Always Inside Job?

The Works Management Magazine has interviewed PEME’s Business Improvement Manager, Wayne Pheasey, to solicit PEME’s views on outsourcing Plant Maintenance in an article entitled “Not always an inside job.”

Wayne explains in the article that for many manufacturers outsourcing is an established and successful business strategy delivering service improvements and cost benefits, allowing them to concentrate on their core activity of successful production.  It is not unusual for elements such as Facilities, Catering, Security, Hygiene, etc. to have been outsourced but less common for the maintenance of production assets to have been subcontracted.

PEME has successful contracts that can be described as ‘full’ outsourcing.  It is however, more common for us to provide a team based on a client’s site with a ‘ring-fenced’ responsibility for elements of Asset Care such as delivery of Plant Maintenance, Condition Monitoring and Reliability Improvement or responsibility for maintaining their Engineering Compliance  arrangements. Another example is a dedicated team providing continuous improvement Project Installations support across several sites.  Partial outsourcing can be an important element of a site’s overall maintenance strategy.

One of the challenges we frequently meet when engaging with manufacturers, who wish to explore the option of outsourcing responsibility for maintaining their Plant assets, is that it is not always clear what is driving their interest in an outsourcing solution. Additionally, it is not unusual that their existing asset care arrangements are not quantitatively understood (e.g. existing maintenance costs and engineering-related KPIs such as engineering-downtime and Maintenance Plan compliance).  This can result in an unsuccessful outcome with businesses either entering into outsourcing contracts or dismissing outsourcing as a viable option for the wrong reasons.

To help manufacturer’s in making the right outsourcing decision, PEME’s approach is to first try and understand their ‘pain’ – what is behind the interest in outsourcing, e.g. it might be recruitment and retainment issues, or poor productivity performance or safety concerns.  If we understand the problems being faced we can then tailor an outsourcing solution (full or partial) that meets their challenges and delivers a successful outcome.  We do this by facilitating an Asset Care Assessment  workshop.

The magazine article can be found in-full, on-line by clicking here – page 30