Maintenance Management Economics

Most of our business is controlled by finance and financial KPI`s. In M&R, this translates into shrinking budgets, poor access to equipment for needed PMs, cheap and unreliable equipment and spares and no meaningful representation in the Executive suite.

A significant change in the role of Maintenance Managers is happening around the world – their emergence as a Business Manager – a Manager who is responsible to the Organization’s Executives for optimizing the use of that ultimate resource: money.

In response, the modern Maintenance Manager needs to become familiar with the basics of financial management and financial measurement. It covers the way senior execs think and talk about risk and the spending on resources in their business – including Maintenance. Like it or not, Maintenance Managers are in competition with their internal colleagues for allocation of resources.  Continually reduced budgets reminds us that we are not winning this competition.  If Maintenance Managers are to secure the necessary resources to do the jobs to protect their assets, (and better still, for them to take a place at the Executive table), then they must become comfortable with Financial jargon.

To sell Maintenance concepts to Executives, we must use the Financial KPI’s that are already familiar to them; but we must adapt them to show the true purpose of Maintenance – namely to add value to the organization.  Every Maintenance Manager needs to understand and know how to use the Financial KPI’s  – ROI, Profit, Cash Flow, DCF, LCC, etc. These are the Financial Benchmarks of our business; they measure the impact of Maintenance on the bottom line.

Salvo Global’s 3-day intensive Masterclass on “Maintenance Financial Management” teaches the principles behind Financial KPI’s, and more importantly provides the practical “How-to-Do-it Guide” for implementing, measuring results and successfully applying today’s best practices for Finance and Profitability in Maintenance. Delegates will be introduced to practical techniques that will enhance their fundamental ability to understand financial management and risk in Maintenance.

Top Learning Objectives

  • Become familiar with the basics of financial management and financial measurement
  • Understand the way senior execs think and talk about risk and the spending on resources in their business – including Maintenance
  • Learn how to successfully compete with their internal colleagues for allocation of resources. 
  • Better negotiate for improved budgets
  • Become comfortable with Financial jargon
  • Use the Financial KPI’s to show the true purpose of Maintenance – namely to add value to the organization.
  • Measure the impact of Maintenance on the bottom line
  • Apply ROI, Cash Flow, Life Cycle Costing to Maintenance and Reliability Projects and Operations
  • Learn about Risk in Maintenance – how to measure it and how to control it

Who Should Attend?

This course is very relevant to technical engineers and professionals who handle and are responsible for their organisations’ maintenance; as well as the overall smooth operations and processes of their organizations’ plants and machineries. These include, but are not limited to:

Managers, Directors, Heads, Superintendents, Supervisors, Engineers in:

  • Maintenance, Preventive Maintenance, Breakdown Maintenance
  • Inspections, Condition Monitoring and Maintenance Performance Management
  • Plant, Operations, Manufacturing, Production and Facilities
  • Planning, Scheduling and Quality Control
  • Equipment, System and Asset Managements
  • Reliability, Failure Management and Failure Prevention
  • Maintenance and Technical Support
  • Support functions such as Finance, IT, HR, Procurement

From any business that needs to apply better business finance practices to Maintenance and asset management – including the following:

  • Mining
  • Manufacturing
  • Power & Utilities
  • Oil & Gas
  • Petrochemicals
  • Chemicals
  • Pharmaceuticals
  • Food & Beverage
  • Automotive
  • Construction
  • Federal, State and Municipal authorities with operational divisions

Outcome of this Workshop

By the end of this intensive 3-day masterclass, delegates will acquire knowledge and skills for effective and accurate financial management that will enable them to negotiate budgets, evaluate cheap versus quality spares and equipment, measure the returns from maintenance, understand the power of regarding maintenance as an investment, and better apply practical techniques to understanding and managing risk. The course is designed for a powerful and direct application of the points learned to maximize benefit to the delegates and their organizations.  Delegates will be provided with real-world applications, principles and methodologies as practiced in the most advanced businesses.

Trainer's Background

Fully involved with the maintenance and reliability business for over 35 years with experience in all aspects of Maintenance, Reliability and Asset Management in upwards of 30 countries

Built on a base of a blend of a post-graduate degree in economics, CFO and CAO positions in several manufacturing companies, entrepreneurial experience in the high-tech sector, and business development for one of the big 5 consultants

Previously:

  • President of Omdec Inc – a developer and implementer of reliability prediction software
  • CFO and CAO for 3 manufacturing companies in high tech and nuclear medicine
  • Business Development Manager of PricewaterhouseCoopers Canada for International Centre of Excellence in Maintenance Management focusing on CMMS/EAM systems

Frequent speaker at conferences, has chaired the International Maintenance conferences on numerous occasions, has been published in several languages and has delivered many successful workshops. He has completed long term engagements with companies in power generation, steel company, resort development company, port operations, municipalities & many others.  His publications include a bi-monthly web newsletter for 15 years.

 

Companies that have benefited for Ben’s Expertise include:

  • Newmont
  • Cerrejon Coal
  • JPower
  • Indonesia Power
  • British Petroleum
  • MOL Pakistan                               
  • International Tankers
  • Nippon Koei
  • Hewlett Packard
  • Dynegy
  • Abbott Labs
  • Saudi Oger
  • Rahji Steel
  • Energy & Water Authority of Bahrain
  • General Electric
  • Fauji Fertilizer
  • Goldfields
  • Kenya Tea Development Authority
  • York Regional Municipality
  • Engro Polymers
  • Cardinal Power
  • International Power
  • Kobe Steel
  • Ghana Cement
  • Wilmar
  • Kenya Port Authority
  • Barrick Gold
  • Murphy Oil
  • KPC Coal

Event Details

4th – 6th March 2020

Makati, Philippines


The course is important to the Engineering Division and should be availed to all staff; the materials provided are very good, simple to understand – the delivery was excellent.  Facilitator was excellent, very humble, very informed and is exactly aware of what he is doing.

Maintenance Manager