Maintenance Cost Reduction Services

Maintenance Department Cost Reduction Self Test:

1. Does your organization have experienced PM Optimization Project Leaders or Facilitators?

2. Do your Maintenance and Materials departments have specific cost control and profitability focused performance metrics

3. Is your team qualified and experienced at developing and executing Maintenance cost reduction strategies?

4. Are they currently applying all of the following BEST practices?

a.  Identify what low value, low risk tasks should be transferred to less costly Contractors or Operations.

A common problem: When internal change agents recommend change, the resistance to change is high and therefore
the probability of success is low.

**Third parties are best positioned to implement significant, lasting change of fundamental practices

b.  The workload is spread between trades people and operators to ensure adequate skill levels and budgets
     are met.

c.  Remove all maintenance tasks that do not directly manage critical failure modes or are not cost effective.

d.  Eliminating duplication of effort to ensure the same task is not being performed by more than one department.

e.  Primarily geared towards a condition-based maintenance philosophy.

f.  Have taken the time to accurately list all unpreventable failure modes and only apply ‘mitigating interventions’
     rather than preventative.

g.  Ensure maintenance tasks are changed to manage failures that history has shown to be problematic.

h.  Adequate data collection of historical failures and performance measures to adequately analyze operations
     and manage costs.

i.  Adopted a systematic process to ensure cost management stability. This includes, but is not limited to root
    cause analysis, defect elimination, planning and scheduling and much more.

j.  Harbour a culture of continual review of plant failures and maintenance strategies to ensure your operation continually
    improves and successfully matures.

Carver can assist you in creating and embedding a cost control culture that delivers sustainable low cost maintenance.
contact Carver today to discuss practical options to cut your operating costs.

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How to be a “Low Cost Producer”!

To be a ‘Low Cost Producer’ you must have top quartile capabilities in the application of:

1. Industrial Cost Estimating skills and standard processes,
2. Budgeting principals and processes and,
3. Imbedding “Cost Control techniques” in field supervision decision making and most importantly,
    within the job package tasks and decision points.

Carver can help you identify and improve your ‘Cost Control’ opportunities.

Carver’s Cost Reduction Specialists typically start by conducting a confidential, comprehensive review of your current Cost Control capabilities and practices.

Once our experts identify best practices and opportunities within your organization we are ready to begin initiating the cost reduction process. This will entail several steps and will require integration throughout all related departments.

Let a Carver Specialist help your organization:

1.  Reduce Low value tasks: Identify low value, low risk tasks to make certain they are handled in the safest and most
     cost effective manner. Tasks will be evaluated and prioritized to spread the workload amongst trades people and
     operators to ensure each task is handled by the group that is least costly.

2.  Reduce redundant tasks: Thoroughly review all maintenance programs to move towards a highly integrated and
     organized operating structure with open communication between departments. This will ensure time and money are
     not being wasted on tasks being repeated by more than one department and that your employees are being utilized
     to their fullest potential. E.g. performing the same Preventative Maintenance (PM) more than required or repeating the
     same task in another departments PM schedule; e.g. the task is done in the 30 day inspection and the six month inspection

3.  Reduce unnecessary downtime costs: Carver has implemented Reliability Improvement initatives around the
     globe. We will review and analyze historical data to actively manage critical failure modes that have shown to be
     problematic in the past. This may require adding new maintenance tasks, incorporating modifications to current
     practices or removing them altogether.

4.  Imbed Sustainable Cost Reduction Best Practices: Ensure all team members fully understand best practices
     and the advantages gained by applying them to every task. This will allow your team to easily adopt and employ
     these guidelines in a systematic manner, ensuring consistency and accuracy throughout your organization.

5. Create a culture of continuous review

**All of these processes will deliver Cost Control that is only seen by top quartile organizations.

Contact Carver today to discuss how we have helped other organizations like yours achieve top-quartile status and how we can help your organization achieve its cost management goals.