{"id":3994,"date":"2021-04-28T05:09:38","date_gmt":"2021-04-28T11:09:38","guid":{"rendered":"https:\/\/limblecmms.com\/?p=3994"},"modified":"2025-06-09T11:08:42","modified_gmt":"2025-06-09T17:08:42","slug":"costs","status":"publish","type":"post","link":"https:\/\/limblecmms.com\/blog\/costs\/","title":{"rendered":"What Are Maintenance Cost? (Definition, How to Calculate, &#038; More)"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]<span style=\"font-weight: 400;\">Keeping critical assets up and running means investing in a <\/span><a href=\"https:\/\/limblecmms.com\/blog\/preventive-maintenance-program\/\"><span style=\"font-weight: 400;\">maintenance program<\/span><\/a><span style=\"font-weight: 400;\"> that\u2019s supported by savvy professionals and effective technology. The <\/span><span style=\"font-weight: 400;\">annual costs<\/span><span style=\"font-weight: 400;\"> associated with <\/span><span style=\"font-weight: 400;\">maintenance management<\/span><span style=\"font-weight: 400;\"> can easily get out of control when organizations don\u2019t take the time to identify the appropriate tools and implement cost effective strategies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Maintenance costs<\/span><span style=\"font-weight: 400;\"> include all the direct and indirect expenses of <\/span><span style=\"font-weight: 400;\">upkeep<\/span><span style=\"font-weight: 400;\">, repairs, replacement, and all <\/span><span style=\"font-weight: 400;\">maintenance activities<\/span><span style=\"font-weight: 400;\">. Some costs \u2013 like the sticker price for new equipment \u2013 are obvious. Others are hidden, often accumulating unnoticed.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some <\/span><span style=\"font-weight: 400;\">maintenance expenses<\/span><span style=\"font-weight: 400;\"> include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Routine <\/span><span style=\"font-weight: 400;\">upkeep<\/span><span style=\"font-weight: 400;\">, <\/span><span style=\"font-weight: 400;\">major repairs<\/span><span style=\"font-weight: 400;\">, and other <\/span><span style=\"font-weight: 400;\">maintenance activities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Repair or replacement for vehicles<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Real estate<\/span><span style=\"font-weight: 400;\"> costs like rent for storage facilities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Safety costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Subscription fees for maintenance software like <\/span><a href=\"https:\/\/limblecmms.com\/cmms\/cmms-software\/\"><span style=\"font-weight: 400;\">CMMS<\/span><span style=\"font-weight: 400;\"> platforms<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To keep costs manageable and employ the right <\/span><span style=\"font-weight: 400;\">types of <\/span><a href=\"https:\/\/limblecmms.com\/blog\/maintenance-strategy\/\"><span style=\"font-weight: 400;\">maintenance<\/span><span style=\"font-weight: 400;\"> strategies<\/span><\/a><span style=\"font-weight: 400;\">, you first need to understand these expenses and where they originate.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Understanding <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Your <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\"> include all the expenses that result from your efforts to keep physical assets in optimal working condition. It doesn\u2019t matter if that asset is a car, a rental property, a generator, or a circular saw \u2013 if it needs <\/span><span style=\"font-weight: 400;\">regular maintenance<\/span><span style=\"font-weight: 400;\"> for managing <\/span><span style=\"font-weight: 400;\">depreciation<\/span><span style=\"font-weight: 400;\"> or could potentially break down, it will incur <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><a href=\"https:\/\/limblecmms.com\/industry\/manufacturing-maintenance-software\/\"><span style=\"font-weight: 400;\">Manufacturing<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/limblecmms.com\/industry\/construction-maintenance-software\/\"><span style=\"font-weight: 400;\">construction<\/span><\/a><span style=\"font-weight: 400;\">, and other <a href=\"https:\/\/limblecmms.com\/industry\/\">asset-heavy industries<\/a> are compelled to keep their maintenance budgets in check. Tracking <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\"> is a key method for evaluating the effectiveness of their <\/span><a href=\"https:\/\/limblecmms.com\/blog\/how-to-organize-a-maintenance-department\/\"><span style=\"font-weight: 400;\">maintenance departments<\/span><\/a><span style=\"font-weight: 400;\">. The cost and ROI of <\/span><span style=\"font-weight: 400;\">maintenance activities<\/span><span style=\"font-weight: 400;\"> are<\/span> <a href=\"https:\/\/limblecmms.com\/blog\/maintenance-kpi\/\"><span style=\"font-weight: 400;\">metrics<\/span> <\/a><span style=\"font-weight: 400;\">for the department<\/span><span style=\"font-weight: 400;\">, useful for driving ongoing improvements.\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-3240 img-fluid\" src=\"https:\/\/limblecmms.com\/wp-content\/uploads\/Breakdown-of-total-maintenance-costs.jpg\" alt=\"Total Cost of Maintenance\" width=\"500\" height=\"467\" srcset=\"https:\/\/limblecmms.com\/wp-content\/uploads\/Breakdown-of-total-maintenance-costs.jpg 1865w, https:\/\/limblecmms.com\/wp-content\/uploads\/Breakdown-of-total-maintenance-costs-300x280.jpg 300w, https:\/\/limblecmms.com\/wp-content\/uploads\/Breakdown-of-total-maintenance-costs-1024x956.jpg 1024w, https:\/\/limblecmms.com\/wp-content\/uploads\/Breakdown-of-total-maintenance-costs-768x717.jpg 768w, https:\/\/limblecmms.com\/wp-content\/uploads\/Breakdown-of-total-maintenance-costs-1536x1434.jpg 1536w, https:\/\/limblecmms.com\/wp-content\/uploads\/Breakdown-of-total-maintenance-costs-255x238.jpg 255w, https:\/\/limblecmms.com\/wp-content\/uploads\/Breakdown-of-total-maintenance-costs-313x292.jpg 313w, https:\/\/limblecmms.com\/wp-content\/uploads\/Breakdown-of-total-maintenance-costs-64x60.jpg 64w, https:\/\/limblecmms.com\/wp-content\/uploads\/Breakdown-of-total-maintenance-costs-434x405.jpg 434w, https:\/\/limblecmms.com\/wp-content\/uploads\/Breakdown-of-total-maintenance-costs-100x93.jpg 100w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/p>\n<p style=\"text-align: center;\"><i><span style=\"font-weight: 400;\">The direct and indirect <\/span><\/i><i><span style=\"font-weight: 400;\">costs of maintenance<\/span><\/i><i><span style=\"font-weight: 400;\">. <\/span><\/i><\/p>\n<h2><span style=\"font-weight: 400;\">The hidden <\/span><span style=\"font-weight: 400;\">costs of maintenance<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The wrong maintenance strategy will hurt your organization in a number of ways. It will cause lower product quality, higher energy costs, reduced asset <\/span><span style=\"font-weight: 400;\">lifespan<\/span><span style=\"font-weight: 400;\">, lost production hours, wasted resources, environmental issues and, even safety issues.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All this adds up to higher overall <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\">, but these issues aren\u2019t always easy to detect.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s break down each of those items so you can see how the wrong approach to maintenance right affects them:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lower product quality<\/b><span style=\"font-weight: 400;\">: Let\u2019s pretend you have a press with a loose belt.\u00a0 That loose belt will allow for small imperfections that will affect your products. Over time, you\u2019ll start to disappoint customers who\u2019ve come to expect a certain standard of excellence from your products.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Higher energy costs<\/b><span style=\"font-weight: 400;\">:<\/span> <span style=\"font-weight: 400;\">Imagine an <\/span><span style=\"font-weight: 400;\">HVAC system<\/span><span style=\"font-weight: 400;\"> that rarely gets its <\/span><span style=\"font-weight: 400;\">air filters<\/span><span style=\"font-weight: 400;\"> changed. Air does not flow through it as easily as it would through a clean filter.\u00a0 Because of this, the HVAC has to use more energy to pull the air in. According to the Department of Energy replacing a dirty filter with a clean one can<\/span><a href=\"https:\/\/directfilterexpress.com\/do-air-filters-pay-for-themselves-in-utility-costs\/#:~:text=According%20to%20the%20Department%20of,savings%20of%207.5%25%20every%20month.\"> <span style=\"font-weight: 400;\">reduce energy consumption by as much as 15%<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduced asset <\/b><b>lifespan<\/b><span style=\"font-weight: 400;\">:<\/span> <span style=\"font-weight: 400;\">Imagine two cars. One car undergoes regular <\/span><span style=\"font-weight: 400;\">tire rotations<\/span><span style=\"font-weight: 400;\"> and <\/span><span style=\"font-weight: 400;\">oil changes<\/span><span style=\"font-weight: 400;\"> in addition to routine inspections. The other only goes to the shop when an obvious problem like a flat tire presents itself. You should expect the first car to last longer and perform better throughout that period. At Limble, our customers see an<\/span><a href=\"https:\/\/limblecmms.com\/customer-story\/red-hawk-casino\/\"> <span style=\"font-weight: 400;\">average increase in asset <\/span><span style=\"font-weight: 400;\">lifespan<\/span><span style=\"font-weight: 400;\"> of 16%<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lost production hours<\/b><span style=\"font-weight: 400;\">: Poor maintenance causes more <\/span><span style=\"font-weight: 400;\">downtime<\/span><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\">Downtime<\/span><span style=\"font-weight: 400;\"> costs can vary from thousands to hundreds of thousands of dollars per hour. In manufacturing, for example, <\/span><span style=\"font-weight: 400;\">downtime<\/span><span style=\"font-weight: 400;\"> is incredibly costly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Wasted resources<\/b><span style=\"font-weight: 400;\">: Poorly maintained equipment is hard to operate, produces defective products, and wastes a lot of time and management resources.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Environmental issues<\/b><span style=\"font-weight: 400;\">:<\/span> <span style=\"font-weight: 400;\">Poorly maintained equipment wastes energy, pollutes the environment, and could prove unhealthy for your employees.\u00a0 <\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Safety risks<\/b>:\u00a0 Poorly maintained equipment breaks down more often, sometimes unexpectedly. When equipment breaks down, it can increase your team\u2019s risk of injury.<\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row content_placement=&#8221;middle&#8221; css_animation=&#8221;fadeInDown&#8221; kd_background_image_position=&#8221;vc_row-bg-position-top&#8221; css=&#8221;.vc_custom_1699310630716{margin-top: 30px !important;margin-bottom: 50px !important;padding-top: 50px !important;padding-bottom: 50px !important;background-color: #dde4e8 !important;border-radius: 20px !important;}&#8221;][vc_column width=&#8221;2\/3&#8243; css=&#8221;.vc_custom_1699310302582{padding-left: 25px !important;}&#8221;]<header class=\"kd-section-title col-lg-12 text-left  subtitle-below-title    vc_custom_1742844344590\" ><h3 class=\"separator_off\" >Free CMMS Buyer's Guide<\/h3><p class=\"subtitle\" >Discover everything you need to know about CMMS in this comprehensive guide. Begin your maintenance journey now!<\/p><\/header><a  href=\"https:\/\/limblecmms.com\/resources\/cmms-buyers-guide\/\"  target=\"_self\"  title=\"Download Now\"  class=\"tt_button tt_primary_button btn_primary_color  button-center button-action-link icon_right\" ><span class=\"prim_text\">Get the Guide<\/span><span class=\"fas fa-angle-right iconita\" ><\/span><\/a>[\/vc_column][vc_column width=&#8221;1\/3&#8243;][vc_single_image source=&#8221;external_link&#8221; css=&#8221;.vc_custom_1742844361862{padding-bottom: 10px !important;}&#8221; custom_src=&#8221;https:\/\/limblecmms.com\/wp-content\/uploads\/CMMS-Buyers-Guide-Image.webp&#8221;][\/vc_column][\/vc_row][vc_row kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]<\/p>\n<h2><span style=\"font-weight: 400;\">The right way to think about <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Many business owners have the wrong mindset when it comes to maintenance. They only see the department as a<\/span><a href=\"https:\/\/www.investopedia.com\/terms\/c\/cost-center.asp\"> <span style=\"font-weight: 400;\">cost center<\/span><\/a><span style=\"font-weight: 400;\">, a business unit that doesn\u2019t contribute strategic value. This leads them to pressure maintenance directors and managers to reduce total <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\"> at all costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A more effective mindset views maintenance as an investment. By performing maintenance work you are not just spending money, you are investing in the long-term value of your equipment. You are spending money to increase the performance and <\/span><span style=\"font-weight: 400;\">useful life<\/span><span style=\"font-weight: 400;\"> of your assets, to reduce production delays, and more. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Maintenance professionals will always need to work with a budget in mind. To have any chance at successfully managing <\/span><span style=\"font-weight: 400;\">maintenance expenditures<\/span><span style=\"font-weight: 400;\">, they need to understand which factors contribute to their maintenance bills and think strategically about using this budget effectively.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How do you calculate <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\">?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The real cost of an asset goes far beyond its <\/span><span style=\"font-weight: 400;\">purchase price<\/span><span style=\"font-weight: 400;\">. When a department is buying a new piece of equipment, it should also take into account <\/span><span style=\"font-weight: 400;\">ongoing <\/span><a href=\"https:\/\/limblecmms.com\/blog\/repair-and-maintenance\/\"><span style=\"font-weight: 400;\">maintenance<\/span><span style=\"font-weight: 400;\"> and <\/span><span style=\"font-weight: 400;\">repair<\/span><\/a><span style=\"font-weight: 400;\"> costs<\/span><span style=\"font-weight: 400;\">. The <\/span><span style=\"font-weight: 400;\">average cost<\/span><span style=\"font-weight: 400;\"> of <\/span><span style=\"font-weight: 400;\">ongoing maintenance<\/span><span style=\"font-weight: 400;\"> can significantly differ from one asset to another. How much <\/span><span style=\"font-weight: 400;\">regular maintenance<\/span><span style=\"font-weight: 400;\"> it needs, how it handles wear and tear, and the cost of spare parts are just some of the factors that will impact <\/span><span style=\"font-weight: 400;\">annual maintenance costs<\/span><span style=\"font-weight: 400;\"> for a given asset.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Those kinds of budgeting decisions are often left to maintenance directors and managers. At the end of the year, business owners will often focus on reviewing <\/span><span style=\"font-weight: 400;\">total costs<\/span><span style=\"font-weight: 400;\">, which are often represented as the total<\/span><a href=\"https:\/\/limblecmms.com\/blog\/mro-maintenance-repair-and-operations\/\"> <span style=\"font-weight: 400;\">MRO (maintenance, repair, operations)<\/span><\/a><span style=\"font-weight: 400;\"> costs on balance sheets.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The MRO cost can be broken down into labor costs, spare parts and materials, maintenance vendors, energy costs, and overhead expenses. Effectively tracking costs for each of those categories is key for reducing future <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3997\" src=\"https:\/\/limblecmms.com\/wp-content\/uploads\/How-To-Track-And-Manage-Your-Maintenance-Costs.jpg\" alt=\"Total maintenance costs\" width=\"1200\" height=\"326\" srcset=\"https:\/\/limblecmms.com\/wp-content\/uploads\/How-To-Track-And-Manage-Your-Maintenance-Costs.jpg 1200w, https:\/\/limblecmms.com\/wp-content\/uploads\/How-To-Track-And-Manage-Your-Maintenance-Costs-300x82.jpg 300w, https:\/\/limblecmms.com\/wp-content\/uploads\/How-To-Track-And-Manage-Your-Maintenance-Costs-1024x278.jpg 1024w, https:\/\/limblecmms.com\/wp-content\/uploads\/How-To-Track-And-Manage-Your-Maintenance-Costs-768x209.jpg 768w, https:\/\/limblecmms.com\/wp-content\/uploads\/How-To-Track-And-Manage-Your-Maintenance-Costs-451x123.jpg 451w, https:\/\/limblecmms.com\/wp-content\/uploads\/How-To-Track-And-Manage-Your-Maintenance-Costs-554x151.jpg 554w, https:\/\/limblecmms.com\/wp-content\/uploads\/How-To-Track-And-Manage-Your-Maintenance-Costs-93x25.jpg 93w, https:\/\/limblecmms.com\/wp-content\/uploads\/How-To-Track-And-Manage-Your-Maintenance-Costs-540x147.jpg 540w, https:\/\/limblecmms.com\/wp-content\/uploads\/How-To-Track-And-Manage-Your-Maintenance-Costs-100x27.jpg 100w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><i><span style=\"font-weight: 400;\">Some of the factors that go into calculating <\/span><\/i><i><span style=\"font-weight: 400;\">maintenance expenses<\/span><\/i><i><span style=\"font-weight: 400;\">.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">One important thing that often gets left out of this conversation <\/span><b>is the indirect cost of lost productivity<\/b><span style=\"font-weight: 400;\">. During most <\/span><span style=\"font-weight: 400;\">maintenance activities<\/span><span style=\"font-weight: 400;\">, the asset has to be shut down. If<\/span><a href=\"https:\/\/limblecmms.com\/blog\/planned-downtime\/\"> <span style=\"font-weight: 400;\">scheduled maintenance<\/span><\/a><span style=\"font-weight: 400;\"> or an unexpected repair happens during regular business hours, it will result in lost production hours \u2013 which means lost profit. Will the company lose hundreds or millions of dollars depends on how critical is the affected asset for business operations and the total length of equipment <\/span><span style=\"font-weight: 400;\">downtime<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>Tracking <\/b><b>maintenance expenses<\/b><b> with Limble <\/b><b>CMMS<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One of the easiest ways to measure total <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\"> is to use a<\/span><a href=\"https:\/\/limblecmms.com\/cmms\/cmms-software\/\"> <span style=\"font-weight: 400;\">CMMS<\/span><span style=\"font-weight: 400;\"> software<\/span><\/a><span style=\"font-weight: 400;\">. The alternative is to spend hours digging through excel sheets, invoices, and old <\/span><span style=\"font-weight: 400;\">work orders<\/span><span style=\"font-weight: 400;\"> whenever you have to create a report.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Tracking overall <\/span><span style=\"font-weight: 400;\">maintenance cost<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To effectively manage <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\">, you need accurate data and the ability to break down costs into categories like parts and assets. This allows you to find and eliminate problem areas.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In Limble, total <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\"> are broken down into three main categories:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Money spent on parts<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Money spent on labor\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Money spent on outside vendors<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">This level of analysis is great for keeping an eye on overall <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\">. More granular reporting is necessary for pinpointing and executing on opportunities for improvement.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Tracking down expenses for a single asset<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Vendor invoices are tied to assets. Spare parts are used on assets. Labor costs are incurred by performing maintenance work on assets. While a<\/span><a href=\"https:\/\/limblecmms.com\/cmms\/\"> <span style=\"font-weight: 400;\">CMMS<\/span><\/a><span style=\"font-weight: 400;\"> might allow you to break down costs based on types of invoices,\u00a0 types of spare parts, and type of performed work, the most useful reports will be those that look at specific assets.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Calculating an asset\u2019s TCO without a <\/span><span style=\"font-weight: 400;\">CMMS<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Imagine the world without a <\/span><span style=\"font-weight: 400;\">CMMS<\/span><span style=\"font-weight: 400;\">. To determine the <\/span><span style=\"font-weight: 400;\">total cost of ownership<\/span><span style=\"font-weight: 400;\"> for an asset you would have to dig through digital files and paperwork to learn how much maintenance work has been performed on the asset and which spare parts have been used.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you find that information, you have to hope it is accurate and that no <\/span><span style=\"font-weight: 400;\">work orders<\/span><span style=\"font-weight: 400;\"> have been misplaced. After that, you\u2019ll have to search through spreadsheets to find the cost for each spare part you\u2019ve used.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Next, you need to look at who performed maintenance work, for how long, and if some of that work qualified as overtime.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">See what you\u2019re missing with Limble<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Or you can use a digital solution like Limble and find all of that information with just a couple of clicks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The easiest way to manage a maintenance budget is to gain in-depth insight into your data. When you <\/span><span style=\"font-weight: 400;\">know how<\/span><span style=\"font-weight: 400;\"> much your assets cost you and why they break down it becomes much easier to find opportunities to cut costs and eliminate waste.\u00a0 <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">If you want to give Limble <\/span><span style=\"font-weight: 400;\">CMMS<\/span><span style=\"font-weight: 400;\">, you have three options:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"\/get-started\/\"><span style=\"font-weight: 400;\">Start a free 30-day trial<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/limblecmms.com\/demo-request\/\"><span style=\"font-weight: 400;\">Request a demo<\/span><\/a><\/li>\n<\/ul>\n<p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/vhMS_-1Rcnc\" width=\"675\" height=\"356\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2><b>More ways to decrease overall <\/b><b>maintenance costs<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s always hard to find new ways to shrink your maintenance budget. Below is an list with some additional ideas for reducing <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Use an<\/b> <b>inventory management solution<\/b><span style=\"font-weight: 400;\"> to accurately forecast inventory needs and decrease spare parts inventory costs\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improve the onboarding process for machine operators,<\/b><span style=\"font-weight: 400;\"> so they have less chance of damaging equipment through improper use and they feel committed to a culture of continuous improvement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Negotiate <\/b><span style=\"font-weight: 400;\">with maintenance vendors and spare parts providers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Implement <\/b><a href=\"https:\/\/limblecmms.com\/maintenance-definitions\/lean-maintenance\/\"><b>lean maintenance practices<\/b><\/a><span style=\"font-weight: 400;\"> to reduce all sources of waste<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/limblecmms.com\/blog\/autonomous-maintenance\/\"><b>Implement an autonomous <\/b><b>maintenance<\/b><\/a> <span style=\"font-weight: 400;\">program<\/span><span style=\"font-weight: 400;\"> to maximize efficiency and minimize excess costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Invest in <\/b><a href=\"https:\/\/limblecmms.com\/blog\/5-condition-monitoring-techniques\/\"><b>condition monitoring<\/b><\/a><b> technology<\/b><span style=\"font-weight: 400;\"> to monitor asset health and optimize your maintenance schedule\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Focus on proactive maintenance strategies<\/b><span style=\"font-weight: 400;\"> like<\/span><a href=\"https:\/\/limblecmms.com\/strategies\/preventive-maintenance\/\"> <span style=\"font-weight: 400;\">preventive maintenance<\/span><\/a><span style=\"font-weight: 400;\"> and<\/span><a href=\"https:\/\/limblecmms.com\/strategies\/predictive-maintenance\/\"> <span style=\"font-weight: 400;\">predictive maintenance<\/span><\/a><\/li>\n<\/ul>\n<h2><b>Maintenance costs<\/b><b> vs. <\/b><b>capital expenditures<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">For accounting purposes, it is important to distinguish between general <\/span><span style=\"font-weight: 400;\">maintenance costs<\/span><span style=\"font-weight: 400;\"> and <\/span><span style=\"font-weight: 400;\">capital expenditures<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In short, <\/span><span style=\"font-weight: 400;\">regular maintenance costs<\/span><span style=\"font-weight: 400;\"> relate to actions performed on a regular basis to keep assets in their original condition. This includes<\/span><a href=\"https:\/\/limblecmms.com\/maintenance-definitions\/routine-maintenance\/\"> <span style=\"font-weight: 400;\">routine maintenance<\/span><span style=\"font-weight: 400;\"> work<\/span><\/a><span style=\"font-weight: 400;\">, spare parts replacements, and simple repairs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Capital expenditures<\/span><span style=\"font-weight: 400;\"> are <\/span><span style=\"font-weight: 400;\">maintenance expenses<\/span><span style=\"font-weight: 400;\"> like major overhauls and <\/span><span style=\"font-weight: 400;\">upgrades<\/span><span style=\"font-weight: 400;\"> that require significant resource investments. <\/span><span style=\"font-weight: 400;\">Capital expenditures<\/span><span style=\"font-weight: 400;\"> increase asset value.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The benefits of standard maintenance work last for less than 12 months and go on a<\/span><a href=\"https:\/\/corporatefinanceinstitute.com\/resources\/knowledge\/accounting\/profit-and-loss-statement-pl\/\"> <span style=\"font-weight: 400;\">profit and loss statement<\/span><\/a><span style=\"font-weight: 400;\"> for the current year. In contrast, the benefits of <\/span><span style=\"font-weight: 400;\">capital expenditures<\/span><span style=\"font-weight: 400;\"> last for more than 12 months. They may depreciate over time.<\/span><\/p>\n<h2><b>Sometimes you have to spend money to save money<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Investing money in maintenance is often the smartest long-term solution you can make.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, getting approval for such investments is easier said than done. The strongest case you can make to top management is to show the considerable return on investment of implementing a <\/span><span style=\"font-weight: 400;\">CMMS<\/span><span style=\"font-weight: 400;\"> tool. <\/span><b>Here\u2019s a simple guide on<\/b><a href=\"https:\/\/limblecmms.com\/blog\/how-to-calculate-cmms-roi\/\"> <b>how to calculate the ROI of your <\/b><b>CMMS<\/b><b> platform<\/b><\/a><span style=\"font-weight: 400;\"> to help you get started.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column][vc_column_text]<br \/>\n[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]Keeping critical assets up and running means investing [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":29403,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[739],"tags":[],"class_list":["post-3994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-maintenance-operations"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Are Maintenance Cost? 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