Maximo Asset Costing
Updated: Jul 27, 2020
In your Maximo, your assets are at the core of everything. In this post i like to highlight a number of specific functions around Asset costing that are underutilized (in my opinion). This is my first post here, and i expect to add new content here regularly.
Purchase Information fields
There are a number of fields in your Purchasing information that you will find very useful for cost analysis going forward. For example: Your PO number field, and your Purchase price can be automatically populated when a new asset is purchased via Maximo. But if you add manually new Assets (or via bulk upload) its advisable to enter your Purchase price for future analysis (see below). You would also enter your Replacement cost (or can be defaulted initially by your purchase price). You could set up a routine to add e.g. 4% inflation to that value annually via a crontask (more on this in another topic coming soon) to keep your numbers realistic
Total Cost and YTD cost
These fields will be automatically updated if you use the 'Maintenance Cost Rollup Update' report on a regular basis. You should schedule this report to run daily at night, although i often see this not being done.
the Budget costing field in your Asset screen has nothing to do with your corporate budgets. Instead, this is a Maintenance budget, where you as an engineer can identify the maximum amount of money you would like to allocate to maintain this asset for a year. You can use this value to match against your YTD costing and flag those assets where you are exceeding your maintenance expenses.
Maximo has built in Depreciation capabilities to depreciate on a straight line or double down methodology. Once configured, Maximo will automatically re-calculate at the cycle of depreciation, and your 'Current value' show you your valuation.
An 'Inventory Cost' is typically a repair job done by the maintenance crew while the asset was not in an operating location. (e.g. workshop). You can charge any costs incurred during repair onto the Asset. The next user of this asset (who you will issue the asset to) will then be charged with the repair costs. So most of the time, your Inventory cost should be zero, unless you recently completed a repair on the asset, and the asset is still in the storeroom.
Repair or Replace
You can now see, using the above fields properly, it will be much easier to generate reports or dashboards or even Asset Health data, making decisions around Repair or Replace much easier. Also Maximo can be configured to automatically flag those assets where repair is exceeding your maintenance budgets or percentage of the purchase price.
Talk to us via our contact form if you like a more thorough discussion on this topic.