Home Health Case Studies in Maintenance and Reliability: A Wealth of Best Practices
Evaluate Contractors’ Unit Rates
A cynic is a man who knows the price of everything and the value of nothing.
Author: Mahen Das
Location:2.2.1 Liquified Natural Gas Plant
In my capacity as an internal maintenance and reliability consultant, I visited this LNG plant to review their performance. Contracting efficiency and value for money obtained was one of the items reviewed. The company was a fairly mature operation and had a number of contract companies for maintenance work. These contractors had been established during the construction of the facility and had grown with it.
The company had set up norms for the effort required to carry out various types of maintenance work. These included man-hours required for or cost of:
There was a tiered quantity-discount scheme in place for all types of work. They also had agreed rates per man-hour for different trades, including
The unit-work rates had been established some years earlier. These had never been reviewed. The man-hour rates had also been established some years ago and regularly increased, based on inflation. For the past two years, however, the contractors had voluntarily foregone inflation correction, claiming that inflation would be neutralized by improved productivity of their workers. The management was pleased with this position.
|< Prev||CONTENTS||Next >|