1. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X Chapter 14 PROCESS AND DELIVERY SYSTEM RELIABILITY AND MAINTENANCE Terry Hill

2. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X OVERVIEW Process reliability - making a system FAIL-SAFE Process reliability - CHECKING for failure Maintenance - the CONCEPT and TASK Which PARTS of a PROCESS to maintain TYPES of maintenance PLANNED maintenance Other POLICY ISSUES Total productive maintenance (TPM) ENERGY management Managing the maintenance FUNCTION

3. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X PROCESS RELIABILITY - MAKING A SYSTEM FAIL-SAFE Integrating fail-safe MECHANISMS to reduce failures - poka-yoke concept Service DELIVERY SYSTEM illustrations STAFF-RELATED illustrations CUSTOMER-RELATED illustrations

4. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X PROCESS RELIABILITY - CHECKING FOR FAILURE ASSESSING and MEASURING failure Identifying LEVELS of failure ANALYSIS failures

5. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X PROCESS RELIABILITY - CHECKING FOR FAILURE Failure is a function of TIME - bathtub curve Principal ways of MEASURING failure Rate of failure Process reliability Meantime between failures Process availability (Assessing and measuring failure)

6. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X PROCESS RELIABILITY - CHECKING FOR FAILURE (The bathtub curve) Exhibit 14.1 from page 527

7. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X PROCESS RELIABILITY - CHECKING FOR FAILURE IN-PROCESS checks OVERALL checks (Identifying levels of failure)

8. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X PROCESS RELIABILITY - CHECKING FOR FAILURE Failure MODE analysis How likely it is that a failure will occur Failure EFFECT analysis Review of possible failures and their effect Failure CRITICALITY analysis Check on potential failures and consequences in delivery system (Analysing failures)

9. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X MAINTENANCE - THE CONCEPT AND TASK Increasing use of TECHNOLOGY to replace staff UK maintenance BILL of £14bn UK equipment INVESTMENT of £4bn (The concept)

10. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X MAINTENANCE - THE CONCEPT AND TASK (Task) Exhibit 14.2 from page 531

11. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X WHICH PARTS OF A PROCESS TO MAINTAIN Developing physical asset REGISTER Unique reference number Complete description Location Details of major parts and inventory holding Critical nature to the process

12. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X DIFFERENT TYPES OF MAINTENANCE REACTIVE Fix as needed PREVENTIVE (or scheduled) Fix at predetermined intervals CONDITION-BASED (or predictive) Based on knowledge of condition of an item Systematic inspection STAND-BY equipment CORRECTIVE Making improvements Equipment UPGRADES Modifying to increase process reliability or faciliatate repairs

13. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X PLANNED MAINTENANCE Develop plan using MIX of maintenance types BENEFITS Reduce costs Maintenance completed when convenient Lower capacity losses Minimum spare parts inventory Effectively use specialised contract maintenance Reduce overtime working Less disruption Need for stand-by equipment can be reviewed Reliability-centred maintenance (RCM)

14. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X PLANNED MAINTENANCE Exhibit 14.4 from page 537 (Benefits from using RCM)

15. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X OTHER POLICY ISSUES Internal or external PERSONNEL Centralized or decentralized MAINTENANCE Group or individual REPLACEMENT policies Replacement parts in INVENTORY - critical vs normal parts Computerized RECORDS

16. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X TOTAL PRODUCTIVE MAINTENANCE PRINCIPLES Identifying cause, not treating symptoms Routine care Operators best able to monitor equipment performance Suitable maintenance tasks undertaken by operators PHASES Awareness study and pilot programmes Bring all sections up to best practice Raise overall performance by developing staff and equipment Strive for zero losses

17. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X TOTAL PRODUCTIVE MAINTENANCE Exhibit 14.5 from page 541 (Benefits of TPM)

18. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X ENERGY MANAGEMENT TASKS to be addressed Undertake audit and set targets Efficiency of energy use Energy management systems (e.g. sensors and supervisory terminals) Energy management system INVESTMENTS growing - US exceed £2bn

19. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X MANAGING THE MAINTENANCE FUNCTION Measuring WORKLOADS Length of jobs Group capacity assessment (GCA) and universal maintenance standards (UMS) schemes Planning MAINTENANCE Measuring PERFORMANCE Internal measures - e.g. effective performance Operations-related measures - e.g. # breakdowns and lost time Overall measures - e.g. overall equipment effectiveness (OEE)

20. © AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X MANAGING THE MAINTENANCE FUNCTION Exhibit 14.8 from page 546 (OEE)