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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Date & Location

Date : 24 March 2019

Duration : 5 days

Place : Jakarta

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Date : 21 July 2019

Duration : 5 days

Place : Kuala Lumpur

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