Maintenance Cost

Farid Keyhani, Master of Engineering, April 2009, E.mail: 7my@7my.
com
Implementing Total Productive Maintenance and

Computation the Cost
MAINTENANCE AND RELIABILITY MANAGEMENT
2009
FARID KEYHANI
E-Mail: 7my@7my.com
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Farid Keyhani, Master of Engineering, April 2009, E.mail: 7my@7my.com
Table of Contents
Chapter 1 – Introduction................................................................................................4
Project Background ...................................................................................................4
Problems of the Current System.................................................................................5
Aims and Objectives..................................................................................................6
System maintenance (especially in mechanized model) if well designed and
implemented to answer the practical affairs of conditions is to reduce maintenance
costs. In this paper we have introduced different methods, their history and their
maintenance - computational methods, chart maintenance costs and the use of
methods such as work tables, etc. to reduce the costs................................................6
Chapter 2 - Research Work............................................................................................7
Types of maintenance- introduction ..........................................................................7
Breakdown Maintenance (BM) [9] , [5].................................................................7
Preventive maintenance [9] , [5]............................................................................7
Predictive maintenance [9], [5]..............................................................................8
Condition-Based maintenance (CBM)...................................................................8
From PM to TPM.......................................................................................................9
Total Productive Maintenance (TPM) .....................................................................10
Different Generation of Maintenance.......................................................................11
Why TPM? [11]..................................................................................................11
Six losses in the work place / decrease in plant cost: [9].........................................12
5S – The Foundation of TPM...................................................................................13
Growing Expectations of Maintenance...................................................................13
Firs preventive maintenance.....................................................................................13
Value of Preventive Maintenance........................................................................13
Second predictive maintenance...............................................................................21
React, plan or predict?..........................................................................................22
Condition prediction.............................................................................................23
Predict to protect profit........................................................................................24
Detect, diagnose, Act...........................................................................................24
Predictive Maintenance - Cost Effect ......................................................................25
Planning – aid to predictive maintenance [2].......................................................25
How can escape of too much PM and how can release of plant cost? ...................27
The No. 1 Law You Should Know [6].................................................................27
Reducing Maintenance Cost in a Tough Economic Climate [8]..........................31
Chapter 3......................................................................................................................32
In Conclusion [3], [1]...............................................................................................32
Chapter 4 .....................................................................................................................34
References................................................................................................................34
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Acronyms used in the report

KLIA An Airport in Malaysia, kuala lampur city
BM Breakdown Maintenance
CBM Condition-Based maintenance
TPM Total Productive Maintenance
5S Shine –Straighten – Systemize –Sustain - Sort
RCFA Root Cause Failure Analyses
PLC Programmable Logic Controller
SCADA SCADA Soft were
PDM Predictive Maintenance System
JIT JUST-IN-TIME
TQM Total Quality Maintenance
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Chapter 1 – Introduction
Project Background
.
Today, developing countries in particular nations of South East Asia For
Economic and Industrial Development, and also the technologically developed
countries throughout the world are faced with the ever increasing costs of production,
maintenance and management. Therefore, they have the responsibility to ensure that
they control these costs otherwise runaway costs that are not properly controlled will
ultimately plunge the firm into failure. Among the items forming the cost of goods
sold that need proper monitoring and controlling are direct materials; direct labor and
overhead costs. The area of interest can be about overhead costs of production that
have to be separately analyzed and solutions to the firm’s problems to be done
through appropriate action so that they reduce the costs of production and
maintenance. The most important items forming production cost of indirect materials
are depreciation; maintenance; repairs; electricity and fuel, etc. In order to promote
efficiency in the firm to help enhance its productivity, data analysis of all the data is
also necessary to be implemented and it can also be part of the costs.
The costs of machines and equipment during recent years have been increasing . And
most of the time, discussion about maintenance has been one of the most important
problems managers in industries have been facing and efforts have been made in this
regard to access ways to enhance profitability and increasing efficiency, safety and
decreasing the expenses. By implementing effective controlling programs and with
proper, regular surveillance of the status of equipment and information systems, the
management can decrease direct costs and indirect costs at the industries. In fact by
forecasting using an advanced system, they can find out the approximate time of
breakdown and this can reduce repair costs and reduce interruption-time at the
operating machinery can encourage effective planning for the desirable performance
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of the machines and it can also increase the safety , financial savings and overall, it
can increase economic performance.
Problems of the Current System

Research results in the United States of America shows that between 1979 and 2005,
the maintenance costs had an average growth of between 10% to 15% . The
technology development process and changes to technology in machinery
industries .Predictable growth in maintenance costs and repairs will continue with
greater acceleration
But more interesting results of this research are related to cost analysis. A very
surprising analysis shows that about 35% of the costs are unnecessary costs
and wasted expenses. It can be seen that the remainder that is 65%, actually
.consists of the costs that are necessary
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Aims and Objectives

System maintenance (especially in mechanized model) if well designed and
implemented to answer the practical affairs of conditions is to reduce
maintenance costs. In this paper we have introduced different methods,
their history and their maintenance - computational methods, chart
maintenance costs and the use of methods such as work tables, etc. to
reduce the costs.
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Chapter 2 - Research Work
Types of maintenance- introduction

Breakdown Maintenance (BM) [9] , [5]
Breakdown maintenance is also called as run-to-failure maintenance. It may
be described as a fire-fighting approach to maintenance. Equipment is allowed to run
until failure. Then the failed equipment is repaired or replaced. In these strategies the
maintenance activities are not planned. These strategies are mostly used where the
consequences of failure do not result in significant expenditure. This is the oldest type
of maintenance. It is suitable for small, non-critical, low price equipments. Corrective
maintenance involves running systems to breakdown and can only be applied to
equipment which is inexpensive, largely duplicated and easy to repair or replace and
where loss of the machine or equipment for a particular process or job will not
constitute a significant disruption to production
Preventive maintenance [9] , [5]

Preventive maintenance is a schedule of planned maintenance actions aimed at
the prevention of breakdowns and failures. The primary goal of preventive
maintenance is to prevent the failure of equipment before it actually occurs. It is
designed to preserve and enhance equipment reliability by replacing worn
components before they actually fail. Preventive maintenance activities include
equipment checks, partial or complete overhauls at specified periods, oil changes,
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lubrication and so on. In addition, workers can record equipment deterioration so they
know to replace or repair worn parts before they cause system failure. Recent
technological advances in tools for inspection and diagnosis have enabled even more
accurate and effective equipment maintenance. The ideal preventive maintenance
program would prevent all equipment failure before it occurs.
Predictive maintenance [9], [5]

A sound description of predictive maintenance is the application of
technologies and early detection processes to monitor and detect changes in condition
to allow more precise intervention. Predictive maintenance can be defined as follows:
“measurements that detect the onset of a degradation mechanism, thereby allowing
casual stressors to be eliminated or controlled prior to any significant deterioration in
the component physical state” Under predictive maintenance, diagnostic equipment is
used to measure the physical condition of equipment and it may include vibration
analysis, shock pulse methods, ultrasonic, thermo graphic analysis, oil analysis,
electrical surge comparisons, coolant analysis, wear particle analysis, and
performance trending.
All machines give early warning signs predicting their impending failure.
When one of these indicators reaches a specified level, work is undertaken to restore
the equipment to proper condition. This means that equipment is taken out of service
only when direct evidence exists that deterioration has taken place.
Condition-Based maintenance (CBM)

Condition-based maintenance (CBM) includes scheduled maintenance as well
as corrective maintenance. CBM is not a technology or a technique, but it depends on
other technologies to provide this objective evidence. Temperature, pressure and
vibration are examples of monitoring parameters. BEVIEL Broglie (2000) has also
explained the differences between condition-based maintenance and predictive
maintenance. Unlike the condition-based maintenance policy, predictive maintenance
involves acquiring controlled parameters data which are analyzed to find a possible
temporal trend. This makes it possible to predict when the controlled quantity value
will reach or exceed the threshold values. The maintenance staff will then be able to
plan, depending on the operating conditions, when the component substitution or
revision is really unavoidable.
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THE OPPORTUNITY [10]
Condition Based Maintenance (CBM) promises to deliver improved

maintainability and operational availability of plants while reducing life-cycle
costs
THE CHALLENGE [10]

Prognostics is the Achilles heel of CBM systems - predicting the time to
failure of critical machines requires new and innovative methodologies that will
effectively integrate diagnostic results with maintenance scheduling practices
From PM to TPM
Almost fifty years have passed since Japan imported preventive maintenance
(PM) from the United States. Later adoptions include productive maintenance (PM),
and reliability engineering. What we now refer to as TPM is, in fact, American-style
productive maintenance, modified and enhanced to fit the Japanese industrial
environment.
TPM is now well accepted by the Japanese industrial sector, and is attracting
the attention of Western industrial nations, China and various Southeast Asian
countries.
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Total Productive Maintenance (TPM)

Total Productive Maintenance (TPM) is a maintenance program, which
involves a newly defined concept for maintaining plants and equipment. The goal of
the TPM program is to markedly increase production while, at the same time,
increasing employee morale and job satisfaction. (TPM) is a well-defined and time-
tested concept for maintaining plants and equipment. TPM can be considered the
science of machinery health. TPM brings maintenance into focus as a necessary and
vitally important part of the business. It is no longer regarded as a non-profit activity.
Down time for maintenance is scheduled as a part of the manufacturing day and, in
some cases, as an integral part of the manufacturing process. The goal is to hold
emergency and unscheduled maintenance to a minimum.
TPM was introduced to achieve the following objectives:
• Avoid waste in a quickly changing economic environment.
• Produce goods without reducing product quality.
• Reduce costs.
• Produce a low batch quantity at the earliest possible time.
• Send only non-defective parts to the customers.
TPM involves all Denso Associates. The major difference between TPM and other
concepts is that the Production Operators are directly involved in the process of
maintaining their equipment.
The old notion of "I operate the equipment, You Maintain it" is NOT followed.
NIPPOUNDENSOSO was the first company to introduce plant-wide preventive
maintenance in 1960. By then NIPPOUNDENSOSO had made quality circles,
involving the employees’ participation in implementing Productive Maintenance.
Based on these developments NIPPOUNDENSOSO was awarded by the Japanese
Institute of Plant Engineers (JIPE) the distinguished plant prize for developing and
implementing TPM. NIPPOUNDENSOSO of the Toyota group became the first
company to obtain the TPM certification
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Different Generation of Maintenance
First Ggeneration :
-Fix it when it broke
Second Generation :
-Scheduled overhauls
-System for planning and controlling work
-Longer asset life
Third Generation :
-Condition Monitoring
-Higher availability and reliability
-Better product quality
-No damage to the environment
-Expert systems
-Multi skills and teamwork
Why TPM? [11]

Because of cost! Proper implementation of TPM leads to a organized
and well equipped firm. Some of the features of the industry where TPM has been
successfully implemented are:
• Avoid wastage in a quickly changing economic environment.
• Producing goods without reducing product quality.
• Reduce cost.
• Produce a low batch quantity at the earliest possible time.
• Goods send to the customers must be non-defective.
OR
• A Safer Workplace
• Associate Empowerment
• An Easier Workload
• Increased Production
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• Fewer Defects
• Fewer Breakdowns-Aims for zero equipment breakdown
• Fewer Short Stoppages -Reach zero machine downtime state
• Decreased Costs
• Decreased Waste
Maintenance goal: more production lower coast
Six losses in the work place / decrease in plant cost: [9]

The objective of TPM is maximization of equipment effectiveness. TPM aims
at maximization of machine utilization and not merely machine availability
maximization. As one of the pillars of TPM activities, Kaizen pursues efficient
equipment, operator and material and energy utilization that is extremes of
productivity and aims at achieving substantial effects. Kaizen activities try to
thoroughly eliminate losses. Six major losses that were identified. Details of which is
given below.
1. Equipment failure causes production downtime. Equipment failure requires
maintenance assistance and can be prevented with the use of appropriate preventive
maintenance actions, developed and applied operating procedures, and design
changes. Most importantly, equipment failure requires an improvement effort that
should be the result of a successful partnership between production and maintenance.
Predictive maintenance techniques such as vibration, oil, and thermo graphic analysis
can be used to anticipate equipment failure. If the failure occurs, it is important to use
Root Cause Failure Analysis (RCFA) techniques to identify the root cause of the
problem and effective and applicable solutions that will eliminate or mitigate the
failure occurrence and impact.
2. Set-up and adjustments: this refers to loss of productive time between product
types, and includes the warm-up after the actual changeover. Changeover time should
be included in this loss opportunity and it should not be part of the planned downtime.
3. Small stops are typically less than 5-10 minutes and they are typically minor
adjustments or simple tasks such as cleaning. They should not be caused by logistics.
4. Speed losses are caused when the equipment runs slower than its optimal or
designed maximum speed. Examples include machine wear, substandard materials,
operator inefficiency, equipment design not appropriate to the application, etc.
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5. Losses during production include all losses caused by less-than-acceptable quality

after the warm-up period.
6. Losses during warm-up include all losses caused by less-than-acceptable quality
during the warm-up period.
5S – The Foundation of TPM

TPM starts with 5S. Problems cannot be clearly seen when the work place is
unorganized. Cleaning and organizing the workplace helps the team to uncover
problems. Making problems visible is the first step of improvement.
Growing Expectations of Maintenance

As maintenance passes through various levels of refinement there is a growing
expectation from the manufacturing firms for a unified approach despite diverse
distractions. The technology of maintenance is unending, it’s marked with finding and
applying cost effective ways of avoiding performance deterioration. Prior to TPM
there were several attempts to boost the maintenance by improving the cost
effectiveness of the machine operations. The changing maintenance techniques can be
illustrated as a time dependent factor.
Predictive and preventive maintenance are on peak of new generation of maintenance
(TPM) to decrease our plant cost
Firs preventive maintenance

Value of Preventive Maintenance
There are multiple misconceptions about preventive maintenance. One such

misconception is that PM is unduly costly. This logic dictates that it would cost more
for regularly scheduled downtime and maintenance than it would normally cost to
operate equipment until repair is absolutely necessary. This may be true for some
components; however, one should compare not only the costs but the long-term
benefits and savings associated with preventive maintenance. Without preventive
maintenance, for example, costs for lost production time from unscheduled equipment
breakdown will be incurred. Also, preventive maintenance will result in savings due
to an increase of effective system service life.
Long-term benefits of preventive maintenance include:
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• Improved system reliability.

• Decreased cost of replacement.
• Decreased system downtime.
• Better spares inventory management.
Long-term effects and cost comparisons usually favor preventive maintenance over
performing maintenance actions only when the system fails.
WHEN DOES PREVENTIVE MAINTENANCE MAKE SENSE
Preventive maintenance is a logical choice if, and only if, the following two
conditions are met:
• Condition #1: The component in question has an increasing failure rate. In

other words, the failure rate of the component increases with time, thus
implying wear-out. Preventive maintenance of a component that is assumed to
have an exponential distribution (which implies a constant failure rate) does
not make sense!
• Condition #2: The overall cost of the preventive maintenance action must be
less than the overall cost of a corrective action. (Note: In the overall cost for a
corrective action, one should include ancillary tangible and/or intangible costs,
such as downtime costs, loss of production costs, lawsuits over the failure of a
safety-critical item, loss of goodwill, etc.)
If both of these conditions are met, then preventive maintenance makes sense.
Additionally, based on the costs ratios, an optimum time for such action can be easily
computed for a single component. This is detailed in later sections.
THE FALLACY OF "CONSTANT FAILURE RATE" AND "PREVENTIVE

REPLACEMENT"[12]
Even though we alluded to the fact in the last section of this on-line
reference, Availability, it is important to make it explicitly clear that if a component
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has a constant failure rate (i.e. defined by an exponential distribution), then preventive
maintenance of the component will have no effect on the component's failure
occurrences. To illustrate this, consider a component with an MTTF = 100 hours,
or λ = 0.01, and with preventive replacement every 50 hours. The reliability vs. time
graph for this case is illustrated in Figure 1.1. In Figure 1.1, the component is
replaced every 50 hours, thus the component's reliability is reset to one. At first
glance, it may seem that the preventive maintenance action is actually maintaining the
component at a higher reliability.
Figure 1.1: Reliability vs. time for a single component with an MTTF = 100 hours, or λ =
0.01, and with preventive replacement every 50 hours.
However, consider the following cases for a single component:
Case 1: The component's reliability from 0 to 60 hours:
• With preventive maintenance, the component was replaced with a new one at
50 hours so the overall reliability is the reliability based on the reliability of
the new component for 10 hours, R(t = 10) = 90.48%, times the reliability of
the previous component, R(t = 50) = 60.65%. The result is R(t = 60) = 54.88%.
• Without preventive maintenance, the reliability would be the reliability of the
same component operating to 60 hours, or R(t = 60) = 54.88%.
Case 2: The component's reliability from 50 to 60 hours:
• With preventive maintenance, the component was replaced at 50 hours so this

is solely based on the reliability of the new component, for a mission of 10
hours, or R(t = 10) = 90.48%.
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• Without preventive maintenance, the reliability would be the conditional

reliability of the same component operating to 60 hours, having already
survived to 50 hours, or .
As it can be seen, both cases, with and without preventive maintenance, yield the
same results.
DETERMINING PREVENTIVE REPLACEMENT TIME
As mentioned earlier, if the component has an increasing failure rate, then a carefully
designed preventive maintenance program is beneficial to system availability.
Otherwise, the costs of preventive maintenance might actually outweigh the benefits.
The objective of a good preventive maintenance program is to either minimize the
overall costs (or downtime, etc.) or meet a reliability objective. In order to achieve
this, an appropriate interval (time) for scheduled maintenance must be determined.
One way to do that is to use the optimum age replacement model, as presented next.
The model adheres to the conditions discussed previously, or:
• The component is exhibiting behavior associated with a wear-out mode. That

is, the failure rate of the component is increasing with time.
• The cost for planned replacements is significantly less than the cost for
unplanned replacements.
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Figure 1.2: Cost curve for preventive and corrective replacement.
Figure 1.2 shows the Cost per Unit Time vs. Time plot. In this figure, it can be seen
that the corrective replacement costs increase as the replacement interval increases. In
other words, the less often you perform a PM action, the higher your corrective costs
will be. Obviously, the longer we let a component operate, its failure rate increases to
a point that it is more likely to fail, thus requiring more corrective actions. The
opposite is true for the preventive replacement costs. The longer you wait to perform
a PM, the less the costs; while if you do PM too often, the higher the costs. If we
combine both costs, we can see that there is an optimum point that minimizes the
costs. In other words, one must strike a balance between the risk (costs) associated
with a failure while maximizing the time between PM actions.
OPTIMUM AGE REPLACEMENT POLICY [12]
To determine the optimum time for such a preventive maintenance action

(replacement), we need to mathematically formulate a model that describes the
associated costs and risks. In developing the model, it is assumed that if the unit fails
before time t, a corrective action will occur and if it does not fail by time t, a
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preventive action will occur. In other words, the unit is replaced upon failure or after a
time of operation, t, whichever occurs first.
Thus, the optimum replacement time can be found by minimizing the cost per unit
time, CPUT (t). CPUT (t) is given by:
(5)
Where:
• R(t) = reliability at time t.

• CP = cost of planned replacement.
• CU = cost of unplanned replacement.
The optimum replacement time interval, t, is the time that minimizes CPUT(t). This
can be found by solving for t such that:
(6)
Or by solving for a t that satisfies Eqn. (7):
(7)
Interested readers can refer to Barlow and Hunter [2] for more details on this model.
INTRODUCTION TO REPAIRABLE SYSTEMS EXAMPLE 2
The failure distribution of a component is described by a 2-parameter Weibull

distribution, with β = 2.5 and η = 1000 hours.
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• The cost for a corrective replacement is $5.

• The cost for a preventive replacement is $1.
Estimate the optimum replacement age in order to minimize these costs.
SOLUTION TO INTRODUCTION TO REPAIRABLE SYSTEMS EXAMPLE 2
Prior to obtaining an optimum replacement interval for this component, the

assumptions of Eqn. (5) must be checked. The component has an increasing failure
rate, since it follows a We bull distribution with β greater than one. Note that if β = 1,
then the component has a constant failure rate and if β < 1, it has a decreasing failure
rate. If either of these cases exist, then preventive replacement is unwise.
Furthermore, the cost for preventive replacement is less than the corrective
replacement cost. Thus, the conditions for the optimum age replacement policy have
been met. Using Block Sim, the failure parameters can be entered in the component's
Block Properties window. Select "Optimum Replacement" from the Block menu,
enter the costs and compute the optimum time, 493.0470. Figure1.3 illustrates this.
Figure 1.3: Using BlockSim's Optimum Replacement utility to obtain the results in
Example 2.
Figure 1.4 shows a plot illustrating the cost per unit time.
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Figure 1.4: Graph of cost vs. replacement time for Example 2.
DISCUSSION ON INTRODUCTION TO REPAIRABLE SYSTEMS EXAMPLE

2
The effect of the corrective/preventive cost ratio on the optimum replacement

interval is plotted in Figure 7.7. It can be seen that as the cost ratio increases, the
optimum replacement interval decreases. This is an expected result because the
corrective replacement costs are much greater than the preventive replacement costs.
Therefore, it becomes more cost effective to replace the component more frequently
before it fails.
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Figure 1.5: Replacement interval as a function of the corrective/preventive cost ratio.
Second predictive maintenance

Predictive maintenance programs provide businesses with valuable insight into
the condition of their in-service process equipment, and are crucial in keeping
industrial processes online, streamlining maintenance schedules, and minimising
repair expenses. Today’s industrial environment can be unforgiving, driven by the
quest for quality, throughput and arguably most importantly, profit. With many
businesses operating 24 hours a day seven days a week, it is crucial that their
industrial processes are kept online, and free from interruption. To achieve this,
individual process equipment elements and machinery units must perform at an
optimum level across a range of demanding operating conditions, all while remaining
fault-free. Here, the expectation from the industrial sector has never been higher. An
unavoidable by-product of any industrial process is the wear and tear on individual
pieces of process equipment and their internal components. Breakages, leaks,
overheating and complete breakdowns can lead to lengthy process shutdowns and lost
revenue. These ‘worse-case-scenario’ breakdowns become more prevalent when
process equipment is neglected or poorly maintained. To ensure process equipment
and machinery are kept in optimum working order, a systematic maintenance program
is vital. The ability to accurately predict, and then address, the maintenance
requirements of individual pieces of equipment goes a long way to maximising
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uptime and avoiding costly process shutdowns. Here, predictive maintenance

strategies lead the way. Offering ‘crystal ball’-like insight into the condition of onsite
process equipment, predictive maintenance programs are fast becoming an essential
component of modern industrial processes.
React, plan or predict?

The ongoing maintenance of process equipment is a necessary operating
overhead experienced across nearly every application in the industrial sector.
Equipment, such as motor gear-units, drive some of industry’s most vital processes
and, as a result, need to be kept in good working order. This is often easier said than
done. According to SEW-Eurodrive applications engineer, Luke Schmidt, gear-unit
maintenance has traditionally been carried out three different ways--reactive, planned
or predictive. “Reactive maintenance is the least efficient maintenance strategy,” he
says. “Addressing system faults and breakdowns after they occur, means processes
can be offline for long periods while spare parts are procured and repairs made.
Usually, going offline for any period of time means loss of revenue, which is
unacceptable. Furthermore, specialist service staff can be expensive, especially at
short notice or unusual times.” Planned maintenance programs go some way to
ensuring the wellbeing of gear-units, but can be viewed as unnecessary or wasteful,
depending on the application. “Regular planned maintenance can be beneficial, but is
often not very cost-effective,” says Schmidt. “It can result in unnecessary
maintenance being carried out, which wastes time, materials, labour resources and
money. Unwarranted oil changes and parts replacement, in particular, can have
significant environmental impact.”
Further difficulties can be encountered, as planned maintenance activities are often
carried out over summer shutdown periods--busy peak periods for maintenance staff.
According to SEW-Eurodrive Strategic Marketing and Product Manager, Darren
Klonowski, more sophisticated maintenance strategies, such as a predictive
maintenance program offer clear advantages. “Predictive maintenance allows
businesses to monitor their process equipment, determine the condition and schedule
maintenance accordingly,” he says. “It ensures equipment life is maximised, and helps
keep machinery online, preventing unplanned downtime’’.
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Condition prediction
Predictive maintenance programs are centered around condition monitoring
processes. Here, field mounted sensors continuously detect and collect an array of
performance parameters unique to individual machines. The collected data is then
used to establish the ‘real’ condition of the machine and its components. This kind of
insight allows maintenance technicians to take preventative action before a failure
occurs, therefore avoiding the consequences of that failure. “Condition monitoring
permits the early detection of the initial stages of component wear, which if left
unaddressed, can lead to catastrophic
failures,” says Klonowski. “This level of
foresight is obviously a real benefit,
particularly with respect to gear-units,
which are often subjected to continuous
operation under extremely demanding
conditions. Being able to monitor the
condition of bearings, gears, drive shafts
and lubricating oil gives technicians a
detailed understanding of what
maintenance tasks needs to be carried out
in order to extend the gear-unit life and
keep it online longer.” Such field-
mounted devices monitor a number of
gear unit parameters, including vibration,
oil level and temperature, and brake-
wear. “By monitoring these gear-unit
parameters, on-site
technicians can accurately plan maintenance activities,” explains Schmidt. “It means
maintenance is carried out only when and where it is required which maximizes
component life and sees maintenance resources utilized efficiently.”
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Predict to protect profit

Predictive maintenance programs effectively address two primary
considerations—they protect expensive process equipment, as well as entire critical
process lines.”While there is merit in monitoring individual gear-units for the sole
purpose of avoiding costly repair bills, often it is the protection of the process as a
whole that is more important,” says Klonowski. “The gear-unit being monitored may
be relatively inexpensive, but it might be responsible for driving a production line
with a high throughput rate. If this line goes offline, the business can lose money at an
alarming rate.It’s not just the gear-unit that should be looked at,” adds Schmidt. “It’s
the role of the piece of equipment in the process. The cost, production impact and
flow-on affects associated with that piece of equipment going offline must be
considered. A less-expensive gear unit might be responsible for driving a process that
has a production output rate of $50,000/hr. Predictive maintenance programs go a
long way to ensuring these process stay online, while saving money” According to
Klonowski, predictive maintenance strategies are more costeffective when compared
with reactive and planned maintenance schemes . Reactive maintenance results in
periods of minimal maintenance followed by periods of extreme activity when urgent
or emergency repairs are carried out--usually at an inflated rate,” he says. “Planned
maintenance delivers some cost benefits, but can result in unnecessary and costly
maintenance being performed.”
Detect, diagnose, Act

At the heart of predictive maintenance installations lies a network of field-
mounted condition monitoring devices or sensors linked via I/O to an on-board
frequency inverter or central programmable logic controller (PLC). Each inverter or
PLC can be connected to the plant-wide supervisory control and data acquisition
(SCADA) system, and internet mail server via an Ethernet link . “Such a system
architecture provides real flexibility,” says Schmidt. “It allows machine performance
and condition data to be easily detected, diagnosed and acted on. It can be configured
to alert key personnel, once a pre-determined alarm-point or milestone has been
reached. The alarm can be sent to an on-site HMI (Human-Machine Interface),
SCADA or PC, or alternatively to an off-site control centre, mobile phone or pager.”
Predictive maintenance strategies are especially valuable in remote locations where
gear-unit breakdown and unplanned downtime can take extended periods of time to
remedy. “By remotely monitoring applications in isolated or unsupervised areas,
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technicians can accurately predict maintenance requirements and plan ahead” says
Schmidt. “It means maintenance resources can be deployed at a time that permits
repairs and upkeep to be carried out on multiple pieces of equipment at the same
location.”
In addition to being integrated into plant-wide communications and control systems,
many field-mounted sensors are equipped with onboard displays and indicators.
“Visual indicators provide maintenance staff with an immediate indication of the
gear-unit condition,” says Schmidt. “Some devices actually show the ‘hours to next
service’ of the gear-unit. More sophisticated devices, such as vibration analysis
sensors, allow the early detection of roller bearing and gearing damage, as well as
gear-unit unbalance and resonance problems.”
As pressure mounts to keep industrial wheels turning around the clock, predictive
maintenance is emerging as vital factor in efficient industrial processes. With the
ability to establish the current and future condition of in-service process equipment,
predictive maintenance is set to become more than a maintenance option, but rather a
necessity.
Predictive Maintenance - Cost Effect

1-How Can Get The Most Gain of Predictive Maintenance?
2-How Can Use Predictive Maintenance Useful and careful?
1-1 In first , I will say that statistics show maintenance is not lost of money ;
maintenance is the best way to save our equipment and facilities life-time . Predictive
Maintenance is also a intelligent method to discover fault before shutdown, THEN
MAINTENANCE IS A INVESTMENT.
Planning – aid to predictive maintenance [2]

Three key principles in best practice maintenance planning will be introduced
within this article – those being “The Maintenance Planning Framework”; “The Shut
Calendar”, and; “The Planners Plan”. These three vital “tools” should be within any
Maintenance Planners “toolbox”. The most demanding call on maintenance resources
comes when a plant or facility is shutdown for an extended period of time for
scheduled maintenance. Usually a large complement of work must be scheduled into a
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relatively short period of time. Work schedules may have to be modified. Special
equipment may have to be rented. Contractors may have to be hired to fill additional
labor requirements and special needs. Scheduled shutdowns provide unique
opportunities to a maintenance department not normally available during standard
operation or even during short shutdown periods. Lost capacity can be restored to
An overtaxed facility during an extended shutdown. Major equipment overhauls can
be performed to help prevent future unscheduled shutdowns. Government mandated
inspections and repairs can be accomplished during a shutdown, bringing a plant into
better state of compliance. In order to achieve the above and ensure that the
maintenance activities are completed efficiently and effectively, maintenance
planning needs to be well structured. Based on this, the main objectives and functions
of maintenance planning should be of cussed on ensuring that:
• Proactive preventative maintenance tasks are adequately planned, scheduled and
implemented in accordance with Business Centered Maintenance.
• All maintenance activities that improve the reliability and availability of the
operating equipment are completed on time.
• All maintenance activities are undertaken in a planned and proactive manner which
increases optimises the productivity of the maintenance personnel.
• All resources are readily available at the right time to allow maintenance to be
completed in accordance with the maintenance plan.
• All personnel are adequately informed about what maintenance tasks are to be
completed, when this is to occur and on what equipment.
• Information is appropriately captured and recorded to allow maintenance personnel
to make informed and accurate decisions about what maintenance needs to be
performed, and when to perform this so that the operating equipment meets the needs
of the production department in a timely and cost effective manner. Alternatively,
maintenance planning can be referred to as ensuring that the maintenance activities
are completed at the right time, in the right manner, with the right tools and the right
skilled resources – that is, it is all about ensuring that it is “done right the first time”.
This can be further simplified in terms of the role / function that must be provided /
undertaken by the Maintenance Planner in order to ensure that the maintenance
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activity / job is “done right the first time
How can escape of too much PM and how can release

of plant cost?
16 Golden Way to save time and money on preventive maintenance:
1. PM Consumes Too Many Resources: Many maintenance managers believe
their PM program is simply bigger than it should be. They feel like they don’t have
enough manpower to manage all of their PM’s along with the other important
maintenance work, too.
2. Lack of Results: Despite all of the time and money being spent on
preventive maintenance, there are still way too many unexpected equipment failures.
Case in point: During a recent chemical plant tour, the frustrated maintenance
manager said, “We just PDM that machine, and it failed a short time later anyway. So
why didn’t we catch the problem with the PM?” Why indeed. So in a nutshell, the
problem with preventive maintenance is that it takes too much time and produces too
little results.
The No. 1 Law You Should Know [6]

The number one law of economics you need to know is based on a principle
discovered over 200 years ago. You’ve probably heard of it – it’s called the Law of
Diminishing Returns. As any good MBA student can tell you, this law states that as
one production factor increases while the others remain constant, overall production
decreases after a certain point. In plain English, it means as you increase preventive
maintenance, production output eventually decreases. The following chart illustrates
this. You see, there’s a fine line between doing too much, too little and just the right
amount of preventive maintenance. Clearly, there’s a point at which increasing PM
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hurts the bottom line. The reason? Simple. Most PM procedures require that the
equipment is shut down. That means uptime goes down, so production output
eventually goes down too. Meanwhile, maintenance costs go up. So how much
preventive maintenance is too much? According to a private study, best practice
programs generate 15% of their maintenance work from PM inspections. Another
15% is corrective work identified by those inspections.
The real truth about PM

By definition, all PM’s are time-based. That means either calendar time or operating
time dictates when an asset should be inspected, cleaned, adjusted, replaced or
reconditioned. But is there really a direct relationship between the time equipment
spends in service and the likelihood it will fail? In short, the answer is no. The truth is,
most equipment failures are not age related. In fact, for complex systems, the majority
of failures will occur at random. Consider the facts. The following graphs demonstrate
failure probabilities relative to the age of the equipment itself: First, it’s important to
understand this data comes from the airline industry, where maintenance and
operations standards are exceptionally high. That gives us a true picture of how
equipment fails when it is maintained and operated correctly. The reality is, 89% of
equipment failures are not age-related. Therefore, there’s no amount of time-based
preventive maintenance which can manage these failures effectively. That’s why
using time as the primary basis for your maintenance strategy is inherently flawed. It
will have very little impact on overall reliability. From a risk standpoint, it’s much
safer to assume that equipment failures can happen at any time.
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CONSIDER PDM FIRST

No matter what kind of industry you’re in, predictive maintenance (PdM) is
almost always more cost-effective than people as your first line of defense against
equipment failures. Based on studies done in major industries including chemicals,
paper, metals, automotive and power generation, something interesting happens as
more equipment is added to the PDM program.
OVERALL MAINTENANCE COSTS GO DOWN. HERE’S WHAT THE DATA
SHOWS: [6]
As you can see, there is a direct
correlation between high levels of PdM
and low overall maintenance costs –
measured as a percent of the assets’
replacement value. On the other hand,
the data also shows that increasing the
size of a PM program directly results in
higher maintenance costs. The graph
below illustrates:
Why is the case? Consider the facts:

Predictive maintenance inspections can identify problems much earlier on the failure
curve than preventive maintenance (see chart below). So PDM gives you more time to
plan, schedule, make the repairs and avoid unscheduled downtime.
And that’s really the secret, that predictive maintenance drives more planned work.
What that means is:
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• Jobs done faster, safer and at a lower cost.

• Studies show that a well-planned job takes only half as much time to execute as an
unplanned job.
• Each dollar invested in planning saves three to five dollars during execution
And don’t forget, most predictive maintenance
inspections require equipment to be up and
running. That means downtime for maintenance
is minimized – a key issue at plants where the
value of downtime is $5,000, $10,000, $20,000
an hour or more.
CONSIDER THE TIME FACTOR [6]

Do you struggle to find the time to perform PM’s? Is there a significant
number of PM’s not being completed on time? Are PM’s frequently deferred? If so,
that’s another red flag. Look, all PM’s are time-based, so it’s important to do them
“on time.” What that means is, a PM should be done within a timeframe of plus-or-
minus 10% of its due date. For example, if a PM is scheduled every thirty days, it
should be completed within a three-day window of the due date. The following chart
illustrates:
Frankly, one of the hidden problems of preventive maintenance is there’s no
immediate, observable consequence of not doing it. For example, if you don’t change
the oil in your car at 3,000 miles, it’s probably not going to break down the next day.
However, you can’t defer preventive maintenance if you want to have an effective
reliability program. PM may not be the most urgent or exciting work you do, but it’s
definitely among the most important.
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Reducing Maintenance Cost in a Tough Economic Climate [8]

The current economic climate dictates that cost management is a critical
activity for many companies and their managers. Maintenance is very often seen as an
area where cost cutting targets can be easily and quickly achieved. Many maintenance
managers take the view that this type of philosophy always ends up with increased
costs in the future. This is not true in many cases.
The most maintenance departments are more reactive than they should be and
because of this, they over spend and underperform. Costly, inefficient and ineffective
Preventive Maintenance (PM) programs result in a vicious cycle of reactive
maintenance. High levels of reactive maintenance destroy the ability to plan and
schedule and reduce labor productivity by 50% or more (Palmer 1999). Reactive
maintenance also results in massive inventories of, or express delivery charges for,
spare parts. The combination of ineffective PM and high levels of reactive
maintenance results in a massive overspend on maintenance and provides fertile
ground for cost reduction.
It is not uncommon for a company to
consume twice the maintenance labor it
needs.
For example, the Carbon production
facility in an Aluminums Smelter
reduced its annual maintenance labor by
over 4,000 man hours, while, at the same
time, increasing plant availability. The
table below shows the detail.
The company reported that this was done by:
• Reviewing the various options of scheduled discard vs. condition based strategies
(especially in lubrication tasks)
• Gaining a clear understanding of the reasons for each PM task and documenting
them. Eliminating tasks that were not linked to cost effective prevention of failure
• Setting inspection frequencies to match rates of equipment function deterioration
• Avoiding duplication of effort between various trades and operations groups.
The reduction was not a paper figure – the labor reductions were real savings
computed by comparing one year’s executed hours to the next.
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Chapter 3
In Conclusion [3], [1]
Many failures happen suddenly and randomly. Because of this some failures
will happened regardless of the maintenance program. In such case defect elimination
or consequence mitigation are the only options to reduce the impact of failure.
Objective and manufacturing are cost, quality, and delivery.
• Maintenance is a total to achieve these objective
• Maintenance must be integrated into the manufacturing function
• Maintenance strives to eliminate downtown and minimize breakdown
cost
• Computerized maintenance management software, that’s easier to use,
that it is to say. Formal scheduling answer the question how much
work should we do next week. Scheduling is a matter of control.
• CBM (condition based maintenance) Also referred as prediction
maintenance, this is a method where by facility detection is constantly
or periodically monitored by facility diagnosis and maintenance is
conducted when an abnormality is found.
• CM (corrective maintenance) is the maintenance wore which improves
the existing \facility to a state where it is free of breakdown (reliable),
easy to check and repair (good maintenance), easy to operate and
operates safety.
• Predictive maintenance at dell includes standardize routes preformed
by all maintenance technicians. Routes utilize visual inspection,
ultrasound, vibration, and infrared. Technicians are assigned to an area
and given short duration, dedicated routes to complete. Scheduling is
key to assure equipment, tools and technician availability.
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Result
For zero failure maintenance of basic condition observe the operating
condition recover deterioration increase operating and maintenance skill.
THEN MAINTENANCE IS A INVESTMENT AND IT’S NOT LOST
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Chapter 4
References
[1] Mark Burgett, Rich young, (2007), a journey to predictive maintenance, AMMJ,
[2] Mike Killick, Gary Thomas, (2004)a journey to best practice Maintenance
Planning, AMMJ,
[3] Doc Palmer, (2006), a journey to Maintenance Scheduling, AMMJ
[5] Kamran Shahanaghi, Seyed Ahmad Yazdani, (2009), a journey to Analyzing the
effects of implementation of TPM in the manufacturing companies, World journal of
Modelling and Simulation
[6] Andy page, George Karalexis, (2009), a journey to ways to save time and Money
on preventive Maintenance, AMMJ, vol 22, no 23,page 22
[7] SEW-Eurodrive,(2009) a journey to the Predictive Maintenance “crystal ball”,

AMMJ
[8] Steve Turner,(2009), a journey to Peducing Maintenance Costs in a tough

Economic climate, AMMJ
[9] Dr. j.Venkatesh, (2007) six losses in the work place, types of maintenance, 2-15
pages
10] Dr. George Vachtsevanos,(2003), Cost and complexity trade-offs in prognostics

NDIA Conference on intelligent vehicles in Travers city
[11] Dr.N.Suren Dwivedi, (2005), Total Product Maintenance in Lean Manufacturing,

University OF Louisiana at Lafayette
[12] Barlow, R. and L. Hunter, Optimum Preventive Maintenance Policies,

Operations Research, Vol. 8, pp. 90-100, 1960. [book]
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Maintenance Cost

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Farid Keyhani, Master of Engineering, April 2009, E.mail: 7my@7my.

Implementing Total Productive Maintenance and

MAINTENANCE AND RELIABILITY MANAGEMENT

Acronyms used in the report

Problems of the Current System

Aims and Objectives

Chapter 2 - Research Work

Types of maintenance- introduction

Preventive maintenance [9] , [5]

Predictive maintenance [9], [5]

Condition-Based maintenance (CBM)

THE OPPORTUNITY [10]

Condition Based Maintenance (CBM) promises to deliver improved

THE CHALLENGE [10]

Total Productive Maintenance (TPM)

Different Generation of Maintenance

Why TPM? [11]

Six losses in the work place / decrease in plant cost: [9]

5. Losses during production include all losses caused by less-than-acceptable quality

5S – The Foundation of TPM

Growing Expectations of Maintenance

Firs preventive maintenance

There are multiple misconceptions about preventive maintenance. One such

Long-term benefits of preventive maintenance include:

• Improved system reliability.

WHEN DOES PREVENTIVE MAINTENANCE MAKE SENSE

• Condition #1: The component in question has an increasing failure rate. In

THE FALLACY OF "CONSTANT FAILURE RATE" AND "PREVENTIVE

However, consider the following cases for a single component:

Case 1: The component's reliability from 0 to 60 hours:

Case 2: The component's reliability from 50 to 60 hours:

• With preventive maintenance, the component was replaced at 50 hours so this

• Without preventive maintenance, the reliability would be the conditional

DETERMINING PREVENTIVE REPLACEMENT TIME

• The component is exhibiting behavior associated with a wear-out mode. That

Figure 1.2: Cost curve for preventive and corrective replacement.

OPTIMUM AGE REPLACEMENT POLICY [12]

To determine the optimum time for such a preventive maintenance action

• R(t) = reliability at time t.

Or by solving for a t that satisfies Eqn. (7):

INTRODUCTION TO REPAIRABLE SYSTEMS EXAMPLE 2

The failure distribution of a component is described by a 2-parameter Weibull

• The cost for a corrective replacement is $5.

Estimate the optimum replacement age in order to minimize these costs.

SOLUTION TO INTRODUCTION TO REPAIRABLE SYSTEMS EXAMPLE 2

Prior to obtaining an optimum replacement interval for this component, the

Figure 1.4: Graph of cost vs. replacement time for Example 2.

DISCUSSION ON INTRODUCTION TO REPAIRABLE SYSTEMS EXAMPLE

The effect of the corrective/preventive cost ratio on the optimum replacement

Figure 1.5: Replacement interval as a function of the corrective/preventive cost ratio.

Second predictive maintenance

uptime and avoiding costly process shutdowns. Here, predictive maintenance

React, plan or predict?

Predict to protect profit

Detect, diagnose, Act

Predictive Maintenance - Cost Effect

Planning – aid to predictive maintenance [2]

activity / job is “done right the first time

How can escape of too much PM and how can release

The No. 1 Law You Should Know [6]

The real truth about PM

CONSIDER PDM FIRST