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MAINTENANCE CONTRACTING & OUTSOURCING

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Training Title

MAINTENANCE CONTRACTING & OUTSOURCING

Training Duration

5 days

Training Dates & Venue

REF

RM040 Maintenance Contracting & Outsourcing 5 21 – 25 Feb $4,250 Dubai, UAE

Training will be held at any of the 5 star hotels. The exact venue will be informed once finalized.

Training Fees

• 4,250 US$ per participant for Public Training includes Materials/Handouts, tea/coffee breaks, refreshments & Buffet Lunch

Training Certificate

Define Management Consultancy & Training Certificate of course completion will be issued to all attendees.

TRAINING OVERVIEW

TRAINING DESCRIPTION

Production capacity is ultimately a plant’s most valuable asset. That capacity depends on a variety of factors, including employees, engineering, utilities, and machine uptime, not to mention management of materials inventory. Any dip in the quality of these will have an impact on production, and therefore profitability.

“The plant manager should see the contract organization as an extension of the maintenance department and manage the relationship as such. The contracted organization should realize the company they are working for is why they are in business and act as a partner.”

Prior to awarding a contract, clear expectations should be defined and agreed upon between plant personnel and the contracting organization.

The agreement should cover fees, resources, methods, expected results, and how performance of the contractor will be measured.

The performance indicators need to be established upfront, and the contractor should be evaluated against them on a regular, systematic basis, such as monthly.

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A small steering committee consisting of key site and contractor management should jointly review the indicators periodically, in a conference call or physical meeting, and identify both good and subpar performance, developing and installing corrective action plans to resolve the latter.

This training seminar will ensure that you understand how to decide rationally what maintenance activities to outsource and what 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. Through a combination of formal lectures and group work, you will leave the seminar with the tools to improve your contracts and contract management.

THIS TRAINING INTRODUCES PARTICIPANTS TO THE SKILLS AND KNOWLEDGE AREAS OF MAINTENANCE CONTRACTS & OUTSOURCING OF TODAY, SUCH AS:

 Understanding Outsourcing considerations  Contracting types, incl. Service Level Agreements  Key Performance Indicators to monitor performance  Developing contracts – the contracting cycle

 Continuous improvement and performance management: how to evaluate the performance with all parties involved

TRAINING OBJECTIVES THE DELEGATES WILL:

What kind of maintenance should or should not be contracted out and the reasons for choosing either option.

• Reasons to hire a contractor

• 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 • Establishing an appropriate tendering process

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• Learn how to establishing an appropriate contract payment structure

• Learn how to implement an appropriate structure for the contract document • Agreeing contract termination arrangements

• Recognize the pitfalls

WHO SHOULD ATTEND?

• 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

TRAINING OUTCOME

 At the end of the course participants will learn the principles of the centrifugal compressors and gas turbine.

 Familiarize the participants with various types of centrifugal compressor & gas turbine.  Understand the operation principles of the centrifugal compressor and gas turbine.  Learn the maintenance procedure of the centrifugal compressor and gas turbine.

 Discuss the troubleshooting and failure analysis of the centrifugal compressor and gas turbine.

DAILY OUTLINE

Day 1 - Outsourcing Considerations  Introduction

 Contractors Skim

 Upside and downside contractors  Introduction to program

 Asset management

 The business impact of maintenance

 Considerations in outsourcing maintenance – what to outsource and what not?  Using contractors

 Risks involved  Safety performance

 Conflict between contractors

 Case study: Outsourcing maintenance activities

Day 2 - Maintenance Contracts

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 Parties involved

 The tendering process – modern ways of tendering  Choosing the right contractor

 Agency labour  Contractor Selection  Contractor availability  Awarding contracts  Costing the service

 Selecting & Managing contracts

 Defining Key Performance Indicators to monitor the performance of all parties involved

 Use of Balanced Scorecard with performance contracts

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 - Reasons for Outsourcing Failure

 Expectations about availability, reliability and costs  Ten Reasons for Outsourcing Failure

 Signs of Trouble

 Guidelines for Outsourcing Contracts  How to Measure a Contractor's Performance

 Outsourced maintenance impacts production and profitability  How the big companies’ manager look for maintenance Outsourced  Outsourcing of Reliability or Maintenance?

Day 5 –Issue and Finalize Contract

 Development of a maintenance contract in groups  Defining the requirements and service levels  Develop the offer

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• maintenance services • structure agreed services • warranties or promises • legal disputes

• provisions for terminating the contract  Maintenance outsourcing example contract  Selection criteria

 Exhibiting/ Presenting the bid  Final the contract

 Evaluation of results  Wrap-up

Case Studies, Group Discussions, Last Day Review, Assessments will be carried out.

References

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