Executive Course

Seminar Content

1st Hour	*WHY NONLINEAR O&M BUDGETS FAIL* Computing the "True Risk/Reward Ratio for Deferring maintenance" & "Inverse-Square Rule for Deferred Maintenance" If a part is known t be failing, but left in service until the next level of failure, the resultant expense will be the SQUARE of the primary failure part. A study of this rule demonstrates that the true risk/reward ratio for deferring maintenance is not 2:1 or 5:1 but over 40:1. Understanding the true cost of deferring maintenance and how the "Inverse-Square Rule" takes over a maintenance effort and wrecks operational plans and creates safety issues.
2nd Hour	*WHAT TRIGGERS THE O&M BUDGET FAILURE* We examine nonlinear, dynamic systems and prove why it is not possible to predict future performance in nonlinear systems. We then apply this knowledge to the budgeting techniques used today. The existing MBA budgeting techniques, that work so well in every other aspect of business, are actually creating budget failures and causing operational, maintenance, and safety problems when applied to nonlinear systems. Understanding which O&M functions are nonlinear explains most budget failures and lights the path to a better technique for O&M funding.
3rd Hour	*SELF-FINANCING PLAN FOR MAINTENANCE IMPROVEMENT* When you attempt to force O&M spending into specific lumps of time (Budgeting) that does not meet the minimum needs of the process, it triggers the "Inverse-Square Rule for Deferred Maintenance" and the budget will fail exponentially. Our new philosophy for managing O&M is a simple redirection of certain organizational resources at a specific time to create enough financial leverage to create a positive cash flow and recoup enough maintenance man/hours to create a recovery and improvement that is self-financing.
4th Hour	CREATING A "CORPORATE MEMORY" FOR O&M - How to remember "lessons learned" across multiple fiscal periods, turnover in technical personnel, and changes in leadership.
Lunch	*Provided*
Afternoon	*OPTIONAL WORKSHOP OR DISCUSSION GROUPS*

Executive Solutions to Nonlinear Operations, Maintenance & Safety Challenges

Executive Solutions to Nonlinear Operations,
Maintenance & Safety Challenges