Functional Administration

Chapter 9

Annual Maintenance Contract

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In today’s competitive era, quality is a prime factor.
Quality output from any machine depends on
machine's repeat performance.
To get repeat performance, machine maintenance
is a key factor.
e.g. maintenance of machines with Computerized
Numerical Controls requires special skills. Every
organization may not have specialized CNC
maintenance team to take care of all variety of CNC
machines. CNC machine manufacturers are the
best people to support in maintaining these
machines as total technology is available with
them.
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In order to help our customers in getting the best
throughput from the machine, product manufacturers
have introduced the concept of
Annual Maintenance Contracts.

Annual maintenance contracts are executed for

operative machinery, equipment and physical
appliances.
While the machinery, equipment or appliance gets
released of warranty, the manufacturer initiates proposal
for an AMC which becomes like an extended warranty
with fresh terms.
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If the customer calls a service engineer every time as an
independent call for a breakdown or preventive
maintenance, it turns out to be expensive.

AMC proves to be an economical option for the

customer.

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Annual Maintenance Contract signed between a
customer and product manufacturer / service center
allows regular checkups and routine work to keep the
performance and quality of the products in good
condition every year.

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Types of Annual Maintenance Contracts (AMCs):
Depending upon the product you own, product
manufacturer / service center offer different types of
AMC contracts.
You can choose the contract based on your regular
product usage requirement and the stress it undergoes.

The most common types of AMCs are:

-Comprehensive+ labor AMC
-Labor only AMC
-Labor+ spare parts to a fixed amount
-AMC with rubber and plastic parts
-AMC without rubber and plastic parts
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Advantages of registering for an
Annual Maintenance Contract:
-Saves from unexpected repairs and avoids cost for these
repairs
-Round the clock service from qualified technicians
-Planned services for your products
-Genuine spare parts for high reliability

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Generally every product is provided with the warranty
for fixed period of time after the product is purchased.

Whenever the warranty for the product expires,

customers should call the customer care number of the
company, in order to buy AMC for their products for
some more years.
These AMCs are charged by the company depending
upon the type of AMC you select to buy from them.

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TYPES OF AN ANNUAL MAINTENANCE CONTRACT
SERVICES
There are two types of Annual Maintenance Contracts:
1) Comprehensive AMCs and 2) Non comprehensive/Call
basis AMCs.
COMPREHENSIVE AMCS are again divided into two
parts:
-One, which includes repair and replacement of the
faulty PC parts for a lump sum price. Here, you are not
charged separately for the labor or for the parts
replaced, and
-The other type of comprehensive AMC does not include
replacement of parts. It does not charge for the labor
but the owner has to pay the actual price for the parts
replaced. 9
NON COMPREHENSIVE AMCs

One has to pay for both the repairs as well as the

replaced parts.

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AMCs can also be divided into 'On site' and 'Carry-in'
AMCs.

Under 'On-site AMCs' the service engineers themselves

come to your residence or office and do the repairs or
carry the defective piece with them to the workshop and
bring it back when it is repaired.

Under 'carry-in' contracts, you have to carry the faulty

machine to their service centre and get it repaired.

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AMC CONTRACT FEATURES:
Preventive Maintenance:
Any electronics product required timely service so that
your systems will function properly. Every month our
Engineer visits once apart from any problem and routine
Preventive maintenance.
Standby Support:
If any of your parts are not working and it has to take to
Service Centre. We will be providing Standby support. So
that breakdown time of your Machine is minimum.
Residence Engineer:
If you have more than fifty machines we will be
providing you residence Engineer.
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Benefits of AMCs
Benefits of AMC: Part 1
Confirmation of satisfactory trouble shooting
The service engineer / technician attending the routine
servicing or complaint call raises a document mentioning
the number of service, the problem attended,
rectification details, suggestions and tips for better use in
future.
He takes the acknowledgement with seal from the
customer.
At the end of the trouble shooting, the technician holds
a closing meeting with the customer.

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Benefits of AMC: Part 2
Periodic review of the AMCs:
Representatives of the customer and the manufacturer
fix up review meetings periodically to review satisfactory
performance of the AMC, solve any problems or
deficiencies with an intention to systematize the AMC for
the desired purpose.

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Advantages of AMCs:

1. A skilled and knowledgeable technician is capable of

maintaining the machinery and equipment in a better
way since he is having a continuity of the maintenance
job.
2. The life span of the machinery increases, and wear
and tear is minimized.
3. Machine downtime is minimized.
4. It is economical for the customer.

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THANK YOU

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