CMMS, EAM & Spare Parts Management worked example

PM Optimization Savings at 98% optimized pm tasks expected to stay reliability-compliant: a worked example

Push optimized pm tasks expected to stay reliability-compliant up to 98% and the picture changes. This example computes every intermediate figure at that operating point. a maintenance or asset-management team needs to prioritize PM review work and quantify savings from eliminating low-value tasks while protecting reliability for a PM optimization project

The inputs for this scenario

  • Preventive-maintenance labor hours eliminated per year: 1,450 labor hr / yr (unchanged)
  • Fully loaded maintenance technician labor rate: 82 $ / hr (unchanged)
  • Optimized PM tasks expected to stay reliability-compliant: 98 % (raised for this scenario; the documented default is 85)
  • Fixed savings from avoided parts, downtime, and contractor work: 24,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable PM optimization savings = PM labor hours removed or avoided × loaded maintenance labor rate × optimized PM tasks expected to remain compliant) to the inputs above produces each figure below.
  • At this operating point the engine returns 140,522 $ for total pm optimization savings, the number this scenario is built around.
  • At this operating point the engine returns 96.91 $ / piece for loaded maintenance labor rate.
  • At this operating point the engine returns 116,522 $ for variable pm optimization savings.
  • At this operating point the engine returns 24,000 $ for fixed savings from avoided parts, downtime, or contractor work.

How this compares with the baseline

  • Against the tool's baseline example, where optimized pm tasks expected to stay reliability-compliant sits at 85% and the headline result is 125,065 $, this scenario comes in 12.36% above the baseline at 140,522 $.
  • It computes total annual savings as eliminated PM labor hours valued at the loaded rate and discounted by a compliance factor, plus fixed non-labor savings. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total PM optimization savings: 140,522 $ (headline result)
  • loaded maintenance labor rate: 96.91 $ / piece
  • Variable PM optimization savings: 116,522 $
  • fixed savings from avoided parts, downtime, or contractor work: 24,000 $

Run it with your numbers

  • Every input above is editable in the live PM Optimization Savings calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.