Asset Cost Management Introduction

• Definitions of reliability, maintenance & asset management
• The total cost of maintenance
• Best practice reliability and maintenance processes
• Elements of asset management best practice
• Auditing performance
• Overview of TPM, RCM, BCM, QCM, and other asset management buzzword
• Open discussion sessions

 Laying the Groundwork

• Team-work maintenance, operations, stores
• The importance of standards such as PAS 55, JA1011
• Corporate asset management expectations
• Asset performance expectations
• The forms of asset failure and degradation
• The causes and nature of asset failure and degradation
• The effects, cost and risks of asset degradation
• Practical Application and Open Discussion sessions

 Applying the Value based Process

• Breaking the cycle of failure and degradation
• Select  PM tactics on the basis of costs and risks
• How to determine PM intervals
• Condition based maintenance types and the PF-curve
• The four important  reliability functions
• Implementing best practice maintenance programs
• Optimising spares to support the maintenance program
• Maintenance program cost and risk based justification
• Practical Application and Open Discussion Sessions

 Ensuring the Continuity of the Value-based Process           

• Complete the PLAN, DO, REVIEW Improvement cycle with FRACAS
• Failure Reporting, Analysis and Corrective Action System requirements
• Structure and code data collection to support reliability analysis
• How to quantify chronic failures and losses
• Use Pareto analysis and stratification to focus the value-based analysis
• Quantify losses in life cycle terms
• Hypothesise root causes of failure and verify on the basis of evidence
• Reliability Analysis Case Study
• Discussion of software and templates to support analysis

 Supporting Process that Lower Life-cycle costs

• Planning and scheduling best practice
• Cost effective man-power and skills deployment
• Performance indicators to drive continuous improvement
• Overall review of concepts learned

 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         

 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

 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

 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