MAINTENANCE PERFORMANCE EVALUATION

Maintenance performance evaluation is an essential step to effect improvement in the

maintenance planning, organizing and control.
The evaluation can be made on the following factors: -
1. Plant Availability
2. Cost of Maintenance
3. Effectiveness of Maintenance Planning
4. Frequency of break downs/MTTF
5. MTTR/Mean Time to Repair
6. MWT/Mean Waiting Time
ANALYSIS OF PLANT AVAILABILITY:
This is essentiality to know the overall effectiveness of the maintenance. In most of capital-
intensive industries, the plant availability is the most important factor as low availability
means heavy downtime losses. Hence the achievement of maintenance objectives is to be
reflected by the plant availability achieved.
Plant Availability can be plant-wise or major equipment wise to draw the attention of higher
levels of management for maintenance decision making.
Total Available Hours−Total Down−time
Plant Availability =
Total Available Hours
Where
Total Available Hours = Working days × Hours per day ×No. of machines.

ANALYSIS OF COST OF MAINTENANCE:

This analysis is helpful to assess the cost effectiveness of the maintenance system. This also
helps in maintenance budgeting and cost control. Cost of maintenance as a ratio of the value
of plant and equipment measured year to basis will bring out the facts whether cost control
measures are required to be undertaken immediately or not. Such an analysis equipment wise
will indicate whether the equipment can be replaced by a new/another equipment.
ANALYSIS OF EFFECTIVENESS OF PLANNING:
The effectiveness of planning is assessed by the following relations:
Labour Hours on Scheduled Maintenance
Total Labour Hours on Maintenance

or
 Total Down Time due ¿ scheduled Maintenance ¿ Maintenance¿
Total Down Time due ¿
Higher the above ratio more effective is maintenance planning. But at the same time plant
availability also should have been improved.
FREQUENCY OF BREAK-DOWNS/MTTF:
Frequency of breakdowns of mean time of failure reflects on the plant condition. Increase in
the frequency of break will help the management identify the causes of the failures and take
remedial measures to reduce the frequency of such failure. This is termed as design-out
maintenance. This analysis, year to year basis, will indicate the effectiveness of design out
maintenance action.
ANALYSIS OF MEAN TIME TO REPAIR (MTTR):
Mean Time To Repair or MTTR reflects on the improvements in design & modification of
plant by which the time required an equipment is reduced. This also will indicate efficiency
or the skill of the people who carry out the repair jobs.
MTTR is computed as follows:
Total Repair Time∈ Hours
No . of breakdowns
ANALYSIS OF MEAN WAITING TIME (MWT):
Mean Waiting Time is part of the down time indicating the mean down-time lost in waiting
for materials or labour for attending to a break down. Mean waiting Time is the ratio of Total
Machine Hours lost due to waiting for materials or labour to the total number of breakdowns.
Increased MWT will help the management in identifying the areas for improvement such as
organizing of trade force or improving the stores systems & procedures or improving the
spare part control systems.
PRIEL'S INDICES OF MAINTENANCE EFFECTIVENESS:
Maintenance Effectiveness suggested by Priel (for reference only):
MAINTENANCE EFFECTS (INPUTS)
MAINTENANCE EFFECTS (OUTPUTS)
Replacement Policies of machines

 In Industries, all equipments are put to continuous use which reduces the
efficiency of the equipment. The study of replacement is concerned with
situations that arise when some items such as machines, electric-light
bulbs, etc., need replacement due to their deteriorating efficiency, failure
or breakdown.

 The deteriorating efficiency or complete breakdown may be either

gradual or all of a sudden. In all such situations, there is a need to
formulate a most economic replacement policy for replacing faulty units
or to take some remedial special action to restore the efficiency of
deteriorating units.

 A replacement is also needed for the equipment if the cost incurred in

operating and maintaining the equipment exceeds the benefit derived out
of it.

 The objective of the Replacement problem is therefore to determine the

optimal time at which the equipment is to be replaced with new one.

Types of Replacement Problem

Replacement problems, in general, are of three types.

1. Replacement of items that deteriorate with time.

2. Replacement of items that break down completely, and
3. Replacement of items that becomes out of date due to new developments.

REPLACEMENT OF ITEMS THAT DETERIORATE WITH TIME

Generally, the maintenance cost of certain items, e.g., machine, always increases
gradually with time and a stage comes when the maintenance cost becomes so
large that it is better and economical to replace the item with a new one. There
may be a number of alternative choices and in each choice, we make a
comparison between various alternatives by considering and safety risks, etc.

REPLACEMENT OF ITEMS THAT FAIL COMPLETELY

We always come across practical situations in real life where the failure of
certain item occurs all of a sudden, instead of gradual deterioration (e.g., the
failure of an electric light-bulb). The failure of the item may result in complete
breakdown of the system.

If the time of failure can be predicted, preventive replacement will often be the
appropriate course of action. However, in many cases it may not be possible to
predict failure time accurately. In such cases we shall assume that the probability
distribution of failure time may be obtained, based on the past experience. Here it
is assumed that the failure occurs only at the end of a certain period, say till time
(t). The problem is to determine an optimal value of ‘t’ so as to minimize the
total cost involved in the system.

We shall consider the following two types of replacement policies:

1. Individual replacement policy: Under this policy, an item is replaced

immediately after its failure.

2. Group replacement policy: Under this policy, we take decision as to when

all the items must be replaced, irrespective of the fact that items have
failed or have not failed, with a provision that if any item fails before the
optimal time, it may be individually replaced.

Numerical based upon Replacement Problem of items that deteriorates with

time (For reference only)

Case – 1 : Replacement Policy when Value of Money does not change with time

The objective here is to determine the optimum replacement age of an

equipment/ item whose running/maintenance cost increases with time and the
value of money remains static during that period.
Solution: An optimum replacement policy suggest that replace the equipment at
the end of n years, if the average total cost in the (n+1)th year is more than the
average total cost in the nth year and the nth year’s maintenance cost is less
than the previous year’s average total cost.

Let C = Capital Cost of Equipment, S= scrap value of

equipment n = number of years that equipment would be in use
f (t) =maintenance cost function and, A(n) = Average total annual cost.

Question 1: A firm is considering replacement of a machine, whose cost price is

Rs. 12,200 and the scrap value is Rs. 200. The running (maintenance and
operating) cost are found from experience are as follows:

Year 1 2 3 4 5 6 7 8
Running 200 500 800 1200 1800 2500 3200 4000
Cost

When should the machine be replaced?

Solution:

In the problem given above we are provided with running cost f(t), Scrap Value
S=200 and the cost of the machine C = Rs. 12,200.

In order to find out the optimal time n when the machine would be replaced, we
will calculate the average total cost per year during the life of the machine as
shown in the table below:

Years Running Cumulative Depreciation Total Cost Average Total Cost

Cost f(n) running cost ∑ Cost = C-S TC = (3) + A(n)= (5)/(1)
(1) (2) f(n) (4) (4) (6)
(3) (5)
1 200 200 12000 12,200 12,200
2 500 700 12000 12,700 6,350
3 800 1500 12000 13,500 4,500
4 1200 2700 12000 14,700 3,675
5 1800 4500 12000 16,500 3,300
6 2500 7000 12000 19,000 3,167
7 3200 10200 12000 22,200 3,171
8 4000 14200 12000 26,200 3,275
From the above table we can see that the average total cost A(n) is minimum at
the end of 6th year and then from 7th year onwards it starts increasing, hence we
would take a decision to replace the machine at the end of the 6 th year where the
value of A(n) is minimum.
Question 2: The data collected in running a machine, the cost of which is Rs.
60,000 are given below

Year 1 2 3 4 5
Resale Value 42000 30000 20400 14400 9650
Cost of Spares 4000 4270 4880 5700 6800
Cost of Labour 14000 16000 18000 21000 25000

Determine the optimum period for the replacement of the machine.

Solution: To determine the running cost we add the cost of spares and cost of labour.

Years Running Cumulative Resale Depreciation Total Cost Average Total

Cost f(n) running cost ∑ Value Cost = C-S TC = (5) + Cost A(n)=
(1) (2) f(n) (4) (5) (3) (6)/(1)
(3) (6) (7)
1 18000 18000 42000 18,000 36,000 36,000
2 20270 38270 30000 30,000 68,270 34,135
3 22880 61150 20400 39,600 1,00,750 33,583
4 26700 87850 14400 45,600 1,33,450 33,362
5 31800 1,19,650 9650 50,350 1,70,000 34,000

From the above table we can see that the average total cost A(n) is minimum at
the end of 4th year and then from 5th year onwards it starts increasing, hence we
would take a decision to replace the machine at the end of the 4th year where the
value of A(n) is minimum i.e Rs. 33,362/-
.
Numerical based upon Replacement Problem of items that fails suddenly.

It is usually very difficult to predict the time when particular equipment will fail
suddenly. This problem can be overcome by determining the probability distribution
of failures. Also, it is presumed that the failure occurs only at the end of the period
say t.

Thus the objective is to find the value of t which minimizes the total cost involved
for the replacement.

In such situation, there are two types of replacement policies are being followed:

(a) Individual Replacement Policy: Under this policy, an item is replaced

immediately upon its failure.

(b) Group Replacement Policy: Under this policy, it is decided to replace all the
items after a certain time period irrespective of the facts that items have failed or
have not failed with an option that if any item before the optimal time, it may be
individually replaced.

Question 3: The following failures have been observed for a certain type of
transistors in a digital computer:

End 1 2 3 4 5 6 7 8
of
Week
Probabilit .05 .13 .25 .43 .68 .88 .96 1.00
y of
failure to
date

Total number of transistors at the beginning of assembly is 1000 units. The cost of
replacing the individual failed transistors is Rs. 1.25/-. The decision is made to
replace all these transistors simultaneously at fixed intervals and to replace the
individual transistors as they fails in service. If the cost of group replacement is 30
paisa per transistors, what is the best interval between group replacement?
Solution:

Let Pi be the probability that a transistors which was new when placed in position
for use, fails during the ith week of its life. Thus we have,
P1 = 0.05 P2 = 0.13 – 0.05 = 0.08
P3 = 0.25 – 0.13 = 0.12 P4 = 0.43 – 0.25 = 0.18
P5 = 0.68 – 0.43 = 0.25 P6 = 0.88 – 0.68 = 0.20
P7 = 0.96 – 0.88 = 0.08 P8 = 1.00 – 0.96 = 0.04

Let Ni denotes the number of replacement made at the end of ith week. Then we have,

N0 = Number of transistors at the beginning = 1000

N1 = N0P1 = 1000 * 0.05 = 50

N2= N0P2 + N1P0 = 1000*0.08 + 50*0.05 = 82

N3= N0P3 + N1P2 + N2P1 = 1000*0.12 + 50*0.08 + 82*0.05 = 128

N4= N0P4 + N1P3 + N2P2 + N3P1 = 199

N5= N0P5 + N1P4 + N2P3 + N3P2 + N4P1 = 289

N6 = N0P6 + N1P5 + N2P4 + N3P3 + N4P2 + N5P1 = 272

N7 = N0P7 + N1P6 + N2P5 + N3P4 + N4P3 + N5P2 + N6P1 = 194

N8 = N0P8 + N1P7 + N2P6 + N3P5 + N4P4 + N5P3 + N6P2 + N7P1 = 195

Now, as we know that group replacement of all the 1000 transistors at one go cost 30
paisa per transistors and the replacement of individual transistors on failure cost
Rs.1.25, the average cost for different group replacement policies are given as
under:

End of Individual Total Cost Average Cost

Week Replacement (Individual + Group Replacement)
1 50 50*1.25 + 1000 x 0.30 = 363 363
2 50+82=132 132*1.25 + 1000*0.30 = 465 232.50
3 132+128=260 260*1.25 + 1000 * 0.30 = 625 208.30
4 260+199= 459 459 * 1.25 + 1000 * 0.30 = 874 218.50
5 459+289= 748
6 748+272= 1020
7 1020+194= 1214
8 1214+195 = 1409

Since the average cost is lowest at week 3 hence the optimum interval between
group replacement is 3 weeks.