How to achieve, manage and optimise your maintenance budget?
After personnel costs, maintenance costs are often the second largest fixed cost of a production site and therefore attract the attention of managers.
The maintenance budget is often based on the previous year's actual expenditure, is arbitrarily inflated, not based on anything and not transparent, and therefore induces sceptical attitudes.
Most maintenance managers are often not familiar with budgeting and cost management, just as managers are often not familiar with maintenance activities.
Content
This conference will provide insight into the fundamentals of budgeting for maintenance and ensuring expenditure controls in order to optimise maintenance activities and reduce costs accordingly. Participants will understand the value of applying and integrating the use of a well established budget and its control in maintenance. The main points that will be covered are
- Understanding the fundamental operational and financial aspects such as conversion costs, investments and expenses, variable and fixed costs, budget and control, etc.
- What are the goals, needs and expectations of a maintenance budget.
- Understanding the basic principles and structure of a maintenance budget.
- Which strategic choice to apply.
- Understand the principle of "zero-based budgeting" versus "historical budgeting".
- How to create a maintenance budget adapted to your activity.
- How and where to collect the data needed to produce a maintenance budget.
- How to set financial targets and KPIs.
- How to control expenditure against the maintenance budget.
- Understand the link between maintenance costs and best practices in the field such as the costs of reactive versus preventive maintenance.
- How to optimise maintenance costs based on performance indicators.
- How to support cost reduction through the application of continuous improvement.
- How to identify the constraints and weaknesses that need to be overcome to achieve a maintenance budget and its control.
- How to defend a maintenance budget to the management and how to share it with the maintenance team.
About the speaker
Roland Nyssen, a senior independent consultant for the past ten years, has more than 30 years of experience in the field of production and maintenance in both the chemical and food industry sectors.
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