Maintenance Strategy Development and Cost Effective Implementation
Course Code: EM26
Course Objective
- Understand the concepts of costs, capital, profit and ROI
- Understand the cost impact of unanticipated failure
- Apply proactive policies to reduce future maintenance costs
- Structure and analyse failure data to reduce repetitive failures
- Identify root causes of unanticipated failure costs
- Reduce resource costs through efficient work management practices
- Decide rationally what maintenance activities to outsource and what not
- Use the features, functions and benefits of lean maintenance contracts
- Use the most applicable type of maintenance contracts (incl. Service Level Agreements) and when/how to apply them
- Define service levels and monitor the contractor performance
- Develop and negotiate a maintenance contract
- Recognize the pitfalls
- Evaluate the delivered performance of all parties involved
- Implement maintenance contract management
Target Audience
- Planners
- Supervisors
- Engineers
- Reliability engineers
- Maintenance team leaders and managers
- Operations team leaders and managers
- All professionals involved in procurement and supply chain management
- All professionals negotiating, managing and verifying maintenance contracts
- Teams who have been assigned the responsibility of establishing a maintenance contract will find it extremely useful to attend this seminar as a unit
- Anyone who wishes to update themselves on Maintenance Contracts & Outsourcing
Course Outline
DAY 1: Equipment Life-cycle Cost Introduction
- Definitions of reliability, maintenance & asset management
- The concept of costs, capital, profits and return on investment
- The ‘Asset Healthcare Model’
- Key areas of asset management
- Open discussion sessions
DAY 2: Cost Factors and Causes
- The real cost of unanticipated failure
- Asset performance standards
- The forms of asset failure and degradation
- The causes and nature of asset failure and degradation
- The effects, cost and risks of asset degradation
- Practical application and discussion of case study
DAY 3: Cost Reduction through Defect Elimination
- Failure data collection and analysis
- The impact of chronic failures versus intermittent failures
- Focus improvement through Pareto analysis
- Quantify losses in life cycle terms
- Rigorous root cause analysis techniques
- Root cause analysis case study
- Discussion of software and templates to support analysis
DAY 4: Maintenance Contracts
- Maintenance contract types
- Parties involved
- The tendering process – modern ways of tendering
- Choosing the right contractor
- Costing the service
- Defining Key Performance Indicators to monitor the performance of all parties involved
- Use of Balanced Scorecard with performance contracts
- Interactive exercise and examples
DAY 5: Developing the Maintenance Contract
- Vendor management
- The contracting cycle
- Assemble a team
- Assess, determine and specify the required service levels
- Writing the contract – contents of a maintenance contract
- Interactive exercise: review some existing contracts
- Implementing contract management – how to make it work (performance management)
- Periodic evaluation & improvement
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