It’s time to look at maintenance contracts. You’ve put out the tender and have a couple of contenders – how do you decide?
Hourly rate? But hold on a minute … What are you actually getting for your money?
There are many examples of variable costings as we go about our daily lives, and on some occasions we are prepared to pay more:
- Drinks from a petrol station - convenience
- Car service from the manufacturer – confidence/reliability
Hourly rate seems to be an easy way to make a decision, but scratch the surface. Is it really?
It’s a fact that no company can offer a fully comprehensive, thorough maintenance programme at a low cost without approaching the work at a low level and cutting corners. Buyers focus largely on hourly rate because there is nothing else to grab onto … and perhaps that’s how it’s been sold to them in the past.
Although today’s buyers are working under pressure to reduce costs, this single minded approach doesn’t take into account the depth and level of service that will be received, nor the resulting cost of poorly maintained equipment breaking down or underperforming.
Q: How long does it take to service a piece of machinery?
A: That depends on how well it’s serviced! What is measured? And what really counts?
Reducing your costs over time
- A joint discussion should be held between the supplier and the client to agree a budget for any given period.
- This budget is then worked to, with any issues flagged up, providing clear visibility of performance.
- You should be able to see how and where your money is being spent, and to be able to demonstrate that value to all major stakeholders in the chain.
- Reports (with drill-down visibility on the detail) should support these measures.
Once a proper maintenance programme is in place, the total cost of maintenance after the initial period often reduces year on year because once the equipment is brought up to standard, it genuinely needs less attention. Visible, accountable, nothing-to-hide : that’s the Naked Maintenance philosophy