Types of AMC are discussed and how to manage them. Standard Operative clauses of AMC, General items which need coverage under AMCs and Advantages of AMCs are presented by Welingkar’s Distance Learning Division. For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/SldShrFunctMgmt Join us on Facebook: http://www.facebook.com/welearnindia Follow us on Twitter: https://twitter.com/WeLearnIndia Read our latest blog at: http://welearnindia.wordpress.com Subscribe to our Slideshare Channel: http://www.slideshare.net/welingkarDLP

1. Welingkar’s Distance Learning Division
CHAPTER-09
Managing AMCs
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2. Welingkar’s Distance Learning Division
Annual Maintenance Contracts
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These are executed for operative machinery, equipment
and some form of physical appliances only
While any machinery, equipment or appliance gets
released of its warranty, after a pass of assured time, the
manufacturer initiates proposal for an AMC which will
become like an extended warranty
In India, AMC concept is still under development
Certain AMC packages are designed by the Servicing
Agencies, with economically viable slots for paying visits
to the customer
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3. Welingkar’s Distance Learning Division
Types of Annual Maintenance Contracts
• Comprehensive AMC
• Consumables
• Service AMC
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4. Welingkar’s Distance Learning Division
Standard Operative clauses of AMC
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Period of AMC
Type of AMC
Time limit for response to a service complaint
Service on Sundays and holidays
Service during late or odd hours
Terms of payment
Discount in case of major break downs
Schedule of payments
Penalty clauses, for lapses or delays
Exit clause
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5. Welingkar’s Distance Learning Division
General items which need coverage under AMCs
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Air conditioning
D.G. sets
Compressors
Xerox machines
Computer systems and peripherals
EPABX & communication systems
Miscellaneous service contracts
UPS
Pest control
Fire fighting equipment
HT maintenance
DM plant
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6. Welingkar’s Distance Learning Division
Advantages of AMCs
• A skilled and knowledgeable technician is capable of
maintaining the machinery and equipment covered under
AMC in a better way
• The life span of the machinery increases and minimizes the
wear and tear
• The loss of production of machinery is minimized, this adds
value by reducing the cost of production indirectly
• The costs of employing highly skilled personnel for maintaining
every machinery will be reduced under AMC
• Specialist attending on behalf of the AMC takes relatively
much less time for trouble-shooting, which is again a big
adventure
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