Frontline Maintenance Re-Strategy: Perspective of Cost-Benefit Analysis

Abstract

Effective August 2021, Malaysia Assets Reset has launched Clustered Maintenance Planning and Execution (CMPE) department towards value focused asset management. To align with the department aspiration to continually generating optimum cashflow as well as staff upskilling, this study focuses on one of CMPE key result areas, with its main objective is to steer frontline maintenance work practice to value-generation perspective. Cost-Benefit Analysis (CBA) process is used in this study to analyze which maintenance tasks to proceed and which to forgo. It is performed by comparing the cost of frontline maintenance versus outsourcing for a maintenance task over a period of time. Elements taking into consideration for the cost calculation are materials, special tools, additional cost required to ensure internal resources competent to perform the job, outsourcing contract rate (on annual basis), and logistics associated costs. Currently, CBA assessment has been performed by CMPE on 15 potential maintenance tasks which was previously executed via outsourcing. Based on the cost saving/cost incurred derived from Frontline Maintenance versus outsourcing, 14 of the tasks are classified as cost-effective. Taking into consideration of clustered planning and scheduling, each planner are required to further assess on the perspective of manpower availability and re-strategize on manpower arrangement to execute the maintenance task via frontline maintenance. This CBA assessment not only resulted to an increase of 29% total planned frontline maintenance activities in 2022 versus pool of activities performed in 2021 but also contributed to additional technical skill sets to perform value-added maintenance tasks. The assessment via CBA has added value-generation perspective in identifying cost-effective and feasibility of the activities selected. By performing this study, it has supported towards achieving the company End State Aspiration.