Methods of Enhancing the Performance of Contracted Maintenance Organizations - Essay Sample

Introduction

The primary objective of maintenance in a company is to ensure sustainable service delivery and production at times of system failure or breakdown. The maintenance team should at all times be on standby to provide a sense of security before and during the company operations. The measurement of performance by the operators is vital as it indicates the current performance levels and gives indicators whether it is achievable to reach desired levels of maintenance. An operator of a firm is required to measure the performance of the contracted maintenance organizations. They can do this by use of various key performance indicators, and safety performance indicators. Contracted maintenance organizations operate under a set of rules that are regulated and controlled to ensure compliance with the regulations and hence efficient performance by the organizations. Therefore, it is important to assess and discuss the methods used to measure the contractor's organization's performance and the implications of fulfilling their obligations by offering incentives as well as consequences of their failure to fulfill obligations hence sanctioning of penalties.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Design practices determine the capability of the production equipment to function optimally. These practices are part of Key Performance Indicators (KPIs) which are important in enhancing the performance of organizations. Key performance indicators refer to methods of performance measurement that enable one to understand the performance of an organization (Marr 2012). These measures can be identified via the firm's processes of production and the end product after the production process in the company. The performance of this indicator can be achieved by efficient management of physical assets as the purpose of most production units in manufacturing, is to ensure the success of generating the end product that meets the customer's needs. Design practices which are part of the KPIs include optimization of site potential, protection, and conservation of the environment, optimization of building space and material use, enhancing of indoor environmental quality and optimization of maintenance and operational practices among others (Marr 2012). A company's recurrent activities make the overall design practices. Activities such as cleanliness of the working place and decent organization of machinery are necessary for space maximization. This is crucial as the facilities can be identified easily from recognizable positions with extra sufficient space for smooth movement of personnel in cases where space is minimal. The created extra space can also be useful for flexible activities that may arise at any given time. From the operator's point of view, it is notably easy to observe negligence in the performance of these design practices, as they involve physical basic design practices are neglected, it is easy for the one to note as it consists of the management of the physical asset (Marr 2012). These practices as a measure of indicating performance are crucial as the contracted organizations cannot afford to fail in their implementation. Such an act of failure can be detected, and the organization may face the consequences as per the regulations agreed. Therefore, it is necessary for maintenance organizations to ensure proper management of these practices hence providing quality maintenance.

Operating practices can also be used to enhance the performance of contracted maintenance organizations. Operating practices are KPIs that involve the engagement of the maintenance organizations in the process equipment of the industry. The company's operation practices may include equipment upgrades, revenue collection, training, coordination of communication among others. The training of the firm's employees can be tested by the performance of the employees at work. This method can check the suitability of the trained employees at the work station and via the work output and production outcomes (Parmenter 2012). The equipment upgrade practices are also a vital indicator in testing the performance of the contracted firms. In this case, the types of equipment in use usually undergo upgrades at a particular time, and their productivity is tested at the operations level. In cases where various kinds of equipment happen to underperform, the maintenance quality can be in doubt. This is a suitable parameter for testing their efficiency in maintenance performance (Parmenter 2012). In this performance indicator, the maintenance organization is expected to record the operation practices continually and establish a successful pattern that can be used for future references in ensuring the continuity of operating optimally. This can be used as a method of indicating the performance of maintenance organizations as they yield successful results whenever the observed pattern of operating practices is observed to be producing positive results in their repeat application. Therefore, it is prudent for the maintenance organizations to keep precise records of the operating methods as their consistency establishes a parameter that can be used in the future as the baseline or a reliable constant.

Equipment that is used consistently in the industry is prone to wear and tear. This is also true for an instrument that is used at intervals as at the time of commissioning, the equipment is rendered usable and will get replenished after a particular time of use. It is in this regard that maintenance is necessary as it is always required to intervene and rejuvenate a weak system as a result of tear out of its usage. The purpose of maintenance is to maintain the initial capability of the equipment back to as good as it was at the time of commission (Marr 2012). Neglect of periodic maintenance by the maintenance organization will be noted as soon as the proper functioning of the machinery is observed not to be up to the required standards. This as a measure of performance indicator is crucial. From the operator's perspective, it will be easy to note the failure of the maintenance team to perform their duties and sanction for their scrutiny as they are supposed to perform their functions with due diligence or face disciplinary actions as per the signed regulations.

Financial metrics are among the crucial performance indicators for any business to succeed. It is easy for a company to note its gradual success or gradual failure using the analysis on this parameter. It involves a list of key factors including profits in the business. The profit of a company is the purpose of the business existence and its trend in a financial business year determines the performance of the business in the long run (Marr 2012). The cost of running the business is also a determining indicator as its value is inversely proportional to the profits of the business. When the cost of running the business rises, it is an indication that things are not performing as they should. Hence action should be taken to deter the rising value and control the business from its operational costs. The sales by region factor are very crucial in analyzing business performance. It is a financial metric that helps understand the size of sales in various regions and determine the underperforming areas hence helps in making critical business decisions on where to improve marketing and promotions. Cost of goods sold is also a factor worth considering if the company is to identify its performance in the market. By summing up the total value of goods sold, the company can get a clear idea of what the profit margin should be, and predict future market expectations.

Customer metrics are the various parameters concerning customers' effect on the business which can be used to enhance the safety performance of contracted maintenance organizations. These metrics include a variety of aspects such as customer acquisition cost, customer satisfaction, and retention, customer lifeline value, among others. The customer acquisition costs are the costs of marketing budgeted and put in use in the desire to capture a wider market than before (Muhlebach & Alexander 2007). The marketing budget divided by the current acquired new customers gives the value of this parameter. It helps the business determine if the cost of marketing is cost-effective. Customer satisfaction and retention are crucial in ensuring the sustainability of the business. A business ability to sustain its customers is dependent on its ability to satisfy their needs at an affordable price. Determining the number of customers at a given time in the business enables one to know whether the business has a sustained number of customers over a while. The more the business sales made, the higher the chances of retained customers and a possibility of added new customers over some time. Customer metrics play a huge role in measuring the business performance, and it is crucial that the metrics are evaluated critically and the suggested response by the business is implemented to the later. In this regard, customer metrics are a crucial determinant in business performance evaluation and its implications on the business's market.

Process metrics involve the analysis of commercial activities affecting the business in various ways. They include customer support tickets, the percentage of product defects and the LOB efficiency measure and are imperative for ensuring commercial as well as the safety performance of organizations. The percentage of defects in products affects the profit margins of the business as well as the customer satisfaction aspect of the business. The less the number of products produced with defects the better for the business as this minimizes the chances of incurring huge loses; hence the number should be kept in check to ensure a sustainable business. The efficiency of a business can be measured via a variety of aspects depending on the type of business. The higher the number of units produced in a shorter period the more efficient the organization.

People metrics involve the measures surrounding the impact of people's activities in the company and their relationship with the human resource department. Several factors include the retirement rate, knowledge acquired in training, internal staff promotions and external hiring, and salary competitiveness among others. The retirement rate is determined by dividing the number of retired staffs with the current number of active staffs. The lower the number of the aging workforce the higher the turnover as it is directly proportional to the productivity of the company. Training sessions of staff members in a company can be capital intensive depending on their numbers. The retention ability of the employees and its impact on the production in the company is critical to the excellent progress of the company. This metric can be determined when the staffs are subjects to tests after training sessions and their performances analyzed in determining the effectiveness of the training exercises. The comparison between internal promotions and the external hires is a good metric in measuring the relationship of the company and its staffs as well as the qualifications and the performance of the employed staffs. This measure establishes the highly qualified staffs available in the company as well as the departments in dire need of revamping in staffs' recruitment. It helps the company in improving its weaker departments and hence a fundamental metric that should be performed to enhance the company's progress.

Organizational safety performance indicators are the safety indicators, identified and used within an organization's perimeters, to monitor and ensure safety is implemented following regulations....