Maintenance department has to excercise effective cost control, to carry
out the maintenance functions in a pre-specified budget, which is possible only
through the following measures:
supervisors must be apprised of the cost information of the various materials
so that the objective of the management can be met without extra expenditure on
review of the budget provisions and expenditures actually incurred in respect
of each center/shop will provide guidlines to the departmental head to exercise
better cost control.
expenditure to be incurred can be uniformly spread over the year for better
budgetary control. however, the same may not be true in all cases particularly
where overhauling of equipment has to be carried out due to unforseen
breakdowns. some budgetary provisions must be set aside, to meet out unforeseen
controllable elements of cost such as manpower cost and material cost can be
discussed with the concerned personnel, which may help in reducing the total
cost of maintenance. Emphasis should be given to reduce the overhead
expenditures, as other expenditures cannot be compromised.
observed through studies that the manpower cost is normally fixed, but the same
way increase due to overtime cost. however, the material cost, which is the
prime factor in maintenance cost, can be reduced by timely inspections
designed, to detect failures. If the inspection is carried out as per schedule,
the total failure of parts may be avoided, which otherwise would increase the
maintenance cost. the proper handling of the equipment by the operators also
reduces the frequency of repair and material requirements. Operators, who check
their equipment regularly and use it within the operating limits, can help
avoid many unwanted repairs. In the same way a good record of equipment
failures/ maintenance would indicate the nature of failures, which can then be
corrected even permanently.
Quality control refers to the technical process that gathers, examines,
analyze & report the progress of the project & conformance with the
steps involved in quality control process are
Determine what parameter is to be controlled.
Establish its criticality and whether you need
to control before, during or after results are produced.
Establish a specification for the parameter to
be controlled which provides limits of acceptability and units of measure.
Produce plans for control which specify the
means by which the characteristics will be achieved and variation detected and
Organize resources to implement the plans for
Install a sensor at an appropriate point in the
process to sense variance from specification.
Collect and transmit data to a place for
Verify the results and diagnose the cause of
Propose remedies and decide on the action needed
to restore the status quo.
Take the agreed action and check that the
variance has been corrected.
Advantages and disadvantages
Advantages include better products and services
ultimately establishing a good reputation for a company and higher revenue from
having more satisfied customers.
Disadvantages include needing more man
power/operations to maintain quality control and adding more time to the
An operational planning is a
subset of strategic work plan. It describes short-term ways of achieving
milestones and explains how, or what portion of, a strategic plan will be put
into operation during a given operational period, in the case of commercial
application, a fiscal year or another given budgetary term. An operational plan
is the basis for, and justification of an annual operating budget request.
Therefore, a five-year strategic plan would need five operational plans funded
by five operating budgets.
plans should establish the activities and budgets for each part of the
organization for the next 1 – 3 years. They link the strategic plan with the
activities the organization will deliver and the resources required to deliver
operational plan draws directly from agency and program strategic plans to
describe agency and program missions and goals, program objectives, and program
activities. Like a strategic plan, an operational plan addresses four
Where are we now?
Where do we want to be?
How do we get there?
How do we measure our progress?
The OP is
both the first and the last step in preparing an operating budget request. As
the first step, the OP provides a plan for resource allocation; as the last
step, the OP may be modified to reflect policy decisions or financial changes
made during the budget development process.
plans should be prepared by the people who will be involved in implementation.
There is often a need for significant cross-departmental dialogue as plans
created by one part of the organization inevitably have implications for other
plans should contain:
activities to be delivered
staffing and resource requirements
a process for monitoring progress.