Chapter 1 Maintenance Organization

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M INTEN NCE

ORG NIZ TION

JJ616 MAINTENANCE MANAGEMENT

CHAPTER 1: MAINTENANCE ORGANIZATION

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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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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.html


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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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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.




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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.




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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.




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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



CHAPTER 1 : MAINTENANCE ORGANIZATION

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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)

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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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Chapter 1 Maintenance Organization

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