Power Point Operation Management Heizer Chapter 17

Maintenance and
Reliability
17
PowerPoint presentation to accompany

Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
PowerPoint slides by Jeff Heyl
Additional content from Gerry Cook
2014
2014
Pearson
Pearson
Education,
Education,
Inc.Inc.
17 - 1
Outline
Global Company Profile:

Orlando Utilities Commission
The Strategic Importance of

Maintenance and Reliability
Reliability
Maintenance
Total Productive Maintenance
2014 Pearson Education, Inc.
17 - 2
Learning Objectives
When you complete this chapter you
should be able to:
1. Describe how to improve system
reliability
2. Determine system reliability
3. Determine mean time between failure
(MTBF)
4. Distinguish between preventive and
breakdown maintenance
17 - 3
Learning Objectives
When you complete this chapter you
should be able to:
5. Describe how to improve
maintenance
6. Compare preventive and breakdown
maintenance costs
7. Define autonomous maintenance
17 - 4
Maintenance of power generating plants
Every year each plant is taken off-line for 13 weeks maintenance
Every three years each plant is taken offline for 6-8 weeks for complete overhaul
and turbine inspection
Each overhaul has 1,800 tasks and

requires 72,000 labor hours
OUC performs over 12,000 maintenance

tasks each year
2014
2014
Pearson
Pearson
Education,
Education,
Inc.Inc.
17 - 5
Every day a plant is down costs OUC

$110,000
Unexpected outages cost between

$350,000 and $600,000 per day
Preventive maintenance discovered a

cracked rotor blade which could have
destroyed a $27 million piece of equipment
2014
2014
Pearson
Pearson
Education,
Education,
Inc.Inc.
17 - 6
Strategic Importance of
The objective of maintenance

and reliability is to maintain
the capability of the system
17 - 7
Strategic Importance of
Failure has far reaching effects on a
firms
Operation
Reputation
Profitability
Customer satisfaction
Reducing idle time
Protecting investment in plant and
equipment
17 - 8

Maintenance is all activities involved in
keeping a systems equipment in
working order
Reliability is the probability that a
machine will function properly for a
specified time
17 - 9
Important Tactics
Reliability
1. Improving individual components
2. Providing redundancy
Maintenance
1. Implementing or improving preventive
maintenance
2. Increasing repair capability or speed
17 - 10
Maintenance Management
Figure 17.1
Employee Involvement
Partnering with maintenance
personnel
Skill training
Reward system
Employee empowerment

Procedures
Results
Reduced inventory
Improved quality
Improved capacity
Reputation for quality
Continuous improvement
Reduced variability
Clean and lubricate

Monitor and adjust
Make minor repair
Keep computerized records
17 - 11
Reliability
System reliability
Improving individual components
Rs = R1 x R2 x R3 x x Rn
where
R1 = reliability of component 1
R2 = reliability of component 2
and so on
17 - 12
Overall System Reliability

Figure 17.2
n=1
80
n=1
0
60
40
n
20
n=
n
=
0
40
Reliability of the system (percent)
100
n=
n=
10
0
50
20
0
30
0
100
99
98
97
Average reliability of each component (percent)
96
17 - 13
Reliability Example
R1
R2
R3
.90
.80
.99
Rs
Reliability of the process is

Rs = R1 x R2 x R3 = .90 x .80 x .99 = .713 or 71.3%
17 - 14
Product Failure Rate (FR)

Basic unit of measure for reliability
Number of failures
FR(%) =
x 100%
Number of units tested
FR(N) =
Number of failures
Number of unit-hours of operating time
Mean time between failures

1
MTBF =
FR(N)
17 - 15
Failure Rate Example

20 air conditioning units for use in the international
space station operated for 1,000 hours
One failed after 200 hours and one after 600 hours
2
FR(%) =
(100%) = 10%
20
2
FR(N) =
= .000106 failure/unit hr
20,000 - 1,200
1
MTBF =
= 9,434 hrs
.000106
17 - 16
Failure Rate Example

20 air conditioning units for use in the international
space station operated for 1,000 hours
One failed after 200 hours and one after 600 hours
Failure rate
2 per trip
FR(%) =
(100%) = 10%
20
FR = FR(N)(24 hrs)(6 days/trip)
2
FR = (.000106)(24)(6)
FR(N) =
= .000106 failure/unit hr
20,000 - 1,200
FR = .0153 failure/trip
1
MTBF =
= 9,434 hrs
.000106
17 - 17
Providing Redundancy
Provide backup components to
increase reliability
Probability of
first
RS =
+
component
working
Probability
of second
component
working
Probability of
needing
x
second
component
(.8)
(.8)
.8
.16
= .96
(1 - .8)
17 - 18
Redundancy Example
A redundant process is installed to support the
earlier example where Rs = .713
R1
R2
0.90
0.80
0.90
0.80
R3
Reliability has
increased from
.713 to .94
0.99
RS = [.9 + .9(1 - .9)] x [.8 + .8(1 - .8)] x .99

= [.9 + (.9)(.1)] x [.8 + (.8)(.2)] x .99
= .99 x .96 x .99 = .94
17 - 19
Parallel Redundancy
R1
Increased reliability
through parallel
redundancy
R2
0.95
0.975
R3
0.975
R4
0.95
Reliability for
= R2 x R3 = .975 x .975 = .9506
the middle path
Probability of failure
= (1 0.95) x (1 .9506) x (1 0.95)
for all 3 paths
= (.05) x (.0494) x (.05) = .00012
Reliability of new design = 1 .00012 = .99988
17 - 20
Maintenance
Two types of maintenance
Preventive maintenance routine
inspection and servicing to keep facilities
in good repair
Breakdown maintenance emergency
or priority repairs on failed equipment
17 - 21
Implementing Preventive
Maintenance
Need to know when a system requires
service or is likely to fail
High initial failure rates are known as
infant mortality
Once a product settles in, MTBF generally
follows a normal distribution
Good reporting and record keeping can aid
the decision on when preventive
maintenance should be performed
17 - 22
Computerized Maintenance
System
Data Files
Output Reports
Equipment file
with parts list
Inventory and
purchasing reports
Maintenance
and work order
schedule
Equipment
parts list
Repair
history file
Equipment
history reports
Inventory of
spare parts
Cost analysis
(Actual vs. standard)
Personnel data
with skills,
wages, etc.
Work orders
Figure 17.3
17 - 23
Maintenance Costs
The traditional view attempted to balance
preventive and breakdown maintenance
costs
Typically this approach failed to consider
the full costs of a breakdown
Inventory
Employee morale
Schedule unreliability
17 - 24
Maintenance Costs
Figure 17.4 (a)
Total
costs
Costs
Preventive
maintenance
costs
Breakdown
maintenance
costs
Optimal point (lowest

cost maintenance policy)
Maintenance commitment
Traditional View
17 - 25
Maintenance Costs
Figure 17.4 (b)
Costs
Total
costs
Full cost of
breakdowns
Preventive
maintenance
costs
Maintenance commitment
Optimal point (lowest
cost maintenance policy)
Full Cost View
17 - 26
Maintenance Cost Example

Should the firm contract for maintenance
on their printers?
NUMBER OF
BREAKDOWNS
NUMBER OF MONTHS THAT

BREAKDOWNS OCCURRED
4
Total :
20
Average cost of breakdown = $300

17 - 27

1. Compute the expected number of breakdowns
NUMBER OF
BREAKDOWNS
FREQUENCY
NUMBER OF
BREAKDOWNS
FREQUENCY
2/20 = .1
6/20 = .3
8/20 = .4
4/20 = .2
Expected number =
of breakdowns
Number of
x
breakdowns
Corresponding
frequency
= (0)(.1) + (1)(.4) + (2)(.3) + (3)(.2)

= 0 + .4 + .6 + .6
= 1.6 breakdowns / month
17 - 28

2. Compute the expected breakdown cost per
month with no preventive maintenance
Expected
=
breakdown cost
Expected number x Cost per

of breakdowns
breakdown
= (1.6)($300)
= $480 per month
17 - 29

3. Compute the cost of preventive maintenance
=
Preventive
maintenance cost
Cost of expected
breakdowns if
service contract
signed
+ Cost of
service
contract
= (1 breakdown / month)($300) + $150 / month

= $450 / month
Hire the service firm; it is less expensive

17 - 30
Increasing Repair Capabilities

1. Well-trained personnel
2. Adequate resources
3. Ability to establish repair plan and
priorities
4. Ability and authority to do material
planning
5. Ability to identify the cause of
breakdowns
6. Ability to design ways to extend MTBF
17 - 31

Figure 17.5
Operator
(autonomous
maintenance)
Maintenance
department
Manufacturers
field service
Depot service
(return equipment)
Competence is higher as we
move to the right
Preventive
maintenance costs less and
is faster the more we move to the left
Increasing Operator Ownership
Increasing Complexity
17 - 32
Autonomous Maintenance
Employees accept responsibility for
Observe
Check
Adjust
Clean
Notify
Predict failures, prevent breakdowns,

prolong equipment life
17 - 33

(TPM)
Designing machines that are reliable,
easy to operate, and easy to maintain
Emphasizing total cost of ownership
when purchasing machines, so that
service and maintenance are included
in the cost
17 - 34

(TPM)
Developing preventive maintenance
plans that utilize the best practices of
operators, maintenance departments,
and depot service
Training for autonomous maintenance
so operators maintain their own
machines and partner with
maintenance personnel
17 - 35
More on Maintenance
Supplemental Material
A simple redundancy formula
Problems with breakdown and preventive
maintenance
Predictive maintenance
Predictive maintenance tools
Maintenance strategy implementation
Effective reliability
17 - 36
Providing Redundancy
An Alternate Formula
The reliability of one pump =
The probability of one pump not failing = 0.8
P(failing) = 1- P(not failing) = 1 - 0.8 = .2
If there are two pumps with the same

probability of not failing
P(failure of both pumps) =
P(failure) pump #1 x P(failure) pump #2
P(failure of both pumps) = 0.2 x 0.2 = .04
P(at least one pump working) =
1.0 - .04 = .96
17 - 37
Problems With Breakdown

Maintenance
Run it till it breaks
Might be ok for low criticality equipment
or redundant systems
Could be disastrous for mission-critical
plant machinery or equipment
Not permissible for systems that could
imperil life or limb (like aircraft)
17 - 38
Problems With Preventive

Maintenance
Fix it whether or not it is broken
Scheduled replacement or adjustment of
parts/equipment with a well-established
service life
Typical example plant relamping
Sometimes misapplied
Replacing old but still good bearings
Over-tightening electrical lugs in switchgear
17 - 39
Another Maintenance Strategy

Predictive maintenance Using advanced
technology to monitor equipment and predict
failures
Using technology to detect and predict imminent
equipment failure
Visual inspection and/or scheduled measurements of
vibration, temperature, oil and water quality
Measurements are compared to a healthy baseline
Equipment that is trending towards failure can be
scheduled for repair
17 - 40
Predictive Maintenance Tools

Vibration analysis
Infrared Thermography
Oil and Water Analysis
Other Tools:
Ultrasonic testing
Liquid Penetrant Dye testing
Shock Pulse Measurement (SPM)
17 - 41
Predictive Maintenance
Vibration Analysis
Using sensitive transducers and instruments
to detect and analyze vibration
Typically used on expensive, mission-critical
equipmentlarge turbines, motors, engines or
gearboxes
Sophisticated frequency (FFT) analysis can
pinpoint the exact moving part that is worn or
defective
Can utilize a monitoring service
17 - 42
Predictive Maintenance Infrared

(IR) Thermography
Using IR cameras to look for temperature hot
spots on equipment
Typically used to check electrical equipment
for wiring problems or poor/loose connections
Can also be used to look for cold (wet) spots
when inspecting roofs for leaks
High quality IR cameras are expensive most
pay for IR thermography services
17 - 43
Oil and Water Analysis
Taking oil samples from large gearboxes,
compressors or turbines for chemical and
particle analysis
Particle size can indicate abnormal wear
Taking cooling water samples for analysis

can detect excessive rust, acidity, or
microbiological fouling
Services usually provided by oil vendors and
water treatment companies
17 - 44
Other Tools and Techniques
Ultrasonic and dye testing used to find stress
cracks in tubes, turbine blades and load
bearing structures
Ultrasonic waves sent through metal
Surface coated with red dye, then cleaned off, dye
shows cracks
Shock-pulse testing a specialized form of

vibration analysis used to detect flaws in ball or
roller bearings at high frequency (32kHz)
17 - 45
Maintenance Strategy
Comparison
ADVANTAGES
DISADVANTAGES
RESOURCES/
TECHNOLOGY
REQUIRED
Breakdown
No prior work
required
Disruption of
production, injury
or death
May need
labor/parts at
odd hours
Office copier
Preventive
Work can be
scheduled
Labor cost, may

replace healthy
components
Need to obtain
labor/parts
for repairs
Plant
relamping,
machine
lubrication
Predictive
Impending
failures can
be detected &
work
scheduled
Labor costs, costs

for detection
equipment and
services
Vibration, IR
analysis
equipment or
purchased
services
Vibration and
oil analysis of a
large gearbox
MAINTENANCE
STRATEGY
APPLICATION
EXAMPLE
17 - 46
Maintenance Strategy
Implementation
Percentage of Maintenance Time by Strategy
100%
80%
Predictive
60%
Preventive
40%
20%
Breakdown
0%
Year
10
17 - 47
Is Predictive Maintenance
Cost Effective?
In most industries the average rate of return is
7:1 to 35:1 for each predictive maintenance
dollar spent
Vibration analysis, IR thermography and
oil/water analysis are all economically proven
technologies
The real savings is the avoidance of
manufacturing downtime especially crucial in
JIT
17 - 48
Predictive Maintenance and

Effective Reliability
Effective Reliability (Reff) is an extension of
Reliability that includes the probability of failure
times the probability of not detecting imminent
failure
Having the ability to detect imminent failures
allows us to plan maintenance for the
component in failure mode, thus avoiding the
cost of an unplanned breakdown
Reff = 1 (P(failure) x P(not detecting failure))
17 - 49
How Predictive Maintenance

Improves Effective Reliability
Example: a large gearbox with a reliability of .90
has vibration transducers installed for vibration
monitoring. The probability of early detection of a
failure is .70. What is the effective reliability of
the gearbox?
Reff = 1 (P(failure) x P(not detecting failure))
Reff = 1 (.10 x .30) = 1 - .03 = .97
Vibration monitoring has increased the effective
reliability from .90 to .97!
17 - 50
Effective Reliability Caveats

Predictive maintenance only increases
effective reliability if:
You select the method that can detect the
most likely failure mode
You monitor frequently enough to have high
likelihood of detecting a change in component
behavior before failure
Timely action is taken to fix the issue and
forestall the failure (in other words you dont
ignore the warning!)
17 - 51

1. Well-trained personnel
2. Adequate resources
3. Proper application of the three
maintenance strategies
4. Continual improvement to improve
equipment/system reliability
17 - 52
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
17 - 53

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Maintenance and

PowerPoint presentation to accompany

Global Company Profile:

The Strategic Importance of

2014 Pearson Education, Inc.

2014 Pearson Education, Inc.

Orlando Utilities Commission

Maintenance of power generating plants

Every year each plant is taken off-line for 13 weeks maintenance

Each overhaul has 1,800 tasks and

OUC performs over 12,000 maintenance

Orlando Utilities Commission

Every day a plant is down costs OUC

Unexpected outages cost between

Preventive maintenance discovered a

The objective of maintenance

2014 Pearson Education, Inc.

Maintenance and Reliability

2014 Pearson Education, Inc.

2014 Pearson Education, Inc.

Maintenance and Reliability

Clean and lubricate

Overall System Reliability

Reliability of the system (percent)

Reliability of the process is

Product Failure Rate (FR)

Mean time between failures

Failure Rate Example

Failure Rate Example

2014 Pearson Education, Inc.

RS = [.9 + .9(1 - .9)] x [.8 + .8(1 - .8)] x .99

2014 Pearson Education, Inc.

Optimal point (lowest

Maintenance Cost Example

NUMBER OF MONTHS THAT

Average cost of breakdown = $300

Maintenance Cost Example

= (0)(.1) + (1)(.4) + (2)(.3) + (3)(.2)

Maintenance Cost Example

Expected number x Cost per

2014 Pearson Education, Inc.

Maintenance Cost Example

= (1 breakdown / month)($300) + $150 / month

Hire the service firm; it is less expensive

Increasing Repair Capabilities

Increasing Repair Capabilities

2014 Pearson Education, Inc.

Predict failures, prevent breakdowns,

Total Productive Maintenance

2014 Pearson Education, Inc.

Total Productive Maintenance

If there are two pumps with the same

2014 Pearson Education, Inc.

Problems With Breakdown

2014 Pearson Education, Inc.

Problems With Preventive

2014 Pearson Education, Inc.

Another Maintenance Strategy

Predictive Maintenance Tools