Maximo Work Order Costing

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Work Order Cost Strategies When implementing a CMMS/EAM (computerized maintenance man- agement system/enterprise asset management) system, such as IBM Maximo, there are numerous challenging functional, or business related topics that arise in almost every project we encounter. In this series of articles, I will address these issues with the goal to help you make informed decisions on these critical implementation elements. The first article dealt specifically with labor reporting and timekeeping, including considerations when making important implementation decisions related to time tracking. This article addresses additional cost tracking elements that are required to get quality work order records to achieve the right goals for your business. Throughout the article, you will note that I continually remind you to go back to your initial strategy and goals for investing in a CMMS. Keeping your goals in mind will help you to normalize your input data to ensure an equitable outcome. Work Order Costs Tracking work order costs is both a fundamental and critical aspect of your CMMS. It should be every maintenance manager's goal to ensure that all costs related to performing work are accurately tracked, entered, and accounted for within each work order record. IBM Maximo captures this data within the Work Order "Actuals" tab in categories that include Labor, Materials, Tools, and Services. While the names may change, any robust CMMS platform should be able to track and capture these resource expenditures at the work order level, both quantitatively (how many), and financially (cost). In the last article, I discussed time tracking. Time, or labor, is one of several types of costs that should be tracked within each work order. This is also an area that can be easily abused or "pad- ded" rendering overall trending and analysis much less meaningful. Other costs that should be tracked each require specific attention, which facilitates realiza- tion of long term value from your CMMS. The first step in the decision process is to determine the overall goals of your system. Most maintenance management systems (including Maximo) focus on core asset management as the driving force behind their design. This translates to a design centered strictly on the total cost of ownership and performance of an asset/equipment, from purchase to disposal. At first glance, you might agree that this is your goal; this is what you want to track in your CMMS. However, as implementation gets closer, you may find these objectives difficult to achieve because costing issues weren't carefully considered in advance. What Could Go Wrong? Again, focusing on total cost of ownership and performance of an asset from pur- chase to disposal might be the assumed goal of every implementation. However, there are aspects of work order cost track- ing that make this difficult to achieve, if you do not consider them carefully. Your CMMS is not an accounting system. Accounting goals are different, and to get the best results, you need to consider strategies that may differ consider- ably from those employed strictly for accounting. Over the coming months, Interloc Solutions will be publishing a series of articles providing real world functional advice for your Maximo implementation. Last time, we focused on the impor- tance of Labor Reporting and Timekeeping This article focuses on best practices for work order costs. About David Dawson: Dave Dawson is the Vice President, Professional Services at Interloc Solutions. Dave has worked in the Maintenance field for over 25 years. His background contains a rather unique combination of real world/front-line experience and business education, as well as process consulting and Maximo implementation. Dave has worked as a mechanic, a lead mechanic, a maintenance supervisor, and a maintenance manager. As a maintenance manager, he was responsible for a fleet of more than 2500 pieces of equipment, with an annual operating budget of over $24 million. Dave's consulting highlights include working with the 3 largest common carriers in North America, the world's largest airline, and numerous other Fortune 500 clients and large public sector organizations. As a maintenance management and process consultant his guidance is extremely credible and proven, always based on what really works in the real world. Work Order Costing Strategies that Work for Maximo

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