The Purpose of Maintenance Management Systems

Maintenance helps extend the useful life of equipment and machinery.

A company's leadership puts into place effective maintenance procedures and policies to keep assets in service over a long time period. Assets, or economic resources, include equipment, machinery and property.

Definition

A maintenance management system is a computer tool that corporate managers use to improve operating activities over time. The system indicates new equipment that department heads intend to purchase, as well as maintenance activities they will schedule in the future.

Purpose

A maintenance management system allows segment chiefs to plan maintenance work on fixed assets, such as equipment, machinery and property. By doing so, segment leaders make sure these assets are adequate and ready for use in manufacturing activities. A maintenance management system also allows department heads to identify which machines and equipment to purchase, depending on production needs.

Other Considerations

An accountant records equipment purchases in a balance sheet account called property, plant and equipment. This account is a long-term asset account, meaning the firm most likely will use the assets for more than a year. An accountant records maintenance expenses in the statement of profit and loss.

References

• U.S. Fish & Wildlife Service: Maintenance Management Systems