Maintenence Mgt.

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Slide 1:William J. Stevenson Operations Management 8th edition


Slide 2:CHAPTER 14s Maintenance McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.


Introduction :Introduction Maintenance All activities that maintain facilities and equipment in good working order so that a system can perform as intended Breakdown maintenance Reactive approach; dealing with breakdowns or problems when they occur Preventive maintenance Proactive approach; reducing breakdowns through a program of lubrication, adjustment, cleaning, inspection, and replacement of worn parts


Maintenance Reasons :Reasons for keeping equipment running Avoid production disruptions Not add to production costs Maintain high quality Avoid missed delivery dates Maintenance Reasons


Breakdown Consequences :Production capacity is reduced Orders are delayed No production Overhead continues Cost per unit increases Quality issues Product may be damaged Safety issues Injury to employees Injury to customers Breakdown Consequences


Total Maintenance Cost :Total Maintenance Cost Table 14S.1


Preventive Maintenance :Preventive maintenance: goal is to reduce the incidence of breakdowns or failures in the plant or equipment to avoid the associated costs Preventive maintenance is periodic Result of planned inspections According to calendar After predetermined number of hours Preventive Maintenance


Example S-1 :Frequency of breakdown If the average cost of a breakdown is $1,000, and the cost of preventative maintenance is $1,250 per month, should we use preventive maintenance? Example S-1


Example S-1 Solution :Expected cost to repair = 1.4 breakdowns per month X $1000 = $1400 Preventive maintenance = $1250 PM results in savings of $150 per month Example S-1 Solution


Predictive Maintenance :Predictive Maintenance Predictive maintenance An attempt to determine when best to perform preventive maintenance activities Total productive maintenance JIT approach where workers perform preventive maintenance on the machines they operate


Breakdown Programs :Breakdown Programs Standby or backup equipment that can be quickly pressed into service Inventories of spare parts that can be installed as needed Operators who are able to perform minor repairs Repair people who are well trained and readily available to diagnose and correct problems with equipment


Replacement :Replacement Trade-off decisions Cost of replacement vs cost of continued maintenance New equipment with new features vs maintenance Installation of new equipment may cause disruptions Training costs of employees on new equipment Forecasts for demand on equipment may require new equipment capacity When is it time for replacement?