Engg ZC242-L8

ENGG ZC242
Maintenance & Safety

BITS Pilani
Pilani Campus
Girish Kant
Department of Mechanical Engineering
BITS Pilani
Pilani Campus
Asset and Spare Parts Management

Chapter 5, Lecture - 8
Learning Objectives
Financial, Human and Physical asset management
Conventional system of ordering materials

New approaches in Asset/Spares management
ENGG ZC242, Maintenance & Safety,

07/09/14, Lecture-8
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BITS Pilani, Pilani Campus
Asset Management Function

21st Century Organizations
in
Major functions of overall asset management
Financial asset management
Human asset management
Physical asset management

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Conventional Systems of
Ordering Spare Parts and Materials
Inventory control theories attempt to determine those
procedures, which will minimize the costs of:
i.
Running out of stock (Production loss due to stoppage,

cost of temporary hire etc.)
ii. Replenishing stock (per item, and inverse function of
order quantity)
iii. Holding
stock
(interest
on
capital,
insurance,
depreciation over a wide range of stock levels, wages,

light, heat, storage facilities, rent etc.)
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Economic Order Quantity

It is one of the simplest techniques, being followed for a
number of years in the industry

Economic order quantity is the optimum quantity is the
optimum quantity of material that can be ordered each time
so that the total cost of ordering and holding them remains a

minimum
Mathematically, the expression for the optimum order
quantity can be derived as follows

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Underlying Assumptions
The demand for the item is known
The lead time is known and fixed

The receipt of the order occurs in a single instant
Quantity discounts are not calculated as part of the model
Stockouts or shortage do not occur

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The following are the variables

Q = optimal order quantity
C= cost per order event (not per unit)
R = monthly demand of the product
P = purchase cost per unit
F = holding cost factor, the factor of the purchase cost that is used
as the holding cost (this is usually set at 10-15%, though
circumstances can require any setting from 0 to 1)
H = holding cost per unit per month (H = PF)

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EOQ formula
The single item EOQ formula can be seen as the minimum
point of the following cost function:
Total cost = purchase cost + order cost + holding cost, which
corresponds to:

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EOQ formula
Taking the derivative of both the sides of the equation and
setting equal to zero, one obtains
The result of this differentiation is:

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Solution
Solving for Q:

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Optimaum Balance
Fig 1. Finding an optimum balance in ordering

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Order Size Vs Cost
Fig:2 Graphical depiction of determining economic order quantity

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EOQ Model
Typical EOQ model

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Two-Bin System of Material

Procurement
The two-bin system is quite advantageous for ordering
everything from certain product inventory items (those that
have a relatively stable usage, now and in the foreseeable
future) to consumable supplies, including office products.
The two-bin system is exactly a system that requires two
storage containers.
Each container will hold a predetermined quantity of the
same material. The quantities may be the same, or one bin
may hold a larger quantity than the other.
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Simply, the two-bin system

follows:
works as
Two bins of items are created.
The first bin is stacked on top of, or in front of, the second
bin.
A recorder card is placed on the bottom of each bin.
Material is drawn from the first (or most accessible) bin only.

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Two-Bin System
When the first bin is empty, it is exchanged with the second
bin.
The recorder card is used to replace items in the first bin.
Material is then drawn from the second bin while waiting for
receipt of the material on order.

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Two-Bin System
When the new material arrives, it is placed in the empty bin, and
the reorder card is returned to its proper place in the bin.
The procedure is continued, with material being selected from one
bin until it is depleted. The material is then replenished through
use of the reordering card.
As long as the quantity of the material in each bin is the same, one
bin can be first depleted and the order placed for the
replenishment amount; then material can be depleted from the

second bin, and so forth.
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New Approaches in Effective

Asset / Spare Parts Management
Proper planning and control of spare parts inventory is a
critical component of an effective asset management

programme.
If the right parts are not on hand when needed for routine
maintenance or repairs, downtime is prolonged. If too many
parts are on hand, the enterprise absorbs excessive costs and
the overhead of carrying the inventory.

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Item Search
It can be difficult experience for a maintenance planner who is not
familiar with the item numbers to locate the appropriate part in a
computer system.
Nouns and qualifiers are a way of simplifying a search.
A noun is a simple, meaningful name for the item, for example
pump. The qualifier adds more detail, such as hydraulic.
A search on this combination will bring up all hydraulic pumps in
the stock item master file.

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Item Search
Relationships between production, assets and maintenance

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ABC and XYZ Analyses

Generally accepted 80:20 rule illustrates that approximately
80 percent of any storerooms volume is associated with only

20 percent of the items in inventory.
It is important to pay extra attention to that critical 20
percent.

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ABC and XYZ codes are commonly used to identify

those parts. The codes are assigned based on value or
quantity of stock movement, and each code will have an
associated upper limit.
Highest value parts, for example those that cost more
than Rs. 2.5 lakh each, can be assigned the ABC code of
A, and fastest moving parts can be assigned an XYZ
code of X.

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ABC analysis plot showing the accumulated value vs. Item nos
(not to scale) and volume
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Regular ABC curve

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Automatic Replenishment
Suggested reorder functionality creates requisitions based on
reorder points (ROP) and reorder quantities (ROQ) that are stored in
the inventory record.
Once inventory levels for a part fall below the reorder point
threshold, a suggested reorder is placed for the reorder quantity,

which in turn creates a requisition.
This saves time and prevents the delays and errors that can occur
with manual purchasing processes.
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Vendor Service Levels

Capturing supplier service level data within the inventory record
helps bring to light the most efficient, dependable, and costeffective vendors.
Preferred suppliers can be identified based on historical lead
times, pricing, quality, number of short or over-shipments, how
often goods are received damaged, frequency of back orders, and
other criteria.
Preference can be given to these vendors in the procurement
process.
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Multistores Capability
A multi stores capability enables an enterprise-wide view of
spare parts inventory that is stored at more than one
warehouse or off site by a third party
In a multi-plant environment or when maintenance
departments are distributed, visibility into inventory at the
various storerooms permits monitoring of parts availability
and service-level agreements across the enterprise as a
whole or on an individual basis

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Just-in-time (JIT)
JIT replenishment is a popular but sometimes controversial
concept of storing minimal inventory in the warehouse and

replenishing it only when and as needed just in time.
Although enabling significant carrying cost-savings, there are
risks involved.

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Just-in-time (JIT)
The best replenishment formulas cannot predict an emergency
breakdown, a vendor going out of business, a carrier going on
strike, or a sudden shortage of raw materials.
Being too conservative in stocking levels can result in the inability
to repair equipment in a timely manner or to keep the production
line running.
In asset management, the criticality of a part determines whether
it is a candidate for JIT.
A criticality code in the EAM inventory record can be used to

identify these items.
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Lean Manufacturing
This is a similar concept with a broader scope. Lean
manufacturing means doing more with less, cutting time to

market, and eliminating unnecessary processes.
This impacts maintenance and the storeroom by stressing
improved, efficiencies, better planning, and reduced costs
and running an operation with far less inventory.

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New Approaches
Purchasing through the Internet is an effective means of
acquiring indirect items and hard-to- find, inexpensive, or

short-notice spare and replacement parts.
Almost all OEMS, brokers, distributors, manufacturers, and
machine shops have web ordering capabilities.
Most companies can purchase materials online.

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MOBILE COMPUTING AND

USE OF BAR CODE TECHNOLOGY
This is being more popular in the advanced countries and is
gaining ground in India as well.
Warehouse personnel can conduct cycle counts without halting
operations by automating Parts identification with bar codes.
Wireless technology can capture inventory through bar codes

and transmit the data in real time to the corporate network.
Critical material availability is easier to track, resulting in timelier
asset management.
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Barcode Solution
Like a library system, the programme tracks the item, where it is,
how often it is used, and when it is due back.
Reporting capabilities offer information on inventory value, asset
locations, and equipment usage.
In addition, the radio frequency scanners (the industry uses with
the system) mean that the operator is not chained to the
computer.
One can communicate with the PC in real time from anywhere in
the tool room.
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Barcode Solution
Scanned data is sent to the database instantly, and information
about the status of both the equipment and the employees can
be accessed from the hand-held.
If, for example, the employee at the counter has an overdue
spare part or is not certified to use the item he is trying to sign

out, the PC will send that information to the scanner instantly
where it will be displayed on the screen.

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Improved Communication
The most significant aspect is that the plant has a consistent
method of tracking spare parts as well as consumables in its
entire site.
This will result in a change in purchasing habits. Orders are
no longer going out just because one spare part runs out of
an item.
Instead, operators can use the networked system to check for
the item's availability in other parts of the plant.
In addition, by forcing operators to catalog their spare parts,
the system will help to create an accurate count of its own
assets.
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New types of Smart Codes

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Aztec Code
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MaxiCode I
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I Maintenance & Safety,
ENGG ZC242,
07/09/14, Lecture-8
ShotCode
High Capacity
Color Barcode
(HCCB)
37
Hardware deployed in bard code
Bar code reader
Wireless equipment
Identity card printer

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Bar code printer
Ribbons
Bar code rolls
38
BITS Pilani
Pilani Campus
Maintenance Lubricants and their

Applications
APPENDIX I & APPENDIX- 2
Learning objectives
Purpose of lubricants
Societies who define the lubricant specifications
Various types of lubricants
Commercial grades of lubricants and their applications
Advantages of synthetic lubricants
Key definitions related to Lubricants
Stribeck curve in bearing lubrication

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Purpose
Keep moving parts apart

Reduce friction
Transfer heat
Carry away contaminants
Transmit power
Protect against wear
Prevent corrosion

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Societies and Industry Bodies which

Approve Lubricant Specifications
API-American Petroleum Institute

STLE-Society of Tribologists and Lubrication Engineers
NLGI-National Lubricating Grease Institute (Indian Chapter)
SAE-Society of Automotive Engineers (Very Common)
ILMA-Independent Lubricant Manufacturer Association
ISO-International Organization for Standardization
BIS-Bureau of Indian Standards

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Definition
A gas, liquid, or solid used to prevent contact of parts in
relative motion, and thereby reduce friction and wear.
In many machines, cooling by the lubricant is equally
important.
The lubricant may also be called upon to prevent rusting
and the deposition of solids on close-fitting parts.

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Various types of lubricants

Liquid Including Emulsions and Suspensions:
One of the most common ways is the type of base oil
used. Typically, lubricants contain 90% base oil (mostly
mineral oils) and less than 10% additives.
Vegetable oils or synthetic liquids such as hydrogenated

polyolefins, esters, silicone, fluorocarbons and many
others are sometimes used as base oils.

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Liquid Including Emulsions and

Suspensions
Additives deliver properties such as reduced friction and
wear, increased viscosity or less change of viscosity due to
change in temperature, resistance to corrosion and
oxidation, aging or contamination, etc.
Most common types of liquid lubricants:

Water: Water can be used on its own or as a major
component in combination with one of the other base oils.
In many of the cooling applications of fabric bearings used in
low speed, large diameter shafts water is being used.
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Liquid Including Emulsions

and Suspensions
Mineral oils: This term is used to encompass lubricating
base oil derived from crude oil. API designates several

types of lubricant base oil as follows
Group I: Saturates < 90% and sulphur >0.03% and viscosity index > 80 to < 120
Group II: Saturates >= 90% and sulphur < 0.03%, and viscosity index >= 80 to
<= 120
Group III: Saturates >= 90% and sulphur < 0.03%, and viscosity index >= 120

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and Suspensions
Extraction of lubcation oil from the refinery process line
as indicated in figure shows the lube blending process

in a batching plant, as blending with additives is an
important function to impart the required quality in the
lubricant such as temperature resistance, viscosity,
shear strengths etc.

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and Suspensions
Extraction
of mineral oils
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and Suspensions
Batch blending
of lube oil.
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and Suspensions
Vegetable (natural oil): These are primarily triglyceride
esters derived from plants and animals.
For lubricant base oil use of vegetable-derived materials
are preferred.
Some of the vegetable oils are palm oil, sunflower seed
oil and rapeseed oil from vegetables and tallow oil from
animal sources.
Many vegetable oils are often hydrolyzed to yield the
acids, which are subsequently combined selectively to
form specialist synthetic esters, generally used in
sewing machines, locks, type writers, etc.
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and Suspensions
Synthetic oils: These are the present trend in lubrication
although they are much more costlier than the mineral
oils. The basic characteristics is that they have high
viscosity indices (VI).
This is a dimensionless number.
Higher the number indicates lesser the change in
viscosity with temperature. Petroleum-based mineral
oils have less than 100 VI, whereas synthetic
hydrocarbons have 125 to 250 VI and silicones have VI
of 200 to 650 range.

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and Suspensions
Polyalphaolefins(PAO)
Synthetic esters
Polyalkylene glycols(PAG)
Phosphate esters
Alkylated naphthalenes
Silicate esters
Ionic fluids
Silicone

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Solid Lubricants
Graphite: Graphite structure (has layers of carbon atoms
separated at intervals of 0.6 nm (approximately). It has
high temperature withstanding capacity and as such the
powder can be added as an additive to base material to
form a paste.
Molybdenum disulphide.
Teflon: Used in pipe joints.

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Greases
Used in aggressive environments with temperature
ranging up to and where minimal maintenance is

envisaged.
Grease unlike lubricating oil does not need seals.
However, the disadvantage is that they do not

disseminate heat like circulating lubricating oil. (Figure
AI.6) shows the flow chart for the production of grease.
The thickener, one of the main constituent forms 5-20%.

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Pastes
These are similar to greases. They contain thickener.
fluid lubricant and high concentration of solid lubricants

like molybdenum disulphide. The solid lubricants are
blended with petroleum bases.
Such lubricants are used generally during assembly
and start-up operations. Due to its high coverage thin
films are needed.

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Additives
A large number of additives are used to impart performance
characteristics to the lubricants. The main families of
additives are:
Antioxidants
Anti wear
Metal deactivators
Corrosion inhibitors
Rust inhibitors
Friction modifiers
Extreme pressure
Antifoaming
Demulsifying/emulsifying
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Application
Automotive:
Petrol engine oil
Diesel engine oil
Two stroke engine oil
Automatic transmission oil

Gearbox fluids
Brake fluids

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Application
Hydraulic fluids:
Industrial
Hydraulic fluid
Compressor oils
Gear oils
Aviation:
Gas turbine engine oils
Piston engine oils
Marine:
Top engine oil
Crankcase fluids
Stern tube lubricants

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Comparison
Base Oils
Advantages
Limitations
Petroleum
Hydrocarbon
Very low cost
Synthetic
hydrocarbon
Better friction reduction and

lubricity
Better thermal oxidation
stability
Useful in elastomers and
plastic products
Wide variety of viscosity
indices
Application for low
temperatures
Can not withstand

wide temperature
ranges
Can not be used
beyond 125 degree C

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Comparison
Base Oils Advantages
Polyglycols
/Polyethers
Limitations
Better load-carrying capability

Becomes volatile
No formation of carbon residue
above
Good lubricity and film strength
Cannot be used
Wide range of viscosities
in all the plastics
Only synthetic lubricants having
and elastomers
water-soluble versions
due to
High-temperature stability with proper
compatibility
antioxidants
problems
Application in worm and worm wheel
as well as planetary gears

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Comparison
Base Oils
Synthetic
esters
Advantages
Minimum viscosity change with
temperature
Low volatility
Better load-carrying capacity
Applicable in low temperatures
Stability for oxidation
Good antiwear properties.
Good lubricity

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Limitations
Cannot be used in
all the plastics
and elastomers
due to
compatibility
problems
61
Comparison
Base Oils
Silicones
Advantages
Limitations
Applicable in wide range of Poor loadplastic and elastomers

carrying
Also used in control cables, Tendency to
gears and seals
migrate
High-viscous lubricants have
good damping properties
Good wetting capability
Good lubricity
Wide viscosity changes due to
temperature
Low Volatility

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Comparison
Base Oils
Advantages
Limitations
Perflurorinated used in hostile environment

high cost
polyether
Good thermal oxidation stability Reduced
(PFPE)
up to 600oC
effectiveness
Noninflammable
under
heavy
Low volatility and vapour
loads
pressure
Plastic
and
elastomer
capability
Nontoxic

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Comparison
Base Oils
Polyphenylethers (PPE)
Advantages
Limitations
Excellent radiation, chemical high cost

and acid resistance
Not suitable in
High thermal and oxidative
certain grades of
stability
plastics
and
Non spreading even in thin film
elastomers
Used in noble metal connector Not
suitable
application
below 10oC

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Comparison
Base Oils
Multiply
alkynated
cyclopentane
Advantages
Limitations
Combines the low vapour Not suitable for

pressure of PFPE with lubricity
above 250oC
and film strength of synthetic High cost
hydrocarbons

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Performance of Synthetic
Lubricants in Varied Temperature

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BITS Pilani
Pilani Campus
Key Definitions in Lubrication

APPENDIX - II
Definitions in Lubrication
Apparent Viscosity
The viscosity of lubricant measured at a given shear rate
for cases where viscosity is dependent on shear rate.
Asperities
Microscopic projections from a surface particularly on a
sliding or a bearing surface which result from machining
operation or finishing treatment. They are the primary
causes of friction if there is insufficient film of lubrication
between sliding surfaces.

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Base Number
A measure of basicity (alkalinity) of a lubricant, which is
obtained by reacting it with acid of known strength until
neutralization.
Boundary Lubrication
The condition in which lubricant is present between two
sliding surfaces, but in insufficient quantity and provides a
broken film. Generally, this occurs when the relative sliding
speed of two surfaces is less than 0.1 cm/s.

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Bright Stock
High viscosity base oil made from the bottoms of the
vacuum distillation column, by deasphalting and dewaxing.
Centipoise
A component unit of viscosity, equal to one-hundredth of
the unit of viscosity, Poise.
Centistokes
A unit of viscosity commonly used when a liquid falls
through a capillary tube under its own weight. This is
related to centipoise by the equation:
Centistoke x Density = Centipoise
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Cloud Point
As oil is progressively cooled the temperature at which
wax starts to separate from the oil. producing cloudy
appearance.
Coefficient of Friction
This measures degree of friction between two surfaces.
This is a function of a normal force acting on the body
which is moving or sliding, surface area of contact, velocity
of sliding body, quality of surface interface, and
temperature at the interface.

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Dispersant
An engine oil additive whose primary function is to hold in
suspension solid and liquid contaminants, thereby passivating
them and reducing engine deposits and at the same time
sludge deposition is reduced. Ashless dispersant is a polymerbased material, which are particularly useful in holding water
in suspension in gasoline engine oils, as well as suspending
solid particles.
.

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Extreme Pressure
Whenever surfaces are sliding against each other under
heavy loads like hypoid gears, the lubricants needs to
have properties to withstand such pressures.
Therefore, additives are added to the base stocks,
thereby, lubricants can react with asperities of the metal
surface and forms compounds, which can readily shear
without having to disturb the base metals.

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Film Strength
Property of lubricant indicating its effectiveness to lubricate
under boundary conditions. This is enhanced by addition
of long chain polar molecules.
Flash Point
The lowest temperature at which the vapours from heated
products will ignite when exposed to air.

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Kinematic Viscosity
This is a measure, which shows the liquid's resistance to
flow under the force of gravity. This is nothing but
(absolute viscosity)/(density).
Mass Spectrometer
This is an instrument wherein the spectrum is formed by
passing ionized fragments of petroleum products in a
magnetic field. From the spectrum the constituents of
hydrocarbons are evaluated either by photographically or
by electronically.
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SAE Viscosity
It is a classification of viscosity of lubricants by Society for
Automotive Engineers (SAE). Winter grade oils have suffix
"W" such as SAE 10W, where as summer grade oils do
not have any suffix. They represent viscosity of oil at
100C. They are merely represented as SAE 40.
If an oil is multi grade, i.e. it can be used both in winter as
well as in summer, the specification will be SAE 10 W-30.

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Fluid film lubrication
It is the lubrication regime in which through viscous
forces the load is fully supported by the lubricant within
the space or gap between the parts in motion relative to
one another (the lubricated conjunction) and solidsolid
contact is avoided.

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Hydrostatic lubrication is when an external pressure
is applied to the lubricant in the bearing, to maintain
the fluid lubricant film where it would otherwise be
squeezed out.
Hydrodynamic lubrication is where the motion of
the contacting surfaces, and the exact design of the
bearing is used to pump lubricant around the bearing
to maintain the lubricating film. This design of bearing
may wear when started or stopped, as the lubricant
film breaks down.

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Elastohydrodynamic lubrication
The opposing surfaces are separated, but there occurs
some interaction between the raised solid features
called asperities, and there is an elastic deformation on
the contacting surface enlarging the load-bearing area
whereby the viscous resistance of the lubricant becomes
capable of supporting the load.

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Boundary lubrication
The bodies come into closer contact at their

asperities; the heat developed by the local pressures
causes a condition which is called stick-slip and some
asperities break off.
At the elevated temperature and pressure conditions
chemically reactive constituents of the lubricant react
with the contact surface forming a highly resistant
tenacious layer, or film on the moving solid surfaces
(boundary film) which is capable of supporting the load
and major wear or breakdown is avoided.
Boundary lubrication is also defined as that regime in
which the load is carried by the surface asperities rather
than by the lubricant
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Spectroscopy
This is an analytical technique whereby any type of radiation
whether it be visible, x-ray, infrared, ultraviolet, microwave is
split up into a spectrum and from the spectral indication
(Which is formation due to different wavelength of radiation),
presence of different contaminants are measured in a
lubricant.

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Thixotropic
It is a definition of a process whereby grease becomes
liquefied when subjected to shear force.
Total Acid Number
It is the content of acid in a lubricant obtained by titration
with alkali up to a pH value of 7.
Total Base Number
Total alkalinity in a lubricant obtained by titration with acid
up to a pH value of 7.

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Tribology
Composite scientific study of friction, wear and lubrication
so as to minimize the harmful effects upon machinery.
Viscosity Index
It is a representation in a scale of 0-100 the viscosity of
lubricant varying under temperature.
Viscosity Modifier
Polymer additive which improves viscosity of an oil
thinning due to temperature.

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Inhibitor
A chemical substance, which prevents any unersirable
reaction.
Oiliness agent
A polar additive used for improving the lubricity of
mineral oil.
Passivator
An additive which reacts with metallic surfaces to
prevent any corrosion by the lubricant or to prevent
oxidation.
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Polar molecules
In chemical, the molecules have one end electrically
positive and the other end negative. Polar molecules are
attracted to surfaces and many additives consist of polar
molecules.
Pour point
A test, which indicates the gelling tendency of paraffin
based oils at low temperature.
Silicones
Organosiloxane polymers used as stable synthetic
lubricant.
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Thanks

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87

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ENGG ZC242

Maintenance & Safety

Asset and Spare Parts Management

Conventional system of ordering materials

ENGG ZC242, Maintenance & Safety,

Asset Management Function

Major functions of overall asset management

Financial asset management

Human asset management

Physical asset management

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Running out of stock (Production loss due to stoppage,

ii. Replenishing stock (per item, and inverse function of

depreciation over a wide range of stock levels, wages,

Economic Order Quantity

number of years in the industry

so that the total cost of ordering and holding them remains a

quantity can be derived as follows

The lead time is known and fixed

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The following are the variables

H = holding cost per unit per month (H = PF)

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The result of this differentiation is:

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ENGG ZC242, Maintenance & Safety,

Fig 1. Finding an optimum balance in ordering

Order Size Vs Cost

Fig:2 Graphical depiction of determining economic order quantity

Typical EOQ model

Two-Bin System of Material

Simply, the two-bin system

Two bins of items are created.

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When the first bin is empty, it is exchanged with the second

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replenishment amount; then material can be depleted from the

New Approaches in Effective

critical component of an effective asset management

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ENGG ZC242, Maintenance & Safety,

Relationships between production, assets and maintenance

ABC and XYZ Analyses

80 percent of any storerooms volume is associated with only

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ABC and XYZ Analyses

ABC and XYZ codes are commonly used to identify

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ABC and XYZ Analyses

ABC and XYZ Analyses

Regular ABC curve

threshold, a suggested reorder is placed for the reorder quantity,

Vendor Service Levels

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concept of storing minimal inventory in the warehouse and

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A criticality code in the EAM inventory record can be used to

manufacturing means doing more with less, cutting time to

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acquiring indirect items and hard-to- find, inexpensive, or

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MOBILE COMPUTING AND

Wireless technology can capture inventory through bar codes