Maintenance cost per unit output is a valuable metric. It shows the cost of maintenance in relation to the output produced. This metric helps in understanding the efficiency of your maintenance practices. "Efficiency is doing things right; effectiveness is doing the right things," and this metric captures both.

"Efficiency is doing things right; effectiveness is
doing the right things,"

Formula: Maintenance Cost Per Unit Output = (Total Maintenance Costs) / (Total Units Produced)

Explanation:

• Total Maintenance Costs: This includes all costs associated with maintenance, such as labor, materials, and equipment. For example, if you spend $50,000 on maintenance in a month, that’s your total maintenance cost.

  
  

• Total Units Produced: This is the number of units your facility produces in the same period. If your plant produces 10,000 units in a month, that’s your total output.

If your maintenance cost is $50,000 and your output is 10,000 units, then your maintenance cost per unit is $5.

"Measure what matters to improve what matters”

Importance: This metric is crucial for cost control. A lower cost per unit means better efficiency and profitability. It helps facilities managers identify areas where maintenance costs can be reduced without affecting output. "Measure what matters to improve what matters," and this metric is essential for keeping maintenance costs in check while maintaining productivity.