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    14s-1 Maintenance

    William J. Stevenson

    Operations Management

    8th edition

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    14s-2 Maintenance

    CHAPTER

    14s

    Maintenance

    McGraw-Hill/Irwin

    Operations Management, Eighth Edition, by William J. StevensonCopyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

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    14s-3 Maintenance

    Introduction

    Maintenance All activities that maintain facilities and equipment in

    good working order so that a system can perform as

    intended

    Breakdown maintenance

    Reactive approach; dealing with breakdowns or

    problems when they occur

    Preventive maintenance Proactive approach; reducing breakdowns through a

    program of lubrication, adjustment, cleaning,

    inspection, and replacement of worn parts

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    14s-4 Maintenance

    Reasons for keeping equipment running Avoid production disruptions

    Not add to production costs

    Maintain high quality Avoid missed delivery dates

    Maintenance Reasons

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    14s-5 Maintenance

    Production capacity is reduced Orders are delayed

    No production

    Overhead continues

    Cost per unit increases

    Quality issues

    Product may be damaged

    Safety issues

    Injury to employees

    Injury to customers

    Breakdown Consequences

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    14s-6 Maintenance

    Total Maintenance Cost

    Breakdown and

    repair cost

    Optimum Amount of

    preventive maintenance

    Cost

    Total Cost

    Preventive

    maintenance cost

    Table 14S.1

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    14s-7 Maintenance

    Preventive maintenance: goal is to reducethe incidence of breakdowns or failures in

    the plant or equipment to avoid the

    associated costs Preventive maintenance is periodic

    Result of planned inspections

    According to calendar

    After predetermined number of hours

    Preventive Maintenance

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    14s-8 Maintenance

    Frequency of breakdown

    If the average cost of a breakdown is $1,000,

    and the cost of preventative maintenance is

    $1,250 per month, should we use preventive

    maintenance?

    Example S-1

    Number of breakdowns 0 1 2 3

    Frequency of occurrence .20 .30 .40 .10

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    14s-9 Maintenance

    Number ofBreakdowns Frequency ofOccurrence Expected number ofBreakdowns

    0

    1

    2

    3

    .20

    .30

    .40

    .10

    1.00

    0

    .30

    .80

    .30

    1.40

    Expected cost to repair = 1.4 breakdowns per month X $1000 = $1400Preventive maintenance = $1250PM results in savings of $150 per month

    Example S-1 Solution

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    14s-10 Maintenance

    Predictive Maintenance Predictive maintenance

    An attempt to determine when best to perform

    preventive maintenance activities

    Total productive maintenance

    JIT approach where workers perform

    preventive maintenance on the machines they

    operate

    1 11

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    14s-11 Maintenance

    Breakdown Programs Standby or backup equipment that can be

    quickly pressed into service

    Inventories of spare parts that can be installed

    as needed Operators who are able to perform minor

    repairs

    Repair people who are well trained andreadily available to diagnose and correct

    problems with equipment

    14 12 M i

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    14s-12 Maintenance

    Replacement

    Trade-off decisions Cost of replacement vs cost of continued

    maintenance

    New equipment with new features vs

    maintenance

    Installation of new equipment may causedisruptions

    Training costs of employees on new equipment Forecasts for demand on equipment may require

    new equipment capacity

    When is it time for replacement?