% of maintenance cost from operation cost

[johngladstone]

Dears,
Is there any gentelan to give me range of percentage of maintenance cost from operation cost in the oil industry, production factory... Etc
To make bench marking for improvement chances.

Is maintenance cost deal as direct or indirect cost in income statement?

If there is any reference tables I will be fully appressiate

Thanks in advance
Best regards
John Gladstone

 

[gerhardl]

Hello johngladstone,


In my opinion, and experience from other industry groups, it would be fully feasible to form a group or make a system for bench-marking costs for maintnance in 'oil industry'.

It would however, to have any significant value, to be very detailed and specified. A multitude of cost, equipment, resource, quality/age/type of factory units, labour cost and types etc. would have to be defined and sorted out for each company. Book-keeping would be different or even non-existent for some of the necessary definitions, and will require extra preparation costs.

Others may know if comparisons has already been done in some form, valid for the 'production unit' you would belong to.

Secondly the oil industry differs worldwide, and is currently starting a process of implying 'internet of things'. This will again lead to a different focus for investments, and better maintenance with less costs both for maintenance and operation. This will complicate comparisons, but could also be included as parameters for comparisons.

Maintenance costs tend to be regarded as indirect cost. The reason is that because of lack of control and good maintenance policy, theese costs will often occur irregularily, unplanned and unexpected. With a good system, which you obviously is reaching for, the cost will have the opposite characteristics. Hence, in my opinion, to be ragarded as direct costs, as maintenance mainly is adirect result of production amount.

Anyway, more important than book-keping details, is a good planning system where each single component is logged with all technical data and history.

Hope others can contribute with more direct useable information!

 

[johngladstone]

Hi Gerhard,

I appressiate for your clarification.

We looking to make base line as comparative from another companies in same field to make comparison for opportunity of improvement and optimize the cost as percentage reduction..

Lack of reference document in the opportunity of improve in profit by decrease maintenance cost during operation is huge

You are right we plan to move into IIOT to decrease fuel cost and no of employees.

Also we looking to optimize change period of filters not related to the running time but related to the actual condition.

Hope any folks help us for more input with Gerald

Regards
John

 

[gerhardl]

Hi johnglastone,

I have experience working with and manage benchmark comparisons between companies within equal 'producing groups'. The problem is to get companies to participate and contribute with technical and economical details, even if you as a 'third part' and promise anonym comparisons lists.

One idea could be to let a local university or research institute initiate this as a technical/economical running research program with regular (yearly) statistical and special reports.

I would advise you to first systematize and make comparisons within your own company, and try to form ideas on which data you would like to have reported back.

One way would be to select a type of components which you suspect could be improved, and note systematic all necessary details of wear, inspection and maintenance cost as a first step. The work involved must be limited to a reasonable part of what you are expecting to save.


Good Luck!