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Operations Management Chapter 17 –  Maintenance and Reliability PowerPoint presentation to accompany  Heizer/Render  Princ...
Outline <ul><li>Global Company Profile: Orlando Utilities Commission </li></ul><ul><li>The Strategic Importance of Mainten...
Outline – Continued <ul><li>Maintenance </li></ul><ul><ul><li>Implementing Preventive Maintenance </li></ul></ul><ul><ul><...
Learning Objectives <ul><li>When you complete this chapter you should be able to: </li></ul><ul><li>Describe how to improv...
Learning Objectives <ul><li>When you complete this chapter you should be able to: </li></ul><ul><li>Distinguish between pr...
Orlando Utilities Commission <ul><li>Maintenance of power generating plants </li></ul><ul><li>Every year each plant is tak...
Orlando Utilities Commission <ul><li>Every day a plant is down costs OUC $110,000 </li></ul><ul><li>Unexpected outages cos...
Strategic Importance of Maintenance and Reliability <ul><li>Failure has far reaching effects on a firm’s </li></ul><ul><ul...
Maintenance and Reliability <ul><li>The objective of maintenance and reliability is to maintain the capability of the syst...
Important Tactics <ul><li>Reliability </li></ul><ul><ul><li>Improving individual components </li></ul></ul><ul><ul><li>Pro...
Maintenance Strategy Figure 17.1 Employee Involvement Information sharing Skill training Reward system Employee empowermen...
Reliability Improving individual components R s  = R 1  x R 2  x R 3  x … x R n where R 1 = reliability of component 1 R 2...
Overall System Reliability Figure 17.2 Reliability of the system (percent) Average reliability of each component (percent)...
Reliability Example Reliability of the process is R s  = R 1  x R 2  x R 3   = .90 x .80 x .99 = .713 or 71.3% R s R 3 .99...
Product Failure Rate (FR) Basic unit of measure for reliability FR ( % )  =  x  100% Number of failures Number of units te...
Failure Rate Example 20  air conditioning units designed for use in  NASA space shuttles operated for  1,000  hours One fa...
Failure Rate Example 20  air conditioning units designed for use in  NASA space shuttles   operated for  1,000  hours One ...
Providing Redundancy Provide backup components to increase reliability + x Probability of first component working Probabil...
Redundancy Example A redundant process is installed to support the earlier example where R s   = .713 = [.9 + .9(1 - .9)] ...
Maintenance <ul><li>Two types of maintenance </li></ul><ul><ul><li>Preventive maintenance – routine inspection and servici...
Implementing Preventive Maintenance <ul><li>Need to know when a system requires service or is likely to fail </li></ul><ul...
Computerized Maintenance System Figure 17.3 Output Reports Inventory and purchasing reports Equipment parts list Equipment...
Maintenance Costs <ul><li>The traditional view attempted to balance preventive and breakdown maintenance costs  </li></ul>...
Maintenance Costs Figure 17.4 (a) Traditional View Total costs Breakdown maintenance costs Costs Maintenance commitment Pr...
Maintenance Costs Figure 17.4 (b) Full Cost View Costs Maintenance commitment Optimal point (lowest cost maintenance polic...
Maintenance Cost Example Should the firm contract for maintenance on their printers? Average cost of breakdown  = $300   T...
Maintenance Cost Example <ul><li>Compute the expected number of breakdowns </li></ul>= (0)(.1) + (1)(.4) + (2)(.3) + (3)(....
Maintenance Cost Example <ul><li>Compute the expected breakdown cost per month with no preventive maintenance </li></ul>= ...
Maintenance Cost Example <ul><li>Compute the cost of preventive maintenance </li></ul>= (1  breakdown/month )($300) + $150...
Increasing Repair Capabilities <ul><li>Well-trained personnel </li></ul><ul><li>Adequate resources </li></ul><ul><li>Abili...
How Maintenance is Performed Figure 17.5 Operator Maintenance department Manufacturer’s field service Depot service (retur...
Total Productive Maintenance (TPM) <ul><li>Designing machines that are reliable, easy to operate, and easy to maintain </l...
Establishing Maintenance Policies <ul><li>Simulation </li></ul><ul><ul><li>Computer analysis of complex situations </li></...
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17.maintenance and reliability

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maintenance and reliability

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17.maintenance and reliability

  1. 1. Operations Management Chapter 17 – Maintenance and Reliability PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e
  2. 2. Outline <ul><li>Global Company Profile: Orlando Utilities Commission </li></ul><ul><li>The Strategic Importance of Maintenance and Reliability </li></ul><ul><li>Reliability </li></ul><ul><ul><li>Improving Individual Components </li></ul></ul><ul><ul><li>Providing Redundancy </li></ul></ul>
  3. 3. Outline – Continued <ul><li>Maintenance </li></ul><ul><ul><li>Implementing Preventive Maintenance </li></ul></ul><ul><ul><li>Increasing Repair Capabilities </li></ul></ul><ul><li>Total Productive Maintenance </li></ul><ul><li>Techniques for Enhancing Maintenance </li></ul>
  4. 4. Learning Objectives <ul><li>When you complete this chapter you should be able to: </li></ul><ul><li>Describe how to improve system reliability </li></ul><ul><li>Determine system reliability </li></ul><ul><li>Determine mean time between failure (MTBF) </li></ul>
  5. 5. Learning Objectives <ul><li>When you complete this chapter you should be able to: </li></ul><ul><li>Distinguish between preventive and breakdown maintenance </li></ul><ul><li>Describe how to improve maintenance </li></ul><ul><li>Compare preventive and breakdown maintenance costs </li></ul>
  6. 6. Orlando Utilities Commission <ul><li>Maintenance of power generating plants </li></ul><ul><li>Every year each plant is taken off-line for 1-3 weeks maintenance </li></ul><ul><li>Every three years each plant is taken off-line for 6-8 weeks for complete overhaul and turbine inspection </li></ul><ul><li>Each overhaul has 1,800 tasks and requires 72,000 labor hours </li></ul><ul><li>OUC performs over 12,000 maintenance tasks each year </li></ul>
  7. 7. Orlando Utilities Commission <ul><li>Every day a plant is down costs OUC $110,000 </li></ul><ul><li>Unexpected outages cost between $350,000 and $600,000 per day </li></ul><ul><li>Preventive maintenance discovered a cracked rotor blade which could have destroyed a $27 million piece of equipment </li></ul>
  8. 8. Strategic Importance of Maintenance and Reliability <ul><li>Failure has far reaching effects on a firm’s </li></ul><ul><ul><li>Operation </li></ul></ul><ul><ul><li>Reputation </li></ul></ul><ul><ul><li>Profitability </li></ul></ul><ul><ul><li>Dissatisfied customers </li></ul></ul><ul><ul><li>Idle employees </li></ul></ul><ul><ul><li>Profits becoming losses </li></ul></ul><ul><ul><li>Reduced value of investment in plant and equipment </li></ul></ul>
  9. 9. Maintenance and Reliability <ul><li>The objective of maintenance and reliability 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 </li></ul></ul><ul><ul><li>Reliability is the probability that a machine will function properly for a specified time </li></ul></ul>
  10. 10. Important Tactics <ul><li>Reliability </li></ul><ul><ul><li>Improving individual components </li></ul></ul><ul><ul><li>Providing redundancy </li></ul></ul><ul><li>Maintenance </li></ul><ul><ul><li>Implementing or improving preventive maintenance </li></ul></ul><ul><ul><li>Increasing repair capability or speed </li></ul></ul>
  11. 11. Maintenance Strategy Figure 17.1 Employee Involvement Information sharing Skill training Reward system Employee empowerment Maintenance and Reliability Procedures Clean and lubricate Monitor and adjust Make minor repair Keep computerized records Results Reduced inventory Improved quality Improved capacity Reputation for quality Continuous improvement Reduced variability
  12. 12. Reliability Improving individual components R s = R 1 x R 2 x R 3 x … x R n where R 1 = reliability of component 1 R 2 = reliability of component 2 and so on
  13. 13. Overall System Reliability Figure 17.2 Reliability of the system (percent) Average reliability of each component (percent) | | | | | | | | | 100 99 98 97 96 100 – 80 – 60 – 40 – 20 – 0 – n = 10 n = 1 n = 50 n = 100 n = 200 n = 300 n = 400
  14. 14. Reliability Example Reliability of the process is R s = R 1 x R 2 x R 3 = .90 x .80 x .99 = .713 or 71.3% R s R 3 .99 R 2 .80 R 1 .90
  15. 15. Product Failure Rate (FR) Basic unit of measure for reliability FR ( % ) = x 100% Number of failures Number of units tested FR ( N ) = Number of failures Number of unit-hours of operating time Mean time between failures MTBF = 1 FR ( N )
  16. 16. Failure Rate Example 20 air conditioning units designed for use in NASA space shuttles operated for 1,000 hours One failed after 200 hours and one after 600 hours FR ( % ) = (100%) = 10% 2 20 FR ( N ) = = .000106 failure/unit hr 2 20,000 - 1,200 MTBF = = 9,434 hrs 1 .000106
  17. 17. Failure Rate Example 20 air conditioning units designed for use in NASA space shuttles operated for 1,000 hours One failed after 200 hours and one after 600 hours FR ( % ) = (100%) = 10% 2 20 FR ( N ) = = .000106 failure/unit hr 2 20,000 - 1,200 MTBF = = 9,434 hr 1 .000106 Failure rate per trip FR = FR ( N )(24 hrs )(6 days/trip ) FR = (.000106)(24)(6) FR = .153 failures per trip
  18. 18. Providing Redundancy Provide backup components to increase reliability + x Probability of first component working Probability of needing second component Probability of second component working (.8) + (.8) x (1 - .8) = .8 + .16 = .96
  19. 19. Redundancy Example A redundant process is installed to support the earlier example where R s = .713 = [.9 + .9(1 - .9)] x [.8 + .8(1 - .8)] x .99 = [.9 + (.9)(.1)] x [.8 + (.8)(.2)] x .99 = .99 x .96 x .99 = .94 Reliability has increased from .713 to .94 R 1 0.90 0.90 R 2 0.80 0.80 R 3 0.99
  20. 20. Maintenance <ul><li>Two types of maintenance </li></ul><ul><ul><li>Preventive maintenance – routine inspection and servicing to keep facilities in good repair </li></ul></ul><ul><ul><li>Breakdown maintenance – emergency or priority repairs on failed equipment </li></ul></ul>
  21. 21. Implementing Preventive Maintenance <ul><li>Need to know when a system requires service or is likely to fail </li></ul><ul><li>High initial failure rates are known as infant mortality </li></ul><ul><li>Once a product settles in, MTBF generally follows a normal distribution </li></ul><ul><li>Good reporting and record keeping can aid the decision on when preventive maintenance should be performed </li></ul>
  22. 22. Computerized Maintenance System Figure 17.3 Output Reports Inventory and purchasing reports Equipment parts list Equipment history reports Cost analysis (Actual vs. standard) <ul><li>Work orders </li></ul><ul><li>Preventive maintenance </li></ul><ul><li>Scheduled downtime </li></ul><ul><li>Emergency maintenance </li></ul><ul><li>Data entry </li></ul><ul><li>Work requests </li></ul><ul><li>Purchase requests </li></ul><ul><li>Time reporting </li></ul><ul><li>Contract work </li></ul>Data Files Personnel data with skills, wages, etc. Equipment file with parts list Maintenance and work order schedule Inventory of spare parts Repair history file
  23. 23. Maintenance Costs <ul><li>The traditional view attempted to balance preventive and breakdown maintenance costs </li></ul><ul><li>Typically this approach failed to consider the true total cost of breakdowns </li></ul><ul><ul><li>Inventory </li></ul></ul><ul><ul><li>Employee morale </li></ul></ul><ul><ul><li>Schedule unreliability </li></ul></ul>
  24. 24. Maintenance Costs Figure 17.4 (a) Traditional View Total costs Breakdown maintenance costs Costs Maintenance commitment Preventive maintenance costs Optimal point (lowest cost maintenance policy)
  25. 25. Maintenance Costs Figure 17.4 (b) Full Cost View Costs Maintenance commitment Optimal point (lowest cost maintenance policy) Total costs Full cost of breakdowns Preventive maintenance costs
  26. 26. Maintenance Cost Example Should the firm contract for maintenance on their printers? Average cost of breakdown = $300 Total: 20 4 3 6 2 8 1 2 0 Number of Months That Breakdowns Occurred Number of Breakdowns
  27. 27. 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 4/20 = .2 3 8/20 = .4 1 6/20 = .3 2 2/20 = .1 0 Frequency Number of Breakdowns Frequency Number of Breakdowns ∑ Number of breakdowns Expected number of breakdowns Corresponding frequency = x
  28. 28. 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
  29. 29. 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 = +
  30. 30. Increasing Repair Capabilities <ul><li>Well-trained personnel </li></ul><ul><li>Adequate resources </li></ul><ul><li>Ability to establish 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>
  31. 31. How Maintenance is Performed Figure 17.5 Operator Maintenance department Manufacturer’s field service Depot service (return equipment) Preventive maintenance costs less and is faster the more we move to the left Competence is higher as we move to the right
  32. 32. Total Productive Maintenance (TPM) <ul><li>Designing machines that are reliable, easy to operate, and easy to maintain </li></ul><ul><li>Emphasizing total cost of ownership when purchasing machines, so that service and maintenance are included in the cost </li></ul><ul><li>Developing preventive maintenance plans that utilize the best practices of operators, maintenance departments, and depot service </li></ul><ul><li>Training workers to operate and maintain their own machines </li></ul>
  33. 33. Establishing Maintenance Policies <ul><li>Simulation </li></ul><ul><ul><li>Computer analysis of complex situations </li></ul></ul><ul><ul><li>Model maintenance programs before they are implemented </li></ul></ul><ul><ul><li>Physical models can also be used </li></ul></ul><ul><li>Expert systems </li></ul><ul><ul><li>Computers help users identify problems and select course of action </li></ul></ul>

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