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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
Due	
  to	
  economic	
  condi=ons	
  he s	
  
                  OUT!!	
  




               © 2008 Middlesex Consulting
                   . All Rights Reserved
He’s	
  In!!	
  




© 2008 Middlesex Consulting
    . All Rights Reserved
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
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
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
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
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
Why	
  OEMs	
  Sell	
  Contracts	
  
•  Profit	
  
•  Customer	
  Loyalty	
  
•  Predictability	
  
   –  Financial	
  
   –  Manpower	
  demand	
  
•  Jus=fy	
  Re-­‐investment	
  in	
  Organiza=on	
  


                  © 2008 Middlesex Consulting
                      . All Rights Reserved
Why	
  People	
  Buy	
  Contracts	
  
•    Up=me	
  
•    Reduce	
  Hassle	
  
•    Predictability	
  
•    Peace	
  of	
  Mind	
  




                       © 2008 Middlesex Consulting
                           . All Rights Reserved
Decision	
  Tools	
  
•    Policy	
  
•    Weights	
  and	
  worth	
  
•    Cost/benefit	
  analysis	
  
•    ROI	
  calcula=ons	
  
•    Your	
   gut 	
  



                     © 2008 Middlesex Consulting
                         . All Rights Reserved
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
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
Any	
  Ques=ons?	
  

  Thank	
  You	
  


 © 2008 Middlesex Consulting Group.
         All Rights Reserved

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Service Contract Options For Capital Equipment

  • 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. Due  to  economic  condi=ons  he s   OUT!!   © 2008 Middlesex Consulting . All Rights Reserved
  • 3. He’s  In!!   © 2008 Middlesex Consulting . All Rights Reserved
  • 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. 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. 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. 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. 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. 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. Why  People  Buy  Contracts   •  Up=me   •  Reduce  Hassle   •  Predictability   •  Peace  of  Mind   © 2008 Middlesex Consulting . All Rights Reserved
  • 11. Decision  Tools   •  Policy   •  Weights  and  worth   •  Cost/benefit  analysis   •  ROI  calcula=ons   •  Your   gut   © 2008 Middlesex Consulting . All Rights Reserved
  • 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. 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. Any  Ques=ons?   Thank  You   © 2008 Middlesex Consulting Group. All Rights Reserved