What does this add up to in "Bankable Cost Downs" for our Customer?
We have commenced the expenditure at site and believe that we have achieved some benefits to date, although
they were not part of a measurable process.
Our maintenance facility conducts its business in six ways
1. Repair
2. Remanufacture
3. Refurbishment
4. Developments
5. Alternatives
6. Monitoring and Audits
Repair
- This is where we get a product back into into service with the
least amount of work, generally at a breakdown. This in itself
provides savings since equipment is kept on site, customer
labour is kept to a minimum and work is immediate.
Remanufacture
- We take a valve or pump or similar piece of equipment that
has been taken out of service and bring it back to 'as new'
condition. We might recover shafts, bodies or the like by
coating or filling and then testing the product to a
specification that ensures an equal or greater life when
reinstalled. Savings here are in the recovery of parts that
otherwise would be scrapped. We aim to remanufacture,
for example, a valve for 70% of the contract price. Across
the contract we would see two thirds of this go to the bottom
line.
Refurbishment
- This is an area that enables us to show the largest gain since
we work to re-engineer the product and enhance the life in
situ. By working together an objective can be set and
monitored. Having our key people on site enables us to
monitor the valves for themselves and be close to the site
representatives. Gains of up to 20% should be the aim, from
longer service life and less down time
Developments
- Where a solution can't be found in existing products we can
design, manufacture and maintain complete or modified items.
This advantage is obvious since the 'cost downs' can be
measured from start to finish.
Alternatives
- Tyco have a large selection of products to call on, all of them
market leaders and as we have already demonstrated at site
we can find a solution to products that fail prematurely in
aggressive media, giving longer installed life and thus less
down time and more through put. Further gains can be made
here.
Monitoring and Audits
- This is perhaps the most crucial part of the site offering since
it forms the basis of performance and the savings we can offer.
Consignment Inventory
- Our experience here is with both complete equipment and
component stock held by us at site. Ownership of the inventory
only transfers at consumption and can be summed up to a
monthly reconciliation and payment, thus avoiding normal
trading costs. We can further enhance this by working on your
SAP system and paying electronically, a position we are sure
you will be driving towards.
- The inventory would be held on a maximum/minimum basis
against historic and predicted usage. We would repatriate and
recycle inventory that was slow moving, by agreement, every
six months.
- Such a system would work in conjunction with our site
maintenance group and the stock held in their facility.
Consignment inventory gives bankable cost downs!
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