Cost Reduction
With growing competetion in market, only those industries will sustain which are manufacturing product at low cost. Therefore, I have tried to give a cost reduction technique. It is applicable to Plant Maintenance Module. I hope this will help SAP PM Consultants as well as core team members.
In the IW38 maintenance order report there is a Sub-total button. It appears once we click on Sigma button. Please check the following steps to see the technique:
Steps
1. Run transaction code IW38 and select all maintenance orders in a given time period.
2. Check whether you have order type and Actual cost coloum in the layout or not. If not then change layout accordingly.
3. Then select the total Actual cost coloumn and click on Sigma button. You will get the total maintenance cost.
4. Sub-total button will appear now.
5. Select the Order type coloum and click on the sub-total button.
6. Now you will get the break-up of maintenance cost on the basis of order type.
Information
Management should know whether the allocated budget is utilized in planned maintenance or unplanned maintenance. If maintenace cost is higher in breakdown maintenance as compare to preventive maintenance, this is an alarming situation. It indicates that the allocated budget is not utilized in preventive maintenace . Therefore, it is increasing cost in breakdown maintnance. By using such reports, maintenance department can take important decisions to control, monitor and reduce maintenance cost and plan there future maitenance activities accordingly.
Benifit:
1. Standard techniques, no development or programming required.
2. Gives a crystal clear information of budget utilization.
3. Gives business information which is helpful for future maintenance planning.
In my previous blog, I have given cost reduction technique by using ABC indicators. Please click on the link and have a look.
Use ABC indicator in SAP EAM and Control Cost
Regards,
Vaibhav Mishra
