Service Contract Options For Capital Equipment

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A comprehensive overview of equipment maintenance choices available to the manager of a modern Analytical Laboratory. However, many of the items discussed are applicable to all capital equipment.

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Service Contract Options For Capital Equipment

  1. 1. Almost  Everything  You  Wanted  to  Know   About  Service  Op=ons     Dec.  2008  -­‐  NE  ALMA  Chapter   Sam  Klaidman     (sam@middlesexconsul=ng.com)   Principal  Adviser   MiddlesexConsul=ng   508.877.1924   @SKlaidman   © 2008 Middlesex Consulting . All Rights Reserved
  2. 2. Due  to  economic  condi=ons  he s   OUT!!   © 2008 Middlesex Consulting . All Rights Reserved
  3. 3. He’s  In!!  © 2008 Middlesex Consulting . All Rights Reserved
  4. 4. Introduc=on  •  Nov./Dec.  2008  Lab  Manager  magazine  -­‐   tough  =mes  &  your  lab  •  Next  topic  today  is  Outsourcing   –  Cope  with  tough  =mes   –  Deliver  addi=onal  services   –  Sell  your  excess  capacity  •  This  talk  is  about  balancing  $  and  up=me  -­‐   important  for  both  subjects   © 2008 Middlesex Consulting . All Rights Reserved
  5. 5. When  Selec=ng  Equipment  Consider    •  Do  the  job?  •  Easy  to  use?    •  Reliable?  •  Cost?  •  Service?  •  Total  rela=ve  Life=me  Cost  of  Ownership  -­‐   choices  make  this  hard!   © 2008 Middlesex Consulting . All Rights Reserved
  6. 6. Developing  Your  Maintenance  Strategy     (Item-­‐by-­‐item)  Balance  $  and  Up=me   –  How  oben  fail?   –  Who  maintains  stuff?   –  Maintenance  costs?   –  How  much  risk  can  you  &  your  business   tolerate?   © 2008 Middlesex Consulting . All Rights Reserved
  7. 7. Who  Maintains?  •  OEM   –  Contract   –  T  &  M  •  Third  Party   –  Smaller  -­‐  independent   –  Larger  -­‐  mul=-­‐vendor  •  Self   –  Lab   –  Facili=es  maintenance  •  All  or  mix  and  match?   © 2008 Middlesex Consulting . All Rights Reserved
  8. 8. Other  Choices  •  Who  manages  maintenance?   –  You/your  company   –  Independent  asset  manager  •  Who  carries  the  financial  risk?   –  You/your  company   –  Insurance  company  •  Decide  based  on  required  up0me  v.  $  risk   tolerance   © 2008 Middlesex Consulting . All Rights Reserved
  9. 9. Why  OEMs  Sell  Contracts  •  Profit  •  Customer  Loyalty  •  Predictability   –  Financial   –  Manpower  demand  •  Jus=fy  Re-­‐investment  in  Organiza=on   © 2008 Middlesex Consulting . All Rights Reserved
  10. 10. Why  People  Buy  Contracts  •  Up=me  •  Reduce  Hassle  •  Predictability  •  Peace  of  Mind   © 2008 Middlesex Consulting . All Rights Reserved
  11. 11. Decision  Tools  •  Policy  •  Weights  and  worth  •  Cost/benefit  analysis  •  ROI  calcula=ons  •  Your   gut   © 2008 Middlesex Consulting . All Rights Reserved
  12. 12. Other  Considera=ons  •  Include  maintenance  cost  in  Lab  hourly   rate?  •  How  important  is  up=me  to  Lab s   reputa=on?  •  How  important  is  OEM s  Applica=on   Support?  •  Cri=cal  or  specialized  instruments  needing   special  support?   © 2008 Middlesex Consulting . All Rights Reserved
  13. 13. Final  Thoughts  •  No  right  choice  for  all  equipment  or  all  labs  •  Think  before  signing  long  term  contract  -­‐   you  may  want  to  change  strategy  but  are   locked-­‐in  •  Lots  of  Choices  -­‐      •  Let s  talk  if  you  want  assistance   © 2008 Middlesex Consulting . All Rights Reserved
  14. 14. Any  Ques=ons?   Thank  You   © 2008 Middlesex Consulting Group. All Rights Reserved

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