Matching the maintenance budget with market reality for a competitive advantage

Abstract

This research report investigates whether a need exists for realistic maintenance budgets that are aligned with market reality, providing the business with a competitive advantage. To achieve this, a theoretical model has been developed to define the need for and the substance of a realistic maintenance budget. Subsequently, this issue was investigated in the South African coal mining sector, as this sector is positioned in such a manner that the implementation and use of such a model can and should have a major impact on business competitiveness. The investigation took the form of data collection through means of an e-mailed questionnaire. The data collected by means of the questionnaires were presented as findings, which also highlighted some important issues. These issues are discussed individually. The research report concludes that a need for having a realistic maintenance budget that is aligned with market reality, giving the business a competitive advantage, does exist within the South African coal mining sector. Finally, the integrated theoretical budgeting model, which was developed to assist the maintenance practitioner in compiling a realistic maintenance budget, which is aligned with the current market reality, will give any colliery (and for that matter any business) a competitive advantage when applied. The research report ends with a proposed list of possible research opportunities that can be conducted as follow up studies to the research presented in this research report.