Developing Fixed-Fee Seal Agreements To Improve Pump Reliability

Abstract

Long-term contractual agreements between a mechanical seal supplier and an end-user have proven to be a very effective method for improving equipment reliability. Successful agreements change the focus of a user/supplier relationship from a purchasing function to asset management using a team approach with common goals: • Increase equipment reliability. • Reduce equipment and seal life-cycle cost (LCC). • Increase onsite reliability support. • Provide mutual financial benefit to both the user and supplier. The goals of any agreement must be aligned and the structure must be properly established to achieve maximum benefit. Furthermore, a clearly understood win/win approach must be developed and maintained in order for any agreement to succeed.