1. 1 Maintenance Management

2. 2 Equipment Malfunctions l Equipment malfunctions have a direct impact on: l Production capacity l Production costs l Product and service quality l Employee or customer safety l Customer satisfaction

3. 3 Maintenance Departments l A maintenance manager typically is a plant engineer who reports to a plant or manufacturing manager l Maintenance departments are usually split into two groups: l Buildings and Grounds l Equipment

4. 4 Maintenance Activities l Repairs l Repair activities are reactive. l Breakdowns and malfunctions typically occur when equipment is in use. l Standby machines and parts can speed repairs. l Preventive Maintenance (PM) l Regularly scheduled inspections are performed. l PM activities are performed before equipment fails. l PM is usually performed during idle periods.

5. 5 Tradeoff Between Repairs and PM l At minimum level of PM, it is a remedial policy l fix machines only when they break l the cost of breakdowns, interruptions to production, and repairs is high l As the PM effort is increased, breakdown and repair cost is reduced l At some point, the total maintenance cost (PM, breakdown, and repair) reach a minimum

6. 6 Tradeoff Between Repairs and PM Annual Cost ($) Degree of Preventive Maintenance Minimum Total Maintenance Cost PreventiveMaintenanceCost Breakdown and Repair Cost TotalMaintenanceCosts Minimum Level of PreventiveMaintenance

7. 7 Reduces Reduces Reduces Reduces Maintenance Policy Frequency Severity Emphasize preventive maintenance XX Provide extra machines X Replace machine parts early X Involve operators in maintenance XX Overdesign machines X Design machines for maintainability X Enhance maint. dept.’s capability XX Increase spare parts supply X Increase standby machines X Increase in-process inventories X Maintenance Policies that Reduce Frequency and Severity of Malfunctions

8. 8 Repair Programs l Objectives l Get equipment back into operation as quickly as possible. l Control cost of repairs crews. l Control cost of the operation of repair shops. l Control the investment in replacement spare parts. l Control the investment in standby or backup machines. l Perform the appropriate amount of repairs at each malfunction.

9. 9 How Speedy Should Repairs Be? Cost ($) Speed of Making Repairs 0 Minimum Total Cost of Repairs Cost of Repair Crews & Shops, Spare Parts, and Standby Machines Cost of Interruptions to Interruptions toProduction Total Costs of Repairs SlowFast

10. 10 Breakdowns Trigger Repairs and Corrective Actions An equipment breakdown should trigger two actions: l Fast repair of the malfunction equipment l Development of a program to eliminate cause of the malfunction and need for such repairs in the future l Modification/redesign of malfunctioning machine l Modification/redesign of part or product being processed l Training of operators to improve machine care l More frequent preventive maintenance/inspection

11. 11 Extent of Repairs l Do just enough repairs to get equipment running again. l Repair the malfunction and replace some parts that are worn. l Perform a major overhaul of the equipment. l Replace the old equipment with new.

12. 12 Decision Analysis in Repair Programs l Determining the size of repair crews l This is one repair-capacity decision l Queuing analysis is often used l Computer simulation is used when the assumptions of queuing formulas do not apply l Determining the number of standby machines to have l Trade-off between cost of lost production time and cost of machine storage, handling, ….

13. 13 Reasons for a PM Program l Reduce the frequency and severity of interruptions due to malfunctions l Extend the useful life of equipment l Reduce the total cost of maintenance by substituting PM costs for repair costs l Provide a safe working environment l Improve product quality by keeping equipment in proper adjustment

14. 14 PM and Operations Strategies l PM program is essential to the success of a product- focused positioning strategy l On production lines, there are little if any in-process inventories between adjacent operations l If a machine breaks down, all downstream operations will soon run out of parts to work on

15. 15 Secondary Maintenance Responsibilities l Housekeeping, groundskeeping, janitorial l New construction, remodeling l Painting l Security, loss prevention l Pollution control l Waste recycling l Safety equipment maintenance l Public hazard control

16. 16 Trends in Maintenance l Production machinery is becoming more and more complex and maintenance personnel must keep pace l Special training programs to maintain worker skill level l Subcontracting service companies l Production workers maintain own equipment l Computer assistance in maintenance

17. 17 Maintenance Issues in Service Organizations l Maintenance issues are not limited to manufacturing l Transportation firms (airlines, trucking companies, package delivery services, railroads) must keep their vehicles in top operating condition l Highway departments must maintain roadways l Office personnel are reliant on copiers, printers, computers, and fax machines working properly l As services become increasingly automated, service firms face more and more maintenance issues

18. 18 Wrap-Up: World-Class Practice l Empower workers so they “own” their machines l Implement JIT to help reduce inventories and cycle time l Invest in factory and service automation projects l Utilize automated process sensing and control systems l Use computers in maintenance management