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Maintenance

Management

CHAPTER 1

INTRODUCTION

Introduction
Industry today is in a fight to
survive.

Competition is on international
levels.
All forms of production analysis,
product reviews, and material
reviews are made and
periodically checked.

Introduction
Statistical process control is
only one of the new methods
used to reduce operational
costs.

However, one area many


industries are now turning their
attention toward is the
maintenance function.

Introduction
Return On Asset = Revenue / Asset Value
Revenue = Price x Volume
Volume = Maximum Capacity x Overall Equipment Effectiveness

Effective Maintenance works on both sides of the Return on


Asset equation:
-Improved maintenance increase revenues by increasing
equipment performance.
-It also improve ROA by reducing the need for expensive
capital upgrades to increase output.
-It directly and indirectly releases scarce capital funds to fund
growth.

Introduction
What is Maintenance?

What are its functions?


What are its objectives?

What is Maintenance?
Maintenance - any activity carried out on an
asset in order to ensure that the asset continues
to perform its intended functions, or to repair the
equipment.
Note that modifications are not maintenance, even

though they may be carried out by maintenance


personnel.

What is Maintenance?
Maintenance is war.
Your enemies are breakdown,
deterioration, and all types of
unplanned events.
Your soldiers are the maintenance
department and as many civilians as
you can recruit.
The civilians you protect are
production workers, office workers,
drivers, and all the other users of
your organizations assets.

Joel Levitt
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What is Maintenance?
Keeping equipment's
available, reliable and
cost optimized

Maintenance Function ?
1.
2.
3.
4.
5.

Maintenance of existing equipment.


Equipment inspection and services.
Equipment installation.
Maintenance storekeeping.
Craft administration.

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Maintenance Objectives
1. To keep the maintenance cost per production
item produced as low as possible.
2. To keep the quality of the product very high.
3. To keep the downtime for critical equipment as
low as possible.
4. To keep maintenance cost as low as possible
for non-critical equipment.
5. To provide and maintain adequate facilities.
6. To provide effective and trained supervision.
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Maintenance Structure

Asset ?
Asset - unlike in the
accounting definition,
in maintenance this is
commonly taken to be
any item of physical
plant or equipment
It is the basic unit of
maintenance.

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Asset Management ?
Asset Management - the systematic planning
and control of a physical resource throughout its
life.
This may include the specification, design, and
construction of the asset, its operation,
maintenance and modification while in use, and
its disposal when no longer required.

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Maintenance Management
Maintenance Management is defined as the
organization of maintenance within an agreed
policy.
Maintenance Policy is a statement of principle
used to achieve maintenance objectives and
guide Maintenance Management decision
making.

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Maintenance Policies
In general the following items represent the main aspects of
maintenance philosophy or policy:

Maintenance organization i.e., centralized


versus decentralized maintenance.
In-house versus outside contracting
maintenance.
Preventive versus predictive maintenance.
Repair versus replacement.
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Hierarchic Systems Model

Open system: The system is open in the sense it can react not only to the
direct inputs and outputs but also changes in the environment surrounding it.

Hierarchic Systems Model


Food Processing Plant: Management Control

Hierarchic Systems Model


Model of the Maintenance Subsystem

Hierarchy of Management
Systems

Maintenance Management
System
Budgetary
Control
Maintenance
Performance
Measurement and
Control

Maintenance
Documentation

Equipment Spares
Management

Plant Reliability
Control

Long-Term Maintenance
Planning and Control
(Turnaround Management)

Maintenance
Organizational
Efficiency Control

Short-Term
Maintenance Planning
and Work Control

Evolution in Maintenance
Management

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Evolution in Maintenance
Management

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Evolution in Maintenance
Management

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Evolution in Maintenance
Management

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Evolution in Maintenance
Management

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