Management
Chapter 17 –
Maintenance and
Reliability
PowerPoint presentation to accompany
Heizer/Render
Principles of Operations Management, 7e
Operations Management, 9e
© 2006 Prentice Hall, Inc. 17 – 1
Outline
Global Company Profile: Orlando
Utilities Commission
The Strategic Importance of
Maintenance and Reliability
Reliability
Improving Individual Components
Providing Redundancy
Maintenance
Implementing Preventive
Maintenance
Increasing Repair Capabilities
Total Productive Maintenance
Techniques for Enhancing
Maintenance
Reliability
1. Improving individual components
2. Providing redundancy
Maintenance
1. Implementing or improving
preventive maintenance
2. Increasing repair capability or speed
Rs = R1 x R2 x R3 x … x Rn
80 –
60 –
40 –
20 –
0 |– | | | | | | | |
100 99 98 97 96
Figure 17.2
Average reliability of each component (percent)
© 2006 Prentice Hall, Inc. 17 – 13
Reliability Example
R1 R2 R3
Number of failures
FR(%) = x 100%
Number of units tested
Number of failures
FR(N) =
Number of unit-hours of operating time
Maintenance Equipment
parts list
and work order
schedule
Equipment
Repair history reports
history file
Cost analysis
Data entry (Actual vs. standard)
– Work requests
– Purchase
Inventory of requests
spare parts – Time reporting
– Contract work
Work orders
– Preventive
maintenance
– Scheduled
Personnel data downtime
with skills, – Emergency
wages, etc. maintenance Figure 17.3
Preventive
Costs
maintenance
costs
Breakdown
maintenance
costs
Maintenance commitment
Optimal point (lowest
cost maintenance policy)
Total
costs
Full cost of
breakdowns
Costs
Preventive
maintenance
costs
Maintenance commitment
Optimal point (lowest
cost maintenance policy)
Full Cost View Figure 17.4 (b)
© 2006 Prentice Hall, Inc. 17 – 25
Maintenance Cost Example
Should the firm contract for maintenance
on their printers?
Number of Number of Months That
Breakdowns Breakdowns Occurred
0 2
1 8
2 6
3 4
Total: 20
Expected number
of breakdowns = ∑ Number of
breakdowns x
Corresponding
frequency
= (1.6)($300)
= $480 per month
Cost of expected
Preventive = Cost of
maintenance cost breakdowns if service + service contract
contract signed
= (1 breakdown/month)($300) + $150/month
= $450 per month
Competence is higher as we
move to the right
Preventive
maintenance costs less and
is faster the more we move to the left
Figure 17.5