Maintenance Strategy Development and Cost Effective Implementation

What are the Goals?

By the end of this Maintenance Strategy Development and Cost Effective Implementation training course, delegates will be able to:

• 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

Who is this Training Course for?

This Maintenance Strategy Development and Cost Effective Implementation training course is suitable to a wide range of professionals, but will greatly benefit:

• 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 course as a unit
• Anyone who wishes to update themselves on Maintenance Contracts & Outsourcing

Daily Agenda

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

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

Breaking the Cycle of Degradation and Costs

• Programmed maintenance
• Programmed maintenance intervals
• Condition-based maintenance intervals
• Implementing optimised PM programs
• Optimizing spares to support the maintenance program

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
• Discussion of software and templates to support analysis

Work Management converts Strategy to Practice

• Work identification and defect reporting
• The importance of backlog
• Planning for quality and reliability
• Capacity planning
• Scheduling for efficiency
• Work logistics and preparation
• Checklists and practical aspects work quality control
• Final discussion and evaluation

Outsourcing Considerations

• Introduction
• Asset management - The business impact of maintenance
• Considerations in outsourcing maintenance – what to outsource and what not?
• Risks involved

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

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
• Implementing contract management – how to make it work (performance management)
• Periodic evaluation & improvement

Grounding and Negotiating the Contract

• Expectations about availability, reliability and costs
• The extensive preventive maintenance schedule – “tricks” of maintenance contractors
• The seven steps to develop a risk based maintenance concept
• Using the maintenance concept to negotiate more effectively lean maintenance contracts
• Negotiating the contract – negotiation ploys
• Negotiating the contract – negotiation tactics
• Negotiating tips

Final Workshop

• Development of a maintenance contract in groups
• Defining the requirements and service levels
• Develop the offer
• Selection criteria
• Presenting the bid
• Closing the contract
• Evaluation of results
• Wrap-up