DILLA UNIVERSITY

COLLEGE OF ENGINEERING AND TECHNOLOGY

SCHOOL OF MECHANICAL AND AUTOMOTIVE
ENGINEERING
DEPARTMENT OF MECHANICAL ENGINEERING
COURSE TITLE: MAINTENANCE OF MACHINERY AND
INSTALLATION
COURSE CODE: MENG5231
TITLE: MAINTENANCE ORGANISATION
Group assignment

Group Members Name ID NO.

1. MUHABA MUHAMED----------------------------------------5720/18
2. UMAR NURA----------------------------------------------------2752/18
3. MUKEREM MOHAMMED----------------------------------0691/16
4. KULENI GESSESE---------------------------------------------3571/18

Submitted to: MRS. MARTA

Submitted date:30/05/2015
Introduction
Organizing is the process of arranging resources (people, materials,
technology etc.) together to achieve the organization’s strategies and
goals. The way in which the various parts of an organization are
formally arranged is referred to as the organization structure. It is a
system involving the interaction of inputs and outputs. It is
characterized by task assignments, workflow, reporting relationships,
and communication channels that link together the work of diverse
individuals and groups. Any structure must allocate tasks through a
division of labor and facilitate the coordination of the performance
results. Nevertheless, we have to admit that there is no one best
structure that meets the needs of all circumstances. Organization
structures should be viewed as dynamic entities that continuously
evolve to respond to changes in technology, processes and
environment, (Daft, 1989 and Schermerhorn, 2007).
Frederick W. Taylor introduced the concept of scientific management
(time study and division of labor), while Frank and Lilian Gilbreth
founded the concept of modern motion study techniques. The
contributions of Taylor and the Gilbreths are considered as the basis
for modern organization management Until the middle of the twentieth
century maintenance has been carried out in an unplanned reactive way
and for a long time it has lagged behind other areas of industrial
management in the application of formal techniques and/or information
technology. With realization of the impact of poor maintenance on
enterprises’ profitability, many managers are revising the organization
of maintenance and have developed new approaches that foster
effective maintenance organization.
Maintenance cost can be a significant factor in an organization’s
profitability. In manufacturing, maintenance cost could consume 2–
10% of the company’s revenue and may reach up to 24% in the
transport industry (Chelson, Payne and Reavill, 2005). So,
contemporary management considers maintenance as an integral
function in achieving productive operations and high-quality products,
while maintaining satisfactory equipment and machines reliability as
demanded by the era of automation, flexible manufacturing systems
(FMS), “lean manufacturing”, and “just-in-time” operations.
However, there is no universally accepted methodology for designing
maintenance systems, i.e., no fully structured approach leading to an
optimal maintenance system (i.e., organizational structure with a
defined hierarchy of authority and span of control; defined
maintenance procedures and policies, etc.). Identical product
organizations, but different in technology advancement and production
size, may apply different maintenance systems and the different
systems may run successfully. So, maintenance systems are designed
using experience and judgment supported by a number of formal
decision tools and techniques. Nevertheless, two vital considerations
should be considered: strategy that decides on which level within the
plant to perform maintenance, and hence outlining a structure that will
support the maintenance; planning that handles day-to-day decisions
on what maintenance tasks to perform and providing the resources to
undertake these tasks.
The maintenance organizing function can be viewed as one of the basic
and integral parts of the maintenance management function (MMF).
The MMF consists of planning, organizing, implementing and
controlling maintenance activities. The management organizes,
provides resources (personnel, capital, assets, material and hardware,
etc.) and leads to performing tasks and accomplishing targets. Figure
1.1 shows the role organizing plays in the management process. Once
the plans are created, the management’s task is to ensure that they are
carried out in an effective and efficient manner. Having a clear mission,
strategy, and objectives facilitated by a corporate culture, organizing
starts the process of implementation by clarifying job and working
relations (chain of command, span of control, delegation of authority,
etc.).
In designing the maintenance organization there are important
determinants that must be considered. The determinants include the
capacity of maintenance, centralization vs decentralization and in-
house maintenance vs outsourcing. A number of criteria can be used to
design the maintenance organization. The criteria include clear roles
and responsibilities, effective span of control, facilitation of good
supervision and effective reporting, and minimization of costs.
Maintenance managers must have the capabilities to create a division
of labor for maintenance tasks to be performed and then coordinate
results to achieve a common purpose. Solving performance problems
and capitalizing on opportunities could be attained through selection of
the right persons, with the appropriate capabilities, supported by
continuous training and good incentive schemes, in order to achieve
organization success in terms of performance effectiveness and
efficiency.

Following are the basic concept in maintenance organization

a- establish reasonably clear division of authority, with minimum
overlap authority can be divide functionally, geographically, on
the basis of expediency or it can be on some combination of all
the three. But there must always be clear definition of the line
of demarcation to avoid confusion and conflict. The overlap
should be bare minimum.
b- Keep vertical line of authority and responsibility as small as
possible unclear or many level of intermediate supervision or
over application of specialized functional employees must be
minimize.
c- Maintain an optimum number of people reporting to one
individual in a good organization, number of people reporting
to one individual may vary from 3-6, depend on the type of job.
when a job requires a fairly small amount of supervision one
man can direct the activity of 12 or more persons.
d- The total maintenance workload should be reasonable
distributed amongst all concerned person to avoid conflicts
amongst workers.
e- Maintenance is not subordinate to operation. Again difference
between supportive service and subordinate service should be
keep in mind.

1.2 Maintenance Organization Objectives and Responsibility

A maintenance organization and its position in the plant/whole
organization is heavily impacted by the following elements or factors:
 Type of business, e.g., whether it is high tech, labor intensive,
production or service;
 Objectives: may include profit maximization, increasing
market share and other social objectives;
 Size and structure of the organization;
 Culture of the organization; and
  Range of responsibility assigned to maintenance. Maintain the
capability of the company's assets to perform their designed
function thereby increasing shareholder value by maximizing
the company's return on assets.
 Maximizing production or operational throughput
 Identify and implement cost reductions
 Provide accurate equipment maintenance records
 Collect necessary maintenance cost information
 Optimize maintenance resources
 Labor, materials, contract
 Optimize capital equipment life
 Minimize energy usage
 Responsibility for Environmental, Safety, and Health
compliance.

PLANNING
Setting
performance
objectives and
developing
decisions on how to
achieve them

CONTROLLING
Measuring
performance of the
maintained equipment
and taking preventive
and corrective actions
to restore the
designed (desired)
specifications
ORGANIZING
Creating structure:
setting tasks
(dividing up the
Leader’s work), arranging
Influence resources (forming
maintenance crews),
and coordinating
activites to perform
maintenance tasks

IMPLEMENTING
Executing the plans to
meet the set
performance
objectives

Figure 1.1. Maintenance organizing as a function of the management

process

Organizations seek one or several of the following objectives: profit

maximization, specific quality level of service or products, minimizing
costs, safe and clean environment, or human resource development. It
is clear that all of these objectives are heavily impacted by maintenance
and therefore the objectives of maintenance must be aligned with the
objectives of the organization.
The principal responsibility of maintenance is to provide a service to
enable an organization to achieve its objectives. The specific
responsibilities vary from one organization to another; however, they
generally include the following according to Duffuaa et al. (1998):

1. Keeping assets and equipment in good condition, well

configured and safe to perform their intended functions;
2. Perform all maintenance activities including preventive,
predictive; corrective, overhauls, design modification and
emergency maintenance in an efficient and effective manner;
3. Conserve and control the use of spare parts and material; 4.
Commission new plants and plant expansions; and
5. Operate utilities and conserve energy.

The above responsibilities and objectives impact the organization

structure for maintenance as will be shown in the coming sections.

Factor affecting maintenance organization

1. Type of operation: e.g. buildings, machine tools, process
equipment, manufacturing facilities, piping, mining machineries
electrical equipment’s etc.
2. Continuity of operation: e.g. if the operation is 5/6 days a week
single shift one or 7 days a week, round the clock (3 shift) one
or others considerable difference may be in this on how the
maintenance engineering department may be structured and how
many personally may be needed.
3. Geographical location: the maintenance that may be needed in a
compact plant will vary considerable from the one that is
dispersed through several buildings or over larger area.
4. Equipment’s age and condition; older the equipment, more
maintenance and super vision may be needed for older plants.
5. Size of plant/industry: here also the actual size of plant and it is
volume of business will have dictated the number of
maintenance and employees needed and amount of super vision
for those many more sub division in both the line and staff
personnel can be justified since the overhead can be distributed
amongst more departments.
6. Scope of plant maintenance engineering department: this scope
is direct relationship of maintenance policy. inclusion of
responsibilities for a number of secondary functions means
additional man power and supervision.
 7. Employees level of training and reliability: this highly variable
factor has strong impact on maintenance organization because it
dictates how much work can be done and how will it can be
performed.
8. Complexity of business and machines and extent of automation
and built-in test and monitoring equipment’s provided: this may
lead to less frequent physical check and correspondingly less
man power.
9. Prevailing maintenance type/system of the industry (for older
plants)
10. Extent of out-sourcing available or permissible: availability of
highly competent maintenance contractors around the industry
may dictated out sourcing some maintenance jobs and
correspondingly reduce the industry’s maintenance
organization.
11. Local labor laws and prevailing industrial culture and practice

5 Things Every Maintenance Organization Should Be Doing

While maintenance organizations differ depending on the industry,

size, region, and overall organizational structure, there are certain
things that all maintenance organizations should be doing no matter the
aforementioned variables.
1. Prioritizing Safety
Safety must always be a focus of all maintenance organizations.
It is the duty and responsibility of the company to ensure that all
employees’ safety is of the top concern.
And while it is difficult to completely eliminate hazards within the
workplace, there are measures that can be taken to reduce situations
that may pose a risk to the worker and to the environment.
One way that maintenance organizations can minimize risk to their
workers is to eliminate (or greatly reduce) any unplanned or emergency
work.
Through the elimination of emergency work, you can better ensure that
the asset/machine that is receiving maintenance is offline and that all
the appropriate tools and resources (people) needed are available when
the maintenance is planned to be performed.
Proper planning and scheduling play an important role in the
elimination of emergency work.
By having sufficient preventive maintenance processes in place, you
help reduce the likelihood of unplanned downtime.
Many maintenance organizations have already started to shift from
reactive to preventive maintenance, with many more heading towards
predictive maintenance in the hopes of eliminating unplanned
downtime and emergency work altogether.
2. Capturing and Analyzing Data
“Without data, you’re just another person with an opinion.” – Deming.
We are living in the data age. The sheer volume of data that is being
collected is almost incomprehensible.
The majority of organizations are hiring data scientists and data
analysts to sift through all of the millions of data points that are being
collected in order to make sense of it all and spot trends for
optimization purposes.
It’s no secret that data is valuable but understanding how to analyze it
is even more valuable.
As mentioned above, many maintenance organizations are shifting
from reactive to preventive to predictive maintenance.
In order to become a truly predictive maintenance organization, it is
imperative that data is not only being collected but being used to better
understand a company’s asset performance as well as when
maintenance should be performed to prolong the life of the asset. All
while keeping safety and production top of mind.
Not all assets are created equal!
Meaning, assets must be ranked by their criticality in order to ensure
that the most critical assets are kept running so that production is
optimized.
Assessing the criticality of assets is something that should be done very
early in the overall maintenance process. To read more about asset
criticality, you can access our Asset Criticality White Paper here.
3. Managing and Controlling Costs
Controlling costs is a major concern for all maintenance organizations.
Maintenance has often been seen as a cost center and so controlling
those costs becomes pretty important in terms of a company’s overall
bottom-line.
Gaining control of maintenance costs is a team effort that requires
effective tools and continuous process improvement.
It requires the visibility afforded by aligning analytics, budgeting,
scheduling, warranty, and mobility tools that operate together as a
natural extension of the corporate financials and asset management
systems (ERP/EAM), greatly simplifying cost management.
There are many different areas and practices in which maintenance
costs can be controlled, such as:
1. Recognizing how maintenance influences performance and
profitability
2. Properly prioritizing maintenance work
3. Taking actions based on analytics
4. Applying optimal budgeting strategies
5. Ensuring effective planning and scheduling
6. Ramping up warranty practices
7. Incorporating mobility solutions
8. Employing the right tools and technologies.
4. Optimization [of Maintenance Processes]
Optimization is a buzz word that is thrown around all too often. But,
the actual process of optimization is an important practice for
maintenance organizations looking to maximize equipment uptime and
generate as much output as possible from their assets.
In order to truly optimize the maintenance process, you must first have
a process in place.
Maintenance is more than just fixing assets. Maintenance comprises
many different components such as; identifying what work needs to be
completed, the planning and scheduling of that work, the execution
and completion of the work, and ultimately, the analysis of all of those
steps for continued improvement.
The below graphic identifies the work management process, which is
a continuous loop that occurs within maintenance organizations around
the world.
The process itself does not seem overly complex but in order to
optimize the process, there must be strategies and tools put in place to
ensure that no part of the process is being missed and that errors are
minimized along the way.
To successfully optimize the maintenance process, there must be a
strategy put in place.
5. Strategy Definition and Advancement
Far too often, processes are put in place to address a single pain point
without factoring in how that may affect other areas of business
operations.
Furthermore, once a process has been changed to address a pain point,
it is often forgotten or deemed – fixed.
For example, some maintenance organizations will identify the need
for improved planning and scheduling processes and simply change
their process or add a tool to help with planning and scheduling without
fully understanding why their planning and scheduling is failing to
begin with. Once that process is changed or a tool gets added, the
problem is seen as “fixed” and doesn’t get looked at again until years
down the road.

Figure 1.2 the organization of maintenance chart

Duties or Functions of Maintenance Department:

 Inspection
 Engineering
 Maintenance (including Preventive Maintenance)
 Repair
 Overhaul

1. Develop in coordination with maintenance effective stocking

polices to minimize ordering, holding and shortages costs;
2. Coordinate effectively with suppliers to maximize organization
benefits;
3. Keep good inward, receiving, and safe keeping of all supplies;
4. Maintain and update records; and Keep the stores orderly and
clean.
1.12 Summary
This topic considered organizing as one of the four functions of
management. It is the process of arranging resources (people,
materials, technology, etc.) together to achieve the organization’s
strategies and goals. Maintenance organization structure is the way
various part of the maintenance organization is formed including
defining responsibilities and roles of units and individuals. A set of
criteria are provided to assess and design organization structures and
the main issues to be addressed are outlined. The issues include
centralization, decentralization and outsourcing. The chapter describes
three types of organization structures. In addition, several functions
that could support maintenance organization such as material and spare
management, training and the management of labor relations are
presented.
References
Bradley PS (2002) Designing the Best Maintenance.
http:www.samicorp.com:1–5
Chelson VJ, Payne CA, Reavill RP (2005) Management for
Engineers Scientists and
Technologists, 2nd edn. Wiley, Chichester England
Daft LR (1989) Organization Theory and Design, 3rd edn. West
Publishing Company, New York
Duffuaa SO, Raouf A, Campbell JD (1998) Planning and Control of
Maintenance Systems: Modeling and Analysis. Wiley, New
York.
Isa SEA (1989) Maintenance Management in Industrial Entreprises.
J of Ind Coop 1:44–70.
Haroun AE, Ogbugo MA (1981) Development of Maintenance
Policies and Procedures for Crosield Electronics at Milton
Keynes. CIT, Cranfield, England
Kanaway G (1992) Introduction to Work Study, 4th edn. ILO,
Geneva
Kelly A (1984) Maintenance Planning and Control, Butterworth,
London
Niebel B (1994) Engineering Maintenance Management, 2nd edn.
Marcel Dekker, New York
Schermerhorn JR (2007) Management, 9th edn. John Wiley, New
York