MAINTENANCEMANAGEMENT

MAINTENANCEMANAGEMENT

JJ 616JJ 616JJ 616JJ 616

NOR HAFIDZAH BINTI MOHD HUSNIDecember 2012

SYLLABUS Maintenance Organization Maintenance Strategies System Approach to maintenance Maintenance Planning and Scheduling Computer Maintenance Management System

COURSEWORK Test (2) ~ 40% Quiz (2) ~ 20% Case Study (1) ~ 40%

MAINTENANCEMANAGEMENT

MAINTENANCEMANAGEMENT

JJ 616JJ 616JJ 616JJ 616Introduction to Maintenance

NOR HAFIDZAH BINTI MOHD HUSNIDecember 2012

Maintenance Management

Management characterises the process of leading and directing all or part of an organization, often a business one, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible).

The objectives of the MMS

Optimize the use of available funds, personnel, and facilities and equipment through effective maintenance management methods.

Provide accurate data for maintenance and construction program decision making.

Enable preparation of Service maintenance and construction budget requests using systematic and standardized procedures.

Monitor and document corrective actions, project expenditures, and accomplishments.

Objective and benefit of maintenance management

The main objectives of having maintenance management are to make sure a business doesn't stop producing, and if it does, to rectify the situation in the safest and most expedient way possible.

In addition, improperly maintained equipment can lead to safety hazards, employee abuse and misuse of machines that will lead to increased overhead costs and potential liability.

Costs of new equipment must be budgeted. Maintenance factors are part of the calculations done to consider return on investment when comparing costs and risks.

Maintenance

All actions necessary for retaining an item, or restoring to it, a serviceable condition, include servicing, repair, modification, overhaul, inspection and condition verification

Increase availability of a system

Keep system’s equipment in working order

Purpose of Maintenance

Attempt to maximize performance of production equipment efficiently and regularly

Prevent breakdown or failures

Minimize production loss from failures

Increase reliability of the operating systems

Principle Objectives in Maintenance To achieve product quality and customer satisfaction through

adjusted and serviced equipment

Maximize useful life of equipment

Keep equipment safe and prevent safety hazards

Minimize frequency and severity of interruptions

Maximize production capacity – through high utilization of facility Must be consistent with the goals of production

(cost, quality, delivery, safety)

Must be comprehensive and include specific responsibilities

Maintenance Process Description of the object condition-

The most important element in this area is the maintenance notification. This is used to describe the condition of the technical object or to report a malfunction at a technical object and request the damage is repaired.

Execution of maintenance tasks-The most important element in this area is the maintenance order. This is used to plan the execution of maintenance activities in detail, monitor the progress of work and settle the costs of maintenance tasks.

Completion of maintenance tasks-The most important element in this area is the maintenance history. This is used for long-term saving of the most important maintenance data. This data can be called up for evaluation at any time.

IMPACT OF POOR MAINTENANCE

MAINTENANCE ORGANIZATION

Type of maintenance organization

The selection of a particular type of system will largely depend upon the main structure of an industry. Maintenance organization can be of the following types:

Decentralized Centralized

In large size plants located at different places, inter unit communication is difficult.

The decentralized type of organization is best suited, which means that the maintenance organization works under the direct control of a chief engineer in-charge of production.

Under this type of organization, better coordination between production and maintenance groups is possible because of a common head of organization.

Decentralized

The advantages of such type of organization are: Speedy decisions due to better line of

communication under single control. Maintenance and production people

understand each other’s problems better because of their common goals.

Better training at the workers’ level can be arranged.

Decentralized (cont..)

Centralized

In a small factory where communication between the departments is freer, the centralized type of maintenance organization is preferred, which is placed under a chief maintenance engineer/manager.

The total responsibility of the maintenance function for the entire factory lies with the chief maintenance engineer.

Under this type of organization, the responsibilities and accountability of work must be properly specified for production as well as maintenance personnel to successfully meet the project goals.

If this is not taken care of, one department may blame other for any shortfall.

Masukan gmbr org, chart

Role/responsibility of Maintenance Organization

Maintenance Organization are responsible for : the safe and efficient operation of fixed and

rotational equipment under their span of control. ensuring that all systems of work are carried out

safely in accordance with regulatory and company policies and procedures.

ensuring that all replacement components are available and that all personnel under their management are competent.

Maintenance Plant Managers must also operate within a cost effective environment.

MAINTENANCE COST

Maintenance Costs

the costs associated with keeping an item in good condition by regularly checking it and repairing it when necessary

Source 0f Maintenance Cost

Down time (production loss) Overhead Losses of output Delayed shipment Scrap and rework

Types of Maintenance Costs

Cost to replace or repair Labor Hand tools, power tools and equipment Spare parts

Who will do maintenance?

In-house Out-source

Decision to out-source

Lack of expertise Too hazardous No experience Bound by contract Top management policy

Maintenance Costs

Figure 17.4 (a)

Total costs

Breakdown maintenance costs

Cos

ts

Maintenance commitment

Traditional View

Preventive maintenance costs

Optimal point (lowestcost maintenance policy)

Maintenance Costs

Figure 17.4 (b)

Cos

ts

Maintenance commitment

Full Cost View

Optimal point (lowestcost maintenance policy)

Total costs

Full cost of breakdowns

Preventive maintenance costs

Example

The record of computer breakdown for Company PCK for the past 20 months is shown below.

# of breakdown # of months breakdown occurs

0

1

2

3

4

8

6

2

Total 20

Each time computer breakdown – estimated loss is RM300

Contract preventive maintenance by company DK – RM200 per month

Should PCK contract out preventive maintenance to DK?

Solution

Step 1 Calculate expected number of breakdown (based

on past records) if the company continue without service contract.

Step 2 Compute expected breakdown cost per month with

no preventive maintenance contractStep 3 Compute the cost of preventive maintenance

Step 4 Compare the two options and select the one which

cost less

Solution

# of breakdown Frequency

0

1

2

3

4/20 = 0.2

8/20 = 0.4

6/20 = 0.3

2/20 = 0.1

Step 1

Expected # of breakdowns = (# of breakdown) x (frequency)

= (0)(0.2)+(1)(0.4)+(2)(0.3)+(3)(0.1)

= 1.3 breakdown per month

Solution

Step 2Expected breakdown cost = (expected # of

breakdown) x (cost per breakdown) = (1.3) x (300) = RM390 per month

Solution

Solution

Step 3 Calculate Preventive Maintenance Cost

= cost of expected breakdown + cost of service contract

= (1 breakdown per month x 300) + RM220 per month

= RM520 per month

Step 4 Compare

Less expensive to suffer breakdown without service contract.

Breakdown = RM390

Service contract = RM520

Therefore, continue present policy.

Solution

Need to consider

Customer service Loss of production Loss of customer goodwill, reputation Machine life Availability of spare parts and expertise Safety to the user / customer Environmental problem (pollutant

discharge etc.)

Maintenance Cost Example

Should the firm contract for maintenance on their printers?

Number of Breakdowns

Number of Months That Breakdowns Occurred

0 2

1 8

2 6

3 4

Total : 20Average cost of breakdown = $300

Maintenance Cost Example

1. Compute the expected number of breakdowns

Number of Breakdowns

Frequency Number of Breakdowns

Frequency

0 2/20 = .1 2 6/20 = .3

1 8/20 = .4 3 4/20 = .2

∑ Number of breakdowns

Expected number of breakdowns

Corresponding frequency= x

= (0)(.1) + (1)(.4) + (2)(.3) + (3)(.2)

= 1.6 breakdowns per month

Maintenance Cost Example

2. Compute the expected breakdown cost per month with no preventive maintenance

Expected breakdown cost

Expected number of breakdowns

Cost per breakdown= x

= (1.6)($300)

= $480 per month

Maintenance Cost Example

3. Compute the cost of preventive maintenance

Preventive maintenance cost

Cost of expected breakdowns if service contract signed

Cost of service contract

=+

= (1 breakdown/month)($300) + $150/month= $450 per month

Hire the service firm; it is less expensive

Increasing Repair Capabilities

1. Well-trained personnel

2. Adequate resources

3. Ability to establish repair plan and priorities

4. Ability and authority to do material planning

5. Ability to identify the cause of breakdowns

6. Ability to design ways to extend MTBF

How Maintenance is Performed

Figure 17.5

Operator(autonomous maintenance)

Maintenance department

Manufacturer’s field service

Depot service(return equipment)

Increasing Operator Ownership Increasing Complexity

Preventive maintenance costs less and is faster the more we move to the left

Competence is higher as we move to the right

Cost and Budget Control System

Cost management and budget control is often one of the trickiest parts of the project management process.

Cost and Budget Control System

Characteristics of a budget A good budget is characterised by the following: · Participation: involve as many people as possible

in drawing up a budget.· Comprehensiveness: embrace the whole organisation.· Standards: base it on established standards of performance.· Flexibility: allow for changing circumstances.· Feedback: constantly monitor performance.· Analysis of costs and revenues: this can be done on the basis of product lines, departments or cost centres

Why costs and budget need to be controlled?

If you budget and do not control the spending then how do you know what is received and spent.

If the receipts and spending of the receipts are not controlled then you have uncontrolled spending and since money spends faster than it is earned in most instances one would find themselves without the resources needed for the budget, the project or the results desired in the budgeting process.

Analysis effective and non-effective maintenance

An effective maintenance system includes the following elements :

Maintenance Policy Control of materials Preventive Maintenance Condition Monitoring Work Order Job planning Priority and backlog control Data recording system Performance measurement measures or indices

Maintenance Audits

The maintenance audit is a review of the maintenance function from within the overall organisation taking into account all the various functions within the organisation. The purpose of a Maintenance Audit is to derive a Maintenance strategy, which aims to deliver improvements to the general maintenance function, provide clearer communications and to develop a set of Best Practices for the maintenance function.

Maintenance Audits can prove vital to your organisation. It is very important to measure the performance of the maintenance function whether you have an existing Maintenance strategy or not. A dysfunctional maintenance function can adversely affect the following:

Performance targets not being met due to breakdowns Low morale of engineering personnel Ratio of breakdown to Planned Maintenance very high Over- purchasing and double-purchasing of Maintenance Spares Purchasing of incorrect maintenance spares Unnecessary Planned Maintenance Machinery over-maintained

Aim

The aim of a maintenance audit, which is the main consideration of this policy sector, is to determine whether the way forward is correctly defined and is being followed.

The audit should measure the effectiveness of the normal practices and reveal whether improvements are required.

Increasing awareness of the maintenance contribution. From this, action plans may evolve which will sharpen up

not only the maintenance strategy, but also the way in which the maintenance operations and technologies are applied. Any changes should not be made just for the sake of change, and

they should be translated into economic benefit and added value.

Audit Question

Apply KPI What are KPIs?• KPIs measure parameters which describe an

aspect of the current state of your operation – whether at departmental level or board level• They can be compared over time to indicate

changes or trends• Their nature & range will vary from company

to company – they will be derived from the stated Business

Objectives

Maintenance impacts on: – The condition of a company's assets – The output of a company's assets

• Organizations looking to find the most effective ways of managing and improving maintenance operations discover:

– in order to manage maintenance effectively first of all we need to learn how to measure it

Why Measure? • “Until you can measure something and express it in numbers, you have only the beginning of understanding” – William Thomson [Lord Kelvin (1824-1907)] • “You cannot manage what you cannot

measure” – Attributed to Bill Hewlett (1930-2001), Co-founder of Hewlett-Packard

Maintenance Influencing Factors • External Influencing Factors – Location, Society, Culture, Labour Cost – Market Situation, Laws, Regulations • Internal Influencing Factors – Company Culture, Process Severity – Product Mix, Plant Size, Utilization Rate – Age of Plant, Criticality

Conclusions

To achieve cost effective maintenance, it is necessary to implement a maintenance program

using a staged process with key steps Without clear definition of requirements,

Achievements and feedback, measurement is not possible

Measurement of effectiveness through monitoring key performance indicators is only possible if each stage has been completed Without measurement, management and

optimisation is not possible