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MAINTENANCE ORGANIZATION
Prepared by: LIANA FAIRUZ BINTI ZAKARIA
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DEFINITION
MAINTENANCE
Maintenance is a set of organized activities that are
carried out in order to keep an item in its best operational condition with minimum cost required.
Activities required or undertaken to conserve as nearly,
and as long, as possible the original condition of an asset or resource while compensating for normal wear and tear.
Actions necessary for retaining or restoring a piece of
equipment, machine, or system to the specified operable condition to achieve its maximum useful life. It includes corrective maintenance and preventive maintenance.
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DEFINITION
ORGANIZATION
A means for making people productive in working together and arranging resources (people, materials, technology, etc).
A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment.
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DEFINITION
MANAGEMENT
The organization and coordination of the activities in order to achieve defined objectives. Management is often included as a factor of production along with machines, materials, and money. Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and implementing an organization's resources in order to achieve the objectives of that policy.
Area of industry that requires of maintenance management : Industrial / Factory Transportation e.g. Automotive, Shipping, Aircraft Hotel and Resorts Plant Hospital Shopping Mall Restaurant
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.
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Perform all maintenance activities including preventive, predictive; corrective, overhauls, design modification and emergency 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.
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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.
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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 undesirable circumstances and situations.
Management defines tasks and allocates resources effectively, ensuring that all objectives are met in a timely and orderly fashion.
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The strengths of this structure are : it allows the organization to achieve adaptability and coordination in production units and efficiency in a centralized overhaul group facilitates effective coordination both within and between maintenance and other departments. Speedy decisions due to better line of communication under single control. Maintenance and production people understand each others problems better because of their common goals. Interchangeability of workforce, even at the managerial level, is also possible. Better training at the workers level can be arranged.
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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.
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TYPES OF ROLES/RESPONSIBILITIES
It is still possible to group activities and responsibilities into two general classifications: (1) primary functions that demand daily work by the maintenance function and (2) secondary ones assigned to the function for reasons of expediency, know-how, or precedent.
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TYPES OF ROLES/RESPONSIBILITIES
Primary Function Maintenance of Existing Plant Equipment Responsibility here is simply to make necessary repairs to production machinery quickly and economically and to anticipate these repairs and employ preventive maintenance where possible to prevent them. For this, a staff of skilled engineers, planners, and technicians who are capable of performing the work must be trained, motivated, and constantly retained to assure that adequate skills are available to perform effective maintenance.
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TYPES OF ROLES/RESPONSIBILITIES
Primary Function Maintenance of Existing Plant Buildings and Grounds The repairs to buildings and to the external property of any plantroads, railroad tracks, in-plant sewer systems, and water supply facilitiesare among the duties generally assigned to the maintenance engineering group. Additional aspects of buildings and grounds maintenance may be included in this area of responsibility.
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TYPES OF ROLES/RESPONSIBILITIES
Primary Function Equipment Inspection and Lubrication Traditionally, all equipment inspections and lubrication has been assigned to the maintenance organization or function. While inspections that require special tools or partial disassembly of equipment must be retained within the maintenance function, the use of trained operators or production personnel in this critical task will provide more effective use of plant personnel. The same is true of lubrication. Because of their proximity to the production systems, operators are ideally suited for routine lubrication tasks.
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TYPES OF ROLES/RESPONSIBILITIES
Primary Function Utilities Generation and Distribution In any plant generating its own electricity and providing its own process steam, the powerhouse assumes the functions of a small public utilities company and may justify an operating department of its own.
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TYPES OF ROLES/RESPONSIBILITIES
Primary Function Alterations and New Installations
Three factors generally determine to what extent this area involves the maintenance department: plant size, multi plant company size, company policy. In a small plant of a one-plant company, this type of work may be handled by outside contractors. But its administration and that of the maintenance force should be under the same management. In a small plant within a multi plant company, the majority of new installations and major alterations may be performed by a company-wide central engineering department. In a large plant a separate organization should handle the major portion of this work.
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TYPES OF ROLES/RESPONSIBILITIES
Secondary Function Storekeeping In most plants it is essential to differentiate between mechanical stores and general stores. The administration of mechanical stores normally falls within the maintenance engineering group`s area because of the close relationship of this activity with other maintenance operations.
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TYPES OF ROLES/RESPONSIBILITIES
Secondary Function Plant Protection This category usually includes two distinct subgroups: guards or watchmen; fire control squads. Incorporation of these functions with maintenance engineering is generally common practice. The inclusion of the fire-control group is important since its members are almost always drawn from the craft elements.
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TYPES OF ROLES/RESPONSIBILITIES
Secondary Function Waste Disposal This function and that of yard maintenance are usually combined as specific assignments of the maintenance department. Salvage If a large part of plant activity concerns off grade products, a special salvage unit should be set up. But if salvage involves mechanical equipment, such as scrap lumber, paper, containers, and so on, it should be assigned to maintenance.
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TYPES OF ROLES/RESPONSIBILITIES
Secondary Function Insurance Administration This category includes claims, process equipment and pressure-vessel inspection, liaison with underwriters representatives, and the handling of insurance recommendations. These functions are normally included with maintenance since it is here that most of the information will originate.
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COST OF MAINTENANCE
Maintenance cost can be a significant factor in an organizations profitability. Hence, maintenance department should treat the matters that make a profit on the industry by take into account the cost of maintenance. It is important to reduce the maintenance expenses to increase a profit by avoiding unnecessary expenditure. Among the factors associated with the maintenance expenditure are:Spare parts Maintenance labor (i.e., operator expertise and experience) Down time (production loss)
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COST OF MAINTENANCE
Overhead Consumables Hand tools, power tools and equipment Idle equipment or personnel due to equipment breakdown Missed delivery dates of equipment (including out of stock) Transportation due to remoteness of some of the maintenance work Asset condition (i.e., age, type, and condition) Losses due to inefficient operations of machines Capital requirement for replacement of machines
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In-house Out-source
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DECISION TO OUT-SOURCE
Lack of expertise Too hazardous No experience Bound by contract Top management policy When it is cheaper than recruiting your own staff and
accessible at a short notice of time
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NEED TO CONSIDER
Customer service Loss of production Loss of customer goodwill, reputation Machine life Availability of spare parts and expertise Safety to the user / customer Environmental problem (pollutant discharge etc.)
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Life cycle cost is the sum of all costs incurred during the
life time of an item, that is, the total of procurement and ownership costs. Due to reasons including market pressure, life cycle costing is now often used in the procurement of expensive systems or equipment. Life cycle cost analyses involve evaluating the total cost of a product or system over its entire life span. Life cycle cost will consider the cost of developing or acquiring the asset, the cost of running, operating and maintaining, and the cost of disposal.
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COST ANALYSIS METHOD Disadvantages of cost analysis method : i) It is time consuming and expensive ii) Collecting the data needed for analysis can be a trying task iii) The data available is sometimes of doubtful accuracy
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Cost
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Cost
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Cost
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Cost
Optimal
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EXAMPLE
The record of computer breakdown for Company PCK for the past 20 months is shown below.
# of breakdown 0 1 2 3
Total
loss is RM300 Contract preventive maintenance by company DK RM200 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 company continue without service contract. Step 2 Compute expected breakdown cost per month with no preventive maintenance contract Step 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 1 2 3 4/20 = 0.2 8/20 = 0.4 6/20 = 0.3 2/20 = 0.1
Step 1
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
Therefore, continue present policy which is the breakdown maintenance because its less expensive.
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