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

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CANDIDATE�S DECLARATION

I hereby declare that the work which is being presented in this thesis entitled �Investigation into

Effectiveness of Agricultural Machinery Maintenance Management: The Case of Wonji Shoa

Sugar Factory� in partial fulfillment of the requirements for the award of the degree of masters of

science in Agricultural Machinery Engineering is an authentic record of my own work carried

out September to April 2010 under the supervision of Dr.-Ing Zewdu Abdi Department Of

Mechanical And Vehicle Engineering, Adama University, Ethiopia.

The matter embodied in this thesis has not been submitted by me for the award of any other

degree or diploma. All relevant resources of information used in this thesis have been duly

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 Signature Date

Simie Tola (Dr.) ____________ April 20, 2010 2. Co-Advisors Signature Date

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 Signature Date

________________ ________________ ____________

Advisor Signature Date

________________ ________________ ____________

Co-Advisor Signature Date

________________ ________________ ___________

Examiner (Internal) Signature Date

________________ ________________ ____________

Examiner (External) Signature Date

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ACKNOWLEDGEMENTS

I would like to express a sincere and special Thank to my advisor Dr.- Ing Zewdu Abdi for his

continuous support, guidance, creative ideas, thorough correction and suggestions greatly

contributed in doing this thesis.

I would like to thank also my co-advisor Dr. Simie Tola. Special thanks to professor Chandra

Rao for his indispensable help in editing, thorough correction and continuous 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.

I would like to acknowledge wonji shoa sugar factory (Enterprise) management and workers

who insisted me to collect necessary data. Especial thanks to Ato Yohannes Tamir (head of field

equipment service department), Ato Habtamu Awugichew (field equipment service department

planning and inspection head), Ato Esayas Madebo (wheel tractor section head), Ato Taddese

Bekele (Heavy equipment section head), Ato Heliso Heramo, and all other works of enterprise

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

help and encouragement in all aspects of the thesis work.

Finally and most importantly, my heartfelt affection goes to my wife Fatuma Sheka and my

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

Acronyms. -----------------------------------------------------------------------------------------------

Abstract. ------------------------------------------------------------------------------------------------ ii

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

2.5.1.1. Preventive Maintenance (PM) ---------------------------------------------------12

2.5.1.2. Predictive Maintenance (Condition Directed) ---------------------------------14

2.5.1.3. 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

2.14.1.1.1. Method of determining depreciation----------------------------26

2.14.1.2. Interest----------------------------------------------------------------------------29

2.14.1.3. Tax--------------------------------------------------------------------------------30

2.14.1.4. Insurance-------------------------------------------------------------------------30

2.14.1.5. Shelter /housing-----------------------------------------------------------------31

2.14.1.6. Capital Recovery of Agricultural Machinery-------------------------------31

2.14.1.7. Inflation --------------------------------------------------------------------------32

2.14.2. Variable Cost-------------------------------------------------------------------------------32

2.14.2.1. Repair and maintenance cost--------------------------------------------------32

2.14.2.2. Fuel Cost-------------------------------------------------------------------------35

2.14.2.3. 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 ----------------------------------------------------47

Table 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. -------------------60

Table 3.13 Machineries annual performance plan---------------------------------------------------63

Table 3.14 Work shop equipment----------------------------------------------------------------------64

Table 3.15 Types of machinery and respective useful life------------------------------------------68

Table 3.16 Effect of annual working hours on machinery useful life ----------------------------69

Table 3.17 Depreciation cost of machineries in SLM and DBM----------------------------------70

Table 3.18 CAT D4E SR capital recovery cost with age. ------------------------------------------73

Table 3.19 Effect of age on insurance cost -----------------------------------------------------------74

Table 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-----------------------------------77

Table 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 3.10c Yearly 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 of

shelter

Appendix -8 Dusty Work Shop Area

Appendix-9A Comparison of theoretical, actual and variance of fuel and oil cost of cameco

loader-2254

Appendix-9B Comparison of theoretical, actual and variance of fuel and oil cost of Case

Excavator, 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 Same

MF 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

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Acronyms 2WD Two Wheel Drive

4WD Four Wheel Drive

AH Accumulated Hours

ARM Accumulated Repair and Maintenance Cost

ASAE American society of agricultural Engineer�s standards

CAT Caterpillar

CLP Current List Price

CM Corrective maintenance

Co Complete Overhaul

CR Capital Recovery

CRF Capital Recovery Factor

DBM Diminishing Balance Method

DP Depreciation

DT Total Depreciation

EUL Estimated Useful Life

EXCV Excavator

FC Fuel Cost

FD Ford

FESD Field Equipment Service Department

FNH Fiat New Holland

HES Heavy Equipment Section

Hp Horse Power

HVA Hangler Vondr Amsterdam

I Inspection

LPCD Land Preparation and Cultivation Department

MF Massey Fergusson

MS Maintenance Scheduling

NTAF Nazareth tractors assembly factory

OC Oil Cost

PdM predictive maintenance

PM preventive maintenance

x

Po Partial Overhaul

PP Purchase Price

PTO power takeoff

RF Repair factors

RI Rate of Interest

Rv Remaining Value

S Servicing

SdM scheduled maintenance

SLM straight line method

SPM Spare Part Management

Vs Versus

WSSF Wonji Shoa Sugar Factory

WTS Wheel Tractor Section

YD Years Digit

xi

Abstract This thesis is studied on the subject ��Agricultural Machinery Maintenance Management

system�. It is found that improved maintenance system assists to increase productivity of the

enterprise/Wonji Shoa Sugar Factory (WSSF) by increasing machinery work effectiveness and

availability. The enterprise must have effective maintenance plan and replacement policy of

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.

This can be done through planning to build capacity of maintenance staff and implementing

preventive maintenance in accordance with maintenance discipline required so that frequent

failure of machinery will reduce so as to increase machinery availability. Generally the study

was conducted by gathering data from primary and secondary sources, interview and

observation. Maintenance management parameters like training of repair crews and operators,

educational profile and experience of maintenance personnel, work shop equipments and

facilities, machineries� annual working hours and working condition, availability of spare part

and maintenance standards were considered. The major finding of study was indicated that

agricultural machinery maintenance management parameters in the enterprise were inefficient

and operating cost was also significantly higher. Proper attention was not given by the factory�s

management. Generally poor maintenance management system practiced resulted to high

expenditure to the enterprise. Based on the findings the researcher recommended the best ways

of improving maintenance activities so as to reduce maintenance expenditure.

1

CHAPTER ONE

INTRODUCTION

Agriculture is the backbone of Ethiopian economy. Eight five percent of our population live in

rural areas of the country and depends upon agriculture (CSA, 2003). Indirectly the urban

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

our country. Nowadays the demand for sugar is rapidly increasing. To fulfill this demand

government and private organizations are investing to plant new factories and implementing the

expansion of the existing sugar cane plantations.

Factories which are producing sugars have so many agricultural machineries which are used to

cultivate farming, applying fertilizer, harvesting cane, and transporting of cane from field. These

machineries play a great role to prepare input to the factory. Effective chain of operation of

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 of 7022 hectors; average annual production of sugar is 700,000 quintal. It

has about 7,000 workers (Yohannes, 2001).

The factory accommodates a large number of agricultural machineries: tractors and heavy

machineries. The factory has a garage which has three sections i.e. tractor section, heavy

equipment section, and light duty vehicle section where maintenance and servicing are taking

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 days it is emphasized

to make machinery work quickly, efficiently, precisely and easily in addition to operators safety

(Kobayash, 2003).

The garage is very old which served for about 48 years with old maintenance management

system. The equipment failures were rectified through breakdown maintenance action while

preventive maintenance is used to reduce the occurrence of failure because the failure of

2

machineries frequently can cause serious economical and social consequences. Maintenance

budget of FESD (field equipment service department) is very high and it increases at the rate of

18.25% production cost per annum. This resulted in reduction of profitability of enterprise and

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

optimizing higher availability of machineries through reducing down time. Higher availability

increases productivity which interns increases the effectiveness of working. Effective

maintenance management is one way of improving productivity. Maintenance is a technical

discipline which plays a great role to maximize the performance, availability and prolong the life

the machinery.

An effective machinery maintenance program and efficient management systems are essential

for economic, valuable and operational safety of machinery. In this paper the researcher

investigated the sources of frequent failure of machineries, high maintenance cost and cost

reduction method. In general, the paper investigated impact (effectiveness) of agricultural

machinery�s maintenance of Wonji Shoa sugar enterprise.

1.1. Statement of the problem The factory garage provides maintenance services for different types of agricultural machineries.

The main important department for this factory is this section. In this section some of the

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

increases the cost of maintenance, and intensive budget has to be provided because of

maintenance expenditure. This also results in reduction of profit of the factory. 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 of the factory�s 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

to the factory�s garage and to provide better maintenance activity. In doing so, the factory�s

garage extended expenditure will be reduced and profit will be high. The first beneficiary will be

Wonji Sugar Factory and other similar institution which can utilize the information developed

within this thesis.

1.4. Research methodology

This study has exploited various research methodologies by exploring their contribution toward

the best success of anticipated results. Hence the study used primary and secondary source of

information. The relevant primary sources contain original, row, uninterpreted and unprocessed

information. The relevant secondary data were collected from maintenance technical manual and

documents, monthly and annual reports of FESD, plantation, harvesting, finance department,

planning and inspection department of the WSSF (enterprise). Primary information was also

gathered using discussion, nonstructural interview, and direct observation on site visiting enables

the investigator to keep relevant data for the study.

Data collection was quantitative and qualitative in nature. Quantitative data is a data which

express anything in quantity, in number, in percentage and can be measured. Qualitative data

which express anything in quality like good, fair, bad, sufficient, insufficient etc. the

methodology has quantitative nature because of the fact that quantifiable measure of variables

can be organized, formulated, analyzed and conclusion was drawn from the sample population

taken.

4

The data required for the investigation was identified and gathered by communicating

maintenance department head, section head, chief mechanics, finance department staff, planning

and inspection team, external relation office, documentation class, plantation and harvesting

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.

Based on maintenance activities like equipment history recording system and service manual ,

machinery periodic maintenance condition were investigated, whether it took place with

accordance of manufacturer recommendation or not.

To determined cost of agricultural machinery sample of machineries were selected based on

type, age, model, horse power and nature of their work. Effect of annual operating of machinery

for a long period of time on machinery�s useful life and depreciation using both straight line and

declining balance method were also determined. Fixed and operating cost, Accumulated repair

and maintenance cost, data were formulated and analyzed by using correlation analysis in order

to compare theoretical with actual costs.

A focused discussion and non-structured interview were held with the respective maintenance

head and section head by visiting them frequently on culture and status of maintenance,

maintenance work shop facilities and equipment and man power capacity. Having the result

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,

so that it continues to have its original product capacity (Gopalakrishinan & Benarji, 2006).

From the above definition, it can be seen that maintenance is necessary to keep any product or

system with a finite life span, operating at an acceptable level, so as to support the needs of the

user or organization.

The maintenance department is one of the greatest losses of profitability that any capital

intensive organization has. An average 40-50% of the capital intensive industries operating

budget is consumed by maintenance expenditure (Ohita, et.al. 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.

Every machine is thoroughly tested and proper attention means, lubrication, cleaning, timely

inspecting, and systematic maintenance. Unless, proper attention is not experienced it resulted to

unplanned shutdown of the company. Thus the maintenance is the responsible for the smooth

and efficient working of an industry and helps in improving the productivity. It helps also in

keeping the machine in the state of maximum efficiency with economy (Sharma, 2003).

2.2. Status of maintenance In the United States, it was estimated that in 1979 over two billion dollars was spent on

maintenance. However, more disturbing than the amount was the fact that approximately one

third of that total was spent unnecessarily. As we continue to the present, there has been no

significant change in maintenance policy, Indicating the unnecessary cost trend is probably still

6

one-third and largest change in the maintenance costs is the amount. Since 1979 maintenance

cost has risen between 10 to 15% per year. If this amount is calculated, it is very likely that the

maintenance expenditure in the United States is now even one-half trillion dollars. Where due

this unnecessary costs occur in maintenance? How can they be controlled? According to

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

work activities. This figure is even more alarming when it is realized that the majority of

maintenance organizations are performing as few as 2 hr of hands-on work. It is not that these

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

becomes important to increasing maintenance productivity and producing substantial

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.

Only about one-third of all maintenance organization uses a job planner to plan maintenance

activities. Most experts agree this is one of the largest potential for cost savings in the

maintenance area. It is estimated that planned versus unplanned work may have a cost ratio as

high as 1:5 performing a $100 planned work could save as much as $400 over performing the

same job in unplanned mode.

The majority of all maintenance organizations either are dissatisfied with or do not have work

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.

Of companies that have work order systems (one-third of all companies) only about one-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

for each craft. Being able to justify employment levels to upper management is a necessary

function of good maintenance management.

7

Of companies that have work order system, only one third compared their estimates of the work

order labor and materials to the actual figures. Again, this means only about 10% of all

organizations carry out some form of performance monitoring. Successful maintenance

management requires performance monitoring.

Of the companies with work order system that allows for feedback, only one-third, again about

10% of all companies, perform any failure analysis on their breakdowns. Most of the other

companies are just parts changers. For an operation to be cost effective, good practice in failure

analysis must be followed.

Over time, another key indicator, in the United States averages about 14.1% of the total time

worked by maintenance organizations. This figure is almost three times what it should be. Since

maintenance is working so much overtime, it again indicates the reactive Situation that is

standard in the industry. Reducing overtime is essential if a maintenance organization is to be

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

problems for the maintenance organizations. Without successful preventive maintenance

programs, maintenance can only react to given situation. Preventive maintenance allows the

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

the organizations feel that preventive maintenance is nothing more than lube routes and

procedures. So once they have these developed, they stop. However, preventive maintenance

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/

facilities and maintenance. Almost three-fourths of all organizations experience problems in

coordinating preventive maintenance with the operations/facilities group. The problem is with

communication. Either the maintenance organization has not communicated the need for the

preventive maintenance or the operation/facilities group is not listening. Good, credible

communication must be established if preventive maintenance is to be effective.

Second only to maintenance labor is the cost of maintenance materials. Depending on the type

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.

A third point of concern for maintenance materials is that maintenance is only responsible for

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

their own site. In most cases, the costs of maintenance repairs are calculated as the cost of

maintenance labor and the maintenance materials to affect the repair. What larger figure that is

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

related areas in order to best assist the objectives and goals of the entire organization. It is a

combination of all technical and administrative action to retain an item in, or restore it to the

state which it can perform its requirement under normal stated condition. In short, maintenance

management can simply be defined as managing the maintenance activity to ensure the

availability of equipment and facilities and keeping the downtime to a minimum. As such

maintenance management supports the effective operation process by eliminating and reducing

the frequency and severity of equipment failure (Teklehaimanot, T.2007).

In general the main objectives of the maintenances are (Sharma and Gopalakrishinan,.2003 &

2006):

-to ensure maximum availability of plant, equipment and machinery for productive

utilization 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 can be safely said that the primary objective of maintenance department is

to extend helps to achieve this goal by creating capabilities within the enterprise to earn profit.

Since the ultimate objective is profit, the production infrastructure and facilities have to be

maintained at as minimum cost as possible with maximum efficiency and operational

availability.

The main objectives of properly run of the maintenance department is to have plant, equipment,

and machinery available for productive utilization during the scheduled hours, operating to

10

agreed standard with minimum waste and minimum total cost. The total cost is the sum of

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

is the objective for the maintenance to achieve: because at that level we get the minimum

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

will be achieve by maximizing performance and quality equipment/machinery reducing cost.

Furthermore, in order to continuously perform their intended mission or be available to perform

their mission we needed, the following factors have to be analyzed and determined thoroughly

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. With this regard, during designing, manufacturing and assembling activities, care must

be taken in order to maintain high reliability of operation at accepted added cost. According to

Sharma (2003) reliability is the capability of equipment works well and works whenever called

upon to do the job for which it was designed. The general accepted definition of reliability is the

probability of a device performing its purpose adequately for the period of time intended under

the operating condition encountered.

Maintainability: the ability of machinery/equipment under stated condition of use to be retained

or restored to estate in which it can give its original performance, which maintain is performed

under stated conditions using stated procedures and resources. Therefore the aim of

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: According to Demise (2002) availability performance is a measurement of

maintenance efficiency and can be defined as measurement of performance of equipment in the

terms of ability to operate without problem in despite of disturbance and limitation of

maintenance resources.

Human factors ergonomics: human factors refers to the design system or a product/ service

with human being in mind that is the design for operability and ease of maintenance

consideration includes physical dimensions of the human body, human sensory factor,(sight,

12

hearing, feel or touch, smell, Physical factors the effects of environmental stress on the body)

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

use full products by following scientific laws in an economic ways which will be achieved by

maximizing performance and quality while reducing costs. In order to produce facilities,

transport and cargo perform agricultural duties machineries /vehicles are assembled by designing

and manufacturing their components with limited life span. Moreover, errors during designing

and manufacturing might result in lower requirement life. Therefore, equipment designer have to

consider maintainability of equipment before it is manufactured. Maintenance is a discipline of

engineering which tries to maximize the performance of machinery and to prolong the life of

capital equipment (Demise, 2002). Maintenance consists of all activities undertaken to keep

equipment functioning with its original performance or to restore its original performance.

2.5.1. Category of Maintenance

2.5.1.1. Preventive Maintenance (PM) PM is sometimes termed as planned maintenance or scheduled maintenance or systematic

maintenance. It is an extremely important function for the reduction of maintenance cost and

prevents the occurrence of failure before they develop to a breakdown or interruption of

operation (Demise, et.al., 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�.

Scheduled maintenance (SdM) is always economical than unscheduled maintenance as well all

knows that �a stitch in time saves nine�. Best safeguard against costly breakdown is to inspect,

lubricate, and check up the equipment as frequently as possible. To take full use of machinery

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

the basis of importance of the machines, tear and wear of the machines and its delicacy. Thus

periodic inspection or checking helps to find out the reason leading to breakdown and rectify

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

required as compared to that of break down repair and thus down time is reduced (Sharma,

2003).

PM includes the following important function. That is; inspection and check up for internal and

external, servicing which include cleaning, cooling and lubrication, planning and scheduling ,

recording and analyzing, training of maintenance staff and strategy of spare part (Ladet, 2009).

For the success of preventive maintenance sound training is essential for the maintenance

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)

According to Taylor (2003), equipment that is operated can fail and not all failures can be

prevented. Preventive maintenance forms the backbone of a planned maintenance system. PM

takes either fault finding (inspection) or preventive replacement. The routing of time directed

Preventive maintenance

Indirect PM, Condition based maintenance

Direct 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

standard daily and weekly routing that encourages systematic planning and performance of

maintenance task.

2.5.1.2. Predictive Maintenance (Condition Directed)

Predictive maintenance (PdM) can be defined as a method of surveillance used to indicate as to

how well the machine is, while performing its intended task , a good planned maintenance

system has a heavy emphasis on condition directed tasks (Tylor, 2003). According to

Gopalakrishinan & Benerji (2006) PdM activity conducted to prevent failures before it happens

using measuring and condition monitoring device to detect wear stages. According to Sharma

(2003), condition monitoring is the condition based maintenance and is concerned with

extracting information from machine to indicate its condition and to enable them to be operated

and maintained with safety and economy and also to maximize the availability of the

machinery/equipment.

In today�s industry, machineries are subjected to sever condition and put to continuous operation.

To be able to get the maximum number of on stream days of operation, the system of

maintenance operation should be such that it will reduce downtime on the absolute minimum.

Hence the continuous plant monitoring and diagnosing the actual condition of the equipment /

machinery on stream non-destructive testing method being increasingly used. The objective is

the ability to predict an impending failure which could cause heavy penalty cost and even creates

health and other hazards. Therefore, the ability to forecast machinery/ equipment behavior by

condition monitoring is a pre-requisite for PdM. Condition monitoring is a method of extracting

information from machinery and enables us to indicate its condition in quantitative term. Hence

it is very important diagnostic tool to the maintenance engineer (Gopalakrishinan & Benerji,

2006).

15

2.5.1.3. Corrective maintenance (CM)

Cm so called breakdown maintenance covers all maintenance work which is carried out in order

to correct a failure (fault) in equipment (Demis,2002), it deal with normal repair, 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,

failure is indicated by reduction of performance or becoming inoperable. Maintenance carried

out to restore (including adjustment and repair on item) machinery which has ceased to meat an

acceptable condition. It requires look after your machinery fairly well and to keep it in a good

condition, even after the machinery has done a certain amount of mileage normal wear and tear

begin to take its tall and the machinery will need to be restored (Gopalakrishinan & Benerji,

2006).

Figure 2.3 Category of CM (Demise, 2002)

2.6. Downtime and availability

Let us say equipment failed five times in a year and total time required to put in operation is

about thirty days, considering three hundred working days, the equipment is not available for

10% of time. That means the availability is ninety percent. This is thirty days or ten percent

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, time required for reaching to the site and initial inspection of equipment, actual repair

time, time required for final inspection (Sharma,2003).

The relationship between downtime and cost incurred in production loss can be easily

understood. To understand this in the correct prospective few points must be made.

Corrective maintenance (CM)

Unplanned Planned

Breakdown emergency repair Failure doesn�t stop

operation

16

1. Downtime doesn�t always imply/cause direct production loss. Therefore, there are certain

exceptions and conditions under which downtime doesn�t create production loss. This

includes:

If the machinery doesn�t 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.

Downtime therefore honestly recorded and charged to relevant responsible department

(Gopalakrishnan & Benerji, 2006).

Agricultural machinery downtime can be reduced by the following means: i.e. speedy fault

detection. Fault should be detected before it becomes enough to affect performance of

machinery. Speedy faulty diagnosis; in this case the time spent in faulty diagnosis can be

reduced. The other one is speedy repair which includes time required for faulty detection and

diagnosis, removal of assembly, striping, adjustment, assembly and then finally trial (check) test.

For speedy repair it is essential to use latest tool, immediate decision should be there to adjust,

recondition, or repair a particular part (Sharma, 2003).

Reduction in waiting time is considerably higher than actual time taken for repair due to

irregular (random) arrival of repair job. Queue is formed mainly because of the mismatching of

arrivals and servicing rate.

Waiting time can be reduced by increasing the efficiency of repair crew, (through training and

incentive), policy of replacing first and repairing afterwards for jobs involving heavy repair. For

this purpose same assemblies and sub assemblies kept in reserve. Waiting time may also be

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

related areas in order to best assist the objectives and goals of the entire organization. It is a

combination of all technical and administrative actions to retain an item in or restore it to the

state which it can perform its requirement under normal stated operative condition. In short,

maintenance management can simply defined as managing the maintenance activity to ensure the

availability of equipments and facilities and keeping the down time to a minimum. As such

maintenance management supports the effectiveness operation process by eliminating and

reducing the frequency and severity of equipment failure (Teklehaimanot, 2007).

With the change in the maintenance and the management technique, there is a need to provide

unintegrated approach that pulls together all of the design tools that exist in to an integrated

whole. This requirement is in the form of maintenance management system which when properly

organized and established, is able to provide personnel at all levels access to real time

information.

The fundamental approach of maintenance management system can be viewed as a closed loop

which is repeated in a continuous improvement program of maintenance and information

procedure. The Deming concept of plan Do-Check-Act is a common approach Pentlon And

Wassenhove (1990) used by firm of recording of data accounting for costs, developing

information, updating equipment information, providing work order system, control of

preventive maintenance program and providing management control report. To ensure that a

maintenance management system function properly, several other sub-systems are necessary.

These sub-systems includes topics such as equipment break down analysis, planning and

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

in the area of machinery maintenance. As with all other phases of business management,

maintenance management has, at time, been sadly lacking in effectiveness. In certain type of

industry, maintenance management barely exists and it�s virtually unknown in others.

18

2.7.1. Machinery maintenance standard Machinery/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

are eliminated, crafts are coordinated, avoiding wasted man power caused by people standing

around waiting. Work planned during execution suffers from false start, missing parts or

information and wasted man power. Works that is not pre-planned can cost you as much as 25

percent more to accomplish (Taylor, 2003).

A good planned maintenance system is designed with optimal mix of PM and PdM task. As

much CM as possible is planned to make best use of man power and spares. A number of

unplanned repairs are minimized. A good planned maintenance system will reduce the number of

emergency repair to a minimum because many of failures that could happened are found early

while doing PM or PdM tasks. Because they are found before the failure occurs. They can be

repaired with the least impact on production.

19

2.9. Manpower planning To achieve maximum production at low cost and at desired quality, right man at right place, 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

cooperation and team sprit among each other. Man power planning may be defined as specific

process of allocating the right quantity of right men to be required in future at right time on the

right job.

Manpower planning involves two stages. The first stages concerned with detailed planning of

manpower requirements for all types and level of employees throughout the period of the plan

and the second stage is concerned with the right type of people from all sources to meet the

planned requirement.

One of the obvious reasons for training is that the employee can�t do something that the job

requires to be done. It explained that there is some skill they have yet to perfect or acquire or

some knowledge they are lacking and keeping them from doing a completely satisfactory job.

This reasons enough to make training necessity. Training is an integral part of building g

capacity technicians /employees who engaged with machinery maintenance. Training the

operators and the maintenance worker helps to achieve zero breakdowns as many break downs

are results of lack of skill (Johansson and Nord, 1999).

This will enable the operator to maintain their own machines, understand while failure occurs

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

and has the support of its top management. The chief maintenance manager is responsible to

planned and train his personnel with their level i.e. worker level, supervisor level and executive

level. He does this usually by making detail documents clearly projecting the maintenance

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 cause

system 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.

ensure the proper authorization, check and approval have been obtained before equipment is

written off.

prevent cannibalization of equipment before the proper authority is received to do so.

provide a set of guideline for orderly equipment disposal when a proper approval has been

obtained.

21

ensure that unusual machinery /equipment or scrap is removed from usable storage or operating

space.

It can be overemphasized that the cannibalized/striping dawn of equipment for parts will not be

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 Equipment should be considered for disposal or written off if they satisfy one or more of the

following criteria (Tesfaye, 2002):

- Beyond repair: The equipment is totally destroyed and obviously beyond economic recovery.

- Parts unobtainable: repair parts for the equipment are not in the stock or unobtainable

because the, model is obsolete or unsupported by the manufacturer or his agents.

- Repair costs unsatisfied: restoration repair, while possible, cannot be economically

justified because :- planned future utilization of the equipment is low; operating costs will

be greater than that of new replacement machinery/equipment; work productivity of the

restores machinery/equipment will remain unacceptable low.

- Inferior productivity: the equipment possesses a productivity profile inferior to that of

comparable machinery making its unit output costs higher.

- Equipment missing or stolen: the equipment has been stolen or removed without your

knowledge or authorization or has been missing for two years.

22

2.11. Maintenance Scheduling (MS) A maintenance schedule indicates what the work to be done is, how often it is to be done, by

whom it is to be done, and the estimated time required to complete the work. Separate schedules

have to be prepared for each type of maintenance activity which has to be carried out on each

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

be laid down by the manufacturer. But one can�t depend exclusively on these instructions. 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.

Scheduling can be effective only if there is confidence, mutual cooperation and understanding

the production and the maintenance department (Palmer, 1999).

The first element of scheduling program is to shorten the delay of the time a defective

equipment piece is identified and the time it can be worked on. The second element of program

is to improve the scheduling system�s memory. When a piece of defective equipment is

identified often no action will be taken on it immediately, because operation needs the equipment

on line. In this situation, the scheduling system may not remember that the equipment is

defective, unless there is an explicit record keeping system. The second element of the policy

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

informed as to what work expected of him the next day. This allow the worker enough time to

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

optimal value. The information needed for this are man power availability report, latest status

report of material and production plan, backlog report, and maintenance request received etc.

2.12. Maintenance Record and Documentation Maintenance recording of information has to be decided as to what kind or simple type of

information is needed and the kind of use it will be put to , only then the depth and detail to

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. The frequently repeated faults, finding their cause and deciding about the corrective

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. If break down occurs soon after the maintenance team has worked the machinery/

equipment, then it may indicate a weakness in the maintenance quality or even on the

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

material content point or need of being produced under the guidance of better quality

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. decision regarding equipment to be selected for standardization and for replacement

become much easier when the complete background is available for comparison between

the different makes of the same equipment from the point of view of ownership cost,

maintenance cost, down time cost, and availability.

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2.13. Spare Part Management (SPM)

Machines worth a millions of money are idle due to shortage of spares; on the other hand huge

stocks of spares are lying which perhaps may not be used. This emphasizes the need of paying

attention on the management of spares, improvement in the capacity utilization and cost

reduction can be achieved by better spare part management. The objective of SPM is to provide

right parts in right quantity, in right place, at right time and at right cost. The part must be

codified and classified. Various cost reduction technique for spares help the manager to control

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 Machinery

Agricultural machinery cost can be divided in to two categories. These are; annual owner ship

cost, which occurs regardless of machine use and operating cost which vary directly with the

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).

The distinction between fixed cost and running cost is not always clear out (Goense, 1995),

whilst depreciation or loss in value of machines with age is tested as a fixed cost. This is only

realistic under average condition of operation. As economic life of the equipment is reduced by

heavy usage, part of depreciation change is dependent of utilization. Conversely, repair and

maintenance is taken as running cost but maintenance may still be required, even when the

machine is little used. This part of running cost is linked to duration of ownership (Witney,

1988).

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2.14.1. Fixed Cost

2.14.1.1. Depreciation

Depreciation is a cost resulting from wear, obsolescence and age of the machine in which every

machine losses its value (Hunt, 1977). Whenever a machine or equipment performs a useful

work its wear and tear is bounded to occur. This can be minimized to some extent by proper care

and maintenance, but cannot be totally prevented. Its efficiency also reduces with lapse of time

and at one time it becomes uneconomical to be used further need replacement by new unit.

Repair cost tends to increase as machinery age increases (Kasten & Dhuyverter, 2008).

Therefore, we can say that efficiency and value of machine constantly decrease (reduce with

lapse of time during use which is known as depreciation. So, some money must be set aside

yearly from the profit. So that when that equipment becomes uneconomical it can be replaced by

new one. Depreciation is a book keeping method of distributing the cost of capital item over

more than one year of useful life (economic life). Economic life depends upon a period you plan

to use the item. The economic life of machine is the number of year for which costs are to be

estimated. It often less than the machine service life. A good use of thumb is to use an economic

life of then to ten years for most new farm machines and twelve years for tractors unless the

machine traded or sold sooner (Hunt,1983).

Obsolescence: Suppose an owner purchases a machine for his production but after some

duration a better machine comes in the market, whose production rate is very high and

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

2.14.1.1.1. Method of determining depreciation

A. Straight line method With this method an equal reduction of value is used for each year the machine is used. 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.

LSPAAD

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

The purchase price related to machines bought either new or second hand and the resale value

after a long period of ownership may become the scrap value. During the early life of the

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

depreciation charged can then be considered as the sum which must be set aside each year in

order to replace the machine with identical model at the end of the period of ownership (Norvel,

2007). This, of course, assumes that the value of money remains the same and that the

depreciation fund is not reinvested, that is no inflation and interest is not considered.

The straight line depreciation method is, however, an over simplification and ignores the more

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

value of the machine at any age because of annual depreciation rate decreases as machine get

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= )( SPYD

nL

.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). With declining balance method, machinery depreciates a different amount of

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

to depreciate much during the early year when the repair and renewable is not costly (Bowers,

1992).

Bowers (1992) describes depreciation with declining balance method as equation 3.5:

Y

LrCRV

1 3.4

nRVD - 1nRV 3.5

Where: 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 machinery

L= machinery use full life

Y= age of the machine in which depreciation is determined.

lr

Decimal rate of depreciation

Therefore, depreciation is equated as:

DP=Rvn-Rvn+1 3.6

The need to use un-exponent makes the method more complex and tedious. It better reflects,

however, the actual value of a machine at any age and is more use full for 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.

Eventhough the method doesn�t account for the first year depreciation which tends to be at

considerable higher rate than in later years. By introducing a first year correction factor to the

resale value calculation, the accuracy of the declining balance method can be improved still

further according to Witney (1988).

2.14.1.2. Interest Interest charges are usually computed when operating costs are being determined and may be

calculated so that the result will be constant or equal yearly charges throughout the life of the

machine. The interest rate can be varying but usually in the range of six to twelve (6 to 12%).

Interest of agricultural machinery can be determined as indicated in equation below (William,

2009):

rateInterestDSPI

2

3. 17

Where: I- Interest rate (birr)

P- Purchased price (birr)

S- Salvage value (birr)

D-depreciation (birr)

According to Bowers (1992), interest is a large expense item for agricultural machinery. It is a

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.

2.14.1.3. 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):

ratetaxopriceparchaseTax ..55.2

.

3.18

2.14.1.4. Insurance Insurance policies are usually carried on more expensive machines while the risk is usually

assumed on the simpler, less expensive machines. The annual charge for insurance or risk is

assumed to be from 0.25 to 0.5 percent of the remaining value (Bowers, 1992). According to

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

purchased price. If machinery is not insured the owner will have to take the risk of accident

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= rateinsuranceDSP

..2

3.19

Where: I= insurance rate

P= purchased price

S= salvage value

31

2.14.1.5. 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 repair and maintenance, a tidy machinery shed

demonstrate a managerial commitment to good machines care. A purpose built machinery store

requires enclosed work shop facilities garaging for self propelled equipment (Witney, 1988). In

the Netherlands, it is common that, machinery is stored under cover (Goense, 1995). There is

tremendous variation in the machinery housing for farm machineries for providing shelter, tool:

maintenance equipment for machinery will result in fewer repair in field less and less

deterioration in mechanical part and experience for weathering (ASAE, 1999). Space required

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

2.14.1.6. Capital Recovery of Agricultural Machinery Capital recovery is the number of dollars (birr that would have to be set aside each year just to

replace (repay) the value cost due to depreciation and pay interest costs. According to Bowers

(1992), the annual capital recovery cost is found by formula indicated and for capital recovery

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

2.14.1.7. Inflation In a time of substantial momentary inflation, machinery manager must include the effect of

inflation on machinery planning. Inflation causes increased prices for goods and services in

future years. Decision involve a time span of more than one year are made using value expressed

in constant dollars (birr), Dollars from which the effect of inflation is deducted. The effect of

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

Today 1 1 1

1 yr 1.1 1.07 1.028

2 yr 1,210 1.145 1.057

3 yr 1.331 1.225 1.086

5 yr 1.611 1.403 1.148

10 yr 2.594 1.967 1.318

25 yr 6.727 3.87 1.737

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

1000 dollars. The price of the machine to day based on constant dollars of 5 (fife) years age is

[1000/1.403] or 713 dollars (Hunt, 1983).

2.14. 2. Variable Cost

2.14.2.1. Repair and maintenance cost Maintenance and repairs are essential in an effort to guarantee a high standard machine

performance and reliability. Reliability is a measure of confidence which can be placed on a

machine to complete a planned duty cycle with component failure (Witney, 1988).

Repair and maintenance cost occur due to routine maintenance, wear, tear and accident. Repair

cost for particular machine varies widely from geographical region to another because of soil

33

type, rock, climate and other condition. With in local area repair cost varies from farm to farm

because of different management policy or operator skill (Bowers, 1992).

Repair and maintenance of machinery is needed to keep them reliable and to guarantee

performance and work of good quality (Goense, 1995). It is a tendency to increase as the

machinery gets age and represents the largest impact on the diagnostic cost benefits. If you hold

escalating cost down with effective scheduled maintenance (PM inspection) a driver written up

control and timely components replacement prior to failure as long as obsolescence and technical

life do not surface. You can keep the machinery longer before cost effective replacement

(Demise, 2002).

Over the life of the machine components become worn. Excessive wear adversely affects output

and increases the likely hood of the failures. This introduces the financial risk by prolonging a

critical operation either through slowly rate of work or through unforced break down.

Cost comparison: estimated repair cost versus actual cost can be shown weakly, fortnightly,

monthly and annualy. This projection will indicate if actual costs are more than, or less than, or

equal to estimated cost. If not, by how much has it deviated? Keeping in mind the actual cost

against the funds provided for in the budget is a control function (Karim, 2008). The best data for

estimating repair cost is operators own records of past experiences. Good record indicates

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.

They can be calculated when the occurrences of downtime can be quantified. The downtime

hours are subtracted from available time and consequences calculated.

The direct cost of repair and maintenance are presented on two different ways:

34

The total life of repair and maintenance costs as a percentage of the machines list

price and

Accumulated repairs and maintenance costs as a power function of accumulated

machine use.

When only total life if repair and maintenance costs are used it is assumed that they accumulate

linear with accumulated life. The variable repair and maintenance costs per hour are following

this approach dependent of intensity of machines use (Goense, 1995).

RCH=Pp )()100

1(

THTR

3.21

Where: RCH- repair and maintenance cost per hour

Pp - purchase price

TR- total life repair cost as percentage of PP (total accumulated repair cost)

TH- total technical life (total accumulated hours).

The second approach, the power function, describes better the typical trend in repair and

maintenance costs. Low cost in the initial stage of the machine life and increase in later life

(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 hours

RF- 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 comes

2

10001

RFn

nnAHCLPRFARM

35

EULEULAH

RF

nnnRFEULCLPRFARM

2

2

11000

1 3.33

Repair and maintenance cost for n years of machinery will be calculated by using equation 3.24

here under:

1 nnn ARMARMRM 3.24

The accumulated repair costs are based on the accumulated repair and maintenance cost to

reduce the availability of the costs due to different in timing of the repairs (Ahimed, 1999). The

accumulated use for the tractor is given as engines hours divided by 1000, whilst that for

machinery is given as operating hours divided by 1000. As the engine hours are recorded on a

tractor hour meter which is only correct at a particular engine speed for the tractor models, 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

home meter reading partly accommodates for different level of power utilization in the

calculating of tractor repair cost

2.14. 2.2. Fuel Cost Fuel consumption of agricultural machinery/ Tractor/is governed by the amount of energy

demanded at the draw bar or through the power takeoff. In order to relate this net energy

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.

Tractor operates throughout the year on a range of task varying from heavy duty work such as

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

peak power. The average engine loading throughout the year is 55 percent of the maximum

power take off (P.T.O) of the tractor.

36

Figure 2.8. Specific fuel consumption for a diesel engine operating at various power utilization 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).

According to Hunt (1983), fuel cost is calculated independently for gasoline and diesel.

Therefore,

Fuel cost for gasoline = max. P.T.O hp ×0.068×price of gasoline ×hour of use �3.26

Fuel cost for diesel = max. P.T.O hp ×0.044×price of diesel ×hour of use �3.27

2.14. 2.3. Lubrication (Oil) Cost

Lubrication plays a very important and effective role in planned or PM maintenance and rightly

therefore, it is basic to maintenance planning. Ensuring lubrication can and does reduce large

number of breakdowns. The role of lubrication where machinery is exposed to the ravage dust

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.

According to Gopalakrishinan & Benerji (2006), proper lubrication helps to: prevents rust

formation, reduce friction; thus reduce wear, scoring and seizure and economies on power

Consumption, Washes away waste material and particles, increase equipment life and reduce

heat

37

In doing so the lubrication need expense as that of fuel does. Engine needs periodical

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 Commercial sugar cane plantation was started in Ethiopia in 1951 by Dutch company Hangler

Vondr Amsterdam (HVA) which was granted a concession of 5000 hectors for establishing a

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

local market another 1600 hectors of land was granted to the HVA Company by the Ethiopian

government thus totaling 6600 hectors.

During that time, even though the exact data were not found, the factory began its agricultural

(activity) with few machinery (tractors and heavy machinery) and little man powers.

3.1.1. Objectives of the Enterprise According to the Council of Ministers� regulation NO.89/1992 the objectives of Wonji shoa

sugar factory are the following;

1. to grow sugar cane and exploit other sugar yielding points.

2. to process and produce sugar products and sugar bye products

3. to study, plan and implement various sugar development programs.

4. to carry out scientific, industrial and agricultural research and survey to

enhance its program.

5. to possess and develop fulfill its purposes.

6. to distribute and sell locally and export sugar and similar products including

non-sugar products from its farm and factories.

7. to 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. Product Sugar Desta candy Molasses

Unit of measurement Ton Ton Liters

Required out put 7600 240 261440

Achievable 8231.12 213.3 265350

achieved 7464.5 74.623 199454

3.1.4. WSSF Organizational Structure and Set Up The company has three divisions, namely agricultural division, factory division, finance and

human resource division and has fifteen departments.

The top management is organized in team. The management team consists of the general

manager, agricultural operations manager, and human resource and finance manager. Out of two

activities i.e. factory activity and agricultural activity, the second one plays the greater role in

production of sugar cane. Under this activity, land preparation, plantation, harvesting and field

equipment service are included. For the production of sugar and molasses, 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. They should be handled and kept properly. Miss handling of enormous amount of all

these machineries will result to loss and reduction of sugar products. Health care of machineries

(tractors and heavy equipments) will optimize the production of sugar, unless the factory

gradually leads to shut down.

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

Wonji sugar factory

Shoa sugar factory

Logistics department

Confectionery works

Finance department

Human resource department

Medical service department

41

3.2. Status of Agricultural Machinery Due to traditional recording and reporting system of machinery, it is difficult to conduct a

detailed analysis of machinery status. Field equipment service department (FESD) of Wonji

Shoa Sugar Factory (WSSF) has no document that shows clearly the condition and status of

machinery. Machinery status can be easily identified if a planned maintenance and condition

monitoring is implemented. Different machineries with different service life and the same

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

does not exist. From the interview held with wheel tractors and heavy equipment section head

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. no Machine type model Current condition and quantity of machinery

Good Fair Bad Total 1 MF tractors 178 - - 4 4 2 ,, 290 - - 2 2 3 ,, 398 - 5 2 7 4 ,, 4260 4 3 1 8 5 ,, 5365 1 - 2 3 6 ,, 660 4 - - 4 7 ,, 5340 8 - - 8 8 ,, 465 3 - - 3 9 ,, 440 12 - 1 13 10 FNH tractors 80-66s 3 2 3 8 11 ,, 110-90 3 - 1 4 12 Same tractors 130-DT 18 - 4 22 13 Belarus tractors 920 1 - - 1 14 Styer tractors 9094 - - 8 8 15 Heavy equipment Different

models 15 9 14 38

total 72 19 42 133 % 54.12% 14.28% 31.57%

42

Figure 3.2 current condition of machinery Vs quantity in Percent Those machineries, which are working and delivering service and relatively low in operation

cost, well maintained and recent ones are categorized as good machineries. Under this category

those machineries which low frequency of breakdown are included. They are in better

performance in terms of operation within dust farm land. Those machineries which are operable

with the poor maintenance management system, frequent breakage of the systems which requires

high repair and maintenance cost are categorized as fair. These machineries can be maintained

and corrected by minimum and low technical complexity. The age of some machinery in this

category is not much but requires high operational cost. The main problem is lack of preventive

and condition monitoring. Those machineries which are operable and out of operation which

requires major operation cost, some of them are unrepaired. They are out of operation for years.

In these category, aged machinery which has been using with high repair cost and those which

requires disposal (out of operation for years and subjected to Sevier sun and dust) are categorized

as bad. It is uneconomical; in fact these machineries lead the WSSF to loss in production because

of high operation cost.

From the data in the Table 3.2 above 54.2% of machineries are in good operating condition. In

order to prolong the life span of these machineries FESD should implement proper preventive

maintenance management with thorough condition monitoring of machinery from time to time.

The remaining machineries which are almost 31.57% of them are in bad condition. Out of these

0.00%10.00%20.00%30.00%40.00%50.00%60.00%

Perc

enta

ge

Good Fair Bad

Condition of machinery

43

50% requires disposal. It is planned to dispose them, even though they are not disposed due to

lack of clear disposal system in FESD. Proper categorization of machineries in different status

helps to provide cost effective maintenance work. FESD should identify machineries status

thoroughly in a regular way. In doing so, FESD enables it to plan and implement replacement

policy system of the machinery.

Every machinery does have its own useful life other than physical life. The age of the machinery

determines repair and maintenance as well as operation cost. As the machinery gets older it

should be replaced with new one.

Table 3.3 Age of the machine with respect to the type of machine Age in range

Machinery type and quantity MF Fd FNH str sa

me Blrs Ld

r Dzr grdr excv total %

>30 years 6 - - - - - - - - - 6 4.4%

20-30 ,, - 1 - - - - - 2 - - 3 2.2%

12-19 ,, 10 - - - - - 2 2 1 - 15 11%

5-11 ,, 21 - 8 8 - 1 4 7 1 2 51 37.5% <5 17 - - - 22 - 11 6 1 - 61 44.85 total 54 1 8 8 22 1 17 17 3 2 136 100% MF-Massey Ferguson, FD-ford, str-styer, Blrs-belarus, ldr-loder, Dzr-dozer grdr-grader,excv-excavator

Figure 3.3 Age of machinery Vs quantity

44

FESD of WSIF has different types of machinery with different life periods. Some of the

machineries are operated with difficulties, because of heavy job of farm (land preparation,

cultivation, plantation, harvesting, dozing, loading, and transporting). The operation hour per day

of these machineries exceed the recommended value which results to accelerated depreciation

and, frequent breakage. As indicated above most of the machines are beyond useful life which

takes 17.6% of the total. Therefore, these machines requires disposal. Further more, since no

equipment / machinery is long lasting, a replacement plan of machinery should be implemented

parallel to proper maintenance of machinery at hand.

3.3. Machinery replacement Replacement of machinery in a big enterprise owns a number of machinery is very important to

maximize mass production. The purchase of new machinery results from a need to replace them

if they are inadequate. When the machinery is adequate the reliability increases and delay of field

operation decrease.

Agricultural machineries should be replaced in the following circumstances:

When accidents have damaged the machinery beyond repair.

When field capacity of the machine is inadequate because of the increase in scope of

operation

When a new machine or farm practice makes the old machine obsolete

When performance of new machines in scientifically inferior and.

When anticipated cost for operation exceeds that of replacement cost of the machine.

In WSSF field equipments /machine replacement plan /policy assignment was made. .None

structured interview was made with department head. �Is there any replacement policy of

machinery in your enterprise?� The interviewee response was �no�. Further explanation was

followed. �Why?� The response was that the department needs replacement of machinery and

requested but top management does not seem to accept the idea of replacement.

From the above study one can simply understand that there is no replacement policy or

replacement plan in WSSF FESD. From the result of Table 3.3, 17.6% of the machinery requires

45

replacement. These machineries, most of them are beyond economic useful life. 37.5 % of the

machineries were purchased within 1991-1997 E.C. An average 19% of these are getting ready

for replacement.

Table 3.4 Machine that need replacement, reason for replacement, service life and their number. S. No Machine type Service

life (age) year

Reason for replacement

number Percentage

1 MF >30 Disposable(due to age) 6 18.2%

2 Ford & dozer 20-29 Disposable(due to age) 3 9.1 %

3 MF 12-19 Long service year 15 45.15%

4 MF 5 Due to engine failure 1 3%

5 styer 10 Due to high operation cost

8 24.24%

Total 33 100 %

Figure 3.4 Replacement reason Vs quantity to be replaced in percentage Fig.3.4 replacement reason Vs quantity to be replaced in percentage

46

From Table and figure 3.4 it is clear that 27.3 % of the machines (mostly tractors) are

disposable; they should be sold by scrap. The enterprise didn�t dispose these machineries with

clear disposing policy due to lack of clear disposing plan. 45.45% of the machineries are also

operating with difficulty. The operation, cost and spare consumption increase with age as

machinery gets older. The least percentage of machinery (tractor) should be replaced .due to

failure of engine.

The styer tractors, which were bought in 1992 and had service life of 10 years, could not work

further in WSSF farm because of extremely high operation cost which was unaffordable. It was

observed that they were idle. Therefore, WSSF has to have a replacement plan to sustain

reliability and competency of enterprise. In parallel to implementation of improved maintenance

management, old vehicles should be sold and replaced gradually.

The replacement plan should take in to account the following points;

The useful life of the machinery

The purchased year of the machinery

Current performance of the machinery

Frequency of break down and

Repair and maintenance cost and availability of spare in the market.

The replacement plan should also consider new arrivals of latest machinery, which has high

quality with high efficiency and low maintainability.

3.4. Origin and Makes of Field Equipments (Machinery of WSSF)

There are different types of machinery with different makes and origins are available in WSSF.

All machinery with their origin and make are given in Table 3.5.

47

Table 3.5 Makes and origins of field equipment. 1.No Category Machines type Origin Make 1

Tra

ctor

s

Massey Ferguson

Brazil JV England

-

2 Ford tractors England Ford 3 Fiat new

Holland Italy Fiat

4 Same tractors Italy - 5 Styer tractor Austria Styer 6 Belarus Russia(NTAF) Belarus &

NTAF 7

Hea

vy

equi

pmen

t

Camico loader America Camico 8 Caterpillar America CAT 9 Comatsu loader Japan Comatsu 10 Camico dozer America Camico 11 Case excavator France - 12 Daewoo

excavator South Korea -

13 New Holland dozer

Italy

14 Volvo grader Canada Volvo 15 Back hoe

loader Italy

From the data of Table 3.5, one can see that there are many varieties of machinery with different

origins and makes. They are ten main machinery maker both Tractors and heavy duty

equipments. These machineries have different origin and are made with different quality and

complexity. Each machinery composed of different systems, components which require different

specification to repair (maintain) and operate.

Therefore, more technical repair crews with skilled personnel are required. To maintain these

vehicles it requires many well trained technicians who have theoretical and technical back

ground of machinery with adequate experience, skill full (capable mechanic) and operators are

needed to operate and maintain them.

From the above data, there are about six types of tractors with different origin and make. From

the assessment taken, a single tractor types does have different models, for example, Massey

Fergusson; 178, 290, 398, 4260, 5365, 660, 5340, 465, and 440. Having few trained repair crew

is a system developed similar system components in different equipments (machinery) make and

48

brand are maintained and operated by single technical persons. This means enable the technical

persons who maintained a system of say styer also maintained Belarus tractor. This mechanism

/strategy requires adequate training in order to develop and build capacity of repair crews.

The other alternative is to have many numbers of technical personnel who have experience in

operating existing brand. In this case each machinery has its own respective specialized

technician who can operate and maintain different components and system. In this case it

requires more numbers of technicians. This has side effect, because it requires more number of

technicians. This leads to high total salary which reduces profit of the WSSF and increase

maintenance labor.

From the above assessment FESD have many technicians who have two specialized skills. They

follow either of the strategy but somewhat the second one. The repair crew of heavy equipment

section couldn�t inspect and maintain wheel tractor, even with in the same section. The

technicians don�t have well understanding about their respective section maintenance except few.

This manifests the maintenance strategy of FESD is poor and has no maintenance management.

3.5. Down Time and Availability In agricultural production availability of the machinery or getting ready for the job to be assigned

is very important. In WSSF enterprise if the machineries are not available unlike that of service

bus (transportation bus) the loss of income is not manifested. Ruther the availability of

machinery results to the loss of production of agricultural products. Hence, the availability of

WSSF FESD machineries resulted to loss of yield of sugar and its related products, because of

increase in down time.

Some of the machineries are not available due to:

- Break down of component; In agricultural machinery structure of machinery is

composed and constructed from minute and very simple components. A group of

component makes a system and mechanism. One depends on the other. They perform

their duty with together unlike that of relay race.

49

In WSSF FESD the assessment was made, by conducting none structured interview with section

head on the main cause of unavailability of the machineries. Breakdown was the response of the

interviewee, which takes about 90%. The interview was followed by �what made the

machineries down time so much?� the response was that the great percentage is due to lack of

spare part and the next one is maintenance process. In order to analyze down time and

availability of machinery (tractors and heavy equipment) the data was taken from harvesting

department as per their job such as grab loader, infield transport tractors, and road haulage

tractors.

Seasonal working hours, effective working hours, down hours (time), utilization capacity and

availability of the machinery are thoroughly analyzed in respective of all machinery.

Effective working hours: The hours taken on effective work of machinery and it is expressed as: Effective working hours (x) = total planned working hours down time in hours. 3.1 Down time are categorized into two. These are; non-operational down time which includes idle

time during operators shifting, tea break and urination (getting toilet) and operational down time.

The latter one is the idle time which happened as a result of machinery failure and the time taken

to corrective maintenance.

Utilization capacity: This is expressed in percentage symbolized as X, Y, Z. X-represents

effective working hours in percentage as expressed above and;

100..

.,

hoursworkingtotalhoursworkingeffectiveX 3.2

Y-represents non-operational down time which expressed as:

100.`

``

hoursworkingtotalhoursdownloperationanonY 3.3

50

Z-represents operational down hours (time) which expressed as:

100..

.

hoursworkingtotaldownhoursloperationaZ 3.4

Availability: availability is the ratio of time (hour per day) needed for operating the equipment

to the time actually consumed for operating and expressed as:

Availability=

timeoperatingscheduleddaystimeoperatingactual

..

).(.. 3.5

=timeoperatingscheduled

downtimeunplannedtimeoperatingscheduled..

...

From the above points of view, three machinery categories are taken to analyze all the above.

The researcher summarized all the data of three machineries classifications of 2001/02 or 2008/9

years as shown in table 3.6, 3.7 and 3.8.

Table 3.6a. Grab loader utilization capacity, down time and performance efficiency

Mac

hine

Typ

e

Pla

te N

o

Tot

al c

lock

ho

urs

X Down hours Utilization capacity (%)

Per

form

ance

ef

fici

ency

(%

)

Tot

al w

orki

ng

days

per

se

ason

(23

7)

Ava

lila

bity

%

Y Z X Y Z Cameco 06 2720 1295 1048 377 47.61 38.53 13.86 77.45 115 48

,, 07 1448 663½ 561 223½ 45.82 38.74 15.44 74.80 62 26

,, 08 5176 2416 2042 718 46.68 39.45 13.87 77.09 225 95

,, 09 3624 1774½ 1408 441½ 48.97 38.85 12.18 80.08 154 65

John deer 10 5352 2580 2074 698 48.21 38.75 13.04 78.71 226 95

,, 11 2528 1230 969½ 328½ 48.65 38.35 12.97 79.05 46 19

Total 6 20848 9959 8102

½ 2786½ 47.77 38.86 13.37 78.10

51

Table 3.6b Infield transport tractors utilization capacity, down time and performance efficiency

Machine Type Plate

No

Total clock hours X

Down hours Utilization Capacity (%)

Per

. eff

.

T.W

.D

p.s

Ava

lila

bit

y %

Y Z

X Y Z

Cat D4E 407 2736 1161 1060½ 514½ 42.43 38.76 18.80 69.29 144 61 ,, 408 3920 1796 1566½ 557½ 45.82 39.96 14.22 76.31 190 80 ,, 409 3344 1506½ 1295 542½ 45.05 38.73 16.22 73.52 168 71 ,, 410 3432 1560½ 1376½ 495 45.47 40.11 14.42 75.92 170 72 ,, 411 1720 776½ 661 282 45.15 38.46 16.40 73.36 89 37

Komatsu 02 384 162 181½ 40½ 42.19 42.26 10.55 80.00 19 8, ,, 07 208 75 115 18 36.06 55.29 8.65 80.65 10 4,

Komatsu D41E 03 4944 2358½ 1929½ 656 47.70 39.03 13.17 78.24 218 92

,, 05 5112 2483½ 1971 657½ 48.58 38.56 12.86 79.07 222 94 ,, 06 448 189½ 206 52½ 42.30 45.98 11.72 78.31 21 9, ,, 07 88 38½ 36½ 13 43.75 41.48 14.77 74.76 6 3

Wheel tractors Same 02 1232 560½ 514½ 157 45.50 41.76 12.74 78.12 62 26 Mf 370 2600 1229½ 1035 335½ 47.29 39.81 12.90 78.59 119 50,

Total 13 30424 14028½ 12050 4345½ 46.11 39.61 14.28 76.35 1453

Per.eff.=performance efficiency, T.W.D p.s=total working days per season Table 3.6c Road haulage tractors utilization capacity, down time and performance efficiency

Machine Type

Plate No

Total clock hours X

Down hours Utilization capacity

(%)

Per.

eff

.

T.W

.D p

.s

(237

)

Ava

lilab

ity

%

Y Z X Y Z MF 4260 348 1480 806.5 464 209½ 54.49 31.35 14.16 79.38 69 29 349 2888 1514.5 1001 372½ 52.44 34.66 12.90 80.26 139 59 351 4496 2338.5 1645 512½ 52.01 36.59 11.40 82.02 197 83 352 3304 1768 1156 380 53.51 34.99 11.50 82.31 158 67 353 2040 1068.5 711 268½ 51.95 34.85 13.16 79.80 108 46 354 3616 1870.5 1281½ 464 51.73 35.44 12.83 80.12 173 73 355 4128 2197 1445 486 53.22 35.01 11.77 81.89 189 80 MF5365 356 224 131 56½ 36½ 58.48 2.22 16.30 78.21 10 4 357 1728 884 633½ 210½ 51.16 36.66 12.18 80.71 87 37 358 1440 749.5 473½ 217 52.05 32.58 15.07 77.55 66 28 371 3064 1575.6 1163 325.39 51.42 37.96 10.62 82.98 139 58 372 2864 1515.5 1030½ 318 52.92 35.98 11.10 82.66 141 59 373 3752 2019.9 1323½ 409 53.81 35.28 10.91 83.14 167 70 FNH 09 432 196 151 85 45.37 34.95 19.68 69.75 20 8

52

110-90 10 5216 2790.5 1851 574½ 53.50 35.49 11.01 82.93 225 95 11 3544 1862 1254½ 427½ 52.54 35.40 12.06 81.33 162 68 12 3120 2568.5 1092 359½ 53.48 35.00 11.52 82.27 142 60 SAME 03 1416 767.5 484½ 164 54.20 34.22 11.58 82.39 94 40 13 5136 2750 1778 602 53.66 34.62 11.72 82.07 224 94 16 4984 2832 1770½ 381½ 52.25 35.52 12.23 81.03 217 92 18 3424 1757.5 1212 454½ 53.46 35.46 11.14 82.75 148 62 19 4200 2254 1494 454 53.61 35.57 10.82 83.20 190 80 Total 22 66496 31146. 23471½ 7868 52.90 53.26 11.84 81.71 3065

Generally speaking, from the above data (Table3.6 a, b, c) down time of the machinery is very

high which reduces effective working hours of the machineries. In other way the availability of

machinery is very low. As it is clearly shown Grab Loader which load cane to the haulage

tractors availability is 58% in average and that of field transport tractor is 39.46%, and 58.73%

for load haulage tractors. Since the utilization of equipment is measured in availability

performance, it is observed that machineries are existing in lower availability. Hence, the

productivity of machineries is at lower level.

Availability of the machineries can be increased by implementing effective and reliable

maintenance since the task of maintenance is to increase the availability of machineries.

Maintenance management requires selection of a course of action which will minimize frequency

of machinery emergency break down. Therefore, WSSF FESD should implement:

- Frequent inspection, cleanup, and lubrication.

- Replacing fast moving parts at a fixed time before failure.

- Replacing parts depending on the condition before failure.

- Replacing after failure as soon as possible.

Main cause of down time: The cause of down time is frequent failure of machineries. But the

cause of failure is due to abuse and misuse of machinery such as:

- Improper driving on rough road especially between farms.

- Driving with leakage lubricant and coolant as a result of damaged instrumental panel.

53

- Driving with worn out components like brake linings, clutch, joints, bushings etc.

- Improper lubrication with regard to type of lubricant and frequent lubrication.

- Continuous operation of machineries 24 hours with out rest. This is manifested specially

on grab loader and haulage tractors, oil viscosity reduce with time which causes

breakage.

- Fast driving on channel and bridge which result to tire inflation and axle breakage.

Lack of spare part: Most of the time spare parts for heavy machineries are not available in

store. Hence, machineries stop for along period of time waiting for spares. Therefore, WSSF

should pre-plan better for spare parts. In doing so, WSSF optimize machinery utilization and

availability of machinery on the work to be assigned.

3.6. Capacity of Man Power Based on recent machinery /equipment and the technology employed on their construction there

is a complexity of machinery system and there is same variation in operation, maintenance and

safety improvement from time to time. To use and manage/handle/ the newly purchased

machinery properly, to understand machinery equipment function and mechanism, to have a

power to find out the cause of a system trouble, to have ability to find and improve machinery�s

minor and major defect sources, it is very important to plan to upgrade and update the

maintenance crew (technicians), operators knowledge and skill from time to time. Building

capacity of maintenance staff with proper knowledge will ensure proper and effective

maintenance and increase performance of maintenance personnel and operators.

In two sections, the assessment was made on the educational background of maintenance staff.

The current educational status (background) of maintenance manpower is as shown in the table

3.7.

54

Table 3.7 Current educational background of maintenance staff

Fiel

d of

spe

cial

izat

ion

Education profile

Msc

degr

ee

Advanced .diploma

dipl

oma certificat

e

12ve

&

10

thco

mp

lete

4-9 total %

Automotive - 3 1 12 29 - - 45 Agro-engineering

1 - 1 1 3 - - 5

Manufacturing

- - 1 - 13 - - 14

Mechanical engineering

- 1 - - - - - 1

Industrial engineering

- - - - - - - -

Others - 1 - - - 39 13 51 Total 1 5 3 13 44 39 13 118 percentage 0.85 4.24 2.5 11 37.3 33 11 100

Figure 3.5 Educational profile Vs quantity in percentage

As one can see from the above Table 3.7 and Figure 3.5, in FESD department of existing man

power less than 1% do have masters degree,33% of them are 12 and 10th complete , 37.3% have

certificate . The numbers of people who do have degree and advanced diploma are very few. The

total sum of both are not exceed the number of people that don�t have education (4-9 grade

level). From the data it is clear that most of the man powers in the WSSF FESD department are

at very low educational level.

0

10

20

30

40

Per

cent

age

Educational profile

Percentage 0.85 4.24 2.5 11 37.3 33 11

MSc BSc Adv.d diplo certi 12v 4-8

55

To achieve objective of maintenance and the desired quality of maintenance, the right man at

right place and the right job should be put. Having these many people which are unqualified it is

challenging to be effective in maintenance. Furthermore, these people couldn�t follow scientific

procedures during maintaining, repairing machinery. It is difficult to understand system of

machinery. Ruther they follow traditional way of maintenance and develop try and error method

which results to frequent breakage and failure of machinery systems.

Truly speaking, 44% of them are not in right place and right job. It is better to assign them in

other job or let them to train (learn) since they don�t have technical background and couldn�t

cope up with complex and sophisticated machinery system. In addition to educational back

ground the assessment was made on experience of maintenance staff. The result is as shown in

table 3.8 below.

Table 3.8 Experience of maintenance staff of WSSF.

sex Experience in range Above 30 20-30 11-19 5-10 <5 total

Male 17 22 53 25 1 118 Female - - - - - - Total 17 22 53 25 1 118 % 14.4% 18.6% 44.9% 21.21% 0.85& 100%

Most of the maintenance staff have more than 10 years experience without adequate educational

background. Less than 30 % of maintenance staff are working for less than ten 10) years.

Experience plays a great role because of the fact that it takes maintenance (repair crew) to

perfection but due to lack of appropriate knowledge basis of the repair crew yet the FESD

machinery maintenance system is poor. There is no one that could follow repair manual /service

manual. In order to achieve quality maintenance as activities that are to set equipment condition

that preclude quality defects, based on the basic concept of maintenance perfect machinery to

maintain perfect quality of machinery. Therefore, WSSF FESD Department should have to have

repair crews that have experience with appropriate educational background.

56

Table 3.9 Age of maintenance staff Age in range

N0 <20 21-25 26-30 31-35 36-40 41-45 46-50 >50 total - - 4 20 27 31 9 27 118

percentage - - 3.4% 16.9% 22.9% 26.3% 7.6% 22.9% 100

In FSED of WSSF most of maintenance staff of two sections are not young enough, 35.5% of

them are above 45 years old. As one get older body flexibility reduced. Therefore, they couldn�t

take machinery components to desired position like youngster. About 70% of maintenance staffs

are less than 45 years. FESD department should design to build capacity of the youngster in

order to optimize effective, maintenance and things of that older staff and have a plan to replace

those aged staff with young, educated and well trained ones.

The other important things that should not be left with out touching are that, the capacity of the

operators of tractors and heavy equipment because of the fact that, the operators play a great role

in machinery handling. Educated operators perform integral work of operating, condition

monitoring, inspecting, problem identifying, and servicing of the machinery. In WSSF tractors

and heavy equipment operators do not have adequate educational background as shown in Table

3.10.

Table 3.10 Educational level of operators of tractors and heavy machineries. Types of machines

Educational level diploma certificate 12ve &10th

complete 6-9 Below 6 total

Tractors - - 13 25 17 55 Heavy equipment

1 5 30 20 1 57

total 1 5 43 45 18 112 % 0.89% 8.9% 38.4% 40% 16%

57

Figure 3.6 Operators education level Vs quantity Operators who holds diploma are less than 1%. Nowadays machinery technology growing fast,

its system is complicated (from mechanical to electronic). In order to communicate with

machinery system, understand why failure occurs and suggests ways of avoiding failure

occurring and minimize machinery breakdown, it requires educated and well trained operators.

In WSSF as it indicated in the above data the majority (94%) of the operators don�t have

technical back ground. Therefore, WSSF should think of it. Almost all of the operators should

have at least Auto mechanic / Agro mechanic diploma with adequate training on machinery

operations and handling.

3.6.1. Training of Repair Crew A great level of skill can be achieved relatively quickly through formal training. This should not

be limited to the transfer of technical skill and knowledge that are needed for optimal task

performance. WSSF FESD department training of repair and maintenance personnel reduces

wrongly maintaining of machineries. Precision / perfect maintenance denotes a high level of skill

and training of craft. Non-structured interview was made with section head whether training is

provided and has a plan to train technicians. The interviewee response was as follows; �two

years before, training was not inhabited. But after two years numbers of technicians get trained

on different specific areas�. Focus areas on which the training was provided is indicated in the

Table 3.11.

0 10 20 30 40

Percentage value

Diploma

Certificate

12 & 10th complete

6-9 grade

<6 grade

Edu

catio

nal l

evel

58

Table 3.11 Numbers of trainees who involved in specific training. Specific area of training

Number of trainees

year Specific area of training Number of trainees

year

Diesel 16 2001/02 Engine diagnosis and tune up - - Electronic fuel injection(EFI)

7 2001 Machinery hydraulic System /pump

- -

Automotive electricity

4 2001 Air brake - -

Engine rebuilding

- - Work shop and maintenance management

6 2001

Unit-lock brake system

- - Welding 10 2001

Automatic transmission

- - others 3 2001

Training develops confidence of technicians/ maintenance personnel and fills a gap of skill.

From the above data, of the existing machinery staff (Table 3.11) 46 have got training on

different discipline in 2001 E.C. But on same discipline still there is no training provided.

Therefore, in WSSF having few trained repair personnel. If the majorities are not getting

training, it is very difficult to manage and perform maintenance effectively. Selective training

should take place with thorough identification of repair crew who attend, understand and

implement what he /she gets from training. It is observed that from previous trained personnel,

EFI was taken over by repair crew who don�t have well educational background. This results to

waste of time and resource. Therefore, FESD department should differentiate to whom and

which specific training is worth.

3.7. Agricultural Machinery Maintenance Management System In to-day�s Business, the achievement of success usually requires the ability to change and adopt

quickly. Organizational change is seen as a way addressing outdated style of management and

practices. The key to implementing effective organizational change is the wise management of

the process. In WSSF agricultural machinery maintenance management, as one can see from past

brief explanation regarding machinery status, WSSF faces a problem of maintenance

systematization. Many numbers of machineries are not in good status. In agriculture even single

machinery not working has meaningfullness. Many types of machinery are also beyond their

59

useful ages. This resulted to high operating cost, spare part cost and down time cost. Therefore,

they reduce profit and continuous loss that attribute to lack of proper maintenance management

system.

The existing maintenance of WSSF mainly categorized as follows:

Breakdown maintenance: As the name implies, break down maintenance (corrective

maintenance) is the system in which machinery is run until breakdown occurs. This is the most

practiced in WSSF field equipment.

The main causes of practicing breakdown maintenance system in the enterprise are:

Lack of proper maintenance management of machinery

Lack of commitment

Lack of proper training

Lack of upgrading of maintenance crew

Lack of proper skill and knowledge of machinery

Lack of convenient work place

Lack of proper repair and maintenance tool

Shortage of knowledge and skill of operators

The nature of work

Preventive maintenance: PM system is referring to those critical systems which have to reduce

the likely hood of failures of the obsolete minimum. PM includes minor lubrication maintenance

program which interns includes tasks of changing of engine oil, oil filter, oil bath type air

cleaner, final drive oil, front differential oil, gear box oil, oil of steering(power steering),

hydraulic oil, brake oil (brake fluid), coolant and greasing of components. To prevent

breakdown, preventive servicing is carried out with specific objective of detecting / locating

wear areas and ensuring perfect functioning.

In WSSF such type of maintenance is the second inhabited maintenance, the next to breakdown

maintenance. In this case the machineries are not overhauled until break down and manifest

some sign to be break down. In the enterprise there is a plan to change oil but plans are not

implemented.

60

Table 3.12a Types of PM and frequency of change of items. Machinery type MF tractors

4260 MF tractors 4260

machinery part

Items to be changed

Recommended frequency of time

Actual service time

Recommended frequency of time

Actual service time

Engine Engine oil 250 2400 250 240 Oil filter 250 560 250 240

Hydraulic system

Hydraulic oil 100 - 100 7956 Steering oil 100 190 100 -

Fuel system Fuel filter 500 1440 500 960 Fuel injector 1000 - 1000 -

Transmission Gear box oil 1000 6000 1000 11050 Differential Final drive

oil 1000 6000 1000 -

Brake Brake fluid 2000 - 2000 7500 Table 3.12b Types of PM and frequency of change of items Machinery type Same tractors

130-DT Same tractors 130-DT

machinery part

Items to be changed

Recommended frequency of time

Actual service time

Recommended frequency of time

Actual service time

Engine Engine oil 250 1680 250 - Oil filter 250 360 250 -

Hydraulic system

Hydraulic oil 300 360 300 - Steering oil 100 - 100 -

Fuel system Fuel filter 500 - 500 - Fuel injector 600 - 600 -

Transmission Gear box oil 1200 - 1200 - Differential Final drive

oil 1200 - 1200 -

Brake Brake fluid 2000 - 2000 -

61

Table 3.12c Types of PM and frequency of change of items Machinery type CAT D4E-SR Cameco loader

2254-SR machinery part

Items to be changed

Recommended frequency of time

Actual service time

Recommended frequency of time

Actual service time

Engine Engine oil 250 1400 250 4032 Oil filter 250 1400 250 4032

Hydraulic system

Hydraulic oil 1000 2160 1000 2688 Steering oil 1000 2160 1000 -

Fuel system Fuel filter 250 480 250 - Fuel injector 2000 - 2000 -

Transmission Gear box oil 1200 - 1000 - Differential Final drive oil 1200 - 1200 3456 Brake Brake fluid 2000 - 2000 - Table 3.12d Types of PM and frequency of change of items Machinery type Cameco loader Jon deer Cameco loader Jon deer

2254-SR

machinery part

Items to be changed

Recommended frequency of time

Actual service time

Recommended frequency of time

Actual service time

Engine Engine oil 250 - 250 - Oil filter 250 224 250 224

Hydraulic system

Hydraulic oil 1000 6912 1000 6912 Steering oil 1000 - 1000 -

Fuel system Fuel filter 500 768 500 768 Fuel injector 2000 - 2000 -

Transmission Gear box oil 1000 - 1000 - Differential Final drive oil 1200 1200 Brake Brake fluid 2000 - 2000 - The data were collected from the machinery history record card which includes the time at which

the machinery serviced (oil changed), inspected and every component was repaired and replaced.

Every interval of PM and CM is clearly registered. From these registered data, all the above

actual /serviced time of selected machinery are collected. The most common machinery�s part

which requires PM is selected and the interval (frequency) of time which is recommended by the

manufacturer is thoroughly collected from service manual.

62

The result is as shown in the above Table 3.12; it is clear that PM, proper lubrication/changing

oil for different parts of machine at correct recommended intervals were not taking place in

WSSF. In the contrary, two sections of FESD have machinery service chart which is planned.

Non-structured interview was made with sections head in order to be sure whether the planed

service time was implemented according to manufacturer recommendation. The interviewee

response was as follows; �for machineries which hour meters are functional, suppose engine oil

is changed every two weeks (heavy equipments that work 24 hours per day with three shifts) and

every month for those hour meters are not functional.�

From the above response one can understand that what it was planed and actual one was

different. Even for machinery which works for 24 hours per day, oil should be changed every 12

days and should be the same those hour meter didn�t work. If six days of holy day were

considered from thirty days, 24 effective days could be 480 hours. Therefore, the machinery

could get engine oil in accordance of manufacturers� recommendation.

Planned maintenance condition: in WSSF the existing maintenance that exercised are corrective

(break down maintenance) and few PM (minor lubrication and greasing). Planning is based on

past year experience. In the absence of proper PM. it is difficult to control maintenance

management system.

Maintenance planning requires forecasting, timely inspection, repair schedule, repair mechanics,

and spare part requirement. Various manufacturer recommended inspection program with fixed

time replacement and cleaning of fast moving items such as oil filter, air cleaner, seal, etc. and

condition based replacement of other inspected parts.

In WSSF FESD, the department planning for inspection is based on visual inspection, sound and

vibration of a system. There is no inspection with instrument that enables them to know the

status of machineries. There is no instrument that detect there condition of machinery such as

compression tester, leakage tester, tachometer, exhaust gas analyzer etc. Hence, their inspection

couldn�t be effective.

63

As indicated above WSSF FESD maintenance planning is dominated by breakdown /CM

(corrective maintenance) as shown in the table (3.13) below. When there is no proper PM, CM is

optimized which resulted to high spare part consumption and high down time.

Table 3.13 Machineries annual performance plan

S/No Target Set for

No of machines

PM month

1

wheel Tractor

100

JANUARY Frequency WTS HES ECS

I 200 164 36 s 100 82 18

po 0 co 0 cm 394 360 30

2

Crawler Tractor

17

I 34 34 s 17 17

po 0 co 0 cm 56 56

3 Sugar Cane carts

140

I 560 560 s 0

po 0 co 0 cm 250 250

3.8. WSSF FESD maintenance work shop facility In WSSF work shop of FESD which is exist in the garage is scattered way such as heavy

equipment and light duty vehicles work shop, wheel tractors work shop, and welding work shop

and tire and tube work shop. It accommodates office of maintenance department head and

section heads. The work shop is very old which takes about 48 years. There is no any

improvement of work shop since the days of Dutch. All the activities of maintenance including

major overhaul is performed in these work shop except rebuilding of crank shaft, re-boring and

honing of cylinder block, valve seat resurfacing and cylinder head resurfacing.

64

3.8.1. Effect of environment on workshop

It is observed that the work shop is wide open to allow much dust. During the time of wind

blowing dust accumulates very close to the work shop disturbs maintenance mechanics. Hence

movement interrupts their job.

Non- structured interview was done with section head and repair person on the effect of dust on

the regular job and maintenance quality. The response was as follows, �most of the time dusts

blew to the work shop. During summer it brings a lot of mud. But during winter and dry season

especially when engine components and fast moving such as bearing, bushing and seals were on

maintenance dust particles fall on this component and reduce maintenance quality.�

From the above response it is clear that during dry season, high wind movement causes dust

resulting in high frequent failure of bearing, bushes, internal part of engine such as cylinder,

connecting rod. Hence the existence of dust particles in this component was the main cause of

wear and failure. Generally speaking, the work shop is not organized to provide efficient quality

maintenance. Therefore, WSSF should expand work shop and make dusty areas of foundation

with cement concrete.

3.8.2. Work shop equipment facilities ABC analysis of the item present in the work shop was made to evaluate its facilities adequacy.

The degree of existence of equipment is given A as sufficient if the equipments are highly

available and enough, insufficient (B), if it exist but not enough and too old to do with it. And

not at all (C) if the equipments are not available in work shop.

Table 3.14 work shop equipment S.No Work Shop Equipment Tools & Equipment A B C 1 Machine Shop lathe machine 2 ,, milling machine 3 ,, Pillar drilling machine 4 ,, Valve seat and boring machine 5 ,, Drum lathe machine 6 ,, Cylinder boring and honing machine 7 ,, Electrical arc welding machine 8 ,, Power hack saw

65

9 ,, MIG welding machine 10 ,, Oxyacetylene and torch set 11 ,, Hand drill 12 ,, Hand grinder 13 ,, Crank Shaft Grinder 14 General Tool Light mechanic tool box 15 ,, Heavy mechanic tool box 16 ,, Lubrication unit 17 ,, Mechanical jack 18 ,, Floor jack 19 ,, Portable hydraulic jack 20 ,, Transmission jack 21 ,, Body man tool 22 ,, Bearing, hub, pulley extractor 23 ,, Vices 24 ,, Chain host 25 ,, Piston ring extractor 26 ,, Piston ring compressor 27 ,, Valve spring compressor 28 ,, Torch wrench set 29 ,, Cylinder liner removal & installation tool 30 ,, Compressor 31 ,, water pump for washing base 32 ,, Axle stand 33 ,, Crane 34 ,, Engine stand 35 ,, Gear box stand 36 ,, Tire inflation gauge 37 ,, Steam cleaning 38 ,, Wheel alignment gauge 39 ,, Tire inflation gauge 40 ,, Hydraulic system repair facilities 41 diagnosing tool Petrol engine compression tester 42 Ignition system testing set 43 ,, Exhaust gas analyzer 44 ,, Injection pressure tester 45 ,, Diesel engine compression tester 46 ,, Dynamic ignition timing adjuster 47 ,, Petrol engine compression tester 48 ,, Leakage tester 49 Electric shop tools Battery charger 50 ,, Batter water distillation unit 51 ,, Battery load tester 52 ,, Armature tester 53 ,, Head light alignment gauge 54 ,, Multi-meter

66

55 ,, Universal electric test bench 56 Measuring tools Vanier caliper 57 ,, Inner and outer micrometer 58 ,, Dial gauge ( dial indicator) 59 ,, Bore gage 60 Plastic gage

Total 19 7 34 Source: ASME 2002

From the above data Table 3.13, 56.67% of the equipments are not available in the work shop.

Out of total 31.67% are only available. Most of the machine shop equipments are found in the

factory work shop but do not exist in FESD garage work shop. Same engine components which

required rebuilding, resurfacing and grinding were taken to Addis Ababa. Duration of time it

takes to bring back was a minimum of two weeks which increase down time.

During dismantling of engine and other system or components of machineries were put on the

floor improperly due to lack of work bench. Other tools which help to identify machinery�s

internal condition did not exist. Hence, inspection was done visually which optimize trial and

error work. Generally safety tools such as cranes are very old which workers always worried

about with out proper safety. It is recommended to replace them with new ones.

Truly speaking, WSSF FESD work shop were not organized, the existing equipments are very

old working beyond its useful age. This affects quality and effective maintenance. Engine

diagnosing and performance testing equipment which used to identify the status of machinery

did not exist. So it is better to purchase new equipment in order to optimize PdM. In addition to

these special tools and testing instruments in WSSF were not existing. In this condition

machineries are not properly monitored and resulted in high frequency of breakdowns.

67

Measuring instruments which are indicated in the Table 3.13 were not in the work shop. In the

absence of such items, during complete overhaul of engines, there was no checking of

components with instrument. Rather they simply follow and focus on visual inspection. No

matter how the skilled technicians are there, with out proper tools and equipments it is

impossible to avoid frequent break down maintenance. WSSF should fulfill all these equipment

for the betterment of maintenance.

3.9. Agricultural machinery cost

3.9.1. Machineries replacement under accelerated depreciation

Machineries investment decisions are inherently complex because they involve time and money

today is worth than a money tomorrow, because in concerns interest. The case of time issues

regarding of machineries are machinery depreciate overtime, tax and market depreciation, age of

machinery (as it get older more prone to breakdown) leading to owner concern about timeliness.

In an economic analysis, machinery ownership (depreciation) is the one which depends on age

and time of the machinery. In the analysis behind, it is considered fundamentally depreciation as

a separate function of age and hours of use. That is ageing tractors without putting hours on it

will cause it to depreciate at a certain rate and putting more hour on tractors (machinery) without

making it any older will cause it to depreciate at different rate. It is also tested whether tractors

/heavy equipment/ equipment with different horse power, model and useful life depreciated at

different.

In WSSF FESD agricultural machinery form two divisions, i.e. tractors and heavy equipment

eight of them were taken. These were engaged with harvesting and land preparation activities.

68

Table 3.15 Types of machinery and respective useful life Si. no

Machinery type

Purchased year

Useful life

age of machine

Purchased price

model Horse power

Utilized department

1 Styer 1993 12 10 316882 9094 101 LPCD 2 CAT 1998 16 14 714457 D4E-

SR 125 hrvt

3 Cameco Loader

1998 16 14 1061822 2254 165 hrst

4 Case excavator

1993 16 9 1614102 1288 188 LPCD

5 MF 1998 12 14 370193 4260 104 hrst 6 MF tractor 1998 12 14 134875 5365 120 hrst 7 FNH

tractor 1998 12 4 300383 110-90 120 hrst

8 Same tractor

2000 12 3 451241 130-DT 130 hrst

From the data Table 3.15 above same, machineries have optimal life, some of them have

minimum. According to ASAE agricultural machinery data estimated use full life of tractors are

twelve (12) years or 10000 hours and for heavy equipment (modified tractors) sixteen (16) , but

internal revenue office of Ethiopian useful life for tractors are twelve years and twenty years for

heavy machineries. In case determine useful life of machinery both system were taken but, in

case of determining depreciation assuming 12 years (10000) hours for tractors and 16 years for

heavy equipment was taken.

3.9.2. Effect of machinery depreciation on economic life

As it was discussed above machineries depreciate (loss in value) due to time and age. In WSSF

all machineries assumed to be on work through physical year. In reality most of the machineries

were idle during summer when the factory is not in operation, is about three months. In this

condition when there was no harvesting taken place machineries were not available on work. In

the mean time of factory intended production machineries are ready for operation and took nine

months continuously with three shift working time. Almost for twenty four (24) hours a day.

There was no time for machineries being idle (take rest) unless, or during non operation and

operational down time. Therefore, the researcher identify optimal life span of machineries in this

working condition with respect to standard useful life of machineries that set according to ASAE

69

and Ethiopian revenue bureau disposal time. For this particular case harvesting and LPCD

department machineries were considered, an average annual working (seasonal) working hours

were determined optimal life span as shown in the Table 3.16 below.

Table 3.16 Effect of annual working hours on machinery useful life.

S,no

Machinery type

model Current age

Useful life Average effective working hrs/year

Total operational hours/ year

Economic life /year ASAE EIR

according to ASAE

According to EIR

1 Camico loader

2254 14 16000 20000 1537 3242 5 year 6year

2 CAT D4E-SR

14 16000 20000 1359 3030 5.26 year 6.5year

3 Case excavator

1288 4 16000 20000 1403 3140 5 year 6.4year

4 MF tractor 4260 14 10000 12000 1982 3136 4 year 4year 5 MF tractor 5365 14 10000 12000 1011 2178 5 year 5 year 6 FNH

tractor 110-90 4 10000 12000 1629 3078 3.25 year 3.8 year

7 Same tractor

130-DT 3 10000 12000 2042 3832 2.6 year 3.1year

8 komatsu D41E 4 16000 20000 1267 2648 6 year 7.5 year As everyone can see from the data in the Table 3.16 above, most of the machineries attain their

useful life within five years. According to ASAE tractors operating hours per year are one

thousand (1000) hours and the economic life is twelve (12) years or ten thousand hours. From

the data it is clear that average annual operating hours are 3000 hours because of the fact that

tractors operated in three shifts per day. Continuous operations for four years to attain optimum

useful life. Likely for heavy equipment like cameco loader average operating hours is similar to

that of tractors, and optimum life span a trained with in less than six years to be 16000 hours.

Therefore, in WSSF field equipment accelerated depreciation of machineries resulted to

reduction of useful life to a great minimum.

Hence, putting more working hours on tractors without making it any older caused it to deprecate

at faster rate than aging tractors without putting many hours on it.

70

3.9.3. Machinery depreciation cost under accelerated depreciation and

aging.

In order to determine depreciation value of agricultural machineries it requires commonly

purchased price and economic life (useful life) of the machines. In WSSF FESD depreciation

cost has been inhabited with straight line method. And the researcher used both declining

balance method and straight line method. For this particular case data of machineries were taken

from Table 3.15.

Table 3.17 depreciation cost of machineries in SLM and DBM

Age of the machine

Depreciation-1 SLM

Depreciation-2 DBM

Remaining value-1 SLM

Remaining value-2 DBM

0 0 0 316882 316882 1 23766 52814 293115 264068 2 23766 44012 269349 220056 3 23766 36896 245583 183160 4 23766 30588 221817 152572 5 23766 25478 198051 127093 6 23766 21225 174285 105868 7 23766 17680 150519 88188 8 23766 14727 126753 73461 9 23766 12268 102987 61193

10 23766 10220 79225 50973 11 23766 8512 55455 42461 12 23766 7091 31689 35370

71

Fig 3.7a comparison of SLM & DBM depreciation

Fig. 3.7b Comparison of salvage value in both methods

From the above figure3.7a, two methods of depreciation cost were determined. The first one is

straight line method which the enterprise has been using and has constant asset value

depreciation while book values of the machinery are reduced with different rate. For the second

case, declining balance method, depreciation cost of machinery is not constant and the

72

machinery depreciated at different amount each year but decimal rate of depreciation remain

constant and has a value of 0.875for heavy equipment and 0.833for tractors when the

machineries are under accelerate depreciation were not considered. Conversely the above value

decimal rates were changed to 0.6 and 0.5 respectively, for heavy equipment and tractors When

machineries are under accelerated depreciation where considered. In case of DBM it is seen from

the figure (3.7a), at the beginning of the year machinery depreciate much more and slowly as it

become aged than SLM. Comparably accumulated depreciation costs of the machineries are high

in DBM. These values are higher under accelerated depreciation (five years and four years for

heavy equipment and tractors respectively). For example CAT D4E SR 92.2% of birr should be

put aside in order to replace the same model of machinery in fourteen (14) years. This is the best

solution to replace machineries at expected optimal life span which reduces maintenance and

repair cost, spare part cost, fuel and lubrication cost which happened with age.

Agricultural machineries which have different horse power but have the same useful life

depreciate at different amount. Therefore, WSSF machinery depreciation cost that has been

collectively registered should be separated. Since same machineries work for limited hours and

some of it engaged with excessive and sever work, depreciation cost should be depends on

amount of hours per years they used. Finally, even though SLM of depreciation is used in WSSF

DBM should be implemented in order to determine the actual value of the machinery at any age.

3.9.4. Capital recovery model for agricultural machinery

As it indicated in the capital recovery section of literature review, capital recovery is the amount

of birr that should have to set aside each year just to replace the value of cost due to depreciation

(loss in value and interest cost of machineries ). Its mathematical model is as follows:

IRRVCRFDTCR -----------------------------------------------------------------------3.6 Capital recovery which is indicated in the section two and capital recovery factors exist in

appendix 3.Therefore, Table 3.18 below shows capital recovery effect with age.

73

Table 3.18 CAT D4E SR capital recovery cost with age.

Age CR Age CR Age CR Age CR Age CR

1 132175 4 424186 7 24008 10 14929 13 9587

2 81498 5 34394 8 20376 11 12687 14 8278

3 54290 6 28537 9 15490 12 11080

Figure 3.8 Capital recovery VS effect of age 3.10. Effect of Age on Insurance IN WSSF insurance was paid for machinery on the basis of on road and off road. Since

enterprise machineries were not participated on public road insurance payment for risk is

independent of public transport like Isuzu, bus etc. Therefore, insurance payment or cost was

described as the following mathematical model;

rateinsuranceSDPI .2

3.7

74

Table 3.19 Effect of age on insurance cost.

Styer tractors 9094 CAT D4E-SR Machinery age Insurance cost Insurance cost

1 3010 6787 2 2750 6363 3 2520 5992 4 2350 5667 5 2209 5383 6 2097 5134 7 1994 4916 8 1912 4726 9 1884 4559 10 1787 4414 11 4286 12 4174

13 4027 14 3992

Fig.3.9 Insurance cost with respect to age of machinery As it is seen from the Figure 3.9, insurance cost decreases as the machinery gets older. When the

machinery age was new insurance cost was higher. This indicates that the risk to be taken by

insurance company was high. Insurance cost of each machinery was different one from the other.

This mainly depends up on the original value of the machinery, loss in value, and insurance rate.

Comparing two machineries of above Figure (3.9), insurance cost of CAT D4E �SR is higher

than insurance cost of styer tractors.

75

3.11. Housing cost of agricultural machinery

Even though, shelter is one of the most important things to be considered in agricultural

machineries, in WSSF it was observed that many machineries were exposed to Sevier whether

condition (sun, rainy and dust). The enterprise have no any payment (cost) paid for housing.

Whether condition changed physical appearance of machineries when it exposed to sever sun for

a long period of time due to lack of shelter (housing). This also reduced the value of the

machines. Therefore, it is recommended that WSSF would prepare shelter for the sack of proper

care and handling of machineries.

3.12. Agricultural machinery repair and maintenance cost Agricultural machineries i.e. tractors and heavy equipment (articulated tractors) repair and

maintenance are essential; in an effort to guarantee a high standard machine performance and

reliability (a measure of confidence which can be placed on a machinery to complete a planned

duty cycle with component failure).

In WSSF FESD repair and maintenance required cost which includes the cost of break down

which required spare parts and cost of preventive maintenance , which required changing of

same parts of machine like oil filter, air cleaner etc. where under the category of repair and

maintenance cost. In other farm machinery which was owned by private sector and farmers

repair cost include labor cost (wage of drivers and mechanics). But in WSSF labor cost was not

considered as repair and maintenance cost.

In order to study theoretical and actual repair and maintenance cost, eight machineries which

have different class, horse power, service life, and model were used. To determine accumulated

repair and maintenance cost model of ASAE (1983) were used for theoretical ones. The model is

as follows:

76

2

10001

RFn

nnAH

CLPRFARM

3.8

Where: ARM-accumulated repair and maintenance cost

RF1-repair factor one (0.007 and 0.003 for tractors and heavy machineries)

CLP-current list price (purchased price of machineries

AH- Accumulated hours

RF2- repair factor two (2 for both tractors and heavy machineries) The accumulated repair and maintenance costs are based on accumulated repair and maintenance

cost to reduce the availability of the cost due to different in timing of the repairs. The

accumulated use of tractors was given as engine hour which was assumed to be constant in each

year i.e. one thousand per year divided by 1000 , whilst that for machines was given as operating

hours divided by 1000. The accumulated repair and maintenance cost for both theoretical and

actual compared value resulted for each type of machineries were shown in the table (3.20a-h)

and Figure (3.10a-h) below.

Table 3.20a Theoretical and actual repair cost (birr) of styer 9094

Stye

r (9

094)

trac

tor

ARM

cos

t

Age

1 2 3 4 5 6 7 8 9 10

THE

O.

2218 8872 19962 35488 55450 79848 108682 141952 179658 221800

ACT

U. 3000 25610 82770 99299 128078 154771 112670 99728 44218 0

Fig. 3.10a Yearly accumulated repair and maintenance cost (birr)

77

Table 3.20b Theoretical and actual repair cost (birr) of CAT D4E-SR

CA

T D

4E-S

R

Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14

THEO.

5000

2000

4

5400

9

8001

6

1250

25

1800

36

2450

49

3200

76

4050

81

5001

00

6051

21

7201

44

8451

69

9801

96

ACTU.

6250

1500

3

6751

1

1000

20

1562

81

2250

45

3063

11

4000

95

5063

51

5312

10

5560

70

4987

61

4631

85

5346

78

Fig 3.10b. Yearly accumulated repair and maintenance cost (birr) Table 3.20c Theoretical and actual repair cost of cameco loader

Cam

eco

load

er

Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Theo

.

74

33

2973

2

6689

7

1189

28

1858

25

2675

88

3642

17

4757

23

6020

73

7433

00

8993

93

1070

352

1256

177

1456

868

Act

ual.

5004

8040

1567

0

7090

0

1284

70

1340

10

2700

00

3400

00

4005

60

6269

82

4956

4

2593

9

1010

90

2500

56

78

Fig3.10c Yearly accumulated repair and mainetenance cost (birr) Table 3.20d Theoretical and actual repair cost (birr) of Case Excavator

Case

Exc

ava

tor A

ge 1 2 3 4 5 6 7 8 9

Theo

11298

45192 101682 180779 282450 406728 553602 723072 915138

Act

ual 1228

0 50370 150450 203970 556740 700599 314370 884888 705460

Fig. 3.10d Yearly accumulated repair and maintenance cost (birr)

79

Table 3.20e Theoretical and actual repair cost of MF 4260 Tractor

MF

4260

tr

acto

r

age 1 2 3 4 5 6 7

ARM

2591 10364 23319 42456 64775 93276 126959

cost 1398 32340 100884 105370 108750 111791 130460

Fig. 3.10e Yearly accumulated repair and maintenance cost Table 3.20f Theoretical and actual repair cost of MF 398

MF

398

ARM

Cos

t

Age of MF 398

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Theo

reti

c

al

94

4

3676

8496

1510

4

2360

0

3398

4

4625

6

6041

6

7646

4

9440

0

1142

24

1359

36

1595

36

1850

24

Act

ual

730

1540

345

0 94

70

2349

0

4120

1

4952

0

6387

5

9278

5

1085

56

1148

48

1446

34

1644

21

1903

50

80

Fig. 3.10f Yearly accumulated repair and maintenance cost Table 3.20g Theoretical and actual repair cost of FNH 110-90

FNH 110-90 tractor ARM cost

age 1 2 3 4

Theoretical 2102 8410 18918 33632

Actual 1870 4720 25460 88209

Fig. 3.10g Yearly accumulated repair and maintenance cost

81

Table 3.20h Theoretical and actual repair cost of same 130-DT

same 130-DT tractor ARM Cost

age 1 2 3

Theoretical 3158 12632 28422

actual 3947 15790 21316

Fig. 3.10h Yearly accumulated repair and maintenance cost Table 3.21 Theoretical repair cost summary

Theoretical accumulated repair and maintenance cost

age Styer(9094)

CAT D4E-SR

Cameco loader

Case excavator

MF 4260

MF 398

FNH 110-90

same 130-DT

1 2218

5000 7433 11298 2591 944 2102 3158

2 8872 20004 29732 45192 10364 3676 8410 12632 3 19962 54009 66897 101682 23319 8496 18918 28422 4 35488 80016 118928 180779 42456 15104 33632 5 55450 125025 185825 282450 64775 23600 6 79848 180036 267588 406728 93276 33984 7 108682 245049 364217 553602 126959 46256 8 141952 320076 475723 723072 60416 9 179658 405081 602073 915138 76464

10 221800 500100 743300 94400 11 605121 899393 114224 12 720144 1070352 135936 13 845169 1256177 159536 14 980196 1456868 185024

641061822007.0

82

Fig 3.11 Yearly accumulated repairs and maintenance cost As it was clearly showed from the e figure 3.11 accumulated repairs and maintenance cost of

heavy machineries i.e. case excavator, cameco loader, and CAT D4E-SR, were higher than

tractors. Even, among heavy equipments mentioned above ARM cost varies with accordance of

machinery capacity (horse power (HP)). For example, case excavator has 188HP, cameco loader

(165HP), and CAT D4E-SR (125HP). Therefore, theoretical yearly accumulated repair and

maintenance cost of case excavator was higher than cameco loader because of variation of horse

power. It was clearly understood that cost of repair and maintenance increased with age. The

power function which have independent variable X, and dependent variable Y, with confidence

level 1, assumed different, one values in some model according to the machinery type and it�s

described better the typical trend in repair and maintenance costs.

ARM cost of styer 9094 theoretical versus actual value was considered. Actual cost was higher

than theoretical until the age six (useful life) then declined radically. With the same fashion

machineries like CAT D4E �SR, Case Excavator, MF 4260,MF 398,FNH 110-90,and Same 130-

DT actual repair and maintenance costs were higher than theoretical except cameco loader which

the actual value was lower than theoretical. In same machineries it was clear that at the older age

the actual costs were reduced than theoretical due to the following possible reasons:

83

- Lack of spare parts

- Being idle of the machineries due to break down for a long time.

- No cost required because of cannibalization of spares from dead machine.

- Late coming of spare parts from abroad due to long chain of procurement process.

Theoretically and actual repair and maintenance costs were Low in the early stage of machineries

life and increased as machinery got older. Generally speaking, ARM costs for heavy equipment

were equal to that of purchased price at less than its useful life. It is also clear that repair costs of

aged machine were higher , the main reasons for these conditions were, inadequate PM which

resulted to series breakdown and which interns resulted to high spare part consumption and being

expensive of cost of repairing.

Hence, it was highly recommended that WSSF should implement PM, proper CM with thorough

source of failure identification, and implement disposing of old machine and then replacing with

new ones.

3.13. FUEL AND OIL COST Among the categories of machineries operating cost Fuel and oil is vital and very important.

Unless fuel is there, for fuel operated, machineries couldn�t operate. Therefore, fuel is food of

machineries (agricultural machineries unlike that of other vehicles do. Oil and lubricant as it was

stated in the literature review section (section two) has a function of lubricating (reducing

friction between moving part) , cleaning dirt impurities either metallic or others, reducing heat

created between moving part as a result of friction and reduce noise.

In WSSF most of the agricultural machineries tractors and heavy equipment) consumed diesel

fuel. Unlike that of ARM cost here also fuel and oil cost was studied. In this study theoretical

and actual fuel and oil consumption was analyzed (correlation analysis ) and compared in order

to determined how much fuel and oil was consumed by the machineries and whether the fuel and

oil costs were much more than theoretical ones. Since oil cost is 10% (ten percent) of fuel cost

theoretical fuel cost was determined by the equation 3.9 and the result was as showed in the

Table 3.22 and Figure 3.12 and appendix 9.

84

FC diesel=MAX PTO kw0.223price of dieselhours of use --------------------------3.9

Price of fuel and oil different from time to time and the same is true for hour of use due to fluctuating of operating hours of machinery. Table 3.22 Theoretical, actual and difference of fuel and oil cost Styer tractor

styer tractor (9094)

se.year Theoretical FC Actual FC Deference Theoretical oc Actual OC Deference 1 188192 225329 37137 18819 30430 11611 2 195300 255071 59771 19530 34430 14900 3 202860 256502 53642 20286 30930 10644 4 183330 379945 196615 18333 32813 14480 5 207900 373887 129987 20790 27530 6740 6 245642 406291 160649 24564 21124 3440 7 308000 291962 16038 30800 27481 3319 8 222640 311304 88664 22264 15727 6537 9 137500 100174 37326 13750 11543 2207

10 119130 1167 117963 11913 11234 679

897792 74557

Fig.3.12a Yearly fuel consumption theoretical and actual for Styer tractor (9094)

85

Fig.3.12b Yearly oil consumption theoretical and actual for Styer tractor (9094) Table 3.23 Theoretical, actual and difference of fuel and oil cost of CAT D4E -SR

CAT D4E-SR se.year Theoretical FC Actual FC Deference Theoretical oc Actual OC Deference

1 284475 210930 73545 28447 24972 3475 2 269500 212340 57160 26950 25561 1389

3 269500 271430 1930 26950 26640 310 4 238700 307587 68887 23870 26960 3090

5 284900 384090 99190 28490 27102 1388

6 215600 332010 116410 21560 37320 15760

7 228690 270114 41424 22869 37775 14906 8 231000 340450 109450 23100 40462 17362

9 228690 411560 182870 22869 38527 15658 10 238700 432916 192216 23870 31438 7568 11 377122 387817 10695 37712 37270 442

12 361800 349460 12340 36180 37261 1081

13 250185 349560 625 35618 29255 5763

14 321600 350320 28720 32160 13044 19116

995462

107308

86

Fig.3.12c Yearly fuel consumption theoretical and actual of CAT D4E -SR

Fig.3.13 d Yearly oil consumption theoretical and actual CAT D4E -SR From the figure 3.12 and 3.13 above it could be seen than there was a great variation between

theoretical and actual cost fuel and oil. Fuel and oil cost increased with age, as the machinery get

older both fuel and oil costs showed slightly decrement. For this, the following points could be

possible reasons:

Decreasing of operating hours as age increased

Increasing of down time and

Frequency of breakage (failure).

87

In general in WSSF machinery fuel and oil cost consumption was high. This resulted reduction

of income of enterprise. WSSF should thoroughly think of it to change and replace aged

machineries with new ones. Not only this but also, if there is no proper PM machinery couldn�t

overhauled at recommended time interval. Hence internal engine parts like cylinder bore, piston,

valve seat etc highly worn out and resulted to high fuel consumption. Due to loss of power

machineries which have low engine performance could consume much fuel and oil. So, WSSF

should provide machinery performance testing instrument in order to control the condition

machinery and fuel consumption. In doing so, top level management should be committed and

give ear to the sound of FESD for the betterment of machinery performance and fuel economy.

88

CHAPTER 4

Conclusions and recommendations

4.1. Conclusions Based on the findings in the chapter three, agricultural machineries maintenance management

system in WSSF needs much improvement. Maintenance department (FESD) of this enterprise

should be well equipped with resources to assure the cost effective availability of machineries to

increase productivity of sugar. As it is seen in the section three (chapter three), maintenance has

great impact on the productivity improvement but it has received not much attention in the

WSSF.

In this chapter it is concluded that in WSSF FESD most of the work order generated from break

down of machineries which shows most of the maintenance activities are dominated by

corrective action rather than preventive. One of the main causes of the problems is lack of

effective machinery maintenance management system. This can be generalized by: implementing

proper preventive maintenance, lack of proper machineries replacement and disposal policy

(plan), lack of use of proper technology and adopt appropriate training, shortage of the fittest,

well trained technical professional manpower, adoption of try and error (traditional) maintenance

without know how of equipment system. The existence of high percentage of bad status of

machineries reveals the problem of maintenance management system. Machineries in bad status

are allotted to operation without proper maintenance in order to cover assigned field work. As a

result considerable numbers of agricultural machineries are operating with high fuel cost, oil cost

and spare part cost was investigated. This can be seen easily from the investigation of

agricultural machinery cost. Lack of preventive maintenance, shortage of spare part, absence of

performance measuring instrument, inconvenient work shop place and lack of work shop

facilities and improper data recording and some are evidenced to poor maintenance management.

Thus, this paper finds out the causes of frequent break down and ways to minimize them in order

to increase machineries availability and reducing down time. Machineries daily operating hours

without considerable rest are longer, which affects viscosity of engine oil and faster wear of

machinery components. It is concluded that machineries average operating hours are longer. This

resulted in accelerated depreciation of machineries and shortens the economic life than expected.

89

Higher frequency of repair and maintenance caused deterioration of the machineries from time to

time. Thus some of the machineries don�t give expected service after repaired finally WSSF are

on the expansion program. Wake Tiyo and Dodota sugar cane wide farm yards are the parts of

this. It requires many in numbers of agricultural machineries and well being huge enterprise.

Being competent is a matter of survival. If the machineries could not be handled and maintained

cane yard couldn�t be cultivated, planted, and harvested and cane couldn�t be supplied to the

factory as a row product then cane sugar production will be in question.

Having all these problems above it is very difficult to proceed and even it leads the factory to

shut down unless radical change will be brought on maintenance management system of the

machinery.

4.2 Recommendations In order to solve the existing problem of maintenance management of WSSF FESD the

following recommendations are forwarded based on the study.

1. Maintenance should be an enterprise program of action as one of the strategy in being

productive and competitive in production of sugar and related product and FESD should

be emphasized as it is one of the main areas of the sugar productivity optimization.

Therefore, implementing preventive maintenance which is recommended in this paper

should be implemented effectively for better achievement:

Professional persons who were well trained with Automotive Technology and

Agro mechanics (agricultural machinery engineering) should be assigned for

proper scheduling of preventive maintenance.

Strict follow up of scheduled time interval should be done by assigning

professional.

2. Maintenance awareness and commitment should be created in the enterprise starting from

top management in the organization up to lower level of maintenance staff through

training and seminar. Conduct open discussion for top level management, maintenance

90

department head, sections head about the existing problem in maintenance. FESD should

present the revealing the major problems and related issues should be discussed.

3. WSSF enterprise should encourage their machinery operators to become familiar with the

machineries they operate. Intensive training should be provided for them to acquire: the

ability to understand machineries function and systems; and the ability to detect causes of

abnormality when happened; the ability to monitoring the condition of machinery; the

ability to detect machineries problem and make correction, repair and maintaining; the

ability to handle and manage machineries. Very low grade level operators should be left

with mechanically controlled machineries. Furthermore, well qualified operators at least

who have diploma in Auto mechanics and Agro mechanics should be employed and on

job training should be provided for the sake of best care and reducing of frequent failure

advanced (electronic) machineries.

4. Empowering maintenance staff (mechanics) through intensive training should be given

due attention and conducted in sustainable manner to maximize the availability of

machineries in eliminating improper repair. This training should be only for those who

have qualification and have technical background to rebuild their capacity. Since

uneducated maintenance men are there, it is highly recommended that they should be

assigned for the other job where they fit or WSSF should let them to upgrade their

education to technical.

5. The machineries should be kept clean, maintenance areas should be kept clean too.

Because most of the abnormality develops from dirt machineries.

6. Daily, weekly and monthly check list should be available for every machinery to be

inspected by the operators and mechanics. The frequency of inspection should consider

history and the status of machineries. Hence WSSF FESD should have at list four (4)

planners for both sections who can manage this task to have effective PM schedule.

7. Those machineries which have long service life and beyond use full life (old

machineries) should be disposed and replaced with new one. Old machineries resulted to

91

high frequency of breakdown, high down time, high spare part cost, fuel cost and oil cost.

Therefore, WSSF should have machinery disposal and replacement police in order to

maintain WSSF production on reliable condition.

8. FESD work shop doesn�t have arrangement and work bench on which repair is to be

done. There was no machineries performance measuring instrument which enabled to

identify machineries internal condition. Lack of these equipment lead the machineries

unable to detect low engine performance. Hence high operating costs are evidenced.

Therefore, it is highly recommended that WSSF should fulfill work shop facilities and

maintenance equipment for better maintenance activities.

9. Annual operating hours of machineries are longer than recommended values. This effect

puts machineries under accelerated depreciation and reduces useful life with less than

half percent. Therefore, WSSF should increase the number of machineries to implement

shift working and elongate optimal use full life.

10. Finally, no one works for himself in WSSF, each and every worker endeavors are for

better achievement of enterprise�s goal and put it in better position. Therefore, top level

management should accept and implement the requisitions of all important, equipment

and facilities addressed from FESD to be fulfilled in the maintenance work shop.

92

REFERENCES Ahimed MH, SAEED A B (1999), Tractors Repair and Maintenance Cost in Sudan, AMA Vol. 30(2). ASAE Standards, (1993). Percent of current list price, st.joseph & Michigan. USA, P.332 ASAE Standards, (1996). Capital recovery factors of agricultural machinery, st.joseph & Michigan. USA Bowers, W., 1992. Agricultural Machinery Management. Deere & company service. USA. Central Statistical Authority (CSA), 2003. Agricultural Sample Survey, 2001/02 (1994) area And production for major crops private peasant holdings, volume I, Statistical Bulletin No. 227. Demis,A, Afwork,B.,Getachew,B., & Tesfaye,K. (2002). Training Manual. Ethiopian Society of Mechanical Engineers. ESME. Ethiopia. Dr.M. Karim, 2008, Repair And Maintenance Cost Model For MF 285 Tractors, America Eurasian J. Agricalture and Environmental Scie. 4(1):76-80; IDOS Publisher, 2008, karaja, Iran. Ejigayehu lema, 2008, Implementing of total productive maintenance in Ethiopia textile industry. Addis Ababa university press, Ethiopia. Goense, D,(1995) fundamental of farm mechanization system , lecture note, wagagen agricultural university, Netherlands. Gopalarkrishnan.P & Benerji.A.K, (2006). Maintenance and Spare Part Management. India. New Delhi Hunt, D.R., 1983, Farm Power and Machinery Management: Laboratory Manual and Workbook, 7th ed., Iowa State University Press, Ames, IA Johansson, B., Nord C, 1999. TPM one way to increase competitiveness. Example from medium size company, Swedish, Kasten,T. & Dhuyvetter, K., 2008.Evaluting Tractor Ownership With Own Tractor Spread Sheet. K.State University Agro Economics. Http://www.agmanager.info/13/8/2009/htm. Ledet, W. P,.2009. Benefits of the Planned Domain Resource for Maintenance and Reliability Professionals. (www.dts.global.com.,13/08/2009) http. Norvel,J., 2007,Optimal machinery replacement under accelerated depreciation. Gregory Ibendahl, Mississippi. USA. Oakland, S.J.1993. Total Quality Management. Second edition.

93

Palmer, R.Dr., 1999, Maintenance Planning and Scheduling Hand Book. Mcgraw. Hill. USA. Pintelon, L.M & vanwasenhove, L.N. 1990, Maintenance Management Tool. OMEGA 18, Pg 50-70. Sharma, s.c 2003. Plant Lay Out and Material Handling, KHANAN. Delhi. India. Taylor, W.J., 2003, Integrated machinery management. (www.maintenance resource.com.6/12/2009. Teklahaimanot Tadele, 2007, improvement of maintenance management system a case study on walia intercity bus service enterprise. Addis Ababa university press, Ethiopia. Tesfaye Kidane, 2002. ASME Training Manuals. Unpublished. Yohannes.T, 2001, field equipment service department head. Personal Communication, Wonji, .15 July 2001. Tomoo, k., 2003,How to reduce manufacturing and management cost of tractor and agriculture equipment; agricultural engineering international, vol ,v, December 2003, Bologina Italy. Yoshinobu Ohta, Koui Inoue and Anthony,o. 1988, study on maintenance management of farm tractor; J. Fac.Agri.Uvate.Univ. 19 (1988):55-64, Kenya. William,F., 2009, Machinery Cost Estimates. University of minnisota, USA. Wireman,T.2000, Reliability And Validity Of The Maintenance Resource Management. International journal of industrial economics, Vol. 26, California, USA. Witney, B. 1995, Choosing And Using Farm Machines. Jonwiley & sons, inc. New York. USA.

94

Appendix -1 Repair and maintenance factor for field operation of Agricultural machineries Agricultural Machinery

EUL Estimated Useful Life

Total life cost% Repair factors RF1 RF2

2WD &stationery 12000 100 0.007 2 4WD & crawler 16000 80 0.003 2 Source: American society of agricultural engineers standards, (1993) Appendix -2 Accumulated repair costs as a percentage of new list prices Types of machinery

Accumulated hour 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

2WD 1% 3% 6% 11% 18% 25% 34% 45% 57% 70% 4WD 0% 1% 3% 5% 8% 11% 15% 19% 24% 30% American society of agricultural engineers standards, (1996) Appendix- 3 capital recovery factors of Agricultural machinery years

Interest rate 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%

1 1.020 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.110 1.120 1.130 1.140 1.150

2 0.515 0.523 0.530 0.538 0.545 0.553 0.561 0.0.568 0.576 0.584 0.592 0.599 0.607 0.615

3 0.347 0.354 0.360 0.367 0.374 0.381 0.388 0.395 0.402 0.409 0.416 0.424 0.431 0.438

4 0.263 0.269 0.275 0.282 0.289 0.295 0.302 0.309 0.315 0.322 0.329 0.336 0.343 0.350

5 0.212 0.218 0.225 0.231 0.237 0.244 0.250 0.257 0.264 0.271 0.277 0.284 0.291 0.298

6 0.179 0.185 0.191 0.197 0.203 0.210 0.216 0.223 0.230 0.236 0.243 0.258 0.257 0.264

7 0.155 0.161 0.167 0.173 0.179 0.186 0.291 0.199 0.205 0.212 0.219 0.226 0.233 0.240

8 0.137 0.142 0.149 0.155 0.161 0.167 0.174 0.181 0.187 0.194 0.201 0.208 0.216 0.223

9

0.123 0.128 0.134 0.141 0.147 0.153 0.160 0.167 0.174 0.181 0.188 0.195 0.202 0.210

10

0.111 0.117 0.123 0.130 0.136 0.142 0.149 0.156 0.163 0.170 0.177 0.184 0.192 0.199

11 0.102 0.108 0.114 0.120 0.120 0.133 0.140 0.147 0.154 0.161 0.168 0.176 0.183 0.191

12 0.095 0.100 0.107 0.113 0.119 0.126 0.133 0.140 0.147 0.154 0.161 0.169 0.177 0.184

13 0.088 0.094 0.100 0.106 0.113 0.120 0.127 0.134 0.141 0.148 0.156 0.163 0.171 0.179

14 0.083 0.089 0.095 0.101 0.108 0.114 0.121 0.128 0.136 0.143 0.151 0.159 0.167 0.175

15 0.078 0.084 0.090 0.096 0.103 0.110 0.117 0.124 0.131 0.139 0.147 0.155 0.163 0.171

16 0.074 0.080 0.085 0.092 0.099 0.106 0.113 0.120 0.128 0.136 0.143 0.151 0.160 0.168

17 0.070 0.076 0.082 0.089 0.095 0.102 0.110 0.117 0.125 0.132 0.140 0.149 0.157 0.165

18 0.067 0.073 0.079 0.086 0.092 0.099 0.107 0.114 0.122 0.130 0.138 0.146 0.155 0.163

19 0.064 0.070 0.076 0.083 0.090 0.097 0.104 0.11 0.120 0.128 0.136 0.145 0.153 0.161

20 0.061 0.067 0.074 0.080 0.087 0.094 0.102 0.110 0.117 0.126 0.134 0.142 0.151 0.160

American society of agricultural engineers standards, (1996)

95

Appendix-4 field equipment service department Agricultural machineries

S/N ACHINE TYPE MODEL PLATE NO.

PURCHASE YEAR ENGINE NO HP USER FUEL TYPE

1 MF TRACTOR 178 321 1969/1970 248 UA 18008 72 NN Diesel

2 MF TRACTOR 178 324 1970/1971 248 UA 33872 72 NN Diesel

3 MF TRACTOR 178 327 1970/1971 248 UA 33388 72 NN Diesel

4 MF TRACTOR 178 328 1970/1971 248 UA 33872 72 NN Diesel

5 MF TRACTOR 290 333 1979/1980 LF 22790-Y8389 F 82 NN Diesel

6 MF TRACTOR 290 334 1979/1980 LF 22790-Y8231 F 82 NN Diesel

7 MF TRACTOR 398 335 1993/1994 LJ31142 U-598659 X 101 Wonji factory shunting Diesel

7 MF TRACTOR 398 337 1993/1994 LJ31142 U-598665 X 101 NN Diesel

8 MF TRACTOR 398 338 1993/1994 LJ31142 U-598972 X 101 Civil Engineering Diesel

9 MF TRACTOR 398 342 1995/1996 LJ31142U-673625 A 101 FESD Diesel

10 MF TRACTOR 398 343 1995/1996 LJ31142U-673814A 102 NN Diesel

10 MF TRACTOR 398 344 1995/1996 LJ31142U-673813 A 101 Wonji park Diesel

11 MF TRACTOR 398 345 1995/1996 LJ31142U-673819 A 101 Lime kiln Diesel

12 MF TRACTOR 398 346 1995/1996 LJ31142U-673621 A 101 Plantation Diesel

13 MF TRACTOR 398 347 1995/1996 LJ31142U-673041 A 101 Shoa factory shunting Diesel

14 MF TRACTOR 3690 340 1993/1994 OC - 20344 200 NN Diesel

15 MF TRACTOR 4260 348 2002/2003 U 784876 J 104 Harvesting Diesel

16 MF TRACTOR 4260 349 2002/2003 U 784911 J 104 Harvesting Diesel

17 MF TRACTOR 4260 350 2002/2003 U 796962 J 104 Harvesting Diesel

18 MF TRACTOR 4260 351 2002/2003 U 796028 J 104 Harvesting Diesel

19 MF TRACTOR 4260 352 2002/2003 U 797342 J 104 Harvesting Diesel

20 MF TRACTOR 4260 353 2002/2003 U 796960 J 104 Harvesting Diesel

21 MF TRACTOR 4260 354 2002/2003 U 796963 J 104 Harvesting Diesel

22 MF TRACTOR 4260 355 2002/2003 U 796961 J 104 Harvesting Diesel

23 MF TRACTOR 5365 356 2004/2005 YA 31490 B000576 L 120 Harvesting Diesel

24 MF TRACTOR 5365 357 2004/2005 YA 31490 B000572 L 120 Harvesting Diesel

25 MF TRACTOR 5365 358 2004/2005 YA 31490 B000575 L 120 Harvesting Diesel

26 MF TRACTOR 660 359 2004/2005 YB 31494 B 000588 L 150 LPCD Diesel

27 MF TRACTOR 660 360 2004/2005 YB 31494 B 000594 L 150 LPCD Diesel

28 MF TRACTOR 660 369 2006/2007 YB31494-B000913 N 150 LPCD Diesel

29 MF TRACTOR 660 370 2006/2007 YB31494-B000914 N 150 LPCD Diesel

30 MF TRACTOR 5340 361 2004/2005 SE 8C 18B 672437 L 82 Wonji factory shuntinig Diesel

31 MF TRACTOR 5340 362 2004/2005 SE 8C 18B 672438 L 82 LPCD Diesel

32 MF TRACTOR 5340 363 2004/2005 SE 8C 18B 673191 L 82 LPCD Diesel

33 MF TRACTOR 5340 364 2004/2005 SE 8C 18B 672442 L 82 LPCD Diesel

34 MF TRACTOR 5340 365 2004/2005 SE 8C 18B 672441 L 82 Shoa factory shunting Diesel

35 MF TRACTOR 5340 366 2004/2005 SE 8C 18B 672440 L 82 Shoa factory shunting Diesel

36 MF TRACTOR 5340 367 2004/2005 SE 8C 18B 673190 L 82 LPCD Diesel

96

37 MF TRACTOR 5340 368 2004/2005 SE 8C 18B 672439 L 82 LPCD Diesel

38 MF TRACTOR 465 371 2006/2007 YA31491 B 003567 N 120 Expansion Project Diesel

39 MF TRACTOR 465 372 2006/2007 YA31491 B 003561 N 120 Expansion Project Diesel

40 MF TRACTOR 465 373 2006/2007 YA31491 B 003562 N 120 Expansion Project Diesel

41 MF TRACTOR 440 374 2006/2007 SC 8C 84B-692615 N 80 Expansion Project Diesel

42 MF TRACTOR 440 375 2006/2007 SC 8C 84B-692684 N 80 Expansion Project Diesel

43 MF TRACTOR 440 376 2006/2007 SC 8C 84B-692618 N 80 Expansion Project Diesel

44 MF TRACTOR 440 377 2006/2007 SC 8C 84B-692682 N 80 Expansion Project Diesel

45 MF TRACTOR 440 378 2006/2007 SC 8C 84B-692338 N 80 Expansion Project Diesel

46 MF TRACTOR 440 379 2006/2007 141 AC84 704413 B 80 Expansion Project Diesel

47 MF TRACTOR 440 380 2006/2007 141 AC84 704390 B 80 Expansion Project Diesel

48 MF TRACTOR 440 381 2006/2007 SC 8C 84B-692691 N 80 Expansion Project Diesel

49 MF TRACTOR 440 382 2006/2007 SC 8C 84B-692617 N 80 LPCD Diesel

50 MF TRACTOR 440 383 2006/2007 141 AC84 705482 B 80 LPCD Diesel

51 MF TRACTOR 440 384 2006/2007 141 AC84 705420 B 80 LPCD Diesel

52 MF TRACTOR 440 385 2006/2007 141 AC84 705398 B 80 LPCD Diesel

53 MF TRACTOR 440 386 2006/2007 141 AC84 705918 B 80 LPCD Diesel

54 FORD TRACTOR 6610 2 1984/1985 82 NN Diesel

55 FNH TRACTOR 80-66 s 1 2002/2003 917344 80 Civil Engineering Diesel

56 FNH TRACTOR 80-66 s 2 2002/2003 917077 80 Plantation Diesel

57 FNH TRACTOR 80-66 s 3 2002/2003 917127 80 FESD / Tyre Repair Diesel

58 FNH TRACTOR 80-66 s 4 2002/2003 917609 80 NN Diesel

59 FNH TRACTOR 80-66 s 5 2002/2003 919730 80 NN Diesel

60 FNH TRACTOR 80-66 s 6 2002/2003 920352 80 Harvesting Diesel

61 FNH TRACTOR 80-66 s 7 2002/2003 919989 80 Logistics Diesel

62 FNH TRACTOR 80-66 s 8 2002/2003 920329 80 Lime Kiln Diesel

63 FNH TRACTOR 110-90 9 2006/2007 87282 120 Harvesting Diesel

64 FNH TRACTOR 110-90 10 2006/2007 87480 120 Harvesting Diesel

65 FNH TRACTOR 110-90 11 2006/2007 84406 120 Harvesting Diesel

66 FNH TRACTOR 110-90 12 2006/2007 86557 120 Harvesting Diesel

67 STEYR TRACTOR 9094 958 1999/2000 420-83-J08239 101 Harvesting Diesel

68 STEYR TRACTOR 9094 959 1999/2000 420-83-J08240 101 NN Diesel

69 STEYR TRACTOR 9094 960 1999/2000 420-83-J08721 101 NN Diesel

70 STEYR TRACTOR 9094 961 1999/2000 420-83-J08236 101 Harvesting Diesel

71 STEYR TRACTOR 9094 962 1999/2000 420-83-J09166 101 NN Diesel

72 STEYR TRACTOR 9094 963 1999/2000 420-83-J08717 101 NN Diesel

73 STEYR TRACTOR 9094 964 1999/2000 420-83-J08715 101 NN Diesel

74 STEYR TRACTOR 9094 965 1999/2000 420-83-J08712 101 NN Diesel

75 SAME TRACTOR 130 DT 1 Jul-07 0001229-23964-07 130 LPCD Diesel

76 SAME TRACTOR 130 DT 2 Jul-07 0001217-23964-07 130 LPCD Diesel

77 SAME TRACTOR 130 DT 3 Jul-07 0001228-23964-07 130 LPCD Diesel

97

78 SAME TRACTOR 130 DT 4 Jul-07 0001203-23964-07 130 LPCD Diesel

79 SAME TRACTOR 130 DT 5 Jul-07 0001223-23964-07 130 Harvesting Diesel

80 SAME TRACTOR 130 DT 6 Jul-07 0001225-23964-07 130 LPCD Diesel

81 SAME TRACTOR 130 DT 7 Jul-07 0001209-23964-07 130 LPCD Diesel

82 SAME TRACTOR 130 DT 8 Jul-07 0001237-23964-07 130 LPCD Diesel

83 SAME TRACTOR 130 DT 9 Jul-07 0001238-23964-07 130 LPCD Diesel

84 SAME TRACTOR 130 DT 10 Jul-07 0001212-23964-07 130 LPCD Diesel

85 SAME TRACTOR 130 DT 11 Jul-07 0001221-23964-07 130 Harvesting Diesel

86 SAME TRACTOR 130 DT 12 Jul-07 0001226-23964-07 130 Harvesting Diesel

87 SAME TRACTOR 130 DT 13 Jul-07 0001235-23964-07 130 LPCD Diesel

88 SAME TRACTOR 130 DT 14 Jul-07 0001216-23964-07 130 Harvesting Diesel

89 SAME TRACTOR 130 DT 15 Jul-07 0001227-23964-07 130 Harvesting Diesel

90 SAME TRACTOR 130 DT 16 Jul-07 0001207-23964-07 130 LPCD Diesel

91 SAME TRACTOR 130 DT 17 Jul-07 0001205-23964-07 130 LPCD Diesel

92 SAME TRACTOR 130 DT 18 Jul-07 0001224-23964-07 130 LPCD Diesel

93 SAME TRACTOR 130 DT 19 Jul-07 0001208-23964-07 130 LPCD Diesel

94 SAME TRACTOR 130 DT 20 Jul-07 0001206-23964-07 130 LPCD Diesel

95 SAME TRACTOR 130 DT 21 Jul-07 0001230-23964-07 130 Harvesting Diesel

96 SAME TRACTOR 130 DT 22 Jul-07 0001204-23964-07 130 LPCD Diesel

1 KOMATSU D41E 3 2005/2006 30792033 110 Harvesting Diesel

2 KOMATSU D41E 4 2005/2006 30792638 110 Harvesting Diesel

3 KOMATSU D41E 5 2005/2006 30792862 110 Harvesting Diesel

4 CATERPILLAR D4E 405 1986/1987 46 V - 09513 80 Diesel

5 CATERPILLAR D4E-SR 407 1995/1996 9EB - 04699 125 Harvesting Diesel

6 CATERPILLAR D4E-SR 408 1998/1999 O7Z - 33903 125 Harvesting Diesel

7 CATERPILLAR D4E-SR 409 1998/1999 O7Z - 33859 125 Harvesting Diesel

8 CATERPILLAR D4E-SR 410 1998/1999 O7Z - 34010 125 Harvesting Diesel

9 CATERPILLAR D4E-SR 411 1998/1999 O7Z - 33863 125 Harvesting Diesel

10 CAMECO LOADER 2254 SP 3 1995/1996 10 E - 04565 165 Diesel

11 CAMECO LOADER 2254 SP 4 1995/1996 10 E - 04604 165 Diesel

12 CAMECO LOADER 2254 SP 5 1998/1999 10 E - 05319 165 Harvesting Diesel

13 CAMECO LOADER 2254 SP 6 2005/2006 PE 6068 T- 146810 165 Harvesting Diesel

14 CAMECO LOADER 2254 SP 7 2005/2006 PE 6068 T- 456972 165 Harvesting Diesel

15 CAMECO LOADER 2254 SP 8 2005/2006 PE 6068 T- 535987 165 Harvesting Diesel

16 CAMECO LOADER 2254 SP 9 2005/2006 PE 6068 T- 535986 165 Harvesting Diesel

17 CAMECO LOADER 2254 SP 10 2006/2007 PE 6068 T 595805 200 Harvesting Diesel

18 CATERPILLAR D6E -SR 617 1995/1996 8TD - 08173 200 LPCD Diesel

19 CATERPILLAR D7G -SA 712 1983/1984 62 Z - 01198 200 LPCD Diesel

20 CATERPILLAR D7G -SA 713 1993/1994 3306 200 LPCD Diesel

21 CATERPILLAR D7G -SA 714 2004/2005 10 Z - 43701 200 LPCD Diesel

22 KOMATSU D85E 1 1998/1999 77362 200 LPCD Diesel

23 KOMATSU D85E 2 1998/1999 77361 200 LPCD Diesel

24 KOMATSU D85E 6 2007/2008 98971 200 LPCD Diesel

25 KOMATSU D85E 7 2007/2008 9897O 200 LPCD Diesel

26 CAMECO 405 B 1 1998/1999 64 Z - 26019 250 LPCD Diesel

98

Appendix- 5 Trade in Value According to Goense (1995), in the USA, where large number of agricultural machinery is traded

on the second hand market data on actual resale value are available. Based on this data

machinery is classified in four groups. The resale value can be calculated as follows:

nPpRvn )920.0(68.0 1 For tractors and power unit

nPpRvn )885.0(64.0 2 For combine, crop Dreier, forage wagon, swather

nPpRvn )885.0(60.0 3 for most machinery

nPpRvn )885.0(56.0 For balers, forage harvester, sprayer and ensilage blowers 4 Where: Rvn- remaining value (scrap value) or salvage value

n- Age of the machinery (implement)

27 CAMECO 405 B 2 2002/2003 64 Z - 36010 250 LPCD Diesel

28 CAMECO 345 B 3 2005/2006 RG 6081H - 287296 250 LPCD Diesel

29 CAMECO 345 B 4 2005/2006 RG 6081H - 287620 250 LPCD Diesel

30 CAMECO 345 B 5 2005/2006 RG 6081H - 287298 250 LPCD Diesel

31 DRAG LINE 305 B 5 1985/1986 78 LPCD Diesel

32 CASE EXCAVATOR 1288 1 2000/2001 21400323 188 LPCD Diesel

33 DAEWOO EXCAC. 250 LCV 2 2004/2005 D 1146 T - 405424 EA 163 LPCD Diesel

34 NEW HOLL. DOZER D - 180 1 2006/2007 OOO366629 180 LPCD Diesel

35 CAT. MOTOR GRADER 120 G 6 1995/1996 9CB - 0464 150

Civil Engineering Diesel

36 VOL.MOTOR GRADER 730 B 7 2004/2005 OO940089 210

Civil Engineering Diesel

37 CAT. MOTOR GRADER 160 H 8 2006/2007 10 Z - 46187 160

Expansion Project Diesel

38 CAT. FRONT LOADER 950 G 1 1998/1999 6JK - 01751 180

Civil Engineering Diesel

39 KOM. FRONT LOADER

WA-320-3A 2 2005/2006 6D 108-38205 121

Expansion Project Diesel

40 DYNAPAC SOIL COM. CA-300 2 2005/2006 74220324

Civil Engineering Diesel

41 BACK HOE LOADER LP-90 B 1 2006/2007 OO366459 70

Expansion Project Diesel

42 CAT. FORK LIFT DP - 150 2 2002/2003 6D16 - UA 957271 165 Logistics Diesel

43 HYSTER 2 Logistics Diesel

44 HYSTER / TOW TR. / T6 AC 3 2005/2006 SER.NO. 60336 Logistics Diesel

45 HYSTER / TOW TR. / T6 AC 4 2005/2006 SER.NO. 60335 Logistics Diesel

99

Appendix- 6 Same Machineries Waiting For Spar Part

APPENDIX -7 Agricultural Machineries which are in sever whether condition due to lack of shelter

Appendix -8 Dusty Work Shop Area

100

Appendix-9A comparison of theoretical, actual and difference of fuel and oil cost of cameco loader-2254

cameco loader-2254 se.year Theoretical FC Actual FC Deference Theoretical OC Actual OC Deference

1 366210 258485 107725 36621 34103 2518 2 368550 285039 83511 36855 35090 1765 3 379080 289964 89116 37908 37550 358 4 349479 258910 90569 34948 40041 5093 5 315900 265700 50200 31590 41340 9750 6 321750 270904 50846 32175 41370 9195 7 345700 295450 49750 24570 42510 17940 8 234000 298750 64750 23400 44103 20703 9 257400 304150 46750 25740 48450 22710

10 253890 332104 78214 25389 51210 25821 11 371700 463808 92108 37170 62320 25160 12 486750 665170 178420 48675 87745 39070 13 442500 386276 56224 44250 87800 43550 14 354000 718112 364112 35400 86450 51050

101

Yearly fuel consumption theoretical and actual of cameco loader

cameco loader Yearly oil consumption theoretical and actual

102

Appendix-9B comparison of theoretical, actual and difference of fuel and oil cost of Case Excavator, 1288

case excavator-1288 se.year Theoretical FC Actual FC Deference Theoretical OC Actual OC Deference

1 248240 175766 72474 24824 11669 13155 2 234320 189450 44870 23432 17150 6282 3 205320 191470 13850 20532 19691 841 4 165880 214277 48397 16588 31241 14653 5 221096 237117 16021 22109 13642 8667 6 249400 259893 10493 24940 29497 4557 7 290880 304676 13796 29088 42201 13113 8 242400 332767 90367 24240 14470 9770 9 246440 349460 103020 24644 41264 16620

Case excavator Yearly fuel consumption theoretical and actual

103

Yearly oil consumption theoretical and actual Appendix-9C comparison of theoretical, actual and difference of fuel and oil cost of MF 4260

MF 4260 se.year Theoretical FC Actual FC Diference Theoretical OC Actual OC Deference

1 214016 171938 42078 21401 15420 5981 2 228800 83567 145233 22880 18300 4580 3 153152 120237 32915 15315 24241 8926 4 105088 114714 9626 10508 22370 11862 5 91200 93356 2056 9120 14538 5418 6 110144 81168 28976 11014 14135 3121 7 102400 109236 6836 10240 18860 8620

MF 4260-Yearly Fuel consumption theoretical and actual

104

MF 4260- Yearly oil consumption theoretical and actual Appendix-9D comparison of theoretical, actual and variance of fuel and oil cost of MF 398

MF 398 se.year Theoretical FC Actual FC Diference Theoretical OC Actual OC Deference

1 101660 150000 48340 10166 12500 2334 2 115000 145000 30000 11500 12301 801 3 114080 133100 10920 11408 11044 364 4 120060 120110 50 12000 11102 898 5 172160 115679 56481 17216 15820 1396 6 66240 150410 48170 6624 10710 4086 7 99360 160510 61150 9936 10700 764 8 171644 160410 11234 17164 10646 6518 9 175584 160511 15073 12558 14985 2427

10 146640 105090 136050 14664 13065 1450 11 111860 204734 92874 11168 13214 2046 12 65988 141724 75736 6598 12948 6348 13 64766 162149 97383 6776 12229 5453 14 64202 103849 39647 6420 11741 5321

105

MF 398-Yearly fuel consumption theoretical and actual

MF 398-Yearly oil consumption theoretical and actual Appendix-9E comparison of theoretical, actual and variance of fuel and oil cost of FNH-110-90

106

se.year 1 2 3 4 Theoretical FC 153772 140600 144300 107300 FNH-110-90 Actual FC 125167 131340 145600 112162 Deference 28605 9260 1300 4862 Theoretical OC 15377 14060 14430 10730 Actual OC 10691 11700 15950 12162 Deference 4686 2300 1520 1432

FNH110-90 Yearly fuel consumption theoretical and actual

FNH 110-90 Yearly oil consumption theoretical Vs actual Appendix-9F comparison of theoretical, actual and variance of fuel and Oil cost of same 130-DT

107

same 130-DT

se.year Theoretical FC Actual FC Deference

1 224280 242860 18580

2 236040 260450 24410

3 253680 290350 36670

130-DT Yearly oil consumption theoretical Vs actual