Cost per Work Order
Cost per Work Order is the average or actual maintenance cost associated with completing individual work orders.
What this term means in maintenance
Cost per Work Order is the average or actual maintenance cost associated with completing individual work orders.
Formula
Average cost per work order = Total included maintenance cost ÷ Number of included work orders
Cost elements
The calculation may include:
- Labor
- Parts
- Contractors
- Services
- Freight
- Equipment hire
- Consumables
Practical example
A site records 500,000 in maintenance cost across 1,000 completed work orders.
Average cost = 500 per work order
Interpretation
The average is affected by work type and job size. Breakdown, PM, calibration, and major overhaul should not always be compared directly.
Common mistake
Comparing teams using cost per work order without controlling for job complexity can be misleading.
How this term differs
Cost per Work Order is the average or actual cost assigned to work-order records. It is related to Mean Maintenance Cost, Maintenance Cost per Asset, and Maintenance Cost, but these terms describe different records, measures, roles, strategies, or decisions and should not be used interchangeably.
Related concepts
Related maintenance terms
Keep exploring connected CMMS, reliability, and maintenance planning terms.
Maintenance Cost
Maintenance cost is the total financial value of labor, parts, contractors, services, consumables, and other resources used to maintain assets.
Work Order
A work order is an authorized record that defines maintenance work to be performed, including the asset, priority, scope, assignee, instructions, labor, parts, status, and completion evidence.
Mean Maintenance Cost
Mean Maintenance Cost is the average maintenance cost per defined maintenance event during a selected period.
Glossary FAQs
- How is average cost per work order calculated?
Total included maintenance cost divided by included work orders.
- What costs may be included?
Labor, parts, contractors, services, freight, hire, and consumables.
- Can different work types be compared directly?
Not always. Complexity and scope should be considered.