Create Proposal – A summary of the activity

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 facilitates in short-term and long-term planning, and decision making for effective control.

The maintenance budget involves five basic activities. They are “Proposal”, “Plan”, “Allocation”, “Apportionment” and “Reviews”.

A proposal is a means by which a planner can estimate the expected expenses for his location (and for the equipment within his location) for a given financial year. The planner can define the proposal for the entire location. The planner can also define a proposal for a location based on a user-defined type and category of work. A proposal is defined following a bottom-up approach, that is a proposal is first defined for the lowermost location in the Location Hierarchy. The proposal for the parent location will include the proposal details of its child location.

The total amount that is proposed for the location consists of the expenditure that will be incurred on skills, spare parts, tools, other resources, the services that are out-sourced and any other miscellaneous expenditure. If the total proposed amount is greater than the sum of its constituents then the balance amount is treated as a buffer for any unexpected expenses.

The proposal attains the “Fresh” status on creation. There can be more than one proposal in the ”Fresh” status for a location and financial year. You can cancel a proposal that is in the “Fresh” status. On cancellation, the status of the proposal is set as “Cancelled”.

You can approve a proposal. On approval, the status of the proposal changes to “Approved”.

You can also create a proposal for a location and financial year for which a proposal was already created and approved. In such cases, when the latest proposal is approved, the status of the previously approved proposal is set as “Superceded”.

The following diagram depicts the various actions that can be carried out on a proposal:

Figure: Statuses of proposal

Getting familiar with the pages inside

What you can do in this activity

Create Proposal

Define proposal details for the equipment belonging to the location

Create Proposal

A proposal is a means by which a planner can present the expected expenses for his location and for the equipment within his location for a given financial year.

• Use the “Create Proposal” page to create a proposal.

Define proposal details for the equipment belonging to the location

You can apportion the proposed amount, that has been defined for the location, among the equipment that belong to the location.

• Use the “Proposal For Equipment” page to define proposal details of the equipment of a location.