TRENT GLOBAL COLLEGE OF TECHNOLOGY MANAGEMENT ADVANCED DIPLOMA

TRENT GLOBAL COLLEGE OF TECHNOLOGY & MANAGEMENT ADVANCED DIPLOMA IN FACILITIES MANAGEMENT ASSET MAINTENANCE MANAGEMENT LECTURER: DANIEL WONG, MBA, M. SC, BBUS

Maintenance Policy The main components of a maintenance policy Procedures involved in the preparation of a maintenance policy How to assemble a maintenance plan Concerned with maintenance objectives and performance standards

Maintenance Policy Defined as a strategy within which decisions on maintenance are taken. Organisation of maintenance within an agreed policy. Is a “strategic statement of what level of maintenance is required in order to keep the assets of an organisation in an operational condition. ” It sets a series of long-term objectives Must have an agreed working policy within which to operate.

Maintenance Policy It outlines : Maintenance objectives Maintenance requirements Who is responsible for maintenance and how it is organised How is it is to be carried out It dictates the planning and development of the maintenance programme

Maintenance Policy The programme combines the individual maintenance tasks and schedules into one. It would include all assets to enable overall performance to be monitored against planned. Should stipulate timescales, budgets, resources, monitoring and feedback practices.

Maintenance Policy Approach to produce a Maintenance Policy Appraise the current condition of the buildings, their nature, use and expectedlife. Prepare an outline programme of work Establish how the programme will be executed. Calculate the approximate costs

Maintenance Plan Sets out an organisation’s intentions for the coming year or the next 5 years, relating to budgets, workloads and priorities. Identifies areas of concern relating to service or policy. Contains programmes of works to be undertaken in the short/medium/long terms. Have due regard to the building’s expected service, standard, budget provisions, execution method etc.

Maintenance Programme Sets out and delineates in schedule format the timing, cost and priorities of repairs for the maintenance plan. 3 types of maintenance programmes Day to Day covering routine repairs Cyclical (Planned) maintenance – works on regular cycle (painting etc. ) and items planned in advance such as roof repairs. Special/Others – upgrading of components/elements.

Maintenance Policy • The maintenance objective of the organization • The maintenance reqm’t for the organization • Who is responsible for mtce and how is it organized MAINTENANCE POLICY MAINTENANCE PROGRAMME (END RESULTS) Planning involves à Identify the processes • How the mtce policy is to be carried out MAINTENANCE PLANNING à Breakdown into manageable task Decide how to execute

Maintenance Programme Purpose: Actual Maintenance Performance Vs Monitoring & Feedback Planned Maintenance Performance

Maintenance Policy Objectives How the programme contributes to the objectives of the overall organisation What penalties are imposed for not carrying out the programme What resources are needed and when Policy is derived from objectives which in turn are defined by the organisation

Maintenance Programme It combines the individual maintenance tasks and schedules into one strategic programme covering all the maintenance activities for a set period. Produce a strategic policy plan that includes all required assets and overall performance can be monitored against planned. Helps to make use of resources efficiently, forecast expenditure and monitor feedback.

The Maintenance Policy Organisation’s Objectives Determined by: • Statutory requirements • Organisational needs Effect Maintenance Objectives • Market needs • Industry standards • Consequences of failure Maintenance Policy • System interdependency • etc

Maintenance Policy Objectives are determined by a wide range of different factors, Statutory requirements Organisational requirements Customer charters Market requirements Industry Standards Consequences of failure System interdependency Overall organisation startegy

Organization’s Objective Maintenance Objectives is determined by: 1. Statutory Requirements 2. Organisational Requirements Maintenance Objectives 3. Customers Charters 4. Market Requirements 5. Industry Standards 6. Consequences of failure Maintenance Policy 7. Overall organizational strategy 8. System interdependency

Maintenance Policy Objectives Maintenance Objectives must be Clearly defined – Inform all and clear targets Achievable - monitor Match the business objectives Strategic Direct Maintenance Plan Relate to maintenance and performance standards

Maintenance Policy Objectives Overview of Maintenance Policies Based on Organisation Needs and Systems Support Needs [Source: Wilson, A. , 1999, Asset Maintenance Management, Wilson, UK, ppii]

Maintenance Policy - Objectives Audit & Management Review on Maintenance Policy [Source: Wilson, A. , 1999, Asset Maintenance Management, Wilson, UK, pp 223]

The Maintenance Performance Standards The policy generally includes performance indicators: • Measurement & evaluation of condition. • Company policy towards statutory health and safety. • A ranking methodology. • Identification of key objectives from facility strategic plan. • Outline proposals for key buildings. • Frequencies for recurring maintenance. • Policy towards deferred maintenance. • Policy for updating the maintenance programme (eg. rights). • Policy on procurement. • Maintenance & performance standards required (eg. KPI)

The Maintenance Performance Standards Organisation’s Decision Example Facilities run down until they fail before responding with maintenance Vs Carry out maintenance before facilities fail

The Maintenance Performance Standards The maintenance standards are based on: The performance standards are based on: Ø Ø Required response time Ø Down-time of essential facilities Technical characteristics of the building it carries. Ø Intended use of building Ø Ø Financial factors Required quality of report Ø Ø Organisational factors Required cost of repair Ø Ø External factors Proportion of planned to unplanned maintenance

The Maintenance Performance Standards Maintenance Standard VS Performance Standard Think macro. . Think micro. . general capabilities of the asset Acceptable level as determined by the organisation

The Maintenance Performance Standards Typical Performance Standard Indicator included in the Maintenance Policy 1. Measurement and Evaluation of condition (KPIs etc. ) 2. Company Policy towards Statutory Health & Safety (e. g. WHSA ) 3. A Ranking Methodology (compare against market indicators cost / psf) 4. Identification of Key Objectives from Facilities Strategic Plan 5. Outline proposal for key buildings 6. Frequencies for Cyclic Maintenance (5 years re-painting, chiller overhaul) 7. Policies toward Deferred Maintenance (re-roofing etc) 8. Policy for updating the Maintenance Program (frequency) 9. Policy on Procurement (bulk purchase vs ad-hoc purchase) 10. Maintenance and Performance Standards required

Maintenance Policy Maintenance policy is a strategy within which decisions on maintenance are taken. It is the alternative to 100% responsive or ad-hoc maintenance. Allow assets to run down before responding or carry out maintenance before fail

Maintenance Policy Requirements The maintenance policy must (Pg 2 -5): o Demonstrate how the maintenance function contributes to the overall organisational objectives. o Explain the consequences for not carrying out the maintenance. o Demonstrate what resources & when they are required for the tasks. o Establish the basis for performance. o Define the proposals for monitoring & performance

We can make a difference – Contribution to Organisation R/s between expenditure and planned and responsive maintenance Statutory requirements Link to revenue generation Link to capital generation Special consideration

Format of Maintenance Policy Typically comprise of: • Policy Title and Organisation Name • Originator and Date • Validation – Strategic document, signed • Preambles and Background Information • Scope and Limitations - Exclusions • Objectives of the Maintenance Policy • Schedule of Resources Requirements • Procedures for Performance and Monitoring • Proposals for Execution • Approval of the Maintenance Policy

Format of Maintenance Policy Sample – Maintenance Policy [Source: Wilson, A. , 1999, Asset Maintenance Management, Wilson, UK, pp 199]

Formulation of the Maintenance Policy 3 Steps involved : (1) Fact Finding - Research phase Appraisal of the stock - range and type of assets, any exclusions, define limits Detailed survey – understand the nature and characteristics of the stock, schedule of stock categorised by age, condition etc. Consultation of asset owners/users – purpose, extent of interruption

Formulation of the Maintenance Policy (2) Alternative Methods Analysis Approaches to maintenance (programmed, responsive, cyclic) Ways of carrying out the works (fixed price, maintenance contract, reimbursement) (3) Policy Evaluation Evaluate prior to implementation Not to miss out any elements Management audit – committee approval Maintenance audit – passed to another technical section

How to express that maintenance is a value added function to the organisation objectives? …. . Suggestions…… • (Planned $) Vs (Responsive $) • Investment on maintenance = Success of Organisation’s objectives • ensure organisation complies to statutory requirement • assure uptime of facilities = revenue generation • well maintained facilities = attractiveness = capital generation

In what ways could delay or postponement of maintenance incur costs to an organisation? How might these ‘costs’ be quantified and presented. Loss of efficiency & productivity, disruption Efficiency output/hr output/worker Greater financial loss if serious damage or breakdown occurs in the interim (also potential litigation & penalties) Cost of repair vs cost of the maintenance postponed Cost of penalties and litigation Retention rate and new customer success rate Losing business opportunities (potential & existing clients) Employees anxiety Absentee Loss of competitiveness Market share

The Maintenance Policy “is a strategy statement of what level of maintenance is required in order to keep the assets of an organisation in an operational condition. ”

The Maintenance Policy Definition: “ A strategy within which decisions on maintenance are take. ” - BS 8210: 1996 Maintenance Policy Decision Level of Maintenance Action

The Maintenance Policy What does a Maintenance Policy specifies? • Maintenance objectives of the organisation • The maintenance requirements for the organisation • Who is responsible for maintenance and how it is organised • How the maintenance policy is to be carried out.

The Maintenance Policy Objectives: • To show the maintenance programme can add value to the objectives of the organisation. • To indicate the consequences if the maintenance programme is not being followed. • To indicate when and what resources are needed for the maintenance programme.

The Maintenance Policy Characteristics: • The maintenance objectives must : - be clearly defined - be achievable - match business objectives • Must be able to direct the maintenance plan. • Must relate to maintenance and performance standards

Why Maintenance Policy l. Maintenance policy ensures that equipments are always calibrated to provide good-quality products and competitive advantage. This ensures that there are no sudden and frequent breakdowns and reduce production of defective products. l. Maintenance policy ensures that there are no major breakdowns. This ensures there is no lose of inventory or market share for companies following JIT philosophy. l. Maintenance policy ensures that equipments are always in ready and reliable condition. This ensures company is able respond to any sudden change in demand. l. Maintenance policy ensures that costs are always controlled. l. Maintenance policy is particularly important in capitalintensive industries.

Question: What is the difference between policy and standard operating procedures (SOP)? What is value management in FM? How does it affect maintenance policy?