Maintenance Contracting and Outsourcing

Courses Syllabus

Objectives                                    

The delegates will:

• Understand how to decide rationally what maintenance activities to outsource and what not
• Learn the features, functions and benefits of lean maintenance contracts
• Understand the different types of maintenance contracts (incl. Service Level Agreements) and when/how to apply them
• Learn how to define service levels and monitor the contractor performance
• Learn how to develop and negotiate a maintenance contract
• Recognize the pitfalls
• Understand how to evaluate the delivered performance of all parties involved
• Learn how to implement maintenance contract management

The Contents

Day 1 – Outsourcing Considerations

• Introduction to program
• Introduction delegates
• Asset management
• The business impact of maintenance
• Considerations in outsourcing maintenance – what to outsource and what not?
• Activity on asset matrix
• Risks involved
• Case study: Outsourcing maintenance activities

Day 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
• Interactive exercise and examples

Day 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
• Interactive exercise: review some existing contracts
• Implementing contract management – how to make it work (performance management)
• Periodic evaluation & improvement

Day 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
• Interactive exercise and role play regarding negotiating

Day 5 – 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