ABSTRACT
One of the basic responsibilities of a maintenance manager is to prepare the annual maintenance budget. Managers should approach this task with enthusiasm and confidence. However, if they come up with a forecast simply by taking the previous year's budget and adding a little here and there, they will be shirking their duty. Producing a meaningful financial forecast takes work. Several factors should be considered in developing a thorough budget. The maintenance supervisor is responsible for monitoring the actual expenditures against the budget for the year. He or she is also responsible for its yearly update using forecasted labor rates and material and service contract costs. Maintenance budgeting decisions should consider whole-life costs, including the initial costs of procuring the component and the long-term maintenance, operating, and disposal costs. A budget developed at the asset level can be used as a tool to reduce and control costs, determine manpower requirements, identify training needs, and develop business cases.
