VALUE DELIVERED

 This contract began under a fast-track timeframe, with only 6 months between first discussions and contract start-up, and Viox delivered a rapid transition that has led to service excellence— measured in quality assessment scores that continually exceed 90%.

Cost savings of 12.5% and 14.1% were delivered in the first and second years of this contract respectively, jumpstarted by the creation of detailed cost tracking reports to quickly identify savings opportunities. In addition, Viox performed a consolidation of the vendor base from 1,500 suppliers to less than 100, thereby leveraging purchasing power and streamlining account processing.

The contract’s design has the ability to adapt rapidly in anticipation of heavy truck market fluctuations and has enabled ArvinMeritor with the flexibility to respond to changes in their business sector.

CLIENT OBJECTIVES

In the highly competitive and cyclical automobile parts manufacturing business, ArvinMeritor needed to find a facility management firm to drive standardization and cost savings— and the ability to quickly adjust spending during cyclical business periods.

Specifically, the company sought to reduce costs, accurately track facility management costs, leverage corporate spending, consolidate the vendor base, and increase spending with minority firms.

Prior to outsourcing, facility maintenance was controlled on a plant-by-plant basis. Seventy percent of the work was completed by specialty suppliers and 30% by ArvinMeritor employees. Plants included both union and merit shop work forces.

EMCOR SOLUTIONS

Viox worked alongside ArvinMeritor’s corporate leaders to develop processes that benchmarked current costs and projected savings from the integration of facility management. Detailed cost tracking was initiated to account for spend by facility, operation/commodity, square foot, and percentage of plant sales. Using this information, key performance matrices were developed under a fee-at-risk contract structure.

During a successful transition, all major initiatives were fully implemented in 90 days. This included the computer maintenance management system (CMMS), Preventive Maintenance program, centralized purchasing, standardized scope, on-call dispatching, and detailed budget-to-actual reports.

BACKGROUND

ArvinMeritor, Inc. supplies a range of integrated systems, modules, and components to the motor vehicle industry worldwide. With thirty-seven locations in North America and Canada, their facilities include manufacturing, assembly and office/research facilities. Currently employing more than 27,000 people, ArvinMeritor was founded in 1921 and is headquartered in Troy, Michigan.

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Copyright 2004, EMCOR Group, Inc., All Rights Reserved

MANUFACTURING/INDUSTRIAL

AUTOMOTIVE

OPERATING COMPANY:
Viox Services, Inc.

SCHEDULE:
2001 to present

COST:

	New Construction
	Retrofit
	Electrical Construction
	Mechanical Construction
	Facilities Services
	Consulting Services

For over half a century, Viox Services has established the business relationships necessary to deliver timely and successful construction projects to new markets.