Operations

Management
Chapter 17 –
Maintenance and Reliability
PowerPoint presentation to accompany
Heizer/Render
Principles of Operations Management, 6e
Operations Management, 8e

© 2006
© 2006 Prentice
Prentice Hall, Inc. Hall, Inc. 17 – 1
 Outline
1. Global Company Profile: Orlando Utilities
Commission
2. The Strategic Importance Of Maintenance And
Reliability
3. Reliability
a. Improving Individual Components
b. Providing Redundancy
4. Maintenance
a. Implementing Preventive Maintenance
b. Increasing Repair Capability
5. Total Productive Maintenance
6. Techniques For Establishing Maintenance
Policies
© 2006 Prentice Hall, Inc. 17 – 2
 Learning Objectives
When you complete this chapter, you
should be able to:
Identify or Define: Describe or Explain:
1. Maintenance 1. How to measure
2. Mean time between system reliability
failures 2. How to improve
3. Redundancy maintenance
4. Preventive 3. How to evaluate
maintenance maintenance
5. Breakdown performance
maintenance
6. Infant mortality
© 2006 Prentice Hall, Inc. 17 – 3
 Orlando Utilities Commission
1. Maintenance of power generating plants
2. Every year each plant is taken off-line for 1-3 weeks
maintenance
3. Every three years each plant is taken off-line for 6-8 weeks
for complete overhaul and turbine inspection
4. Each overhaul has 1,800 tasks and requires 72,000 labor
hours
5. OUC performs over 12,000 maintenance tasks each year
6. Every day a plant is down costs OUC $100,000
7. Unexpected outages cost between $350,000 and $600,000
per day
8. Preventive maintenance discovered a cracked rotor blade
which could have destroyed a $27 million piece of
equipment

© 2006 Prentice Hall, Inc. 17 – 4

 Strategic Importance of
Maintenance and Reliability
Failure has far reaching effects on a firm’s
1.Operation
2.Reputation
3.Profitability
4.Dissatisfied customers
5.Idle employees
6.Profits becoming losses
7.Reduced value of investment in plant and equipment

© 2006 Prentice Hall, Inc. 17 – 5

 Maintenance and Reliability
The objective of maintenance and reliability is
to maintain the capability of the system while
controlling costs
1.Maintenance is all activities involved in keeping a
system’s equipment in working order
2.Reliability is the probability that a machine will
function properly for a specified time

© 2006 Prentice Hall, Inc. 17 – 6

 Important Tactics

1. Reliability
a. Improving individual components
b. Providing redundancy
2. Maintenance
a. Implementing or improving preventive
maintenance
b. Increasing repair capability or speed

© 2006 Prentice Hall, Inc. 17 – 7

 Strategy and Results
Employee Involvement
Information sharing
Skill training
Reward system Results
Power sharing
Reduced inventory
Improved quality
Improved capacity
Reputation for quality
Maintenance and Reliability Continuous improvement
Procedures Reduced variability
Clean and lubricate
Monitor and adjust
Minor repair
Computerize records
Figure 17.1

© 2006 Prentice Hall, Inc. 17 – 8

 Reliability
Improving individual components

R s = R 1 x R2 x R 3 x … x R n

where R1 = reliability of component 1

R2 = reliability of component 2
and so on

© 2006 Prentice Hall, Inc. 17 – 9

 Overall System Reliability
100 –
n=1
Reliability of the system (percent)

80 – n=1
0

60 –

n=
40 – n 50
=
10
n 0
=
20 – 20
n= 0
n
=

30
0
40
0

| | | | | | | | |
0100
– 99 98 97 96
Figure 17.2
Average reliability of all components (percent)
© 2006 Prentice Hall, Inc. 17 – 10
 Reliability Example

R1 R2 R3

.90 .80 .99 Rs

Reliability of the process is

Rs = R1 x R2 x R3 = .90 x .80 x .99 = .713 or 71.3%

© 2006 Prentice Hall, Inc. 17 – 11

 Product Failure Rate (FR)
Basic unit of measure for reliability

Number of failures
FR(%) = x 100%
Number of units tested

Number of failures
FR(N) =
Number of unit-hours of operating time

Mean time between failures

1
MTBF =
FR(N)
© 2006 Prentice Hall, Inc. 17 – 12
 Failure Rate Example
20 air conditioning units designed for use in
NASA space shuttles operated for 1,000 hours
One failed after 200 hours and one after 600 hours
2
FR(%) = (100%) = 10%
20
2
FR(N) = = .000106 failure/unit hr
20,000 - 1,200

1
MTBF = = 9,434 hrs
.000106

© 2006 Prentice Hall, Inc. 17 – 13

 Failure Rate Example
20 air conditioning units designed for use in
NASA space shuttles operated for 1,000 hours
One failed after 200 hours and one after 600 hours
2
Failure
FR (%) = rate (100%)
per trip= 10%
20
FR2= FR(N)(24 hrs)(60 days/trip)
FR(N) = FR = = .000106 failure/unit hr
(.000106)(24)(60)
20,000 - 1,200
FR = .152 failures per trip
1
MTBF = = 9,434 hr
.000106

© 2006 Prentice Hall, Inc. 17 – 14

 Providing Redundancy
Provide backup components to
increase reliability

Probability Probability Probability

of first of second of needing
component + component x second
working working component

(.8) + (.8) x (1 - .8)

= .8 + .16 = .96

© 2006 Prentice Hall, Inc. 17 – 15

 Redundancy Example
A redundant process is installed to support
the earlier example where Rs = .713
R1 R2 R3
Reliability has
0.90 0.80 increased
from .713 to .94
0.90 0.80 0.99

= [.9 + .9(1 - .9)] x [.8 + .8(1 - .8)] x .99

= [.9 + (.9)(.1)] x [.8 + (.8)(.2)] x .99
= .99 x .96 x .99 = .94
© 2006 Prentice Hall, Inc. 17 – 16