Traffic maintenance models

02/16/2018
Read time: 3 min
Traffic maintenance models

Manufacturing maintenance can take the form of outsourcing, which means hiring an outside company to handle production maintenance on a contract basis. This company can handle all production or focus on strategic machinery, operating on a contract basis to optimize production costs.

Profitability and Risk Analysis

Before taking the step of outsourcing, it is worthwhile to carefully analyze the profitability of the venture, the level of risk and the organizational potential of the company. The cost-effectiveness analysis should take into account three key factors: maintenance costs, machine reliability through maintenance, and time spent on improving maintenance.

Selective Outsourcing

When deciding to outsource, it is possible to select a company to operate only the most strategic machines. Statistics show that as many as 96% of companies opt for this model. Signing a long-term contract brings financial benefits and ensures production continuity.

Areas Covered by Outsourcing

Outsourcing includes supervision of electrical, mechanical, automation and electronics. Various forms of contracts, such as lump-sum or non-lump-sum, are commonly used in this strategy.

Advantages and Disadvantages of Outsourcing

Among the advantages of outsourcing are the elimination of purchasing costs, no need to ensure the availability of spare parts, and less in-house labor. However, long response times, risk of information leakage and lack of immediate availability of spare parts are challenges of this model.

Establishing a Subsidiary

Another approach is to maintain operations through the establishment of a subsidiary, whose main purpose is to coordinate production processes. The company has full control over the production process due to the new company's dependence on the parent company.

Control and Security

Establishing a separate company gives the company control over the service provider, while eliminating the threat of leaking company secrets. It also guarantees professional service and commitment that can be difficult to obtain from outside companies.

Decision and Analysis

The final decision whether to bet on outsourcing services or establishing an in-house company is up to the entrepreneur. Before choosing the right solution, it is necessary to thoroughly analyze all the pros and cons so that production does not lose out on the new solution.

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