Abstract
The mining industry's increasing mechanization has driven organizations to outsource equipment maintenance to specialized service providers through Maintenance and Repair Contracts (MARC). While MARC arrangements are prevalent in managing mobile earthmoving equipment, limited research exists on their effectiveness from a comprehensive stakeholder perspective. This study investigates MARC relationship effectiveness in the South African mining industry, focusing on mobile earthmoving equipment maintenance contracts between mining clients and service providers/Original Equipment Manufacturers (OEMs).
The case study strategy of qualitative research was employed, using multiple instruments for data collection, integrating both quantitative and qualitative data collection methods to ensure comprehensive findings. The questionnaires used had provision for both qualitative and quantitative response, administered to 13 participants (7 service providers/OEMs and 6 mining company personnel). The data collected from the questionnaire was complemented by systematic document analysis of MARC agreements and Service Level Agreements. Qualitative data underwent content analysis using vertical and horizontal analysis principles, while quantitative data were analyzed using arithmetic means with a benchmark score of 4.0 on a 5-point Likert scale.
The research identified eight key themes characterizing successful MARC relationships: (1) Creates operational value and partnership, (2) Mutually beneficial for stability, (3) Requires structural flexibility, (4) Operational excellence as a driver, (5) Dynamic review of MARC documents, (6) Strategic partnership infrastructure effectiveness, (7) Knowledge-driven operational excellence, and (8) Balanced risk-resource management. The findings reveal that effective MARC relationships extend beyond transactional maintenance arrangements to create strategic partnerships that drive operational efficiency, financial stability, and continuous improvement. Both stakeholder groups demonstrated strong consensus on benefits including genuine parts supply, optimized maintenance costs, quality control, and improved equipment performance. They equally identified some challenges in scope management, communication gaps, and skills retention.
The research contributes to the body of knowledge on maintenance management by providing information for understanding MARC effectiveness from multiple stakeholder perspectives. Practical applications include recommendations for comprehensive contract documentation, clear performance metrics, dynamic review mechanisms, and balanced risk allocation strategies. These will enhance equipment reliability and sustainable profitability for mining industry stakeholders.