Chapter 10 Maintenance Management
Chapter 10 Maintenance Management
Chapter 10 Maintenance Management
Maintenance Management
1. Breakdown Policy
2. Preventive Policy
PREVENTIVE POLICY DECISION
1. Time based
2. Work/Load based
3. Condition based
4. Opportunity based
OBJECTIVES OF MAINTENANCE-1
attention by maintenance.
Wages paid to the direct workers while the machine remains idle.
to machine stoppage.
2. Maintenance Activity Costs
Costs of spares or other materials used for repairs.
Cost of maintenance labor and overheads of the maintenance department.
Losses due to inefficient operations of the machines. These losses arise
because machines can either not turn out the requisite quantity or its
condition creates problems relating to quality of products.
Capital expenditure is required for replacement of machines.
FUNCTIONS OF MAINTENANCE
5. Store Keeping
7. Waste disposal
The above table shows that the average cost per year is the lowest in the 4 th year. The
company should replace the equipment at the end of the 4th year and the annual cost
of replacement is Tk.3287.50.
Problem # 3: A firm is considering replacement of a
machine, whose cost price is $12,200 and the scrap value
is $200. The running (maintenance and operating) costs
are found from experience to be as follows:
Year 1 2 3 4 5 6 7 8
Running cost ($) 200 500 800 1200 1800 2500 3200 4000
From the above table, it may be noted that the average cost per year is the minimum in
the 6th year ($3167). The company should replace the machine at the end of the 6 th
year.
Problem # 4: Dragon Airways requires two engine
parts P1 & P2 of a DC–7 to be replaced at each 300
hours and 400 hours respectively. The former part
costs $15 and installation cost is $25. The later part
costs $18 with an identical installation cost. If the two
parts are installed together, the combined installation
cost is $32.
The Dragon Airways has two alternatives:
(i) First, to replace each part at the required time; or
(ii) Second, to replace both parts together whenever any
one has to be replaced.
Required: For a cycle of 3600 hours show the respective
cost of each alternative, indicating which one is
preferred.
PROBLEM # 4 CONT.
Solution: Number of replacement for P1= 3600/300 = 12;
P2 = 3600/400 = 9
First policy: To replace each part at the time required:
Purchase cost of P1 = 12X15 = 180
Installation cost of P1 = 12X25 = 300
Purchase cost of P2 = 9X18 = 162
Installation cost of P2 = 9X25 = 225
Total maintenance cost of P1 and P2 = 180+300+162+225
= $867
PROBLEM # 4 CONT.
Second Policy: To replace both parts together if any one fails:
Purchase cost of P1 = 12X15 = 180
Purchase cost of P2 = 12X18 = 216
Combined installation cost of P1 and P2 = 12X32 = $384
Total maintenance cost = 180 + 216 + 384 = $780
From the above calculation we can see that if the firm
replace both parts if any one fails then the total
maintenance cost will be reduced by ($867 - $780)
= $87.
Hence, the second alternative should be selected.