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C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
C11 maintenance
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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!
  • Transcript

    • 1. Operations Management Maintenance Management Chapter 11 OPM 533 11-
    • 2. Maintenance
      • The objective of maintenance is to maintain the capability of the system while controlling costs
        • Maintenance is all activities involved in keeping a system’s equipment in working order or operating condition
        • Maintenance is concerned with avoiding or minimizing downtime or to avoid undesirable results due to system failure.
    • 3. Concept of Maintenance
        • 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:
        • increasing repair capabilities or speeding the repair activities to minimizing interruption.
        • implementing preventive maintenance
    • 4. Strategic Importance of Maintenance
      • Maintenance can avoid work stoppage and ensure that the lost of production time and cost are minimized.
      • To keep the entire production system running smoothly with minimum interruption.
      • To avoid loss of sales and profits
      • Help reduce production cost such as idle labor cost and overtime cost
    • 5. Strategic Importance of Maintenance – cont.
      • To ensure that the entire workplace is a safe place to work for its employees.
      • To established a competitive edge and to enhance good customer service.
      • To ensure that the product meet the expected quality and specifications.
      • To reduce cost of breakdown and repairs.
    • 6. Good Maintenance Strategy
      • Requires:
        • Employee involvement
        • Maintenance and reliability procedures
      • To yield:
        • Reduced inventory
        • Improved quality
        • Improved capacity
        • Reputation for quality
        • Continuous improvement
      OPM 533 11-
    • 7. Employee Involvement
      • Information sharing
      • Skill training
      • Reward system
      • Power sharing
      OPM 533 11- © 1995 Corel Corp.
    • 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. Maintenance
      • Two types of maintenance
      • Breakdown Maintenance
      • Preventive Maintenance
    • 10. Breakdown Maintenance
      • Involves performing maintenance activities after a machine breakdown or malfunction has occurred and then must be repaired on an emergency or priority basis.
      • Breakdown maintenance includes repairs, replacement of parts or even overhaul to ensure the machine is put back in operating condition.
    • 11. Preventive Maintenance
      • Involves performing maintenance activities before the equipment fails.
      • Objectives are :
      • i) To reduce frequency and severity of interruptions to production caused by machine malfunctions.
      • ii) To detect potential problems earlier and avoid the associate cost
    • 12. Preventive Maintenance – cont.
      • Preventive Maintenance activities includes regular inspection, machine adjustments, lubrication, cleaning and parts replacement
      • Two type of preventive maintenance
      • i) Routine maintenance
      • ii) Inspection
    • 13.
      • 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
      • Spare parts inventory and standby machines.
      Maintenance Decisions OPM 533 11-
    • 14. Spare Parts Inventory and Standby Machines
      • Firms must maintain a certain level of spare part inventory to ensure that the repairs can be done
      • Some companies invest in standby machines
      • Disadvantage of standby machines is the machine will be under utilized.
    • 15.
      • 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 OPM 533 11-
    • 16.
      • 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
      Operator-Ownership Approach OPM 533 11-
    • 17. 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
      OPM 533 11-
    • 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. Maintenance Cost Example
      • Compute the expected number of breakdowns
      = (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. Maintenance Cost Example
      • Compute the expected breakdown cost per month with no preventive maintenance
      = (1.6)($300) = $480 per month Expected breakdown cost Expected number of breakdowns Cost per breakdown = x
    • 21. Maintenance Cost Example
      • Compute the cost of preventive maintenance
      = (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. Tactics for Maintenance
      • Maintenance Tactics
        • implementing preventive maintenance
        • increasing repair capabilities
      OPM 533 11-
    • 23. 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
      OPM 533 11-
    • 24. Total Productive Maintenance (TPM)
      • 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
      OPM 533 11-
    • 25. OPM 533 11- 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