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Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc.,

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Presentation on theme: "Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc.,"— Presentation transcript:

1 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Operations Management Maintenance and Reliability Chapter 17

2 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Outline GLOBAL COMPANY PROFILE: NASA THE STRATEGIC IMPORTANCE OF MAINTENANCE AND RELIABILITY RELIABILITY Improving Individual Components Providing Redundancy MAINTENANCE Implementing Preventive Maintenance Increasing Repair Capability TOTAL PRODUCTIVE MAINTENANCE TECHNIQUES FOR ESTABLISHING MAINTENANCE POLICIES

3 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Learning Objectives When you complete this chapter, you should be able to : Identify or Define : Maintenance Mean time between failures Redundancy Preventive maintenance Breakdown maintenance Infant mortality

4 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Learning Objectives - continued When you complete this chapter, you should be able to : Describe or Explain: How to measure system reliability How to improve maintenance How to evaluate maintenance performance

5 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J NASA Maintenance of space shuttles Columbia: 86,000,000 miles on odometer 3 engines each the size of a VW expected to make dozens more launches Maintenance requires 600 computer generated maintenance jobs 3-month turnaround More than 100 people

6 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J All activities involved in keeping a systems equipment working Objective: Maintain system capability & minimize total costs © 1995 Corel Corp. Maintenance Management

7 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J The Strategic Importance of Maintenance and Reliability Failure has far reaching effects on a firms operation reputation profitability customers product employees profits

8 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Maintenance Procedures Employee Involvement Maintenance Performance © 1995 Corel Corp. Maintenance Performance

9 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Good Maintenance & Reliability Strategy Requires: Employee involvement Maintenance and reliability procedures To yield: Reduced inventory Improved quality Improved capacity Reputation for quality Continuous improvement

10 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Employee Involvement Information sharing Skill training Reward system Power sharing © 1995 Corel Corp.

11 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Maintenance & Reliability Procedures Clean and lubricate Monitor and adjust Minor repair Computerized records Maintenance Procedures © 1995 Corel Corp.

12 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Lower operating costs Continuous improvement Faster, more dependable throughput Higher productivity Improved quality Improved capacity Reduced inventory Maintenance Maintenance Benefits

13 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Tactics for Reliability and Maintenance Tactics for Reliability and Maintenance Reliability Tactics improving individual components providing redundancy Maintenance Tactics implementing preventive maintenance increasing repair capabilities

14 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J System Reliability - Components in Series Average Reliability of all Components (Percent) Reliability of the System (Percent) n=1 n=10 n=50 n=100 n=200 n=300 n=400

15 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Reliability of Components in Series R = R 1 * R 2 * R 3 *...

16 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Reliability Probability that an item will function for a given time Mean time between failures ( MTBF ) Average time between failures of a repairable item Failure rate Reciprocal of MTBF Evaluating Maintenance

17 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Failure Rate (%) Number of failures FR(%) = * 100% Number of units tested

18 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Lifetime Failure Rates Infant mortality and improper use failure normal failure Wearout failure Failure rate Lifetime

19 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Failures Per Operating Hour Number of Failures FR(n) = Operating Time

20 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Mean Time Between Failures 1 MTBF = FR(N)

21 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Providing Redundancy Probability of first component working Probability of second component working + Probability of needing second component * = P(R)

22 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J How much preventive & breakdown maintenance Who performs maintenance Centralized, decentralized, operator etc. Contract or in-house When to replace or repair How much to replace Individual or group replacement Maintenance Decisions

23 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J PreventiveBreakdown Routine inspection & servicing Prevents failures Bases for doing Time: Every day Usage: Every 300 pieces Inspection: Control chart deviations Non-routine inspection & servicing Remedial Basis for doing Equipment failure Types of Maintenance

24 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Mean Time Between Failure and Preventive Maintenance

25 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Centralized maintenance department Does all maintenance (PM & breakdown) Decentralized maintenance department Useful if different equipment used in different areas of company Contract maintenance Used if little equipment or expertise Operator ownership approach Organizing the Maintenance Function

26 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Operator does preventive maintenance Equipment condition is their responsibility Learns equipment better Increases workers pride Reduces repair time & PM costs Maintenance department is backup Handles non-routine problems Provides maintenance training Has plant-wide responsibilities Operator-Ownership Approach

27 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J A Computerized Maintenance System

28 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Maintenance Commitment Cost Preventive Maintenance Cost Tot Tot al Maintenance Cost Breakdown Cost Optimal Maintenance Costs Traditional View

29 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Maintenance Costs Full Cost View Maintenance Commitment Cost Optimal Total costs Full cost of breakdowns Preventive maintenance costs

30 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Contract for Preventive Maintenance Compute the expected number of breakdowns without the service contract Compute the expected breakdown cost per month with no preventive maintenance contract Compute the cost of preventive maintenance Compare the two options

31 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Increasing Repair Capabilities:Features of A Good Maintenance Facility Well-trained personnel Adequate resources Ability to establish a repair plan and priorities Ability and authority to do material planning Ability to identify the cause of breakdowns Ability to design ways to extend MTBF

32 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Operations Manager Must Determine How Maintenance Will be Performed OperatorMaintenance Department Manufacturers field service Depot Service (return equipment) Competence is higher as we more to the right Preventive maintenance costs less and is faster as we move to the left

33 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Total Productive Maintenance Additional requirements of: Designing machines that are reliable, easy to operate and easy to maintain Emphasizing total cost of ownership when purchasing machines, so that service and maintenance are included in the cost Developing preventive maintenance plans that utilize the best practices of operators, maintenance departments, and depot services Training workers to operate and maintain their own machines

34 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J A Key To Success High utilization of facilities, tight scheduling, low inventory and consistent quality demand reliability - total preventive maintenance is the key to reliability.

35 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J Techniques for Establishing Maintenance Policies Simulation - enables one to evaluate the impact of various maintenance policies Expert systems - can be used by staff to help diagnose faults in machinery and equipment


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