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Mean Maintenance Cost (MMC)

Measures the average cost of maintenance activities per occurrence.

Mean Maintenance Cost (MMC)

MMC = (Total Maintenance Costs) / (Number of Maintenance Activities)


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Interpreting Mean Maintenance Cost (MMC)

A lower MMC indicates more cost-efficient maintenance practices. It suggests that the organization is effectively managing its maintenance expenditures, optimizing resource allocation, and minimizing unnecessary spending.

MMC helps in assessing whether maintenance resources, including labor, spare parts, and equipment, are being utilized efficiently. A high MMC may signal that resources are not allocated optimally.

factors affecting

Factors Affecting Mean Maintenance Cost (MMC)

Several factors influence MMC, including:

  • Asset Condition: The condition and age of assets affects maintenance costs. Well-maintained assets tend to have lower MMC.
  • Maintenance Strategy: The choice of maintenance strategy (e.g., reactive, preventive, predictive) significantly impacts MMC. Proactive maintenance strategies can lower costs by addressing issues before they escalate.
  • Spare Parts Management: Efficient spare parts inventory management can reduce MMC by ensuring that the right parts are available when needed.
  • Frequency of Breakdowns: Frequent equipment breakdowns can result in higher MMC due to repair costs and associated downtime.
  • Supplier and Vendor Relationships: Strong relationships with suppliers and vendors can lead to cost-effective procurement of spare parts and maintenance services.

Mean Maintenance Cost (MMC) Goals

Mean Maintenance Cost goals can vary depending on industry, asset criticality, and operational requirements. Organizations often aim to achieve lower MMC values to maximize cost efficiency and profitability. However, specific goals should align with the organization's objectives and industry standards.

Set realistic MMC goals based on historical data and industry standards to guide cost control efforts.


How to make the most of the Mean Maintenance Cost (MMC) Calculator:

  • Clearly define the scope of what is included in MMC calculations, such as specific assets / group of assets or maintenance activities.
  • Identify the source of data, whether it's from financial records, maintenance logs, or other sources, and ensure its validity. A CMMS acts as the central repository for analysis and reporting.