evaluating the effectiveness of maintenance strategies slides[1]
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Evaluating the effectiveness of maintenance strategies
Introduction (Pinjala and Pintelon, 2004) conducted survey
within Belgian industries, 71% out of 46 respondent considered that maintenance could be used as a tool for enhancing company’s competitive advantage.
2 groups: Concern consistencies Concern contribution
This paper, Hayes and Wheelwright’s 4 stage framework is applied in identifying and evaluating the effectiveness of a given maintenance strategy.
Maintenance strategy and its effectiveness Swanson (2001) explains 3 types of maintenance
strategies: Reactive strategy (CM) Proactive strategy (PM and PDM) Aggressive strategy (TPM)
Tsang (2002) identifies 4 strategic dimensions of maintenance: Service-delivery option Organization and work structuring Maintenance methodology Support systems
Often leads to the simplification of the maintenance function just as corrective and/or preventive maintenance.
Maintenance strategy and its effectiveness Define as a series of unified and integrated pattern of
decisions made in 4 structural and 6 infrastructural decision elements. (Pinjala and Pintelon, 2004). Table 1.
Cholasuke et al. (2004) studied the status of maintenance management in UK manufacturing organizations based on a pilot survey. They categorized the maintenance effectiveness measures into 9 areas based on a literature study: Policy deployment and organization Human resources management Financial aspects Continuous improvement Contracting out maintenance Maintenance approach Task planning and scheduling Information management and CMMS Spare parts management
Table 1
Maintenance strategy and its effectiveness… Campell and Jardine (2001) propose 5 levels
of maintenance excellence: Novice Foundation Apprentice Journeyman Mastery
This paper mainly considers the consistency and contribution criteria suggested by Hayes and Wheelwright.
Methodology Evaluating such strategy can be much more
complex. Appropriateness of a given maintenance
strategy should mainly depends upon manufacturing and business requirements.
Should internally consistent with the strategy elements (Table 1)
Should also externally consistent with the business environment (e.g. governmental restraints on safety and the environment).
Stage 1: Minimize negative potential – internally neutral
Manufacturing Strategy Effectiveness Framework
Maintenance Strategy Effectiveness Framework
• External experts are used in making
decisions about strategic manufacturing
issues
• Internal management control systems
are the primary means for monitoring
manufacturing performance
• Manufacturing is kept flexible &
reactive
• Maintenance is considered just as a
secondary function. No internal
expertise is developed.
•Rely heavily on OEM or external service
provider to solve complex equipment
problems
• Maintenance on reactive basis
• Objective of maintenance is to keep
equipment running
Case example Stage 1: Internally neutral
DSN (not its real name) annual sales of over $800million.
Employ 5000 people. Maintenance employ 24% of the total workforce. Demand exceed supply. Downtime is around 16% while competitors maintain it
at less than 10%. Outsources more than 50% of its maintenance
activities. More than 70% of its maintenance is done on a
reactive basis. Total annual budget on maintenance is around
$30million, represent 15% of total operating costs.
Stage 2: Achieve parity (neutrality) with competitors – externally neutral Manufacturing Strategy
Effectiveness FrameworkMaintenance Strategy
Effectiveness Framework
• “Industry practice” is followed
• Planning horizon for manufacturing investment decisions is extended to incorporate a single business cycle
• Capital investment is regarded as the primary means for catching up to competition or achieving a competitive edge
• “Industry practice” is followed in matters regarding maintenance practices, outsourcing, equipment (buying equipment that require less maintenance), similar to its competitors
• Majority of maintenance is carried out on reactive basis and reasonable amount of preventive maintenance is also done
• Maintenance role is neutral at best but they define that role in relation to its competitors
Case example Stage 2: Externally neutral
Stage 3: Provide credible support to the business strategy – internally supportive
Manufacturing Strategy Effectiveness Framework
Maintenance Strategy Effectiveness Framework
• Investment are screened for consistency with business strategy
• Changes in business strategy are automatically translated into manufacturing implications
• Longer term manufacturing developments and trends are systematically addressed
• Maintenance are incorporated in company’s overall strategy.
•Not fully exploited
•Maintenance crew are better equipped with skills and training
•Proactive maintenance policies are carried out
•Percentage of breakdown maintenance in low
Case example Stage 3: Internally supportive
Stage 4: Pursuing a competitive advantage – externally supportive Manufacturing Strategy
Effectiveness FrameworkMaintenance Strategy
Effectiveness Framework
•Efforts are made to anticipate the potential of new manufacturing practices and technologies
•Manufacturing is centrally involved in major marketing and engineering decisions
•Long-ranged program are pursued in order to acquire capabilities in advance of needs
• Maintenance considerations are incorporated in major capital investment decisions, also as a potential source of a competitive advantage
• Often integrated with engineering
•Managed at world-class standards in all aspects thru continuous improvements
•Equal attention to maintenance and its potential is fully exploited
Case example Stage 4: Externally supportive
Conclusion This paper mainly represents an attempt to
explore the operational issues of Hayes and Wheelwright’s four-stage framework with respect to maintenance strategies.
These case examples indicate that maintenance, if managed properly, can also contribute to enhancing the competitive advantage of a company.
This study shows that companies that seek a balance of excellence in all of their functions perform better.