AAOM Handbook

maintenance EPS the Labour Resource Types are likely to be the specialised skills such as mechanic, auto electrician, boilermaker etc. In process plant operations the listed categories may suffice for the EPS. The final selection of Resource Types for an EPS must be consistent with the purpose of providing accurate, but not precise, forecasts for costs and Work Centre capacity demand. There will be variability in the cost of each occurrence for an Activity, in addition to the probable variability in their frequency and timing. When Activities have both significant cost per occurrence, and a low frequency of occurrence in a forecasting/measurement period, the impact of this variability on the forecast for that period may be substantial. When Activities have a high frequency of occurrence in a forecasting/measurement period the total cost will converge on the product of the frequency and the average cost. Hence low frequency Activities will require an estimate of the distribution of likely cost outcomes while high frequency Activities can use an estimate of the average cost. As actual data becomes available, through feedback to the EPS from the costing information system, the estimates of Resource Types, pricing and costs should be refined.

Purpose

To apply validated cost estimating data to the OMS activities.

Quantity

• One set of Resource Types for each EPS. • One cost estimate for each of the Resource Types for each of the Activities of the OMS/EPS.

Quality

In identifying the Resource Types for an EPS consider;

• The data available from the costing system(s) of record. • The following generic resource types; o Equipment, o Labour, o Materials, o Spares, o Contract Services & o Utilities.

• The minimum number of Resource Types that can support a reliable forecast for Activity costs and Work Centre demand for each EPS. Note that different Resource Types may be appropriate for different EPS'.

In estimating the price/cost of Activity Resource Types consider;

• Information available from work management, supply and costing systems.

© McAlear Management Consultants 2006

Operational Planning: Set Expenditure Schedule

Updated: August 2018

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