Friday, 25 March 2016

#10 Report: Maintenance Management System (Part 2)

3.4  Maintenance Budget
Maintenance budget is the large block of money that tracked by specific department which is the accounting department. The budget will distribute into the organization involve in maintenance such as labour, materials, services, and other related expenses. Maintenance budget should be an expression of the forecasted short term which is annually and long term workloads in term of the cost of internal labour, contract labour and the materials needed to deal with them. This maintenance budget also emphasized that in plants requiring major shutdowns and there is also the need for a specific turnaround budget.

Budgeting procedures appropriate for large process plants are compared with those for individual manufacturing units. Maintenance budgeting is rarely as rational as described, senior management seeing maintenance only as a cost and ignoring the linkage between maintenance expenditure and production output. The need for a maintenance budget arises from the overall budgeting need of corporate management and involves estimation of the cost of the resources such as labours, materials, spare parts and other expenses budget. That will be needed in the next financial year to meet the expected maintenance workload.

For our case study, Penang City Stadium, the officer that we interview informed us that the maintenance budget of this stadium is about RM 500,000.00. This amount of budget will distribute to all department which are civil and engineering department, mechanical and electrical department, and services for their facilities. This amount of budget gave from government for their maintenance per annum and it will change by the situation and condition from the government budgeting for every year. The officer also informed us if the budget for maintenance is not enough then they will issue the problem to Majlis Pembandaran Pulau Pinang (MPPP). After that, the MPPP will check the issues and a reply letter will be issued.

Other than that, Penang City Stadium also have maintenance budget for field and track. This field need to have the maintenance such as cutting and sprinkling process. If the work cannot be done by worker from stadium they will hire the specialist to complete the maintenance. This maintenance also include in maintenance budget per annum.

1.2  Health and Safety Aspects
As mention above, Penang City Stadium maintenance work is carry out by contractors and workers in Penang City Stadium. Meanwhile, the ccontractors and workers often work in workplaces with hazards that unfamiliar to them which may comprises of chemical, pollution, and many more hazards.

Workers at the stadium roughly spend their time about 8 hours per day. It means that quarter of the day they spent at the stadium. Thus, it is very important for the working environment (stadium) to be kept safe from any hazard or circumstances.

In our case study site, Penang City Stadium is not concern about health and safety aspects in maintenance work. According to the information provided by Chief Clear, the contractors who undergo maintenance work in the stadium are not concern about their safety. In which, they does the maintenance works without using and wearing any safety equipment.

Occupational Safety and Health Act (OSHA) 1994
Purpose of OSHA 1994
·         To ensure safety, health and welfare of people who are at work.
·         To protect other people against risk or hazard regarding the activities of persons at work.
·         To promote safe working environment for persons at work.
·         To enhance the productivity rate of work by good working environment.

Problem and Hitch to Implement OSHA 1994
1)      Safety officer quality of works is inefficient;
Safety officer in every company is a must as required by the OSHA 1994. But, most of the company simply do not compliance the health and safety aspects due to lack of safety commitment and low budget allocation by management team.

2)      Ineffective health and safety campaign;
Health and safety awareness campaigns are important so that people who at work will avoid any accident or injury at the workplace.

3)      Lack of health and safety act enforcement by local authority;
Insufficient human labour, low government budget allocation and not committed can be added to this constraints.

4)      Inadequate safety training and course for safety officer;
Most of the safety officers are not properly trained and not certified for them to provide and enforce safety guidelines on the site.

5)      Behaviour of people who at work;
Some people at work pretend not to follow health and safety aspects although they know their working environment are no safe and being expose with hazard.

Importance of Implementing OSHA 1994
·        -  It establishes health and safety guidelines
·         - It might help in reducing accidents on site

·         - It leads to greater productivity and a higher quality of work

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