WHY THE NEED FOR CHANGE?
A construction company’s operation is
only as successful as their ability to
provide effective bids and deliver
cost-effective and productive work
within the confines of that contracted
amount.
However, unforeseen delays and exceptional costs
caused by failed equipment can not only delay jobs
but eat away at the margins.
Certainly,
equipment maintenance is not the only variable
when laying a base down, building a bridge or
paving a large section of highway, but it can be
an impactful one.
Maintenance
relies on superior leadership providing direction,
focus and support. This almost always means
changing the status quo rather than preserving it.
This requires management to establish a clear
mission and vision supportive of the
organization's direction and goals. The goal of
maintenance is to enable operations to do their
job in an efficient and cost productive manner by
providing equipment in a reliable state, when
needed. But, to do this, operations, must in turn,
accept some responsibility to maintain basic
conditions of their equipment.
Only senior
leadership can make that happen. Leadership, in
this case, is not confined to the Equipment or
Fleet Manager. It includes his/her superiors and
how they provide visible and focused support for
improving equipment system efficiencies.
Leadership is also responsible for establishing
the policies and expectations that serve to guide
maintenance and the organization in supporting
maintenance activities. Once policies are
developed, they must be deployed, communicated and
monitored. Policies are the “law” of the
organization, and are therefore, the foundation to
what we hold dear and expect. We know that
un-posted speed limits leave much to interpretation
and, therefore, we have those little “policy
reminders” posted along the side of the road. That
is why we clearly communicate
rules and expectations. Part of the responsibility
of leadership is to set the framework and
expectations for maintenance to improve its
effectiveness and efficiency. This may often be in
the form of formal improvement efforts or
programs. Improvement does not usually occur
without goals and a focused plan of action.
We always
recommend a formal Steering Council be launched,
made up of the key stakeholders, to lead a major
improvement drive. Management support is not
optional, it is essential to launch and support a
significant maintenance improvement process. A ten
percent reduction in maintenance costs is direct
addition to the bottom line. This requires
management support and conviction to drive those
efforts because it will require a major cultural
change in the organization
to be successful. People use to being reactionary
need to “unlearn” those practices in exchange for
proactive ones.
World Class fleets
typically reduce their maintenance costs by 3-5%
each year. The average maintenance operation has
about 30% waste in their budget. Leadership should
help to identify and address waste issues that
could prevent improvements from taking place. This
may often be accomplished through auditing or
other forms of monitoring to ensure successful
implementation. Leadership sets the pace and the
organization should follow.
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