Maintenance Contracting & Outsourcing

Introduction:

In the competitive environment of today, availability and reliability of assets are more than ever an important issue. A significant trend in maintenance is outsourcing maintenance activities to contractors. Maintenance contracts are being applied as a highly effective way to manage and control the relationship between the service provider and the end-user, both internally and externally. It manages the expectations of both parties, sets out the parameters of responsibility, and offers performance indicators.

This course on Maintenance Contracting & Outsourcing will ensure that you understand how to decide rationally what maintenance activities to outsource and what's not, how to select the best maintenance contractor, and how to evaluate the delivered performance of all parties involved. You will understand the different contract types, get the most from your contracts, avoid the potential pitfalls, and improve the performance of your assets. Maintenance contracts used in several branches will be discussed. You will have the opportunity to discuss the existing contracts used in your organization

Targeted Groups:

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 Objectives:

At the end of this course the participants will be able to:

Decide rationally what maintenance activities to outsource and what's 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

Targeted Competencies:

Understanding Outsourcing considerations
Contracting Types, including Service Level Agreements (SLA’s)
Key Performance Indicators (KPI’s) to Monitor Performance
Developing Contracts
The Contracting Cycle
Negotiating Skills
Continuous Improvement and Performance Management: How to Evaluate the Performance with All Parties Involved

Course Content:

Unit 1: Outsourcing Considerations:

Introduction
Asset Management
The Business Impact of Maintenance
Considerations in Outsourcing Maintenance
What to outsource and what not?
Risks Involved

Unit 2: 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

Unit 3: 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

Unit 4: 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