken up.

• Apportion budget across monthly, quarterly and half yearly time periods, in percentage or absolute terms.

• Monitor cost performance by reviewing the actual maintenance expenses incurred against the budgeted amount for a location or for a period.

Record parameter values List of Activities