Description
This one-day course covers the fundamentals of maintenance budgeting and expense control, with a view to optimizing maintenance activities.
Participants will understand the value of applying and integrating the use of a well-established budget and its control in maintenance.
Recommended audience
Maintenance managers, budget managers and, in general, anyone recently involved in defining and monitoring a maintenance budget.
Learning Objectives
- Understand the fundamental operational and financial aspects
- Understand the basic principles and structure of a maintenance budget
- Understand the objectives, needs, and expectations of a maintenance budget
- Know how to differentiate maintenance costs from other costs
- Understand the concept of “Zero-Based Budgeting” versus historical-based budgeting
- Understand the importance of using a well-established budget and maintenance cost control
- Be able to identify the constraints and weaknesses to overcome when creating and managing a maintenance budget
Program
- Introduction
- Definition of a budget
- What is a budget?
- Why make a budget? What are the objectives?
- What are the objectives of maintenance?
- General situation in companies
- Financial concepts: Learn the language of finance
- Type and structure of costs
- Life cycle and TCO (Total Cost of Ownership)
- Financial flows
- Financial reporting
- Maintenance concepts
- Functional hierarchy
- Drawing up a maintenance plan: the main stages
- Importance of the choice of maintenance strategy on the budget
- Level of maturity – What level of detail is expected in a budget?
- 2 approaches: History-based or Zero Based Budget
- How to create a budget
- Budget definition and cost centers
- Types of expenditure
- Maintenance categories
- Progression and synthesis in 4 levels of maturity
- Starting point – Roadmap to building your budget
- The 5 steps
- Scope definition
- Data collection
- Strategy definition
- Compile information
- Validation with the maintenance team.
Prerequisites
Nihil
Course duration
1 day