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

Unit 5: Development of a Maintenance Contract:

• Defining the Requirements and Service Levels
• Develop the Offer
• Selection Criteria
• Presenting the Bid
• Closing the Contract
• Evaluation of Results