10

MGMT6397
Operations Management and Managing
Business information

Maintenance and Reliability Decisions

Week 10
Operation Management, Sustainability and Supply Chain Management.
Twelfth Edition.
 Outline

 Global Company Profile

 The Strategic Importance of Maintenance and
Reliability
 Reliability
 Maintenance
 Total Productive Maintenance
 GLOBAL COMPANY PROFILE:
ORLANDO UTILITIES COMMISSION
 10 OM Strategy
Decision

▶ Design of Goods and Services

▶ Managing Quality
▶ Process Strategy
▶ Location Strategy
▶ Layout Strategy
▶ Human Resources
▶ SCM
▶ Inventory Management
▶ Scheduling
▶ Maintenace 4
© 2017 Pearson Education
 The Stanton Energy Center in Orlando.

Two employees are on scaffolding near the top of

Global Company Profile Stanton Energy Center’s 23-story high boiler,
orlando checking
UTILITIES COMMISSION and repairing super heaters.

© 2017 Pearson Education

THE STRATEGIC IMPORTANCE OF
MAINTENANCE AND RELIABILITY
 Strategic Important of
Maintenance and
Reliability

Maintenance
The activities involved in keeping a system’s equipment in working
order

Reliability the probability that a machine part or product will

function properly for a specified time under stated conditions

© 2017 Pearson Education

 Maintenance
Management
Employee Involvement
 Partnering with maintenance
personnel
 Skill training Results
 Reward system
 Employee empowerment • Reduced inventory
• Improved quality
• Improved capacity
• Reputation for quality
Maintenance and Reliability • Continuous improvement
Procedures • Reduced variability
• Clean and lubricate
• Monitor and adjust
• Make minor repair
• Keep computerized records © 2017 Pearson Education
RELIABILITY
 Reliability

 System Reliability

R s = R1 x R2 x R 3 x … x Rn

where R1 = reliability of component 1

R2 = reliability of component 2

and so on

© 2017 Pearson Education

 MTBF (Mean Time
Between Failures)

Number of failures
FR(%) = Number of units x 100%
tested
Number of failures
FR(N) =Number of unit-hours of operating time

1
MTBF =
FR(N)

© 2017 Pearson Education

 Reliability

 Providing Redundancy
The use of backup components or parallel paths to raise reliability

Probability of Probability of Probability of

first second needing
RS = + x
component component second
working working component

(0,8) + (0,8) x (1 – 0,8)

=
= 0,96

© 2017 Pearson Education

MAINTENANCE
 Maintenance

2 type of maintenance:

 Preventive maintenance
A plan that involves routine inspections, servicing and keeping
facilities in good repair to prevent failure.
 Breakdown maintenance
Remedial maintenance that occurs when equipment fails and must
be repaired on an emergency or priority basis.
Infant mortality
The failure rate early in the life of a product or process.

© 2017 Pearson Education

 Traditional View of
Maintenance

Total
costs
Preventive
maintenance costs
Costs

Breakdown
maintenance costs

●
Optimal point (lowest
Maintenance commitment
cost maintenance policy)
 Full Cost View of
Maintenance

Total
costs

Full cost of
breakdowns
Costs

Preventive
maintenance costs

Maintenance commitment ●
Optimal point (lowest
cost maintenance policy)
 Total Productive
MAINTENANCE (TPM)

Combines total quality management with a strategic

view of maintenance from process and equipment
design to preventive maintenance
 Designing machines that are reliable, easy to operate and easy
to maintain
 Emphasizing total cost of ownership when purchasing machines,
so that services and maintenance are included in the cost
 Developing preventive maintenance plans that utilize the best
practices of operators, maintenance departments and depot
service
 Training for autonomous maintenance so operators maintain
their own machines and partner with maintenance personnel
© 2017 Pearson Educatio
 Reference
• Heizer, J., Render, B., & Munson, C. (2017). Operations
management: sustainability and supply chain management.
Pearson. Chapter 17.
Thank You