Operation & Maintenance – How to go about?

March 27, 2015

With the Construction Phase over and getting into Commercial Phase of Operations. There is always dilemma what methodology to use to start the Operations. The same might be useful to Concessionaires to make up their mind and decide the best methodology to go forward with.

Have listed the options available as of today with the knowledge and experience gained form industry with their pros and cons.

OMT Operator
Professional Man Power Vendors
Man Power Vendors
In House

Option

Pros

Cons

OMT Operators

Strong Process

Professional Approach

Can attract talent to be part of the team.

Takes complete responsibility.

Mobilize team quickly.

Very useful for setting new set up.

Works on SOP.

All statutory compliance adhered to

Complete management of manpower, materials, and processes required for day to day O&M .

No chance of union being formed.

The team of SPV can focus on major issues on how to enhance the revenue rather than handling the hassles of day to day operations.

Single point of contact. Thus vendor management easy

Where the organization is set up and process quite good as per the industry standards, will not be of much use.

Might have SLA but the value associated with the same is not much to ensure that they take the extra effort.

Duplication of roles – Even if given OMT we will still require certain critical positions like – Project Manager, Plaza Manager. Toll Supervisor, Maintenance Manager, Safety Manager.

On the expensive side.

Professional Man Power Vendors

All statutory compliance adhered to

Complete management of manpower, materials, processes required for day to day O&M at site

Most of the team working with them works as a long term relationship.

Since only blue collar level profile outsourced hence no duplication of roles.

Less expensive compared to OMT operators.

Follow instructions.

Since they prefer in not hiring locals hence the chance of the team forming nexus with the locals is reduced.

No chance of union being formed

The team of SPV can focus on major issues on how to enhance the revenue rather than handling the hassles of day to day operations.

Single point of contact. Thus vendor management easy

Do not take owners ship.

Not strong in handling locals.

Training will be needed to be imparted for the team which joins.

Slightly on the expensive side compared to other manpower vendors.

Man Power Vendors

Manpower out sourced.

Low at cost.

No need to worry about hiring or firing of an employee.

No chance of union being formed

Since only blue collar level profile outsourced hence no duplication of roles

Not confident in handling statutory compliance.

No sense of responsibility

No training imparted to staff

Usually hires locals. Thus chances of nexus high

SPV team will be involved in day to day operations.

In House

Can get our SOP implemented with ease.

The team works with the aim to grow with the organization.

Loyalty with the organization is there.

Complete management of manpower, materials, and processes required for day to day O&M at site.

More control over the team.

Works out economical.

Chances of forming union are high.

The majority of time will be utilized in

Hiring , Training

Handling the day to day shift operations.

Will have to handle all statutory compliance on own.

About the Author : Nipun soni is a Management Graduate with over 16 years of experience and in depth knowledge of BOT plus front line experience of toll operation, sales and customer service. He is known for his involvement in following projects:

Led the mobilization team for 4 BOT Projects plus set the system and procedure for the biggest Point of Sale Operations in India at Delhi Gurgaon Super Connectivity Ltd.
Set up and mobilized the operations for Multi-Level Car Parking ( capacity of 4300 cars ) in Delhi International Airport .
Also involved in setting up SOP and ensuring the implementation of the same across various concessionaires

He have also been involved in Setting up of establishments, right from back end to front end to delivery i.e. Equipment Design, Procurement to Installation and Commissioning of the Project .Involved in starting Commercial operations and stabilizing Operations and Maintenance and meeting expectation of the Management with Optimization of Revenue while maintaining good health of Project and good relations across with the Client and Customer while meeting all social obligations.

Written by ITW Editor · Filed Under About, Planning