MAINTENANCE AND SPARE PARTS MANAGEMENT

Second Edition

P. GOPALAKRISHNAN A.K. BANERJI

MAINTENANCEAND

SPARE PARTSMANAGEMENT

Delhi-1100922013

Maintenance and Spare partS ManageMent

Second Edition

P. GopalakrishnanFormer Professor of Administrative Staff College of India

HyderabadFormer U.N. Advisor on Inventory Management

A.K. BanerjiFormer Professor of Administrative Staff College of India

Hyderabad

Maintenance and Spare partS ManageMent, Second editionP. Gopalakrishnan and A.K. Banerji

© 2013 by PHI Learning Private Limited, Delhi. All rights reserved. No part of this book may be reproduced in any form, by mimeograph or any other means, without permission in writing from the publisher.

iSBn-978-81-203-4739-7

The export rights of this book are vested solely with the publisher.

ninth printing (Second edition) ... ... ... august, 2013

Published by Asoke K. Ghosh, PHI Learning Private Limited, Rimjhim House, 111, Patparganj Industrial Estate, Delhi-110092 and Printed by Raj Press, New Delhi-110012.

DedicationThis title is dedicated to the fond memory of the my only son G. Ganapathy Ram, 17 years old, 180 cm tall, brilliant, weighing 60 kg who died on 30 July, 1986, due to medical negligence, wrong diagnosis, wrong operation, callous post operative treatment and lack of timely proper medical help. The integrated policy cases have been named after him. I also dedicate this book to my son-in law Ranganath Narasimhan, who passed away on 28 January, 2007 due to cancer. He persuaded me to update this book, constantly reminding me that my six decades experience should be passed on to the younger generation. He was one of the popular active person in Coimbatore region, associated with several NGOs, blood banks, humour club, Rotary club and several non profitable and religious forms. He was the founder Chairman of ADWISE Advertising—an accredited advertising company.

P. Gopalakrishnan

Contents v

v

Contents

Preface ............................................................................................................... xixPreface to the First Edition ................................................................................ xxiAcknowledgements ........................................................................................... xxiii

Section i core MAintenAnce

1. Maintenance Management and challenges ............................ 3–15

Relevance of Maintenance 3 Asset Management 4 The Role of Railways, Coal and Power 4 Failures and Maintenance 5 Maintenance: An Overview 5 Upgraded Technology 6 Good Maintenance Services 7 Problems of the Plant Manager 8 Situational Failures 9 Change in Environment 9 Factors Involved in Functioning of Maintenance 10 Design of Maintenance Systems: The Challenge 10 Automation and Maintenance 11 FactorsAffectingMaintenanceEfficiency 12 Maintenance Planning 13 BenefitsofMaintenancePlanning 14

2. Maintenance objectives and Functions ................................ 16–23 Maintenance Objectives 16 Maintenance Costs 17 Down Time Costs 18

vi Contents

Responsibilities of Operators 19 Responsibilities of Maintenance Staff 20 Maintenance A–Z Functions 21

3. Maintenance organisation ..................................................... 24–36 Maintenance Engineering 24 Organisational Prerequisites 25 Esprit De Corps—Team Spirit 26 Span of Control 27 Subordinates Development 27 Competence / Skills Utilisation 29 Hierarchical Levels 30 ConflictManagement 30 Factors for Effectiveness of Maintenance 32 Objectives of Organisation Design 33 Types of Maintenance Organisation 34

4. Maintenance Systems .............................................................. 37–50 ClassificationofMaintenanceSystems 37 Breakdown Maintenance 37 Routine Maintenance 38 Planned Maintenance 40 Preventive Maintenance 42 Reliability 43 Predictive Maintenance 45 Corrective Maintenance 45 Design Out Maintenance 46 Total Productive Maintenance 46 Japanese 5S 47 Contract Maintenance 48 Examples of Contract Maintenance 49 Cannibalisation 50

5. Design of Maintenance Systems ............................................. 51–63 InfluencingFactorsonSystems 51 Criticality Determination 52 Downstream Effects 54 Age of Plant and Technology 56 Skill Availability 56 Bath Tub Curve 57 Maintenance Support Facilities 58 Operating Environment 58 Maintenance System Design Optimisation 61

Contents vii

6. condition Monitoring ............................................................. 64–72 Need of Condition Monitoring 64 Plant Availability 65 Predicted Trend 67 Increased On-stream Plant Availability and Reliability 67 Plant and Personnel Safety 68 Optimal Maintenance Cost 68 Methods of Condition Monitoring 69 Choice of Equipment for Condition Monitoring 69 Vibration Monitoring System 70 Condition Based Maintenance 71

7. non-destructive testing (nDt) .............................................. 73–81

NDT Concept 73

Non-destructive Testing Methodologies 74 Vibration Monitoring 76 Soap and Fibre Optics 76 Diagnostic Instruments A–Z 77 Lightning Fast Material Test 79

8. total Planned Maintenance (tPM) ..................................... 82–100 Planning System Components 82 Facility Register 84 Equipment Record Card 85 Maintenance Schedules 87 Principles of Scheduling 87 Scheduling Process 89 WorkSpecifications 89 Maintenance Records and Documentation 91 History Record Card 91 Defect Analysis and Down Time Records 92 Maintenance Work Order 94 Performance Report 94 Information Control Analysis 96 Control System for Planned Maintenance 98

9. Maintenance turnaround .................................................. 101–109 Outage Management 101 Turnaround 102 Turnaround Manager 103 Opportunity Maintenance 105 Network Analysis 105 Basic Steps in a Project 106

viii Contents

Section ii relAteD AuxiliAry FunctionS

10. inspection and lubrication ................................................ 113–121 Why Inspection? 113 Frequency of Inspection 114 Planning for Inspection 115 Inspection and Testing Facilities 116 Lubrication 117 Lubrication Programme and Planning 118 Tribology 121

11. calibration and Quality ...................................................... 122–126 Standards of Calibration 122 Calibration System 123 Calibration Documentation 124 Maintenance Quality 125 Innovation Fountainhead 125 Building up of Quality 126

12. Maintenance training and Hr .......................................... 127–137 Need for Maintenance Training 127 Planning Background 128 Training Levels 128 Training Methodology 131 Maintenance Incentives 133 Incentives in Maintenance 134 Incentive Administration 136

13. Safety and Maintenance ...................................................... 138–150 SignificanceofSafety 138 Potential Hazards 139 Safety Principles 140 Hot Work Safety Permit 142 Fault Tree Analysis 143 Safety Symbols 145 First Aid Kit 146 Safety Culture A–Z Issues 146 In the Wake of a Quake 147 Unsafe Metros 148 Safety Norms Switched Off 149 Elevated Risks 149 Food Safety 150

Contents ix

14. computers and Maintenance ............................................. 151–158 Computer System 151 Computer Application A–Z Areas 152 Maintenance Costs 154 CostBenefit 155 Management Information System (MIS) 156 Maintenance Budget 157

15. Productivity and industrial engineering .......................... 159–170 Productivity Concepts 159 Work Study 160 Method Study 161 Recording Techniques 162 Ergonomics 164 Loads and Controls 168 Work Study and Ergonomics 169 Ergonomics and Maintenance 169

16. Activity Sampling for Work Measurement ...................... 171–180 Snap Reading 171 Normal Distribution 172 Random Timings 173 Areas under Normal Distribution 174 Applications of Activity Sampling 176 Advantages of Snap Reading 176 Disadvantages of Snap Reading 177 Work Measurement 177 Time Study 179

17. energy Saving by Maintenance ......................................... 181–193 Need for Energy Saving 181 Issues of Maintenance and Energy 182 Building Problems 183 Boiler and Steam Distribution 184 Boiler Maintenance 185 Air Compressor System 186 Heating Ventilation and Air Conditioning 187 Conservation Guidelines 188 Electrical System 189 Lighting System 190 Cyclic Replacement of Lamps 191 Economising on Light 192 Light Source Characteristics 193

x Contents

18. Facilities investment Decisions (FiD) and life cycle costing (lcc) ................................................... 194–222 Asset Management 194

Decision Varieties and FID 194

FactorsInfluencingFacilitiesInvestmentDecisions(FID) 195 Selection/Replacement Problems 197 Economic Life Concept 197 Optimum Replacement Models 198 Time Value of Money 200 Capital Recovery Factor 201 Effect of Taxes and Depreciation 203 Cash Flow Illustration 203 Depreciation 204 Economic Analysis 206 Life Cycle Costing (LCC) 207 Aim of LCC 211 Application of LCC 212 Costing of Alternatives 214 A–Z of LCC 218

19. evaluation of Maintenance Function ................................ 223–233

Need for Evaluation 223 A–Z Maintenance Challenges 224 Expectations: A–Z Parameters 225 Background of Maintenance 226 Equipment Discard Policy 226 MBO/SWOT and Managerial Styles 227 Evaluation Process of Plant Engineering 228 Evaluation A–Z Subjective Methods 229 A–Z Objective Criteria 230 Maintenance: Futuristic Scenario 232

Section iii core SPAreS iSSueS

20. indian Spares Scenario ....................................................... 237–244

Capacity Utilisation 237 A–Z Financial Aspects of Spares 237 Spares Management A–Z Issues 240 Necessary Information 242 Initial Spares Provisioning 244

Contents xi

21. Spares Practices Survey ...................................................... 245–256 Research Methodology 245 Diagnostic Study 246 Organisational Aspects 246 Technology and Capital Equipment 247 Overhauling and Discard Policy 248 Obsolescence 249 Initial Provisioning 250 CategorisationandCodification 250 Standardisation 251 Lead Time Analysis 251 Requirement Planning 252 Selective Control and Stock Levels 252 Spares Bank 253 Import Substitution 254 Spares Information System 254 High Inventories: A–Z Causes 255 Research Survey Summary 256

22. cost reduction in Spares .................................................... 257–265

DefinitionofSpareParts 257 Spares A–Z Features 257 Categorisation of Spares 258 Financial Considerations 259 Choice of Equipments 259 Cost of Ordering 260 Inventory Charges 260 Cost of Stockout 261 A–Z Cost Reduction of Spares 261 Lead Time Reduction 262 IdentificationbyCodification 263 Value Analysis 264 Variety Reduction by Standardisation 264 Spares Bank 265

23. Music-3D-Beyond cost criticality Method ..................... 266–273 Limitations of ABC Analysis 266 ABC Analysis 266 Vein-Ved Analysis 268 Spares Intelligence 268 MUSIC-3D Concept 269 Interpretation of MUS1C-3D 270 A–Z Advantages of MUSIC-3D 270

xii Contents

Other Selective Approaches 271 Service Level 272

24. inventory control of Spares ............................................... 274–281

Objectives of Control 274 Stockout Cost 275 Ordering Charges 276 Service Level 277 Economic Order Quantity 278 Review Period 280

25. Maintenance Spares ............................................................ 282–287 Concept of Maintenance Spares 282 Poisson Pattern 283 Stock Levels 283 Service Level 284 Central Stocking 285 Illustration of Stock Levels 286

26. Simulation for Spares control ........................................... 288–293 Planning and Simulation 288 Simulation Method 288 Two-Bin System 289 Illustration of Simulation 289 Illustration on Initial Ordering 291 Use of Poisson Pattern 292

27. insurance Spare Parts ......................................................... 294–299 Typical Insurance Parts 294 Stocking Policies 295 Financial Aspect 296 Spares Bank 297 Cost-BenefitAnalysisofStocks 298

28. rotable Spares ..................................................................... 300–307 Concept of Rotables 300 Financial Considerations 300 Queuing Approach 301 Application of Queuing Model 302 Solutions to Queuing Questions 302 Queueing and Rotables 303 Policy for Rotables 304 A–Z Issues in Queuing 306

Contents xiii

29. overhauling and Pert (Programme evaluation and review technique) .............................................................. 308–315 Overhauling Spares Concept 308 Requirement of Overhauling Spares 308 PERT’s Concept 310 Details of PERT 313 Procedure for PERT 313 Exercise on PERT 314

Section iV relAteD iSSueS on SPAre PArtS

30. reliability and Quality ........................................................ 319–326 Need for Reliability 319 Concept of Reliability 319 Failure Analysis 320 Failure Parameters 321 Mean Time between Failure (MTBF) 322 Mean Time to Repair (MTTR) and Log Normal Distribution 323 Bath-Tub Curve 324 Inspection of Spares 325 Inspection Methods 325 Inspection Infrastructure 326

31. Procurement of Spares ........................................................ 327–334 Buying Relevance 327 Right Quantity 327 Right Time 328 Right Price 329 Right Quality 330 Right Source 330 Import Substitution 331 Right Contracts: A–Z Aspects 332 Delivery/Transportation 333 Right Systems 334

32. logistics and Warehousing ................................................ 335–342 Storage Objectives 335 Physical Storage: A–Z Ways 336 Preservatives: A–Z Ways 336 Receipts Management 338 Documentation of Outputs 338 ValuationandVerification 339

xiv Contents

Multiple Warehouses 340 Logistics Management 340 Business Logistics 341

33. Pricing and Marketing of Spares ....................................... 343–353 Pricing 343 Pricing: A–Z Factors 344 Pricing Strategies 345 Market Skimming Strategies 346 Forecasting and Planning 347 Order Processing 349 Distribution of Spares 350 Spare Parts Sales: A–Z Problems 350

34. ASS (After Sales Service) .................................................... 354–362

Image of After Sales Service 354 Servicing Goals 355 Professionalising Customer Service 356 Organisation and Manuals 356 Cost of Servicing 358 Market Intelligence 358 Legal Aspects and Planning ASS 359 Spurious Spares and A–Z Problems 360

35. Multiechelon Distribution ................................................... 363–371

Multiechelon Concepts 363 Multiechelon Characteristics 364 ClassificationofMultiechelonProblems 365 Inter-Echelon Interactions 365 Parameters in Multiechelons 366 Mathematical Approach 367 Mathematical Derivation 368 Optimum Stock Levels 370

36. Management of obsolescence ............................................ 372–379

Obsolete Spares Problems 372 SOS Items Concept 373 Obsolescence A–Z Issues 373 Solutions to Obsolescence 375 Movement Analysis 376 XYZ Analysis 377 Disposal of Obsolete Items 378

Maintenance And Spare PartsManagement

Publisher : PHI Learning ISBN : 9788120347397Author : P. Gopalakrishnan,A. K. Banerji

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