IPEMAN 2015: In-house Maintenance - An Economic Alternative in an Outsourced World
Introduction
At IPEMAN 2015, we presented research examining the economic advantages of maintaining in-house maintenance capabilities in underground mining operations, challenging the prevalent trend of outsourcing maintenance services.
Benefits of In-house Maintenance Control
Several key advantages were identified for maintaining internal maintenance capabilities:
- Direct control over maintenance quality and scheduling
- Faster response times to equipment failures
- Better integration with operations planning
- Development of institutional knowledge
- Enhanced cost control and transparency
Impact on CAPEX and MDO Models
The research analyzed how equipment capital expenditure (CAPEX) influences Mining Development and Operations (MDO) models when considering in-house maintenance:
- Initial investment considerations
- Long-term cost implications
- Equipment lifecycle management
- Maintenance staff training requirements
- Infrastructure needs
Economic Analysis
The presentation included detailed cost comparisons between:
In-house Maintenance
- Fixed labor costs
- Training and development expenses
- Equipment and tools investment
- Spare parts inventory management
- Infrastructure requirements
Outsourced Services
- Contract costs
- Response time implications
- Quality control challenges
- Knowledge retention issues
- Dependency risks
Practical Implementation
Key recommendations for implementing in-house maintenance programs:
- Phased transition approach
- Staff development strategies
- Equipment monitoring systems
- Inventory management procedures
- Performance metrics tracking
Conclusion
The analysis demonstrated that while in-house maintenance requires significant initial investment, it often provides better long-term economic benefits and operational control for underground mining operations. The key is finding the right balance between in-house capabilities and strategic outsourcing based on specific operational needs.