Estimating Materials Costs

Objective:
We review procedures in
identifying the materials
and their cost for specific
maintenance work order.
Typically, maintenance
materials represent what?
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Estimating Materials Costs

The planning function in maintenance work
identifies not only what is required, but how it
should be acomplished. The former involves
identification of the problem, its location, and
its priority. The latter includes the specification
of the methods to be used and the manning
requirements. Methods to be used include the
identification of the material and tool
requirements as well as satandard times in
connection with the work.
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Estimating Materials Costs

Selecting and Costing Nonstock Items.
Identification of nonstock items needed to
complete the repair or overhaul of equipment
being maintained is usually apparent from the
work order request and drawings of the
equipment. Usually these itmes are inventoried
in the storeroom and a balance of stores ledger
will provide information as to their most recent
purchase cost.
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Estimating Materials Costs

Selection and Costing of Stock.
Stock that will be needed to complete the repair
should be identified during the planning function.
All materials that must be sized for the repair work
under consideration are identified as stock.

Estimating Materials Costs

Materials Control Procedures.
The efficient material planner is always considering possible
ways to minimize inventory needs. Often the plant is located
near reliable suppliers who maintain an adequate inventory of
certain items, thus allowing the user to stock a much smaller
inventory than would other wise be needed.
What stock items are to be carried as regular repaire stock is a
consideration that should be carefully planned. Periodic
monitoring to review turnover intervals, shrinkage, and stock
designations is important in controlling the optimum size of
inventory. Not only what stock items but what specific type
should be carried is an ongoing problem.
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Estimating Materials Costs

Reducing Inventories of Spare Parts.
There is a natural tendency to overstock spare
parts to assure that neccesary components are
available when equipment breaks down.
A sound maintenance management engineering
program through its cost improvement activities
should always recognize potential savings in
inventory to be realized through efficient repair
rather than replacement.
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