Chapter 1 Maintenance Organization Azizee.pdf

DJJ50212 MAINTENANCE ENGINEERING AND MANAGEMENT NOTES.

1. MAINTENANCE
ENGINEERING AND
MANAGEMENT
Chapter 1: Maintenance Organization
MohdAzizeebin Sukor
Department of Mechanical Engineering
PoliteknikBanting, Selangor

2. COURSE LEARNING OUTCOMES (CLO):
Upon completion of this course, students should be able to:
CLO1 : apply the concepts of maintenance organization and strategies to solve related
problems. (C3, PLO1)
CLO2 : analyzethe principles of maintenance strategies and elaborate on the
significance of a system approach to maintenance. (C4, PLO7)
CLO3 : organize project management and finance by group in actual workplace related
to maintenance management. (A3, PLO11)

3. MAINTENANCE ORGANIZATION
1.1 APPLY THE ROLE OF MAINTENANCE MANAGEMENT

4. What is Maintenance?
Maintenancereferstotheactivitiesperformedtokeepequipment,systems,orfacilities
inadesiredconditionorstateofrepairtoensuretheyfunctionasintended.
Maintenanceincludesbothcorrectiveandpreventiveactivitiestoaddressfailures,
breakdowns,ordeteriorationovertime.
Examplesofmaintenanceactivitiesincludeinspections,lubrication,repairs,
replacement,andcleaning.

5. What is Maintenance Engineering?
MaintenanceEngineeringisthedisciplinethatappliesengineeringconcepts,
principles,andtechniquestodevelopandimprovemaintenancestrategiesand
practices.
MaintenanceEngineersareresponsibleforanalyzingmaintenancedata,identifying
problems,developingsolutions,andoptimizingmaintenanceprocessestoimprove
equipmentreliability,availability,andsafety.
MaintenanceEngineeringincludesawiderangeoftechnicalareassuchasequipment
design,conditionmonitoring,reliabilityengineering,andassetmanagement.

6. What is Maintenance Management?
Maintenance Management is the process of planning, organizing, directing, and
controlling maintenance activities to achieve organizational objectives.
Maintenance Management involves the coordination of resources, including personnel,
materials, and equipment, to ensure that maintenance activities are carried out
efficiently and effectively.
Maintenance Management includes tasks such as developing maintenance plans,
scheduling maintenance activities, managing maintenance budgets, and monitoring
maintenance performance.
Effective Maintenance Management can help organizations reduce downtime, extend
equipment life, increase safety, and improve overall operational performance.

7. 1.1.1OBJECTIVES AND BENEFITS
OF MAINTENANCE MANAGEMENT.

8. Objectives of Maintenance Management:
Ensure reliable and efficient operation of
equipment and systems
Reduce downtime and increase
availability of equipment and systems
Extend the lifespan of equipment and
systems
Maintain safety and reduce accidents in
the workplace
Control maintenance costs and optimize
maintenance resources
Comply with regulations and standards in
the industry
Improve the quality of products and
services
Increase customer satisfaction by
ensuring timely and reliable delivery of
products and services

9. Benefits of Maintenance Management:
Increased equipment and system
availability and reliability
Reduced downtime and maintenance
costs
Extended lifespan of equipment and
systems
Improved safety in the workplace
Compliance with regulations and
standards in the industry
Increased efficiency and productivity
Improved quality of products and services
Enhanced customer satisfaction and
loyalty
Increased profitability through better
asset utilization and reduced
maintenance costs
Better decision-making through the use of
maintenance data and analysis

10. Real World Examples
Objective: Toensurethereliableandefficientoperationofequipmentandsystems.
Example: Amanufacturingcompanyimplementsapreventivemaintenanceprogramfor
itsmachinerytominimizeunexpectedbreakdowns,reducedowntimeandoptimizethe
utilizationoftheirequipment.
Objective: Toreducedowntimeandincreaseavailabilityofequipmentandsystems.
Example: Anairlinecompanyschedulesregularmaintenancechecksonitsplanesto
ensuretheyaresafeandoperational,minimizingdelaysandcancellations.

11. Real World Examples
Benefit: Increased equipment and system availability and reliability.
Example: A power plant's regular maintenance program minimizes unplanned downtime of its
equipment, ensuring a continuous supply of electricity to its customers.
Benefit: Improved safety in the workplace.
Example: A chemical plant implements a safety-focused maintenance program to minimize risks of
accidents, such as equipment failures or leaks, thereby reducing the chances of injuries to workers.
Benefit: Increased profitability through better asset utilization and reduced maintenance costs.
Example: A trucking company implements a maintenance program that minimizes repair and
replacement costs by conducting regular inspections and preventive maintenance, leading to higher
profitability through better asset utilization.
Benefit: Better decision-making through the use of maintenance data and analysis.
Example: An oil and gas company uses maintenance data analysis to identify patterns and predict
equipment failures, enabling them to schedule maintenance activities and optimize equipment usage
to minimize downtime and maintenance costs.

12. Objectives and Benefits Differences in Maintenance
Management:
Objectives:
Objectives refer to specific goals that
maintenance management aims to
achieve.
Objectives may include improving
equipment efficiency, reducing downtime
and maintenance costs, and increasing
safety in the workplace.
Objectives and benefits are related but
distinct concepts in maintenance
management.
Benefits:
Benefits are the positive outcomes or
results that maintenance management
achieves when it successfully achieves
its objectives.
Benefits may include increased
availability and reliability of equipment,
improved quality of products and
services, and increased profitability.

13. 1.1.2CLASSIFY TYPES OF
MAINTENANCE ORGANIZATIONS.

14. Maintenance organizations:
•AMaintenanceOrganizationisagroupofindividualsorentitiesthatareresponsibleformaintaining
equipment,facilities,orsystems.
•MaintenanceOrganizationscanrangefromsmallbusinessestolargemultinationalcorporations
andcanbefoundinavarietyofindustriessuchasmanufacturing,transportation,andutilities.
•MaintenanceOrganizationstypicallyincludevariousdepartmentsorunits,suchasmaintenance
planning,scheduling,execution,andmonitoring.
•ThestructureofMaintenanceOrganizationscanvarydependingonthesizeandcomplexityofthe
organization,andmayincludecentralizedordecentralizedmodels.
•Inacentralizedmodel,allmaintenanceactivitiesaremanagedbyasingledepartment,whileina
decentralizedmodel,maintenanceactivitiesaremanagedbymultipledepartmentsorunits.
•ThetypeofMaintenanceOrganizationanditsstructurecanhaveasignificantimpactonthe
efficiencyandeffectivenessofmaintenanceactivities,aswellasoverallorganizational
performance.
•ExamplesofMaintenanceOrganizationsincludemaintenancecontractors,in-housemaintenance
departments,andthird-partymaintenanceserviceproviders.

15. In-House Maintenance Organization:
Employedbylargeorganizationsorindustriestomanagetheirmaintenanceactivities
in-house.
Themaintenanceteammayincludetechnicians,engineers,supervisors,and
managersresponsibleformaintainingtheorganization'sequipmentandfacilities.
Example: Alargemanufacturingcompanyemploysateamoftechnicians,engineers,
andsupervisorstomaintainitsproductionequipmentandfacilities.

16. Contract Maintenance Organization:
Contractedbyanorganizationtomanageitsmaintenanceactivities.
Themaintenanceteammayincludetechnicians,engineers,supervisors,and
managersresponsibleformaintainingtheorganization'sequipmentandfacilities.
Thecontractmaybelong-termorshort-term,andthescopemayvarydependingon
theorganization'sneeds.
Example: Anoilrefinerycontractsamaintenanceorganizationtomanagethe
maintenanceactivitiesofitsequipmentandfacilities.

17. Outsourced Maintenance Organization:
Maintenanceactivitiesareoutsourcedtoathird-partyorganization.
Themaintenanceteammayincludetechnicians,engineers,supervisors,and
managersresponsibleformaintainingtheorganization'sequipmentandfacilities.
Thescopeoftheoutsourcedmaintenancemayvarydependingontheorganization's
needs.
Example: Ahospitaloutsourcesitsmaintenanceactivitiestoathird-partymaintenance
organization.

18. Joint Maintenance Organization:
Jointownershipandmanagementofmaintenanceactivitiesbytwoormore
organizations.
Beneficialinsituationswheretwoormoreorganizationshavesharedfacilitiesor
equipmentthatrequiremaintenance.
Example: Twocompaniesthatshareamanufacturingfacilityestablishajoint
maintenanceorganizationtomanagethemaintenanceactivitiesoftheirshared
equipmentandfacilities.

19. Centralized Maintenance Organization:
Centralizationofmaintenanceactivitiesinasinglelocationordepartment.
Themaintenanceteammayincludetechnicians,engineers,supervisors,and
managersresponsibleformaintainingtheorganization'sequipmentandfacilities.
Beneficialinsituationswheretherearemultiplefacilitiesorequipmentthatrequire
maintenance.
Example: Acitygovernmentcentralizesitsmaintenanceactivitiesforitsfleetof
vehiclesandequipmentinasingledepartment.

20. Decentralized Maintenance Organization:
Distributionofmaintenanceactivitiesacrossmultiplelocationsordepartments.
Themaintenanceteammayincludetechnicians,engineers,supervisors,and
managersresponsibleformaintainingtheorganization'sequipmentandfacilities.
Beneficialinsituationswheretherearemultiplefacilitiesorequipmentthatrequire
maintenance.
Example: Alargeretailchaindistributesitsmaintenanceactivitiesacrossitsmultiple
locations,witheachlocationhavingitsownmaintenanceteam.

21. Hybrid Maintenance Organizations:
Combinestwoormoretypesofmaintenanceorganizationstoachievethedesired
maintenanceobjectives.
Takeadvantageofthestrengthsofdifferentmaintenanceorganizationtypestoachievetheir
maintenanceobjectivesmoreeffectively.
Examples:
In-houseandoutsourcedmaintenanceorganization:Anorganizationmayemployanin-
housemaintenanceteamtomanageroutinemaintenanceactivitiesbutoutsourcespecialized
maintenanceactivitiestoathird-partymaintenanceorganization.
Jointandcentralizedmaintenanceorganization:Twoormoreorganizationsthatshare
facilitiesmayestablishacentralizedmaintenancedepartmenttomanagethemaintenance
activitiesoftheirsharedequipmentandfacilities.
Contractandin-housemaintenanceorganization: Anorganizationmayemployanin-house
maintenanceteamtomanageroutinemaintenanceactivitiesandcontractamaintenance
organizationtomanagespecializedmaintenanceactivities.
Decentralizedandoutsourcedmaintenanceorganization: Anorganizationmaydistribute
maintenanceactivitiesacrossmultiplelocationsbutoutsourcethemanagementofthose
maintenanceactivitiestoathird-partymaintenanceorganization.

22. 1.1.3DIFFERENTIATE TYPES OF
RESPONSIBILITIES/ROLES IN
MAINTENANCE MANAGEMENT
ORGANIZATION.

23. Types of responsibilities/roles:
Maintenance Manager: The maintenance manager is responsible for planning,
organizing, and managing the maintenance activities of an organization. They
oversee the work of maintenance supervisors, technicians, and engineers, and
ensure that maintenance activities are carried out effectively and efficiently.
Maintenance Supervisor: The maintenance supervisor is responsible for
managing and supervising the work of maintenance technicians and engineers.
They ensure that maintenance activities are carried out according to the
maintenance schedule and quality standards.
Maintenance Technician: The maintenance technician is responsible for
carrying out routine maintenance activities, troubleshooting equipment
problems, and performing repairs as needed. They may also be responsible for
conducting preventive maintenance activities and keeping maintenance records.

24. Types of responsibilities/roles:
Maintenance Engineer: The maintenance engineer is responsible for
designing and developing maintenance programs, conducting equipment
analyses, and identifying opportunities for improvement in the
maintenance process. They may also be responsible for developing
maintenance standards and procedures.
Maintenance Planner/Scheduler: The maintenance planner/scheduler is
responsible for developing maintenance schedules and plans,
coordinating maintenance activities with production schedules, and
ensuring that equipment downtime is minimized.

25. Differentiation of roles:
MaintenanceManagervs.MaintenanceSupervisor:Themaintenancemanagerisresponsible
fortheoverallmanagementofmaintenanceactivitiesandoverseestheworkofmaintenance
supervisors.Themaintenancesupervisorisresponsibleformanagingandsupervisingtheworkof
maintenancetechniciansandengineers.
MaintenanceTechnicianvs.MaintenanceEngineer:Themaintenancetechnicianisresponsible
forcarryingoutroutinemaintenanceactivitiesandperformingrepairsasneeded. The
maintenanceengineerisresponsiblefordesigninganddevelopingmaintenanceprogramsand
conductingequipmentanalyses.
Maintenance Planner/Schedulervs.Maintenance Manager:Themaintenance
planner/schedulerisresponsiblefordevelopingmaintenanceschedulesandplansand
coordinatingmaintenanceactivitieswithproductionschedules.Themaintenancemanageris
responsiblefortheoverallmanagementofmaintenanceactivities.

26. Real World Examples:
MaintenanceManager:Themaintenancemanagerofapowerplantisresponsibleformanagingthe
maintenanceactivitiesoftheplant'sequipment,suchasturbinesandgenerators.
MaintenanceSupervisor:Themaintenancesupervisorofamanufacturingplantisresponsiblefor
supervisingtheworkofmaintenancetechniciansandengineerswhomaintaintheplant'sproduction
equipment.
MaintenanceTechnician:Amaintenancetechnicianforanairlineisresponsibleforperformingroutine
maintenanceactivitiesonaircraft,suchasinspectionsandrepairs.
MaintenanceEngineer:Amaintenanceengineerforapharmaceuticalcompanyisresponsiblefor
developingmaintenanceprogramsandproceduresforthecompany'smanufacturingequipment.
MaintenancePlanner/Scheduler:Themaintenanceplanner/schedulerforafoodprocessingplantis
responsiblefordevelopingmaintenanceschedulesandplansfortheplant'sequipmenttominimize
downtimeandmaximizeproductionefficiency.

27. MAINTENANCE ORGANIZATION
1.2 CONSTRUCT THE TYPES OF MAINTENANCE COSTS

28. 1.2.1EXPLAIN SOURCES OF
MAINTENANCE COST:

29. Introduction:
Maintenancecostreferstothecostincurredbyan
organizationtomaintainitsassetsandequipmentin
goodworkingcondition. Maintenancecostincludesthe
costoflabor,materials,andequipmentusedtorepair,
maintain,andreplaceassetsandequipment.

30. Sources of maintenance cost:
There are several sources of maintenance cost that organizations need to
consider when developing maintenance strategies. These sources
include:
Equipment failure: Equipment failure is one of the main
sources of maintenance cost. When equipment fails,
repairs or replacement must be carried out to bring the
equipment back to operational condition.
Preventive maintenance: Preventive maintenance
activities such as inspections, lubrication, and calibration
are carried out to prevent equipment failure. These
activities also incur maintenance costs.
Corrective maintenance: Corrective maintenance
activities such as repairs and replacements are carried out
to fix equipment failures. These activities incur
maintenance costs.
Predictive maintenance: Predictive maintenance activities
such as vibration analysis and oil analysis are carried out
to predict equipment failures before they occur. These
activities incur maintenance costs.
Spare parts inventory: Organizations need to maintain an
inventory of spare parts to carry out maintenance activities. The
cost of purchasing and storing spare parts is a source of
maintenance cost.
Laborcosts: The cost of laborto carry out maintenance activities is
a source of maintenance cost. This includes the cost of in- house
maintenance personnel as well as the cost of outsourced
maintenance services.
Maintenance management software: Maintenance management
software is used to manage maintenance activities and costs. The
cost of purchasing and maintaining this software is a source of
maintenance cost.

31. Real-world examples:
Equipmentfailure: Anexampleofequipmentfailurecausingmaintenancecostisabrokenconveyorbeltinaproductionline.
Thecostofreplacingthebeltandanyotherdamagedequipmentwillbeamaintenancecost.
Preventivemaintenance: Anexampleofpreventivemaintenancecausingmaintenancecostisanoilchangeforacar.Thecost
oftheoilchangeandanyotherpreventivemaintenanceactivitieswillbeamaintenancecost.
Correctivemaintenance: Anexampleofcorrectivemaintenancecausingmaintenancecostisrepairingabrokenmachineina
factory.Thecostoftherepairsandanyreplacementpartswillbeamaintenancecost.
Predictivemaintenance: Anexampleofpredictivemaintenancecausingmaintenancecostisconductingavibrationanalysis
onamotor.Thecostoftheanalysisandanysubsequentmaintenanceactivitieswillbeamaintenancecost.
Sparepartsinventory:Anexampleofsparepartsinventorycausingmaintenancecostispurchasingandstoringspareparts
forafleetoftrucks.Thecostofpurchasingandstoringthesparepartswillbeamaintenancecost.
Laborcosts: Anexampleoflaborcostscausingmaintenancecostishiringanoutsidecontractortorepairabuilding'sroof.The
costofthecontractor'slaborwillbeamaintenancecost.
Maintenancemanagementsoftware: Anexampleofmaintenancemanagementsoftwarecausingmaintenancecostis
purchasinganewsoftwareprogramtomanagemaintenanceactivities.Thecostofpurchasingandmaintainingthesoftwarewill
beamaintenancecost.

32. 1.2.2CLASSIFY TYPES OF
MAINTENANCE COST.

33. Types of maintenance cost. :
Maintenance cost can be classified into several types based on the
nature of the cost. These types include:
Directcosts:Directcostsaremaintenancecosts
thatcanbedirectlyattributedtoaspecific
maintenanceactivityorasset.Thesecostsinclude
labor,materials,andequipmentcosts.
Indirectcosts:Indirectcostsaremaintenance
coststhatcannotbedirectlyattributedtoaspecific
maintenanceactivityorasset.Thesecostsinclude
administrativeandoverheadcostssuchassalaries
ofmaintenancemanagementstaff,utilities,and
rent.
Fixedcosts:Fixedcostsaremaintenancecosts
thatdonotvarywiththelevelofmaintenance
activityortheconditionoftheasset.Thesecosts
includeoverheadcostssuchasrent,insurance,
andtaxes.
Variablecosts:Variablecostsaremaintenance
coststhatvarywiththelevelofmaintenanceactivity
ortheconditionoftheasset. Thesecostsinclude
laborandmaterialcosts.
Plannedcosts:Plannedcostsaremaintenance
coststhatareincludedinthemaintenancebudget
andareplannedinadvance.Thesecostsinclude
preventivemaintenance,predictivemaintenance,
andplannedcorrectivemaintenance.
Unplanned costs:Unplannedcostsare
maintenancecoststhatarenotincludedinthe
maintenancebudgetandoccurunexpectedly.
Thesecostsincludeemergency repairs,
unscheduledmaintenance,andcorrective
maintenanceduetounexpectedfailures.

34. Real-world examples:
Directcosts:Anexampleofdirectmaintenancecostisthecostofreplacingabrokenpumpina
manufacturingplant.Thecostofthereplacementpump,labortoinstallit,andanyothermaterialsneeded
aredirectmaintenancecosts.
Indirectcosts:Anexampleofindirectmaintenancecostisthecostofsalariesofmaintenance
managementstaff.Thiscostcannotbedirectlyattributedtoaspecificmaintenanceactivitybutisnecessary
fortheoverallmanagementofmaintenanceactivities.
Fixedcosts:Anexampleoffixedmaintenancecostisthecostofrentforamaintenancefacility.Thiscost
doesnotvarywiththelevelofmaintenanceactivityortheconditionoftheassetsbeingmaintained.
Variablecosts:Anexampleofvariablemaintenancecostisthecostoflabortorepairamachine.The
amountoflaborrequiredtorepairthemachinewillvarydependingontheconditionofthemachine.
Plannedcosts:Anexampleofplannedmaintenancecostisthecostofpreventivemaintenanceforafleet
oftrucks. Thiscostisplannedinadvanceandincludesactivitiessuchasoilchangesandinspections.
Unplannedcosts:Anexampleofunplannedmaintenancecostisthecostofemergencyrepairsduetoa
suddenequipmentfailure.Thiscostwasnotplannedforandoccurredunexpectedly.

35. 1.2.3DISTINGUISH COST ANALYSIS
METHODS.

36. Cost Analysis Methods:
Cost analysis is an important aspect of maintenance management that involves
identifying, quantifying, and analyzingthe different costs associated with maintenance
activities. There are several cost analysis methods that can be used in maintenance
management, including:
Breakdownanalysis:Breakdownanalysisinvolves
analyzingthecostsassociatedwithunplanned
maintenanceactivitiessuchasemergencyrepairs
andunscheduleddowntime.Thisanalysishelps
identifytherootcausesofthebreakdownandthe
associatedcosts.
Reliabilityanalysis: Reliabilityanalysisinvolves
analyzingthecostsassociatedwithmaintenance
activitiesaimedatimprovingthereliabilityand
availabilityofassets.Thisanalysishelpsidentifythe
mostcost-effectivemaintenancestrategies.
Lifecyclecostanalysis:Lifecyclecostanalysis
involvesanalyzingthecostsassociatedwithan
assetoveritsentirelifecycle,includingacquisition,
operation,maintenance,anddisposal.Thisanalysis
helpsidentifythemostcost-effectivemaintenance
strategiesthroughoutthelifecycleoftheasset.
Cost- benefitanalysis: Cost-benefitanalysis
involvescomparingthecostsofmaintenance
activitieswiththebenefitsgainedfromthese
activities. Thisanalysishelpsidentifythemostcost-
effectivemaintenancestrategiesbasedonthe
expectedbenefits.
Valueanalysis:Valueanalysisinvolvesidentifying
andeliminatingunnecessarycostsassociatedwith
maintenanceactivitieswithoutcompromisingquality
orperformance. Thisanalysishelpsoptimizethe
valueofmaintenanceactivities.

37. Real-world examples:
Breakdownanalysis:Anexampleofbreakdownanalysisisanalyzingthecostsassociatedwith
emergencyrepairsduetoasuddenequipmentfailure.Thisanalysishelpsidentifytherootcauseof
thefailureandtheassociatedcostsoftherepair.
Reliabilityanalysis:Anexampleofreliabilityanalysisisanalyzingthecostsassociatedwith
preventivemaintenanceactivitiesaimedatimprovingthereliabilityandavailabilityofassets. This
analysishelpsidentifythemostcost-effectivemaintenancestrategies.
Lifecyclecostanalysis:Anexampleoflifecyclecostanalysisisanalyzingthecostsassociated
withanassetoveritsentirelifecycle,includingacquisition,operation,maintenance,anddisposal.
Thisanalysishelpsidentifythemostcost-effectivemaintenancestrategiesthroughoutthelifecycle
oftheasset.
Cost-benefitanalysis:Anexampleofcost-benefitanalysisiscomparingthecostsofpreventive
maintenanceactivitieswiththebenefitsgainedfromtheseactivities.Thisanalysishelpsidentifythe
mostcost-effectivemaintenancestrategiesbasedontheexpectedbenefits.
Valueanalysis:Anexampleofvalueanalysisisidentifyingandeliminatingunnecessarycosts
associatedwithmaintenanceactivitieswithoutcompromisingqualityorperformance.Thisanalysis
helpsoptimizethevalueofmaintenanceactivities.

38. 1.2.4RELATE COST CONTROL,
BUDGET CONTROL AND FINANCE
SYSTEM.

39. Cost control:
Costcontrolistheprocessofmanagingandreducingthecostsassociatedwith
maintenanceactivities.Thisinvolvesidentifyingthedifferentcostelementsand
implementingstrategiestoreducethesecostswhilemaintainingtherequiredlevelof
performanceandreliability.
Real-worldexample:
Anexampleofcostcontrolisimplementingapreventivemaintenanceprogramthat
helpsavoidcostlybreakdownsandrepairs.

40. Budget control:
Budgetcontrolistheprocessofmanagingandcontrollingthebudgetformaintenance
activities.Thisinvolvessettingabudget,monitoringtheactualexpenses,andtaking
correctiveactionsifnecessarytostaywithinthebudget.
Real-worldexample:
Anexampleofbudgetcontrolissettingabudgetformaintenanceactivitiesfora
particularyearandmonitoringtheactualexpensestoensuretheystaywithinthe
budget.Iftheactualexpensesexceedthebudget,correctiveactionsmayneedtobe
takentoreducecosts.

41. Finance system:
Afinancesystemisthesetofprocessesandproceduresthatacompanyusesto
manageitsfinancialresources.Thisincludesbudgeting,accounting,financial
reporting,andfinancialanalysis.
Real-worldexample:
Anexampleofafinancesystemisacompany'saccountingsystem,whichtracksthe
expensesassociatedwithmaintenanceactivitiesandprovidesfinancialreportsthat
helpmanagementmakeinformeddecisionsaboutbudgetingandcostcontrol.

42. Relation between cost control, budget control, and finance
system:
Costcontrolandbudgetcontrolarecloselyrelatedbecausecostcontrolmeasuresare
typicallyimplementedtohelpstaywithinthebudget.Thefinancesystemisalsoclosely
relatedtocostcontrolandbudgetcontrolbecauseitprovidesthefinancialinformation
neededtomonitorexpensesandmakeinformeddecisionsaboutcostcontrol
measuresandbudgeting.Effectivecostcontrolandbudgetcontrolareessential
componentsofawell-functioningfinancesystemthatensuresfinancialstabilityand
sustainability.

43. MAINTENANCE ORGANIZATION
1.3 ORGANIZE TYPES OF MAINTENANCE ORGANIZATION

44. 1.3.1ANALYZEEFFECTIVE AND NON-
EFFECTIVE MAINTENANCE
ORGANIZATION.

45. Effective maintenance organizations:
Aneffectivemaintenanceorganizationisonethatisabletomeetitsmaintenance
goalsandobjectiveswhilestayingwithinitsbudget.Someofthecharacteristicsof
effectivemaintenanceorganizationsinclude:
Clearlydefinedmaintenanceobjectivesandstrategies.
Well-trainedandcompetentmaintenancepersonnel.
Adequateresources,includingtools,equipment,andspareparts.
Effectivemaintenanceplanningandschedulingprocesses.
Proactivemaintenancepractices,suchaspreventivemaintenanceandcondition-basedmaintenance.
Continuousimprovementprocessestoidentifyandeliminateinefficiencies.
An example of an effective maintenance organization is an airline maintenance
department that has well-trained mechanics, a comprehensive preventive maintenance
program, and effective processes for managing spare parts inventory. The department
is able to maintain a high level of aircraft availability while staying within its budget.

46. Non-effective maintenance organizations:
Anon-effectivemaintenanceorganizationisonethatisunabletomeetitsmaintenancegoals
andobjectivesorisexperiencingexcessivedowntimeandrepaircosts.Someofthe
characteristicsofnon-effectivemaintenanceorganizationsinclude:
Lackofclearlydefinedmaintenanceobjectivesandstrategies.
Inadequatetrainingandcompetenceofmaintenancepersonnel.
Insufficientresources,includingtools,equipment,andspareparts.
Poormaintenanceplanningandschedulingprocesses.
Reactivemaintenancepractices,suchascorrectivemaintenanceandbreakdownmaintenance.
Lackofcontinuousimprovementprocessestoidentifyandeliminateinefficiencies.
Anexampleofanon-effectivemaintenanceorganizationisamanufacturingplantthat
experiencesfrequentbreakdownsanddowntimeduetoalackofpreventivemaintenanceand
inadequatesparepartsinventory.Themaintenancedepartmentisoftenoverwhelmedand
unabletokeepupwiththerepairdemands,leadingtoexcessivedowntimeandrepaircosts.

47. Effective maintenance organizations vs Non-effective
maintenance organizations:
Overall,effectivemaintenanceorganizationsareabletomeettheirmaintenancegoals
andobjectiveswhilestayingwithintheirbudget,whilenon-effectivemaintenance
organizationsstruggletokeepupwithmaintenancedemandsandexperience
excessivedowntimeandrepaircosts.Byidentifyingthecharacteristicsofeffective
maintenanceorganizations,non-effectiveorganizationscanimplementstrategiesto
improvetheirmaintenancepracticesandachievebetterresults.

48. 1.3.2ANALYZEMAINTENANCE
PERFORMANCE OR EVOLUTION.

49. Maintenance performance analysis:
Maintenanceperformanceanalysisinvolvesmeasuringandevaluatingtheeffectivenessand
efficiencyofmaintenanceactivities.Someofthekeymetricsusedinmaintenance
performanceanalysisinclude:
1.MeanTimeBetweenFailures(MTBF)–theaveragetimebetweenequipmentfailures.
2.MeanTimeToRepair(MTTR)–theaveragetimerequiredtorepairfailedequipment.
3.OverallEquipmentEffectiveness(OEE)–ameasureoftheavailability,performance,andqualityofequipment.
4.MaintenanceCostasapercentageofTotalProductionCost–ameasureofthecostofmaintenancerelativeto
thetotalcostofproduction.
5.ScheduleCompliance–thepercentageofscheduledmaintenanceactivitiesthatarecompletedontime.
Anexampleofmaintenanceperformanceanalysisisaminingcompanythatmeasuresthe
MTBFandMTTRofitsminingequipment.Byanalyzingthesemetrics,thecompanycan
identifyequipmentthatispronetofailureandtakeproactivemeasurestopreventdowntime.
Thecompanycanalsotrackitsmaintenancecostsasapercentageoftotalproductioncosts
toensurethatitisoperatingefficiently.

50. Maintenance evolution analysis:
Maintenanceevolutionanalysisinvolvesevaluatinghowmaintenancepracticeshave
changedovertimeandidentifyingareasforimprovement.Someofthekeyareastoevaluate
inmaintenanceevolutionanalysisinclude:
1.Changesinmaintenancestrategy–suchasashiftfromreactivetoproactivemaintenancepractices.
2.Changesinmaintenancetechnologies–suchastheadoptionofnewconditionmonitoringorpredictive
maintenancetools.
3.Changesinmaintenanceorganizationstructure–suchasthecentralizationordecentralizationof
maintenanceactivities.
4.Changesinmaintenanceperformancemetrics–suchastheadditionofnewmetricsorchangesinthe
importanceplacedoncertainmetrics.
Anexampleofmaintenanceevolutionanalysisisapowerplantthathastransitionedfrom
reactivetoproactivemaintenancepracticesovertime.Theplanthasimplementeda
condition- basedmaintenanceprogramthatusesreal-timemonitoringdatatoidentifypotential
equipmentfailuresbeforetheyoccur.Byanalyzingtheevolutionofitsmaintenancepractices,
theplantcanidentifyareasforfurtherimprovementandcontinuetooptimizeitsmaintenance
strategy.

51. Maintenance performance analysis vs Maintenance evolution
analysis:
Overall,maintenanceperformanceanalysisandmaintenanceevolutionanalysisare
importanttoolsforevaluatingtheeffectivenessandefficiencyofmaintenanceactivities.
Bymeasuringkeymetricsandanalyzingchangesinmaintenancepracticesovertime,
organizationscanidentifyareasforimprovementandoptimizetheirmaintenance
strategy.

52. 1.3.3CLASSIFY MAINTENANCE AUDIT
SUCH AS MAINTENANCE OPERATION
AUDIT, MAINTENANCE PLAN AUDIT AND
TECHNICAL AUDIT.

53. Maintenance Operation Audit:
MaintenanceOperationAuditinvolvesevaluatingtheperformanceofmaintenanceactivitiesat
theoperationallevel.Thisauditistypicallyconductedbyamaintenancesupervisoror
managerandincludesanassessmentofthefollowing:
Theeffectivenessofworkordermanagementprocesses.
Thequalityofmaintenanceworkperformed.
Thesafetyofmaintenanceactivities.
Theavailabilityandadequacyofmaintenanceresources,suchastools,equipment,andspareparts.
Thecomplianceofmaintenanceactivitieswithrelevantregulationsandstandards.
AnexampleofMaintenanceOperationAuditisamanufacturingplantthatconductsregular
auditsofitsmaintenanceoperations.Theplantevaluatestheperformanceofitsmaintenance
teambymeasuringthequalityofworkperformed,thesafetyofmaintenanceactivities,and
compliancewithregulationsandstandards.Byconductingtheseaudits,theplantcanidentify
areasforimprovementandtakecorrectiveactiontoensurethatmaintenanceactivitiesare
performedefficientlyandeffectively.

54. Maintenance Plan Audit:
MaintenancePlanAuditinvolvesevaluatingthemaintenanceplanningandscheduling
processes.Thisauditistypicallyconductedbyamaintenanceplannerorscheduling
specialistandincludesanassessmentofthefollowing:
Theeffectivenessofthemaintenanceplanningprocess,includingtheaccuracyofjobplansandtheuseof
appropriatemaintenanceprocedures.
Theeffectivenessofthemaintenanceschedulingprocess,includingtheabilitytooptimizeschedulestominimize
downtimeandmaximizeequipmentavailability.
Theuseofappropriatemaintenancetoolsandsystemstosupportplanningandschedulingactivities.
Thecomplianceofmaintenanceplansandscheduleswithrelevantregulationsandstandards.
AnexampleofMaintenancePlanAuditisatransportationcompanythatconductsregular
auditsofitsmaintenanceplanningandschedulingprocesses.Thecompanyevaluatesthe
effectivenessofitsmaintenanceplanningprocessbymeasuringtheaccuracyofjobplans
andtheuseofappropriatemaintenanceprocedures. Thecompanyalsoevaluatesthe
effectivenessofitsmaintenanceschedulingprocessbymeasuringtheabilitytooptimize
schedulestominimizedowntimeandmaximizeequipmentavailability.

55. Technical Audit:
TechnicalAuditinvolvesevaluatingthetechnicalaspectsofmaintenanceactivities.Thisaudit
istypicallyconductedbyamaintenanceengineerortechnicalspecialistandincludesan
assessmentofthefollowing:
Thequalityofmaintenanceworkperformed,includingtheeffectivenessofrepairsandtheuseofappropriate
maintenanceprocedures.
Theadequacyofequipmentdesignandinstallation,includingtheuseofappropriatematerialsandcomponents.
Theadequacyofmaintenanceproceduresandpractices,includingtheuseofappropriatetoolsandtechniques.
Thecomplianceofmaintenanceactivitieswithrelevantregulationsandstandards.
AnexampleofTechnicalAuditisanoilandgascompanythatconductsregularauditsofits
maintenanceactivities.Thecompanyevaluatesthequalityofmaintenanceworkperformedby
measuringtheeffectivenessofrepairsandtheuseofappropriatemaintenanceprocedures.
Thecompanyalsoevaluatestheadequacyofequipmentdesignandinstallationby
measuringtheuseofappropriatematerialsandcomponents.Byconductingtheseaudits,the
companycanensurethatitsmaintenanceactivitiesareperformedtoahighstandardand
complywithrelevantregulationsandstandards.

56. The importance of Maintenance Operation Audit, Maintenance
Plan Audit, and Technical Audit :
Overall,MaintenanceOperationAudit,MaintenancePlanAudit,andTechnicalAudit
areimportanttoolsforevaluatingtheeffectivenessandefficiencyofmaintenance
activities.Bymeasuringkeymetricsandanalyzingmaintenanceprocesses,
organizationscanidentifyareasforimprovementandoptimizetheirmaintenance
strategy.

57. 1.3.4APPLY KEY PERFORMANCE
INDICATORS (KPI) IN MAINTENANCE
REVIEW OR IMPROVEMENT OF
MAINTENANCE SYSTEM AND STRATEGY.

58. Key Performance Indicators (KPI) in Maintenance:
KPIsaremetricsusedtomeasuretheperformanceandeffectivenessofmaintenance
management.
KPIshelptoidentifyareasthatrequireimprovementandassistinthedecision-making
process.

59. Types of KPIs in Maintenance:
EquipmentAvailability:Measuresthepercentageoftimethatequipmentisavailablefor
production.
EquipmentReliability:Measuresthenumberofbreakdownsorfailuresofequipmentin
agivenperiod.
MaintenanceCost: Measuresthetotalcostofmaintenanceactivitiesinagivenperiod.
MaintenanceProductivity:Measurestheefficiencyofmaintenanceactivities,suchas
thenumberofworkorderscompletedperday.
MeanTimeBetweenFailures(MTBF): Measurestheaveragetimebetweenequipment
failures.
MeanTimetoRepair(MTTR):Measurestheaveragetimeittakestorepairequipment
afterafailure.
OEE(OverallEquipmentEffectiveness):Measurestheoverallefficiencyofaproduction
line,takingintoaccountavailability,performance,andquality.

60. Applying KPIs in Maintenance:
KPIscanbeusedtoidentifyareasforimprovementinthemaintenance
systemandstrategy.
Forexample,ifequipmentavailabilityislow,KPIscanhelptoidentifytheroot
causeoftheproblemandguideimprovementsinthemaintenanceprogram.
RegularmonitoringofKPIscanhelptotrackprogressovertimeandensure
thatthemaintenancesystemiseffectiveandefficient.

61. Applying KPIs in Maintenance Review or Improvement of
Maintenance System and Strategy:
1.DefineObjectives:Identifythegoalsandobjectivesofthemaintenancesystemandstrategy.For
example,theobjectivemaybetoimproveequipmentreliabilityorreducemaintenancecosts.
2.SelectRelevantKPIs: SelectKPIsthatarerelevanttotheobjectivesofthemaintenancesystemand
strategy.Forexample,iftheobjectiveistoimproveequipmentreliability,KPIssuchasMTBFandMTTR
maybeselected.
3.EstablishBaselines:EstablishbaselinevaluesfortheselectedKPIs. Thiswillhelptomonitorprogress
andidentifyareasforimprovement.
4.SetTargets:SetrealistictargetsfortheKPIsbasedontheobjectivesofthemaintenancesystemand
strategy.Forexample,iftheobjectiveistoimproveequipmentreliability,atargetforMTBFmaybeset.
5.MonitorPerformance: RegularlymonitortheKPIstotrackperformanceagainsttheestablished
baselinesandtargets.Thiswillhelptoidentifyareasthatrequireimprovementandassistinthedecision-
makingprocess.
6.AnalyzeData:AnalyzetheKPIdatatoidentifytrendsandpatterns.Thiswillhelptoidentifytheroot
causesofproblemsandguideimprovementsinthemaintenanceprogram.
7.TakeAction:TakeactiontoimprovethemaintenancesystemandstrategybasedontheKPIdata.For
example,iftheMTBFislow,actionssuchasimprovingpreventivemaintenanceactivitiesorupgrading
equipmentmaybetaken.
8.ContinuouslyImprove:Continuouslyreviewandimprovethemaintenancesystemandstrategybased
ontheKPIdata.Thiswillhelptoensurethatthemaintenanceprogramiseffectiveandefficient.