Maintenance & Reliability worked example
PM Cost per Part with annual pm spend of 600,000 $ / yr: a worked example
Push annual pm spend up to 600,000 $ / yr and the picture changes. This example computes every intermediate figure at that operating point. Use it when maintenance wants to explain how PM spend rolls into standard cost or quote assumptions.
The inputs for this scenario
- Annual PM spend: 600,000 $ / yr (raised for this scenario; the documented default is 240,000)
- Annual production volume: 1,200,000 parts / yr (unchanged)
- Allocation factor: 1 x (unchanged)
Working through the calculation
- Applying the documented formula (Base PM cost per part = annual PM spend รท annual production volume) to the inputs above produces each figure below.
- At this operating point the engine returns 0.5 $ / part for pm cost per part, the number this scenario is built around.
- At this operating point the engine returns 0.5 $ / part for base pm spend per part.
- At this operating point the engine returns 1 x for allocation factor.
- At this operating point the engine returns 1,200,000 parts / yr for annual production volume.
How this compares with the baseline
- Against the tool's baseline example, where annual pm spend sits at 240,000 $ / yr and the headline result is 0.2 $ / part, this scenario comes in 150% above the baseline at 0.5 $ / part.
- It divides annual preventive maintenance spend by annual production volume, then scales by an allocation factor. 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
- PM Cost per Part: 0.5 $ / part (headline result)
- Base PM Spend per Part: 0.5 $ / part
- Allocation Factor: 1 x
- Annual Production Volume: 1,200,000 parts / yr
Run it with your numbers
- Every input above is editable in the live PM Cost per Part calculator, which recalculates instantly and can be shared with the inputs intact.
Last reviewed 2026-05-12.