This article will help you with the following topics:

  1. Understand the Cost Allocation models available
  2. How to configure Cost Allocation models
  3. How to visualise asset costs
  4. Asset Costs data available in the Analytics app

Cost allocation models are the set of rules by which the costs incurred during planned job orders and work orders are assigned to the assets involved.

Understand the Cost Allocation models available

There are various ways to distribute costs generated by maintenance activity among the assets portfolio we're overseeing. In some cases, we may want to allocate to the asset only the costs that were consumed/used by the asset — materials used to solve a work order, per instance. In other cases, we want to attribute to the asset all job-involved costs, such as traveling costs. 

To cover these different needs, we're introducing the possibility for our users to choose the Cost Allocation model that best suits them! You can choose between two different models, which we will explain in detail below. 

1. Direct costs

In this cost allocation model, only the costs undoubtedly connected to the asset are taken into account - materials and labour time (from tasks). These are part of work orders, planned job orders and manual tasks. Any other costs directly associated with the asset are also allocated to it, as explained in the image below.

2. Direct and indirect costs

The Direct and indirect costs model considers all the resources and expenses involved in the maintenance job - labour time, material, services and any other costs related to the job's execution.

This mean that, in addition to the direct costs (from the previous model), more costs will be accounted for (e.g. travel expenses), as shown in the image below.

How to change Cost Allocation models

By default, your asset costs are calculated according to the "Direct costs" model. You can change this following these steps:

1. On Infraspeak web, go to Settings
2. Find "Costs" and click on "Asset Costs Allocation"

3. Choose the model you want to apply to work orders and planned job orders. You'll find a separate dropdown for both, which means different models can be applied to preventive and corrective maintenance.

4. Select the model you want to apply to each, and that's it!

How to visualise asset costs

In the Assets tab, you'll be able to see all allocated costs, as per your chosen Settings regarding the allocation model.

1. Enter any equipment or location on your Assets app
2. Scroll down to the "Economic Analysis" section, where you'll now see the costs allocated to your asset, using the selected allocation model

3. You can also drill down these costs by type to better understand them

4. Now looking at the "Other Costs" section, you'll also see that the asset costs were updated to reflect your new configuration choices - you can see exactly where theses costs come from.

Asset Costs data available in the Analytics app

1. Go to the Analytics app
2. Click on the "Economic Analysis" app

3. Under the section "Costs allocated to assets", you'll find the following charts:
a. Total costs allocated to assets
b. Costs per client
c. Costs per building
d. Costs per location type
e. Costs per type of equipment

If you still have any doubts, please contact us or talk with your Customer Success Manager. We’re here to help!