1. Operations Management Maintenance and Reliability Chapter 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

2. 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
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

3. 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
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

4. 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
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

5. NASA Maintenance of space shuttles Columbia: Maintenance requires
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
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

6. Maintenance Management
All activities involved in keeping a system’s equipment working
Objective: Maintain system capability & minimize total costs
© 1995 Corel Corp.
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

7. The Strategic Importance of Maintenance and Reliability
Failure has far reaching effects on a firm’s
operation
reputation
profitability
customers
product
employees
profits
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

8. Maintenance Performance
Maintenance Procedures
Employee Involvement
Maintenance Performance
© 1995 Corel Corp.
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

9. Good Maintenance & Reliability Strategy
Requires:
Employee involvement
Maintenance and reliability procedures
To yield:
Reduced inventory
Improved quality
Improved capacity
Reputation for quality
Continuous improvement
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

10. Employee Involvement Information sharing Skill training Reward system
Power sharing
© 1995 Corel Corp.
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

11. Maintenance & Reliability Procedures
Maintenance Procedures
© 1995 Corel Corp.
Clean and lubricate
Monitor and adjust
Minor repair
Computerized records
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

12. Maintenance Benefits Lower operating costs Continuous improvement
Faster, more dependable throughput
Higher productivity
Improved quality
Improved capacity
Reduced inventory
Maintenance
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

13. Tactics for Reliability and Maintenance
Reliability Tactics
improving individual components
providing redundancy
Maintenance Tactics
implementing preventive maintenance
increasing repair capabilities
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

14. System Reliability - Components in Series
Average Reliability of all Components (Percent)
Reliability of the System (Percent)
100 80 60 40 20
n=1
n=10
n=50
n=100
n=200
n=300
n=400
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

15. Reliability of Components in Series
R = R1 * R2 * R3 * ...
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

16. Evaluating Maintenance
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
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

17. Failure Rate (%) Number of failures FR(%) = * 100%
Number of units tested
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

18. Lifetime Failure Rates
Infant
mortality
and
improper use
failure
“normal” failure
Wearout
Failure
rate
Lifetime
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

19. Failures Per Operating Hour
Number of Failures
FR(n) =
Operating Time
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

20. Mean Time Between Failures1
MTBF =
FR(N)
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

21. Probability of first component working
Providing Redundancy
Probability of first component working
Probability of second component working +
Probability of needing second component *
= P(R)
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

22. Maintenance Decisions
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
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

23. Types of Maintenance Preventive Breakdown
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
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

24. Mean Time Between Failure and Preventive Maintenance
Frequency
of failure
Mean Time Between Failure
Candidate for preventive
maintenance will have
distribution with low
variability
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

25. Organizing the Maintenance Function
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
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

26. Operator-Ownership Approach
Operator does preventive maintenance
Equipment condition is their responsibility
Learns equipment better
Increases worker’s pride
Reduces repair time & PM costs
Maintenance department is backup
Handles non-routine problems
Provides maintenance training
Has plant-wide responsibilities
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

27. A Computerized Maintenance System
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

28. Maintenance Costs Traditional View
Maintenance Commitment
Cost
Preventive Maintenance Cost
Total Maintenance Cost
Breakdown Cost
Optimal
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

29. Maintenance Costs Full Cost View
Optimal
Total costs
Full cost of breakdowns
Preventive maintenance costs
Maintenance Commitment
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

30. 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
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

31. 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
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

32. Operations Manager Must Determine How Maintenance Will be Performed
Operator
Maintenance Department
Manufacturer’s 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
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

33. 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
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

34. 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.
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

35. 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
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