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Service Contracts Management

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by

Mariana Hu

on 24 June 2016

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Transcript of Service Contracts Management

How to Optimize Service
Analysis and
Data Presentation
Achieving Savings Through
Service Optimization

Conclusion
Elements for Success
Have a complete and updated inventory of all vendor service agreements
Analyze
service history
Do a comparative analysis
Analyze future needs
Analyze service options available
Identify contracts
The Process Step by Step
Warranties or service contracts expiring in the next 90 to 120 days
Corrective maintenance
minor events
major events
high cost
downtime
Future availability of service and parts support?
Anticipated
SW & HW
upgrades?
Anticipated
parts failure?
HW & SW upgrades coverage
Parts coverage
Service equipment cost
Training
cost
Contract cost
Travel & labor rates
T&M fees
Project service cost
Labor cost
Materials
cost
use historical data,
technical knowledge
& experience
Provide CE
recommendations
Implement service model
Continuous monitoring
Introduction
Identify service agreements expiring in the next 90 to 120 days
Scheduled maintenance
Unscheduled
maintenance
Optional coverage cost
Pros
Cons
Full-service contracts
Parts only
PM only
Insurance
Partnership program
Result:
Challenges:
Lack of service history information on CMMS
Vendors reluctant to provide info to a third party
Stakeholders' resistance towards service contracts review process
Lessons learned
The success of the review process highly depends on "good data"
Make sure stakeholders understand the value of the process
Develop your own tools to organize and analyze data
Be creative to present data in a meaningful way
Continuously monitor service
Quality
Effectiveness
Cost
Vendor's adherence to the
service level agreements
What is the best service option?
What other options are available?
What are their pros & cons?
Answer:
1. Review current service contracts
2. Evaluate alternative service options
Should I buy a service contract or go T&M?
achieve savings while maintaining
service support effectiveness
Goal:
Discounts
T & M
1.
2.
and...
1.
2.
3.
4.
5.
6.
7.
8.
Weigh pros and cons
Estimate total service cost
PMs and inspections
SW & HW upgrades
Preserving quality of service support
while achieving cost savings
Thank you
Credits
for your attention!
Medical Equipment Service:
What's the Best Option?
Get the stakeholders' support and input
Mariana Hu
9.
Get
stakeholders'
input
How is the
vendor's
performance?
What's the utilization level of the device?
How critical is the device?
How reliable is the device?
Clinical Engineer
ABM Health

linkedin.com/in/marianahu
Stephen Grimes
Chief Technology Officer
ABM Health
Jillyan Morano
Clinical Engineer
ABM Health
Is T&M worth the risk?
Full transcript