Maintenance and Safety:

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

ENGG ZC242, Maintenance & Safety,

Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

AGILE MAINTENANCE, SERVICE

PRACTICES
What is Agility?
Agility is defined as an attribute of a system or
organization to be nimble and active to manage the
uncertainties. The terminology apples to production,
operation, marketing and also maintenance function.

ENGG ZC242, Maintenance & Safety,

Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

AGILE MAINTENANCE, SERVICE

PRACTICES
There are three initiatives that every maintenance and
service organization can undertake which will improve
its ability to handle operational threats and the
unexpected:
i.

Consolidation and securing of asset information is an

important aspect

ii.

Develop an inside-out view of resources and commitments

iii. Enhance service supply chain resilience

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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.

ENGG ZC242, Maintenance & Safety,

Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

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.

ENGG ZC242, Maintenance & Safety,

Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

Measure of Agility
The same can be numerically expressed with the
collection of data on
i.

percentage of disruptions faced in the value chain

over a period of time,

ii. its cost implications,

iii. the cost of providing facilities to improve the agility and
iv. its percentage to disruption cost etc.

ENGG ZC242, Maintenance & Safety,

Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

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.

ENGG ZC242, Maintenance & Safety,

Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

Profitability A measure of
reliability

Return on net asset represented as a percentage for an organization

which follows reactive maintenance
ENGG ZC242, Maintenance & Safety,
Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

PROFITABILITY
A MEASURE OF RELIABILITY

Return on net asset represented as a percentage for an organization

which follows improvement in reliability
ENGG ZC242, Maintenance & Safety,
Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

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.

ENGG ZC242, Maintenance & Safety,

Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

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.
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Involving and Taking the

Management to Confidence
This is a very important step, as management needs to
be convinced thoroughly regarding the profit-driven
reliability concepts and the measures required to
achieve the same.
They need to be provided with presentations on the
benefits showing concrete examples and simulations.
Like quality, the need to involve and train personnel
across the organization has to be emphasized.

BITS Pilani, Pilani Campus

Definition of Specific Reliability

Improvement Measures
The third step is to define the specific reliability
improvement that will deliver the desired competitive
advantage (such as increased available capacity).
Typically, reliability improvements provide competitive
advantages that must be converted into profitability.
Successful completion of the third step is an essential
for ensuring that the reliability improvement will deliver
the business benefit.

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Definition of Specific Reliability

Improvement Measures
This step requires an understanding of how reliability
delivers competitive advantages and may require
computer simulation tools.
Some of the reliability improvement measures have
been discussed earlier, such as implementation of
predictive and other tools like:

ENGG ZC242, Maintenance & Safety,

Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

Predictive Tools

Condition monitoring through vibration analysis

Thermography
Motor condition monitoring
Lubricant analysis, and
On line nondestructive inspection to improve quality
(Example: Continuous ultrasonic inspection of pipe
welds)

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Predictive Tools

Autonomous maintenance to carry out day to day

maintenance
Introduction of redundancy: redundancy through
introduction of parallel units either as active or
standby.

Other reliability improvement measure such as vendor

development is also explained below.

ENGG ZC242, Maintenance & Safety,

Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

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.

BITS Pilani, Pilani Campus

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.
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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

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MEASURING AND EVALUATING THE

EFFECTIVENESS OF CMMS
CMMS being a powerful tool in the efficient
management of maintenance operations in the present
scenario its effectiveness measurement is one of the
important topics. Basically, there are eight major factors
that should be considered. Careful examination of these
factors during the evaluation process will help ensure
ongoing CMMS success.

ENGG ZC242, Maintenance & Safety,

Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

CMMS

Comprehensive Maintenance Management Functionality

Extensive Management Reporting Capabilities
Preventive Maintenance Procedure Library
Data on Regulatory Compliance
Multiple System Interfaces
Reliability-Centred Maintenance Integration
Microsoft Windows Environment
Proven Expertise of the Solution Provider and On-Going
Support

ENGG ZC242, Maintenance & Safety,

Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus

Thanks

ENGG ZC242, Maintenance &

Safety, Lecture-18, 02/11/2014

BITS Pilani, Pilani Campus