DJJ50212 Maintenance Engineering and Management Chapter 1 Maintenance Organization
DJJ50212 Maintenance Engineering and Management Chapter 1 Maintenance Organization
DJJ50212 Maintenance Engineering and Management Chapter 1 Maintenance Organization
ENGINEERING AND
MANAGEMENT
Chapter 1: Maintenance Organization
Ensure reliable and efficient operation of Control maintenance costs and optimize
equipment and systems maintenance resources
Reduce downtime and increase Comply with regulations and standards
availability of equipment and systems in the industry
Extend the lifespan of equipment and Improve the quality of products and
systems services
Maintain safety and reduce accidents in Increase customer satisfaction by
the workplace ensuring timely and reliable delivery of
products and services
Benefits of Maintenance Management:
Objective: To ensure the reliable and efficient operation of equipment and systems.
Example: A manufacturing company implements a preventive maintenance program for
its machinery to minimize unexpected breakdowns, reduce downtime and optimize the
utilization of their equipment.
Objective: To reduce downtime and increase availability of equipment and systems.
Example: An airline company schedules regular maintenance checks on its planes to
ensure they are safe and operational, minimizing delays and cancellations.
Real World Examples
Objectives: Benefits:
Objectives refer to specific goals that Benefits are the positive outcomes or
maintenance management aims to results that maintenance management
achieve. achieves when it successfully achieves
its objectives.
Objectives may include improving
equipment efficiency, reducing downtime Benefits may include increased
and maintenance costs, and increasing availability and reliability of equipment,
safety in the workplace. improved quality of products and
services, and increased profitability.
Objectives and benefits are related but
distinct concepts in maintenance
management.
1.1.2CLASSIFY TYPES OF
MAINTENANCE ORGANIZATIONS.
Maintenance organizations:
Combines two or more types of maintenance organizations to achieve the desired maintenance
objectives.
Take advantage of the strengths of different maintenance organization types to achieve their
maintenance objectives more effectively.
Examples:
In-house and outsourced maintenance organization: An organization may employ an in-house
maintenance team to manage routine maintenance activities but outsource specialized maintenance
activities to a third-party maintenance organization.
Joint and centralized maintenance organization: Two or more organizations that share facilities may
establish a centralized maintenance department to manage the maintenance activities of their shared
equipment and facilities.
Contract and in-house maintenance organization: An organization may employ an in-house
maintenance team to manage routine maintenance activities and contract a maintenance
organization to manage specialized maintenance activities.
Decentralized and outsourced maintenance organization: An organization may distribute
maintenance activities across multiple locations but outsource the management of those
maintenance activities to a third-party maintenance organization.
1.1.3DIFFERENTIATE TYPES OF
RESPONSIBILITIES/ROLES IN MAINTENANCE
MANAGEMENT ORGANIZATION.
Types of responsibilities/roles:
Maintenance Manager vs. Maintenance Supervisor: The maintenance manager is responsible for
the overall management of maintenance activities and oversees the work of maintenance
supervisors. The maintenance supervisor is responsible for managing and supervising the work
of maintenance technicians and engineers.
Maintenance Manager: The maintenance manager of a power plant is responsible for managing the
maintenance activities of the plant's equipment, such as turbines and generators.
Maintenance Technician: A maintenance technician for an airline is responsible for performing routine
maintenance activities on aircraft, such as inspections and repairs.
Equipment failure: An example of equipment failure causing maintenance cost is a broken conveyor belt in a
production line. The cost of replacing the belt and any other damaged equipment will be a maintenance cost.
Preventive maintenance: An example of preventive maintenance causing maintenance cost is an oil change for a
car. The cost of the oil change and any other preventive maintenance activities will be a maintenance cost.
Corrective maintenance: An example of corrective maintenance causing maintenance cost is repairing a broken
machine in a factory. The cost of the repairs and any replacement parts will be a maintenance cost.
Spare parts inventory: An example of spare parts inventory causing maintenance cost is purchasing and storing
spare parts for a fleet of trucks. The cost of purchasing and storing the spare parts will be a maintenance cost.
Labor costs: An example of labor costs causing maintenance cost is hiring an outside contractor to repair a
building's roof. The cost of the contractor's labor will be a maintenance cost.
Indirect costs: Indirect costs are maintenance Planned costs: Planned costs are maintenance costs
costs that cannot be directly attributed to a that are included in the maintenance budget and are
specific maintenance activity or asset. These planned in advance. These costs include preventive
costs include administrative and overhead costs maintenance, predictive maintenance, and planned
such as salaries of maintenance management corrective maintenance.
staff, utilities, and rent.
Unplanned costs: Unplanned costs are maintenance
Fixed costs: Fixed costs are maintenance costs costs that are not included in the maintenance
that do not vary with the level of maintenance budget and occur unexpectedly. These costs include
activity or the condition of the asset. These costs emergency repairs, unscheduled maintenance, and
corrective maintenance due to unexpected failures.
include overhead costs such as rent, insurance,
and taxes.
Real-world examples:
Direct costs: An example of direct maintenance cost is the cost of replacing a broken pump in a
manufacturing plant. The cost of the replacement pump, labor to install it, and any other materials needed
are direct maintenance costs.
Indirect costs: An example of indirect maintenance cost is the cost of salaries of maintenance management
staff. This cost cannot be directly attributed to a specific maintenance activity but is necessary for the
overall management of maintenance activities.
Fixed costs: An example of fixed maintenance cost is the cost of rent for a maintenance facility. This cost
does not vary with the level of maintenance activity or the condition of the assets being maintained.
Variable costs: An example of variable maintenance cost is the cost of labor to repair a machine. The
amount of labor required to repair the machine will vary depending on the condition of the machine.
Planned costs: An example of planned maintenance cost is the cost of preventive maintenance for a fleet of
trucks. This cost is planned in advance and includes activities such as oil changes and inspections.
Unplanned costs: An example of unplanned maintenance cost is the cost of emergency repairs due to a
sudden equipment failure. This cost was not planned for and occurred unexpectedly.
1.2.3DISTINGUISH COST ANALYSIS
METHODS.
Cost Analysis Methods:
Reliability analysis: Reliability analysis involves Value analysis: Value analysis involves identifying
analyzing the costs associated with maintenance and eliminating unnecessary costs associated with
activities aimed at improving the reliability and maintenance activities without compromising
availability of assets. This analysis helps identify quality or performance. This analysis helps
the most cost-effective maintenance strategies. optimize the value of maintenance activities.
Breakdown analysis: An example of breakdown analysis is analyzing the costs associated with
emergency repairs due to a sudden equipment failure. This analysis helps identify the root cause of the
failure and the associated costs of the repair.
Reliability analysis: An example of reliability analysis is analyzing the costs associated with preventive
maintenance activities aimed at improving the reliability and availability of assets. This analysis helps
identify the most cost-effective maintenance strategies.
Life cycle cost analysis: An example of life cycle cost analysis is analyzing the costs associated with an
asset over its entire life cycle, including acquisition, operation, maintenance, and disposal. This analysis
helps identify the most cost-effective maintenance strategies throughout the life cycle of the asset.
Value analysis: An example of value analysis is identifying and eliminating unnecessary costs associated
with maintenance activities without compromising quality or performance. This analysis helps optimize
the value of maintenance activities.
1.2.4RELATE COST CONTROL, BUDGET
CONTROL AND FINANCE SYSTEM.
Cost control:
Cost control is the process of managing and reducing the costs associated with
maintenance activities. This involves identifying the different cost elements and
implementing strategies to reduce these costs while maintaining the required level of
performance and reliability.
Real-world example:
Budget control is the process of managing and controlling the budget for
maintenance activities. This involves setting a budget, monitoring the actual
expenses, and taking corrective actions if necessary to stay within the budget.
Real-world example:
A finance system is the set of processes and procedures that a company uses to
manage its financial resources. This includes budgeting, accounting, financial
reporting, and financial analysis.
Real-world example:
Cost control and budget control are closely related because cost control measures
are typically implemented to help stay within the budget. The finance system is also
closely related to cost control and budget control because it provides the financial
information needed to monitor expenses and make informed decisions about cost
control measures and budgeting. Effective cost control and budget control are
essential components of a well-functioning finance system that ensures financial
stability and sustainability.
MAINTENANCE ORGANIZATION
An example of maintenance evolution analysis is a power plant that has transitioned from
reactive to proactive maintenance practices over time. The plant has implemented a
condition-based maintenance program that uses real-time monitoring data to identify
potential equipment failures before they occur. By analyzing the evolution of its
maintenance practices, the plant can identify areas for further improvement and continue
to optimize its maintenance strategy.
Maintenance performance analysis vs Maintenance evolution
analysis:
Maintenance Plan Audit involves evaluating the maintenance planning and scheduling
processes. This audit is typically conducted by a maintenance planner or scheduling
specialist and includes an assessment of the following:
The effectiveness of the maintenance planning process, including the accuracy of job plans and the use of
appropriate maintenance procedures.
The effectiveness of the maintenance scheduling process, including the ability to optimize schedules to
minimize downtime and maximize equipment availability.
The use of appropriate maintenance tools and systems to support planning and scheduling activities.
The compliance of maintenance plans and schedules with relevant regulations and standards.
Technical Audit involves evaluating the technical aspects of maintenance activities. This audit
is typically conducted by a maintenance engineer or technical specialist and includes an
assessment of the following:
The quality of maintenance work performed, including the effectiveness of repairs and the use of appropriate
maintenance procedures.
The adequacy of equipment design and installation, including the use of appropriate materials and
components.
The adequacy of maintenance procedures and practices, including the use of appropriate tools and techniques.
The compliance of maintenance activities with relevant regulations and standards.
An example of Technical Audit is an oil and gas company that conducts regular audits of its
maintenance activities. The company evaluates the quality of maintenance work performed
by measuring the effectiveness of repairs and the use of appropriate maintenance
procedures. The company also evaluates the adequacy of equipment design and installation
by measuring the use of appropriate materials and components. By conducting these audits,
the company can ensure that its maintenance activities are performed to a high standard and
comply with relevant regulations and standards.
The importance of Maintenance Operation Audit, Maintenance
Plan Audit, and Technical Audit :
Overall, Maintenance Operation Audit, Maintenance Plan Audit, and Technical Audit
are important tools for evaluating the effectiveness and efficiency of maintenance
activities. By measuring key metrics and analyzing maintenance processes,
organizations can identify areas for improvement and optimize their maintenance
strategy.
1.3.4APPLY KEY PERFORMANCE INDICATORS (KPI)
IN MAINTENANCE REVIEW OR IMPROVEMENT OF
MAINTENANCE SYSTEM AND STRATEGY.
Key Performance Indicators (KPI) in Maintenance:
KPIs help to identify areas that require improvement and assist in the decision-
making process.
Types of KPIs in Maintenance:
Mean Time Between Failures (MTBF): Measures the average time between
equipment failures.
Mean Time to Repair (MTTR): Measures the average time it takes to repair
equipment after a failure.
For example, if equipment availability is low, KPIs can help to identify the
root cause of the problem and guide improvements in the maintenance
program.
Regular monitoring of KPIs can help to track progress over time and ensure
that the maintenance system is effective and efficient.
Applying KPIs in Maintenance Review or Improvement of
Maintenance System and Strategy:
1. Define Objectives: Identify the goals and objectives of the maintenance system and strategy. For example,
the objective may be to improve equipment reliability or reduce maintenance costs.
2. Select Relevant KPIs: Select KPIs that are relevant to the objectives of the maintenance system and
strategy. For example, if the objective is to improve equipment reliability, KPIs such as MTBF and MTTR may
be selected.
3. Establish Baselines: Establish baseline values for the selected KPIs. This will help to monitor progress and
identify areas for improvement.
4. Set Targets: Set realistic targets for the KPIs based on the objectives of the maintenance system and
strategy. For example, if the objective is to improve equipment reliability, a target for MTBF may be set.
5. Monitor Performance: Regularly monitor the KPIs to track performance against the established baselines
and targets. This will help to identify areas that require improvement and assist in the decision-making
process.
6. Analyze Data: Analyze the KPI data to identify trends and patterns. This will help to identify the root causes
of problems and guide improvements in the maintenance program.
7. Take Action: Take action to improve the maintenance system and strategy based on the KPI data. For
example, if the MTBF is low, actions such as improving preventive maintenance activities or upgrading
equipment may be taken.
8. Continuously Improve: Continuously review and improve the maintenance system and strategy based on the
KPI data. This will help to ensure that the maintenance program is effective and efficient.