The maintenance function should be viewed in value added terms and should be associated with...

Increase last year's budget by approximately 9.5% to 12% and be prepared to reduce the budgeted amount after management reviews the budget.

Determine, through benchmarking, the percentage of money spent on maintenance compared to the Replacement Asset Value of equipment.

Review the budget from the previous year and increase the budget for the upcoming year based on the effects of inflation.

Base the budget on the individual needs of each specific equipment item annually.