Google Links

Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Analyse cost components of maintenance
   • Determine cost of failure of plant/equipment.
   • Determine cost of a planned maintenance shutdown activity, including costs of re-start.
   • Determine cost of maintenance for a planned activity.
   • Determine cost of maintenance for an unplanned activity.
   • Determine costs of condition monitoring.
   • Identify cost implications of different maintenance strategies.
2. Estimate life cycle costs of plant/ equipment
   • Determine initial capital cost.
   • Estimate servicing, maintenance and repair costs.
   • Estimate production (e.g. loss of) and other costs associated with service, maintenance and repair.
   • Determine depreciation and other applicable allowances.
   • Estimate ancillary costs, such as training, commissioning and productivity loss.
   • Estimate technological life and costs of changing to current technology/costs of retaining obsolete equipment.
   • Estimate annualised costs in present value terms.
   • Identify life cycle cost implications for strategy.
3. Liaise with proactive maintenance strategy developer
   • Identify cost implications for different strategies.
   • Negotiate a strategy which minimises total costs.
   • Monitor the implementation of the strategy to ensure the costs are minimised.
   • Make required adjustments to strategy.

Range Statement

This field allows for different work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included.
Competitive systems and practices include one or more of:	lean operations agile operations preventative and predictive maintenance approaches statistical process control systems, including six sigma and three sigma Just in Time (JIT), kanban and other pull-related operations control systems supply, value, and demand chain monitoring and analysis 5S continuous improvement (kaizen) breakthrough improvement (kaizen blitz) cause/effect diagrams overall equipment effectiveness (OEE) takt time process mapping problem solving run charts standard procedures current reality tree.
Maintenance strategies and techniques include one or more of:	total productive maintenance (TPM) reliability centred maintenance (RCM) root cause analysis (RCA) mean time between failures (MBTF) failure mode and effects analysis (FMEA) condition monitoring related proactive maintenance strategies.
Cost components of maintenance include all of:	direct costs, such as labour and materials indirect costs, such as management overhead comparison with cost of equipment replacement re-engineering breakdown repair cost of lost production under different maintenance strategies cost of inefficient equipment/plant operation due to poor maintenance.

---

Performance Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy the requirements of the elements and performance criteria and include the ability to analyse cost implications of two (2) or more maintenance strategies and to:

analyse cost components for each strategy

estimate life cycle costs for each strategy

compare the cost implications and negotiate a strategy which minimises costs.

---

Knowledge Evidence

Must provide evidence that demonstrates sufficient knowledge to interact with relevant personnel and be able to analyse cost implications for maintenance strategies, including knowledge of:

cost components of maintenance strategies

direct and indirect costs

maintenance strategies appropriate to the organisation, their strengths and weaknesses

techniques for estimating production, sales and other costs related to maintenance strategies

depreciation, capital vs. expense

present day value of future costs – determination and use of

life cycle costing

negotiation.

---