Initial Study Process

EQUIPMENT MAINTENANCE EXPENSE REDUCTION THE INITIAL STUDY

INITIAL STUDY The purpose of the Initial Study is to define the following:

1.What equipment is currently:

Serviced by Maintenance Agreements

On Time & Materials

Maintained by In-house Staff and to What Degree

2. For contracts/agreements in place, what are the terms, coverage's and exclusions, unique addendums, response times, department ownership, specific location, current baseline cost, etc…

3. Equipment under time & materials may be best served by remaining under time & materials or it could be an opportunity to cap over run expenses and place them either under a service agreement or an expense reduction program.

4. Understanding what equipment is serviced by any in-house personnel and their capabilities as well as limitations.

WHAT THE INITIAL STUDY ISN’T The Initial Study is not a sales meeting or presentation. We are simply on site working in the accounts payable area to define and confirm how your landscape of equipment is serviced and maintained. Our goal is to find a balance between cost reduction without jeopardizing your equipment uptime needs. We will then propose a new or improved equipment maintenance management delivery system which will reduce costs, add efficiencies and improve coverage’s.

WHAT WE NEED FROM YOU A commitment to the Initial Study process in terms of helping us find the data we came on site to study and analyze. Typically, most of the baseline data can be found in Accounts Payable with the contractual documents residing possibly within purchasing or at the department level. We need to understand how vendor files are organized and have access to a work space and copier. Before we leave we will ask to sit down with Finance and Purchasing to have a brief exit interview showing you what we gathered and confirming what you feel your needs and desires are for your own equipment maintenance cost reduction initiative. As many features and value adds are elective, you will have an active role in designing your own program.

WHAT DO WE ANALYZE? The general areas included in the Initial Study are:

All Equipment Under a Maintenance Agreement

Owned versus Leased Equipment

Equipment Under Warranties

Equipment to be Purchased This Fiscal Year

Current Quotes for Maintenance Agreements That Have Not Yet

Been Accepted

NEXT STEPS

Prior to beginning the Initial Study, the following points should be

addressed:

Execute appropriate Confidentiality/Nondisclosure Agreements

Select a date when the Initial Study can begin (assume 1-3 days of our staff or person being on site)

Notify appropriate department personnel about the Initial Study and that their cooperation will be greatly appreciated

If vendor list can be generated specific to which vendors are under contract for equipment maintenance, please forward it to us prior to our arrival

Contact – Jim Caughey, Senior Vice President Insurance Strategies, Inc. 500 Elm Grove Road, Suite 101 Elm Grove, WI 53122 800-236-6866 office 262-993-1643 cell [email_address]