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Group Project

GDB 2083 Asset Management in Malaysia
Maintenance & Reliability

Question 1: How can Smith and Hensen do anything to improve performance?

Company in an asset- intensive industry are susceptible to face one-off challenges in delivering
sustainable yield while maintaining excellent performance and profit. In case of Hensen and Smith, this
situation fit their companys description best since the overall performance of their company depends on the
performance of their critical assets. Consequently, when those assets are not running or are otherwise
unavailable, the company is not making money and unable to deliver customers demands.

Reliability and maintenance can be traced from breakdown maintenance and repair to preventive maintenance
to predictive maintenance. To address Smith and Hensen issue, firstly, managing assets based on risk and
criticality can help better prioritization of work and enable maintenance organizations or departments to more
strategically manage their critical assets.This allows precedence of the companys inventory and maintenance
schedules accordingly and ensuring that the most important maintenance is done first with continuous
monitoring of the systems performance.

It is urged that Hensen and Smith improve on field maintenance productivity, this is due to the scenario where
maintenance mechanics are idle at work and the case where arguments of either maintenance operations should
be carried due to prioritization to customers demands. Field maintenance productivity often suffers from a lack
of real-time management visibility, into what workers are doing and drives collaboration and operational
decision making. A system should be implemented whereby management could easily monitor workers
productivity rate and supervision in which workers can easily rectify the problem thus decreasing down time.

Subsequently, a standardized working procedure should be enacted primarily on systems framework. It is

strongly suggested that Hensen and Smith procure a roadmap for managing assets throughout their life cycle.
Such a framework helps asset- intensive companies make clearer connections between strategic organizational
plans and the day-to-day realities of asset and work management to meet with customers demands while still
maintaining profit and product quality.
Question 2: Is there an alternative to the current operations approach of the maintenance department?

The alternative option to the present operations way to deal with the maintenance department is by
taking a proactive maintenance execution rather than just taking the reactive method. They should fix the
machines before its breaks to minimise unscheduled maintenance downtime. They also can use equipment
specific strategies to optimize cost or benefit of planned maintenance to avoid over maintenance issue. Others
than that, they also can take a step further by eliminate the sources of defects by pre-empt failures to remove
root causes or defects in cost effective manner.

Question 3: How could production make up for lost output resulting from scheduled maintenance?

- make up lost output

The production rate for the company with 4 machine is barely catching up with the demand. So any
downtime on one of the equipment will result in huge loss to the company. The fact that down time inevitable to
any equipments, the only way to maintain a sufficient output level to meet the demand is adding redundancy to
the system which is buying a new machine.

- sub-contract

In order to meet the demands that cannot be fulfill by the ma nufacturing operations they could
considerer making a sub-contract to outsource companies that could help them to meet the production amount
while the company is suffering a downtime of their equipments.

Question 4: How could maintenance mechanics be better utilized?

In order to better utilize the maintenance mechanics, the management could consider sending them to
undergo training courses to improve their skills. They can also use the time between breakdowns to design a
solution in order to prevent future breakdown, or design a better procedure for scheduled maintenance so that
scheduled maintenances on the machines will not take too long and affect the productivity of the factory.

Question 5: Is there any way to know when a machine breakdown is probable?

They have to gather the time between breakdowns from previous breakdowns and establish the mean
time between failures. By using the MTB, they will be able to predict an average time when a maintenance
action will be required to fix the failed component. This will be useful to plan a minimum amount of scheduled
maintenance, while also preventing any breakdowns.
Decision Making (Case Study: Tom Tucker's Liver Transplant)
Question 1: Do you think that Tucker should select the transplant operation?

We used EMV to calculate the possible years Tucker could survive by undergoing or avoiding the
surgery. From the diagram above, the better decision for Tucker is to undergo the surgery, as the possible
survival years (5.95 years) is higher than avoiding the surgery.
Question 2: What other factors might be considered?

- Cost

The cost for a liver transplant cost a lot of money. So Tom at his age of 50 can be assumed a retiree. Without
any consistent stable income he would be needing an instant huge sum of money to pay for this operation. Even
if he got his savings from the retirement, he would be spending most of it on this operation. This would results
him being a tight financial situation in the coming years. So he has to decide to live fast luxuriously or live long

- Age

The probability and statistics from the University of Minnesota may or may not be accurate due to Tom's age
and condition. Realistically, the probability for Tom's to survive for each year will be less than the given
probability. The rate of fatality for golden age men like Tom is usually higher than average aged person.

- Availibility of the liver

Considering transplant means that Tom needs to consider the availibilty of a donor liver. As each year passes
with him waiting for a liver, his decision to make the transplant operation becomes stronger. This is because, as
the years of him not doing the operation increases, his EMV for years surviving without the operation decreases.