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Monday, December 7 • 11:15am - 12:00pm
LZ21 - Managing Risk Associated with Contractor-Based Lubrication Services

Contractor-based machine lubrication programs are very popular in mining and heavy industry in Australia, India and Brasil, and contractor lead programs are growing in popularity in North America. 

 As management loosens the in-house reigns on this important daily routine in favor of a contractor-administered plan there is a possibility that the long term mechanical fitness of production machines could degrade.  The unfortunate outcome could be rapidly escalating mechanical repair costs in years two and three of the contract term. 


Alternately, this is a possibility that mechanical repair costs can be substantially reduced in years two and three if the set-up and execution of the administration of the program is done thoroughly, and with a high degree of Precision. 


How can management minimize the risk, and maximize the potential benefit?


Four mistakes are common with regard to the current state-of-the-art for contracted machine lubrication activities. They are:

  1. The work to be done is not precisely identified.
  2. The schedule for executing the work is not precisely identified.
  3. The means for tracking the execution of the work is not adequate.
  4. The contractor and machine owner lack the right verbiage in the contract to protect the interests of both parties


This presentation will explore each of these issues in some detail, and suggest remedies to these challenges to enable a highly desirable outcome for contractor-admistered machine lubrication activities.

avatar for Mike Johnson

Mike Johnson

Precision Lubrication Services

Monday December 7, 2015 11:15am - 12:00pm
Estero C