Basically, the ratio of ‘Maintenance Labour Cost’ to ‘Maintenance Material Cost’ is found varying from job to job, plant to plant and country to country. Further, this ratio will often be seen varying significantly from developed to developing countries.
The nation wide average ratio of ‘Maintenance Labour Cost’ to ‘Maintenance Material Cost’ in a DEVELOPED COUNTRY may be found around 60% : 40% or 65% : 35%, or alike. Whereas the nation wide average ratio of ‘Maintenance Labour Cost’ to ‘Maintenance Material Cost’ in a DEVELOPING COUNTRY will usually be found in the reverse order, i.e. 35% : 65% or 40% : 60% or alike.
Because of different economic conditions, distinctively different cost patterns are shown in developing and developed countries. However, an important conclusion can be drawn that developed countries, on an average, incur more cost on “Maintenance Labour” as compared to that on “Maintenance Materials”. On contrary, developing countries, on an average, incur less cost on “Maintenance Labour” compared to that on “Maintenance Materials”.
The above facts necessitate developed and developing countries to follow different maintenance strategies to be able to perform economically in their respective environments.
It is therefore there can hardly be any world class ratio due to wide variation across industries as well countries that can truly be acceptable as a world class benchmark for all companies round the globe. Even if such a benchmark is suggested for a developed country, the same cannot exactly be adopted for a developing country or vice versa.
Then, what!
Probably, a better way out could be to measure your own ratio and subsequently strategize to improve it the way you wish to improve it to gain higher economic advantage.
MAINTENANCE Management 