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IN-SOURCING MAINTENANCE REDUCES COSTS BY 25%

Updated: Dec 14, 2020


Contributing Re.engineer: ​Shadrach Stephens

CHALLENGE A non-profit organization was expanding at a tremendous rate, however with the addition of more physical assets, they would need a robust, cost effective approach to maintaining their buildings, equipment, and infrastructure.


Their capital development plan included building a $6.5 million community center and adding satellite facility to complement their current location. The challenge with this plan is that the operational & maintenance cost would significantly increase due to the additional square-footage. Their current location was maintained by external service providers, which is typically a low-cost solution versus hiring in-house staff, however with adding complex equipment such as an elevator, several commercial air handlers & condensers, restaurant equipment, and the supporting electrical distribution system, their future cost came with an expensive multiplier.


SOLUTION By analyzing the historical operations and maintenance expenses, the team was able to identify cost opportunities. Through this data mining exercise, they identified where they could 1) negotiate lower cost structures for some of their service providers, 2) optimize their work processes, and 3) in-source some of the non-critical maintenance activities.