How Backlog Gets Out of Hand & Strategies for Managing and Reducing It

Maintenance backlog is a critical issue in the manufacturing industry. It arises when the volume of pending work orders exceeds the capacity of the maintenance team to resolve them within a set time frame. When left unchecked, backlogs can compromise operational efficiency, lead to higher costs, and increase downtime, which is why effective management is important. This blog will explore the different aspects of maintenance backlog, from industry standards to strategies for reducing and managing them.

Industry standard for maintenance backlog

The industry standard for maintenance backlog typically ranges between two to four weeks of work. This range allows for flexibility without straining resources or equipment. According to Jason Afara (opens in new tab), our Director of Solutions Consultants, “If your backlog exceeds this threshold, it may signal inefficiencies in your maintenance process.” Jason brings over 9 years of experience in the maintenance sector, and having been a maintenance manager himself, understands the criticality of keeping backlog under control.

“The ideal size of a backlog really varies depending on your industry, but regardless of industry you can’t let critical tasks get out of control. Things that are less critical can probably handle a larger backlog without a big impact,” says Jason. The table below is a general guideline for maintenance backlog across different industries:

Disclaimer: The table outlined above serves only as guidelines and can vary based on the specific nature and current state of the operation, labor availability, equipment criticality, and regulatory environment.

Maintenance planning and accounting for backlog

In any maintenance operation, maintenance planning is a factor to ensure equipment uptime and ensures that tasks are completed and on schedule. Managing maintenance backlog is just one part of maintenance planning, and it’s also essential not just for maintaining uptime but reducing operational risk.

The challenge is that not all backlog tasks are created equal. “Does the work require scheduled downtime, expertise from an external contractor? Or specific parts we do not have in stock? These are all things to ask,” says Jason. Teams need to understand what they have to prioritize versus what they want to prioritize.

“Effective maintenance planning requires a pretty robust system for prioritizing tasks based on their impact on operations, so high-priority tasks should always be addressed first despite what technicians might assume is critical,” says Jason. He adds that by implementing a risk-based approach, maintenance teams can focus their resources on the most urgent needs while ensuring that lower-priority tasks don’t fall through the cracks.

If a team has poor backlog management it’s going to be a reflection of their maintenance planning.

So how can teams account for backlog in their maintenance planning and scheduling?

“Regular reviews and tracking as part of your maintenance planning is probably the best way to get backlog at a healthy ratio,” says Jason. In addition, we know that having clear recourse allocation, whether personnel, parts or tools can really help resolve the backlog in a timely manner. Jason also highlights that monitoring certain metrics as part of the team’s plan is important for operational success:

“Firstly, understand where your backlog is coming from. Is it coming from other teams, missed PMs, or corrective work orders? Once you know where it’s coming from, then you can go ahead and calculate your backlog size or your average time to clear a backlog. You should have your eyes on backlogs first thing in the day and last thing before you’re off.”

How to calculate maintenance backlog for work orders

To calculate your maintenance backlog, you need to assess the total number of work orders that remain incomplete and compare that against the maintenance team’s capacity. Here’s the formula:

This formula gives you an estimate of how many weeks of work are backlogged, providing a better picture of resource constraints. Monitoring this total allows teams to identify whether the backlog is growing, stabilizing, or decreasing.

For example, let’s say your maintenance team currently has 400 hours of pending work orders, and the team’s available capacity is 100 hours per week. Using the formula:

The maintenance backlog is 4 weeks. So, it would take the maintenance team 4 weeks to clear all of the pending work orders if no new work orders were added during that time. Now that you understand how to calculate maintenance backlog for work orders, let’s review the best practices for prioritizing backlogs.

Best practices for prioritizing multiple backlogs

When facing multiple backlogs, prioritization becomes critical. “Backlogs shouldn’t be treated as one task list, you need to know what’s critical and what can wait,” says Jason. Here are some of the best practices for prioritizing backlog:

1. Focus on the criticality of equipment: Prioritize equipment critical to production or safety. Backlogs tied to these should be addressed first, as their failure could result in major downtime or safety hazards.
2. Conduct your risk assessments: This should be done for each task based on factors like safety, operational disruption, and potential repair costs. High-risk issues should take precedence.
3. Calculate the age of work orders: Consider the age of each work order. If older tasks continue to be deferred, they may evolve into larger, more complex problems.
4. Prioritize preventive before corrective maintenance: Preventive maintenance should be prioritized over corrective tasks because catching issues early helps avoid expensive repairs and downtime later.

Best practices for reducing multiple backlogs

Of course, it’s obvious that one needs to prioritize which backlogs should come first, but the follow-up to that is how to reduce a high volume of deferred maintenance.

“Your maintenance team can spend all kinds of time, days, weeks putting together and organizing their backlog priorities and getting through them, but what they need to get right is how to cut multiple backlogs from happening in the first place,” says Jason. He adds that “If that isn’t figured out and under control that’s how deferred maintenance gets completely out of hand.”

So what can be done to get deferred maintenance reduced?

“For one thing, implementing preventive maintenance programs, using a CMMS, breaking tasks down into smaller and more manageable projects, using contractors… there’s lots of ways to reduce your backlogs,” says Jason.

Let’s review Jason’s suggestions a bit further with some examples:

Implementing a preventive maintenance (PM) program. Arguably the most effective way to reduce deferred maintenance is by minimizing the need for reactive maintenance. You’ll need a PM program that includes regular inspections and routine upkeep. PM reduces the likelihood of unexpected breakdowns and helps address small issues before they escalate.

Use technology to track and optimize workflows. A computerized maintenance management system (CMMS) can provide real-time visibility into backlog status, team capacity, and work order prioritization. With data in hand, maintenance teams can better allocate resources and streamline their workflows.

Break tasks into smaller and more manageable projects. Large, deferred tasks can be daunting. Break them into smaller, more manageable work orders that can be completed in stages. This keeps progress moving and prevents tasks from lingering in the backlog for too long.

Leverage contract services. When internal resources are stretched thin, consider contracting third-party services to clear some of the backlog. This ensures that high-priority tasks get attention without overloading the in-house maintenance team.

Check out our short guide to preventive maintenance

Learn more in our eBook (opens in new tab)

Budgeting for unexpected backlog costs in manufacturing

Budgeting for backlog-related costs can be challenging, especially when unplanned maintenance arises. In fact, on average, maintenance accounts for 20-50% of the total operating budget (opens in new tab). “That’s a big cost for any organization, imagine 50% of your budget going towards maintenance alone, you’re going to want to budget for backlog costs in that case,” says Jason.

He brings up a fair point, the 50% scenario is a reality for some maintenance teams. He highlights that there are four core practices to get better at budgeting for backlog costs: “You need an emergency budget, data analysis, flexibility, and last but certainly the most overlooked is a relationship with your finance team.”

Let’s break down what Jason highlights even further:

1. Establishing a contingency fund. This is where you set aside a portion of the maintenance budget for emergency repairs or unplanned tasks. Try and get 80% of your costs as predictable and part of your PM program and have 20% for the unpredictable. This can prevent major budget overruns when the unexpected happens.
2. Conducting historical data analysis. You need to spend time reviewing historical maintenance data to forecast potential unplanned events. Understanding past patterns helps predict future breakdowns and associated costs.
3. Having flexible budget allocation. Building flexibility into your budget may be easier said than done. But by allocating funds that can be easily shifted between planned and unplanned maintenance tasks you can be flexible as priorities change.
4. Collaborating with finance teams. Regular communication and meeting (ideally weekly) with your finance department can ensure that maintenance teams have enough flexibility to address emergencies without needing large, one-off budget increases.

Learn more about maintenance budgeting and working with your finance team (opens in new tab)

Maintenance backlog is a challenge but it can be managed

With the right strategy in place, maintenance backlog can not only be managed but reduced as well. As Jason highlighted, prioritizing your critical tasks, budgeting for the unexpected, and leveraging preventive maintenance and modern strategies can help keep backlog at a manageable level. Staying on top of deferred maintenance not only reduces costs but also enhances the reliability and safety of your equipment.