Costs & KPIs · Intermediate
Review Labor Costs
Learn to review recorded labor costs in the ManWinWin App, tracing expenditure back to man-hours and their maintenance destinations. Identify which entries contribute most to the labor expenditure under review.
Understanding and controlling labor costs is paramount for effective maintenance management. By meticulously reviewing these expenditures, organizations can pinpoint inefficiencies, optimize resource allocation, and ensure that maintenance activities deliver maximum value within budgetary constraints.
Where it's available and step by step
Step by step in ManWinWin App
- 1
In the ManWinWin App, open Others > Records to consult costs recorded across work orders.
- 2
Select Man-Hours so that the review covers labor entries rather than Materials or Others.
- 3
Use the available search and filters to locate the records within your review scope, checking entry dates against the chosen period.
- 4
Open the relevant labor entries and review the recorded time and available cost information; do not treat hours alone as a monetary amount.
- 5
Check each entry's allocation to a work order, object, cost center or client to establish where the labor expenditure belongs.
- 6
Compare the time and cost information across the selected entries, noting the largest labor amounts and any entries whose cost needs clarification with the person responsible for maintenance costing.
Theory and technical background
The Significance of Labor Costs in Maintenance
Labor costs frequently represent the most substantial portion of overall maintenance expenditure. Accurate tracking and analysis of man-hours spent on tasks are crucial for assessing the true cost of asset ownership and the efficiency of maintenance operations. This data informs budgeting, helps identify areas for improvement in productivity, and supports strategic decisions regarding staffing and external contractors. Without proper oversight, these costs can spiral, impacting the organization's profitability and competitive edge.
Integrating Labor Costs with Asset Performance (ISO 55000)
ISO 55000 emphasizes the integration of financial and non-financial information to optimize asset value. Reviewing labor costs in conjunction with asset performance metrics (e.g., MTBF, availability) allows organizations to understand the cost-benefit ratio of their maintenance strategies. For instance, high labor costs on a specific asset might indicate recurring failures (poor reliability) or inefficient work processes, prompting a re-evaluation of maintenance tactics or asset replacement decisions. This holistic view is vital for sustainable asset management.
Cost Centers and Accountability (EN 13306)
EN 13306 defines various maintenance-related terms, including cost centers, which are essential for attributing expenditures. Assigning labor costs to specific work orders, assets, or cost centers provides clear accountability and allows for detailed cost-benefit analysis. This granular data enables managers to assess the financial impact of different departments or asset groups, facilitate accurate budgeting, and identify opportunities for cost reduction or process optimization. Transparent cost allocation is fundamental for strategic financial control.
Best practices
- Always verify that recorded man-hours align with actual work performed to avoid discrepancies.
- Use filtering extensively to segment labor costs by asset, type of maintenance, or technician for deeper insights.
- Regularly compare labor costs against planned budgets to identify overruns promptly and take corrective action.
- Engage with maintenance personnel to understand time recording challenges and improve data accuracy.
Frequently asked questions
Why is it important to differentiate between man-hours and monetary cost?
Man-hours represent effort, while monetary cost is the financial value of that effort, which can vary based on hourly rates, overtime, or specific roles. Failing to differentiate can lead to inaccurate budgeting and cost analysis.
How can this review help optimize maintenance budgets?
By identifying where labor costs are highest and why, you can reallocate resources more effectively, negotiate better rates, or streamline work processes to reduce expenditure without compromising maintenance quality.
What role does accurate data entry play in reviewing labor costs?
Accurate data entry is fundamental. Inaccurate time recording or misallocated costs will lead to flawed analysis, poor decision-making, and an inability to accurately assess the efficiency and cost-effectiveness of maintenance operations.
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