A Warranty Solution to Planning and Implementing Asset Management - PowerPoint PPT Presentation

Loading...

PPT – A Warranty Solution to Planning and Implementing Asset Management PowerPoint presentation | free to view - id: 13018a-ZTFkM



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

A Warranty Solution to Planning and Implementing Asset Management

Description:

... 'Seller Beware' Early History. Caveat emptor 'Buyer Beware' Beginning of the industrial ... U. S. Uniform Commercial Code 1950's. U. S. Magnuson ... – PowerPoint PPT presentation

Number of Views:95
Avg rating:3.0/5.0
Slides: 17
Provided by: shirleyri
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: A Warranty Solution to Planning and Implementing Asset Management


1
A Warranty Solution to Planning and Implementing
Asset Management
  • Presented by
  • Gary M. Lee, P.E.

2
History
  • Caveat venditor Seller Beware Early History
  • Caveat emptor Buyer Beware Beginning of the
    industrial revolution
  • U. S. Uniform Commercial Code 1950s
  • U. S. Magnuson-Moss (F.T.C. Act) 1990s

3
Definition - Warranty
  • A written affirmation of fact or written promise
    made in connection with the sale of an asset by
    supplier to a buyer which relates to the nature
    of the material or workmanship and affirms or
    promises that such material or workmanship is
    defect free or will meet a specified level of
    performance over a specified period of time.

4
Definition Service Contract
  • Any undertaking in writing in connection with the
    sale by a supplier of an asset to refund, repair,
    replace or take other remedial action with
    respect to such asset in the event that such
    asset fails to meet the specifications set forth
    in the undertaking.

5
Service Contracts
  • Provide insurance against catastrophic loss
  • Offer periodic preventive maintenance
  • Driven by perception of risk

6
Service Contract System
Reports
7
Pricing Method
Failure Mode Identified (F.E.M.A.) Frequency of
Occurrence Predicted (Statistical
Analysis Effects of Preventive Maintenance (PM)
Analyzed Cost of PM versus Risk of Failure
Optimized
8
Costs
  • Risk
  • 30-35 Administrative
  • 65-70 Anticipated losses
  • Preventive maintenance
  • 15-25 Administrative
  • 75-85 Work orders

9
Benefits
  • Selection of capital assets based on lifecycle
    cost embedded in bid process
  • Capitalization of preventive maintenance
  • Single source for maintenance quality control
  • Insurance backed

10
Role of Insurance Company
  • Insurance company
  • Provides financial backing for claims approved by
    administrator
  • Establishes reserve account, pays claims and work
    orders from reserve as approved by administrator
  • Provides coverage against catastrophic loss
  • Must be highly rated to be effective

11
Relationship Between Administrative Company
Insurance Company
  • Administrative company
  • Provides maintenance services
  • Administers, procures all claims
  • Submits claims to insurer
  • Develops lost-cost data bank

12
Typical Operations Procedure
Owner Complaint
Routine Maintenance Schedule Control
Claim Denied
Call Center
Maintenance contact tosynchronize service call
center
Maintenance Authorized
Claims Analysis
Checks for Customer Satisfaction
Approved
Denied
Field Service Call
Maintenance Performed
Repair
Replace
Service Authorized
Report Filed W/Owner Insurer
  • Pre-authorized certifiedsub-contractors
  • Manufacturer representatives
  • REAs
  • Electrical utilities
  • Manufacturers

Quality Control
13
The Value of Insurance-Backed Service Contracts
  • Unique application of reliability engineering and
    maintenance management
  • Development of a loss-cost data base
  • National network of service providers
  • Control of preventive maintenance and independent
    quality

14
Standard Terms
15
GASB 34
Audit
3 Years
Renewal
Condition of Asset Pre-Set by Contract
16
Service Contract
Audit
Audit
Audit
  • Specified operating parameters tested
  • If actual parameters fall outside
    specifications warranted event is triggered

GASB 34
About PowerShow.com