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The maintenance budget consists mainly of wage and training costs of technicians, managers and indirect personnel, the costs of spare parts and tools and the costs of contracted personnel and outsourced work. Savings on the maintenance budget automatically generate free cash flows in the future and, by consequence, value.
Reliability-centered maintenance (RCM) is a concept of maintenance planning to ensure that systems continue to do what their users require in their present operating context. [1] Successful implementation of RCM will lead to increase in cost effectiveness, reliability, machine uptime, and a greater understanding of the level of risk that the ...
Chemical plant cost indexes are dimensionless numbers employed to updating capital cost required to erect a chemical plant from a past date to a later time, following changes in the value of money due to inflation and deflation. Since, at any given time, the number of chemical plants is insufficient to use in a preliminary or predesign estimate ...
Estimating the cost savings required to justify the purchase of new equipment. [13] Determining the cost of continuing with existing equipment. [14] Where an asset undergoes a major overhaul, and the cost is not fully reflected in salvage values, to calculate the optimum life (i.e., lowest EAC) of holding on to the asset. [15]
Maintenance, and hence maintenance engineering, is increasing in importance due to rising amounts of equipment, systems, machineries and infrastructure. Since the Industrial Revolution , devices, equipment, machinery and structures have grown increasingly complex, requiring a host of personnel, vocations and related systems needed to maintain ...
However, in the context of a maintenance contract, it would be important to distinguish whether MTTR is meant to be a measure of the mean time between the point at which the failure is first discovered until the point at which the equipment returns to operation (usually termed "mean time to recovery"), or only a measure of the elapsed time ...
For example, the costs of heating and cooling a factory in Illinois will be highest in the winter and summer months and lowest in the spring and fall. If the overhead rate is recomputed at the end of each month or each quarter based on actual costs and activity, the overhead rate would go up in the winter and summer and down in the spring and fall.
Some examples of indirect costs and their drivers are: indirect costs for maintenance, with the possible driver of this cost being the number of machine hours; or the indirect cost of handling raw-material cost, which may be driven by the number of orders received; or inspection costs that are driven by the number of inspections or the hours of ...