Abstract
Presently more and more organizations are replacing their reactive strategies for maintenance with proactive strategies such a preventative maintenance (PM). The goal being to maximize organizational profitability by decreasing asset downtime cost and increasing asset availability (therefore production). Successful implementation of PM activities necessitates a supporting budgeting strategy, set according to the maintenance need. PM needs can be quantified from asset failure frequency data using Failure Statistics (FS). Unfortunately, current budgeting strategies such as Traditional (Incremental) and Cost Replacement Value (CRV) budgets cannot integrate FS into its budgetary cycles. Recently, Work-Based Budgets (WBB) and Asset-Based Budgets (ABB) were put forward as alternative budgeting strategies. Their budgeting of proactive activities (PM) relies on attaining forecasted PM work orders. These work orders encompass all the PM activities planned for the budgeted year. Therefore, planning PM activities in line with FS, maintenance budgets (WBB and ABB) can finally incorporate PM needs into its budgetary cycles.
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