1. McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 15S Maintenance

2. 15S-2 Learning Objectives  Explain the importance of maintenance in production systems  Describe the range of maintenance activities  Discuss preventative maintenance and the key issues associated with it  Discuss breakdown maintenance and the key issues associated with it  State how the Pareto phenomenon pertains to maintenance decisions

3. 15S-3 Introduction  Maintenance  All activities that maintain facilities and equipment in good working order so that a system can perform as intended  Two basic categories  Building and grounds  Equipment maintenance

4. 15S-4 Goal of Maintenance  To keep production systems in good working order at minimal cost  Reasons for maintenance  To avoid production or service disruptions  To not add production or service costs  To maintain high quality  To avoid missed delivery dates

5. 15S-5 Reactive vs Proactive Reactive Maintenance:  Breakdown maintenance  Reactive approach; dealing with breakdowns or problems when they occur Proactive Maintenance:  Preventive maintenance  Proactive approach; reducing breakdowns through a program of lubrication, adjustment, cleaning, inspection, and replacement of worn parts

6. 15S-6  Reasons for keeping equipment running  Avoid production disruptions  Not add to production costs  Maintain high quality  Avoid missed delivery dates Maintenance Reasons

7. 15S-7  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

8. 15S-8 Total Maintenance Cost Breakdown and repair cost Optimum Amount of preventive maintenance Cost Total Cost Preventive maintenance cost Table 15S.1

9. 15S-9  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

10. 15S-10 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 Number of breakdowns0 123 Frequency of occurrence.20.30.40.10

11. 15S-11 Number of Breakdowns Frequency of Occurrence Expected number of Breakdowns 01230123.20.30.40.10 1.00 0.30.80.30 1.40 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

12. 15S-12 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

13. 15S-13 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

14. 15S-14 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?