IPE-405

Material Handling and Maintenance Management

Introduction
to
Maintenance Management

MD. FAHIM BIN ALAM

Guest Lecturer
Department of Industrial & Production Engineering
Bangladesh University of Textiles
 Material Handling
• Material handling (MH) is the lifting, moving, and placing of
materials and products throughout manufacturing, warehousing,
distribution, consumption and disposal.
• In a typical factory, MH accounts for 24% of all employees, 55% of
the space, and 87% of the production time.
• MH accounts for between 15% to 70% of the cost of a product.

Source: https://www.ielm.ust.hk/dfaculty/ajay/courses/ieem513/MH/MHsys.html
 Maintenance
• The act of maintaining.
• Engineering: Actions necessary for retaining or restoring a
piece of equipment, machine, or system to the specified
operable condition to achieve its maximum useful life.
• Maintenance functions include testing, servicing, repair,
calibration, overhaul, modification, and so on.
• We need manpower and resources to perform these
functions.
 Maintenance Engineering

• Maintenance engineering:
According to the U.S. Department
of Defense, maintenance
engineering is a discipline that
assists in acquisition of resources
needed for maintenance and
provides policies and plans for the
use of resources in performing or
accomplishing maintenance.
Maintenance Facts and Figures

• Each year over $300 billion are

spent on plant maintenance
and operations by U.S. industry,
approximately 80% of which is
spent to correct the chronic
failure of machines, systems,
and people.
• The elimination of many of
these chronic failures through
effective maintenance can
reduce the cost between 40 and
60%.
Introduction
• Maintenance management may
be described as the function of
providing policy guidance for
maintenance activities, in
addition to exercising technical
and management control of
maintenance programs.
• Tendency to increase the
mechanization and automation of
processes means lesser need for
operators but greater
requirement for maintenance
personnel.
 Introduction
• Management Functions:
1. Planning (Scheduling, Budget, Functions to do)
2. Organizing (Execution of Planning)
3. Leading
4. Controlling
Introduction
• Advantages of Mechanization and Automation
1. High Productivity
2. High Accuracy
3. Less Workers needed
• Disadvantages
1. High Investment
2. Lack of Expert Knowledge
3. Skilled Operators Needed
 Planning A Maintenance Organization

• The four guidelines useful in planning a maintenance

organization are:
• Establish reasonably clear division of authority with minimal
overlap
• Optimize number of persons reporting to an individual
• Fit the organization to the personalities involved
• Keep vertical lines of authority and responsibility as short as
possible
 Centralized MaintenanceVs. Decentralized Maintenance

Centralized maintenance serves well in small- and medium-sized

enterprises housed in one structure, or service buildings located in an
immediate geographic area.
Benefits of centralized maintenance
• More efficient compared to decentralized maintenance
• Fewer maintenance personnel required
• More effective line supervision
• Greater use of special equipment and specialized maintenance persons
• Permits procurement of more modern facilities
• Generally allows more effective on-the-job training
Centralized MaintenanceVs. Decentralized Maintenance

Drawbacks of centralized maintenance

• Requires more time getting to and from the work area or job
• No one individual becomes totally familiar with complex hardware
or equipment
• More difficult supervision because of remoteness of maintenance
site from the centralized headquarters
• Higher transportation cost due to remote maintenance work
 Centralized MaintenanceVs. Decentralized Maintenance

Important reasons for the decentralized maintenance are:

1. To reduce travel time to and from maintenance jobs
2. A spirit of cooperation between production and maintenance
workers, usually closer supervision
3. Higher chances for maintenance personnel to become familiar with
sophisticated equipment or facilities
• In large plants a combination of centralized and decentralized
maintenance normally works best.
• No one particular type of maintenance organization is useful for all
types of enterprises.
 Maintenance Program

Nine-step approach for managing a maintenance program:

1. Identify existing deficiencies: interviews with maintenance personnel
; examining in-house performance indicators
2. Set maintenance goals: identify targets for improvement
3. Establish priorities: based on savings or merit
4. Establish performance measurement parameters: number of jobs
completed per week; percentage of cost on repair
 Maintenance Program

5. Establish short- and long-range plans: short-range within one year;

long-range within three to five years
6. Document plans and forward copies to all concerned individuals
7. Implement plan
8. Report status: show slippage of the schedule and associated causes
9. Examine progress annually: Review progress and develop new plan
 Maintenance Terms and Definitions
Maintenance:
All actions appropriate for retaining an item/part/equipment in, or restoring it to, a given
condition.
Maintenance engineering:
The activity of equipment/item maintenance that develops concepts, criteria, and technical
requirements in conceptional and acquisition phases to be used and maintained in a current
status during the operating phase to assure effective maintenance support of equipment.
Preventive maintenance:
All actions carried out on a planned, periodic, and specific schedule to keep an
item/equipment in stated working condition through the process of checking and
reconditioning. These actions are precautionary steps undertaken to forestall or lower the
probability of failures or an unacceptable level of degradation in later service, rather than
correcting them after they occur.
 Maintenance Terms and Definitions

Corrective maintenance:
The unscheduled maintenance or repair to return items/equipment to a defined state and carried
out because maintenance persons or users perceived deficiencies or failures.
Predictive maintenance:
The use of modern measurement and signal processing methods to accurately diagnose
item/equipment condition during operation.
Maintenance concept:
A statement of the overall concept of the item/product specification or policy that controls the
type of maintenance action to be employed for the item under consideration.
 Maintenance Terms and Definitions
Maintenance plan:
A document that outlines the management and technical procedure to be employed to maintain an
item; usually describes facilities, tools, schedules, and resources.
Reliability:
The probability that an item will perform its stated function satisfactorily for the desired period
when used per the specified conditions.
Maintainability:
The probability that a failed item will be restored to adequately working condition.
Active repair time:
The component of downtime when repair persons are active to affect a repair.
Inspection:
The qualitative observation of an item’s performance or condition.
 Maintenance Terms and Definitions
Mean time to repair (MTTR):
A figure of merit depending on item maintainability equal to the mean item repair time. In the
case of exponentially distributed times to repair, MTTR is the reciprocal of the repair rate.
Overhaul:
A comprehensive inspection and restoration of an item or a piece of equipment to an acceptable
level at a durability time or usage limit.
Quality:
The degree to which an item, function, or process satisfies requirements of customer and user.
Maintenance person:
An individual who conducts preventive maintenance and responds to a user’s service call to a
repair facility and performs corrective maintenance on an item. Also called custom engineer,
service person, technician, field engineer, mechanic, repair person, etc.
Elements of Effective Maintenance Management

• Maintenance Policy
• Material Control
• Work Order System
• Equipment Records
• Preventive and Corrective Maintenance
• Job Planning and Scheduling
• Backlog Control and Priority System
• Performance Measurement
 Elements of Effective Maintenance Management

Maintenance Policy
• Maintenance organizations have manuals containing items such as
policies, programs, objectives, responsibilities, and authorities for all
levels of supervision, reporting requirements, useful methods and
techniques, and performance measurement indices.
• Essential for continuity of operations and a clear understanding of
the maintenance management program.
 Elements of Effective Maintenance Management

Material Control
• Material costs account for approximately 30 to 40% of total direct
maintenance costs.
• Efficient utilization of personnel depends largely on effectiveness in
material coordination.
• Material problems can lead to false starts, excess travel time, delays,
unmet due dates, etc.
• Steps such as job planning, coordinating with purchasing,
coordinating with stores, coordination of issuance of materials, and
reviewing the completed job can help reduce material related
problems.
 Elements of Effective Maintenance Management
Work Order System
• A work order authorizes and directs an individual or a group to
perform a given task.
• The work order system is useful for management in controlling costs
and evaluating job performance.
• A work order should at least contain information such as requested
and planned completion dates, work description and its reasons,
planned start date, labor and material costs, item or items to be
affected, work category (preventive maintenance, repair,
installation, etc.), and appropriate approval signatures.
Elements of Effective Maintenance Management

Equipment Records
• Equipment records are grouped under four classifications:
1. maintenance work performed (chronological documentation of all
repairs and preventive maintenance (PM))
2. maintenance cost (labor and material costs by item)
3. Inventory (information such as property number, size and type,
procurement cost, manufacturer)
4. files (operating and service manuals, warranties, drawings)
Elements of Effective Maintenance Management

Preventive and Corrective Maintenance

• Purpose of performing Preventive Maintenance is inspection and
correction of early-stage deficiencies.
• Factors that shape the PM effort are process reliability, economics,
and standards compliance.
• A major proportion of a maintenance organization’s effort is spent
on corrective maintenance (CM).
 Elements of Effective Maintenance Management

Job Planning and Scheduling

• Tasks may have to be performed before a maintenance job are
procurement of parts, tools, and materials, coordination and delivery of
parts, tools, and materials, identification of methods and sequencing,
coordination with other departments, and securing safety permits.
• Schedule effectiveness is based on the reliability of the planning
function.
• For large jobs, Program Evaluation and Review Technique (PERT) and
Critical Path Method (CPM) are used to assure effective overall control.
 Elements of Effective Maintenance Management

Backlog Control and Priority System

• Identification of backlogs is important to balance manpower and
workload requirements.
• decisions concerning overtime, hiring, subcontracting, shop
assignments, etc., are largely based on backlog information.
• It is not possible to start every job the day it is requested. In assigning
job priorities, it is important to consider factors such as importance of
the item or system, the type of maintenance, required due dates, and the
length of time the job awaiting scheduling will take.
 Elements of Effective Maintenance Management

Performance Measurement
• Performance analyses are essential to revealing the downtime of
equipment, peculiarities in operational behavior of the concerned
organization, developing plans for future maintenance, and so on.
• Various types of performance indices are used in this respect.
 Maintenance Project Control Methods

• Two widely used maintenance project control methods are Program

Evaluation and Review Technique (PERT) and Critical Path Method
(CPM).
• In maintenance and other projects three important factors of concern
are time, cost, and resource availability. CPM and PERT deal with
these factors individually and in combination.
• PERT and CPM are similar.The major difference between the two is
that when the completion times of activities of the project are
uncertain, PERT is used and with the certainty of completion times,
CPM is employed.
Maintenance Project Control Methods

• The following steps are involved with PERT and CPM:

• Break a project into individual jobs or tasks.
• Arrange these jobs/tasks into a logical network.
• Determine duration time of each job/task.
• Develop a schedule.
• Identify jobs/tasks that control the completion of project.
• Redistribute resources or funds to improve schedule.
 Activity Expected Duration Time Estimation

The PERT scheme calls for three estimates of activity duration time using
the following formula to calculate the final time:

Ta = OT +64( MT ) + PT
where
Ta = activity expected duration time,
OT = optimistic or minimum time an activity will require for completion
PT = pessimistic or maximum time an activity will require for
completion
MT = most likely time an activity will require for completion. This is the time
used for CPM activities.
 Activity Expected Duration Time Estimation

Example 3.1
Assume that we have the following time estimates to accomplish an
activity:
OT =55 days
PT =80 days
MT = 60 days
Calculate the activity expected duration time.

55 + 4(60) + 80
Ta = -------------------------------------- = 62.5 days
6
 Critical Path Method (CPM)

• Four symbols are used to construct a CPM network.

• The circle denotes an event. Specifically, it represents an unambiguous
point in the life of a project. An event could be the start or completion
of an activity or activities, and usually the events are labeled by
number.
• The continuous arrow represents an activity that consumes time,
money, and manpower.This arrow always starts at a circle and ends at a
circle.
• The dotted arrow denotes a dummy activity or a restraint. Specifically,
this is an imaginary activity that does not consume time, money, or
manpower.
Critical Path Method (CPM)

CPM symbols: (a) circle, (b) circle with divisions, (c) continuous arrow, (d) dotted arrow.
 Critical Path Method (CPM)

Maintenance Project Activities’ Associated

Data
Activity Immediate Predecessor Expected Duration
Identification Activity or Activities in Days

L – 12
M – 2
N L, M 2
O L 6
P O 3
S N, P 9
T S 15
 Critical Path Method (CPM)
Advantages:
• It is an effective tool for monitoring project progress.
• It helps improve project understanding and communication among involved
personnel.
• It highlights activities important to complete the project on time.These activities
must be completed on time to accomplish the entire project on predicted time.
• It shows interrelationships in workflow and is useful in determining labor and
resources needs in advance.
• It is an effective tool for controlling costs and can easily be computerized.
• It helps avoiding duplications and omissions and determining project
duration systematically.
Critical Path Method (CPM)

• Disadvantages:
• Costly
• Time-consuming
• Poor estimates of activity times
• Inclination to use pessimistic estimates for activity times
THANK YOU