Evaluating The Effectiveness Of Maintenance Strategies Slides

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Evaluating The Effectiveness Of Maintenance Strategies Slides

  1. 1. Evaluating the effectiveness of maintenance strategies
  2. 2. Introduction <ul><li>(Pinjala and Pintelon, 2004) conducted survey within Belgian industries, 71% out of 46 respondent considered that maintenance could be used as a tool for enhancing company’s competitive advantage. </li></ul><ul><li>2 groups: </li></ul><ul><ul><li>Concern consistencies </li></ul></ul><ul><ul><li>Concern contribution </li></ul></ul><ul><li>This paper, Hayes and Wheelwright’s 4 stage framework is applied in identifying and evaluating the effectiveness of a given maintenance strategy. </li></ul>
  3. 3. Maintenance strategy and its effectiveness <ul><li>Swanson (2001) explains 3 types of maintenance strategies: </li></ul><ul><ul><li>Reactive strategy (CM) </li></ul></ul><ul><ul><li>Proactive strategy (PM and PDM) </li></ul></ul><ul><ul><li>Aggressive strategy (TPM) </li></ul></ul><ul><li>Tsang (2002) identifies 4 strategic dimensions of maintenance: </li></ul><ul><ul><li>Service-delivery option </li></ul></ul><ul><ul><li>Organization and work structuring </li></ul></ul><ul><ul><li>Maintenance methodology </li></ul></ul><ul><ul><li>Support systems </li></ul></ul><ul><li>Often leads to the simplification of the maintenance function just as corrective and/or preventive maintenance. </li></ul>
  4. 4. <ul><li>Define as a series of unified and integrated pattern of decisions made in 4 structural and 6 infrastructural decision elements. (Pinjala and Pintelon, 2004). Table 1. </li></ul><ul><li>Cholasuke et al. (2004) studied the status of maintenance management in UK manufacturing organizations based on a pilot survey. They categorized the maintenance effectiveness measures into 9 areas based on a literature study: </li></ul><ul><ul><li>Policy deployment and organization </li></ul></ul><ul><ul><li>Human resources management </li></ul></ul><ul><ul><li>Financial aspects </li></ul></ul><ul><ul><li>Continuous improvement </li></ul></ul><ul><ul><li>Contracting out maintenance </li></ul></ul><ul><ul><li>Maintenance approach </li></ul></ul><ul><ul><li>Task planning and scheduling </li></ul></ul><ul><ul><li>Information management and CMMS </li></ul></ul><ul><ul><li>Spare parts management </li></ul></ul>
  5. 5. Table 1
  6. 6. <ul><li>Campell and Jardine (2001) propose 5 levels of maintenance excellence: </li></ul><ul><ul><li>Novice </li></ul></ul><ul><ul><li>Foundation </li></ul></ul><ul><ul><li>Apprentice </li></ul></ul><ul><ul><li>Journeyman </li></ul></ul><ul><ul><li>Mastery </li></ul></ul><ul><li>This paper mainly considers the consistency and contribution criteria suggested by Hayes and Wheelwright. </li></ul>
  7. 7. Methodology <ul><li>Evaluating such strategy can be much more complex. </li></ul><ul><li>Appropriateness of a given maintenance strategy should mainly depends upon manufacturing and business requirements. </li></ul><ul><li>Should internally consistent with the strategy elements (Table 1) </li></ul><ul><li>Should also externally consistent with the business environment (e.g. governmental restraints on safety and the environment). </li></ul>
  8. 8. <ul><li>Based on the consistency and contribution criteria, Hayes and Wheelwright develop a 4-stage framework for manufacturing’s strategic role in a company. </li></ul>
  9. 9. <ul><li>The degree of maintenance strategy effectiveness can be evaluated on a continuum from stage 1 to stage 4. </li></ul>
  10. 10. Case example <ul><li>Stage 1: Internally neutral </li></ul><ul><ul><li>DSN (not its real name) annual sales of over $800million. </li></ul></ul><ul><ul><li>Employ 5000 people. </li></ul></ul><ul><ul><li>Maintenance employ 24% of the total workforce. </li></ul></ul><ul><ul><li>Demand exceed supply. </li></ul></ul><ul><ul><li>Downtime is around 16% while competitors maintain it at less than 10%. </li></ul></ul><ul><ul><li>Outsources more than 50% of its maintenance activities. </li></ul></ul><ul><ul><li>More than 70% of its maintenance is done on a reactive basis. </li></ul></ul><ul><ul><li>Total annual budget on maintenance is around $30million, represent 15% of total operating costs. </li></ul></ul>
  11. 11. Case example <ul><li>Stage 2: Externally neutral </li></ul>
  12. 12. Case example <ul><li>Stage 3: Internally supportive </li></ul>
  13. 13. Case example <ul><li>Stage 4: Externally supportive </li></ul>
  14. 14. Conclusion <ul><li>This paper mainly represents an attempt to explore the operationalization of Hayes and Wheelwright’s four-stage framework with respect to maintenance strategies. </li></ul><ul><li>The case examples indicate that maintenance, if managed properly, can also contribute to enhancing the competitive advantage of a company. </li></ul><ul><li>This study shows that companies that seek a balance of excellence in all of their functions perform better. </li></ul>

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