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M INTEN NCE
ORG NIZ TION
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1. Point out the concepts of maintenance
organization and strategies that increases
productivity by increase availability and
capacity at reduced cost.
COURSE LEARNING OUTCOME (CLO)
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MAINTENANCEActivitiesrequiredor undertaken to conserve as nearly,
and as long, as possible the originalconditionof an asset
or resourcewhile compensating for normal wear and tear.
Actionsnecessary for retainingor restoring a piece of
equipment, machine, or systemto the specified operable
condition to achieveits maximum useful life. It includes
corrective maintenanceand preventive maintenance.
DEFINITION
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http://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/required.htmlhttp://www.businessdictionary.com/definition/original.htmlhttp://www.businessdictionary.com/definition/condition.htmlhttp://www.businessdictionary.com/definition/asset.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/wear-and-tear.htmlhttp://www.businessdictionary.com/definition/action.htmlhttp://www.businessdictionary.com/definition/retainer.htmlhttp://www.businessdictionary.com/definition/machine.htmlhttp://www.businessdictionary.com/definition/system.htmlhttp://www.businessdictionary.com/definition/achieve.htmlhttp://www.businessdictionary.com/definition/useful-life.htmlhttp://www.businessdictionary.com/definition/corrective-maintenance.htmlhttp://www.businessdictionary.com/definition/preventive-maintenance.htmlhttp://www.businessdictionary.com/definition/preventive-maintenance.htmlhttp://www.businessdictionary.com/definition/corrective-maintenance.htmlhttp://www.businessdictionary.com/definition/useful-life.htmlhttp://www.businessdictionary.com/definition/achieve.htmlhttp://www.businessdictionary.com/definition/system.htmlhttp://www.businessdictionary.com/definition/machine.htmlhttp://www.businessdictionary.com/definition/retainer.htmlhttp://www.businessdictionary.com/definition/action.htmlhttp://www.businessdictionary.com/definition/wear-and-tear.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/asset.htmlhttp://www.businessdictionary.com/definition/condition.htmlhttp://www.businessdictionary.com/definition/original.htmlhttp://www.businessdictionary.com/definition/required.htmlhttp://www.businessdictionary.com/definition/activity.html7/24/2019 Chapter 1 Maintenance Organization
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ORGANIZATION A means for making people productive in working
together and arranging resources (people, materials,
technology, etc).
A social unitof people that is structuredandmanaged to meet a needor to pursue collective
goals. All organizations have a managementstructure
that determines relationshipsbetween the different
activities and the members, and subdivides and assignsroles, responsibilities, and authorityto carry out different
tasks. Organizations are opensystems--they affect and
are affected by their environment.
DEFINITION
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http://www.businessdictionary.com/definition/unit.htmlhttp://www.businessdictionary.com/definition/structured.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/relationship.htmlhttp://www.businessdictionary.com/definition/member.htmlhttp://www.businessdictionary.com/definition/assign.htmlhttp://www.businessdictionary.com/definition/responsibility.htmlhttp://www.businessdictionary.com/definition/authority.htmlhttp://www.businessdictionary.com/definition/open.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/open.htmlhttp://www.businessdictionary.com/definition/authority.htmlhttp://www.businessdictionary.com/definition/responsibility.htmlhttp://www.businessdictionary.com/definition/assign.htmlhttp://www.businessdictionary.com/definition/member.htmlhttp://www.businessdictionary.com/definition/relationship.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/structured.htmlhttp://www.businessdictionary.com/definition/unit.html7/24/2019 Chapter 1 Maintenance Organization
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MANAGEMENT The organization and coordinationof the activitiesin
order to achievedefined objectives. Management is often
included as a factor of productionalong withmachines,materials, and money.
Management consists of the interlocking functionsofcreating corporate policyand organizing, planning,
controlling, and implementingan organization'sresourcesin order to achieve the objectives of that policy.
DEFINITION
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http://www.businessdictionary.com/definition/coordination.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/achieve.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/production.htmlhttp://www.businessdictionary.com/definition/function.htmlhttp://www.businessdictionary.com/definition/corporate-policy.htmlhttp://www.businessdictionary.com/definition/organizing.htmlhttp://www.businessdictionary.com/definition/planning.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/policy.htmlhttp://www.businessdictionary.com/definition/policy.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/planning.htmlhttp://www.businessdictionary.com/definition/organizing.htmlhttp://www.businessdictionary.com/definition/corporate-policy.htmlhttp://www.businessdictionary.com/definition/function.htmlhttp://www.businessdictionary.com/definition/production.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/achieve.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/coordination.html7/24/2019 Chapter 1 Maintenance Organization
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The main objectivesof having maintenance management
are to make sure a business doesn't stop producing, and if it
does, to rectify the situation in the safest and most expedient
way possible.
In addition, improperly maintained equipment can lead to
safety hazards, employee abuse and misuse of machines
that will lead to increased overhead costs and potential
liability.
Costs of new equipment must be budgeted. Maintenance
factors are part of the calculations done to consider return on
investment when comparing costs and risks.
OBJECTIVE OF MAINTENANCE MANAGEMENT
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Optimize the use of available funds, personnel, facilities,
and equipment through effective maintenance
management methods.
Provide accurate data for maintenance and construction
program decision making.Systematically identify maintenance needs or deficiencies
and capital improvement needs at all field stations.
Enable preparation of service maintenance and
construction budget requests using systematic,
standardized procedures.Monitor and document corrective actions, project
expenditures, and accomplishments.
OBJECTIVE OF MAINTENANCE MANAGEMENT
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Keeping assets and equipment in good condition, well
configured and safe to perform their intended functions.
Perform all maintenance activities including preventive,
predictive; corrective, overhauls, design modification andemergency maintenance in an efficient and effective
manner.
Conserve and control the use of spare parts and material.
Commission new plants and plant expansions; and
Operate utilities and conserve energy.
OBJECTIVE OF MAINTENANCE MANAGEMENT
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Manages Control
One of the most significant advantages of maintenance
management is the management of control. Maintenance
can be planned and serves a pre-active instead of a reactive
(be put to action after an event has come to pass).
Management control ensures timely schedules, well-defined
job descriptions and the availability of standby equipment in
times of disaster.
BENEFITS OF MAINTENANCE MANAGEMENT
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Reduces Overtime
Maintenance management reduces and even eliminates
overtime by reducing the chance of surprises. It ensures all
loose ends are tied and enough contingency planning is
done to manage operations in case of undesirablecircumstances and situations.
Management defines tasks and allocates resources
effectively, ensuring that all objectives are met in a timely
and orderly fashion.
BENEFITS OF MAINTENANCE MANAGEMENT
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Improves Quality
Effective maintenance management improves output and
ensures quality. It gives a small amount of leeway to
tolerances but within well established control limits.
Employee productivity improves, improving the overallproductivity of individual and collective processes. Investing
in maintenance management pays off for a company by
increasing its revenues.
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Ensures Better Support & Service
A well established and documented maintenance
management system provides ample support to production
managers, equipment operators, and other personnel and
users. An effective maintenance management programneeds to be made public (and/or published) for the benefit of
everyone involved. End users can benefit from a better level
of support provided by maintenance management. It allows
for reliable, on time, and quality service.
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Allows Easy Error Spotting
Since maintenance management details the goals and
objectives of departments and employees, it make it easier
for managers to spot errors and deviations from established
and desired outcomes.
Reduces Resource Waste
Maintenance management ensures that labor, materials and
equipment are well utilized, which reduces waste of allocatedresources. Utility costs are lowered and the production of
hazardous waste material is decreased with managed effort.
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Improves Safety
Maintenance management promotes safety and health. It
ensures everyone involved knows safety procedures in case
of a minor or major disaster. A well-implemented
management program examines the risk of potential hazardsand finds ways of addressing them before they pose a risk.
Regular housekeeping programs promote fire prevention and
safety measures.
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Centralized MaintenanceAll crafts and related maintenance functions report to a central
maintenance manager.
The strengths of this structure are:
allows economies of scale;
enables in-depth skill development; andenables departments (i.e., a maintenance department) to
accomplish their functional goals (not the overall organizational
goals).
Best suited for small to medium size organizations.
The weaknesses of this structure are:it has slow response time to environmental changes;
may cause delays in decision making and hence longer
response time;
leads to poor horizontal coordination among departments and
involves a restricted view of organizational goals.
TYPES OF MAINTENANCE ORGANIZATION
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Centralized Maintenance
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Decentralized MaintenanceAll crafts and maintenance craft support staff report to
operations or area maintenance.
The strengths of this structure are :
it allows the organization to achieve adaptability andcoordinationin production units and efficiency in a centralized
overhaul group
facilitates effective coordination both within and between
maintenance and other departments.
The weaknesses of this structure are that it has potential for
excessive administrative overheads and may lead to conflict
between departments.
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Decentralized Maintenance
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Matrix Structure MaintenanceA form of a hybrid structure. Crafts are allocated in some
proportion to production units or area maintenance and to a
central maintenance function that supports the whole plant.
The strengths are: it allows the organization to achieve coordination necessary tomeet dual demands from the environment and flexible sharing of
human resources.
The weaknesses are:
it causes maintenance employees to experience dual authoritywhich can be frustrating and confusing;
it is time consuming and requires frequent meetings and conflictresolution sessions.
To remedy the weaknesses of this structure a management with
good interpersonal skills and extensive training is required.
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Matrix Structure Maintenance
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A maintenance organization and its position in the
plant/whole organization is heavily impacted by the following
elements or factors:
Type of business ( whether it is high tech, labor intensive,
production or service )
Objectives ( may include profit maximization, increasing
market share and other social objectives )
Size and structure of the organization
Culture of the organization Range of responsibility assigned to maintenance.
ROLES IN MAINTENANCE MANAGEMENT ORGANIZATION
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ROLES IN MAINTENANCE MANAGEMENT ORGANIZATION
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TYPES OF MAINTENANCE COST
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Total Cost
Preventive
maintenance
cost
BreakdownmaintenancecostM
aintenanc
ecost(RM)
Optimum
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Spare parts
Labor
Down time (production loss)
OverheadConsumables
Hand tools, power tools and equipment
COST OF MAINTENANCE
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In-house Outsourcing
WHO WILL DO MAINTENANCE?
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Lack of expertise
Too hazardous
No experience
Bound by contract Top management policy
DECISION TO OUTSOURCE
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Customer serviceLoss of productionLoss of customer goodwill, reputation
Machine lifeAvailability of spare parts and expertiseSafety to the user / customerEnvironmental problem (pollutant discharge etc.)
NEED TO CONSIDER
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Example
The record of computer breakdown for
Company PCK for the past 20 months is
shown below.
# of breakdown # of months breakdown occurs
0
1
2
3
4
8
6
2
Total 20
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Each time computer breakdownestimated
loss is RM300
Contract preventive maintenance by
company DKRM220 per month Should PCK contract out preventive
maintenance to DK?
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Solution
Step 1
Calculate expected number of breakdown(based on past records) if the companycontinue without service contract.
Step 2
Compute expected breakdown cost permonth with no preventive maintenance
contractStep 3
Compute the cost of preventive maintenance
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Solution
Step 4
Compare the two options and select the one
which cost less
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Solution
# of breakdown Frequency
0
12
3
4/20 = 0.2
8/20 = 0.46/20 = 0.3
2/20 = 0.1
Step 1
Expected # of breakdowns = (# of breakdown) x (frequency)
= (0)(0.2)+(1)(0.4)+(2)(0.3)+(3)(0.1)
= 1.3 breakdown per month
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Solution
Step 2
Expected breakdown cost= (expected # of breakdown) x
(cost per breakdown)= (1.3) x (300)
= RM390 per month
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Solution
Step 3 Calculate Preventive Maintenance Cost
= cost of expected breakdown + cost of service contract
= (1 breakdown per month x 300) + RM220 per month
= RM520 per month
Step 4 Compare
Less expensive to suffer breakdown without service contract.
Breakdown = RM390
Service contract = RM520
Therefore, continuepresent policy.
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