Contract Maintenance

As an option to reduce plant costs, plant managers may consider contracting out maintenance work. This may have some merit, depending on many factors, including the nature of the business. One question that may be asked is, “Is maintenance a part of our ‘core business’?” Let’s look at a couple of examples. If the business is a hospital, where revenue is generated by the sale of medical services, and maintenance consists of a few specialized activities, such as janitorial, H&V system servicing, and repair of advanced medical diagnostic and monitoring systems, then contracting out these activities is almost certainly the best approach.