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ENGG ZC242
BITS Pilani
Pilani Campus
Girish Kant
Department of Mechanical Engineering
BITS Pilani
Pilani Campus
Maintenance Effectiveness
CHAPTER 12, Lecture - 18
Learning Objectives
Agile maintenance and service practices
Measure of Agility
Profitability- a measure of reliability
Profit driven reliability
Measuring and evaluating the effectiveness of CMMS
ii.
Cost justification
The labor cost associated with manual data collection
on production lines by production personnel and the
manual compilation of the data to calculate OEE are
eliminated with an automated system.
The accuracy and integrity of the source data is
significantly improved.
Measure of Agility
How would the current level of agility is measured?
Do the managers focus on cost and efficiency at the
expense of improving your ability to adjust quickly in
emergencies?
Is the business vulnerable to security threats and
unexpected events either in-house or in your service
network and supply chain?
In fact, in many of the defense undertakings, overseas
supplies of spare parts get disrupted due to embargos.
Such organizations need to develop alternate sources
of supply within the country.
Measure of Agility
The same can be numerically expressed with the
collection of data on
i.
Profitability A measure of
reliability
If we plot a graph with X axis representing the years
and Y axis representing the percentage of net profit
after tax with respect to net asset (RONA) then that will
represent profitability of the organization over the years.
If in the same graph, percentage of cost of reliability
improvement with respect to overall sales is
represented then the same will make a good
representation of the organization's performance index,
namely the business performance in regard to scientific
improvement in maintenance.
Profitability A measure of
reliability
PROFITABILITY
A MEASURE OF RELIABILITY
Profit-Driven Reliability
Profit-driven reliability (PDR) is a six-step process using
reliability-modeling tools that utilizes reliability's
competitive advantage.
Reliability can also be predicted with the aid of
computer simulation using an appropriate algorithm,
which varies according to the application.
Determination of PDR
Candidates
The first step in PDR is identifying the financial
variables (such as sales, costs, expenses, or assets)
that have the largest impact on profitability. These
high-impact variables are known as PDR candidates.
If PDR candidates have not already been identified by
financial analysts, they can be identified using
information from a financial statement.
The easiest approach is to calculate the change in
each financial variable needed to produce a specified
gain in profitability.
Completion of the first step is crucial to selecting a
reliability improvement that will maximize profitability
impact.
BITS Pilani, Pilani Campus
Predictive Tools
Predictive Tools
Vendor/Service Provider
Development
Development of alternate sources of service
providers or vendors in case of failure in the value
chain, and developing vendors not based on lowest
price but on their capability to meet the exigencies
with quality etc.
Such measures cost the company and a percentage
of such expenses to the sales effected can be
arrived and the same can be plotted over the years.
Relationship of Profitability
and Reliability through Metrics
The fourth step is to link reliability's competitive
advantages to profitability by formalizing the metrics
and identifying the procedures to accomplish this.
Reliability improvements may offer competitive
advantages with high profitability potential. But the
initiative cannot succeed if the entire organization fails
to follow the dictum.
Converting reliability's competitive advantages into
profitability requires effectively communicating the
improvement to individuals who are capable of acting.
Basically, the PDR project consists of step 3 and step 4.
BITS Pilani, Pilani Campus
Relationship of Profitability
and Reliability through Metrics
The fifth step is integrating the desired reliability
improvement. Integration of Reliability Improvement
with the Key Departments like Purchase,
Engineering, Production etc.
The sixth step is Management Reporting
CMMS
Thanks