It is a schedule wise preventive maintenance process of equipments that includes breakdown equipment spare parts replacement, engineering and labor charges. It includes prompt services conducted by the company or service provider’s.
It consists of fixing and replacement of the defective. In an agreement there are facilities like cost reduction etc.
Comprehensive Maintenance is more expensive than Annual maintenance, as there are spares costs involved. In this contract the maintenance costs have been reduced. Comprehensive maintenance contract (CMC) generally covers IT support and sometimes replacements as well.
It is basically a contract for maintenance over a period of 1 year. A manufacturer provides the service on its own or with the assistance of service providers through it. This can go up to three years or five years depending upon the understanding of the two parties.
In AMC the service providers only provides business support .The payment for each portion has been calculated under AMC. Sometimes few parts are being replaced by service engineer and the minimal parts are being replaced in the AMC contract.
It is an agreement between a service provider and an organization in need of those services for repair and maintenance of the particular things of the company. The service can be about any type of property being owned by the company, such as the large manufacturing machines that creates the products, computers, printers or other devices being used in the offices, building, the land, parking lots, etc. The organizations that are improving daily operations generally have AMC to ensure quality of product and processing speed.
For long term high quality output from any manufacturing unit depends on the machine’s capability for long-term repeat performance. Here the key for quality performance is regular machine maintenance. The business houses want the best professional personnel with the most expertise and experience to ensure the smooth operation of the machine.
Generally the annual maintenance contract include services such as support,
Comprehensive / Non-Comprehensive Periodical Maintenance
Comprehensive Maintenance consists of the preventive measures that are being taken care in the maintenance process of the equipment, such as replacement of equipment spare parts that has been broken down, engineering and labor charges. Where as
Non-Comprehensive Maintenance consists of the preventive measures that is being taken care in the maintenance process, such as engineering and labor charges. The breakdown equipment spare parts replacement is being charged separately upon customer confirmation.
The operational flow of such maintenance process
- Maintenance check list will be produced.
- Maintenance schedule will be planned according to the Maintenance Contract.
- The technical team will take care of the routine maintenance service such as system & equipment operation checking, system software operation checking, equipment physical cleaning along with software cleaning
- Data will be backed up accordingly.
The agreement to maintain property is and most AMCs and CMCs contains following provision:
- Name and address of parties
- Details of equipment under the contract
- Expectations (number of visits)
- Comprehensive or non-comprehensive
- Payment terms
- Penalty clause
- Termination of contract
- Signature and seal
To cancel an AMC, the company in the contract sends a maintenance contract cancellation letter to the service provider. This official document ends the relationship between the two parties. But before sending this official letter, the company should, as a professional courtesy, let the service provider know why and how they are not meeting the promised expectations for canceling the AMC.
Comprehensive Maintenance Contract (CMC)
It includes prompt service for repairs and replacements of non operable parts or machines. It costs more than an AMC, as it includes the costs of the replacements along with the maintenance service.
Computerized Numerical Controls (CNC)
It is a special technique to maintain machines .The maintenance of machines with computerized numerical controls (CNCs) requires special skills to maintain it. When a company does not have in-house specialized CNC maintenance team they generally go for AMC with CNC to take care of all variety of CNC machines.
- Software updates/upgrades are continuous for ensuring optimal performance and productivity.
- Cost effective maintenance for purchasing and functioning for long-term basis.
- It requires expert professionals with strong knowledge base.
- Preventative maintenance.
- Quick response to the system or mechanical breakdown.
- Continuous servicing increases the longevity of hardware and software.
- No coverage lapses
- No extra cost on hourly charges for the service.
- It maintains the company compliance and on proper time.
Aspects for payment:
The companies and service provider’s needs to follow some aspects to consider choose to structure annual and comprehensive maintenance contracts. This is generally negotiated between both the business and the service provider. The pricing can be of single parameter or using a hybrid model based. The aspects that two parties follow to decide the pricing are as follows:
The pricing depends on the timeline of the contracts, such as hourly rate based or weeks, months, days, based etc. When the unit price is being fixed, it is being calculated annually for the total number of hours.
The pricing depends on the line-item cost for each device or piece of equipment that will be covered under the contract.
Contacts cost can also be based on the expected lifetime of the device or equipment that is being covered.
Replacement or Repair:
Contract costs may differ based on the type of service offered, such as for equipment replacement it’s different and for repairing it’s different.
Sometimes the contracts may have some additional conditions based on the nature of the services being provided, such as transportation of replacement parts. This thing affects the cost incurred in the contract.
Benefits of annual maintenance contract:
Benefits are different for service providers and for the customers.
It makes the annual planning and budgeting easier for the customers. Both the parties can estimate the calculate service requirements, estimated downtime, hours of operation, and much more, Where the customers can omit the unexpected maintenance and repair costs.
The detailed analysis gets a deeper picture for understanding the scheduling and hiring needs. The customer gets an overview about the year, and can handle it in better way by pre-arrange the technicians’ schedules.
The service providers gain a deeper understanding about the client’s ongoing support requirements. This way the companies can build better, longer-lasting relationships to create better contracts and can offer better services.
It ensures the standardized quality of work across that time period.
Customers can always have emergency support and their needs covered.
The customers can benefit from having regular maintenance that is planned ahead of time.