Chapter 8
Managing Maintenance

Basic Maintenance Procedures

l   Routine maintenance

l   Preventive maintenance

l   Corrective maintenance

l   New construction

l   Deferred Maintenance

Contract services--services which you do not have the staff to do

l   Housekeeping (when property is too small for on-site staff)

l   Window cleaning

l   Refuse and snow removal

l   Pest-control

l   Security

Contracting for New Construction

l   Competitive bids

l   Negotiated contracts

l   Delegating to tenant

   Less trouble in short run

   Lack of control

l   Types of construction contracts


   Not-to-exceed figure


Preventative Maintenance and Maintenance Inspections

l   Inventory of equipment and building

   Each item should be identified with brand name, serial and model numbers, and warranties.

   A service company should be identified for each mechanical system.

l   Determine what maintenance tasks are needed and how frequently.

PM (Continued)

l   Calculate time and money required

l   Schedule the tasks

l   Set up record keeping system for follow through and program evaluation (see Form 8.1)

l   Quality control inspections

Setting up a Cost Effective Maintenance Plan

l   Long-term plans

   Personnel shifting and cross-training

   Equipment replacement

l   Short-term plans

   Economic order quantities

   Theft control


l   Maintenance control programs

   Job orders

   Job control

Economic Order Quantities


l    Where:

    F= Fixed Cost of Placing and Receiving and Order

    D= Annual Expected Consumption

    C= Carrying Cost as a % of the Inventory Value

    P= Purchase Price Per Unit

Assumptions for EOQ

l   Usage is a constant rate

l   Delivery lead time is constant

l   Storage space is available

l   C includes Cost of Capital * Inventory Value +  Storage Cost

Sample EOQ Problem

l   Assume that the annual consumption of floor wax is 100 buckets.  Carrying cost is estimated to be 20%.  Price of a bucket of the floor wax is $100.   The cost of placing and receiving an order is $10.


 Energy management

l    Keep energy consumption records in energy units, not costs

l    Identify where energy is being used and, if possible, the energy rating of the items--eg. 100 Watt light bulbs: ten 100 Watt light bulbs use 1 Kilowatt of electricity per hour

l    Identify areas of opportunity to save

l    Identify alternatives for savings in each area

l    Analyze cost-benefit using life-cycle cost