DEVELOPMENT OF MAINTENANCE

MANAGEMENT SYSTEMS

XYZ Company
 Background

 Mr. Ram kumar the maintenance manager of xyz company was contemplating the need for coping
with the increasing maintenance activities of his plant.

 The proposals approved by management which included the modernisation of the plant and
replacement of some old equipment.

 The company has agreed to invest Rs. 10 crores to implement the proposal.

 This proposal the company has given him the following directives.
 The downtime of plant and equipment should be reduced to zero level within a period of 3 years.
 The cost of maintenance to the total cost of production should be brought down which will result in
a saving of Rs. 10 lakhs per month to Rs. 15 lakhs per month after 3 years.
 The complaints level from production department should be brought to a substantially low.

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 Need for Capacity Expansion
 One major element in the concept of Atma Nirbhar Bharat is replacement of imports. In order to
ramp up steel production, Tata Steel proposes to expand through organic and inorganic growth.
 As per National Steel Policy, the target for annual steel production capacity is 300 MT by 2030.
 Tata Steel Limited plans to achieve 25 MT steel production capacity from current operational
capacity of
20.6 MT (Indian Operations) by 2025 through expansion of its existing steel plants at Jamshedpur (East
Singhbhum district of Jharkhand) & Kalinganagar (Jajpur district of Odisha) and the newly acquired
steel plants - Tata Steel BSL (Angul district of Odisha) & Tata Steel Long Products Limited (Seraikela-
Kharsawan district of Jharkhand).
 In order to cater to the increased demand of Iron ore, all iron ore mines of TATA Steel Ltd.
including
Katamati Iron Mine is going for production expansion in phased manner.
 We have obtained EC for expansion of capacity of steel-making up to 8 MTPA for our Kalinganagar
steel plant and expansion of production from this mine would also cater to the additional requirement of
iron ore.

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The equipment manufacturer makes the necessary modifications to ensure proper
operation. Many of these changes are readily available, but add initial cost to the
equipment. Equipment manufacturers must be competitive with their prices and
typically make modifications only when asked to do so. Upon delivery, the
equipment can be tested to ensure performance. The result is that for a little more
money up front, you have specified reduced equipment downtime.
 Definition:

A formal definition of maintenance is “that

function of manufacturing management that
is concerned with day to day problem of
keeping the physical plant in good operating
condition”
 Objectives:
• Minimize loss of productive time
• Minimize repair time & cost
• Keep productive assets in working
condition
• Minimize accidents
• Minimize total maintenance cost
• Improve quality of products
 Importance:
• Dependability of service
• Assured quality
• Prevent equipment failure
• Cost control
• Huge investment in equipment
 Areas of Maintenance:
1. Civil maintenance- Building construction and
maintenance, maintaining service facilities
2. Mechanical Maintenance- Maintaining
machines and equipments, transport vehicles,
compressors and furnaces.
3. Electrical Maintenance- Maintaining electrical
equipments such as generators, transformer,
motors, telephone systems, lighting, fans, etc.
 ORGANISATION MAY USE ANY OR ALL THE
FIVE TYPES OF MAINTENANCE

• Breakdown maintenance or corrective

maintenance
• Preventive maintenance
• Predictive maintenance
• Routine maintenance
• Planned maintenance
BREAKDOWN MAINTENANCE

• Occurs when there is a work stoppage due

to machine breakdown
• Maintenance becomes repair work
• Seeks to get the equipment back into
operation as quickly as possible
• To control the investment in replacement
spare machines.
 Preventive management

It is undertaken before the need arises and aims

to minimize the possibility of un -anticipated
production interruption or major breakdowns.
 Predictive maintenance:

In this, sensitive intruments (eg.vibration

analysers,amplitude meters,audio
gauges,optical tooling and resistance gauges)
are used to predict trouble. Conditions can be
measured on a continuous basis and this
enables the maintenance people to plan for
an overhaul.
 Routine maintenance:

This includes activities such as periodic

inspection,cleaning,lubrication and repair of
production equipments after their service life.
 Planned maintenance:

It involves the inspection of all plant and

equipment, machinery, buildings according to a
predetermined schedule in order to service
overhaul, lubricate or repair, before actual break
down or deterioration in service occurs.
Prepare an implementation proposal (phase
wise within 3 years).
 In a new plant

• Since the maintenance department is generally overloaded with work from the start-up
period onward, it is advisable to organize the maintenance function during construction
of the plant.
• - Engineers in the maintenance department have to study the proposed organization
chart and prepare operational procedures.- Mechanical and electrical maintenance teams
can benefit from being involved in construction and start-up of the plant.
• - The central workshop should be operational very early, before machines are installed.
• - The maintenance methods office must be set up so that it is in operation when
equipment arrives. Method officers should start establishing the preventive maintenance
and lubrication file, checking the technical documentation and completing the spare
parts forecasts.
• - The rest of the central maintenance planning office (CMPO) should be gradually put in
place, at least one year before start-up.
• - The spare parts maintenance section (SPMS) can be put in place gradually, once the
equipment and extra parts start arriving.
• - Immediately after start-up the mechanical and electrical services should concentrate on
ensuring the availability of the machines. Priority should be given as soon as possible to
preventive maintenance.
A. Apply the TPM system
1. State the objectives of the department.

2. Formulate the policies to carry out objectives

3. Prepare plans to important policies
4. Prepare procedures to implement plans
5. Draw a network of activities
 WHAT IS TPM?

TPM (Total Productive Maintenance) is a holistic approach to equipment

maintenance that strives to achieve perfect production:
• No Breakdowns
• No Small Stops or Slow Running
• No Defects
In addition it values a safe working environment:
• No Accidents
TPM emphasizes proactive and preventative maintenance to maximize the
operational efficiency of equipment. It blurs the distinction between the roles of
production and maintenance by placing a strong emphasis on empowering
operators to help maintain their equipment.
The implementation of a TPM program creates a shared responsibility for
equipment that encourages greater involvement by plant floor workers. In the
right environment this can be very effective in improving productivity (increasing
up time, reducing cycle times, and eliminating defects).
1. Autonomous maintenance: Routine maintenance, such as cleaning, lubrication
and inspection, is performed by the machine operator.
2. Focused improvement: Creating a voluntary small group to identify the cause of
failure, as well as possible plant and equipment modification.
3. Planned maintenance: Data-driven maintenance schedule using prediction and
failure rates.
4. Quality management: Creating production processes to detect and prevent
errors.
5. Early equipment management: Designing new equipment based on knowledge
and understanding gained through TPM program.
6. Education and training: Train and educate operators, maintenance and
managers on necessary information to achieve TPM goals.
7. Administrative and office: Seek ways to apply TPM to administrative and office
functions.
8. Safety, health and environmental conditions: Ongoing maintenance of a safe
and healthy workplace.
Organise the maintenance management system
1. Define the nature of work to be carried out
2. Identify the people
3. Define the work place
4. Prepare work packages for each work place
At face value, every maintenance department’s main purpose is simple: ensure
optimal asset reliability and performance.

You have to plan downtime for the maintenance of critical assets around the production
goals. In other words, your maintenance goals should not prevent you from
achieving your production goals, and ultimately your business goals.
Of course, production and business goals can be unrealistic and unreachable with the
available resources, but that is a whole other discussion we will leave for another day.
While the overarching goals stay the same, the secondary focus of the maintenance
department can change depending on the nature of the business in question. For
example, while an industrial maintenance team might be focused on reducing
downtime, a building maintenance team might place extra focus on energy efficiency.
In a broader sense, the responsibilities of a maintenance department include:

• Prevent unexpected machine breakdowns

• Maximize the availability and reliability of all operating systems
• Keep equipment and operating systems healthy to eliminate potential safety issues
and ensure high operational standards
• Work with production teams to reach production goals
• Support the efforts of other departments
• Provide quality maintenance services while keeping costs under control
• Providing timely and quality maintenance and repair services while keeping costs
under control
Establish the control procedures
1. Objectives of control
2. Procedures for reporting
3. Procedures for evaluation performance
4. Procedures for corrective actions
5. Communication and training procedures

Understanding Internal Controls

Internal controls have become a key business function for every company. This had a
profound effect on corporate governance. The legislation made managers responsible
for financial reporting and creating an audit trail. Managers found guilty of not
properly establishing and managing internal controls face serious criminal penalties.

Importance of Internal Controls

Internal audits evaluate a company’s internal controls, including its corporate
governance and accounting processes. These internal controls can ensure compliance
with laws and regulations as well as accurate and timely financial reporting and data
collection. They help to maintain operational efficiency by identifying problems and
correcting lapses before they are discovered in an external audit.
 Components of Internal Controls
A company's internal controls system should include the following components:
Control environment: A control environment establishes for all employees the
importance of integrity and a commitment to revealing and rooting out
improprieties, including fraud. A board of directors and management create this
environment and lead by example. Management must put into place the internal
systems and personnel to facilitate the goals of internal controls.
Risk Assessment: A company must regularly assess and identify the potential for,
or existence of, risk or loss. Based on the findings of such assessments, added
focus and levels of control might be implemented to ensure the containment of risk
or to watch for risk in related areas.
Monitor: A company must monitor its system of internal controls for ongoing
viability. By doing so, it can ensure, whether through system updates, adding
employees, or necessary employee training, the continued ability of internal
controls to function as needed.
Information/Communication: Solid information and consistent communication
are important on two fronts. First, clarity of purpose and roles can set the stage for
successful internal controls. Second, facilitating the understanding of and
commitment to steps to take can help employees do their job most effectively.
Control Activities: These pertain to the processes, policies, and other courses of
action that maintain the integrity of internal controls and regulatory compliance.
They involve preventative and detective activities.
 Preventative Controls

Internal controls are typically comprised of control activities such as

authorization, documentation, reconciliation, security, and the separation of
duties. They are broadly divided into preventative and detective activities.

Preventative control activities aim to deter errors or fraud from happening in the
first place and include thorough documentation and authorization practices.
Separation of duties, a key part of this process, ensures that no single individual
is in a position to authorize, record, and be in the custody of a financial
transaction and the resulting asset. Authorization of invoices and verification of
expenses are internal controls.

In addition, preventative internal controls include limiting physical access to

equipment, inventory, cash, and other assets.
Why Are Internal Controls Important?

Internal controls are the mechanisms, rules, and procedures

implemented by a company to ensure the integrity of financial and
accounting information, promote accountability, and prevent fraud.
Besides complying with laws and regulations and preventing
employees from stealing assets or committing fraud, internal
controls can help improve operational efficiency by improving the
accuracy and timeliness of financial reporting.