Asset Maintenance ManagementUnit 2Maintenance Policy

Asset Maintenance ManagementUnit 2Maintenance Policy

1

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

2

Defined as a strategy within which decisions on maintenance are taken.

Organization 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 organization in an operational condition.”

It sets a series of long-term objectives

Must have an agreed working policy within which to operate.

Maintenance Policy

3

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

4

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

5

Approach to produce a Maintenance Policy

Appraise the current condition of the buildings, their nature, use and expected life.

Prepare an outline programme of work

Establish how the programme will be executed.

Calculate the approximate costs

Maintenance Policy

6

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 Policy

7

Sets out and delineates in schedule format the timing, cost and priorities of repairs for the maintenance plan.

3 types of maintenance programmesDay to Day covering routine repairsCyclical (Planned) maintenance – works on regular

cycle (painting etc.) and items planned in advance such as roof repairs.

Special/Others – upgrading of components/elements.

Maintenance Programme

8

Purpose:

Actual Maintenance Performance

Vs

Planned Maintenance Performance

Monitoring & Feedback

Maintenance Programme

9

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 Policy - Objectives

10

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.

Maintenance Programme

11

Organisation’s

Objectives

Maintenance

Objectives

Maintenance

Policy

Determined by:

• Statutory requirements

• Organisational needs

• Market needs

• Industry standards

• Consequences of failure

• System interdependency

• etc

Maintenance Policy

12

Objectives are determined by a wide range of different factors:Statutory requirementsOrganizational requirementsCustomer charters (rights)Market requirements Industry StandardsConsequences of failureSystem interdependencyOverall organization strategy

Maintenance Policy - Objectives

13

Organization’s Objective

Maintenance Objectives

Maintenance Policy

Maintenance Objectives is determined by: -

1. Statutory Requirements

2. Organisational Requirements

3. Customers Charters

4. Market Requirements

5. Industry Standards

6. Consequences of failure

7. Overall organizational strategy

8. System interdependency

14

Maintenance Objectives must be

Clearly defined – Inform all and clear targets

Achievable - monitor

Match the business objectives

Strategic (relating to the identification of long-term or overall aims and interests and the means of achieving them)

Direct Maintenance Plan

Relate to maintenance and performance standards

Maintenance Policy - Objectives

15

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)

Maintenance Performance Standards

16

Organisation’s

Decision

Example

Facilities run down until they fail before responding with maintenance

Vs

Carry out maintenance before facilities fail

Maintenance Performance Standards

17

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

Maintenance Performance Standards

18

Maintenance Standard VS

Performance Standard

Think macro..

general capabilities of the asset

Think micro..

Acceptable level as determined by the

organisation

Maintenance Performance Standards

19

Macro and micro refer to measurements of size but in different directions. One refers to large measurements, and one refers to small measurements.

Typical Performance Standard Indicator included in the Maintenance Policy

1. Measurement and Evaluation of condition (KPIs etc.)

2. Company Policy towards Statutory Health & Safety

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 Performance Standards

20

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

21

The maintenance policy must (Pg 2-5):

o Demonstrate how the maintenance function contributes to the overall organizational 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

Maintenance Policy Requirements

22

We can make a difference – Contribution to Organisation

Relationship between expenditure on planned and responsive maintenance

Statutory requirements

Link to revenue(operational) generation

Link to capital generation

Special consideration

23

Typically comprise of:

• Policy Title and Organisation Name

• Originator and Date

• Validation – Strategic document, signed

• Preambles (a preliminary or preparatory statement; an introduction) 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

24

3 Steps involved : (1) Fact Finding - Research phaseAppraisal of the stock - range and type of assets, any

exclusions, define limitsDetailed 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 Maintenance Policy

25

(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

Formulation of Maintenance Policy

26

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

How to express that maintenance is a value added function to the organisation objectives?

27

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

28

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

Maintenance Policy

29

Definition:

“ A strategy within which decisions on maintenance are take.”

- BS 8210:1996

Decision

Level of Maintenance

Maintenance

Action

Maintenance Policy

Maintenance Policy

30

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.

Maintenance Policy

31

Objectives:

• To show how the maintenance programme can add value to the objectives of the organization.

• To indicate the consequences if the maintenance programme is not being followed.

• To indicate when and what resources are needed for the maintenance programme.

Maintenance Policy

32

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

Maintenance Policy

33