ABSTRACT
This chapter presents important aspects of maintenance costing. The maintenance phase is an important element of the equipment life cycle during which equipment must be maintained satisfactorily for effective performance. Direct costs are associated with keeping the equipment operable and include costs of periodic inspection and preventive maintenance, repair cost, overhaul cost, and servicing cost. Degradation costs are associated with deterioration in the equipment life due to unsatisfactory/inferior maintenance. A maintenance budget serves as an important tool to control financial resources necessary for running the maintenance department. The project budget is concerned with special projects or programs such as computerized maintenance management systems, major capital equipment purchases, and major construction projects. The cost of maintenance materials is an important component of the total maintenance cost. Well-planned and efficiently operated stock and storerooms can significantly reduce the cost of materials as the costs of excessive inventory and obsolete parts are important factors in most maintenance storerooms and stockrooms.
