Fig 3.: Profit & Losses (P&L) example of each elevator
The operational variable that measures the breakdowns that occur in the
elevators is the ”Breakdown Index”, which means how many breakdowns
occur per elevator in a period of time of operation, normally is
12-month period. This KPI that appears in figure 1 is one of the most
important parameters to know the profitability of a maintenance
contract. The ratio that should not be exceeded, as a general rule, in
multinational companies is 10%, which comes from the maximum allowable
number of breakdowns on a maintenance route (geographic group of
elevators usually made up of 120 elevators maximum). Each route is
serviced by a maintenance Technician who, as a general rule again,
should always be the same.
In other words, a 10% rate of breakdowns on a route means that 12
breakdowns of different or the same elevator, occur throughout the year
in the mentioned route.
Figure 3 shows that the uncontrolled cost that can damage the Profit &
Losses (P&L), is the cost of corrective maintenance. The better the
preventive maintenance is performed, the lower costs of corrective
maintenance. The uncontrolled cost must include the opportunity cost of
not performing preventive maintenance on other elevators in the daily
planning and the cost of overtime for the maintenance Technician.
Following figure 3, a normal preventive maintenance contract of one
elevator that has a monthly income of \euro 75, which means \euro
900 per year, has a direct preventive maintenance cost of \euro 46 per
month which means \euro 552, provides to the company a GM of
348\euro, which means 38.6%, without breakdowns.
To obtain the EBITDA, the general and administrative expenses (GG&A) of
each individual company shall be applied.
RESULTS
Let’s take as an example, shown in figure 4, the elevator 1 from figure
1. Let´s suppose that has had 1, 2, or 3 breakdowns this year and have
meant 1 hour of resolution for each breakdown, but also 1 extra hour of
the Technician to recover the hours not invested in maintenance
preventive of the other elevators belonging to the route that were
planned. Let’s calculate the variation in profitability of the
maintenance contract in all cases also assuming that the local company
has 15% of GG&A: