Maintenance & Reliability worked example

PM Cost per Part with annual pm spend of 120,000 $ / yr: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop annual pm spend to 120,000 $ / yr, then walk the calculation through step by step. Allocate annual preventive maintenance spend across annual production volume to see PM cost per produced part.

The inputs for this scenario

  • Annual PM spend: 120,000 $ / yr (the input this scenario stresses; the baseline uses 240,000)
  • Annual production volume: 1,200,000 parts / yr (held at the documented default)
  • Allocation factor: 1 x (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Base PM cost per part = annual PM spend รท annual production volume.
  • PM Cost per Part works out to 0.1 $ / part at these inputs, and this is the headline figure for the scenario.
  • Base PM Spend per Part works out to 0.1 $ / part at these inputs.
  • Allocation Factor works out to 1 x at these inputs.
  • Annual Production Volume works out to 1,200,000 parts / yr at these inputs.

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 50% below the baseline at 0.1 $ / part.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to annual pm spend, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It spreads PM cost evenly across all parts, so it does not distinguish high-touch assets from low-touch ones unless you compute it per line or per machine.

Results at a glance

  • PM Cost per Part: 0.1 $ / part (headline result)
  • Base PM Spend per Part: 0.1 $ / part
  • Allocation Factor: 1 x
  • Annual Production Volume: 1,200,000 parts / yr

Run it with your numbers

  • To rerun this with your own numbers, open the live PM Cost per Part calculator, set annual pm spend to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.