C11 maintenance

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  • You might discuss the meaning of redundancy.
  • You might stress at this point that employee involvement is crucial.
  • Employee involvement, the key to maintenance? By this time, the student should be gaining the impression that employee involvement is the key to successful OM.
  • Examples demonstrating how each of the benefits is incurred would be worthwhile.
  • Ask students to identify some of the pros and cons of the various possibilities.
  • Is this an example of job enlargement or job enrichment?
  • You might discuss the meaning of redundancy.
  • Again, a multi-faceted approach!
  • C11 maintenance

    1. 1. Operations Management Maintenance Management Chapter 11 OPM 533 11-
    2. 2. Maintenance <ul><li>The objective of maintenance is to maintain the capability of the system while controlling costs </li></ul><ul><ul><li>Maintenance is all activities involved in keeping a system’s equipment in working order or operating condition </li></ul></ul><ul><ul><li>Maintenance is concerned with avoiding or minimizing downtime or to avoid undesirable results due to system failure. </li></ul></ul>
    3. 3. Concept of Maintenance <ul><ul><li>The most important function of maintenance is to provide system reliability that is to ensure that a specific machine continues to function for a specified period of time with minimum chances of breaking down and at minimum costs. This can be achieved through: </li></ul></ul><ul><ul><li>increasing repair capabilities or speeding the repair activities to minimizing interruption. </li></ul></ul><ul><ul><li>implementing preventive maintenance </li></ul></ul>11-
    4. 4. Strategic Importance of Maintenance <ul><li>Maintenance can avoid work stoppage and ensure that the lost of production time and cost are minimized. </li></ul><ul><li>To keep the entire production system running smoothly with minimum interruption. </li></ul><ul><li>To avoid loss of sales and profits </li></ul><ul><li>Help reduce production cost such as idle labor cost and overtime cost </li></ul>11-
    5. 5. Strategic Importance of Maintenance – cont. <ul><li>To ensure that the entire workplace is a safe place to work for its employees. </li></ul><ul><li>To established a competitive edge and to enhance good customer service. </li></ul><ul><li>To ensure that the product meet the expected quality and specifications. </li></ul><ul><li>To reduce cost of breakdown and repairs. </li></ul>11-
    6. 6. Good Maintenance Strategy <ul><li>Requires: </li></ul><ul><ul><li>Employee involvement </li></ul></ul><ul><ul><li>Maintenance and reliability procedures </li></ul></ul><ul><li>To yield: </li></ul><ul><ul><li>Reduced inventory </li></ul></ul><ul><ul><li>Improved quality </li></ul></ul><ul><ul><li>Improved capacity </li></ul></ul><ul><ul><li>Reputation for quality </li></ul></ul><ul><ul><li>Continuous improvement </li></ul></ul>OPM 533 11-
    7. 7. Employee Involvement <ul><li>Information sharing </li></ul><ul><li>Skill training </li></ul><ul><li>Reward system </li></ul><ul><li>Power sharing </li></ul>OPM 533 11- © 1995 Corel Corp.
    8. 8. Maintenance Benefits OPM 533 11- Lower operating costs Continuous improvement Faster, more dependable throughput Higher productivity Improved quality Improved capacity Reduced inventory Maintenance
    9. 9. Maintenance <ul><li>Two types of maintenance </li></ul><ul><li>Breakdown Maintenance </li></ul><ul><li>Preventive Maintenance </li></ul>
    10. 10. Breakdown Maintenance <ul><li>Involves performing maintenance activities after a machine breakdown or malfunction has occurred and then must be repaired on an emergency or priority basis. </li></ul><ul><li>Breakdown maintenance includes repairs, replacement of parts or even overhaul to ensure the machine is put back in operating condition. </li></ul>11-
    11. 11. Preventive Maintenance <ul><li>Involves performing maintenance activities before the equipment fails. </li></ul><ul><li>Objectives are : </li></ul><ul><li>i) To reduce frequency and severity of interruptions to production caused by machine malfunctions. </li></ul><ul><li>ii) To detect potential problems earlier and avoid the associate cost </li></ul>11-
    12. 12. Preventive Maintenance – cont. <ul><li>Preventive Maintenance activities includes regular inspection, machine adjustments, lubrication, cleaning and parts replacement </li></ul><ul><li>Two type of preventive maintenance </li></ul><ul><li>i) Routine maintenance </li></ul><ul><li>ii) Inspection </li></ul>11-
    13. 13. <ul><li>How much preventive & breakdown maintenance </li></ul><ul><li>Who performs maintenance </li></ul><ul><ul><li>Centralized, decentralized, operator etc. </li></ul></ul><ul><ul><li>Contract or in-house </li></ul></ul><ul><li>When to replace or repair </li></ul><ul><li>How much to replace </li></ul><ul><ul><li>Individual or group replacement </li></ul></ul><ul><li>Spare parts inventory and standby machines. </li></ul>Maintenance Decisions OPM 533 11-
    14. 14. Spare Parts Inventory and Standby Machines <ul><li>Firms must maintain a certain level of spare part inventory to ensure that the repairs can be done </li></ul><ul><li>Some companies invest in standby machines </li></ul><ul><li>Disadvantage of standby machines is the machine will be under utilized. </li></ul>11-
    15. 15. <ul><li>Centralized maintenance department </li></ul><ul><ul><li>Does all maintenance (PM & breakdown) </li></ul></ul><ul><li>Decentralized maintenance department </li></ul><ul><ul><li>Useful if different equipment used in different areas of company </li></ul></ul><ul><li>Contract maintenance </li></ul><ul><ul><li>Used if little equipment or expertise </li></ul></ul><ul><li>Operator ownership approach </li></ul>Organizing the Maintenance Function OPM 533 11-
    16. 16. <ul><li>Operator does preventive maintenance </li></ul><ul><ul><li>Equipment condition is their responsibility </li></ul></ul><ul><ul><li>Learns equipment better </li></ul></ul><ul><ul><li>Increases worker’s pride </li></ul></ul><ul><ul><li>Reduces repair time & PM costs </li></ul></ul><ul><li>Maintenance department is backup </li></ul><ul><ul><li>Handles non-routine problems </li></ul></ul><ul><ul><li>Provides maintenance training </li></ul></ul><ul><ul><li>Has plant-wide responsibilities </li></ul></ul>Operator-Ownership Approach OPM 533 11-
    17. 17. Contract for Preventive Maintenance <ul><li>Compute the expected number of breakdowns without the service contract </li></ul><ul><li>Compute the expected breakdown cost per month with no preventive maintenance contract </li></ul><ul><li>Compute the cost of preventive maintenance </li></ul><ul><li>Compare the two options </li></ul>OPM 533 11-
    18. 18. Maintenance Cost Example Should the firm contract for maintenance on their printers? Average cost of breakdown = $300 Use service contract - cost RM150 per month and average breakdown is 1 per month. Number of Breakdowns Number of Months That Breakdowns Occurred 0 2 1 8 2 6 3 4 Total: 20
    19. 19. Maintenance Cost Example <ul><li>Compute the expected number of breakdowns </li></ul>= (0)(.1) + (1)(.4) + (2)(.3) + (3)(.2) = 1.6 breakdowns per month 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
    20. 20. Maintenance Cost Example <ul><li>Compute the expected breakdown cost per month with no preventive maintenance </li></ul>= (1.6)($300) = $480 per month Expected breakdown cost Expected number of breakdowns Cost per breakdown = x
    21. 21. Maintenance Cost Example <ul><li>Compute the cost of preventive maintenance </li></ul>= (1 breakdown/month)($300) + $150/month = $450 per month Hire the service firm; it is less expensive Preventive maintenance cost Cost of expected breakdowns if service contract signed Cost of service contract = +
    22. 22. Tactics for Maintenance <ul><li>Maintenance Tactics </li></ul><ul><ul><li>implementing preventive maintenance </li></ul></ul><ul><ul><li>increasing repair capabilities </li></ul></ul>OPM 533 11-
    23. 23. Increasing Repair Capabilities:Features of A Good Maintenance Facility <ul><li>Well-trained personnel </li></ul><ul><li>Adequate resources </li></ul><ul><li>Ability to establish a repair plan and priorities </li></ul><ul><li>Ability and authority to do material planning </li></ul><ul><li>Ability to identify the cause of breakdowns </li></ul><ul><li>Ability to design ways to extend MTBF </li></ul>OPM 533 11-
    24. 24. Total Productive Maintenance (TPM) <ul><li>Additional requirements of: </li></ul><ul><ul><li>Designing machines that are reliable, easy to operate and easy to maintain </li></ul></ul><ul><ul><li>Emphasizing total cost of ownership when purchasing machines, so that service and maintenance are included in the cost </li></ul></ul><ul><ul><li>Developing preventive maintenance plans that utilize the best practices of operators, maintenance departments, and depot services </li></ul></ul><ul><ul><li>Training workers to operate and maintain their own machines </li></ul></ul>OPM 533 11-
    25. 25. OPM 533 11- Techniques for Establishing Maintenance Policies <ul><li>Simulation - enables one to evaluate the impact of various maintenance policies </li></ul><ul><li>Expert systems - can be used by staff to help diagnose faults in machinery and equipment </li></ul>

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