Work Orders · Intermediate

Consult Maintenance Costs by Work Order

Learn to consult the costs recorded against a single work order and relate them to the intervention performed. Review labor, materials and external services to understand the order’s recorded cost.

Understanding the costs associated with each maintenance work order is crucial for effective budget management and continuous improvement. By consulting these costs, organizations can identify areas for optimization, assess intervention efficiency, and make data-driven decisions regarding asset lifecycle costs. This process ensures financial accountability for maintenance activities.

Where it's available and step by step

Step by step in ManWinWin Desktop

1
Open the work orders list and select the completed intervention whose costs you want to consult.
2
Open the order and confirm its reference, associated equipment and description of the work performed so that the review concerns the intended intervention.
3
Consult the cost information associated with this order, distinguishing recorded consumption from planned or estimated resources.
4
Review the recorded labor hours and their associated costs, checking how they relate to the work documented on this order.
5
Review the materials consumed on this order and their recorded quantities and costs, including stock issues and direct applications where applicable.
6
Consult the external services and other costs linked to this order, checking the associated cost documents where available.
7
Bring together the recorded labor, material and other cost amounts to assess the intervention’s total recorded cost, and note any missing or unexplained amounts for follow-up without changing the records.

Theory and technical background

Importance of Work Order Cost Tracking

Accurate tracking of work order costs is fundamental for robust asset management, aligning with principles of ISO 55000. It allows for a precise understanding of the financial impact of maintenance activities on asset performance and overall operational expenses. This data is vital for calculating key performance indicators (KPIs) such as Maintenance Cost per Unit of Production or Total Maintenance Cost, enabling better budget forecasting, cost control, and strategic resource allocation. Without detailed cost records, it's challenging to justify maintenance investments or identify cost-saving opportunities.

Components of Maintenance Costs

Maintenance costs generally comprise three main categories: labor, materials, and external services. Labor costs include wages, benefits, and overheads associated with technicians' time spent on an intervention. Material costs cover spare parts, consumables, and other items issued from stock or directly purchased for the job. External services encompass costs for specialized contractors, rented equipment, or outsourced repairs. Thoroughly reviewing each component against the work performed provides a holistic view of the intervention's economic impact, distinguishing between planned and actual expenditures to reveal variances.

Relating Costs to Asset Performance and Strategy

Analyzing work order costs in relation to asset performance metrics, such as MTBF (Mean Time Between Failures) and MTTR (Mean Time To Repair), is essential for strategic maintenance. High corrective maintenance costs on specific equipment might indicate a need for improved preventive strategies or component upgrades. Similarly, comparing costs across similar assets can highlight discrepancies in operational efficiency or maintenance practices. This analytical approach supports criticality assessments as per EN 13306 and ISO 14224, guiding decisions on repair vs. replace, spare parts inventory optimization, and future maintenance planning to achieve optimal asset lifecycle value.

Best practices

Regularly compare recorded costs with planned estimates to identify deviations and understand their causes.
Ensure all labor hours, materials, and external services are accurately captured and linked to the correct work order.
Use cost data to identify 'bad actors' – equipment with consistently high maintenance costs – for targeted improvement.
Integrate cost analysis with asset criticality to prioritize maintenance investments effectively.

Frequently asked questions

Why is it important to consult costs by work order?

Consulting costs by work order allows for precise financial tracking of maintenance interventions. It helps identify cost drivers, assess efficiency, and informs budget decisions, ultimately optimizing resource allocation and improving asset reliability.

What types of costs should I look for in a work order?

You should review labor costs (technician hours and rates), material costs (spare parts, consumables), and external services (contractors, specialized tools, rentals). These three components typically cover the full expense of an intervention.

How can cost analysis improve maintenance strategy?

Cost analysis helps identify inefficient processes or problematic assets. It allows for data-driven decisions on preventive maintenance schedules, spare parts inventory, and potential upgrades, leading to reduced overall operational costs and enhanced asset longevity.

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