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ADAMA UNIVERSITY School of Engineering and Information Technologies Investigation into Effectiveness of Agricultural Machinery Maintenance Management: The Case of Wonji Shoa Sugar Factory Thesis Submitted to the School of Engineering and Information Technologies in Partial Fulfillment of the Requirements for the Award of the Degree of Masters of Science in Agricultural Machinery Engineering By Amana Wako Advisor: Dr.-Ing Zewdu Abdi Co-Advisor: Dr. Simie Tola Department of Mechanical and Vehicle Engineering June 2010 Adama ˙ T ¿ > y c = + A D A M A U N I V E R S I T Y

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ADAMA UNIVERSITY School of Engineering and Information Technologies Investigation into Effectiveness of Agricultural Machinery Maintenance Management: The Case of Wonji Shoa Sugar Factory Thesis Submitted to the School of Engineering and Information Technologies in Partial Fulfillment of the Requirements for the Award of the Degree of Masters of Science in Agricultural Machinery Engineering By Amana Wako Advisor: Dr.-Ing Zewdu Abdi Co-Advisor: Dr. Simie Tola Department of Mechanical and Vehicle Engineering June 2010 Adama T > y ` c=+ ADAMAU N I VERSITYid1101687 pdfMachine by Broadgun Software- a great PDF writer!- a great PDF creator! - http://www.pdfmachine.com CANDIDATES DECLARATION I hereby declare that the work which is being presented in this thesis entitled Investigation into EffectivenessofAgriculturalMachineryMaintenanceManagement:TheCaseofWonjiShoa Sugar Factory in partial fulfillment of the requirements for the award of the degree of masters of scienceinAgriculturalMachineryEngineeringisanauthenticrecordofmyownworkcarried outSeptembertoApril2010underthesupervisionofDr.-IngZewduAbdiDepartmentOf Mechanical And Vehicle Engineering, Adama University, Ethiopia. Thematterembodiedinthisthesishasnotbeensubmittedbymefortheawardofanyother degreeordiploma.Allrelevantresourcesofinformationusedinthisthesishavebeenduly acknowledged. Amana wako ____________April 20, 2010 Candidate Signature Date This is to certify that the above declaration made by the candidate is correct to the best of my knowledge and belief. This thesis has been submitted for examination with our approval. Zewdu Abdi (Dr.-Ing) ______________April 20, 2010 1. Advisors SignatureDate Simie Tola (Dr.) ____________April 20, 2010 2.Co-Advisors SignatureDate ADAMA UNIVERSITY School of Engineering and Information Technologies Department Of Mechanical and Vehicle Engineering Investigation into Effectiveness of Agricultural Machinery Maintenance Management: The Case of Wonji Shoa Sugar Factory. By-Amana wako Approved by Board of Examiners: ________________ ________________ ____________ Chairman/ Department SignatureDate ________________ ____________________________ Advisor SignatureDate ________________________________ ____________ Co-AdvisorSignature Date ________________ ________________ ___________ Examiner (Internal) SignatureDate ____________________________________________ Examiner (External) Signature Date T > y` c= + ADAMAU N I V ERSITYi ACKNOWLEDGEMENTS Iwould like to express a sincereand special Thank tomy advisor Dr.-IngZewdu Abdi for his continuoussupport,guidance,creativeideas,thoroughcorrectionandsuggestionsgreatly contributed in doing this thesis. Iwouldliketothankalsomyco-advisorDr.SimieTola.SpecialthankstoprofessorChandraRao for his indispensable help in editing, thorough correction andcontinuous guidance in doing this thesis. I wish also to express my genuine appreciation to Assistant Professor Kasim Kimo for his valuable advice and comment in doing this thesis. Iwouldliketoacknowledgewonjishoasugarfactory(Enterprise)managementandworkers who insisted me to collect necessary data.Especial thanks to Ato Yohannes Tamir (head of field equipmentservicedepartment),AtoHabtamuAwugichew(fieldequipmentservicedepartment planningandinspectionhead),AtoEsayasMadebo(wheeltractorsectionhead),AtoTaddese Bekele(Heavyequipmentsectionhead),AtoHelisoHeramo,andallotherworksofenterprise for their unreserved assistance in accessing data for the study. I would like to thank also Ato Mekonnin Liban co-ordinator of Vehicle Engineering section and Ato Assefa Marga for their encouragement both in moral and material. My gratitude goes to my brothers Ato Muktar Husen and Ato Jemal Kedir for their indispensable helpand encouragement in all aspects of the thesis work. Finallyandmostimportantly,myheartfeltaffectiongoestomywifeFatumaShekaandmy family who are always with me. June 2002 Adama ii TABLE OF CONTENTS Acknowledgements -------------------------------------------------------------------------------------i Contents---------------------------------------------------------------------------------------------------ii List of tables---------------------------------------------------------------------------------------------VI List of figures------------------------------------------------------------------------------------------Viii List of Appendixes-------------------------------------------------------------------------------------i X Acronyms. ----------------------------------------------------------------------------------------------- X Abstract. ------------------------------------------------------------------------------------------------ Xii CHAPTER ONE:INTRODUCTION--------------------------------------------------------------1 1.1. Statement of the problem---------------------------------------------------------------------------2 1.2. Objective of the thesis------------------------------------------------------------------------------2 1.3. Significant of the study-----------------------------------------------------------------------------3 1.4. Research methodology------------------------------------------------------------------------------3 CHAPTER TWO:LITERATURE REVIEW----------------------------------------------------5 2.1. Definition of maintenance--------------------------------------------------------------------------5 2.2. Status of maintenance-------------------------------------------------------------------------------5 2.3. Objective of maintenance management system-------------------------------------------------9 2.4. Importance of maintenance------------------------------------------------------------------------11 2.5. Scope of maintenance-----------------------------------------------------------------------------.-12 2.5.1. Category of Maintenance-------------------------------------------------------------------12 Preventive Maintenance (PM) ---------------------------------------------------12 Predictive Maintenance (Condition Directed) ---------------------------------14 Corrective maintenance (CM) ---------------------------------------------------15 2.6. Down time and availability------------------------------------------------------------------------15 2.7. Maintenance management system----------------------------------------------------------------17 2.7.1. Machinery maintenance standard ---------------------------------------------------------18 2.7.2. Types of standards---------------------------------------------------------------------------18 2.8. Planned maintenance system-----------------------------------------------------------------------18 2.9. Manpower planning---------------------------------------------------------------------------------19 2.10. Planning for machinery /equipment disposal---------------------------------------------------20 2.10.1. Disposal policy------------------------------------------------------------------------------20 2.10.2. Disposal criteria-----------------------------------------------------------------------------21 iii 2.11. Maintenance scheduling --------------------------------------------------------------------------22 2.11.1. Scheduling process--------------------------------------------------------------------------22 2.12. Maintenance record and documentation---------------------------------------------------------23 2.13. Spare part management (SpM) -------------------------------------------------------------------24 2.14. Determination of cost of agricultural machinery-----------------------------------------------24 2.14.1. Fixed cost-----------------------------------------------------------------------------------25 2. 14.1.1. Depreciation---------------------------------------------------------------------25 Method of determining depreciation----------------------------26 Interest----------------------------------------------------------------------------29 Tax--------------------------------------------------------------------------------30 Insurance-------------------------------------------------------------------------30 Shelter /housing-----------------------------------------------------------------31 Capital Recovery of Agricultural Machinery-------------------------------31 Inflation --------------------------------------------------------------------------32 2.14.2. Variable Cost-------------------------------------------------------------------------------32 Repair and maintenance cost--------------------------------------------------32 Fuel Cost-------------------------------------------------------------------------35 Lubrication (Oil) Cost----------------------------------------------------------36 CHAPTER THREE: CASE STUDY OF WONJI SHOA SUGAR FACTORY------------38 3.1. Historical Background of the WSSF-------------------------------------------------------38 3.1.1. Objectives of the Enterprise-----------------------------------------------------------------38 3.1.2. Mission-----------------------------------------------------------------------------------------39 3.1.3. WSSF Production Capacity-----------------------------------------------------------------39 3.1.4. WSSF Organizational Structure and Set up-----------------------------------------------39 3.2. Status of Agricultural Machinery------------------------------------------------------------------41 3.3. Machinery replacement-----------------------------------------------------------------------------41 3.4. Origin and Makes of Field Equipments (Machinery of WSSF) ------------------------------46 3.5. Down Time and Availability-----------------------------------------------------------------------48 3.6. Capacity of Man Power-----------------------------------------------------------------------------53 3.6.1. Training of Repair Crew--------------------------------------------------------------------57 3.7. Agricultural Machinery Maintenance Management System-----------------------------------58 iv 3.8. WSSF FESD maintenance work shop facility---------------------------------------------------63 3.8.1. Effect of environment on workshop------------------------------------------------------64 3.8.2. Work shop equipment facilities ----------------------------------------------------------64 3.9. Agricultural machinery cost-----------------------------------------------------------------------67 3.9.1. Machineries replacement under accelerated depreciation------------------------------67 3.9.2. Effect of machinery depreciation on economic life ------------------------------------68 3.9.3. Machinery depreciation cost under accelerated depreciation and aging. ------------70 3.9.4. Capital recovery model for agricultural machinery ------------------------------------72 3.10. Effect of age on insurance-------------------------------------------------------------------------73 3.11. Housing cost of agricultural machinery---------------------------------------------------------75 3.12. Agricultural machinery repair and maintenance cost------------------------------------------75 3.13. FUEL AND OIL COST-------------------------------------------------------------------------------83 CHAPTER 4: CONCLUSION AND RECOMMENDATION----------------------------------88 4.1. Conclusion---------------------------------------------------------------------------------------------88 4.2. Recommendations -----------------------------------------------------------------------------------89 REFERENCES -------------------------------------------------------------------------------------------92 APPENDIX-------------------------------------------------------------------------------------------------94 v List of Tables Table 2.1 shows the inflation factor used to obtained constant dollar value ---------------------32 Table 3.1 2000 physical year production capacity of factory---------------------------------------39 Table 3.2 quantity and status of machinery in FESD of two sections of WSSF -----------------41 Table 3.3 Age of the machine with respect to the type of machine--------------------------------43 Table 3.4 Machine that need replacement, reason for replacement, service life-----------------45 Table 3.5 Makes and origins of field equipment ----------------------------------------------------47Table 3.6a Grab loader utilization capacity, down time and performance efficiency-----------50 Table 3.6b Infield transport tractors utilization capacity, down time and performance --------51 Table 3.6c Road haulage tractors utilization capacity, down time and performance -----------51 Table 3.7 Current educational background of maintenance staff----------------------------------54 Table 3.8 Experience of maintenance staff ----------------------------------------------------------55 Table 3.9 Age of maintenance staff -------------------------------------------------------------------56 Table 3.10 Educational level of operators of tractors and heavy machineries-------------------56 Table 3.11 Numbers of trainees who involved in specific training. ------------------------------58 Table 3.12 Types of PM and frequency of change of different machineries. -------------------60Table 3.13 Machineries annual performance plan---------------------------------------------------63 Table 3.14 Work shop equipment----------------------------------------------------------------------64Table 3.15 Types of machinery and respective useful life------------------------------------------68Table 3.16 Effect of annual working hours on machinery useful life ----------------------------69 Table 3.17 Depreciation cost of machineries in SLM and DBM----------------------------------70Table 3.18 CAT D4E SR capital recovery cost with age. ------------------------------------------73 Table 3.19 Effect of age on insurance cost -----------------------------------------------------------74Table 3.20a Theoretical and actual repair cost of styer 9094---------------------------------------76 Table 3.20b Theoretical and actual repair cost of CAT D4E-SR-----------------------------------77 Table 3.20c Theoretical and actual repair cost of cameco loader-----------------------------------77Table 3.20d Theoretical and actual repair cost of Case Excavator---------------------------------78 Table 3.20e Theoretical and actual repair cost of MF 4260 Tractor-------------------------------79 Table 3.20f Theoretical and actual repair cost of MF 398-------------------------------------------79 Table 3.20g Theoretical and actual repair cost of FNH 110-90-------------------------------------80 Table 3.20h Theoretical and actual repair cost of same 130-DT------------------------------------81 Table 3.21 Theoretical repair cost summery-----------------------------------------------------------81 vi Table 3.22 Theoretical, actual and variance of fuel and oil cost of Styer tractor-----------------84 Table 3.23 Theoretical, actual and variance of fuel and oil cost of CAT D4E -SR--------------85 vii List of Figures Figure 2.1 Optimum maintenance cost-----------------------------------------------------------------10 Figure 2.2 Classification of PM (Demise, 2002) ---------------------------------------------------- 13 Figure 2.3 Category of CM (Demise, 2002) ----------------------------------------------------------15 Figure 2.4 Straight line methods------------------------------------------------------------------------26 Figure 2.5 Declining balance depreciation showing the additional effect of first year Correction factor. -----------------------------------------------------------------------------29 Figure 2.6 Specific fuel consumption for a diesel engine operating at various powers utilization ratios. -----------------------------------------------------------------------------36 Figure 3.1 Management structure of WSSF-----------------------------------------------------------40 Figure 3.2 Current condition of machinery Vs quantity in Percent--------------------------------42 Figure 3.3 Age of machinery Vs quantity-------------------------------------------------------------43 Figure 3.4 Replacement reason Vs quantity to be replaced in percentage------------------------45 Figure 3.5 Educational profile Vs quantity in percentage-------------------------------------------54 Figure 3.6 Operators education level Vs quantity----------------------------------------------------57 Figure 3.7a comparison of SLM & DBM depreciation ---------------------------------------------71 Figure 3.7b comparison of salvage value in both methods -----------------------------------------71 Figure 3.8 Capital recovery VS effect of age---------------------------------------------------------73 Figure 3.9 Insurance cost with respect to age of machinery----------------------------------------74 Figure 3.10a Yearly accumulated repair and maintenance cost (birr) ----------------------------76 Figure 3.10b.Yearly accumulated repair and maintenance cost (birr) ----------------------------77 Figure 3.10cYearly accumulated repair and mainetenance cost (birr)---------------------------78 Figure 3.10d Yearly accumulated repair and maintenance cost (birr) ----------------------------78 Figure 3.10e Yearly accumulated repair and maintenance cost-------------------------------------79 Figure 3.10f Yearly accumulated repair and maintenance cost-------------------------------------80 Figure 3.10g Yearly accumulated repair and maintenance cost-------------------------------------80 Figure 3.10h Yearly accumulated repair and maintenance cost ------------------------------------81 Figure 3.11 Yearly accumulated repairs and maintenance cost-------------------------------------82 Figure 3.12a Yearly fuel consumption theoretical and actual --------------------------------------84 Figure 3.12b Yearly oil consumption theoretical and actual ----------------------------------------85 Figure 3.12c Yearly fuel consumption theoretical and actual --------------------------------------86 Figure 3.12 d Yearly oil consumption theoretical and actual ---------------------------------------86 viii List of Appendixes Appendix -1 Repair and maintenance factor for field operation of agricultural machineries Appendix -2 Accumulated repair costs as a percentage of new list prices Appendix- 3 Capital recovery factors of agricultural machinery Appendix-4 Field equipment service department agricultural machineries Appendix- 5 Trade in Value Appendix- 6 Same Machineries Waiting For Spar Part Appendix -7 Agricultural Machineries which are in sever whether condition due to lack ofshelter Appendix -8 Dusty Work Shop Area Appendix-9A Comparison of theoretical, actual and variance of fuel and oil cost of camecoloader-2254 Appendix-9B Comparison of theoretical, actual and variance of fuel and oil cost of CaseExcavator, 1288 Appendix-9C Comparison of theoretical, actual and variance of fuel and oil cost of MF 4260 Appendix-9D Comparison of theoretical, actual and variance of fuel and Oil cost of SameMF 398 Appendix-9E Comparison of theoretical, actual and variance of fuel and oil cost of FNH-110-90 Appendix-9F Comparison of theoretical, actual and variance of fuel cost of Case Same 130-DT ix Acronyms 2WDTwo Wheel Drive 4WDFour Wheel Drive AHAccumulated Hours ARMAccumulated Repair and Maintenance Cost ASAE American society of agricultural Engineers standards CAT Caterpillar CLPCurrent List Price CM Corrective maintenance CoComplete Overhaul CRCapital Recovery CRFCapital Recovery Factor DBM Diminishing Balance Method DP Depreciation DT Total Depreciation EUL Estimated Useful Life EXCVExcavator FCFuel Cost FDFord FESD Field Equipment Service Department FNH Fiat New Holland HES Heavy Equipment Section HpHorse Power HVAHangler Vondr Amsterdam I Inspection LPCD Land Preparation and Cultivation Department MFMassey Fergusson MSMaintenance Scheduling NTAF Nazareth tractors assembly factory OC Oil Cost PdM predictive maintenancePM preventive maintenancex PoPartial Overhaul PPPurchase Price PTO power takeoff RF Repair factors RIRate of Interest RvRemaining Value SServicing SdM scheduled maintenanceSLMstraight line method SPMSpare Part Management VsVersus WSSFWonji Shoa Sugar Factory WTS Wheel Tractor Section YDYears Digit xi Abstract ThisthesisisstudiedonthesubjectAgriculturalMachineryMaintenanceManagement system.Itisfoundthatimprovedmaintenancesystemassiststoincreaseproductivityofthe enterprise/WonjiShoaSugarFactory(WSSF)byincreasingmachineryworkeffectivenessand availability.Theenterprisemusthaveeffectivemaintenanceplanandreplacementpolicyof machinery by which the whole firm will follow and should be directed in the same way to reduce equipment downtime. Furthermore, setting up of effective maintenance management system and preventive and planned maintenance is the way in which repair and running cost can be reduced. Thiscanbedonethroughplanningtobuildcapacityofmaintenancestaffandimplementing preventivemaintenanceinaccordancewithmaintenancedisciplinerequiredsothatfrequent failureofmachinerywillreducesoastoincreasemachineryavailability.Generallythestudy wasconductedbygatheringdatafromprimaryandsecondarysources,interviewand observation.Maintenancemanagementparametersliketrainingofrepaircrewsandoperators, educationalprofileandexperienceofmaintenancepersonnel,workshopequipmentsand facilities,machineriesannualworkinghoursandworkingcondition,availabilityofsparepart andmaintenancestandardswereconsidered.Themajorfindingofstudywasindicatedthat agriculturalmachinerymaintenancemanagementparametersintheenterprisewereinefficient and operating cost was also significantly higher. Proper attention was not given by the factorys management.Generallypoormaintenancemanagementsystempracticedresultedtohigh expendituretotheenterprise.Basedonthefindingstheresearcherrecommendedthebestways of improving maintenance activities so as to reduce maintenance expenditure. 1 CHAPTER ONE INTRODUCTION AgricultureisthebackboneofEthiopianeconomy.Eightfivepercentofourpopulationlivein ruralareasofthecountryanddependsuponagriculture(CSA,2003).Indirectlytheurban dwellers consume agricultural product which are produced by rural farmers. As one part of agricultural industry, sugar cane plantation is very important agricultural sector in ourcountry.Nowadaysthedemandforsugarisrapidlyincreasing.Tofulfillthisdemand government and private organizations are investing to plant new factories and implementing the expansion of the existing sugar cane plantations. Factorieswhichareproducingsugarshavesomanyagriculturalmachinerieswhichareusedto cultivate farming, applying fertilizer, harvesting cane, and transporting of cane from field. These machineriesplayagreatroletoprepareinputtothefactory.Effectivechainofoperationof machinery results to the optimum production of sugar. Wonji shoa sugar factory is located 110 km from the capital and 10 km from Adama town. The factory has total area of7022 hectors; averageannual production of sugar is 700,000quintal.It has about 7,000 workers (Yohannes, 2001). Thefactoryaccommodatesalargenumberofagriculturalmachineries:tractorsandheavy machineries.Thefactoryhasagaragewhichhasthreesectionsi.e.tractorsection,heavy equipmentsection,andlightdutyvehiclesectionwheremaintenanceandservicingaretaking place. All these machineries and vehicles are managed and handled by these sections. Generally agricultural machineries are labor required in industrialized society. The requirement in the past were mainly to release human labor from heavy physical labor, but now a daysit is emphasized to make machinery work quickly, efficiently, precisely and easily in addition to operators safety (Kobayash, 2003). Thegarageisveryoldwhichservedforabout48yearswitholdmaintenancemanagement system.Theequipmentfailureswererectifiedthroughbreakdownmaintenanceactionwhile preventivemaintenanceisusedtoreducetheoccurrenceoffailurebecausethefailureof 2 machineriesfrequentlycancauseseriouseconomicalandsocialconsequences.Maintenance budget of FESD (field equipment service department) is very high and it increases at the rate of 18.25%productioncostperannum.Thisresultedinreductionofprofitabilityofenterpriseand increased additional cost. Therefore, maintenance should be done so as to achieve the objectives of the organization by making the rational between breakdown and preventive maintenance and optimizinghigheravailabilityofmachineriesthroughreducingdowntime.Higheravailability increasesproductivitywhichinternsincreasestheeffectivenessofworking.Effective maintenancemanagementisonewayofimprovingproductivity.Maintenanceisatechnical discipline which plays a great role to maximize the performance, availability and prolong the life the machinery. Aneffectivemachinerymaintenanceprogramandefficientmanagementsystemsareessential foreconomic,valuableandoperationalsafetyofmachinery.Inthispapertheresearcher investigatedthesourcesoffrequentfailureofmachineries,highmaintenancecostandcost reductionmethod.Ingeneral,thepaperinvestigatedimpact(effectiveness)ofagricultural machinerys maintenance of Wonji Shoa sugar enterprise.

1.1. Statement of the problemThe factory garage provides maintenance services for different types of agricultural machineries. Themainimportantdepartmentforthisfactoryisthissection.Inthissectionsomeofthe machineries are failing frequently.Generally, the maintenance system of the garage is incurring much cost which results in overall budget of this section increased by 18.25% per annum. This increasesthecostofmaintenance,andintensivebudgethastobeprovidedbecauseof maintenanceexpenditure.Thisalsoresultsinreductionofprofitofthefactory.Therefore,this problem needs attention, and unless some correction methods to the existing maintenance system are taken the company will suffer huge losses. 3 1.2. Objective of the study The main objective of this study is: -to investigate the existing maintenance management ofthe factorys garage in order to improve existing maintenance system of the machinery. -to optimize and implement effective maintenance management in the garage.-to reduce intensive budget consumed and overall cost of maintenance. 1.3. Significant of the study The main significance of the study is to bring and implement effective maintenance management tothefactorysgarageandtoprovidebettermaintenanceactivity.Indoingso,thefactorys garage extended expenditure will be reduced and profit will be high. The first beneficiary will be WonjiSugarFactoryandothersimilarinstitutionwhichcanutilizetheinformationdeveloped within this thesis. 1.4. Research methodology This study has exploitedvarious researchmethodologies by exploring their contribution toward thebestsuccessofanticipatedresults.Hencethestudyusedprimaryandsecondarysourceof information.Therelevantprimarysourcescontainoriginal,row,uninterpretedandunprocessed information. The relevant secondary data were collected from maintenance technical manual and documents,monthlyandannualreportsofFESD,plantation,harvesting,financedepartment, planningandinspectiondepartmentoftheWSSF(enterprise).Primaryinformationwasalso gathered using discussion, nonstructural interview, and direct observation on site visiting enables the investigator to keep relevant data for the study.

Datacollectionwasquantitativeandqualitativeinnature.Quantitativedataisadatawhich expressanythinginquantity,innumber,inpercentageandcanbemeasured.Qualitativedata whichexpressanythinginqualitylikegood,fair,bad,sufficient,insufficientetc.the methodologyhasquantitativenaturebecauseofthefactthatquantifiablemeasureofvariables canbeorganized,formulated,analyzedandconclusionwasdrawnfromthesamplepopulation taken. 4 Thedatarequiredfortheinvestigationwasidentifiedandgatheredbycommunicating maintenance department head, section head, chief mechanics, finance department staff, planning andinspectionteam,externalrelationoffice,documentationclass,plantationandharvesting department of wanji shoa sugar enterprise.Data include number and status of machinery, service life and purchased year, purchased price, number of maintenance and operators staff, educational background, age and service life were part of it. Basedonmaintenanceactivitieslikeequipmenthistoryrecordingsystemandservicemanual, machineryperiodicmaintenanceconditionwereinvestigated,whetherittookplacewith accordance of manufacturer recommendation or not. Todeterminedcostofagriculturalmachinerysampleofmachinerieswereselectedbasedon type, age, model, horse power and nature of their work. Effect of annual operating of machinery for a long period of time on machinerys useful life and depreciation using both straight line and decliningbalancemethodwerealsodetermined.Fixedandoperatingcost,Accumulatedrepair and maintenance cost, data were formulated and analyzed by using correlation analysis in order to compare theoretical with actual costs. Afocuseddiscussionandnon-structuredinterviewwereheldwiththerespectivemaintenance headandsectionheadbyvisitingthemfrequentlyoncultureandstatusofmaintenance, maintenanceworkshopfacilitiesandequipmentandmanpowercapacity.Havingtheresult gathered, the condition, culture and system of maintenance in WSSF FESD can be pin pointed. Finally, after analysis all what were incorporated the best method and approach of maintenance, man power capacity required, work drop facilities, areas, and equipment and all what should be done were recommended in order to improve the existing maintenance system of WSSF FESD. 5 CHAPTER TWO LITERATURE REVIEW 2.1. Definition of maintenance Maintenance can be defined as those activities required upkeeping a facility in as built condition, sothatitcontinuestohaveitsoriginalproductcapacity(Gopalakrishinan&Benarji,2006). Fromtheabovedefinition,itcanbeseenthatmaintenanceisnecessarytokeepanyproductor system with a finite life span, operating at an acceptable level, so as to support the needs of the user or organization. Themaintenancedepartmentisoneofthegreatestlossesofprofitabilitythatanycapital intensiveorganizationhas.Anaverage40-50%ofthecapitalintensiveindustriesoperating budget is consumed by maintenance expenditure (Ohita, 1988). Every machine and other service facilities are subject to deterioration due to their use, exposure to the environmental condition. If this process of deterioration is not checked it may render them unserviceable. It is therefore necessary to attend them from time to time to repair and recondition them so as to enhance their life economically. Everymachineisthoroughlytestedandproperattentionmeans,lubrication,cleaning,timely inspecting, and systematic maintenance. Unless, proper attention is not experienced it resulted to unplannedshutdownofthecompany.Thusthemaintenanceistheresponsibleforthesmooth andefficientworkingofanindustryandhelpsinimprovingtheproductivity.Ithelpsalsoin keeping the machine in the state of maximum efficiency with economy (Sharma, 2003).

2.2. Status of maintenanceIntheUnitedStates,itwasestimatedthatin1979overtwobilliondollarswasspenton maintenance.However,moredisturbingthantheamountwasthefactthatapproximatelyone thirdofthattotalwasspentunnecessarily.Aswecontinuetothepresent,therehasbeenno significant change in maintenance policy, Indicating the unnecessary cost trend is probably still 6 one-thirdandlargestchangeinthemaintenancecostsistheamount.Since1979maintenance cost has risen between 10 to 15% per year. If this amount is calculated, it is very likely that the maintenanceexpenditureintheUnitedStatesisnowevenone-halftrilliondollars.Wheredue thisunnecessarycostsoccurinmaintenance?Howcantheybecontrolled?Accordingto Wireman (1990), these questions can be best answered by looking at some statistics. Less than 4hr/day (out of a possible 8) are spent by maintenance crafts men performing hands-on workactivities.Thisfigureisevenmorealarmingwhenitisrealizedthatthemajorityof maintenanceorganizationsareperformingasfewas2hrofhands-onwork.Itisnotthatthese individuals are lazy or shrinking job responsibilities. It is the fact that they are not provided the necessary resources by management to perform the assigned job tasks. Providing these resources becomesimportanttoincreasingmaintenanceproductivityandproducingsubstantial maintenance labor savings. If we would view maintenance salaries as a resource, $20 per hour is paid and only utilizing this resource at a 50% level; that is a tremendous cost waste. Onlyaboutone-thirdofallmaintenanceorganizationusesajobplannertoplanmaintenance activities.Mostexpertsagreethisisoneofthelargestpotentialforcostsavingsinthe maintenancearea.Itisestimatedthatplannedversusunplannedworkmayhaveacostratioas highas1:5performinga$100plannedworkcouldsaveasmuchas$400overperformingthe same job in unplanned mode. Themajorityofallmaintenanceorganizationseitheraredissatisfiedwithordonothavework orders systems. This is one of the critical indicators of the status of maintenance Organization. If a maintenance organization does not have a work order system in place that works properly, it is impossible to measure or control maintenance activities. Ofcompaniesthathaveworkordersystems(one-thirdofallcompanies)onlyaboutone-third tracks the work orders in a craft backlog format (actual 10% of total organizations). This format will permit the manager to make logical staffing decisions based on how much work is projected foreachcraft.Beingabletojustifyemploymentlevelstouppermanagementisanecessary function of good maintenance management. 7 Of companies that have work order system, only one third compared their estimates of the work orderlaborandmaterialstotheactualfigures.Again,thismeansonlyabout10%ofall organizationscarryoutsomeformofperformancemonitoring.Successfulmaintenance management requires performance monitoring. Of thecompanies withwork ordersystem thatallowsforfeedback, only one-third,again about 10%ofallcompanies,performanyfailureanalysisontheirbreakdowns.Mostoftheother companies are just parts changers. For an operation to be cost effective, good practice in failure analysis must be followed. Overtime,anotherkeyindicator,intheUnitedStatesaveragesabout14.1%ofthetotaltime worked by maintenance organizations. This figure is almost three times what it should be. Since maintenanceisworkingsomuchovertime,itagainindicatesthereactiveSituationthatis standardintheindustry.Reducingovertimeisessentialifamaintenanceorganizationistobe truly cost effective. Preventive maintenance, another major part of any successful maintenance program, is presently satisfying the needs of about 22% of the maintenance organizations. This again illustrates major problemsforthemaintenanceorganizations.Withoutsuccessfulpreventivemaintenance programs,maintenancecanonlyreacttogivensituation.Preventivemaintenanceallowsthe organization to plan better and reduce maintenance costs. Over three-fourths of the organizations need major improvements in this area. Related to preventive maintenance, almost three-fourths of the organizations have some form of lube routes and procedures. While this fact seems to be positive on the surface, it is not. Many of theorganizationsfeelthatpreventivemaintenanceisnothingmorethanluberoutesand procedures.Sooncetheyhavethesedeveloped,theystop.However,preventivemaintenance encompasses much more than lube-routes. To be successful, maintenance organizations must go beyond the preliminaries and fully develop preventive maintenance programs. 8 One final fact related to preventive maintenance is the lack of coordination between operations/ facilitiesandmaintenance.Almostthree-fourthsofallorganizationsexperienceproblemsin coordinatingpreventivemaintenancewiththeoperations/facilitiesgroup.Theproblemiswith communication.Eitherthemaintenanceorganizationhasnotcommunicatedtheneedforthe preventivemaintenanceortheoperation/facilitiesgroupisnotlistening.Good,credible communication must be established if preventive maintenance is to be effective. Second only to maintenance labor is thecostofmaintenance materials.Depending on thetype of operations / facility maintenance, materials can range between 20 and 70% of the maintenance budget. To manage maintenance successfully, materials must be given close scrutiny. Athirdpointofconcernformaintenancematerialsisthatmaintenanceisonlyresponsiblefor their inventory in about 50% of the organizations. This means the other 50% of the time, another body is telling maintenance department what they should stock and how many they can issue. While most thus agree that maintenance costs are high, they do not know how high they are for theirownsite.Inmostcases,thecostsofmaintenancerepairsarecalculatedasthecostof maintenancelaborandthemaintenancematerialstoaffecttherepair.Whatlargerfigurethatis not added is the cost of lost production/service. The range for this cost may be from 2 to 15 times the cost of the maintenance repair. The average is usually 4 to 1. So while a maintenance repair in labor and materials may be 10,000.00, the actual cost is really closer to 50,000.00. In fact, it is estimated that in the next several years the annual maintenance cost will exceed the amount spent on yearly new capital investment. 9 2.3. Objective of Maintenance Management Maintenance management is concerned with a good control of the maintenance function and its relatedareasinordertobestassisttheobjectivesandgoalsoftheentireorganization.Itisa combinationofalltechnicalandadministrativeactiontoretainanitemin,orrestoreittothe state which itcan performits requirement undernormal stated condition.In short,maintenance managementcansimplybedefinedasmanagingthemaintenanceactivitytoensurethe availabilityofequipmentandfacilitiesandkeepingthedowntimetoaminimum.Assuch maintenancemanagementsupportstheeffectiveoperationprocessbyeliminatingandreducing the frequency and severity of equipment failure (Teklehaimanot, T.2007). Ingeneralthemainobjectivesofthemaintenancesare(SharmaandGopalakrishinan,.2003& 2006): -to ensure maximum availability of plant, equipment and machinery for productiveutilization through planned maintenance- to maintain plant and equipment and facilities at an economic level of repair at all times to conserve these and increase their life spans. -to provide the desired service to operating departments at optimum levels through improved maintenance efficiencies. -to reduce cost of the lost production due to breakdown. -to provide management with information on the cost and effectiveness of maintenance The economic factor has to be kept in mind by all the contributing department of an organization because, whatever be an aim and objective of that organization, it cannot sustain for a long with earning profit. So, it canbe safely said that the primary objective of maintenance department is toextendhelpstoachievethisgoalbycreatingcapabilitieswithintheenterprisetoearnprofit. Sincetheultimateobjectiveisprofit,theproductioninfrastructureandfacilitieshavetobe maintainedatasminimumcostaspossiblewithmaximumefficiencyandoperational availability. The main objectives of properly run of the maintenance department is to have plant, equipment, andmachineryavailableforproductiveutilizationduringthescheduledhours,operatingto 10 agreedstandardwithminimumwasteandminimumtotalcost.Thetotalcostisthesumof maintenance labor cost and material cost plus cost of loss in production. Gopalakrishinan (2006) shows how the lowest total cost can be achieved from fig. (2.1) Fig.2.1. optimum maintenance cost a, If maintenance cost (m-curve) is at zero, then it indicates that no maintenance is being carried out at that point and the cost of production loss ( see p-curve ) is at the highest or at its peak.b, as the maintenance effort is gradually being introduced and increased (m-curve ), the production loss (p-curve ) slowly decreases. C, following the total curve (T-curve pattern, we notice that the effect mentioned in point b, holds true till we reach the minimum combined cost level at point A (T-curve ). Thereafter, any additional maintenance effort being applied increase cost. This clearly shows that maintenance optimizing technique indicates that point A on the T-curve istheobjectiveforthemaintenancetoachieve:becauseatthatlevelwegettheminimum combined cost. This observation is also equally true for the service sector organizations. 11 2.4. Importance of maintenance Components, subunits, subsystem, system of equipment and vehicles are designed, manufactured and assembled from processes row material and energy by the aid of human labor and necessary tools. Their manufacturing and assembling process follow scientific law in an economic way that willbeachievebymaximizingperformanceandqualityequipment/machineryreducingcost. Furthermore, in order to continuously perform their intended mission or be available to perform theirmissionweneeded,thefollowingfactorshavetobeanalyzedanddeterminedthoroughly during, manufacturing and assembling process (Teklehaimanot, T.2007). These factors are:- Reliability: the ability of an item to perform the function under static condition for stated period of time.Withthisregard, duringdesigning,manufacturingandassembling activities,caremust betakeninordertomaintainhighreliabilityofoperationatacceptedaddedcost.Accordingto Sharma (2003)reliabilityis thecapability ofequipmentworkswell andworkswhenevercalled upon to do the job for which it was designed. The general accepted definition of reliability is the probability of a deviceperforming its purpose adequatelyfortheperiod of time intended under the operating condition encountered. Maintainability: the ability of machinery/equipment under stated condition of use to be retained or restoredtoestatein which it cangive itsoriginal performance,whichmaintain is performed understatedconditionsusingstatedproceduresandresources.Thereforetheaimof maintainability is to reduce down time of the equipment (Sharm, 2003) which includes: -time to carry out preventive maintenance - time taken in fault analysis, time taken to repair, time taken to subsequent testing

Availability:AccordingtoDemise(2002)availabilityperformanceisameasurementof maintenance efficiency and can be defined as measurement of performance of equipment in the termsofabilitytooperatewithoutproblemindespiteofdisturbanceandlimitationof maintenance resources. Humanfactorsergonomics:humanfactorsreferstothedesignsystemoraproduct/service withhumanbeinginmindthatisthedesignforoperabilityandeaseofmaintenance considerationincludesphysicaldimensionsofthehumanbody,humansensoryfactor,(sight, 12 hearing,feelortouch,smell,Physicalfactorstheeffectsofenvironmentalstressonthebody) and psychological factors pertaining to the human mind emotion, traits, attitudinal response and behavioral pattern as they relate to job performance. 2.5. Scope of maintenance The task of machinery maintenance is to transform row materials, energy and human labor in to usefullproductsbyfollowingscientificlawsinaneconomicwayswhichwillbeachievedby maximizingperformanceandqualitywhilereducingcosts.Inordertoproducefacilities, transport and cargo perform agricultural duties machineries /vehicles are assembled by designing andmanufacturingtheircomponentswithlimitedlifespan.Moreover,errorsduringdesigning and manufacturing might result in lower requirement life. Therefore, equipment designer have to considermaintainabilityofequipmentbeforeitismanufactured.Maintenanceisadisciplineof engineeringwhichtriestomaximizetheperformanceofmachineryandtoprolongthelifeof capitalequipment(Demise,2002).Maintenanceconsistsofallactivitiesundertakentokeep equipment functioning with its original performance or to restore its original performance. 2.5.1. Category of Maintenance Preventive Maintenance (PM) PMissometimestermedasplannedmaintenanceorscheduledmaintenanceorsystematic maintenance.Itisanextremelyimportantfunctionforthereductionofmaintenancecostand preventstheoccurrenceoffailurebeforetheydeveloptoabreakdownorinterruptionof operation (Demise,, 2002) and to keep the good operational condition of the equipment and hence increase the reliability. PM aims to locate the source of the trouble to remove them before the breakdown occur. Thus it is based on the principle prevention is better than cure. Scheduledmaintenance(SdM)isalwayseconomicalthanunscheduledmaintenanceaswellall knows that a stitch in time saves nine. Best safeguard against costly breakdown is to inspect, lubricate,andcheckuptheequipmentasfrequentlyaspossible.Totakefulluseofmachinery and maintain it in reliable condition. Necessary measures should be taken to prevent overloading, 13 dampness and negligence and misuse of machines frequency of inspections should be decided on thebasisofimportanceofthemachines,tearandwearofthemachinesanditsdelicacy.Thus periodicinspectionorcheckinghelpstofindoutthereasonleadingtobreakdownandrectify them when they are in minor stages. Thus there repair can be done when one wants to do it. That is when it has least effect on the production schedule.Further this repair requires lesser time as requiredascomparedtothatofbreakdownrepairandthusdowntimeisreduced(Sharma, 2003). PM includes the following important function. That is; inspection and check up for internal and external,servicingwhichincludecleaning,coolingandlubrication,planningandscheduling, recording and analyzing, training of maintenance staff and strategy of spare part (Ladet, 2009). Forthesuccessofpreventivemaintenancesoundtrainingisessentialforthemaintenance personal. Hence, the technicians and supervisor and trained to carry out maintenance, inspection and repair in a systematic way.

Fig.2.2 Categories of PM (Demise, 2002) AccordingtoTaylor(2003),equipmentthatisoperatedcanfailandnotallfailurescanbe prevented.Preventivemaintenanceformsthebackboneofaplannedmaintenancesystem.PM takeseitherfaultfinding(inspection)orpreventivereplacement.Theroutingoftimedirected Preventive maintenance Indirect PM, Condition based maintenanceDirect PM, fixed time maintenance Condition monitoring Failure detection before break down Condition based replacement Fixed time replacement Adjusting, cleaning, and lubrication 14 task s fosters discipline and focus in the maintenance organization. A well designed program has standarddailyandweeklyroutingthatencouragessystematicplanningandperformanceof maintenance task. Predictive Maintenance (Condition Directed) Predictive maintenance (PdM) can be definedas a method of surveillance used to indicate as to howwellthemachineis,whileperformingitsintendedtask,agoodplannedmaintenance systemhasaheavyemphasisonconditiondirectedtasks(Tylor,2003).Accordingto Gopalakrishinan& Benerji (2006) PdM activityconducted to preventfailures before it happens usingmeasuringandconditionmonitoringdevicetodetectwearstages.AccordingtoSharma (2003),conditionmonitoringistheconditionbasedmaintenanceandisconcernedwith extracting information from machine to indicate its condition and to enable them to be operated andmaintainedwithsafetyandeconomyandalsotomaximizetheavailabilityofthe machinery/equipment. In todays industry, machineries are subjected to sever condition and put to continuous operation. Tobeabletogetthemaximumnumberofonstreamdaysofoperation,thesystemof maintenanceoperationshouldbesuchthatitwillreducedowntimeontheabsoluteminimum. Hencethecontinuousplantmonitoringanddiagnosingtheactualconditionoftheequipment/ machineryonstreamnon-destructivetestingmethodbeingincreasinglyused.Theobjectiveis the ability to predict an impending failure which could cause heavy penalty cost and even creates healthandotherhazards.Therefore,theabilitytoforecastmachinery/equipmentbehaviorby condition monitoring is a pre-requisite for PdM. Condition monitoring is a method of extracting information frommachineryand enables us to indicate its condition in quantitative term. Hence itisveryimportantdiagnostictooltothemaintenanceengineer(Gopalakrishinan&Benerji, 2006). 15 Corrective maintenance (CM)Cm so called breakdown maintenance covers all maintenance work which is carried out in order tocorrectafailure(fault)inequipment(Demis,2002),itdealwithnormalrepair,programmed replacement and over haul in addition to break down repair (Sharma,2003). A failure or fault is stated at which the equipment does not give its original performance or its step to function. Thus, failureisindicatedbyreductionofperformanceorbecominginoperable.Maintenancecarried out to restore (including adjustment and repair on item) machinery which has ceased to meat an acceptablecondition.Itrequireslookafteryourmachineryfairlywellandtokeepitinagood condition, even after the machineryhas done a certain amount of mileage normal wear and tear begintotakeitstallandthemachinerywillneedtoberestored(Gopalakrishinan&Benerji, 2006). Figure 2.3 Category of CM (Demise, 2002) 2.6. Downtime and availability Letussayequipmentfailedfivetimesinayearandtotaltimerequiredtoputinoperationis aboutthirtydays,consideringthreehundredworkingdays,theequipmentisnotavailablefor 10%oftime.Thatmeanstheavailabilityisninetypercent.Thisisthirtydaysortenpercent down time. This downtime duration from the time when the machinery goes under break down to the time when it is restored to service and includes time for reporting of failure, time required for service,timerequiredforreachingtothesiteandinitialinspectionofequipment,actualrepair time, time required for final inspection (Sharma,2003). Therelationshipbetweendowntimeandcostincurredinproductionlosscanbeeasily understood. To understand this in the correct prospective few points must be made. Correctivemaintenance (CM)Unplanned Planned Breakdown emergency repair Failure doesnt stop operation 16 1.Downtime doesnt always imply/cause direct production loss. Therefore, there are certain exceptionsandconditionsunderwhichdowntimedoesntcreateproductionloss.This includes: If the machinery doesnt operates at full capacity utilization level. 2. Reason of downtime other than break down Shortage / absence/ of operator. Lack of proper tool Non availability of specific raw material Improper planning and scheduling. Downtimethereforehonestlyrecordedandchargedtorelevantresponsibledepartment (Gopalakrishnan & Benerji, 2006). Agriculturalmachinerydowntimecanbereducedbythefollowingmeans:i.e.speedyfault detection.Faultshouldbedetectedbeforeitbecomesenoughtoaffectperformanceof machinery.Speedyfaultydiagnosis;inthiscasethetimespentinfaultydiagnosiscanbe reduced.Theotheroneisspeedyrepairwhichincludestimerequiredforfaultydetectionand diagnosis, removal of assembly, striping, adjustment, assembly and then finally trial (check) test. Forspeedyrepairitisessentialtouselatesttool,immediatedecisionshouldbetheretoadjust, recondition, or repair a particular part (Sharma, 2003). Reductioninwaitingtimeisconsiderablyhigherthanactualtimetakenforrepairdueto irregular (random) arrival of repair job. Queue is formedmainly because of the mismatching of arrivals and servicing rate. Waitingtimecanbereducedbyincreasingtheefficiencyofrepaircrew,(throughtrainingand incentive), policy of replacing first and repairing afterwards for jobs involving heavy repair. For thispurposesameassembliesandsubassemblieskeptinreserve.Waitingtimemayalsobe reduced by increasing the man power (Sharma, 2003). 17 2.7. Maintenance Management System Maintenance management is concerned with the good control of the maintenance function and its relatedareasinordertobestassisttheobjectivesandgoalsoftheentireorganization.Itisa combinationofalltechnicalandadministrativeactionstoretainaniteminorrestoreittothe statewhichitcanperformitsrequirementundernormalstatedoperativecondition.Inshort, maintenance management can simply defined as managing the maintenance activity to ensure the availabilityofequipmentsandfacilitiesandkeepingthedowntimetoaminimum.Assuch maintenancemanagementsupportstheeffectivenessoperationprocessbyeliminatingand reducing the frequency and severity of equipment failure (Teklehaimanot, 2007). Withthechangeinthemaintenanceandthemanagementtechnique,thereisaneedtoprovide unintegratedapproachthatpullstogetherallofthedesigntoolsthatexistintoanintegrated whole. This requirement is in the form of maintenance management system which when properly organizedandestablished,isabletoprovidepersonnelatalllevelsaccesstorealtime information. The fundamental approach ofmaintenance management system canbe viewedas aclosed loop whichisrepeatedinacontinuousimprovementprogramofmaintenanceandinformation procedure.TheDemingconceptofplanDo-Check-ActisacommonapproachPentlonAnd Wassenhove(1990)usedbyfirmofrecordingofdataaccountingforcosts,developing information,updatingequipmentinformation,providingworkordersystem,controlof preventivemaintenanceprogramandprovidingmanagementcontrolreport.Toensurethata maintenancemanagementsystemfunctionproperly,severalothersub-systemsarenecessary. Thesesub-systemsincludestopicssuchasequipmentbreakdownanalysis,planningand scheduling of maintenance work, budget and forecasting, inventory control, training accounting, work order system, work standard and data collection. According to Weaver (1991), the need for the strict management control has never been so great intheareaofmachinerymaintenance.Aswithallotherphasesofbusinessmanagement, maintenancemanagementhas,attime,beensadlylackingineffectiveness.Incertaintypeof industry, maintenance management barely exists and its virtually unknown in others. 18 2.7.1. Machinery maintenance standardMachinery/equipment standards include inspection and repairing standard (Oakland, 1993). Inspection standard: these are standards for inspecting equipment, in other ward technique for measuring of otherwise determining the extent of deterioration. Servicing standards: these standards specify how servicing and routine maintenance done with hand tool will be carried out. They include method and guide line for different type of servicing such as cleaning, lubrication, adjustment and part replacement. Repair standards: repair standards specify condition and method of repair work. Maintenance work standards: maintenance standards prepared for frequently performed work. 2.7.2. Types of standards -Equipment design standards or simply equipment standard-Equipment performance standard/ equipment specification. -Equipment material procurement standards. -Equipment materials inspection standards. -Test run and acceptable standards. 2.8. Planned Maintenance System All work is planned! If it is not preplanned, it is planned during execution, pre-panning includes needed parts materials and skills are available. Multiple trips are to the tools room or store rooms areeliminated,craftsarecoordinated,avoidingwastedmanpowercausedbypeoplestanding aroundwaiting.Workplannedduringexecutionsuffersfromfalsestart,missingpartsor informationandwastedmanpower.Worksthatisnotpre-plannedcancostyouasmuchas25 percent more to accomplish (Taylor, 2003). AgoodplannedmaintenancesystemisdesignedwithoptimalmixofPMandPdMtask.As muchCMaspossibleisplannedtomakebestuseofmanpowerandspares.Anumberof unplanned repairs are minimized. A good planned maintenance system will reduce the number of emergencyrepairtoaminimumbecausemanyoffailuresthatcouldhappenedarefoundearly whiledoingPMorPdMtasks.Becausetheyarefoundbeforethefailureoccurs.Theycanbe repaired with the least impact on production.19 2.9. Manpower planning Toachievemaximumproductionatlowcostandatdesiredquality,rightmanatrightplace,at right job and at right time must be put. This is what is called scientific man power planning. This reduces idle hours, cost of products and help to step up the moral of employees. It also develops cooperationandteamspritamongeachother.Manpowerplanningmaybedefinedasspecific process of allocating the right quantity of right men to be required in future at right time on the right job. Manpowerplanninginvolvestwostages.Thefirststagesconcernedwithdetailedplanningof manpowerrequirementsforalltypesandlevelofemployeesthroughouttheperiodoftheplan andthesecondstageisconcernedwiththerighttypeofpeoplefromallsourcestomeetthe planned requirement. Oneoftheobviousreasonsfortrainingisthattheemployeecantdosomethingthatthejob requirestobedone.Itexplainedthatthereissomeskilltheyhaveyettoperfectoracquireor someknowledgetheyarelackingandkeepingthemfromdoingacompletelysatisfactoryjob. Thisreasonsenoughtomaketrainingnecessity.Trainingisanintegralpartofbuildingg capacitytechnicians/employeeswhoengagedwithmachinerymaintenance.Trainingthe operatorsandthemaintenanceworkerhelpstoachievezerobreakdownsasmanybreakdowns are results of lack of skill (Johansson and Nord, 1999). Thiswillenabletheoperatortomaintaintheirownmachines,understandwhilefailureoccurs and suggest way of avoiding the failure occurring again. Generally training is continuous process and it can be successfully planned and implemented, only if the organization has a proper policy andhasthesupportofitstopmanagement.Thechiefmaintenancemanagerisresponsibleto planned and train his personnel with their level i.e. worker level, supervisor level and executive level.Hedoesthisusuallybymakingdetaildocumentsclearlyprojectingthemaintenance requirements of the organization training. 20 The most wanted ability from operator-Ability to find and improve equipment minor defect sources. - understand equipment function and mechanism and have the power to find the causesystem of troubles. - understand the relationship between employment and product quality and have power to predict problems with quality or to find cause system. - To repair -can perform individual duty of the machine operator job. The Most Wanted Ability from Maintenance Men -Can instruct the correct operation and daily maintenance of equipment -can judge if the equipment is operating normally or abnormally-Can analyze abnormal condition cause and can select and implement correct restoration -method. -Can enhance equipment and part reliability, extend life and suppress abnormal-Condition of failure.- can enhance equipment maintainability by such as unit exchange and can shorten repair and restoration time.-Have technological power to diagnose equipment and can utilize and standardize it. 2.10. Planning For Machinery /Equipment Disposal 2.10.1. Disposal Policy -The objective of machinery /equipment disposal policies and procedures are to (Demise, 2002):-maintenance polices control over equipment during its needed service year. -ensure an orderly, logical assessment is made of equipment, worth responsibility, Potentially extended life and productivity before any decision is taken to sell or scrap equipment.-ensuretheproperauthorization,checkandapprovalhavebeenobtainedbeforeequipmentis written off. -prevent cannibalization of equipment before the proper authority is received to do so. -provideasetofguidelinefororderlyequipmentdisposalwhenaproperapprovalhasbeen obtained. 21 -ensurethatunusualmachinery/equipmentorscrap is removedfromusable storageoroperating space.-Itcanbeoveremphasizedthatthecannibalized/stripingdawnofequipmentforpartswillnotbe condoned unless the proper authority has been obtained. Unauthorized action of this sort must be considered act of vandalism and must be treated accordingly. 2.10.2. Disposal Criteria Equipmentshouldbeconsideredfordisposalorwrittenoffiftheysatisfyoneormoreofthe following criteria (Tesfaye, 2002): -Beyond repair: The equipment is totally destroyed and obviously beyond economic recovery. -Partsunobtainable:repairpartsfortheequipmentarenotinthestockorunobtainable because the, model is obsolete or unsupported by the manufacturer or his agents. -Repaircostsunsatisfied:restorationrepair,whilepossible,cannotbeeconomically justified because :- planned future utilization of the equipment is low; operating costs will begreaterthanthatofnewreplacementmachinery/equipment;workproductivityofthe restores machinery/equipment will remain unacceptable low.-Inferiorproductivity:theequipmentpossessesaproductivityprofileinferiortothatof comparable machinery making its unit output costs higher. -Equipmentmissingorstolen:theequipmenthasbeenstolenorremovedwithoutyour knowledge or authorization or has been missing for two years. 22 2.11. Maintenance Scheduling (MS)Amaintenancescheduleindicateswhattheworktobedoneis,howoftenitistobedone,by whom it is to be done, and the estimated time required to complete the work. Separate schedules havetobepreparedforeachtypeofmaintenanceactivitywhichhastobecarriedoutoneach type of items as per the facility registered (Gopalakrishinan & Benerji, 2006).MS is the essential arrangement by which maintenance is done. The guide lines for the maintenance engineer should belaiddownbythemanufacturer.Butonecantdependexclusivelyontheseinstructions.In order to have a workable system, the actual condition s of the operations, the severity of the use, and the skill level of the operators etc will have to be kept in mind. The decision on the sequence is based on the priority, the availability of the spares and materials. Schedulingcanbeeffectiveonlyifthereisconfidence,mutualcooperationandunderstanding the production and the maintenance department (Palmer, 1999). Thefirstelementofschedulingprogramistoshortenthedelayofthetimeadefective equipment piece is identified and the time it can be worked on. The second element of program istoimprovetheschedulingsystemsmemory.Whenapieceofdefectiveequipmentis identified often no action will be taken on it immediately, because operation needs the equipment online.Inthissituation,theschedulingsystemmaynotrememberthattheequipmentis defective,unlessthereisanexplicitrecordkeepingsystem.Thesecondelementofthepolicy implements an efficient record keeping (Gopalakrishnan & Benerji, 2006). 2.11.1. Scheduling Process Every day in the morning the supervisor assigns work individually to each worker and keeps him informedastowhatworkexpectedofhimthenextday.Thisallowtheworkerenoughtimeto know what he has to do, and having advance intimation, there can make timely arrangement for the spares, the materials and the tools which he will need the next day and thereby get ready for the job to be done in advance (Sharma, 2003). 23 For success in scheduling process we should have full information so that the scheduling can be optimalvalue.Theinformationneededforthisaremanpoweravailabilityreport,lateststatus report of material and production plan, backlog report, and maintenance request received etc. 2.12. Maintenance Record and Documentation Maintenancerecordingofinformationhastobedecidedastowhatkindorsimpletypeof informationisneededandthekindofuseitwillbeputto,onlythenthedepthanddetailto which recording needs to be done can be decided. A large variety of farm is different formats are available, from the simplest to the most compressive ones for use in the organization. History record card: is one of the most use full and essential records which must be maintained in the maintenance control. A periodic analysis of this document will help the maintenance in a variety of ways: 1.Thefrequentlyrepeatedfaults,findingtheircauseanddecidingaboutthecorrective action to be taken. 2.Finding out the parts and spares needing frequent replacement and there causes. This will determine the exact cause and help take corrective action. 3.Ifbreakdownoccurssoonafterthemaintenanceteamhasworkedthemachinery/ equipment,thenitmayindicateaweaknessinthemaintenancequalityorevenonthe inadequacy of skill level. 4. Certain repeating failure which occurs despite spares being replaced may either indicate the use of spurious parts, or that the spares are in need of improvement from the design or materialcontentpointorneedofbeingproducedundertheguidanceofbetterquality assurance programmed. 5.Certain fault and break down which may occur due to mishandling by the operating staff would need to be set right by imparting training for the proper handling of the equipment. 6.decisionregardingequipmenttobeselectedforstandardizationandforreplacement become much easier when the complete background is available for comparison between thedifferentmakesofthesameequipmentfromthepointofviewofownershipcost, maintenance cost, down time cost, and availability. 24 2.13. Spare Part Management (SPM) Machines worth amillions of money are idle due to shortageof spares; on theother hand huge stocksofsparesarelyingwhichperhapsmaynotbeused.Thisemphasizestheneedofpaying attentiononthemanagementofspares,improvementinthecapacityutilizationandcost reduction can be achieved by better spare part management. The objective of SPM is to provide rightpartsinrightquantity,inrightplace,atrighttimeandatrightcost.Thepartmustbe codified and classified.Various cost reduction techniqueforspares help themanagertocontrol large number of spare part selectively and efficiently which helps to utilize his energy to problem areas resulting in optimal use of his efforts (Sharma, 2003). 2.14. Determination of Cost of Agricultural MachineryAgriculturalmachinerycostcanbedividedintotwocategories.Theseare;annualownership cost,whichoccursregardlessofmachineuseandoperatingcostwhichvarydirectlywiththe amount of machine use. The true value of their cost is not known until the machine sold or worn out but costs can be estimated by making a few assumption about machine life, annual use, and fuel and labor price (Hunt, 1983). Thedistinctionbetweenfixedcostandrunningcostisnotalwaysclearout(Goense,1995), whilstdepreciationorlossinvalueofmachineswithageistestedasafixedcost.Thisisonly realistic under average condition of operation. As economic life of the equipment is reduced by heavyusage,partofdepreciationchangeisdependentofutilization.Conversely,repairand maintenanceistakenasrunningcostbutmaintenancemaystillberequired,evenwhenthe machineislittleused.Thispartofrunningcostislinkedtodurationofownership(Witney, 1988). 25 2.14.1. Fixed Cost Depreciation Depreciation is a cost resulting from wear, obsolescence and age of the machine in which every machinelossesitsvalue(Hunt,1977).Wheneveramachineorequipmentperformsauseful work its wear and tear is bounded to occur. This can be minimized to some extent by proper care and maintenance, butcannot be totally prevented.Its efficiencyalso reduces with lapse of time andatonetimeitbecomesuneconomicaltobeusedfurtherneedreplacementbynewunit. Repair cost tends to increase as machinery age increases (Kasten & Dhuyverter, 2008). Therefore,wecansaythatefficiencyandvalueofmachineconstantlydecrease(reducewith lapseoftimeduringusewhichisknownasdepreciation.So,somemoneymustbesetaside yearly from the profit. So that when that equipment becomes uneconomical it can be replaced by newone.Depreciationisabookkeepingmethodofdistributingthecostofcapitalitemover more than one year of useful life (economic life). Economic life depends upon a period you plan tousetheitem.Theeconomiclifeofmachineisthenumberofyearforwhichcostsaretobe estimated. It often less than the machine service life. A good use of thumb is to use an economic lifeofthentotenyearsformostnewfarmmachinesandtwelveyearsfortractorsunlessthe machine traded or sold sooner (Hunt,1983). Obsolescence:Supposeanownerpurchasesamachineforhisproductionbutaftersome durationabettermachinecomesinthemarket,whoseproductionrateisveryhighand economical although the old one is efficient but becomes out of fashion and uneconomical due to new better machine which has come in the market. This is known as obsolescence. Consideration of this factor is of much important and some money should be set aside from profit for this case (Sharma, 2003). In general, obsolescence is a depreciation of existing machinery due to new and better invention and new design of equipment. Types of depreciation -Depreciation due to wear and tear-Depreciation due to corrosion and rust 26 -Depreciation due to accident-Depreciation due to differed maintenance and negligence Method of determining depreciation A. Straight line method Withthismethodanequalreductionofvalueisusedforeachyearthemachineisused.This method can always be provided that the proper salvage value is used for an age of the machine. But salvage value gives the price of the machine when sold.Hunt (1983) described depreciation with SLM as in equation 3.1. L S PAAD=3.1.Where: AAD= average annual depreciation (depreciation amount by year) P= purchased price of the machine S= (salvage value =current list price remaining value of the machine) L= economic life of the machine (useful life) Figure 2.4 Straight line method Thepurchasepricerelatedtomachinesboughteitherneworsecondhandandtheresalevalue afteralongperiodofownershipmaybecomethescrapvalue.Duringtheearlylifeofthe machine, therefore, both the resale value and the period of ownership must be assumed. 27 The advantage of straight line method of depreciation is that it is simple and straight forward. It is most suitable for estimating costs for the entire life of the machine (Witney,1988). The annual depreciationchargedcanthenbeconsideredasthesumwhichmustbesetasideeachyearin order to replace the machine with identical model at the end of the period of ownership (Norvel, 2007).This,ofcourse,assumesthatthevalueofmoneyremainsthesameandthatthe depreciation fund is not reinvested, that is no inflation and interest is not considered. Thestraightlinedepreciationmethodis,however,anoversimplificationandignoresthemore raped depreciation which occurs in the early life of the machine. This is very important when a machine is traded after a short period of ownership (Goense, 1995). B. Sum of the years Digit Method Sum of digit method is historical depreciation method that results in a more accelerated write off than SLM. Salvage value is countered in the method. It is more accurate method to estimate true valueofthemachineatanyagebecauseofannualdepreciationratedecreasesasmachineget older. Steps to be followed to determine SDM: Add up number representing the year covered by the depreciation period. divide total depreciation by the sum of digit of the year for depreciation period. Proportion the depreciation in reverse of the years over which depreciation occurs. D= ) ( S PYDn L .3.2 Where: YD- the sum of years digit method (1+2+3++L) n- The edge of the machine at the beginning of the year in question. D- Depreciation L- Economic life p- Purchase price S-salvage value 28 C. Declining Balance Method The declining balance method of depreciation better reflect the actual value of a machine at any age than either of straight line depreciation method or the sum of the digit method (Sharma,2003).Withdecliningbalancemethod,machinerydepreciatesadifferentamountof each year, but the annual percentage of depreciation (decimal rate depreciation) remains constant or the same (Witney, 1988). Simply declining balance method works on the basis that whatever the value of the machine has at the beginning of the years, it will be worth a fixed percentage of that value of one year later. It depreciates in the early year and later slowly. Therefore, it is better todepreciatemuchduringtheearlyyearwhentherepairandrenewableisnotcostly(Bowers, 1992). Bowers (1992) describes depreciation with declining balance method as equation 3.5: YLrC RV

= 1 3.4 nRV D = -1 + nRV3.5Where:RV-remaining value of the machinery C-initial cost of the machinery. r- Rate of depreciation, r is between 1 and 2. r=2 for new machinery and if requires double declining balance and under accelerated depreciation. r=1.5 for used machineryL= machinery use full lifeY= age of the machine in which depreciation is determined. lr Decimal rate of depreciation Therefore, depreciation is equated as: DP=Rvn-Rvn+13.6 Theneedtouseun-exponentmakesthemethodmorecomplexandtedious.Itbetterreflects, however, the actual value of a machine at any age and is more use fullfor calculating the value of asset in a balance sheet(Witney, 1988). 29 Age (year) Figure 2.5.Declining balance depreciation showing the additional effect of a first year correction factor. Eventhoughthemethoddoesntaccountforthefirstyeardepreciationwhichtendstobeat considerablehigherratethaninlateryears.Byintroducingafirstyearcorrectionfactortothe resalevaluecalculation,theaccuracyofthedecliningbalancemethodcanbeimprovedstill further according to Witney (1988). Interest Interestchargesareusuallycomputedwhenoperatingcostsarebeingdeterminedandmaybe calculatedsothattheresultwillbeconstantorequalyearlychargesthroughoutthelifeofthe machine.Theinterestratecanbevaryingbutusuallyintherangeofsixtotwelve(6to12%). Interestofagriculturalmachinerycanbedeterminedasindicatedinequationbelow(William, 2009): rate InterestD S PI

+ +=23.17 Where: I- Interest rate (birr) P- Purchased price (birr) S- Salvage value (birr) D-depreciation (birr) AccordingtoBowers(1992),interestisalargeexpenseitemforagriculturalmachinery.Itisa direct expense item on borrowed capital. Even if cash is paid for purchased machinery, money is 30 tied up that might be available for use elsewhere in the business. Interest rate varies but usually will be in the range of 8 to 10. Tax Tax differs from country to country, according to Goense (1995). Tractors and self propelled machines may have yearly cost for registration plate in same countries. Vat and sale taxes are to be included in the purchase price. Bowers (1992), describes tax, a paid on farm machinery for place that do have property as for other properties. The cost estimated equal to one to two (1-2%) of purchased price of the machine at the beginning of the year often used. Tax can be determined by equation here below (Hunt, 1983): rate tax oprice parchaseTax .. 55 .2.

= 3.18 InsuranceInsurancepoliciesareusuallycarriedonmoreexpensivemachineswhiletheriskisusually assumedonthesimpler,lessexpensivemachines.Theannualchargeforinsuranceorriskis assumedtobefrom0.25to0.5percentoftheremainingvalue(Bowers,1992).Accordingto Goense (1995), insurance is required for tractors and self propelled machines to cover third part liability when driving on public roads. This in most cases 1% of purchased price. For other equipment a cover against fire and accident is required which is about 0.25 percent of purchasedprice.Ifmachineryisnotinsuredtheownerwillhavetotaketheriskofaccident himself, which on the average will near the insurance cost. Other alternative is used as equation below if the real insurance rate is known (William, 2009): I= rate insuranceD S P..2

+ + 3.19 Where: I= insurance rateP= purchased priceS= salvage value31 Shelter /housing Machinery shelter has not been shown to increase machinery life, but it can increase a machines resale value (Hunt,1983). Apart from machines repairandmaintenance, a tidymachineryshed demonstrate amanagerial commitment togood machines care. A purpose built machinery store requiresenclosed work shop facilitiesgaragingfor self propelled equipment (Witney, 1988).In theNetherlands,itiscommonthat,machineryisstoredundercover(Goense,1995).Thereis tremendous variation in the machinery housing for farm machineries for providing shelter, tool: maintenanceequipmentformachinerywillresultinfewerrepairinfieldlessandless deteriorationinmechanicalpartandexperienceforweathering(ASAE,1999).Spacerequired data for machinery were estimated from the transport dimension. Even if insurance and housing make up small part of ownership cost of a machine. Housing costs are estimated by multiplying the housing rate per square meter by the meter of housing required Capital Recovery of Agricultural Machinery Capital recovery is thenumberof dollars(birr that would have tobe setaside eachyear just to replace(repay)thevaluecostduetodepreciationandpayinterestcosts.AccordingtoBowers (1992),theannualcapitalrecoverycostisfoundbyformulaindicatedandforcapitalrecovery factor data see appendix 3. CR= [DTCRF] + [SvRI]3.20 Where: CR- Capital recovery DT- total depreciation CRF- capital recovery factor Sv- Salvage value RI- interest rate 32 InflationInatimeofsubstantialmomentaryinflation,machinerymanagermustincludetheeffectof inflationonmachineryplanning.Inflationcausesincreasedpricesforgoodsandservicesin future years. Decision involve a time span of more than one year are made using value expressed inconstantdollars(birr),Dollarsfromwhichtheeffectofinflationisdeducted.Theeffectof inflation; the inflation factor is equal to (1+Ii)n . Where: Ii-is inflation rate and n is the number of years under consideration. Table 2.1 shows the inflation factor used to obtained constant dollar value. Time Value at 10 % interest Inflation factor 7% annually Real rate of return Today111 1 yr1.11.071.028 2 yr1,2101.1451.057 3 yr1.3311.2251.086 5 yr1.6111.4031.148 10 yr2.5941.9671.318 25 yr6.7273.871.737 The price of 1000 dollars machine would be expected to rise to 1000+1.967(1.07)10 =1967 in 10 years. 10 years from now, the price of the machine in constant dollars as of today 1967/1.967 or 1000dollars.Thepriceofthemachinetodaybasedonconstantdollarsof5(fife)yearsageis [1000/1.403] or 713 dollars (Hunt, 1983). 2.14. 2. Variable Cost Repair and maintenance cost Maintenanceandrepairsareessentialinanefforttoguaranteeahighstandardmachine performanceandreliability.Reliabilityisameasureofconfidencewhichcanbeplacedona machine to complete a planned duty cycle with component failure (Witney, 1988). Repairandmaintenancecostoccurduetoroutinemaintenance,wear,tearandaccident.Repair costforparticularmachinevarieswidelyfromgeographicalregiontoanotherbecauseofsoil 33 type,rock,climateandothercondition.Withinlocalarearepaircostvariesfromfarmtofarm because of different management policy or operator skill (Bowers, 1992). Repairandmaintenanceofmachineryisneededtokeepthemreliableandtoguarantee performanceandworkofgoodquality(Goense,1995).Itisatendencytoincreaseasthe machinery gets age and represents the largest impact on the diagnostic cost benefits. If you hold escalatingcostdownwitheffectivescheduledmaintenance(PMinspection)adriverwrittenup control and timely components replacement prior to failure as long as obsolescence and technical lifedonotsurface.Youcankeepthemachinerylongerbeforecosteffectivereplacement (Demise, 2002). Over the life of the machine components become worn. Excessive wear adversely affects output andincreasesthelikelyhoodofthefailures.Thisintroducesthefinancialriskbyprolonginga critical operation either through slowly rate of work or through unforced break down.

Costcomparison:estimatedrepaircostversusactualcostcanbeshownweakly,fortnightly, monthly and annualy. This projection will indicate if actual costs are more than, or less than, or equaltoestimatedcost.Ifnot,byhowmuchhasitdeviated?Keepinginmindtheactualcost against the funds provided for in the budget is a control function (Karim, 2008). The best data for estimatingrepaircostisoperatorsownrecordsofpastexperiences.Goodrecordindicates whether the machine has had above or below average repair cost and when a major overhaul may be needed without such data, repair cost must be estimated from average experiences. The value in appendix (2) shows the relationship between the sum of the repair cost for a machine and total hour of use during the life time based on historical repair data (ASAE, 1996). The cost of repair and maintenance exists of: -the cost of labor and parts for repair and maintenance ; the direct cost and-the cost of work not carried out in time because of down time; indirect cost The indirect cost can be very high in case of downtime during a period with high timeliness cost. Theycanbecalculatedwhentheoccurrencesofdowntimecanbequantified.Thedowntime hours are subtracted from available time and consequences calculated.The direct cost of repair and maintenance are presented on two different ways: 34 -Thetotallifeofrepairandmaintenancecostsasapercentageofthemachineslist price and-Accumulatedrepairsandmaintenancecostsasapowerfunctionofaccumulated machine use.When only total life if repair and maintenance costs are used it is assumed that they accumulate linearwithaccumulatedlife.Thevariablerepairandmaintenancecostsperhourarefollowing this approach dependent of intensity of machines use (Goense, 1995). RCH=Pp ) ( )1001(THTR3.21Where: RCH- repair and maintenance cost per hour Pp - purchase priceTR- total life repair cost as percentage of PP (total accumulated repair cost) TH- total technical life (total accumulated hours). Thesecondapproach,thepowerfunction,describesbetterthetypicaltrendinrepairand maintenancecosts.Lowcostintheinitialstageofthemachinelifeandincreaseinlaterlife (Witney, 1988). The power function is: 3.22 Where: ARM- accumulated repair and maintenance cost for n year as a function of accumulated hours. CLP (PP) - current list price AH- accumulated hoursRF- repair factor n- Number of years (age of the machine) in which RM cost is determined. The coefficients of various implements are present in appendix (1)If the machinery accumulated hours is greater than estimated useful life the equation be comes210001RFnn nAHCLP RF ARM


=221100013.33 Repair and maintenance cost for n years of machinery will be calculated by using equation 3.24 here under: | |1 =n n nARM ARM RM 3.24 Theaccumulatedrepaircostsarebasedontheaccumulatedrepairandmaintenancecostto reduce the availability of the costs due to different in timing of the repairs (Ahimed, 1999). The accumulateduseforthetractorisgivenasengineshoursdividedby1000,whilstthatfor machineryisgivenasoperatinghoursdividedby1000.Astheenginehoursarerecordedona tractorhourmeterwhichisonlycorrectataparticularenginespeedforthetractormodels,an underutilized tractor, operating at low engine speeds, will record a lower hour meter reading than a tractor operating at maximum power for the same period. Thus, the accumulated use based on homemeterreadingpartlyaccommodatesfordifferentlevelofpowerutilizationinthe calculating of tractor repair cost 2.14. 2.2.Fuel CostFuelconsumptionofagriculturalmachinery/Tractor/isgovernedbytheamountofenergy demandedatthedrawbarorthroughthepowertakeoff.Inordertorelatethisnetenergy requirement to the tractor fuel consumption, it is necessary to account for the efficient of power transmission system, tractive efficiency and the loading on the engine. Tractoroperatesthroughouttheyearonarangeoftaskvaryingfromheavydutyworksuchas Ploughing or forage harvesting to light chores. Even for Ploughing, the fuel consumption on an individual tractor varies considerably over the duty cycle. And the average fuel consumption for peakpower.Theaverageengineloadingthroughouttheyearis55percentofthemaximum power take off (P.T.O) of the tractor. 36 Figure2.8.Specificfuelconsumptionforadieselengineoperatingatvariouspowerutilization ratios. The amount of fuel consumed depends on: -the energy requirement of field operation-the efficiency of power source, determined by transmission and tractor efficiency-fuel efficiency of the power source and-The type of fuel used (Goense, 1995). AccordingtoHunt(1983),fuelcostiscalculatedindependentlyforgasolineanddiesel. Therefore,Fuel cost for gasoline = max. P.T.O hp 0.068price of gasoline hour of use 3.26Fuel cost for diesel = max. P.T.O hp 0.044price of diesel hour of use3.27 2.14. 2.3.Lubrication (Oil) Cost Lubrication plays a very important and effective role in planned or PM maintenance and rightly therefore,itisbasictomaintenanceplanning.Ensuringlubricationcananddoesreducelarge numberofbreakdowns.Theroleoflubricationwheremachineryisexposedtotheravagedust and grime or to moisture and salt laden sea breezes or the punishment inflicted up on machinery and plant in the chemical industry as a whole cannot be an over emphasized. AccordingtoGopalakrishinan&Benerji(2006),properlubricationhelpsto:preventsrust formation,reducefriction;thusreducewear,scoringandseizureandeconomiesonpower Consumption,Washesawaywastematerialandparticles,increaseequipmentlifeandreduce heat 37 Indoingsothelubricationneedexpenseasthatoffueldoes.Engineneedsperiodical replacement of crankcase oil. Tractors of 25kw need on liters oil for every 300 liters of fuel and tractors of 150kw one liters on every 600 liters of fuel. On average these represents a cost of 5% of cost of fuel (Goense, 1995). According to Nebraska tractors test data, a general rule of thumb can be applied for power machinery is 15 percent of fuel cost. For non-power machinery /equipment 5%of purchased price is used. 38 CHAPTER THREE CASE STUDY OF WONJI SHOA SUGAR FACTORY (WSSF) 3.1. Historical Background of the WSSF CommercialsugarcaneplantationwasstartedinEthiopiain1951byDutchcompanyHangler VondrAmsterdam(HVA)whichwasgrantedaconcessionof5000hectorsforestablishinga sugar estate and a factory in the Wonji plain which lied downstream of Awash River. On March 20th in 1954, Wonji sugar factory had the first milling season and produce 6,000 tons of white sugar(first bag of Ethiopian sugar).In order to meet the rising demand of sugar in the localmarketanother1600hectorsoflandwasgrantedtotheHVACompanybytheEthiopian government thus totaling 6600 hectors. Duringthattime,eventhoughtheexactdatawerenotfound,thefactorybeganitsagricultural (activity) with few machinery (tractors and heavy machinery) and little man powers. 3.1.1. Objectives of the Enterprise AccordingtotheCouncilofMinistersregulationNO.89/1992theobjectivesofWonjishoa sugar factory are the following; grow sugar cane and exploit other sugar yielding points. process and produce sugar products and sugar bye study, plan and implement various sugar development programs. carry out scientific, industrial and agricultural research and survey toenhance its program. possess and develop fulfill its purposes. distributeand sell locally and export sugar and similar products includingnon-sugar products from its farm and factories. engage in other industries, conductive to the attainment of its purposes. 39 3.1.2. Mission To provide sugar, Desta candy, sugar bye product (molasses) to the required demand to achieve the set objective. 3.1.3. WSSF Production Capacity The production capacity of the factory for 2000 E.C fiscal year was stated in Table 3.1. Table 3.1 2000 E.C fiscal year production capacity of factory. ProductSugarDesta candyMolasses Unit of measurementTonTonLiters Required out put7600240261440 Achievable8231.12213.3265350 achieved7464.574.623199454 3.1.4. WSSF Organizational Structure and Set Up Thecompanyhasthreedivisions,namelyagriculturaldivision,factorydivision,financeand human resource division and has fifteen departments. Thetopmanagementisorganizedinteam.Themanagementteamconsistsofthegeneral manager, agricultural operations manager, and human resource and finance manager. Out of two activitiesi.e.factoryactivityandagriculturalactivity,thesecondoneplaysthegreaterrolein productionofsugarcane.Underthisactivity,landpreparation,plantation,harvestingandfield equipmentserviceareincluded.Fortheproductionofsugarandmolasses,Agricultural machineries/ equipment take a lion share. From the beginning of land preparation to the last step to transportation of sugar cane to the factory these field equipments/ machineries require a great attention.Theyshouldbehandledandkeptproperly.Misshandlingofenormousamountofall these machineries will result to loss and reduction of sugar products. Health care of machineries (tractorsandheavyequipments)willoptimizetheproductionofsugar,unlessthefactory graduallyleadstoshutdown.40 Fig.3.1 WSSF organizational flow chart Managing board General Manager Agricultural operation manager Finance and human resource manager Factory and logistics division manager Plantation department Land preparation & cultivation department Harvesting department Field equipment service department Civil engineering department Wonjisugar factory Shoa sugar factory Logistics department Confectionery works Finance department Human resource department Medical service department 41 3.2. Status of Agricultural Machinery Duetotraditionalrecordingandreportingsystemofmachinery,itisdifficulttoconducta detailedanalysisofmachinerystatus.Fieldequipmentservicedepartment(FESD)ofWonji ShoaSugarFactory(WSSF)hasnodocumentthatshowsclearlytheconditionandstatusof machinery.Machinerystatuscanbeeasilyidentifiedifaplannedmaintenanceandcondition monitoringisimplemented.Differentmachinerieswithdifferentservicelifeandthesame machineries with different activities could be at different status. The performance of all of them should be known by performance testing of engine even though clear record of machinery status doesnotexist.Fromtheinterviewheldwithwheeltractorsandheavyequipmentsectionhead the current status of machineries shown in the Table 3.2. Table 3.2 quantity and status of machinery in FESD of two sections of WSSF s. noMachine type modelCurrent condition and quantity of machinery Good Fair BadTotal 1MF tractors 178--44 2,,290--22 3,,398-527 4,,42604318 5,,53651-23 6,,6604--4 7,,53408--8 8,,4653--3 9,,44012-113 10FNH tractors 80-66s3238 11,,110-903-14 12Same tractors 130-DT18-422 13Belarus tractors 9201--1 14Styer tractors 9094--88 15Heavy equipmentDifferent models 1591438 total721942133 %54.12%14.28%31.57%

42 Figure 3.2 current condition of machinery Vs quantity in Percent Thosemachineries,whichareworkinganddeliveringserviceandrelativelylowinoperation cost, well maintained and recent ones are categorized asgoodmachineries. Under this category thosemachin