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Mechanical systems maintenance is one of the most expensive budget
items that plant and facilities engineers must justify. To contain costs, building
maintenance personnel should ensure that all components, equipment and systems
are operating at their design specifications and are reliable enough to avoid
unplanned downtime. But making a business case to the bean counters also means
showing that cost avoidance exceeds the cost of service, especially during
these difficult economic times.
Justifying building maintenance costs isn't a simple task,
however. There are a number of factors to consider, including average component
failure rates and projected system deterioration. Plant and facilities engineers
must also differentiate mission-critical and run-to-failure components.
Accounting for the business impact on the organization is also part of the "big
picture" that maintenance personnel must paint during budget meetings.
There are multiple methods for estimating service costs and
paybacks, but what's the best one to use? Does your maintenance manager use the
simple payback method, or more sophisticated models such has internal rate of
return or net present value?
Source: Facilities
Engineering Journal
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Re: How Do You Justify Building Maintenance Costs?
