Chapter 1 - Maintenance Organization (Full Chapter) New

MAINTENANCE MAINTENANCE ORGANIZATIONORGANIZATION

1Prepared by: LIANA FAIRUZ BINTI ZAKARIA

JJ616 MAINTENANCE MANAGEMENTCHAPTER 1 : MAINTENANCE ORGANIZATION

2

1. Analyze the concepts of maintenance organization and strategies to solve related problems. 2. Apply the principles of maintenance strategies and elaborate on the significance of a system approach to maintenance. 3. Organize maintenance management plan and schedule that integrates the whole management processes and procedures by group in actual workplace.

COURSE LEARNING OUTCOME (CLO)


3

MAINTENANCE Maintenance is a set of organized activities that are

carried out in order to keep an item in its best operational condition with minimum cost required.

Activities required or undertaken to conserve as nearly, and as long, as possible the original condition of an asset or resource while compensating for normal wear and tear.

Actions necessary for retaining or restoring a piece of equipment, machine, or system to the specified operable condition to achieve its maximum useful life. It includes corrective maintenance and preventive maintenance.

DEFINITION


4

ORGANIZATION A means for making people productive in working together and arranging resources (people, materials, technology, etc).

A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment.

DEFINITION


5

MANAGEMENT The organization and coordination of the activities in order to achieve defined objectives. Management is often

included as a factor of production along with machines, � materials, and money.

Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and implementing an organization's resources in order to achieve the objectives of that policy.

DEFINITION


6

Area of industry that requires of maintenance management : Industrial / Factory Transportation e.g. Automotive, Shipping, Aircraft Hotel and Resorts Plant Hospital Shopping Mall Restaurant

REQUIREMENT OF MAINTENANCE MANAGEMENT


7

The main objectives of having maintenance management are to make sure a business doesn't stop producing, and if it does, to rectify the situation in the safest and most expedient way possible.

In addition, improperly maintained equipment can lead to safety hazards, employee abuse and misuse of machines that will lead to increased overhead costs and potential liability.

Costs of new equipment must be budgeted. Maintenance factors are part of the calculations done to consider return on investment when comparing costs and risks.

OBJECTIVE OF MAINTENANCE MANAGEMENT


8

Maximizing production or increasing facilities availability at the lowest cost and at the highest quality and safety standards.

Reducing breakdowns and emergency shutdowns.

Optimizing resources utilization.

Reducing downtime.

Improving spares stock control.

Optimize the use of available funds, personnel, facilities, and equipment through effective maintenance management methods.



9

Provide accurate data for maintenance and construction program decision making.

Systematically identify maintenance needs or deficiencies and capital improvement needs at all field stations.

Enable preparation of service maintenance and construction budget requests using systematic, standardized procedures.

Monitor and document corrective actions, project expenditures, and accomplishments.Keeping assets and equipment in good condition, well configured and safe to perform their intended functions.



10

Perform all maintenance activities including preventive, predictive; corrective, overhauls, design modification and emergency maintenance in an efficient and effective manner.

Conserve and control the use of spare parts and material.

Commission new plants and plant expansions; and

Operate utilities and conserve energy.



11

Manages ControlOne of the most significant advantages of maintenance management is the management of control. Maintenance can be planned and serves a pre-active instead of a reactive (be put to action after an event has come to pass).

Management control ensures timely schedules, well-defined job descriptions and the availability of standby equipment in times of disaster.

BENEFITS OF MAINTENANCE MANAGEMENT


12

Reduces OvertimeMaintenance management reduces and even eliminates overtime by reducing the chance of surprises. It ensures all loose ends are tied and enough contingency planning is done to manage operations in case of undesirable circumstances and situations.

Management defines tasks and allocates resources effectively, ensuring that all objectives are met in a timely and orderly fashion.



13

Improves Quality

Effective maintenance management improves output and ensures quality. It gives a small amount of leeway to tolerances but within well established control limits.

Employee productivity improves, improving the overall productivity of individual and collective processes. Investing in maintenance management pays off for a company by increasing its revenues.

Increasing productivity such as quality product with maximum quantity will be producing with the lowest cost.



14

Ensures Better Support & Service

A well established and documented maintenance management system provides ample support to production managers, equipment operators, and other personnel and users.

An effective maintenance management program needs to be made public (and/or published) for the benefit of everyone involved. End users can benefit from a better level of support provided by maintenance management. It allows for reliable, on time, and quality service.



15

Allows Easy Error Spotting

Since maintenance management details the goals and objectives of departments and employees, it make it easier for managers to spot errors and deviations from established and desired outcomes.

Reduces Resource Waste

Maintenance management ensures that labor, materials and equipment are well utilized, which reduces waste of allocated resources. Utility costs are lowered and the production of hazardous waste material is decreased with managed effort.



16

Improves Safety

Maintenance management promotes safety and health. It ensures everyone involved knows safety procedures in case of a minor or major disaster.

A well-implemented management program examines the risk of potential hazards and finds ways of addressing them before they pose a risk. Regular housekeeping programs promote fire prevention and safety measures.



17

Centralized MaintenanceAll crafts and related maintenance functions report to a central

maintenance manager. Best suited for small to medium size organizations. Under this type of organization, the responsibilities and

accountability of work must be properly specified for production as well as maintenance personnel to successfully meet the project goals. If this is not taken care of, one department may blame other for any shortfall.

TYPES OF MAINTENANCE ORGANIZATION


18

The advantages of centralization are:(i) Provides more flexibility and improves utilization of resources such highly skilled crafts and special equipment and therefore results in more efficiency;(ii) Allows more efficient line supervision;(iii) Allows more effective on the job training;(iv) Permits the purchasing of modern equipment.(v) Allows economies of scale; (vi) Enables in-depth skill development; and (vii) Enables departments (i.e., a maintenance department) to accomplish their functional goals (not the overall organizational goals).



19

However it has the following disadvantages:-(i) Less utilization of crafts since more time is required for getting to and from jobs;(ii) Supervision of crafts becomes more difficult and as such less maintenance control is achieved;(iii) Less specialization on complex hardware is achieved since different persons work on the same hardware; and(iv) More costs of transportation are incurred due to remoteness of some of the maintenance work.(v) It has slow response time to environmental changes; may cause delays in decision making and hence longer response time; (vi) Leads to poor horizontal coordination among departments and involves a restricted view of organizational goals.



20

Centralized Maintenance



21

Decentralized MaintenanceAll crafts and maintenance craft support staff report to operations

or specific area maintenance. The maintenance organization works under the direct control of a

chief engineer in-charge of production.This tends to reduce the flexibility of the maintenance system as

a whole. The range of skills available becomes reduced and manpower utilization is usually less efficient than in a centralized maintenance.

A decentralized structure would probably experience a lower utilization than centralized one but would be able to respond quickly to breakdowns and would achieve higher plant availability.



22

Decentralized MaintenanceThe strengths of this structure are :

it allows the organization to achieve adaptability and coordination in production units and efficiency in a centralized overhaul group facilitates effective coordination both within and between maintenance and other departments. Speedy decisions due to better line of communication under single control.Maintenance and production people understand each other’s problems better because of their common goals.Interchangeability of workforce, even at the managerial level, is also possible.Better training at the workers’ level can be arranged.



23

The weaknesses of this structure are that it has potential for excessive administrative overheads and may lead to conflict between departments.



24

Decentralized Maintenance



25

Matrix Structure MaintenanceA form of a hybrid structure. Crafts are allocated in some

proportion to production units or area maintenance and to a central maintenance function that supports the whole plant.

The hybrid structure organizes maintenance in areas and whatever exceeds the capacity of each area is challenged to a centralized unit

The strengths are: it allows the organization to achieve coordination necessary to meet dual demands from the environment and flexible sharing of human resources.



26

Matrix Structure MaintenanceThe weaknesses are:

it causes maintenance employees to experience dual authority which can be frustrating and confusing; it is time consuming and requires frequent meetings and conflict resolution sessions. To remedy the weaknesses of this structure a management with good interpersonal skills and extensive training is required.



27

Matrix Structure Maintenance



28

A maintenance organization and its position in the plant/whole organization is heavily impacted by the following elements or factors:

• Type of business ( whether it is high tech, labor intensive, production or service )• Objectives ( may include profit maximization, increasing market share and other social objectives )• Size and structure of the organization• Culture of the organization• Range of responsibility assigned to maintenance.

ROLES IN MAINTENANCE MANAGEMENT ORGANIZATION


29

ROLES IN MAINTENANCE MANAGEMENT ORGANIZATION


30

It is still possible to group activities and responsibilities into two general classifications:

(1)primary functions that demand daily work by the maintenance function and

(2)secondary ones assigned to the function for reasons of expediency, know-how, or precedent.

TYPES OF ROLES/RESPONSIBILITIES


31

Primary Function

Maintenance of Existing Plant Equipment

Responsibility here is simply to make necessary repairs to production machinery quickly and economically and to anticipate these repairs and employ preventive maintenance where possible to prevent them. For this, a staff of skilled engineers, planners, and technicians who are capable of performing the work must be trained, motivated, and constantly retained to assure that adequate skills are available to perform effective maintenance.



32

Primary Function

Maintenance of Existing Plant Buildings and Grounds

The repairs to buildings and to the external property of any plant—roads, railroad tracks, in-plant sewer systems, and water supply facilities—are among the duties generally assigned to the maintenance engineering group. Additional aspects of buildings and grounds maintenance may be included in this area of responsibility.



33

Primary Function

Equipment Inspection and Lubrication

Traditionally, all equipment inspections and lubrication has been assigned to the maintenance organization or function. While inspections that require special tools or partial disassembly of equipment must be retained within the maintenance function, the use of trained operators or production personnel in this critical task will provide more effective use of plant personnel. The same is true of lubrication. Because of their proximity to the production systems, operators are ideally suited for routine lubrication tasks.



34

Primary Function

Utilities Generation and Distribution

In any plant generating its own electricity and providing its own process steam, the powerhouse assumes the functions of a small public utilities company and may justify an operating department of its own.



35

Primary Function

Alterations and New InstallationsThree factors generally determine to what extent this area involves the maintenance department: plant size, multi plant company size, company policy.

In a small plant of a one-plant company, this type of work may be handled by outside contractors. But its administration and that of the maintenance force should be under the same management.

In a small plant within a multi plant company, the majority of new installations and major alterations may be performed by a company-wide central engineering department.

In a large plant a separate organization should handle the major portion of this work.



36

Secondary Function

Storekeeping

In most plants it is essential to differentiate between mechanical stores and general stores. The administration of mechanical stores normally falls within the maintenance engineering group`s area because of the close relationship of this activity with other maintenance operations.



37

Secondary Function

Plant Protection

This category usually includes two distinct subgroups: guards or watchmen; fire control squads. Incorporation of these functions with maintenance engineering is generally common practice. The inclusion of the fire-control group is important since its members are almost always drawn from the craft elements.



38

Secondary Function

Waste Disposal

This function and that of yard maintenance are usually combined as specific assignments of the maintenance department.

Salvage

If a large part of plant activity concerns off grade products, a special salvage unit should be set up. But if salvage involves mechanical equipment, such as scrap lumber, paper, containers, and so on, it should be assigned to maintenance.



39

Secondary Function

Insurance Administration

This category includes claims, process equipment and pressure-vessel inspection, liaison with underwriters’ representatives, and the handling of insurance recommendations. These functions are normally included with maintenance since it is here that most of the information will originate.



40

Maintenance cost can be a significant factor in an organization’s profitability. Hence, maintenance department should treat the matters that make a profit on the industry by take into account the cost of maintenance.

It is important to reduce the maintenance expenses to increase a profit by avoiding unnecessary expenditure.

Among the factors associated with the maintenance expenditure are:-

Spare parts

Maintenance labor (i.e., operator expertise and experience)

Down time (production loss)

COST OF MAINTENANCE


41

Overhead

Consumables

Hand tools, power tools and equipment

Idle equipment or personnel due to equipment breakdown

Missed delivery dates of equipment (including out of stock)

Transportation due to remoteness of some of the maintenance work

Asset condition (i.e., age, type, and condition)

Losses due to inefficient operations of machines

Capital requirement for replacement of machines

COST OF MAINTENANCE


42

In-house Out-source

WHO WILL DO MAINTENANCE?


43

Lack of expertise Too hazardous No experience Bound by contract Top management policy When it is cheaper than recruiting your own staff and

accessible at a short notice of time

DECISION TO OUT-SOURCE


44

Customer service Loss of production Loss of customer goodwill, reputation Machine life Availability of spare parts and expertise Safety to the user / customer Environmental problem (pollutant discharge etc.)

NEED TO CONSIDER


45

Criteria that can be employed to select sources for maintenance capacity:-(i) Availability and dependability of the source on a long term basis;(ii) Capability of the source to achieve the objectives set for maintenance by the organization and its ability to carry out the maintenance tasks;(iii) Short term and long term costs;(iv) Organizational secrecy in some cases may be subjected to leakage;(v) Long term impact on maintenance personnel expertise; (vi) Special agreement by manufacturer or regulatory bodies that set certain specifications for maintenance and environmental emissions.

SOURCE OF MAINTENANCE COST


TYPES OF MAINTENANCE COST


46Relationship between quantity of maintenance and various costs

47

(a) Direct costDirect costs are those costs required to keep equipment operable. These include periodic inspection and preventive maintenance, servicing costs, repair costs and overhaul costs. (b) Standby costThe total cost of operating and maintaining standby equipment needed to be put in operation when primary facilities are either undergoing a maintenance activity or are inoperable for some reason.



48

(c) Lost production costCosts due to lost production because primary equipment is down and no standby equipment is available. (d) Degradation costThose costs occurring in deterioration in the life span of equipment resulting from inadequate and/or inferior maintenance.



COST ANALYSIS METHOD


49

♣ Life cycle cost is the sum of all costs incurred during the life time of an item, that is, the total of procurement and ownership costs.

♣ Due to reasons including market pressure, life cycle costing is now often used in the procurement of expensive systems or equipment.

♣ Life cycle cost analyses involve evaluating the total cost of a product or system over its entire life span.

♣ Life cycle cost will consider the cost of developing or acquiring the asset, the cost of running, operating and maintaining, and the cost of disposal.



50

♣ The aim of life cycle costing is to know the total cost of equipment accruing over its whole life period, which may include all the costs starting from the specification cost.

♣ It is also observed that reduction in one cost possibly will increase the other cost.

♣ Therefore the quality of the product is the major importance.



51

The data to be input into a life cycle cost model include :♪the purchase price of the product♪mean time between failures (MTBF)♪mean time to repair (MTTR)♪average material cost of a failure♪labor cost per preventive maintenance action♪labor cost per corrective maintenance action♪installation costs♪training costs♪the warranty coverage period cost of carrying spares in inventory♪shipment forecasts over the course of the product's useful life



52

When applying the life cycle cost analysis, several major advantages can be achieved:-(a) It may result in selection of equipment that has lower operating and maintenance costs resulting in reduced cost of ownership;(b) The money saved can be used for some other works;(c) It is an excellent tool for comparing the cost of competing projects, controlling program costs, selecting among competing contractors, making decisions associated with equipment replacement, reducing total cost, and conducting planning and budgeting.



53

Disadvantages of cost analysis method :i) It is time consuming and expensiveii) Collecting the data needed for analysis can be a trying taskiii) The data available is sometimes of doubtful accuracy



54

Total Cost

Preventive maintenance cost

Breakdown maintenance costM

aint

enan

ce c

ost

(RM

)

Optimum

Maintenance Maintenance CommitmentCommitment

CostCost

Breakdown CostBreakdown Cost



55


CostCost

PM CostPM Cost




56


CostCost

PM CostPM Cost


Total Maintenance CostTotal Maintenance Cost



57


CostCost

PM CostPM Cost

Total Maintenance CostTotal Maintenance Cost


Optimal Optimal



58

EXAMPLE

The record of computer breakdown for Company PCK for the past 20 months is shown below.

# of breakdown # of months breakdown occurs

0

1

2

3

4

8

6

2

Total 20 months

59

Each time computer breakdown – estimated loss is RM300

Contract preventive maintenance by company DK – RM200 per month

Should PCK contract out preventive maintenance to DK?

60

SOLUTION

Step 1 Calculate expected number of breakdown

(based on past records) if the company continue without service contract.

Step 2 Compute expected breakdown cost per

month with no preventive maintenance contract

Step 3 Compute the cost of preventive maintenance

61

Step 4 Compare the two options and select the one

which cost less

SOLUTION

62

SOLUTION

# of breakdown Frequency

0

1

2

3

4/20 = 0.2

8/20 = 0.4

6/20 = 0.3

2/20 = 0.1

Step 1

Expected # of breakdowns = [(# of breakdown) x (frequency)]

= (0)(0.2)+(1)(0.4)+(2)(0.3)+(3)(0.1)

= 1.3 breakdown per month 63

Step 2Expected breakdown cost = (expected # of breakdown) x

(cost per breakdown)

= (1.3) x (300)

= RM390 per month

SOLUTION

64

Step 3 Calculate Preventive Maintenance Cost

= cost of expected breakdown + cost of service contract

= (1 breakdown per month x 300) + RM200 per month

= RM500 per month

Step 4 Compare

Less expensive to suffer breakdown without service contract.

Breakdown = RM390

Service contract = RM500

Therefore, continue present policy which is the breakdown maintenance because its less expensive.

SOLUTION

65

NEXT LESSON:

CHAPTER 2 :CHAPTER 2 :MAINTENANCE STRATEGIESMAINTENANCE STRATEGIES

END OF THIS SECTION


66

Chapter 1 - Maintenance Organization (Full Chapter) New

Documents

Transcript of Chapter 1 - Maintenance Organization (Full Chapter) New