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Welingkar’s Distance Learning Division

CHAPTER-09

Managing AMCs

We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division

Annual Maintenance Contracts
•

•

•
•

These are executed for operative machinery, equipment
and some form of physical appliances only
While any machinery, equipment or appliance gets
released of its warranty, after a pass of assured time, the
manufacturer initiates proposal for an AMC which will
become like an extended warranty
In India, AMC concept is still under development
Certain AMC packages are designed by the Servicing
Agencies, with economically viable slots for paying visits
to the customer
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division

Types of Annual Maintenance Contracts
• Comprehensive AMC
• Consumables
• Service AMC

We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division

Standard Operative clauses of AMC
•
•
•
•
•
•
•
•
•
•

Period of AMC
Type of AMC
Time limit for response to a service complaint
Service on Sundays and holidays
Service during late or odd hours
Terms of payment
Discount in case of major break downs
Schedule of payments
Penalty clauses, for lapses or delays
Exit clause
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division

General items which need coverage under AMCs
•
•
•
•
•
•
•
•
•
•
•
•

Air conditioning
D.G. sets
Compressors
Xerox machines
Computer systems and peripherals
EPABX & communication systems
Miscellaneous service contracts
UPS
Pest control
Fire fighting equipment
HT maintenance
DM plant
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division

Advantages of AMCs
• A skilled and knowledgeable technician is capable of
maintaining the machinery and equipment covered under
AMC in a better way
• The life span of the machinery increases and minimizes the
wear and tear
• The loss of production of machinery is minimized, this adds
value by reducing the cost of production indirectly
• The costs of employing highly skilled personnel for maintaining
every machinery will be reduced under AMC
• Specialist attending on behalf of the AMC takes relatively
much less time for trouble-shooting, which is again a big
adventure
We Learn – A Continuous Learning Forum

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Managing AMC's

  • 1. Welingkar’s Distance Learning Division CHAPTER-09 Managing AMCs We Learn – A Continuous Learning Forum
  • 2. Welingkar’s Distance Learning Division Annual Maintenance Contracts • • • • These are executed for operative machinery, equipment and some form of physical appliances only While any machinery, equipment or appliance gets released of its warranty, after a pass of assured time, the manufacturer initiates proposal for an AMC which will become like an extended warranty In India, AMC concept is still under development Certain AMC packages are designed by the Servicing Agencies, with economically viable slots for paying visits to the customer We Learn – A Continuous Learning Forum
  • 3. Welingkar’s Distance Learning Division Types of Annual Maintenance Contracts • Comprehensive AMC • Consumables • Service AMC We Learn – A Continuous Learning Forum
  • 4. Welingkar’s Distance Learning Division Standard Operative clauses of AMC • • • • • • • • • • Period of AMC Type of AMC Time limit for response to a service complaint Service on Sundays and holidays Service during late or odd hours Terms of payment Discount in case of major break downs Schedule of payments Penalty clauses, for lapses or delays Exit clause We Learn – A Continuous Learning Forum
  • 5. Welingkar’s Distance Learning Division General items which need coverage under AMCs • • • • • • • • • • • • Air conditioning D.G. sets Compressors Xerox machines Computer systems and peripherals EPABX & communication systems Miscellaneous service contracts UPS Pest control Fire fighting equipment HT maintenance DM plant We Learn – A Continuous Learning Forum
  • 6. Welingkar’s Distance Learning Division Advantages of AMCs • A skilled and knowledgeable technician is capable of maintaining the machinery and equipment covered under AMC in a better way • The life span of the machinery increases and minimizes the wear and tear • The loss of production of machinery is minimized, this adds value by reducing the cost of production indirectly • The costs of employing highly skilled personnel for maintaining every machinery will be reduced under AMC • Specialist attending on behalf of the AMC takes relatively much less time for trouble-shooting, which is again a big adventure We Learn – A Continuous Learning Forum