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Get Maintenance Under Control

by Don Dovgin

Maintenance expenditures are a significant portion of operating costs. To control them, it is important to use the option best suited for your fleet and realize what leverage exists in dealing with maintenance providers.

Over the years we have accumulated a vast amount of maintenance cost data that allows comparative analysis of maintenance costs. With thorough knowledge of how to add value to maintenance programs and understanding the cost drivers, we are well armed to leverage quick benefits.

Some checkpoints to consider are:

• Providing IT solutions based on your maintenance requirements
• Assessing staffing needs based on fleet size
• Understanding when to do in-house maintenance
• Comprising a good preventative maintenance program
• Evaluating cost avoidance initiatives for parts inventories
• Knowing when to outsource certain bills of work
• When total outsourcing is warranted
• Leveraging with maintenance providers
• Negotiating full service lease agreements
• Analyzing economic feasibility of equipment for capitalization

Warranty recovery and out-of-warranty adjustments have considerable impact on overall operating costs too.

Lastly, benchmarking and measurement of key performance indicators are paramount to monitor savings. We can help you put mechanisms in place to ensure your savings are indeed going to the bottom line.

5 questions to ask your maintenance division

• Should equipment be owned or leased?
• When is the equipment no longer providing economic value?
• Are vehicles engineered for your operating environment?
• Should equipment be financed or paid for in cash?
• Should I do mechanical work in-house or outsource?

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