Unit 1 Introduction To Maintenance Management: Structure
Unit 1 Introduction To Maintenance Management: Structure
1.1 Introduction
Rising inflation and increased competition have brought with them the need
for greater productivity, and recent years have seen more emphasis being
placed on productivity improvement. Moreover, sophisticated equipment and
capital intensive units and plants are being increasingly used to achieve the
pre-set targets of higher production and productivity. Reliability and
maintainability features are now being incorporated in the equipment
designs. Although modern equipment has higher levels of reliability, it is not
possible to keep this equipment in an operating condition at all times
because failures do occur even in the most reliable equipment.1 It is also
true that such sophisticated equipment, and units or plants, tend to have
high probabilities of failure since in many cases they incorporate newer, and
therefore not adequately proven, technologies and designs.
They also consist of a large number of assemblies, sub-assemblies and
components. Failure and malfunctioning of these items of equipment result
in a loss of production. Loss of production is undesirable because it results
in corresponding loss in revenue. Whenever an item of equipment is down
and fails to perform its intended function, or performs in an undesirable
fashion, it must be restored to a state where it performs satisfactorily. At the
same time all necessary action must be taken to keep, or retain, such
equipment in an operating condition and also to prevent failures. Resources,
such as spare parts, manpower skills, tools, instruments and facilities, such
as hangars in the case of aircraft maintenance, are utilized for
accomplishment of the restoration processes and preventive actions. Thus
the requirement for productivity improvement has brought about the
pressing need for a significant improvement in the management of
maintenance of equipment, units and plants.
Objectives:
After studying this unit you shall be able
To Define Maintenance
To assess objective and functions of Maintenance
To describe Quality aspect of Maintenance
To assess key process of Maintenance Management
The period after World War II saw the introduction of the word
‘terotechnology’ which was initially defined by the committee on
terotechnology as ‘…a combination of management, financial, engineering
and other practices applied to physical assets in pursuit of economic life-
cycle costs’. Due to rising costs and inflation, focus was on reducing
downtime of equipment and hence preventive maintenance came into being
as an important activity. This period also saw a number of researchers
working on operations research models for preventive maintenance.
Importance of planning maintenance activities also grew during this period.
Overhauls of equipment were planned and scheduled. Systems for
managing maintenance were also introduced.
The period after 1980 has seen some of the worst accidents in industrial
history. Leakage of methyl isocyanite (MIC) from a battery/cell
manufacturing unit in Bhopal in India and the threat to the survival of
mankind caused by the nuclear accident at Chernobyl in the erstwhile Soviet
Union have only made the manufacturing industries and the like realize the
importance of maintenance. The attitude of ignorance towards maintenance
has increasingly been replaced by one which recognizes maintenance also
as a strategic issue in the organisation. Besides high cost, the other factors
which contributed to this change include: environmental concerns, safety
issues, and warranty and liability factors, regulatory matters, ageing plant
and equipment, drive for cost reduction and the like. To live up to the
new expectations demanded of maintenance activities, maintenance
activity can be initiated. The maintenance manager should ensure that the
equipment is restored to its normal working condition as quickly as possible.
This way not only is the downtime cost kept to the minimum but also the
resources are utilized effectively. The maintenance manager should track
the work to completion. In case the task does not get completed within the
estimated time then corrective action would need to be taken to ensure
further loss in revenue due to loss in production is minimized. Once the
activity is complete, a review by the manager or the maintenance supervisor
would be essential to ensure and authorize that the maintenance work has
been carried out properly. Other common tasks related to maintenance
management include generating reports related to equipment, work and
costs. It also includes activities related to collection and analysis of data
related to maintenance and reporting to top management.
1.3.1 Quality Aspects in Maintenance
Quality is not absolute but relative. A maintenance activity can be
considered to be of high quality if:
it restores an item of equipment to its normal working state, without
causing
any damage to the equipment or to any of its parts;
it is initiated on time and the equipment is returned to production at the
required time;
It incurs not more than the budgeted cost.
The above-mentioned conditions can be satisfied only when the
maintenance organisation has:
skilled and committed repair men available to carry out the required
maintenance activity at the required time;
the required spare parts in the required quantity;
the required tools, instruments and facilities for performing the activity;
an appropriate ‘on-the-job’ training programme for the repair men to
enhance their ability to work;
A repository of maintenance processes.
In general, the need is for a good maintenance organisation.
1.3.2 Maintenance Organisation
Maintenance organisation does not mean only the organisation of people in
the maintenance department or their reporting structure. It is more to do with
The only difference is that of the time interval. In the case of the ‘reactive’
perspective, the time interval between the recognition and performance is
very small as compared to the ‘proactive’ perspective. The following section
describes the preventive, corrective and other maintenance practices
followed in organizations.
1.5.2 Types of Maintenance
The return of investment on an item of equipment can be maximized by
maximizing its availability. Availability of an item of equipment can be
defined as the ratio of uptime to the sum of uptime and downtime. When an
item of equipment is down it results in loss of production which, in turn,
results in loss of revenue. The cost of unavailability, which is an indirect
cost, is proportional to the loss in revenue. Performing a maintenance
activity requires usage of resources such as manpower, materials and tools.
The cost of utilization of these resources is a direct maintenance cost. The
total maintenance cost is the sum of direct maintenance costs, consisting of
labour costs, material costs and direct overheads, and indirect maintenance
costs, which are primarily due to loss of production. As the level of
performing maintenance activity increases, the direct costs increase. Also
the indirect costs resulting due to failure decrease. Just as there is a trade-
off between inventory holding costs and the reordering costs, there is a
trade-off between the maintenance costs and their benefits. The level of
maintenance activity to be performed is obviously the one where the total
cost is minimal. There is rarely any organisation where only one type of
maintenance is used. Most situations warrant a considerable mixture of
maintenance types.
1.5.3 Preventive Maintenance
Preventive maintenance is a proactive activity. This is an approach
developed to reduce the likelihood of the failure of critical equipment to the
minimum possible. The intention is to detect potential failures early, make
changes and prevent failures. This approach to maintenance becomes
essential for any equipment where there are serious dangers to life should a
failure occur, for example, in the case of nuclear submarines. If personnel
who operate and maintain the nuclear power plant of the submarine make
serious mistakes, the ship and its entire crew are in mortal danger. The
preventive actions under such a situation would be to:
Train all the personnel in their own jobs;
Sikkim Manipal University Page No. 15
Maintenance Management Unit 1
1.6 Summary
Until recently, maintenance of plant and machinery was a thankless job and
the maintenance function was considered a necessary evil. From this state,
it has now come to be accepted as an important function – one of strategic
importance – particularly in the capital-intensive continuous-process
industries such as power plants, nuclear power generating stations,
chemical and fertilizer plants, and integrated iron and steel works. This
transformation has taken place in about 40 years and has brought about
automation and increasing sophistication of plant and equipment, and has
been hastened by the fact that the loss of one hour of production is much
more expensive today than it ever was before. Plant and equipment
availability is of paramount importance and effective management of the
maintenance function goes a long way in ensuring the attainment of the
objective of maximization of availability
1.8 Answers
Self Assessment Questions
1. Maintenance
2. Ignorance
3. Production
4. Resource Cost
5. Organisation-wide
6. False
7. True
8. True
9. False
10. True
11. Software organisation
12. Training programme
13. Maintenance Personnel
14. Subcontractor
15. Continuous Process
16. False
17. True
18. False
19. True
20. False
Terminal Questions
1. Page 2 – Part 1.1
2. Page 3 – Part 1.1.2
3. Page 6 – Part 1.2.2
4. Page 10 – Part 1.4
5. Page 11 – Part 1.4.3