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OF TECHNOLOGY & MANAGEMENT Advanced Diploma in Facilities Management
TRENT GLOBAL COLLEGE OF TECHNOLOGY & MANAGEMENT Advanced Diploma in Facilities Management Asset Maintenance Management Lecturer: Daniel wong, mba, m.sc, bbus
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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
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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.
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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
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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.
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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
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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.
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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.
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MAINTENANCE PROGRAMME
Maintenance Policy 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 How the mtce policy is to be carried out MAINTENANCE PROGRAMME (END RESULTS) Planning involves Identify the processes Breakdown into manageable task Decide how to execute MAINTENANCE PLANNING
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Maintenance Programme
Purpose: Actual Maintenance Performance Planned Maintenance Performance Vs Monitoring & Feedback
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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
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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.
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The Maintenance Policy
Determined by: Statutory requirements Organisational needs Market needs Industry standards Consequences of failure System interdependency etc Organisation’s Objectives Maintenance Objectives Effect Maintenance Policy
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Maintenance Policy - Objectives
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
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Maintenance Objectives
Organization’s Objective Maintenance Objectives is determined by: - Statutory Requirements Organisational Requirements Customers Charters Market Requirements Industry Standards Consequences of failure Overall organizational strategy System interdependency Maintenance Objectives Maintenance Policy
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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
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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]
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Audit & Management Review on Maintenance Policy
Maintenance Policy - Objectives Audit & Management Review on Maintenance Policy [Source: Wilson,A., 1999, Asset Maintenance Management, Wilson, UK, pp223]
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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)
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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
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The Maintenance Performance Standards
The maintenance standards are based on: Technical characteristics of the building it carries. Intended use of building Financial factors Organisational factors External factors The performance standards are based on: Required response time Down-time of essential facilities Required quality of report Required cost of repair Proportion of planned to unplanned maintenance
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The Maintenance Performance Standards
Maintenance Standard Performance Standard VS Think macro.. general capabilities of the asset Think micro.. Acceptable level as determined by the organisation
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The Maintenance Performance Standards
Typical Performance Standard Indicator included in the Maintenance Policy Measurement and Evaluation of condition (KPIs etc.) Company Policy towards Statutory Health & Safety (e.g. WHSA ) A Ranking Methodology (compare against market indicators cost / psf) Identification of Key Objectives from Facilities Strategic Plan Outline proposal for key buildings Frequencies for Cyclic Maintenance (5 years re-painting, chiller overhaul) Policies toward Deferred Maintenance (re-roofing etc) Policy for updating the Maintenance Program (frequency) Policy on Procurement (bulk purchase vs ad-hoc purchase) Maintenance and Performance Standards required
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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
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Maintenance Policy Requirements
The maintenance policy must (Pg 2-5): Demonstrate how the maintenance function contributes to the overall organisational objectives. Explain the consequences for not carrying out the maintenance. Demonstrate what resources & when they are required for the tasks. Establish the basis for performance. Define the proposals for monitoring & performance
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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
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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
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Format of Maintenance Policy
Sample – Maintenance Policy [Source: Wilson,A., 1999, Asset Maintenance Management, Wilson, UK, pp 199]
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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
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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
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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
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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 Greater financial loss if serious damage or breakdown occurs in the interim (also potential litigation & penalties) Losing business opportunities (potential & existing clients) Employees anxiety Loss of competitiveness Efficiency output/hr output/worker Cost of repair vs cost of the maintenance postponed Cost of penalties and litigation Retention rate and new customer success rate Absentee Market share
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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.”
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The Maintenance Policy
Definition: “ A strategy within which decisions on maintenance are take.” - BS 8210:1996 Maintenance Action Decision Level of Maintenance Maintenance Policy
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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.
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The Maintenance Policy
Objectives: To show how 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.
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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
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Why Maintenance Policy
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. 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. Maintenance policy ensures that equipments are always in ready and reliable condition. This ensures company is able respond to any sudden change in demand. Maintenance policy ensures that costs are always controlled. Maintenance policy is particularly important in capital-intensive industries.
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Question: What is the difference between policy and standard operating procedures (SOP)? What is value management in FM? How does it affect maintenance policy?
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