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MAINTENANCE EFFICIENCY THROUGH
DIRECT LABOR OR MAINTENANCE CONTRACTS
BY
Al-Hammad, A., and Al-Otaibi, G.
College of Environmental DesignKing Fahd University of Petroleum and Minerals
Dhahran – Saudi Arabia
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NCONTENTS
INTRODUCTIONINTRODUCTION
OBJECTIVESOBJECTIVES
METHODOLOGYMETHODOLOGY
DIRECT LABORDIRECT LABOR
CONTRACTCONTRACT
FACTORS INFLUNENCING CHOICEFACTORS INFLUNENCING CHOICE
STUDY SURVEYSTUDY SURVEY
RESULTS OF THE STUDYRESULTS OF THE STUDY
CONCLUSIONSCONCLUSIONS
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NINTRODUCTION
Nowadays, many maintenance managers are Nowadays, many maintenance managers are challenged to manage their maintenance activities challenged to manage their maintenance activities with limited resources including direct labor. with limited resources including direct labor.
Under certain conditions maintenance managers Under certain conditions maintenance managers may choice to hire a maintenance contractor. may choice to hire a maintenance contractor.
Based on their experience, maintenance managers Based on their experience, maintenance managers do differ in their policy of when and at what level do differ in their policy of when and at what level they recruit maintenance contractorsthey recruit maintenance contractors
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NINTRODUCTION (continued)
In order to make a proper decision in making a chose In order to make a proper decision in making a chose between direct labor or a contract, the advantages and between direct labor or a contract, the advantages and disadvantages as well as the factors influencing the disadvantages as well as the factors influencing the chose between the two options must be identified and chose between the two options must be identified and assessed.assessed.
Literature has identified these issues but none Literature has identified these issues but none indicated their assessment and ranking. indicated their assessment and ranking.
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NOBJECTIVES OF THE STUDY
To assess, from the view points of the To assess, from the view points of the maintenance managers, the advantages and maintenance managers, the advantages and disadvantages of direct labor versus maintenance disadvantages of direct labor versus maintenance contractors and the criteria that are needed to contractors and the criteria that are needed to make a choice between the two options or make a choice between the two options or combined.combined.
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NRESEARCH METHODOLOGY
The study was carried out in two phases:The study was carried out in two phases:
The first phase included a literature search and The first phase included a literature search and interviews. It help in the identification of the factorsinterviews. It help in the identification of the factors
In the second phase a questionnaire was developed In the second phase a questionnaire was developed using the aforementioned factors and then a using the aforementioned factors and then a survey was conducted to assess the relative survey was conducted to assess the relative importance of those factors. importance of those factors.
The data gathered from the survey was analyzed The data gathered from the survey was analyzed statistically .statistically .
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NDirect Labor
Based on a literature review and a pilot study of interviews Based on a literature review and a pilot study of interviews with maintenance managers, the advantages and with maintenance managers, the advantages and disadvantages of direct labor can be outlined as follows:disadvantages of direct labor can be outlined as follows:
(a)(a) Advantages of Direct LaborAdvantages of Direct Labor
1.1. Full Control of the Allocation of WorkFull Control of the Allocation of Work
2.2. Direct Labor Familiar with WorkDirect Labor Familiar with Work
3.3. Better Cost ControlBetter Cost Control
4.4. Better Control of QualityBetter Control of Quality
5.5. No Delay in ExecutionNo Delay in Execution
5.5. More Control on Security RiskMore Control on Security Risk
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NDirect Labor ( Continued)
(b)(b) Disadvantages of Direct LaborDisadvantages of Direct Labor
1.1. Lack of Skilled LaborLack of Skilled Labor
2.2. It is More ExpensiveIt is More Expensive
3.3. Hard to Recall People in Emergency CaseHard to Recall People in Emergency Case
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NCONTRACT
Based on a literature review and a pilot study of interviews Based on a literature review and a pilot study of interviews with maintenance managers, the advantages and with maintenance managers, the advantages and disadvantages of the contract can be summarized as disadvantages of the contract can be summarized as follows:follows:
(a)(a) Contract AdvantagesContract Advantages
1.1. Providing Skilled LaborProviding Skilled Labor
2.2. Increasing Productivity of MaintenanceIncreasing Productivity of Maintenance
3.3. Less Investment in support EquipmentLess Investment in support Equipment
4.4. Less Management ProblemsLess Management Problems
5.5. Choice of Changing ContractorChoice of Changing Contractor
6.6. Control ManpowerControl Manpower
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NCONTRACT ( Continued )
(b)(b) Contract DisadvantagesContract Disadvantages
1.1. It is ExpensiveIt is Expensive
2.2. More Supervision requiredMore Supervision required
3.3. Tendering Procedures Delay WorkTendering Procedures Delay Work
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NFactors Influencing Choice
The factors, which influence the choice between direct The factors, which influence the choice between direct labor and contractor, may be identified as follows:labor and contractor, may be identified as follows:
1.1. Nature of WorkNature of Work
2.2. Volume of WorkVolume of Work
2.2. Response timeResponse time
Emergency work Emergency work
Urgent workUrgent work
Normal workNormal work
4.4. Location Location
5.5. Quality Quality
6.6. Market conditions Market conditions
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NSTUDY SURVEY
Considering the above mentioned factors, a Considering the above mentioned factors, a survey of a randomly selected sample of 30 survey of a randomly selected sample of 30 professional maintenance managers in Saudi professional maintenance managers in Saudi Arabia was carried out to measure their Arabia was carried out to measure their assessment of the relative importance of each of assessment of the relative importance of each of the above factors.the above factors.
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NRESULTS OF THE SURVEY
Based on the response of the survey, an Based on the response of the survey, an importance index was calculated to reflect the level importance index was calculated to reflect the level of importance of these factors. This index was of importance of these factors. This index was calculated as follows:calculated as follows:
Importance Index (i)Importance Index (i) = = %1004
4
0
4
0 xx
xa
ii
iii
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NANALYSIS OF DATA
Tables 1,2, and 3 show the importance index of all Tables 1,2, and 3 show the importance index of all factors related to direct labor or a contract as well as the factors related to direct labor or a contract as well as the factors influencing the chose according to the evaluation factors influencing the chose according to the evaluation of the professional maintenance managers. of the professional maintenance managers.
The importance indices were grouped to reflect the The importance indices were grouped to reflect the respondents rating as follows:respondents rating as follows:
Extremely importantExtremely important 80 < I 80 < I << 100 100
ImportantImportant 40 < I 40 < I << 60 60
Somewhat importantSomewhat important 20 < I 20 < I << 40 40
Not applicableNot applicable 0 < I 0 < I << 20 20
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N Extremely Very Somehow Severity
Important Important Important Important N/A Index Rank
1. Full control of work 9 19 4 0 1 76.51 1
2. Direct labor familiar with work 8 11 10 2 1 68.93 5
3. Better cost control 9 12 10 2 0 71.20 2
4. No delay in execution 4 12 12 2 3 59.08 6
5. Better control of quality 7 15 5 3 3 69.15 4
6. More control on security risk 11 11 7 1 6 69.69 3
1. Lack of skilled labor 10 7 6 4 6 58.32 1
2. More expensive 5 13 5 3 8 52.93 2
3. Hard to recall people in emergency
case 4 10 7 3 9 47.72 3
4 3
A. Advantages
B. Disadvantages
02 1
Table 1: Result of the survey for Director Labor
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NTable 2: Result of the survey for Contracts
Extremely Very Somehow Severity
Important Important Important Important N/A Index Rank
1. Skilled Labor 13 13 5 2 0 78.02 1
2. Increased productivity 7 18 5 1 2 70.45 2
3. Less investment in support
equipment
4. Less management problem 2 16 6 8 1 57.57 4
5. Choice of change contractor 5 9 10 6 2 57.02 5
6. Control on manpower 11 6 9 4 1 67.73 3
1. Quality not easy to control 3 7 10 9 3 48.43 4
2. Required more supervision 5 8 5 6 4 53.56 2
3. It is expensive 4 11 6 5 3 56.88 1
4. Tendering procedures delay work 3 9 7 8 3 50.87 3
2 11 14 1 3 56.45 6
4 3
A. Advantages
B. Disadvantages
02 1
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NTable 3: Result of the survey for Factors Influencing Chose
Extremely Very Somehow Severity
Important Important Important Important N/A Index Rank
1. Nature of Worka. Work required conventional craft
skills is joined with direct labor
b. specialist work is let to outside
contractors
2. Volume of Worka. Peak workloads is let to contractor
b. Short number of operative will lead
to contractor
3. Response timea. In emergency cases, contractor will
respond better
4. Locationa. Remote area normally give to
contractor
5. Qualitya. Direct labor will be joined to high
standard
6. Market Conditiona. Market condition effect
4 3 2 1 0
6 13 8 2 3 63.28 1
3 13 7 5 2 58.33 4
4 14 2 7 4 55.64 5
1 12 6 7 5 47.57 7
7 5 5 13 2 51.56 6
2 8 3 14 5 40.62 8
6 13 4 5 4 59.37 2
5 13 5 4 4 58.86 3
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NCONCLUSIONS
Based on the result of this study and as shown in Tables Based on the result of this study and as shown in Tables 1,2, and 3, the following can be concluded:1,2, and 3, the following can be concluded:
The major advantages of direct labor were evaluated as The major advantages of direct labor were evaluated as follows:follows:
1.1. Providing full control of workProviding full control of work
2.2. Providing better cost controlProviding better cost control
3.3. Providing more control on security riskProviding more control on security risk
4.4. Providing better control of qualityProviding better control of quality
5.5. Direct labor familiar with workDirect labor familiar with work
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NCONCLUSIONS (continued )
The major disadvantages of direct labor were evaluated as The major disadvantages of direct labor were evaluated as follows:follows:
1.1. Lack of skilled laborLack of skilled labor
2.2. It is more expensiveIt is more expensive
3.3. Hard to recall people in emergency casesHard to recall people in emergency cases
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NCONCLUSIONS (continued )
The major advantages of contract were evaluated as The major advantages of contract were evaluated as follows:follows:
1.1. Availability of skilled laborAvailability of skilled labor
2.2. It increases the productivityIt increases the productivity
3.3. Flexibility in controlling manpowerFlexibility in controlling manpower
4.4. less management problemsless management problems
5.5. Choice of change contractorChoice of change contractor
66.. Less investment in support equipmentLess investment in support equipment
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NCONCLUSIONS (continued )
The major disadvantages of contract were evaluated as The major disadvantages of contract were evaluated as follows:follows:
1.1. It is expensiveIt is expensive
2.2. Required more supervisionRequired more supervision
3.3. Tendering procedures will delay workTendering procedures will delay work
4.4. Quality is not easy to control Quality is not easy to control
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NCONCLUSIONS (continued )
The major factors influencing choice were evaluated as The major factors influencing choice were evaluated as follows:follows:
1.1. Work requires conventional craft skills in joined with Work requires conventional craft skills in joined with direct labordirect labor
2.2. Direct labor will be joined to high standard of Direct labor will be joined to high standard of maintenancemaintenance
3.3. Market condition effectMarket condition effect
4.4. Specialist workSpecialist work
5.5. Peak work loadsPeak work loads
6.6. In emergency cases, contractor will respond betterIn emergency cases, contractor will respond better
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THANK YOUTHANK YOU
