The Maintenance Department's main contribution to company profit is to control equipment maintenance costs. Too often, the Maintenance Manager receives information which is inadequate in content or format to calculate the true cost of either his parts inventory or labor. He can't control what he can't measure.One result is his inability to judge whether it is cheaper to perform the maintenance himself or send it to the equipment dealer. For a fair comparison, the cost of labor and parts inventory must be calculated the same way as the dealer. This means setting up the Maintenance Department as a profit center rather than a catch-all cost center.Operating Maintenance as a profit center offers several other important advantages. Even the simplest profit center accounting system can provide the information for developing the strategies needed for successful, continuing operations. It is much easier to establish and track progress toward measurable goals. Capital investments can be economically, not emotionally, analyzed. Maintenance is confirmed as a serious business entity with the respect and personal gain this suggests.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    The Maintenance Department as a Profit Center?


    Additional title:

    Sae Technical Papers


    Contributors:
    Ramey, Don (author)

    Conference:

    39th Annual Earthmoving Industry Conference ; 1988



    Publication date :

    1988-04-01




    Type of media :

    Conference paper


    Type of material :

    Print


    Language :

    English




    The maintenance department as a profit center?

    Ramey,D. | Automotive engineering | 1988



    Maintenance at profit

    France, C.W. | Engineering Index Backfile | 1940


    Profit Center Management

    Biermann, Peter | IuD Bahn | 1998


    Vom Cost-Center zum Profit-Center

    Graumann, Sabine | IuD Bahn | 1995