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Pag 1

Hi, Lozano Hernan Gonzalez, the trainer of Module Activities Building Tactics in
the area of Maintenance. In this first class, try to understand what strategy,
how to apply that concept in maintenance and what are the objectives.
Page 2. Since the 1930s, the design and maintenance structure shows three distin
ct stages or generations. The first generation is characterized by a low level o
f industrial mechanization beginning of the second world war. The availability a
nd prevention of failures were not a high priority in companies. The simplicity
of oversized equipment and a lot of them facilitated repair by qualified personn
el without highly specialized. This allowed making practically-based maintenance
routine cleaning and lubrication without systematic maintenance schedule, as cu
rrently used. As a result of a significant increase in demand and a drastic redu
ction of manpower caused by World War II, was progressively increased industrial
mechanization entering the second generation. The industry began to rely on the
ir equipment which began to increase their level of complexity. Also stops for r
epairs became more important, why it was necessary to prevent failure characteri
stics of equipment that resulted in the mid 60s the concept of preventive mainte
nance, managed to reduce unscheduled downtime, and allowed to plan better predic
tion of maintenance. A direct consequence of the implementation of preventive me
thods was a significant increase in maintenance costs compared to operating cost
s, forcing the introduction of maintenance planning and control. Also the increa
se of fixed assets of enterprises led to seek measures to maximize the life of t
he equipment. This period was extended to mid-70s, where we enter the third gene
ration. The same is characterized by sustained growth of mechanization and autom
ation awarded a progressive relevant to the parameters of availability and relia
bility of the systems, spurred by development and technological research. The st
ops for repairs, reducing production increased operating costs and interfering w
ith customer service is magnified due to the orientation of companies using syst
ems "just in time." Likewise, the increase in failures associated with the highe
r degree of automation increases against the ability to meet the quality require
ments of products and services. Another aspect that became important was the occ
urrence of failures with consequences in terms of safety and the environment whi
ch are incompatible with the standards adopted by the recent regulations in this
regard. Considering the steady increase in the costs of acquisition and operati
on of physical assets loa, can be understood that the maintenance has to maximiz
e battery life and optimize the parameters the efficiency parameters of the same
gender all increased maintenance costs .
Pag 3 In this table we can appreciate the changing expectations of maintenance.
We see that in the first generation, the current system arose as such as repair
after failure. Already in the second generation displays the need for parameter
"availability" as a transcendent order to compete in terms of delivery of produc
ts, also acquired importance of economic factors in the maintenance, since the i
ncrease in the cost of new higher technology equipment becomes important to maxi
mize the life of them. Because of the importance acquired maintenance, the syste
ms used to acquire a larger entity companies, increasing its costs which raises
the need to reduce them. Finally we see that in the third generation, in additio
n to relevant items of the second, add the concepts of plant reliability and pro
duct quality. All this is accompanied with regulations regarding safety and the
environment, they begin to be part of the different laws in the countries and th
e awareness among the population. This forced companies to improve their mainten
ance€either from the point of view of the product and from the image that they m
ust obtain to maintain his prestige in on consumers and the general population.
Pag 4 Here we can as were the techniques that were used for maintenance. During
the first generation practice is limited to corrective repairs staff did not nee
d highly specialized and with a relatively simple maintenance organization. Sinc
e entering the second generation adopting a preventive maintenance system, which
means an organization that allows the planning and control activities. This new
situation was improved by the incorporation of IT tools, which is composed of s
low computers and large-sized, in our current conception but at this time were o
f a technological breakthrough that offers a great help to the maintenance of bo
th systems in the lanning and in control. By accessing the current generation. T
hird, we find a new approach to the design concepts incorporated maintenance of
equipment reliability. This is why the use of new techniques such as condition m
onitoring, risk studies and analysis of failure modes and effects. As a result,
expert systems will be incorporated and created multidisciplinary teams for main
tenance. The maintenance took a relevant participation in productive systems and
luckily computer technology development with these changes by introducing moder
n computer systems market smaller and much faster than those that were used in t
he second generation, which allowed greater efficiency in planning and control s
Pag 5 ESTARTEGIA WHAT IS? Well let's see where that cake, we find in the diction
ary definitions such as "is the art to conduct military operations" or "the art
of combining the movement of troops up to the time of the battle," or "art, trac
es to run a business." We also find that it is defined as that "is the science o
f military movements that run to take an army to battle on favorable terms given
." This leads us to investigate from when using that term and see that the word
"strategy" dates back to the period just after the wars of Frederick II of Pruss
ia. (1712-1786). It is clear that only in that period begins to use the concept
with Tactics, which is defined as "the revolutions that makes an army in the bat
tlefield or in the presence of the enemy during combat." That is only during the
eighteenth century separated the two concepts. We can also see that it is a bus
iness concept that came into use over a period much closer, and its military ori
gin. For us, the broader concept is to: "Art, traces to run a business."
P. 6 The first thing is to define strategy, but we are modern authors who have w
orked to provide definitions of this concept have tended to pay attention to dif
ferent aspects relevant to the following mismo.A take some dimensions that allow
us to assess the complexity and diversity of issues that different authors anal
yzed to define strategy. The first place we can appoint analysis, "as a means to
establish the purpose of the organization in terms of long-term objectives, act
ion programs and priorities in distribution" and was described by Chandler in 19
62 and Schendel and Hatten in 1972. The second aspect, we find that the concept
was defined "in the field that the company will compete, being considered in the
definition of business in which the company is or will be in the future. In thi
s aspect was discussed by Learned, Christensen, Andrews and Guth in 1965. In a t
hird dimension we find that Gluek in 1976, gave the following definition: "Strat
egy is a unified, comprehensive and inclusive, designed to ensure they are achie
ved the basic objectives of the company." Therefore we are adopting definitions
"as u coherent project, unifying and integrating the entire enterprise." In a fo
urth option we found that was defined from one perspective: "in response to exte
rnal opportunities and threats and internal strengths and weaknesses." As Steine
r and Miner in 1977, Argris Mintzteberg in 1979 and in 1985, which analyzed from
that point of view. Also authors like Porter between 1980 y1985,€analysis devel
oped from a "as the primary means for achieving competitive advantage" and final
ly we mention that from the point of view "as a motivating force for members or
holders of interests", we find that Andrew in 1980 and 1985 define Chafee concep
t of strategy. As we can appreciate the concern of the definition of the term ap
plied to business strategy, was discussed in depth during the second half of the
twentieth century, a period that coincides with the second and third generation
of maintenance, generations that correspond to important technological developm
ent and trade of these last decades worldwide.
P. 7 mentioned thinkers used to define multidimensional strategy encompassing co
ncepts s various criticisms of the company and have no contradictions, so changi
ng it can reach a more unified and comprehensive strategy. The Strategy tells us
that is: a pattern that provides coherence, unified and integrated decisions, d
etermines and reveals the purpose of resources, select the business that is or w
ill be involved in the organization; defines the type of human organization and
economic the company is or intends to be, seeking to achieve benefits that can b
e sustained in the long run in each of their businesses, based on reacting appro
priately to the opportunities and dangers in the environment, and the strengths
and weaknesses of the organization, committing all company levels: level of busi
ness and functional levels, and defining the nature of the economic contribution
s it intends to make to its partners or carriers of interest. Viewing this from
the unifying point of view, we can say that the strategy becomes a fundamental f
ramework to ensure continuity of the organization by facilitating their adaptati
on to the changing environment.
P. 8 We can not separate the concept of strategy the reality of the difficulties
associated in the formulation and implementation of this can be seen ella.por C
ollect & Doz in 1979 defined the strategy as a result of three different trainin
g processes Strategy: the first related to the knowledge possessed by those invo
lved in the definition of environmental strategy. The second with the process of
formulating the strategy and acquire the necessary commitments prior to impleme
ntation. And finally we see that there is a process in which power is exercised
to influence the purpose of the enterprise and the allocation of resources. Thes
e authors raided even more by stating that "the job of CEO should be considered
to direct these processes."
Pag 9 As we can see the term strategy indicates a greater complexity than that i
nitially could be seen, the concept being studied by several authors and thinker
s. Before it selected these two definitions that allow us to appreciate normal r
ange of concepts that we have the term, but we can not always express correctly,
highlighting why they are planning to anticipate changes using the opportunitie
s facing us, and that are the same balance between learning from the past and sh
aping new courses of action.
Page 10 Arming the best maintenance strategy for industrial plant can be a very
difficult task and a surprising complexity. We all have an idea of how difficult
it is to determine the best strategy. Try to raise what are the various factors
involved in the process and thus may lead to a definition which is the best res
olution of the problem.
Page 11 First we make a brief analysis of the basics of process management. In t
his table we can see a structure that identifies and maps the principles of mana
gement in which we note that we determine the function, in our case the maintena
nce department. then define the objectives to be achieved, this being a major ta
sk in the whole development process, managed an organization that allows us to k
eep on track. final element we must have control systems to verify if the plan a
nd design the organization meet its purpose and if necessary make modifications
that allow us to correct these deviations. as we see this is a very complex and
we can see that there are several items that must be present in the management p
Page 12 As can be seen in the previous paragraph is the first thing to define th
e role of maintenance department. one way to define is the one shown in the slid
e.€ie relate to the procurement and control of plant reliability. in reality the
function can be affected by a dynamic relationship with the production system a
nd is directly related to the objectives to be met by the maintenance department
, for which we will then analyze the factors influencing these goals, giving dyn
amism to the entire system.
Pag 13 start analyzing the methodology for the development of strategic thinking
. At one point we find a definition of the function. This allows us to make an o
bjective analysis of maintenance. It could be defined as: "meeting the preventiv
e and corrective maintenance to enable the plant to operate according to product
ion needs." But in reality the definition of these is much more complex, involvi
ng different areas of the company. In this case we see that the corporate object
ives and production will affect the definition of maintenance, since maintenance
must be consistent with the production, which likewise respond to corporate goa
Page 14 In a second step in the strategic development we see that after determin
ing the objective, we must make a prognosis will depend on production requiremen
ts. This forecast should be taken into account in the next issue of maintenance.
That forecast should be determined as we faced the maintenance according to pro
duction needs, it will show by example, how many work shifts the operational are
a, when there will be scheduled stops, etc., And this information is crucial for
the strategy.
Pag 15 After this we will have to take into account the Plan of Life and Program
ming. These aspects will be influenced mainly by four items of great importance.
The structure of the plant, will indicate the level of equipment that is used i
n the same, determining the type of maintenance to be carried out, being defined
primarily preventive maintenance and consequently the resulting correction. Als
o, teams will have their own failure characteristics that should be considered f
or programming and affect the life plan. You will also have an influence on all
procurement policies and requirements of senior management in relation to the lo
ngevity and safety conditions to be fulfilled. All these factors strongly influe
nce the level and nature of the workload (preventive, corrective and amendments)
Pag 16 Since the workload analysis, we see that this will lead us to carry out a
proposed budget, which must be approved by the highest authorities of the Compa
ny. But on the other hand, if we analyze the workload independently, in relation
to factors such as plant design, we see that this aspect has a considerable inf
luence on the nature and design of the Maintenance Organization. The main task o
f the maintenance organization is allocating resources to the workload and thus
ensure that the factors of desired plant output are obtained.
Pag 17 The structure of Appeal is the geographic location of the workforce, spar
e parts, tools and information, size and logistics. It will take many interrelat
ed decisions as where to locate the workforce?, How to extend the internal flexi
bility?, Who should take responsibility for the parts?, Who will be responsible
for the information?. The determination of the structure of resource will be aff
ected by the layout of the plant in reference to the allocation of tasks in the
labor force, and that different guilds and between different categories and occu
pations that we restrict the use of hand force, in such cases must make arrangem
ents to bring the positions to allow for benefits of the Company and Staff. Fina
lly we mention that it is common to use hired labor for different activities, th
is will demand a special study on the allocation of those resources to the plant
structure, determining the workload required activities. Everything discussed s
o far we determined the plan of work to be done to meet the objectives set out t
imely maintenance.
Pag 18 To meet the work plan, we must design an administrative structure mainten
ance. The same will be used for decision making at different levels,€assigning w
ork roles ordained by the authority and responsibility to decide when and how to
perform various maintenance tasks. Whatever type of administrative structure th
at decides to use, there is always an administrative structure. At the same infl
uences we find that the personnel policy of the company, either in the design of
the same as in the allocation of resources, so that while we are in the mainten
ance area we can not escape the general rules the company. That is why the desig
n of the structure is not an independent activity maintenance. We must also unde
rstand that the design should take into account the relationships that it will h
ave with the production area, either in the high structure (where establishing t
he roles of planners and supervisors), as well as Baja Structure where they act
in constant interaction with their peers in production.
Page 19 The most important element in the design of the maintenance organization
, is the system of work plan. This defines how the work will be planned, schedul
ed, assigned and controlled. To do this we need to design an efficient system of
maintenance control, allowing us to constantly monitor the course of action the
entire program is done and be able to take corrective measures that allow us to
stay within the targets set. This concludes with an adequate system of document
ation that will allow us to obtain the information necessary to make changes and
to have a life history of everything done in order to perform other tasks such
as budgets for the coming years with adequate information. Finally we note that
the replacement policy at the firm will have an important influence in determini
ng the work plan.
Page 20 As we can see the methodology for the development of the strategy has a
strong influence of factors affecting the determination of the strategy, discuss
ed everything within it is necessary to note that the starting point "goal" dese
rves special consideration because which is crucial in the process. Also before
proceeding with that analysis at this time we make a separation between strategy
, organization and maintenance planning. The points are colored in orange that a
re usually directly related to organization, planning and green with purplish wi
th strategy. But if this is a division for the future analysis and study, we can
not ignore the fact that all three are deeply intertwined and form a whole wing
in defining the strategy to use.
P. 21 Returning this scheme with which we began the above analysis we can say th
at: • • • • The establishment of the objectives of the strategy is initially clo
sed loop, this being a major element of it. The strategy is dynamic, not static,
thus fixing an initial strategy and needs to adjust to changes in factors affec
ting the life of the plant. Strategic changes are long term. And last not to be
confused with planning strategy.
Page 22 Having grasped the ways in which the Maintenance Department function can
be affected by a dynamic relationship with the production system could give an
objective definition of maintenance that is consistent with the Corporation and
the production target. But the reality is different. In theory, the objective co
uld be considered as one that achieves the optimum balance between the allocatio
n of resources for maintenance and total plant production. In practice the resul
t of a negotiation between all stakeholders and finally obtained the best strate
gy agreed with the intention of achieving the desired requirements at a minimum
cost of maintenance resources used. This aspect is especially important producti
on area.
Page 23 There are several factors that have influence in determining the objecti
ve of maintaining those first be examined to consider when establishing corporat
e objectives Ideas about Force Industrial Maintenance Organization as Paradigms
and models Marco methodologies "must be regarded as the company's internal influ
ences. In this regard we can mention the following: • The residual life versus t
he life-extension. • The management excellence. • Benchmarking - Comparative stu
dies between similar businesses. • Audits maintenance organization. • Reengineer
ing. • Total Quality. • The Horizontal Organization, the organization without le
aders, etc.€• The outsourcing of resources. • Certification of ISO 9000 14000 OR
18000. • International integration of the company (Holding - Multinational) • T
he policies of suppliers. • The philosophy of the company for Thought; Proactive
- Reactive • ETC. Referring to the influence of external environment we noted t
he following: • • • • • • • • Policies set by corporate directors and shareholde
rs. The financial climate gubernamenales regulations. The market demand. Custome
rs. The availability of skills rather than the plant. New Tegnologias. The relat
ionship of trade unions.
As well as other factors in the circumstances we face As you can see the determi
nation of corporate objective is an activity that deserves a special analysis de
pending on the complexity it presents.
Pag 24 As we can see in this picture there are a number of factors that directly
influence the determination of the purpose of maintaining, in addition to the c
orporate objectives. What follows is a brief analysis of them. Output factors of
the plant - production levels: The way to express and control the ratio of main
tenance resources / "output" is usually done through an index. The goal set for
example a plant availability of 95%, but the benefits of applying more resources
to keeping more productive output should not be neutralized by the return of th
ese achieved higher sales with lower costs than marginal, this aspect clearly re
quires us to maintain a delicate balance between the costs of maintenance and pr
oduction. Plant security: We must define the frequency of maintenance inspection
to ensure the physical integrity of the equipment (pressure vessels, piping and
rotating equipment accessories, etc..) And safety instrumented systems and cont
rol. For that, Inspection procedures, standards and codes. Also maintenance reso
urces Plant Security should be audited periodically with the National Standard a
nd International Security. Longevity of the plant: resources are allocated for t
he plant to survive longer than the operational design. The objective of mainten
ance in this aspect is conceptually final protective order to prevent damage to
reduce capital goods. It is difficult to establish a correct relationship betwee
n the level of maintenance for the expected life of the plant. The answer to the
optimal solution is that the plant is not this or submantenida. This will be di
scussed later. Maintenance Resources: are men, supplies, equipment, tools, consu
mables, etc. The facilities manager can quickly change the level of resources if
these are mostly obtained from outside (contract), but not be so fast if they w
ere their own resources. In this area we must consider that the Labor Cost is a
weight parameter, and that it must be minimized for a given workload. Also refer
ring to spare parts, should minimize the stock plant and storage costs, setting
goals for fair value of stock turnover, stock out, etc ...
Pag 25 In this table we can appreciate the interrelationship between the differe
nt departments of a manufacturing company and how the Departmental and Corporate
Objectives have influence in determining the objective of maintenance.
Pag 26 Taking into account all aspects analyzed we can define a broader Maintena
nce Objective. The definition shown corresponds to a particular company and resp
onds to a specific environment. As stated in a timely manner we must emphasize t
hat the objective is dynamic and responsive to a sum of factors influencing the
definition of it, making it susceptible to changes in its formulation.
Pag 27 will perform a brief analysis of the issues that would have to supplement
in the determination of the objectives of maintenance.
Pag 28 procedure is required to establish the objectives of maintenance that is
acceptable to the maintenance department and all others whose functions are affe
cted by maintenance. The objectives of maintaining the level of senior managemen
t could be the following: To achieve continuous operation of the plant with an a
verage availability of 95% and a life plan of the plant at least 30 years. There
are other targets to ensure staff security and the environment. All these provi
ded at the lowest possible cost.€The first task is to identify the various user
departments to specify clearly what they require of the plant. Negotiations to e
stablish departmental objectives must take place at the highest level of managem
ent of the plant. If the order is to meet market demand, the production departme
nt must establish its program and shift operation, their availability requiremen
ts of plant and requirements arising for the mix of products and the level of qu
ality required. This will be as a result of interaction with the sales departmen
t, as can be seen in the presentation. The longevity of the plant and safety req
uirements will also have to be identified.
Page 29 is necessary to maintain overall objectives of the Maintenance Departmen
t, but it is also desirable in practice to analyze these within their sub-tives
including each of the factors that impact on output and resource area. The main
subdivision is between sub-goals of effectiveness (includes a section of the bes
t plan of life) and sub-objectives relating to efficient use of resources (labor
, parts, etc.).
Pag 30 Taking into account the objectives set at the corporate level maintenance
listed, we can perform an analysis within this scheme partial alumina refinery,
which will allow us to better understand this aspect. You can consider the foll
owing formulation of the objectives of plant maintenance: "to achieve the scheme
of plant operation, the output of product, the required quality, within accepta
ble conditions for the plant and safety standards, the minimum Resource Costs. "
The relative importance of each of the factors included in this formulation var
ies greatly from one technology to another and from one plant to another. In lar
ge continuous process plants the cost of losses in the output can be orders of m
agnitude greater than the costs of resources, as well as large buildings and lon
gevity factors can be very important.
As you can see there are three mills in the milling unit, but indicated that 2 m
ills in service can process 100% of production, which requires 2 of 3 (2 / 3) as
indicated by the system.
Page 31 To be meaningful the objectives set should be interpreted in the levels
of units, such as the mill, or systems of production and milling. Can be met onl
y if it actually faces between production and maintenance together with the nece
ssary participation of those responsible for safety and longevity, whose require
ments are usually more stable. In the case of the refinery is the responsibility
of the Superintendent of Production and Maintenance establish production requir
ements for grinding system, possibly with as: "Any two of the three mills should
be able to provide 100% of the milling required with the specified quality "as
indicated in the partial outline of the process. The longevity and safety requir
ements could be: "A life expectancy of 20 years and zero safety incidents."
Taken together these requirements form the basis of what is called user requirem
ents for the grinding system must be compatible with the objectives of the refin
ery, being able to summarize as: "Making the system user requirements at minimum
cost." A clear definition of these user requirements is the need to establish t
he preliminary plan of life maintenance.
P. 32 If these were achieved would improve organizational efficiency and consequ
ently, for the same workload, would achieve a reduction in direct maintenance co
sts. A single organizational goal is sufficient. It must set objectives for each
of the major maintenance resources: Labor and parts. U target for workforce may
be: Minimize, to achieve a given workload, the cost of labor per period. " This
may involve setting a target cost setting targets or subordinates in terms of p
erformance, levels of use and flexibility of the workforce. To order replacement
parts might be: "Minimize the total costs of depletion of stock and will hold p
arts in inventory." This could be used to establish a reference level of costs o
r other subordinate units expressed for example in missing .
Pag€33 As we raise the corporate objectives are set from the adoption of some id
eas of force and influence of so-called external environment. Targets Production
and Maintenance are decided by each head of sector-shaped inter-related and in
light of the objectives of major corporations. Since this is an essential task f
or defining the strategy to be used in the maintenance department.
Page 34
Having established the goals, we will develop the Maintenance Budget for the lif
e of the plant, which is essential for proper maintenance management. The main s
teps are: With the objectives of maintenance, you can prepare the Tentative Budg
et lifespan of the plant. To formulate the cost of life of the plant must take i
nto account these three points:
or adoption of the maintenance philosophy. o Define Implementation Characteristi
cs. or Choose the most appropriate tools, ie the type of maintenance to be imple
mented. With the tentative budget production and maintenance, it generates the "
Life Cycle Cost Useful Plant." Corporate Authorities decide on the adoption or a
mendment of the guidelines established by Production, Maintenance, Engineering a
nd other factors involved. It passes a final stage of decision The final cost st
udy for the changes requested, in case there were changes. He then authorized th
e Project Implementation.
Page 35
Before determining maintenance strategies s which are necessary to comment on th
e Characteristics of Paradigms Maintenance: paradigmatic models are born and gro
w rapidly coming to fame by focusing the attention of all industrial maintenance
Rise exceeded the process starts the stage of decline without reaching its total
disappearance, refers to a dormant state and at some future random break again
in the organizational stage of industrial maintenance management. All these scho
ols, have values that deserve to be considered and adopted in the complex manage
ment of maintenance management, according to the needs imposed by today's dynami
c business of the Companies. The philosophies of maintenance have been improved
and simplified by establishing clear procedures for implementation, but are not
settled the terms and adaptations required depending on the specific characteris
tics of each project. This is a task to be carried out by the group leaders invo
lved in the Re-Engineering Management Functional Maintenance Organization. This
table shows which are the main philosophies of maintenance strategies. They will
be discussed in upcoming classes.
Pag 36
In summary, this table we see that after defining the objectives of maintaining
able to determine the maintenance strategy that we use for our company. With the
proposed strategy will be in a position to make the planning and organization t
o enable us to meet
with those goals. During this course we will study three modules in these three
items independently, if you lose sight that they are deeply interrelated and tha
t consequently all three are dynamic and must be updated each time the objective
is changed depending on what we could see during this class.