Costs & KPIs · Intermediate

Register External Services and Costs

Learn to register a third-party maintenance service and its cost against a work order in the ManWinWin App, using Others in the work order’s Costs section.

Accurate tracking of external maintenance services and their costs is crucial for financial oversight and performance analysis. This guide shows you how to efficiently record third-party expenses directly within your work orders using the ManWinWin App, ensuring all maintenance-related expenditures are properly accounted for.

Where it's available and step by step

Step by step in ManWinWin App

1
In the ManWinWin App, open WOs and select the work order for the external service.
2
Check the work order’s equipment and intervention details to confirm that the expense belongs to this order.
3
Open Costs and choose Others to register the external service rather than internal labor or materials.
4
Complete the Cost Document information for the external service.
5
Enter the service details and cost using the available fields, and check that the record is allocated to the intended work order.
6
Save the cost record, then check it in the work order’s Costs section to confirm that the external service has been recorded correctly.

Theory and technical background

The Importance of External Cost Tracking

Tracking external services and their costs is fundamental for comprehensive maintenance budget control and financial reporting. These services often include specialized repairs, outsourced labor, or external inspections that impact the total cost of ownership (TCO) of assets. Proper registration ensures that the full expense of a work order is captured, facilitating accurate cost-benefit analyses and informing future procurement decisions. It also supports compliance with financial auditing standards by providing a clear record of expenditures.

Integrating External Services into Work Orders

Integrating external service costs directly into the associated work order provides a consolidated view of all expenses related to a specific maintenance task. This practice aligns with the principles of EN 13306, which emphasizes the structured management of maintenance activities and their resources. By categorizing external services under 'Others' in the ManWinWin App, you differentiate them from internal labor or materials, allowing for granular cost analysis. This approach simplifies financial reconciliation and enhances the accuracy of maintenance KPIs, like cost per hour or cost per repair.

Impact on Maintenance KPIs and Budgeting

Accurately recording external service costs significantly impacts the reliability and usefulness of key maintenance performance indicators (KPIs). KPIs such as Maintenance Cost per Unit of Output, Total Maintenance Cost (TMC), and Cost of Maintenance vs. Production Value become more precise. This detailed cost data is invaluable for budgeting and forecasting, enabling better allocation of resources and identification of cost-saving opportunities. It also allows for a clearer understanding of when outsourcing is more cost-effective than in-house execution, supporting strategic decision-making in asset management.

Best practices

Always confirm that the external service and its cost genuinely belong to the selected work order before saving.
Use descriptive details in the cost record to clearly identify the service provider and the nature of the work.
Regularly review recorded external costs to identify trends, potential cost overruns, or opportunities for negotiation.
Ensure all necessary documentation (invoices, service reports) is linked or referenced to the cost record for auditing.

Frequently asked questions

Why is it important to distinguish external costs from internal costs?

Distinguishing external from internal costs provides clarity on where maintenance spending originates. This separation is vital for budget allocation, supplier performance evaluation, and understanding the true cost efficiency of in-house versus outsourced maintenance operations.

Can I allocate an external service cost to multiple work orders?

Generally, each external service cost record should be allocated to a single, specific work order for accurate tracking and accountability. If a service covers multiple orders, it's best to split the cost proportionally or create separate entries.

How does recording external services help with budgeting?

Detailed external service records provide historical data on outsourced expenditures. This information is crucial for accurately forecasting future budgets, identifying potential areas for cost reduction, and negotiating better terms with external service providers.

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