MAINTENANCE
JJ 616
MANAGEMENT
NOR HAFIDZAH BINTI MOHD HUSNI
December 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%
MAINTENANCE
JJ 616
MANAGEMENT
Introduction to
Maintenance
NOR HAFIDZAH BINTI MOHD HUSNI
December 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 systems 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 conditionThe 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 tasksThe 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 tasksThe 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
Decentralized
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 (cont..)
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 others problems better
because of their common goals.
Better training at the workers level can be
arranged.
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
Total
costs
Costs
Preventive
maintenance
costs
Breakdown
maintenance
costs
Optimal point (lowest
cost maintenance policy)
Maintenance commitment
Traditional View
Figure 17.4 (a)
Maintenance Costs
Costs
Total
costs
Full cost of
breakdowns
Preventive
maintenance
costs
Maintenance commitment
Optimal point (lowest
cost maintenance policy)
Full Cost View
Figure 17.4 (b)
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 contract
Step 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
Solution
Step 2
Expected 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.
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
Average cost of breakdown4 = $300
Total :
20
Maintenance Cost Example
1. Compute the expected number of
breakdowns
Number of
Breakdowns
Frequency
Number of
Breakdowns
Frequency
2/20 = .1
6/20 = .3
8/20 = .4
4/20 = .2
Expected number of =
breakdowns
Number of
breakdowns
Corresponding
frequency
= (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 x
breakdowns
= (1.6)($300)
= $480 per month
Cost per
breakdown
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
Operator
(autonomous
maintenance)
Maintenance
department
Manufacturers
field service
Depot service
(return equipment)
Competence is higher as we
move to the right
Preventive
maintenance costs less and
is faster the more we move to the left
Increasing Operator Ownership
Increasing Complexity
Figure 17.5
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
