Machinery Lubrication magazine published by Noria Corporation
Issue link: https://www.e-digitaleditions.com/i/108300
The Risks of Outsourcing The results of a recent global study revealed the concerns, effectiveness and best practices in risk management by organizations that outsource projects. Of the 95 percent of organizations that buy, provide or both buy and provide outsourced services and functions, fewer than half are able to effectively manage risk of outsourced projects. Managing product or service quality is the top outsourcing risk to organizations, identiļ¬ed by 70 percent of those responding to the survey. Survey respondents included contractor managers, subcontractor buyers, project managers, senior executives and key decision-makers in outsourcing from a wide range of industries and governments in North and South America, Europe, Asia, the Middle East and India. The study was conducted by ESI International. failure. It is determined that the failures are caused by a lack of fluid cleanliness. Contaminated oil due to poor storage and handling practices, along with improper equipment configuration and design (particularly breathers and filters), led to reduced hydraulic pump and valve life as well as significant downtime. The company acknowledges the poor lubrication practices and infrastructure (storage room or lack thereof) as the primary root cause of the failures and decides to outsource the lubrication program to remedy the situation. With no revision made to correct the root cause (contaminated oil through storage and handling), there likely will not be any improvements while the contract technicians are at the helm. In this case, the labor is not the problem, and outsourcing is not the solution. This example illustrates the limitations of outsourcing when the decision is based on the belief that "we can just pay them to do it while we focus on our core competencies." Although it is true that the skills and motivation of the technician can have a tremendous effect on the success of the program, a great tech in a poor program is still destined to fail. Therefore, I contend that until the lubrication process and program (or any maintenance activities for that matter) have been properly designed and developed, the staffing of these roles should not be outsourced. There must be a plan in place and procedures to follow along with ownership and accountability. Then, and only then, will you have given your program a chance to succeed whether staffed internally or outsourced. Outsourcing is here to stay. It has become the new model. However, it can also have many potential pitfalls. To avoid them, make sure your company and the firm you have chosen have similar goals and values. When what they believe is in perfect alignment with what you believe, the probability for success is much greater. For it to work, top management must be fully onboard and be able to recognize problems early on so they can be corrected with little disruption to the ultimate plan. Proper machinery lubrication is not something at which you can just throw a warm body. Given the serious reliability implications, the work demands a true lubrication professional with the proper skills to get the job done. Under the right circumstances, when a company outsources lubrication to create value and competitive advantage, not just to cut costs or use as a Band-Aid for failing practices and infrastructure, it can be a winning strategy. It can even help encourage and nurture a best-in-class attitude throughout the company. About the Author Jeremy Wright is vice president of technical services for Noria Corporation. He serves as a senior technical consultant for Lubrication Program Development projects and as a senior instructor for Noria's Fundamentals of Machinery Lubrication and Advanced Machinery Lubrication training. He is a certified maintenance reliability professional through the Society for Maintenance and Reliability Professionals, and holds Machine Lubricant Analyst Level III and Machine Lubrication Technician Level II certifications through the International Council for Machinery Lubrication. Contact Jeremy at jwright@noria.com. www.machinerylubrication.com | January - February 2013 |9