Abstract
M.Phil.
In the modern world maintenance organisations are exposed to rapid changes in
equipment complexity and the maintenance thereof. Maintenance people have to
adopt completely new ways of thinking and managing. If organisations and their
management do not adapt to these changes and challenges they are destined to
oblivion. Moubray (1991:1) states that:
"Managers everywhere are looking for a new approach in maintenance.
They want to avoid the false starts and dead ends which always accompany
major upheavals. Instead they seek a strategic framework which
synthesizes the new developments into a coherent pattern, so that they can
evaluate them sensibly and apply those likely to be of most value to them
and their companies"
One of the viable alternative business strategies and maintenance approaches in
dealing with equipment complexity and hence the management thereof, is by
means of maintenance outsourcing and contract setting. If done correctly it
reduces the risk of organisations and increases flexibility. During outsourcing
initiatives organisations will look for benefits such as improvement of its profit
margins by means of inventory reductions, improved reliability, maintenance
efficiency and expert skills maintaining their assets.
Coetzee (1997:24) explain that the task of the maintenance function is "to
support the production process with adequate levels of availability, reliability and
operability at an acceptable cost". The same principles apply in adherence to the
maintenance contracts where the Original Equipment Manufacturer (OEM) or
contractor also needs to support the customer with the adequate levels of
availability, reliability and operability at defined costs. This can only be achieved
by quality maintenance; "the right level of maintenance performed at the right
time to the right equipment by workmen able and willing to deliver quality
workmanship and using correct task specifications" (Coetzee, 2000a).
The method used in maintenance outsourcing negotiation and binding
agreements between the organisation and the contractor is a Repair and
Olivier-2008 Department of Mechanical and Manufacturing Engineering - UJ
Maintenance Contract; commonly known as R+M or MARC contracts. Essentially
a Repair and Maintenance contract is the outsourcing of a long term Service
Level Agreement (SLA) or maintenance project, normally to the OEM, or its
authorised service organisation.
"A maintenance and repair contract is a contractual agreement between the
OEM (original equipment manufacturer), or contractor, and the equipment
owner or user, where the OEM or contractor carries out all maintenance and
repair activities at a guaranteed rate per hour" (Lugtigheid, et al. 2007).
When organisations adapt outsourcing as a business strategy, it creates a
framework of uncertainty and risk to Original Equipment Manufactures and/or
maintenance contractors who has to perform the maintenance services. The
focus of manufacturing and selling is thus disrupted by the challenge of the
unknown playgrounds of competitiveness