Advanced Maintenance Management

MODULE ONE
INTRODUCTION TO MAINTENANCE MANAGEMENT

Definition of Maintenance
• Maintenance is the upkeep of property or

equipment
• Webster Dictionary defines the word

“Maintain”:
“To keep in an existing state (as of repair, efficiency

or validity): preserve from failure or decline”
M1 - Introduction to Maintenance
2
Management
Objectives of Maintenance Management
1. To ensure optimum availability and reliability of

“The Plant”
2. To extend its useful life
3. To provide quality work
4. To maximize customer satisfaction
(service time, convenience of service, attitude,
cost….)
5. To minimize total maintenance costs
6. To optimize the utilization of manpower
through motivation, coaching and training
7. To ensure the safety of staff and equipment
3
Management
Maintenance Management
Evolution
Expectations of the maintenance function
1930 - 1950 1950 - 1980 1980 - 2000
Fix it when it breaks Higher availability Higher availability

Lower costs Lower costs
Longer asset life Longer asset life
Higher reliability
Better product quality
Safety integrity
Environment integrity
Show results
4
Management
Evolution
Maintenance techniques
1930 - 1950 1950 - 1980 1980 - 2000
Fix it when it breaks Scheduled Condition monitoring

maintenance
Failure modes and
Planning systems effects analysis (RCM)
Computerization Computerized Maint.

Management Systems
TPM
5
Management
Maintenance Life Cycle
Early Normal life Final life

Lead
life
time
Monitored Parameter
(e.g. Vibration level)
Level Exponential
Decays This period used to Increase in
To establish normal Level predicted
normal parameter level From measure-
ments 21 - 25
1 5 9 13 17 21 25 29
time
Start-up Stage:
• What are the problems of this stage?
• Countermeasures?
• What impact, if any, does PM activity have on
the start up phase type problems
7
Management
Wealth Stage:
• The wealth phase is where you want to be
• The pumps pump, the compressors compress &
the firm makes money
• The challenge is to stay right where you are and
do not allow deterioration
• What are the countermeasures of this phase??

• How can good practices during the start-up phase
impact the wealth phase??
8
Management
Breakdown Stage:
• The breakdown phase is characterized by
larger scale breakdowns:
– Fatigue
– Corrosion
– Overheating
– Vibrations
• What are the countermeasures for this phase?

9
Management
Breakdown Phase Debate
• Is it morally wrong to have assets in this state?

• Can money be made with assets in this phase?
10
Management
Physical Assets Management
• Maintenance is concerned with Assets

– Preservation of asset functions
– Renovation of assets
– Life extension of assets
– Replacement of assets
11
Management
Identification of Assets
• Assets must be identified

– use an asset hierarchy to identify your assets
– example
• plant
• area (packing area)
• equipment (belt conveyor)
• item (gear box)
• part (bearing)
– standardize the equipment descriptions
12
Management
Recording of Assets
• Asset information must be recorded

– record all equipment maintenance activities
– assign all maintenance costs
– establish and effectively use a documented history
for each equipment
13
Management
Overall Equipment Effectiveness
• OEE is a "best practices" way to monitor and

improve the effectiveness of your
manufacturing processes (i.e. machines,
manufacturing cells, assembly lines).
• OEE Factors introduces Availability,
Performance, and Quality
14
Management
OEE Calculations
OEE = Actual / Ideal
OEE = Availability x Performance x Quality
15
Management
Availability
• Availability
– Availability takes into account Down Time Loss,
and is calculated as:
Availability = Operating Time / Planned Production

Time
16
Management
Performance
• Performance
– Performance takes into account Speed Loss, and is
calculated as:
Performance = (Total Pieces/OT) /Ideal Run Rate

– OT: Operating Time
17
Management
Quality Loss
• Quality takes into account Quality Loss, and is

calculated as:
Quality = Good Pieces / Total Pieces
18
Management
Example of OEE Calculations
19
Management
Achieving OEE with TPM
20
Management
The Maintenance Organization
There are 2 types of Maintenance Organizations:
• Centralized Organization
• Decentralized Organization
21
Management
Centralized Organization
Mechanics or craftsmen are assigned to work in any or

all areas of the plant.
ADVANTAGES :
Optimal and flexible utilization of personnel and
specialists.
Effective utilization of equipment
Better planning, scheduling, and control
Improved training of personnel
22
Management
Decentralized Organization
Maintenance crews are assigned to specific areas in the

plant.
ADVANTAGES :
Personnel are readily accessible to production
(communication, response, and services).
Reduction of travel time.
Better supervision (?).
23
Management
Factors of Maintenance Organization
Maintenance work load and its pattern

Amount of emergency work
Cost of unavailability
Location of plant
Production organization
Maintenance resources
Note : The maintenance organization will need continuous

modification in response to changing requirements.
24
Management
MODULE TWO
Management of Maintenance Worforce
Definition of a Maintenance Manager
1. A Manager gets his work done

with and through other people.
M2 - Management of Maintenance
2
Workforce
2. Management Functions:
• Planning
• Organizing (including Scheduling &
Budgeting)
• Directing: Motivating, leading,
coaching…
• Controlling
3
Workforce
3. Linking Pin
4
Workforce
4. The Three Managerial Skills :

Technical LE
VE
Human L T H A
Administrative
% TIME
Human skill is constant

throughout managerial career.
5
Workforce
Cross Training
• Develop database of skills required & available

• Determine the plan for each skill
• Check the variance
• Prepare for training
• Start the training process & review
6
Workforce
On-The-Job Training
• Explain
• Show
• Drill
• Check
• Activate/Reinforce
7
Workforce
THE HERZBERG THEORY OF MOTIVATION
HYGIENE FACTORS THE MOTIVATORS

- THE DISSATISFIERS (THE JOB ITSELF)
(CONDITIONS RELATING TO THE JOB)
1. The way the company is run 1. Sense of achievement
- Its policy
- Its administration
2. Work conditions 2. Recognition
3. Job security 3. Challenge of the job
4. Social relationships 4. Responsibility
5. Salary and benefits 5. Chance to grow and
develop
6. Status of the work
8
Workforce
Motivation
MOTIVATION MEANS GETTING PEOPLE TO DO
WHAT HAS TO BE DONE, WILLINGLY AND WELL.
GENERAL TECHNIQUES
Example
- “Lead from the front”
- Work hard yourself
Objectives
- Agree objectives with the team
- Make the objectives specific
- Make the objectives challenging, but reachable
9
Workforce
A. TASK BEHAVIOR OF LEADER
Is the extent to which a leader provides
direction for people, explaining what to do;
when, where and how to do it.
DIMENSIONS:
Setting specific goals
Organizing
Setting time lines
Directing - specific directions
Controlling - regular reporting
on progress
10
Workforce
B. RELATIONSHIP BEHAVIOR OF LEADER
Is the extent to which a leader has two-way
communication and active listening with his
subordinates while providing supportive behavior.
DIMENSIONS:
Giving Support and Encouragement
Communicating and Involving
Facilitating Interactions with Others
Active Listening
Providing Feedback
11
Workforce
SITUATIONAL LEADERSHIP
BASED ON
Amount of direction a leader gives
(Task Behavior)
Amount of support a leader provides
(Relationship Behavior)
12
Workforce
SITUATIONAL LEADERSHIP
MATURITY OF SUBORDINATE
Maturity is the ability and willingness of a
subordinate to take responsibility.
A. Job Maturity
Knowledge and skills (Ability to do
something)
B. Psychological Maturity
Confidence (Willingness to do something)
13
Workforce
High
RELATIONSHIP
Low
LOW TASK BEHAVIOR HIGH

M4 M3 M2 M1
Maturity
Workforce 14
Styles of Situational Leader
S1 TELLING / effective with low maturity (M1).

One-way communication, little support: (high task,
low relationship)
S2 SELLING / effective with low to moderate

maturity (M2). Two-way communication, with
positive support: (high task, high relationship)
15
Workforce
Styles of Situational Leader
S3 PARTICIPATING / effective with moderate

to high maturity (M3). Two-way communication,
with positive support; (high relationship, low task)
S4 DELEGATING / effective with high maturity

(M4). Little communication or support: (low
relationship, low task)
16
Workforce
Overall Goal
Reduce close supervision

Increase delegation
Build trust and confidence with
subordinates
17
Workforce
Characteristics of Effective Teams
 CLEAR TEAM OBJECTIVES

 OPEN COMMUNICATION
 MUTUAL TRUST AND SUPPORT
 CONFLICT AND COOPERATION
 APPROPRIATE LEADERSHIP
 EFFECTIVE MEETINGS AND DECISION MAKING
 FLEXIBLE WORKING PROCEDURES
 SELECTIVE USE OF THE TEAM’S RESOURCES
 INDIVIDUAL DEVELOPMENT
 REGULAR REVIEW
18
Workforce
MODULE THREE
MAINTENANCE MANAGEMENT
• A series of activities designed to hold or keep

an asset in any state
• Types of Maintenance
– Corrective Maintenance
– Preventive Maintenance
– Predictive Maintenance
– Emergency Maintenance
M3 - Management of Maintenance 2
The Maintenance Iceberg
Visible Maintenance Budgets, including
Manpower, Material And Contractors
Hidden Costs Buried in Departmental Budgets

and Elsewhere include: Production Delays,
Yield Losses, Equipment Shutdowns, etc
“Operations & Maintenance activities represent a significant,

but often overlooked savings opportunity.”
Maintenance Strategies
Strategy Maintenance type
Emergency maintenance
Fix it when it fails
Corrective maintenance
Time based (calendar time

Preventive maintenance
or running time)
Condition based Predictive maintenance
Failure finding Routine maintenance
Emergency Maintenance
• Definition:
– maintenance work requiring immediate response
from maintenance employees
• Goal:
– solve downtime, safety risk, danger or damage
• Properties:
– unplanned
– creates peaks and valleys in the work load
– expensive
– requires emergency spare parts purchasing
Corrective Maintenance
• Definition:
– restoring an asset to a preserved condition
• Goal:
– improve quality or performance
• Properties:
– planned
– a work order has been created
– the work is prepared
Preventive Maintenance
• Definition:
– replacements or overhauls scheduled on elapse of
calendar time or elapse of running time
– ex: inspections, lubrication, adjustments
• Goal:
– reduce downtime and breakdowns
– extend the life of the equipment or system
• Properties:
– planned & prepared
– original reliability must be restored
Maintenance Management Functions
Maintenance strategy determination
Maintenance types: predictive maintenance

• Definition:
– comparing the trend of measured physical parameters
against known engineering limits
• Goal:
– detecting potential and hidden failures (see next slide)
• Properties:
– planned
– condition based
Predictive Maintenance
• Types of failures
– functional failure: the inability to meet the
specified performance standard
– potential failure: a physical condition which
indicates that the failure process has started
(metal particles in oil)
– hidden failure: failure is not apparent until the
function is attempted
Time Percentages
• What percentage of your time should be spent

on PM, CM, Emergency and Project work?
Preventive Maintenance is a series of tasks

performed at a frequency dictated by
• Passage of time
• Amount of production
• Machine hours
• Mileage or condition
Goal of Preventive Maintenance is either:

1. Extend the life of an asset
2. Detect that an asset has critical wear & may fail or break-down
How Much Preventive Maintenance is Enough?
Common Preventive Maintenance Tasks
Give An example for the following preventive maintenance tasks:

• Inspection
• Cleaning
• Tightening
• Operate
• Adjustment
• Take Readings
• Lubrication
• Scheduled Replacement
• Interview Operator
• Analysis
What is TLC??
TLC is the simplest way to reduce breakdowns
TLC tasks are the key to TPM and PM
TLC
• Ford found that 60% of its breakdowns were

traceable back to faulty bolting
• Another company found 50% of the bolts and
nuts were lose, missing or defective
• Japanese Institute of Plant Engineering
commissioned a study that showed 53% of
failures in equipment could be traced back to dirt,
contamination or bolting problems
• Prober lubrication can be save electric usage by
5%
Types of Maintenance Task Lists
• Unit Based: Go down the list and complete it on

the one asset or unit before you going to the next
unit
• String Based: Perform one or a few short PM
tasks on many one at a time
• Condition Based PM: Popular with Computerized
Control System, pressure goes high, light goes on
What are the advantages and disadvantages for each type??
Basic Instructions for PM
• PM systems also include:

– Maintaining a record keeping system to track PM, failures and
equipment utilization
– All types of predictive activities
– Short or minor repairs up to 30 minutes in length
– Writing up any conditions that require attention
– Scheduling and actually doing repairs written up by the PM inspector
– Using the frequency and severity of failures to refine PM task lists
– Continual training and upgrading of inspector’s skills, improvements to
PM technology
– PM systems should contain ongoing analysis of their effectiveness
Planned Component Replacement (PCR)
• PCR is divided into two strategies:

– Planned Discard:
• Components are removed before failure and discarded
• Belts, filters, bearings and other inexpensive wear parts
– Planned Rebuild:
• For major components that are rebuildable
• Engines, transmissions, gearboxes, pumps, compressors
Advantages of Planned Component Replacement
(PCR)
• The components doesn’t fail

• Replacement is scheduled to avoid downtime
• Expensive or rental tools can be made available to reduce
conflicts and costs
• Manufacturer’s revisions and enhancements can be
incorporated easily
• Rebuilds in controlled environment by specialist is better than
rebuilding on the floor by labor
• Scheduled rebuilding can be used as training
• Spare components can be made available on a scheduled bases
and can minimize inventory
• Breakdowns become infrequent
Predictive Maintenance PdM
• “Predictive” means to declare in advance

• Any inspection activity on the PM task list is
predictive
• Predictive maintenance is a way to view data
and does not necessarily require buying a
bunch of equipment
Predictive Maintenance is used to describe maintenance
activity that includes some instrument or technology
Predictive Maintenance
The majority of failures do not occur instantaneously but develop over
.
a period of time (P-F Curve)
100%
Operating
Condition
Failure starts
to occur
P .
Failure can be
detected
- Possible actions at P
Failure has
occurred F
Time
.
- prevent functional failure
- avoid consequences of the failure
Five Questions to Ask before Starting PdM
1. What is our objective for a PdM program?

2. Are we (as an organization) ready for PdM?
3. Is the specific technique, the right one?
4. Is this the right vendor?
5. Is there any other way to handle this instead
of purchase?
Chemical & Particle Analysis
• Atomic Emission Spectrometry

• Atomic Absorption Spectrometry – concentration of metal in a
solution
• Gas Chromatography – Gas emitted by faults ( Separating chemicals)

• Liquid Chromatography – Lubricant degradation
• Infra Red Spectroscopy – Identify compounds & invistigate
composition
• Fluorescence Spectroscopy – Assessment of oxidation products

• Thin Layer Activation – Uses radioactivity to measure wear
Atomic Absorption Spectrometry
Gas Chromatography
Mechanical Predictive Methods
• Vibration Analysis:
– There are over 9 different types of vibration
analysis.
– Each focuses on one aspect of the way assets
deteriorate that is detectable by vibrations
– Frequency analysis, octave band analysis, etc.
• Ultrasonic Inspection
– Ultrasonics can determine the thickness of paint,
metal, corrosion
Typical Vibration Characteristics
Condition
Indicating
parameter
Normal
Data Level Diagnosis

ROUTINE
Or trend DIAGNOSIS
MONITORING
analysis
Plan and carry out

Maintenance activity
Energy Related Methods
• Temperature Measurements
– Looks for clear and present danger from excessive
heat
– Infrared photographs by heat
Possible Uses for Infrared Inspection
Bearing Overheating
Boilers Wall Deterioration
Cutting Tools Sharpness
Dies Casting Temperature Distribution
Distribution Panels Overheating
Heat Exchanger Proper Operations
Motors Hot Bearings
Piping Locating underground leaks
Power Transmission Equipment Bad Connections
Presses Mechanical Wear
Steam Lines Clogs or leaks
Thermal Sealing / Welding Even Heating

Basic Instructions for PM & PdM
• Life Extension • Detection

– Clean – Scan
– Smell for ..
– Tighten
– Take Readings
– Secure
– Measure
– Component Replacement – Take Sample for Analysis
– Lubricate – Look at Parts
– Refill – Operate
– Top-Off – Run
– Perform Short Repair – Review History
– Write up Deficiency
– Interview Operator
Reliability Centered Maintenance
How can we assure that the maintenance

conducted is the right maintenance and that
it produces the required equipment
reliability?
Reliability Centered Maintenance (RCM)
Reliability Centered Maintenance
RCM is a technique for reviewing equipment

failures and for determining the right
maintenance tasks
RCM Properties
• RCM ensures that all performed maintenance

is cost effective
• RCM contradicts the traditional precepts that
the reliability of equipment is directly related
to operating age
• RCM focuses on preserving the functions of
equipment, not on preserving the equipment
itself
RCM Steps
• Select the most critical equipment

• Determine the functions of the equipment
• Establish performance standards
• Determine type of failures
• Identify causes of failures
• Define effects of failures
• Categorize the effects of failures
• Identify appropriate maintenance tasks
• Establish an overall maintenance plan
RCM Implementation
• Operations
– identifies the functions and performance standards
• Maintenance
– identifies the types of failures
– defines the most appropriate condition monitoring
techniques
– builds a program
• Maintenance and operations
– collaborate on the consequences of identified failures
– carry out the program
Equipment Failure
• A part of equipment has suffered a failure when it

is no longer capable of fulfilling one or more of its
intended functions
• A failure mode or cause is any event which causes
a failure
• A failure pattern is the relationship between the
probability of failure of an item, and its age
• There are six distinct failure patterns, one of
which is the bathtub curve
Types of Failure
• Wear
• Corrosion
• Cracking & Flacking
• Stress Rupture
• Impact Rupture
• Fatigue
• Thermal Fatigue (Creep)
• Shrinkage
Bathtub Curve
Probability
of failure
Manufacturing
& installation Useful Life Period Wear-out Period
defects
Operating time
Failure Patterns
A (bathtub curve)
- starting
with manufacturing and installation defects,
going to constant failure probability, ending in a
wear-out zone
- example: new machines
Failure Patterns
- constant failure probability, ending in a wear-out zone
- example: abrasion
Failure Patterns
- slowly increasing probability of failure
- no identifiable wear-out age
- example: fatigue
Failure Patterns
- low failure probability when the item is new
- rapid increase to a constant level
Failure Patterns
- constant failure probability at all ages
- example: rolling element bearings
Failure Patterns
- starts with high failure probability
- drops to a constant level
Equipment Maintenance Strategy
• The most appropriate equipment maintenance

strategy can be determined by
– The failure pattern that applies to a given failure mode
– Mean Time between Failures (MTBF): the number of
failures in a given time period, divided by the time
that the equipment was operating in that period
– FMEA (Failure Mode and Effects Analysis): identify all
the events which are reasonably likely to cause each
failed state
Failure Mode Effect Analysis (FMEA)/
Failure Matrix
Process Failure Mode and Effects Analysis is a
tool allowing you to:
• List the causes of the failures
• Rank the cause and effects
• Prioritize actions that will decrease the likelihood of
failure occurrence and the associated risk
• Identify ways in which a product or process may not
meet its intended function
• Examine the potential consequences of that failure
Relationships between Failure Modes and
Effects
Failure Mode 1
Effect 1
No Gas
Car won’t
Failure Mode 2 or start
No Keys
Failure Mode 1 Effect 1

Car won’t start
Battery is Dead and Effect 2
No Lights
Failure Mode 1
Flat Tire
Failure Mode 2 and Can’t use Car
No Spare
Sources of Information
• Brainstorming • Customer Service Reports

• Manufacturing & Process Specs. • Field Complaints
• Warranty Data • Test Standards
• Process Map
• Cause & Effect diagram
FMEA Example
Function / Process Failure Mode Failure Cause Recommended

/ Part Action
Gear Box Clicking Noise Lack of Lubricant Add lubricant
bearing Change bearing
Corrosion Add xxxxxxx
MODULE FOUR
TOTAL PRODUCTIVE MAINTENANCE (TPM)
Total Productive Maintenance
• Total Productive Maintenance (TPM) is a new

autonomous maintenance program
• The goal of the TPM program:
– Increase production
– Increase employee morale and job satisfaction.
– Hold emergency and unscheduled maintenance to a
minimum
– Improve quality
– Reduce costs
– Increase morale and boost the motivation motivation
– Improve safety & health conditions
M4 - TPM 2
Definition of TPM
a new way of looking at maintenance. In TPM

the machine operator performs much, and
sometimes all, of the routine maintenance tasks
themselves
The major difference between TPM and other
concepts is that the operators are also made to
be involved in the maintenance process. The
concept of "I ( Production operators ) Operate,
You ( Maintenance department ) fix" is not
followed
M4 - TPM 3
TPM is based on two aspects:

• Achieve high machine utilization
• A shop floor philosophy based on encouragement
of operators to take a greater role in the health &
productivity of the machines
Dual goal for TPM is zero defects and zero

breakdowns
M4 - TPM 4
Evolution of TPM
STAGE 1 Breakdown Maintenance
STAGE 2 Preventive Maintenance
STAGE 3 Predictive Maintenance

(equipment effectiveness)
STAGE 4 Total Productive Maintenance
TPM is often defined as “productive maintenance involving

total participation”.
M4 - TPM 5
TPM
• Achieving Zero Defects, Zero

Breakdowns and Zero accidents
• Involving people at ALL levels
• Reducing Defects
• SELF MAINTENANCE.
M4 - TPM 6
Pillars of TPM
M4 - TPM 7
Pillar 1: 5S
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.
Japanese Term English Translation Equivalent 'S' term
Seiri Organization Sort
Seiton Tidiness Systematize
Seiso Cleaning Sweep
Seiketsu Standardization Standardize
Shitsuke Discipline Self - Discipline
M4 - TPM 8
Pillar 2: Autonomous Maintenance
• This pillar is geared towards developing operators to be able to

take care of small maintenance tasks, thus freeing up the
skilled maintenance people to spend time on more value added
activity and technical repairs. The operators are responsible for
upkeep of their equipment to prevent it from deteriorating.
• Policy :
– Uninterrupted operation of equipments.
– Flexible operators to operate and maintain other equipments.
• JISHU HOZEN Targets:

– Reduce oil consumption by 50%
– Reduce process time by 50%
M4 - TPM 9
Pillar 2: JISHU HOZEN
• Steps in JISHU HOZEN :

– Preparation of employees.
– Initial cleanup of machines.
– Take counter measures
– Fix tentative JH standards
– General inspection
– Autonomous inspection
– Standardization and
– Autonomous management
M4 - TPM 10
Pillar 3: KAIZEN
• "Kai" means change, and "Zen" means good ( for the better ).
• Kaizen is for small improvements, but carried out on a
continual basis and involve all people in the organization.
• Kaizen is opposite to big spectacular innovations. Kaizen
requires no or little investment.
• Kaizen Policy :
– relentless pursuit to achieve cost reduction targets in all resources
– Relentless pursuit to improve over all plant equipment effectiveness.
• Kaizen Target :
– Achieve and sustain zero loses with respect to minor stops,
– Achieve 30% manufacturing cost reduction.
M4 - TPM 11
Tools Used in TPM
• Summary of Losses in Organizations

• Brainstorming
• Why – Why Method
• Fishbone Analysis
• Pareto Analysis
M4 - TPM 12
16 Major Losses in an Organization
Loss Category
1. Failure losses - Breakdown loss
2. Setup / adjustment losses
3. Cutting blade loss
4. Start up loss
Losses that impede equipment efficiency
5. Minor stoppage / Idling loss.
6. Speed loss - operating at low speeds.
7. Defect / rework loss
8. Scheduled downtime loss
9. Management loss
10. Operating motion loss
11. Line organization loss Loses that impede human work efficiency
12. Logistic loss
13. Measurement and adjustment loss
14. Energy loss
15. Die, jig and tool breakage loss Loses that impede effective use of production resources
16. Yield loss.

M4 - TPM 13
Brainstorming
Definition: When to Use Brainstorming:
A free-form technique to encourage To generate a plethora of innovative ideas
creative ideas. concerning an issue or problem.
The Brainstorming Session:

• Put together a team of interested people.
• State the issue or problem; usually in terms of a “how,” “why” or “what” question.
• Have a “silence” break of 2-3 minutes.
• Invite all team members to call out their ideas in turn.
• No criticism.
• Write all the ideas onto a flip chart.
• All ideas are valid.
• Continue until the team dries up.
M4 - TPM 14
Why – Why Method
Problem Operator Slipped
WHY Oil on the floor
WHY Machine leaking oil
WHY Bearing leaking
WHY Bearing cage broken
WHY No preventive maintenance

M4 - TPM 15
Why – Why Method
WHY? WHY?
M4 - TPM 16
Why – Why Method
Scenario
The Plant Manager walked into the plant and found
oil on the floor. He called the Plant Supervisor over
and told him to have maintenance clean up the oil.
The next day while the Plant Manager was in the
same area of the plant he found oil on the floor
again and he subsequently was very angry from the
Plant Supervisor for not following his directions from
the day before. His parting words were to either get
the oil cleaned up or he'd find someone that would.
M4 - TPM 17
Environment Methods People
Causes
Problem
Other Equipment Materials
M4 - TPM 18
80% OF THE PROBLEM COMES FROM
20% OF THE CAUSES
Warranty Panel Information Partially Completed Data Recording
Check Sheet, Example.
Total
32
M4 - TPM 20
PARETO CHART EXAMPLE
Pareto Chart of Problems Related to the Instrument Panel
35
30
25
20
15
10
5
0
TYPE 1 TYPE 2 TYPE 3 TYPE4 TYPE 5 TYPE 6
M4 - TPM 21
Pillar 4: Planned Maintenance
• It is aimed to have trouble free machines & equipments

– Breakdown Maintenance
– Corrective Maintenance
• Evolve our efforts from a reactive to a proactive method
• Policy :
– Achieve and sustain availability of machines
– Optimum maintenance cost.
– Reduces spares inventory.
– Improve reliability and maintainability of machines.
• Target :
– Zero equipment failure and break down.
– Improve reliability and maintainability by 50 %
– Reduce maintenance cost by 20 %
M4 - TPM 22
Pillar 5: Quality Maintenance
• Focus is on eliminating non-conformances in a systematic manner

• Transition is from reactive to proactive (QC & QA)
• Policy :
– Defect free conditions and control of equipments.
– Focus of prevention of defects at source
– Focus on poke-yoke
• Target :
– Achieve and sustain customer complaints at zero
– Reduce in-process defects by 50 %
– Reduce cost of quality by 50 %
M4 - TPM 23
Mistake Proofing (Poka Yoke)
• Developed by Shigeo Shingo (an industrial

engineer) in Tokyo.
• The principle is the reduction in defects by
reducing or eliminating choices people can
make - thereby reducing or eliminating
defects.
M4 - TPM 24
Mistake Proofing (Poka Yoke): Examples
Form List
______ ______
______ ______ Before Poka Yoke:
______ ______ It is possible to transcribe
______ ______
information incorrectly
______ ______
______ ______
______ ______ ______
______ ______ ______
Form List
1
______
1 2
After Poka Yoke: A
3
2 ______ 4
mask/template and numbered
5 list shows which information to
______
3 transcribe and in which order
______
4 5
______
Process: Copying information from a completed form on to a list

Problem: Wrong information frequently transcribed
M4 - TPM 25
Mistake Proofing (Poka Yoke): Examples
Before Poka Yoke: It is possible to insert chassis in jig, with tag on RHS
Solution: Add extra location pin, prevents chassis from being inserted incorrectly
Process: Chassis placed in Jig for hole drilling

Problem: Chassis often placed in jig wrong way - hole drilled in wrong
place
M4 - TPM 26
Pillar 6: Training
• Transition from “Know How” mentality to

“Know Why”
• Create a factory full of experts
• The different phases of skills are:
– Phase 1 : Do not know.
Phase 2 : Know the theory but cannot do.
Phase 3 : Can do but cannot teach
Phase 4 : Can do and also teach.
• Target :
– Achieve and sustain downtime due to want men at zero on critical machines.
– Aim for 100 % participation in suggestion scheme.
M4 - TPM 27
Pillar 7: Office TPM
• Office TPM should be started after activating four

other pillars of TPM
• Office TPM includes:
– Inventory reduction
– Lead time reduction of critical processes
– Motion & space losses
– Retrieval time reduction.
– Equalizing the work load
– Improving the office efficiency by
• Eliminating the time loss on retrieval of information
• Achieving zero breakdown of office equipment like telephone and fax
lines.
M4 - TPM 28
Office TPM Benefits
1. Involvement of all people in support functions for focusing on better

plant performance
2. Better utilized work area
3. Reduce repetitive work
4. Reduced inventory levels in all parts of the supply chain
5. Reduced administrative costs
6. Reduced inventory carrying cost
7. Reduction in number of files
8. Reduction of overhead costs (to include cost of non-production/non
capital equipment)
9. Productivity of people in support functions
10. Reduction in breakdown of office equipment
11. Reduction of customer complaints due to logistics
12. Reduction in expenses due to emergency dispatches/purchases
13. Reduced manpower
14. Clean and pleasant work environment.
M4 - TPM 29
Pillar 8: Safety, Health & Environment
• create a safe workplace and a surrounding area
• A committee headed by a VP is established to look after
functions related to safety
• Create awareness among employees
– Slogans
– Quizzes
– Posters
– Meetings
• Target :
– Zero accident,
– Zero health damage
– Zero fires.
M4 - TPM 30
Implementing TPM
The details and procedures for implementing TPM must

be tailored to the individual plant.
Each must develop its own action plan, because

needs vary, depending on ....
 production methods
 equipment type
 equipment conditions, and
 company policy
M4 - TPM 31
Successful Implementation
But generally, successful implementation

requires....
1. A reduction in each of the six big losses
2. A documented preventive maintenance program
3. A detailed maintenance schedule
4. Increased technical skills of both maintenance and

production personnel.
5. An equipment management program for new equipment
M4 - TPM 32
Time Required
It usually takes at least three years before prize

winning results are achieved
 attitudes must be changed
 skills must be increased
M4 - TPM 33
Development Stages
The twelve action steps for successfully implementing

TPM can be categorized into three development
stages :
 Preparation : creating a suitable environment
 Implementation : taking action, designing

maintenance program
 Stabilization : ongoing evaluation and

improvement
M4 - TPM 34
TPM Implementation: 12 Action Steps
Stage Step Details
1. Announce top management Statement at plant meeting

decision to introduce TPM
2. Launch education and Managers : seminars
campaign to introduce TPM. General: slide presentations
3. Create organizations to Form special committees at
promote TPM. every level; establish central
headquarters and assign staff
4. Establish basic TPM Analyze existing conditions;
policies and goals. set goals; predict results
5. Formulate master plan for Prepare detailed
TPM development implementation plans
6. Hold TPM kick-off Invite clients and
subcontracting companies
M4 - TPM 35
TPM Implementation: 12 Action Steps
Stage Step Details
7. Improve effectiveness of Select model equipment; form
each piece of equipment. project teams
8. Develop an autonomous build diagnosis skills and
maintenance program establish worker certification
9. Develop a scheduled Include periodic and predictive
maintenance program maintenance
10.Conduct training to Train leaders together, share

improve operation info. with group members
11.Develop early equipment Design maintenance

management program prevention; commissioning
control
12.Perfect TPM Evaluate and set higher goals
implementation
M4 - TPM 36
Organization Structure for TPM Implementation
M4 - TPM 37
One out of two TPM installations fails, why??

• Lack of understanding
• Lack of commitment for a long-term project
• Change in leadership with new priorities
• Inadequate preparation specially for middle management
• Rewards still in-place for old methods
• Unrealistic expectations
• TPM is not build into the management structure of the
organization
M4 - TPM 38
Real Problems From Real Companies
• Top management sign-off and support through-out a multi-year
TPM process. Some managements withdraw support after the first
year.
• Top management might give lip service
• Supervisors might criticize rather than solve problems
• Some people may oppose or have a complete lack of understanding
of the need for change
• TPM requires minimal downtime. No integration with customer
demand or production schedule
• Workers might object to the perceived extra work by slow down or
absenteeism
• Workers might fear job loss
• Finding time for training
• Inadequate communications between production and maintenance
groups
• Operators do not like to clean equipment neither maintenance
people.
M4 - TPM 39
MODULE FIVE
Maintenance Planning & Control
Work Request & Work Order
• Work request
– formal request to have work done.
– Can be filled out by a production or maintenance
employee
• Work order
– Written authorization to proceed with a repair or
other activity to preserve an asset function
M5 - Maintenance Planning & Control 2

Work Planning & Scheduling
• Work planning
– assigning work orders to a time period
– plan resources
• Work scheduling
– arranging the sequence of the work orders
– considerations
• priority
• availability of craftsperson
• availability of material and equipment
• desires of the operating personnel

Maintenance Workflow Process
• Work identification
– by operation or maintenance personnel
• Work order creation
– work order number
– date
– originator
– asset identification
– short description
– priority
– approved by

Maintenance Workflow Process (cont’d.)
• Work preparation
– accounting code
– job description (sequence of events)
– crafts required
– material required
– tools required
– safety and environment considerations
– estimated hours

Maintenance Workflow Process (cont’d.)
• Work execution
• Progress tracking
• Work analysis
• Recording information
– nature of occurrence of the failure
– nature of the failure
– nature of the repair
– total downtime, labor-hours and spare parts

Work Preparation
• Work preparations are important

– facilitate estimation
– assure that the job will be done in the most
efficient manner
– contribute to training by indicating the
methodology of the job
– the preparation can be used the next time the job
has to be executed

Priority System
• A priority system is established to ensure that

the most needed work orders are scheduled
first
• Example of priorities
– 0: emergency or safety work
– 1: work to start within 24 hours
– 2: work to start within 1 week
– 3: work to start within 1 month
– 4: turnaround or overhaul
Backlog Management
• What is Backlog:
– all work available to be done. Backlog work has
been approved and prepared
• The backlog must be used as a tool to make
decisions
– informs management about future needs for
maintenance (contracting, more or less personnel)
– must be effectively managed so that it does not
grow to an unmanageable size

Resource Management
• Resources
– people
– spare parts
– tools
• Resource management
– matching the resources to the workload

Utilization of People
• Utilization of people can be improved by

– managing the size of the backlog
– contracting
– shift from unplanned to planned work
– smoothing the workload

Spare Parts
• The optimal balance between the cost of

holding and the cost of stockout must be
achieved
• Classification of spare parts
– Function
• Usage rate
– fast moving
– slow moving

Spare Parts Management
• Spare parts management

– the right parts in the right place at the right time
in the right quantity
– create an equipment history analysis
– identify dormant or excess stock items
– establishment of workable stock levels, controlled
by supply lead-time and usage

Tools
• Tools are not consumable

• Tools must be
– monitored
– maintained
– replaced on time

MODULE SIX
Budgeting of Maintenance
MASTER BUDGET
• Capital Budget
• Operating Budget
M6: Budgeting of Maintenance 2

CAPITAL BUDGET
• New projects: budgets are tied to

project plan
• New capital items: purchased and
classified as per certain
guidelines (value, life)

Operating Budget Guidelines
• DETAILED AND COMPLETE LIST

• DESCRIBED BY RESPONSIBILITY CENTER, SECTION,
PRODUCT, AREA …
• DESCRIBED BY BUDGET PERIOD
• RELYING ON HISTORICAL DATA
• ADOPTING A “ZERO-BASED BUDGETING” APPROACH
• RELATED TO TASKS OR ACTIVITIES TO BE PERFORMED
• USING (WHEN POSSIBLE) VARIOUS ESTIMATION TOOLS

Operating Budget Guidelines
• ITEMS ARE CLASSIFIED AS CONTROLLABLE OR

UNCONTROLLABLE (ALLOCATIONS FROM
OTHER COST CENTERS)
• EACH ITEM IS FOLLOWED BY THE “BASIS” OF
ITS CALCULATION (JUSTIFICATION)

Examples of Expenses
• Salaries & benefits
• Materials
• Rent
• Business travel
• Professional consultant fees
• Utilities: water, power, telephone
• Information technology
• Depreciation
• Training
• Contracts
• Stationery
• Miscellaneous (a very small amount)
Cost Control
• Reduction of budget before budget approval
• Comparison between actual and budget (variance

analysis and justification)
• Variance = | Actual – Budget |
• Variance
• Variance % = ---------- x 100
• Budget
Cost Control (cont’d.)
• Verification against approved budget

• Elimination of wastage, cost optimization (cost
reduction)
• Comparison with history
• Comparison with other companies and with
other units (benchmarking)

Capital Budgeting
• How managers plan significant outlays on

projects that have long-term implications such
as the purchase of new equipment and
introduction of new products.

Capital Budgeting Decisions
Plant expansion
Equipment selection Equipment replacement
Lease or buy Cost reduction

Typical Capital Budgeting Decisions
• Capital budgeting tends to fall into two broad

categories . . .
– Screening decisions. Does a proposed project
meet some present standard of acceptance?
– Preference decisions. Selecting from among
several competing courses of action.

Time Value of Money
Business investments extend

over long periods of time, so
we must recognize the time
value of money.
Investments that promise

returns earlier in time are
preferable to those that
promise returns later in time.

Time Value of Money
A dollar today is worth

more than a dollar a
year from now since a
dollar received today
can be invested,
yielding more than a
dollar a year from now.

Interest and Time Value of Money
If $100 is invested today at 8% interest, how

much will you have in two years?
At the end of one year:
$100 + 0.08$100 = (1.08)$100 = $108
At the end of two years:
$108 + 0.08$108 = (1.08)$108
= (1.08)[(1.08)$100]
= (1.08)2 $100 = $116.64

If P dollars are invested today at the annual

interest rate r, then in n years you would
have Fn dollars computed as follows:
Fn = P(1 + r)n

The present value of any sum to be

received in the future can be computed
by turning the interest formula around
and solving for P:
 1 
P  Fn  n 
1  r  
A bond will pay $100 in two years. What is the

present value of the $100 if an investor can earn
a return of 12% on investments?
 1 
P  Fn  n 
1  r  
P = $100 (0.797)
P = $79.70

A bond will pay $100 in two years. What is
the present value of the $100 if an investor
can earn a return of 12% on investments?
Present Value = $79.70
What does this mean?

If $79.70 is put in the bank today, it
will be worth $100 in two years.
In that sense, $79.70 today is
equivalent to $100 in two years.

Time Value of Money
• A bond will pay $100 in two years. What is

the present value of the $100 if an investor
can earn a return of 12% on investments?
We can also determine the

present value using present
value tables.

Time Value of Money
• Excerpt from Table: Present Value of $1
Rate
Periods 10% 12% 14%
1 0.909 0.893 0.877
2 0.826 0.797 0.769
3 0.751 0.712 0.675
4 0.683 0.636 0.592
5 0.621 0.567 0.519

Time Value of Money
$100 × 0.797 = $79.70 present value

Rate
Periods 10% 12% 14%
1 0.909 0.893 0.877
2 0.826 0.797 0.769
3 0.751 0.712 0.675
4 0.683 0.636 0.592
5 0.621 0.567 0.519
Present value factor of $1 for 2 periods at 12%.

Time Value of Money
• An investment that involves a series of

identical cash flows at the end of each year is
called an annuity.
$100 $100 $100 $100 $100 $100
1 2 3 4 5 6

Time Value of Money
• We could solve the problem like this . . .

Look in Table: Present Value of an Annuity of $1
Periods 10% 12% 14%

1 0.909 0.893 0.877
2 1.736 1.690 1.647
3 2.487 2.402 2.322
4 3.170 3.037 2.914
5 3.791 3.605 3.433

Time Value of Money
• We could solve the problem like this . . .
Periods 10% 12% 14%

1 0.909 0.893 0.877
2 1.736 1.690 1.647
3 2.487 2.402 2.322
4 3.170 3.037 2.914
5 3.791 3.605 3.433
$100 × 3.433 = $343.30

Choosing a Discount Rate
The firm’s cost of capital is usually

regarded as the most appropriate
choice for the discount rate.
The cost of capital is the average rate

of return the company must pay to
its long-term creditors and
stockholders for the use of their
funds.

Typical Cash Outflows
Incremental
operating costs
Working Initial
capital investment
Repairs &
maintenance

Typical Cash Inflows
Incremental
revenues
Release of
working Salvage value
capital
Reduction of
costs

The Net Present Value Method
To determine net present value:

• Calculate the present value of cash inflows,
• Calculate the present value of cash
outflows,
• Subtract the present value of the outflows
from the present value of the inflows.

The Net Present Value Method
• General decision rule . . .

If the Net Present
Value is . . . Then the Project is . . .
Acceptable, since it promises a
Positive . . . return greater than the required
rate of return.
May be acceptable, since it

Zero . . . promises a return equal to the
required rate of return.
Not acceptable, since it

Negative . . . promises a return less than the
required rate of return.
Quick Check Data
• XYZ Associates has been offered a four-year contract to supply
the computing requirements for a local bank.
Cash flow information

Cost of computer equipment $ 250,000
Working capital required 20,000
Upgrading of equipment in 2 years 90,000
Salvage value of equipment in 4 years 10,000
Annual net cash inflow 120,000
The working capital would be released at the end of

the contract.
XYZ Associates requires a 14% return.
Quick Check 
What is the net present value of the contract

with the local bank?
a. $150,000
b. $ 28,230
c. $ 92,340 Cash 14% Present
Years Flows Factor Value
d. $132,916
Investment in equipment Now $ (250,000) 1.000 $ (250,000)
Working capital needed Now (20,000) 1.000 (20,000)
Annual net cash inflows 1-4 120,000 2.914 349,680
Upgrading of equipment 2 (90,000) 0.769 (69,210)
Salvage value of equip. 4 10,000 0.592 5,920
Working capital released 4 20,000 0.592 11,840
Net present value $ 28,230

Other Approaches
Other methods of making capital

budgeting decisions include . . .
The
Internal The The The Simple
Rate of Profitability Payback Rate of
Return Index (PI) Method Return
(IRR)

Internal Rate of Return (IRR)
The interest rate that makes . . .
 Present Present
value of = value of
cash inflows cash outflows
 The net present value equal zero

Using Internal Rate of Return
Internal Rate of Return
Compare the internal rate

of return on a project to a predetermined
hurdle rate (cost of capital).
To be acceptable, a project’s rate of return

cannot be less than the
cost of capital.

Ranking Investment Projects
Profitability Present value of cash inflows
index = Investment required
Investment
A B
Present value of cash inflows $81,000 $6,000
Investment required 80,000 5,000
Profitability index 1.01 1.20
The higher the profitability index, the

more desirable the project.

The Payback Method
The payback period is the

length of time that it takes
for a project to recover its
initial cost out of the cash
receipts that it generates.
The Payback Method
• When the net annual cash inflow is the same

each year, this formula can be used to
compute the payback period:
Investment required
Payback period =
Net annual cash inflow

Quick Check 
Consider the following two investments:

Project X Project Y
Initial investment $100,00 $100,000
Year 1 cash inflow $60,000 $60,000
Year 3-10 cash inflows $0 $25,000
Which project has the shortest payback period?
a. Project X
b. Project Y
c. Cannot be determined

Quick Check 
Project X has a payback period of 2 years.
Project Y has a payback period of slightly
more than 2 years.
Which project
Consider do you two
the following thinkinvestments:
is better?
Project X Project Y
Initial investment $100,00 $100,000
Year 3-10 cash inflows $0 $25,000
Which project has the shortest payback period?
a. Project X
b. Project Y
c. Cannot be determined

Evaluation of the Payback Method
Ignores the
time value
of money.
Short-comings
of the Payback
Period.
Ignores cash
flows after
the payback
period.

Simple Rate of Return Method
• Does not focus on cash flows -- rather it

focuses on accounting income.
• The following formula is used to calculate the
simple rate of return:
Incremental Incremental expenses,
-
Simple rate revenues including depreciation
of return =
Initial investment

Quick Check 
Inland Airlines is considering the purchase of an

aircraft for $20 million that would last for 10
years and generate incremental revenues of $9
million per year and incremental expenses,
excluding depreciation, of $5 million per year.
What is the simple rate of return on the aircraft?
a. 10%
b. 15%
c. 20%
d. 25%

Example
Inland Airlines is considering the purchase of an

aircraft for $20 million that would last for 10
years and generate incremental revenues of $9
million per year and incremental expenses,
excluding depreciation, of $5 million per year.
What is the simple rate of return on the aircraft?
a. 10% [$9 – ($5 + $2)] / $20 = 10%
b. 15%
c. 20%
d. 25%

Postaudit of Investment Projects
• A postaudit is a follow-up after the project has

been approved to see whether or not
expected results are actually realized.

MODULE SEVEN
Performance Measurement
Performance Measurement Is simply a

method for assessing progress towards
stated objectives. It is not intended to
act as a reward / punishment
mechanism, but rather as a
communication and management tool.
M7 - Performance Measurement 2
Quote
“””What gets
measured gets done,
and what gets
recognized gets done
best.
Objectives of Performance Measurement
To shine the spotlight on strengths

and weaknesses. And to use the
information of what we’ve
learned to get it right the next
time … and to stop doing things
that don’t produce the results we
want.
IS LIKE A DASHBOARD
THAT GIVES REGULAR
“READINGS”
“You Can’t Manage What You Don’t

Measure”
Performance Categories
Productivity Safety
Financial People
Inventory Quality Quantity Customer

Service
KPIs, Benchmarks & Tools
A Key Performance Indicator (KPI) is a quantitative

measurement (number, percentage, index, score,
cost,....) used to track performance in effectiveness,
productivity or cost.
A Benchmark or Target is the comparative standard or

target against which the actual KPI value is compared.
A Measurement Tool is one used to record and

measure the KPI
Key Performance Indicators
# KPI DEFINITION U.O.M TARGET FREQUENCY REMARKS
7
Quote
“What gets measured

gets done, and what
gets recognized, gets
done best.”
KPIs: Definition
• KPIs are quantifiable measurements, agreed

to beforehand, that can be plotted along a
time dimension and reported, ON DEMAND.
Key Performance Indicators
Rates, ratios, averages or

percentages that reflect (or
Key Performance
measure) the status of the
Indicators (KPIs)
Key Result Areas (KRAs) of an
organization.
Quote
“Not All Things Are

Worth Measuring All
the Time…You Have to
Determine What You
Want to Measure and
Measure It Properly.”*
Characteristics of the Right KPIs
Has a clear unit

Simple and Linked to a Key
of measure
‘fat-free’ Result Area
(UOM)
Has a clear and Highly Can be

specific influenced by reported ‘on
formula owner demand’
Cost effective
Owned by one
to monitor and
individual
report
How to Set Targets
• Local experience (current & prior periods)

• Experience in similar internal units
• Observation and experimentation
• Judgment & experience
• Published international standards
• Identical competitive operations
• Best world-wide similar operations
“(Benchmarking)”
On Setting Targets
“Targets handed down by

upper management have been
markedly less successful”
Rockwater case
(Targets need to be agreed and updated)
Effective Goals are Challenging
and Realistic
“A Goal That Is Too

Simple Is Not Motivating”
“An Impossible Goal

Can Decrease Self-
confidence”
The Balanced Scorecard: Balancing your
KPIs
• At the highest level, the Balanced

Scorecard is a tool that helps
organizations translate strategy
into operational objectives, targets
and initatives/strategies that drive
performance
The Balanced Scorecard
FINANCIAL
“To succeed Goal KPI Target Initiatives
financially, how
should we appear
to our
shareholders?”
CUSTOMER INTERNAL BUSINESS PROCESSES

“To achieve our Goal KPI Target Initiatives “To satisfy our Goal KPI Target Initiatives
vision, how Vision shareholders and
should we & customers, what
appear to our Strategy business processes
customers?” must we excel at?”
LEARNING & GROWTH/INNOVATION

“To achieve our
vision, how will Goal KPI Target Initiatives
we sustain our
ability to
change and
improve?”
MODULE EIGHT
Computerized Maintenance Management System
(CMMS)
CMMS
• A computer software program designed to assist in the planning, management, and
administrative functions required for effective maintenance
• Typically, CMMS have the following modules
– Equipment Management
– Labor
– Work Order System
– Scheduling / Planning
– Vendor
– Inventory Control
– Purchasing
– Budgeting
M8 - CMMS 2
Equipment Management Module
M8 - CMMS 3
Equipment Management
• Defines all pieces of equipment/asset, spare parts, run time, safety
procedures and set up schedules for PM
– Equipment Number: Unique ID
– Hierarchy: Parent-Child relationship by specifying which equipment belongs to
(its parent) and vise versa
– Priority: Indicates the criticality of the equipment
– Run Time: Stores information regarding run time In units of miles, hours, etc.
– Spare parts
– Auxiliary Equipment: Motors, pumps, generators, etc.
– Cost: Materials, labor and overhead cost are computed via WO module and
recorded in equipment module
– Links: Attach CAD, schematics, etc. to equipment records
– Safety and Compliance: OSHA, EPA, FDA, ISO
– Warranty
– Condition Monitoring: This function allows to set measurement points for
each piece of equipment to determine if equipment is operating within safe
parameters
– Equipment Reports: Cost, equipment failure, failure counts, availability,
location, summary, master
M8 - CMMS 4
Preventive Maintenance Module
• Helps creating PM records and generating WOs
• Instead of entering PM procedures for every
equipment, using this module can save a big
amount of data entry.
• Includes:
– Priority
– Frequency
– Seasonal PM
– Parts
– Labor
– Outside contractors
– Generate WO and PM Reports
M8 - CMMS 5
M8 - CMMS 6
Labor Module
• Labor module keeps track of employees’

information
• Labor module interfaces with PM, WO,
planning and scheduling modules
M8 - CMMS 7
Labor Module
• Includes:
– Craft Code: Type of craft category; mechanic,
plumber, etc.
– Hourly rate
– Links: such as photographs
– Labor Reports: overtime, labor skill, labor
summary by calendar, labor productivity
M8 - CMMS 8
Work Order System
• WO is the heart of CMMS

• Generate, print and complete Wos
• Should accommodate both unplanned work
and planned work
M8 - CMMS 9
Work Order System
• Includes:
– Priority
– Status: such as waiting for approval, completed, etc.
– Category: PM, emergency, etc.
– Failure Code
– Action Code: Explains actions and builds a history
– Labor: Enter the ID of the person
– Materials: Enter materials required for every WO
– Cost: Material, labor, outside, total
– Downtime: Planned and unplanned
– WO reports: Active WO, Overdue WO, WO material
requirements, Downtime summary, Performance, etc.
M8 - CMMS 10
Work Order Module
M8 - CMMS 11
WO Graphical Reports
M8 - CMMS 12
Planning & Scheduling Module
• The greatest potential for improvement:

– What work is required?
– How can the work be performed effectively?
– What resources are required?
– When should the work be scheduled?
• Backlog:
– Estimated hours required to complete the approved WOs.
– Backlogs are used to identify the following:
• Workload distribution by area, priority, etc.
• Balance of personnel to workload
• Determine if work should be contracted outside or deferred
M8 - CMMS 13
Planning & Scheduling
• Relative Importance Factor

– RIF = Job Priority x Equipment Criticality
M8 - CMMS 14
Planning & Scheduling
• CMMS allows scheduling WOs based on RIF, &

available resources
• Usually planning and scheduling module does
not have an input screen.
• A typical scheduling report:
M8 - CMMS 15
Vendor Module
• This module stores information about the
suppliers including names, contact
information & payment terms
• Create reports:
– Cost Variance: Percentage of cost increase
– Location
M8 - CMMS 16
Inventory Control Module
• This module keeps track of quantities in stock

• When a part reach ROP, CMMS generates a requisition for these parts
based on an economic order quantity (EOQ)
• Includes:
– Description
– Substitute: An alternate part that can be substituted
– Where used: Enter all equipment numbers where this part is used
– Location: Identifies part location
– ROP
– Vendor
– Cross-Reference: a provision to store manufacturer’s and vendor’s part
numbers
– Open WOs
– Open Pos
– Physical count
– Inventory Reports: Cost, parts usage history, inventory on hand, ROP, etc.
M8 - CMMS 17
Purchasing Module
• This module enables you to create and process purchase

requisition & POs
• Includes:
– Dates
– PO Status
– Receiving: Parts received against a PO, quantity and costs
– Blanket Pos
– Currency
– PO Reports:
• Open PO
• Parts received
• Cost variance
• Vendor performance
M8 - CMMS 18
Budgeting Module
• This module allows to set up various budget

accounts and allocate funds to each account
• When a transaction takes place, the cost is
charged to the appropriate account number
• Budget reports:
– Budget cost
– Variances: Labor & material
• Purpose:
– Control expenditures
– Help budgeting for the following year
M8 - CMMS 19
Roadblocks to CMMS Acquisition
• Budget are not available now

• Inadequate project payback or savings
• Management Information System does not give
high enough priority to CMMS
• Failure to reach consensus on the features
required in a CMMS
• Company too small for a system
• Prior attempt failed
• Do not have enough computer capability
• Do not believe a CMMS will work in our situation
M8 - CMMS 20
Step-By-Step Process
• Form a team
• Identify problems with current system:
– Excessive downtime
– Lack of inventory control
• Determine objectives, features and benefits
• Financial Analysis
– Savings
• Set up Key Performance Indicators
M8 - CMMS 21
Determine objectives, features and benefits
M8 - CMMS 22
Benefits & Savings Guidelines
M8 - CMMS 23
Example of Savings using CMMS
M8 - CMMS 24
Survey Results Displaying Benefits of CMMS
M8 - CMMS 25
Make Vs. Buy Decision
Options:
• In-House Development
• Purchase Ready-Made Software
What are the advantages and disadvantage of

every option??
M8 - CMMS 26
Software Selection
M8 - CMMS 27
CMMS Vendors
• Ashcom: www.ashcomtech.com
• Champs: www.champsinc.com
• Datastream Systems: www.datastream.net
• IFS North America: www.ifsna.com
• Indus International: www.indus.com
• Ivara: wwww.ivara.com
• Micro West Software:
www.microwestsoftware.com
• MRO: www.mro.com
• SAP: www.sap.com
M8 - CMMS 28

Advanced Maintenance Management

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Advanced Maintenance Management

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MODULE ONE

INTRODUCTION TO MAINTENANCE MANAGEMENT

• Maintenance is the upkeep of property or

• Webster Dictionary defines the word

“To keep in an existing state (as of repair, efficiency

1. To ensure optimum availability and reliability of

Expectations of the maintenance function

1930 - 1950 1950 - 1980 1980 - 2000

Fix it when it breaks Higher availability Higher availability

1930 - 1950 1950 - 1980 1980 - 2000

Fix it when it breaks Scheduled Condition monitoring

Computerization Computerized Maint.

Early Normal life Final life

• What are the countermeasures of this phase??

• What are the countermeasures for this phase?

• Is it morally wrong to have assets in this state?

• Maintenance is concerned with Assets

• Assets must be identified

• Asset information must be recorded

• OEE is a "best practices" way to monitor and

OEE = Actual / Ideal

OEE = Availability x Performance x Quality

Availability = Operating Time / Planned Production

Performance = (Total Pieces/OT) /Ideal Run Rate

• Quality takes into account Quality Loss, and is

Quality = Good Pieces / Total Pieces

There are 2 types of Maintenance Organizations:

Mechanics or craftsmen are assigned to work in any or

Maintenance crews are assigned to specific areas in the

Maintenance work load and its pattern

Note : The maintenance organization will need continuous

1. A Manager gets his work done

4. The Three Managerial Skills :

Human skill is constant

• Develop database of skills required & available

HYGIENE FACTORS THE MOTIVATORS

LOW TASK BEHAVIOR HIGH

S1 TELLING / effective with low maturity (M1).

S2 SELLING / effective with low to moderate

S3 PARTICIPATING / effective with moderate

S4 DELEGATING / effective with high maturity

Reduce close supervision

 CLEAR TEAM OBJECTIVES

• A series of activities designed to hold or keep

Hidden Costs Buried in Departmental Budgets

“Operations & Maintenance activities represent a significant,

Strategy Maintenance type

Time based (calendar time

Condition based Predictive maintenance

Failure finding Routine maintenance

Maintenance types: predictive maintenance

• What percentage of your time should be spent

Preventive Maintenance is a series of tasks

Goal of Preventive Maintenance is either:

Give An example for the following preventive maintenance tasks:

TLC tasks are the key to TPM and PM

• Ford found that 60% of its breakdowns were

• Unit Based: Go down the list and complete it on

What are the advantages and disadvantages for each type??

• PM systems also include:

• PCR is divided into two strategies:

• The components doesn’t fail

• “Predictive” means to declare in advance

The majority of failures do not occur instantaneously but develop over