14s-1

Maintenance

Operations Management

William J. Stevenson

8th edition

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Maintenance

CHAPTER

14s

Maintenance

McGraw-Hill/Irwin

Operations Management, Eighth Edition, by William J. Stevenson Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

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Maintenance

Introduction

Maintenance

All activities that maintain facilities and equipment in good working order so that a system can perform as intended Reactive approach; dealing with breakdowns or problems when they occur Proactive approach; reducing breakdowns through a program of lubrication, adjustment, cleaning, inspection, and replacement of worn parts

Breakdown maintenance

Preventive maintenance

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Maintenance

Maintenance Reasons

Reasons for keeping equipment running

Avoid production disruptions Not add to production costs Maintain high quality Avoid missed delivery dates

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Maintenance

Breakdown Consequences

Production capacity is reduced

Orders are delayed

No production

Overhead continues Cost per unit increases Product may be damaged

Injury to employees Injury to customers

Quality issues

Safety issues

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Maintenance

Total Maintenance Cost

Table 14S.1

Total Cost

Cost

Preventive maintenance cost

Breakdown and repair cost Optimum Amount of preventive maintenance

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Maintenance

Preventive Maintenance

Preventive maintenance: goal is to reduce the incidence of breakdowns or failures in the plant or equipment to avoid the associated costs

Preventive maintenance is periodic

Result of planned inspections According to calendar After predetermined number of hours

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Maintenance

Example S-1

Frequency of breakdown
Number of breakdowns Frequency of occurrence 0 1 2 3 .20 .30 .40 .10

If the average cost of a breakdown is $1,000, and the cost of preventative maintenance is $1,250 per month, should we use preventive maintenance?

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Maintenance

Example S-1 Solution

Frequency of Occurrence .20 .30 .40 .10 1.00 Expected number of Breakdowns 0 .30 .80 .30 1.40

Number of Breakdowns 0 1 2 3

Expected cost to repair = 1.4 breakdowns per month X $1000 = $1400 Preventive maintenance = $1250 PM results in savings of $150 per month

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Maintenance

Predictive Maintenance

Predictive maintenance

An attempt to determine when best to perform preventive maintenance activities

Total productive maintenance

JIT approach where workers perform preventive maintenance on the machines they operate

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Maintenance

Breakdown Programs

Standby or backup equipment that can be quickly pressed into service Inventories of spare parts that can be installed as needed Operators who are able to perform minor repairs Repair people who are well trained and readily available to diagnose and correct problems with equipment

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Maintenance

Replacement

Trade-off decisions

Cost of replacement vs cost of continued maintenance New equipment with new features vs maintenance Installation of new equipment may cause disruptions Training costs of employees on new equipment Forecasts for demand on equipment may require new equipment capacity

When is it time for replacement?