MAINTENANCE
ORGANIZATION
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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.
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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
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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.
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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
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
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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.
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.
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Manages Control
One 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.
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Reduces Overtime
Maintenance 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.
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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.
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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.
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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
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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 Maintenance
All 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.
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).
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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.
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Centralized Maintenance
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Decentralized Maintenance
All 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
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Decentralized Maintenance
The 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.
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The weaknesses of this structure are that it has potential for
excessive administrative overheads and may lead to conflict between departments.
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Decentralized Maintenance
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Matrix Structure Maintenance
A 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.
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Matrix Structure Maintenance
The 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.
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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.
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.
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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.
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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.
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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.
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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.
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Primary Function
Alterations and New Installations
Three 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.
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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.
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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.
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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.
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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)
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
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In-house
Out-source
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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
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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.)
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
TYPES OF MAINTENANCE COST
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47 (a) Direct cost
Direct 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 cost
The 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 cost
Costs due to lost production because primary equipment is down and no standby equipment is available.
(d) Degradation cost
Those costs occurring in deterioration in the life span of equipment resulting from inadequate and/or inferior
maintenance.
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♣
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 cyclecosting is now often used in the procurement of expensive systems or equipment.
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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.COST ANALYSIS METHOD
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♣
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 willincrease the other cost.
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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 lifeCOST ANALYSIS METHOD
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
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Disadvantages of cost analysis method :
i) It is time consuming and expensive
ii) Collecting the data needed for analysis can be a
trying task
iii) The data available is sometimes of doubtful
accuracy
COST ANALYSIS METHOD
54 Total Cost Preventive maintenance costBreakdown
maintenance
cost
Mai nte na nce cost (RM) OptimumMaintenance
Commitment
Cost
Breakdown Cost
Maintenance
Commitment
Cost
PM Cost
Breakdown Cost
COST ANALYSIS METHOD
Maintenance
Commitment
Cost
PM Cost
Breakdown Cost
Total Maintenance Cost
Maintenance
Commitment
Cost
PM Cost
Total Maintenance Cost
Breakdown Cost
Optimal
COST ANALYSIS METHOD
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
loss is RM300
Contract preventive maintenance by
company DK – RM200 per month
Should PCK contract out preventive
maintenance to DK?
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
Step 4
Compare the two options and select the one
which cost less
# 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
63Step 2
Expected breakdown cost = (expected # of breakdown) x
(cost per breakdown)
= (1.3) x (300)
= RM390 per month
= 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.
