Finance for Maintenance Engineers

Duration: 3 Days

Overview

Manufacturing and other infrastructure driven industries rely on strong and robust maintenance practices and process for the continuance of operations. Reliability and efficiency are at the heart of such industries, and have a direct impact on the bottom line.

However, engineering skills are not enough in themselves to ensure that the business generates adequate value. The modern maintenance manager needs an array of additional skills to run operations effectively, not least a strong understanding of finance.

 

This course is designed to impart financial best practices to managers and staff involved in the engineering and maintenance functions of the company. It presumes no previous experience on the part of the attendees.

Outline

Business cycle & Strategy

  • Understanding the relationship between the long-term corporate strategy and short-term operational goals

  • Insight into the business cycle and value creation

  • How engineering & maintenance functions impact, and contribute to, the business outcomes

Importance of the Maintenance Function

  • Correlation between Maintenance and Profitability

  • Spare Parts inventory and its role in Working Capital Management

  • Cost-effectiveness of Insourced and outsourced maintenance services

  • Industry benchmarks and best practices

Types of Maintenance Costs

  • Fixed & Variable costs

  • Direct & Indirect costs

  • Capital & Operating costs

  • Depreciation & Amortization

  • Scheduled & Unscheduled Maintenance costs

Maintenance Project Costing

  • Financial planning for turnaround projects

  • Financial planning for plant upgrades and new capacity

  • Feasibility techniques: ROI, Payback, DCF, NPV, IRR, EVA

  • Effect of turnarounds on product inventory

  • Opex Vs. Capex

Preparing the Maintenance Budget

  • Key elements of the maintenance budget: Labour, Spare Parts, Overheads etc.

  • Cost estimation techniques

  • Monitoring and controlling the budget

  • Feedback and improvement loop