Saturday, May 15, 2010

Maintenance budgeting

I am a frequent traveler in the new AC buses started by BEST (Mumbai public transportation). They are very comfortable buses and they run more or less on time. Generally there is a place to sit and it goes significantly faster than the other buses. Lastly given the record breaking heat and the pollution around, the bus presents a great option.

Early last month I saw that the digital watch in one bus was not working. Next, in a few buses I saw the radio/ speaker system not functioning. Yesterday I saw a bus with the LED display that shows the destination in a faulty state. All this is really surprising since the buses are less than 6 months old.

Somewhere 'maintenance planning' is not a part of the budget and operations in many organisations. Assets wear out. In any business that is dominated by such assets, it is imperative that some resources are committed to ensure a certain minimum level of performance. Maintenance is a big expense these days and companies have to ensure that this is budgeted in the capital budgeting plans and the reasonable costs taken care of. Besides the cost, there has to be a seperate process to ensure that defective and worn out parts are replaced regularly.

Maintenance is not rocket science. Most equipment have a specific life cycle and need replacement in a specific time period. Organisations have to factor this and create individual or group replacement policies for components. The overall aim would be to ensure that the asset gives the desired performance for the longest possible time period.

3 comments:

Rahul said...

In case of the buses too, there should be some annual maintenance contract. May be the frequency of maintenance checks would be once every year – that would be very late. So in such organizations preventive or predictive maintenance would be far off – and corrective maintenance itself seems to be a dream. Your point about factoring maintenance costs in the budget – is a hit on the nail. That itself, if missing, would make a lot of things difficult….

Lajja said...

Not just buses,but the point stands valid for most of the government owned public properties for the entire city...Would privatisation to an extent be a solution to the current poor scenario ???

Piyush Shah said...

@Lajja: Maybe. I have seen private organisations with poor maintenance also. And there are public organisations with amazing maintenance (like BHEL, NTPC). I think the issue is about making someone accountable and having the process in place.