1. 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

2. 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

3. 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.

4. 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

5. 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.

6. 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

7. 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.

8. 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.

9. 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

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

11. 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

12. 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.

13. 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

14. 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

15. 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

16. 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

17. 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]

18. 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]

19. 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)

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

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

29. 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

30. 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

31. 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

32. 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

33. 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.”

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

35. 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.

36. 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.

37. 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

38. 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.

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