Henry Awuku-Asante

Purchasing & GS Manager

Barry Callebaut Ghana Ltd,Tema
M.Gh.I.E.
B.Sc.(Hons) Mechanical Engineering

2006 Prentice Hall, Inc.

17 1

Operations
Management
Chapter 17
Maintenance and Reliability
PowerPoint presentation to accompany
Heizer/Render
Principles of Operations Management, 6e
Operations Management, 8e
2006
Prentice
Hall, Inc. Hall, Inc.

2006
Prentice

17 2

Outline
Impact of Maintenance
The Strategic Importance Of
Maintenance And Reliability
Reliability
Improving Individual Components
Providing Redundancy

2006 Prentice Hall, Inc.

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Outline Continued
Maintenance
Implementing Preventive Maintenance
Evaluation of Maintenance Effectiveness
Increasing Repair Capability

Total Productive Maintenance

Techniques For Establishing
Maintenance Policies
2006 Prentice Hall, Inc.

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Learning Objectives
When you complete this chapter, you
should be able to:
Identify or Define:
Maintenance
Mean time between failures
Redundancy
Preventive maintenance
Breakdown maintenance
Infant mortality
2006 Prentice Hall, Inc.

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Learning Objectives
When you complete this chapter, you
should be able to:
Describe or Explain:
How to measure system reliability
How to improve maintenance
How to evaluate maintenance
performance

2006 Prentice Hall, Inc.

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Impact of Maintenance
Maintenance costs constitute a major part of the
total operating costs of all manufacturing plants.
Depending on the specific industry, maintenance
cost can represent between 15% and 60% of the cost
of production.
For example, in the food related industries, average
maintenance cost represent about 15% whereas in
the heavy industries such as mining, iron and steel,
it represents up to 60% of the total production cost
Recent surveys of maintenance management
effectiveness indicate that one- third(33%) out of
every dollar (of all maintenance cost) is wasted as a
result of unnecessary or improperly carried out
maintenance.
2006 Prentice Hall, Inc.

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Impact of Maintenance
The losses of production time and product quality
due to ineffective maintenance management by
industries have a significant impact on their
competitiveness on the world market
Courtesy: An Introduction to Predictive Maintenance
By: R. Keith Mobley

2006 Prentice Hall, Inc.

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Strategic Importance of
Maintenance and Reliability
Failure has far reaching effects on a
firms

2006 Prentice Hall, Inc.

Operation
Reputation
Profitability
Dissatisfied customers
Idle employees
Profits becoming losses
Reduced value of investment in plant and
equipment
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Maintenance and Reliability

The objective of maintenance and
reliability is to maintain the
capability of the system while
controlling costs
Maintenance is all activities involved
in keeping a systems equipment in
working order
Reliability is the probability that a
machine will function properly for a
specified time
2006 Prentice Hall, Inc.

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Important Tactics
Reliability
1. Improving individual components
2. Providing redundancy

Maintenance
1. Implementing or improving
preventive maintenance
2. Increasing repair capability or speed
2006 Prentice Hall, Inc.

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Strategy and Results

Employee Involvement
Information sharing
Skill training
Reward system
Power sharing

Maintenance and Reliability

Procedures
Clean and lubricate
Monitor and adjust
Minor repair
Computerize records

2006 Prentice Hall, Inc.

Results
Reduced inventory
Improved quality
Improved capacity
Reputation for quality
Continuous improvement
Reduced variability

Figure 17.1
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Reliability
Improving individual components
R s = R1 x R 2 x R 3 x x R n
where

2006 Prentice Hall, Inc.

R1 = reliability of component 1
R2 = reliability of component 2
and so on

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Overall System Reliability

100
80
n=

60

n=

n=

200

20

10

00
n=1

40
n = 40
0

50

n=
0
30

Reliability of the system (percent)

n=1

100

99

98

97

96

Average reliability of all components (percent)

2006 Prentice Hall, Inc.

Figure 17.2
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Reliability Example
R1

R2

R3

.90

.80

.99

Rs

Reliability of the process is

Rs = R1 x R2 x R3 = .90 x .80 x .99 = .713 or 71.3%

2006 Prentice Hall, Inc.

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Product Failure Rate (FR)

Basic unit of measure for reliability
Number of failures
FR(%) =
x 100%
Number of units tested
Number of failures
FR(N) =
Number of unit-hours of operating time
Mean time between failures
1
MTBF =
FR(N)
2006 Prentice Hall, Inc.

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Failure Rate Example

20 air conditioning units designed for use in
NASA space shuttles operated for 1,000 hours
One failed after 200 hours and one after 600 hours

2
FR(%) =
(100%) = 10%
20

2
FR(N) =
= .000106 failure/unit hr
20,000 - 1,200
1
MTBF =
= 9,434 hrs
.000106
2006 Prentice Hall, Inc.

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Failure Rate Example

20 air conditioning units designed for use in
NASA space shuttles operated for 1,000 hours
One failed after 200 hours and one after 600 hours

2
Failure
per trip= 10%
FR
(%) = rate (100%)
20
FR2= FR(N)(24 hrs)(60 days/trip)
FR(N) =
= .000106 failure/unit hr
FR
=
(.000106)(24)(60)
20,000 - 1,200
FR = .152 failures per trip
1
MTBF =
= 9,434 hr
.000106
2006 Prentice Hall, Inc.

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Providing Redundancy
Redundancy for a system may be provided in one of
the following ways
One for One Redundancy
N + X Redundancy
Load Sharing

2006 Prentice Hall, Inc.

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Providing Redundancy
Provide backup components to
increase reliability
Probability
of first
+
component
working

=
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Probability
Probability
of second x of needing
component
second
working
component

(.8)

(.8)

(1 - .8)

.8

.16

= .96
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Redundancy Example
R3

0.99

A redundant process is installed to support

the earlier example where Rs = .713
R2

0.80

0.80

R1

0.90

0.90

2006 Prentice Hall, Inc.

Reliability has
increased
from .713 to .94

= [.9 + .9(1 - .9)] x [.8 + .8(1 - .8)] x .99

= [.9 + (.9)(.1)] x [.8 + (.8)(.2)] x .99
= .99 x .96 x .99 = .94
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Maintenance
Two types of maintenance
Planned or Preventive maintenance routine
inspection or monitoring and servicing to keep
facilities in good repair
Systematic or Fixed Time Maintenance
Maintenance carried out based on a fixed
time schedule (ie Hours, days or Months)
Predictive or Condition-Based Maintenance
Maintenance carried out based on predetermined key performance indicators of
the system (ie vibration, temperature,
Pressure, Current, noise level, thickness)
Unplanned or Breakdown maintenance
emergency or priority repairs on failed
equipment. Also known as Run to Failure
2006 Prentice Hall, Inc.

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Why Machines fail

Machine failure may be caused by defects in any of
the following stages of the machine life cycle
Design stage
Manufacturing stage
Transportation Stage
Installation sage
Type of maintenance practices and operating
conditions
Thus, the ultimate life span of a machine will be
determined by the precision with which the above
factors are carried out.

2006 Prentice Hall, Inc.

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Implementing Preventive Maintenance

Need to know WHAT to maintain :Thus identify and
compile a facility register (list of all equipment to be
maintained with given IDs)
Need to know WHO to maintain: Thus which
equipment has to be serviced in-house or outsourced and by which discipline( ie Mechanical,
electrical, instrumentation or civil) This decision will
be based on level of skills and capacity of in-house
staff
Need to know HOW to maintain:
Decide on type of PM to apply for each facility

2006 Prentice Hall, Inc.

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Implementing Preventive Maintenance

Prepare a maintenance checklist for each facility
with the help of equipment manual and
experience.
A maintenance checklist is a comprehensive list
of all maintenance activities to be performed at
various periods (eg running hours, months or a
set measurement limit) in the life of an equipment
as recommended by the manufacturer
Need to know WHEN a system requires service or is
likely to fail: Thus provide an annual maintenance
programme or service forecast indicating all
equipment and when they are due for servicing
2006 Prentice Hall, Inc.

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Implementing Preventive Maintenance

Good reporting and record keeping can aid the
decision on when preventive maintenance should be
performed

2006 Prentice Hall, Inc.

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Implementing Preventive Maintenance

High initial failure rates are known as infant mortality.
Occurs during the early stages of a machine life and
may be due to :
Design or manufacturing defects
Installation defects
Operational adjustments or fine tuning
The useful life generally constitutes the longest
phase of the machine life cycle. Here the failure rate
is lowest and constant with time. The length of this
cycle vary from machine to machine even with
similar ones and depends on the effectiveness of the
maintenance policy practiced
2006 Prentice Hall, Inc.

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Implementing Preventive Maintenance

The end of life or the wear-out life is the last phase of
a machine life cycle. It is at the end of its useful life
and that is when a decision to replace must be taken.
During this stage strength and reliability is greatly
reduced by wear/corrosion, material properties
change for the worse.
High maintenance cost due to frequent failures

2006 Prentice Hall, Inc.

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Evaluation of Maintenance Effectiveness

Availability =

Total Machine Hrs Wkd x 100%

Total Hrs Considered

Total Machine Hrs =Total Hrs Engineering Downtime

Utilization of Available Machine Hrs = Production Hrs x 100%
Machine Hrs
MTBF = Total Machine Hrs
No. of Failures
MTTR

MTBF: Mean Time Between Failures

= Total Machine Hrs

No. of Failures

Availability =

MTTF: Mean Time To Repair/ Failure

MTBF x 100%
MTBF + MTTR

Maintenance Index MI
Manpower Utilization

FR = No. of Failures
Total Machine Hrs
FR : Failure Rate

Production Hrs
Production Hrs + Machine Hrs
=

Machine Hrs
Total Man Hrs Available

2006 Prentice Hall, Inc.

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Computerized Maintenance
Management System
This is the use of Information Technology to manage
Maintenance operations in the areas of :
Work order Management
Equipment Planning and Scheduling
Asset Management
Inventory Management
Purchasing
Reports and Analyses

2006 Prentice Hall, Inc.

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Computerized Maintenance
Management System
Some of the known software for maintenance
systems are:
Maximo
Main Tracker
The Need for CMMS
Enables large volumes of data to be stored and
processed in an accurate and timely manner
Enhance management decision making

2006 Prentice Hall, Inc.

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Computerized Maintenance
Management System
Data Files

Output Reports

Equipment file
with parts list

Inventory and
purchasing reports

Equipment
parts list

Maintenance
and work order
schedule

Equipment
history reports

Repair
history file

Inventory of
spare parts

Personnel data
with skills,
wages, etc.
2006 Prentice Hall, Inc.

Data entry
Work requests
Purchase
requests
Time reporting
Contract work

Cost analysis
(Actual vs. standard)

Work orders
Preventive
maintenance
Scheduled
downtime
Emergency
maintenance

Figure 17.3
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Maintenance Costs
The three main elements maintenance
costs are:
Direct cost
Indirect cost

Capital cost
Direct cost
Costs which are primarily due to
maintenance activities and comprises of:
Labour cost
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Maintenance Costs
Spare parts cost
Equipment cost
Training cost
Service contracts
Maintenance Administration
Indirect cost
These are costs incurred when a plant
/equipment unavailable for production due to a
breakdown. They include:
Production losses

2006 Prentice Hall, Inc.

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Maintenance Costs
Delivery Delays-payment of penalties
Work accidents-higher insurance premiums
Poor quality products/service
Personnel de-motivation
Company Image
Environmental disasters
Capital costs
The depreciation cost of facilities associated
with maintenance eg:
Standby equipment

2006 Prentice Hall, Inc.

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Maintenance Costs

2006 Prentice Hall, Inc.

Standby equipment
Workshop/Utility equipment
Stock of spare parts
Material handling equipment

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Maintenance Costs
The traditional view attempted to
balance preventive and breakdown
maintenance costs
Typically this approach failed to
consider the true total cost of
breakdowns

2006 Prentice Hall, Inc.

Inventory
Employee morale
Schedule unreliability
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Maintenance Costs
Total
costs

Costs

Preventive
maintenance
costs
Breakdown
maintenance
costs

Optimal point (lowest

cost maintenance policy)

Maintenance commitment

Traditional View
2006 Prentice Hall, Inc.

Figure 17.4 (a)

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Maintenance Costs
Total
costs

Costs

Full cost of
breakdowns

Preventive
maintenance
costs
Maintenance commitment
Optimal point (lowest
cost maintenance policy)
Full Cost View
2006 Prentice Hall, Inc.

Figure 17.4 (b)

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Maintenance Cost Example

Should the firm contract for maintenance
on their printers?
Number of
Breakdowns

Number of Months That

Breakdowns Occurred

4
Total: 20

Average cost of breakdown = $300

2006 Prentice Hall, Inc.

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Maintenance Cost Example

1. Compute the expected number of
breakdowns
Number of
Breakdowns

Frequency

Number of
Breakdowns

Frequency

2/20 = .1

6/20 = .3

8/20 = .4

4/20 = .2

Expected number
of breakdowns

Number of
breakdowns

Corresponding
frequency

= (0)(.1) + (1)(.4) + (2)(.3) + (3)(.2)

= 1.6 breakdowns per month
2006 Prentice Hall, Inc.

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Maintenance Cost Example

1. Compute the expected breakdown cost per
month with no preventive maintenance
Expected
breakdown cost

Expected number
of breakdowns

x Cost per
breakdown

= (1.6)($300)
= $480 per month

2006 Prentice Hall, Inc.

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Maintenance Cost Example

1. Compute the cost of preventive
maintenance
=

Preventive
maintenance cost

Cost of expected
Cost of
breakdowns if service + service contract
contract signed

= (1 breakdown/month)($300) + $150/month
= $450 per month

Hire the service firm; it is less expensive

2006 Prentice Hall, Inc.

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Increasing Repair
Capabilities
1. Well-trained personnel
2. Adequate resources
3. Ability to establish repair plan and
priorities
4. Ability and authority to do material
planning
5. Ability to identify the cause of
breakdowns
6. Ability to design ways to extend MTBF
2006 Prentice Hall, Inc.

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How Maintenance is
Performed
Should maintenance be in-house or out-sourced?
Operator

Maintenance
department

Manufacturers
field service

Depot service
(return equipment)

Competence is higher as we
move to the right
Preventive
maintenance costs less and
is faster the more we move to the left

Figure 17.5
2006 Prentice Hall, Inc.

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Total Productive
Maintenance (TPM)
Designing machines that are reliable, easy to
operate, and easy to maintain
Emphasizing total cost of ownership when
purchasing machines so that service and
maintenance are included in the cost
Developing preventive maintenance plans that
utilize the best practices of operators,
maintenance departments, and depot service
Training workers to operate and maintain their
own machines
2006 Prentice Hall, Inc.

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Establishing Maintenance
Policies
Simulation
Computer analysis of complex
situations
Model maintenance programs before
they are implemented

Expert systems
Computers help users identify
problems and select course of action
2006 Prentice Hall, Inc.

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