Contract Performance Monitoring

Where a contractor has obligations to achieve performance levels for availability, it is a pre-requisite that a mechanism be in place to accurately monitor the contractor’s performance against the required standard. Such a measure is the Demand Satisfaction Rate, whereby the contractor is required to make a replacement available to satisfy a demand being placed by the customer within a specified time period.

The ability to provide the required availability performance may be affected by events outside the contractor’s control adversely affecting their ability to turn items round in the repair loop at the optimum rate, e.g. the customer not returning the unserviceable item in a timely manner. In such cases, potential penalties need to be appropriately reduced by recording the date and time at which significant events take place which could affect performance one way or the other.

LSC Group has the capability of supporting such a contract with a version of its Repairable Asset Management System (RAMS). The date and time of the demand being placed is recorded, together with the date and time of the replacement item being made available. From the moment the unserviceable item is receive onto the system, each transaction involved in moving the item through the repair loop is recorded, including the date and time of the transaction. This enables determination of all delays in the system, and thus defines responsibility for the delay. From this information, the contractor’s performance can be quantified and compared with the contract performance criteria in the application. A report indicates the overall performance of the contractor during the payment period, and forms the basis on which payments are made.