MAINTENANCE MANAGEMENT

IM – 503

Lecture – 2
Dr Muhammad Fahad
Associate Professor/Director Product Development Centre
Dept of Industrial & Manufacturing
NED University of Engineering & Technology
 Slide
1-2

Maintenance Management
 Why it is required?
 One of the biggest expenses in maintenance is not the cost of
the maintenance itself, rather the cost in lost production due
to unplanned emergency downtime.
 Increased performance requirements on machines/facilities
 Cost reduction/productivity improvement
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1-3

Maintenance Management
Schedule

Operating Cost
Customer Service
Downtime Profitability
Quality Safety &
Environment

Reputation

Actual cost for a breakdown averages 4 to 15

times of the maintenance costs.
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1-4

Maintenance Management
Schedule

Operating Cost
Customer Service
Downtime Profitability
Quality Safety &
Environment

Reputation
Maintenance comprises a major portion of the total operational cost.
Unnecessary or inappropriate maintenance contributes to inflated ownership
costs and generally reduced readiness for deployable assets.
While unscheduled maintenance requirements can be very costly and
disruptive.
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1-5

Maintenance Management
Schedule

Operating Cost
Customer Service
Downtime Profitability
Quality Safety &
Environment

Reputation

In manufacturing, the effects of downtime are being aggravated by the

worldwide move towards just-in-time systems, where reduced stocks of
work-in-progress mean that quite small breakdowns are now much more
likely to stop a whole plant.
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1-6

Maintenance Management
Schedule

Operating Cost
Customer Service
Downtime Profitability
Quality Safety &
Environment

Reputation

Maintenance has become a critical business function that impacts on plant

output, product quality, production cost, safety, and environmental
performance.
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Maintenance Management
Profitability
 Objectives
Growth
 General Business
Risk

Social Issues

Technical

 Maintenance Financial

Legal
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1-8

Maintenance Management
Objectives
 Perform daily housekeeping and cleaning to maintain a properly

presentable facility.
 Promptly respond and repair minor discrepancies in the facility.
 Develop and execute a system of regularly scheduled
maintenance actions to prevent premature failure of the facility,
its systems and components.
 Complete major repairs based on lowest life-cycle cost.
 Identify, design and complete improvement projects to reduce
and minimize total operating and maintenance costs.
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1-9

Maintenance Management
Objectives
 Operate the facility utilities in the most economical manner while

providing necessary reliability.

 Provide for easy and complete reporting and identification of
necessary repair and maintenance work.
 Perform accurate cost estimation to ensure lowest cost solutions
to maintenance problems.
 Maintain a proper level of material and spare parts to support
timely repairs.
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Maintenance Management
Objectives
 Accurately monitor the progress /track the costs of all

maintenance work.
 Schedule all planned work in advance, and allocate and
anticipate staff requirements to meet planned and unplanned
events.
 Maintain complete historical data concerning the facility in
general and equipment and components in particular.
 Continually seek workable engineering solutions to
maintenance problems.
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Maintenance Management

Is not about fixing things that break.

 Is a critical business function that impacts plant output,

product quality, production cost, safety and environmental
performance.
 Ensures availability of machines, equipment, services, and
other facility assets when needed, where needed, in
excellent working order
 Avoid over-maintenance or under-maintenance
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1-12

Maintenance: Evolution
Profit Contributor
Third Generation
• Higher plant availability and
Development of

reliability
Technical Matter
Maintenance

• Greater safety
Necessary Evil Second Generation • Better product quality
• Higher plant availability • No damage to the
First Generation • Longer equipment life environment
• Fix it when it broke • Lower costs • Greater cost effectiveness
1940 1950 1960 1970 1980 1990 2000
1st Generation 2nd Generation 3rd Generation
 Covers period up to  Mechanization increased  RCM
world war II rapidly
 Higher demand on plant
 Low level  PM techniques became availability
mechanization popular
 Equipment simple &  Equipment overhaul done  Greater emphasis and
over-designed at fixed interval laws on health, safety &
 Cost of maintenance environmental protection
 Low level technical
skill required increased
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1-13

Maintenance Management

Primary Functions

 Maintenance of existing assets

 Equipment calibration
 Utilities, Generation and Distribution
 New installations
 Alterations of existing assets
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Maintenance Management

Secondary Functions
• Storekeeping
• Plant protection
• Waste disposal
• Salvage
• Insurance administration
• Janitorial services
• Pollution and noise abatement
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1-15

Maintenance Management
Maintenance Organization
 Many factors determine the place of maintenance in the plant
organization including size, complexity and product produced.

 Important guidelines are:

 Establish reasonably clear division of authority with minimal overlap.
 Optimize number of persons reporting to an individual.
 Keep vertical lines of authority as short as possible.
 Main consideration in planning maintenance organization is to
decide between:
 Centralized Maintenance
 Decentralized Maintenance

Maintenance Management
Centralized Maintenance
 Involves a relatively large
maintenance department or
group that supports the
main production function.
 Typically has high utilization
of resources, a slow
response time, and a large,
varied labor pool.
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1-16
Decentralized Maintenance
 Maintenance groups are
strategically
located/assigned to various
areas in the production
facility.
 May result in low utilization
of resources, the response
time to production problems
is quicker owing to the
proximity of the maintenance
technicians to the production
equipment.
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Maintenance Management
Centralized Maintenance Decentralized Maintenance
 More efficient compared to  Requires less time getting to

decentralized maintenance. and from the work area.

 Fewer maintenance staff  Maintenance personnel

required. becomes familiar with

 Permits the use of complex hardware or
specialized/modern equipment.
equipment.  Better supervision due to on-

 More effective on-the-job site presence of staff.

training.  Improved maintenance –

 Based on schedules production relationship.

 Based on priorities
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1-18

Maintenance Management
Badly Managed Well Managed
Maintenance Maintenance
Maintenance is heavily Maintenance policies are
dependent on skilled and prepared.
specialized trade persons.
Each policy gives details of
what activities are to be
performed, when and what
trade is required.
More than one person is
trained to perform the job with
equal competency.
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1-19

Maintenance Management
Badly Managed Well Managed
Maintenance Maintenance
No records are kept and much Maintenance activities are well
of the asset history is inside documented. Whatever work
people’s heads. is done to an asset, it is
recorded.

Maintenance Management
Badly Managed
Maintenance
It is impossible to estimate
maintenance costs
Slide
1-20
Well Managed
Maintenance
Labor standard hourly rates are
calculated and available trade-
wise. Price per unit of spares
and materials are available.
Pre-defined input forms record
each work order. Maintenance
engineer is fully in a position to
estimate maintenance costs,
based on past history.
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Maintenance Management
Badly Managed Well Managed
Maintenance Maintenance
Most jobs are based on Most jobs are based on
breakdown maintenance. preventive and predictive
maintenance
A greater amount of time
(maintenance man hours) is
spent on unplanned work
There is high level of overtime Overtime is totally under
control

Maintenance Management
Badly Managed
Maintenance
Maintenance is a perceived by
management as a necessary
evil.
Since maintenance is mostly
based on breakdown,
reliability and availability of
machines and equipments is
not given its due consideration.
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1-22
Well Managed
Maintenance
Maintenance is recognized by
management as an integrated,
essential part of production
The Maintenance section focus
is upon making equipment
available through increased
reliability.
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Maintenance Management
Badly Managed Well Managed
Maintenance Maintenance
Emphasis is on repairs with no There is an emphasis on
consideration on why the analysis of the reasons for
breakdown occurred. down time.
No planning is done There is a commitment to
planned work

Maintenance Management
Badly Managed
Maintenance
Training of maintenance crew
and production operators is not training.
given any importance
There is no improvement
policy for maintenance
management
Operators have nothing to do
with maintenance
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1-24
Well Managed
Maintenance
There is an emphasis on
Continuous improvement
programs are in place
Operators are involved in the
maintenance of their equipment
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Maintenance Management
Important Principles
1. Maximum productivity results when each person involved in
an organization has a defined task to perform in a definitive
way and a definite time.
2. Measurement comes before control.
3. Schedule control points effectively.
4. Job control depends on definite, individual responsibility for
each activity during the life span of a work order.
5. The optimal size of the crew is the minimal number that can
perform an assigned task effectively.
6. The customer service relationship is the basis of an effective
maintenance organization.
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Maintenance Management
Important Principles

Maximum Schedule for Measurement

Productivity Control

Successful/Efficient
Maintenance

Relationships Job Control Minimize

number of
individuals
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Maintenance Management
Successful Maintenance

Minimize: Reduce: Improve:

• Breakdowns • Cost of maintenance system by • Reliability and
• Downtime extending useful life of the asset availability
• Overtime • Cost of employing reactive • Plant performance
• Rework maintenance • New market
• Inventory opportunities
• Spare parts Maintenance Direct • Product quality to
• Accidents Costs secure /increase the
customers

Maintenance Indirect Reduce Increased Volume

Costs d Cost Revenue
(Loss of Production)

Increased Profit
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Maintenance Management

Inventory Lower Faster

Reduction Operating Throughput
Cost

Improved Maintenance Higher

Capacity Benefits Productivity

Continuous Safety, Health Improved

Improvement & Quality
Environment