Chapter 5 and 6
Chapter 5 and 6
Maintenance
management system
2024
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Introduction
• Maintenance management is an essential discipline in any
organization that relies on equipment, facilities, or
infrastructure to operate efficiently.
• maintenance management involves the systematic process
of maintaining and optimizing equipment and systems to
ensure they operate at peak efficiency. This includes
planning, scheduling, and executing maintenance activities,
as well as monitoring and analyzing performance data.
• An effective maintenance management strategy minimizes
downtime, extends the lifespan of assets, and ensures
safety and compliance with regulatory standards.
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Components of maintenance
Effective maintenance management involves several key components:
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Importance of Maintenance
Management
• Cost Efficiency: Proper maintenance reduces the likelihood of unexpected
breakdowns and costly repairs, leading to significant savings.
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Types of Maintenance
• 1. Corrective Maintenance
Definition: Corrective maintenance involves repairing equipment after a
failure has occurred. It is reactive in nature and aims to restore functionality.
Examples:
• Fixing a broken conveyor belt after it stops working.
• Replacing a failed motor in a production line.
Advantages:
• Simple to implement as it only occurs when needed.
• Can be cost-effective for non-critical equipment.
Disadvantages:
• Can lead to unplanned downtime.
• Often results in higher repair costs due to emergency situations.
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Types of Maintenance
2. Preventive Maintenance
• Definition: Preventive maintenance involves regular, scheduled
maintenance activities aimed at preventing equipment failures
before they occur.
Examples:
• Changing filters every three months.
• Lubricating machinery parts based on manufacturer
recommendations.
Advantages:
• Reduces the likelihood of unexpected breakdowns.
• Extends the lifespan of equipment and improves reliability.
Disadvantages:
• Requires planning and resource allocation.
• Can result in unnecessary maintenance if not properly scheduled.
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Types of Maintenance
3. Predictive Maintenance
• Definition: Predictive maintenance uses data analysis and condition
monitoring tools to predict equipment failures before they occur, allowing
for timely intervention.
Examples:
• Using vibration analysis to monitor machinery health.
• Implementing thermal imaging to detect overheating components.
Advantages:
• Reduces maintenance costs by addressing issues before failure.
• Minimizes downtime and maximizes equipment availability.
Disadvantages:
• Requires investment in monitoring technology and training.
• Data interpretation can be complex and may require specialized
expertise.
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Proactive Maintenance
• Proactive maintenance is a strategic approach that focuses on
preventing equipment failures and optimizing performance
through planned activities. Unlike reactive maintenance,
which occurs in response to equipment breakdowns,
proactive maintenance emphasizes anticipation and
prevention.
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Features of Proactive Maintenance
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Benefits of Proactive Maintenance
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Implementation Strategies
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Downtime Maintenance
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Features of Downtime Maintenance
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Benefits of Downtime Maintenance
• Minimized Operational Disruption: By scheduling maintenance
during non-operational hours, organizations can avoid interruptions
to production, maintaining workflow and efficiency.
• Increased Maintenance Efficiency: Technicians can dedicate
uninterrupted time to perform thorough maintenance tasks,
leading to more effective and comprehensive maintenance
activities.
• Enhanced Equipment Reliability: Regularly scheduled downtime
maintenance helps ensure that equipment is kept in optimal
condition, reducing the likelihood of unexpected failures during
production.
• Cost Management: By planning maintenance during downtime,
organizations can better manage labor costs and potentially reduce
overtime expenses associated with emergency repairs.
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Implementation Strategies
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Maintenance Planning and Scheduling
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Maintenance Scheduling
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Benefits of Effective Planning and
Scheduling
• Reduced Downtime: Well-planned and scheduled
maintenance minimizes unplanned downtime, ensuring
that equipment remains operational and productive.
• Improved Resource Utilization: Efficient scheduling allows
organizations to make better use of personnel and
resources, reducing wasted time and costs.
• Enhanced Reliability: Regular maintenance performed
according to a plan helps maintain equipment in optimal
condition, leading to improved reliability and performance.
• Data-Driven Decisions: Planning and scheduling processes
provide valuable data that can inform future maintenance
strategies and improvements.
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Best Practices
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Data Analysis in Maintenance
Management
• Data analysis plays a crucial role in
maintenance management by transforming
raw data into actionable insights that enhance
decision-making processes.
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Importance of Data Analysis in
Maintenance Management
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Components of Data Analysis in
Maintenance Management
1. Data Collection
• Sources of Data: Data can be collected from
various sources, including maintenance
management systems, equipment sensors,
work order records, and operator logs.
• Types of Data: Important data types include
maintenance history, equipment performance
metrics, failure rates, and operational
conditions.
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2. Key Performance Indicators (KPIs)
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3. Data Analysis Techniques
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Best Practices in Maintenance
Management
• Implementing best practices in maintenance
management is essential for optimizing
operations, enhancing equipment reliability,
and reducing costs.
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1. Developing a Maintenance Culture
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Benefits Maintenance Culture
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2. Training and Development of
Maintenance Staff
• Definition: Ongoing training and development of
maintenance personnel are crucial for equipping them with
the skills and knowledge needed to perform effectively.
Strategies:
• Skills Assessment: Regularly assess the skills and
competencies of maintenance staff to identify training
needs.
• Training Programs: Implement training programs that
cover technical skills, safety protocols, and new
technologies relevant to maintenance.
• Training: Encourage training among staff to promote
versatility and ensure that multiple team members can
handle various tasks.
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Benefits Training and Development
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3. Regular Audits and Reviews
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4. Leveraging Technology for Efficiency
• Definition: Utilizing technology and tools can significantly
enhance the efficiency and effectiveness of maintenance
management.
Key Technologies:
• Computerized Maintenance Management Systems
(CMMS): Implement CMMS to streamline maintenance
scheduling, work order management, and data analysis.
• Predictive Analytics: Use predictive analytics tools to
anticipate equipment failures and optimize maintenance
schedules based on data-driven insights.
• IoT and Sensors: Deploy Internet of Things (IoT) devices
and sensors to monitor equipment conditions in real-time,
enabling proactive maintenance interventions.
Benefits:
<> Increased accuracy and efficiency in maintenance planning and execution.
<> Enhanced ability to predict and prevent equipment failures.
<> Improved data collection and analysis capabilities, leading to better decision- 33
making.
Production Scheduling in Production
Planning and Control (PPC)
• Production scheduling is a critical component of
Production Planning and Control (PPC), ensuring that
manufacturing processes run smoothly and
efficiently.
• It involves the allocation of resources, timing of
operations, and coordination of activities to meet
production targets while minimizing costs.
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Production Scheduling
• It is the process of planning and coordinating the timing of
production activities, including the allocation of resources such as
labor, machinery, and materials, to meet demand.
Objectives
• Maximize Resource Utilization: Ensure that all resources—
machines, labor, and materials—are used effectively.
• Meet Customer Demand: Align production schedules with
customer orders and demand forecasts to ensure timely delivery.
• Minimize Production Costs: Optimize scheduling to reduce waste,
minimize downtime, and lower operational costs.
• Enhance Flexibility: Allow for adjustments in production schedules
to accommodate unforeseen changes in demand or supply.
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Components of Production Scheduling
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Components of Production Scheduling
3. Job Sequencing
• Definition: The order in which jobs or tasks are scheduled for
production.
• Techniques: Common sequencing methods include First Come First
Served (FCFS), Shortest Processing Time (SPT), and Critical Ratio
(CR). Each method has its advantages based on production goals.
4. Gantt Charts and Scheduling Software
• Gantt Charts: Visual tools that display the production schedule over
time, helping managers track progress and identify potential
bottlenecks.
• Scheduling Software: Advanced tools and software applications
automate scheduling processes, allowing for real-time adjustments
and enhanced visibility into production activities
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Best Practices in Production
Scheduling
• Data-Driven Decision Making: Utilize historical data and analytics to
inform production scheduling, ensuring accuracy in forecasts and resource
allocation.
• Regular Updates and Reviews: Continuously monitor production
schedules and make adjustments as needed based on changes in demand,
resource availability, or production efficiency.
• Collaboration Across Departments: Foster communication and
collaboration between production, sales, and supply chain teams to align
schedules with overall business objectives.
• Flexibility and Adaptability: Build flexibility into production schedules to
accommodate unexpected changes, such as equipment breakdowns or
shifts in customer demand.
• Continuous Improvement: Regularly evaluate scheduling processes and
outcomes to identify opportunities for improvement and implement best
practices.
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Scheduling Methods in Production
Management
• Effective scheduling is essential for efficient production management, and
various methods are used to plan and coordinate tasks. Below are some of
the most commonly used scheduling methods, including Gantt Charts and
the Critical Path Method (CPM).
1. Gantt Charts
Definition: Gantt charts are visual tools that represent a project schedule,
displaying tasks along a timeline. Each task is represented by a horizontal bar,
with the length of the bar indicating the duration of the task.
Key Features of Gantt Charts
• Task Duration: Clearly shows when each task begins and ends, making it
easy to understand the timeline.
• Task Overlap: Allows for visualization of overlapping tasks and
dependencies.
• Progress Tracking: Can indicate the progress of each task, helping to
identify delays or issues.
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Critical Path Method (CPM)
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3. Other Scheduling Methods
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5.4 Job shop scheduling vs. flow shop
scheduling
• Job shop scheduling refers to a production environment where small batches of a
variety of products are manufactured. Each job may require different processing
steps, machines, and sequences, leading to a high degree of variability.
Characteristics
• Variety of Products: Job shops typically produce a wide range of products, often
customized to specific customer requirements.
• Flexible Layout: Equipment and workstations are organized in a way that allows
for flexibility in processing different jobs.
• Unpredictable Workflows: The flow of work is less predictable, with jobs moving
through the production process in various sequences.
• Scheduling Techniques
• Priority Rules: Jobs are scheduled based on priority rules such as Earliest Due
Date (EDD), Shortest Processing Time (SPT), or First Come, First Served (FCFS).
• Finite Capacity Scheduling: Takes into account the capacity of resources to avoid
overloading any particular machine or workstation
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CHAPTER 6. Engineering economics and Cost
analysis for manufacturing
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Cost Estimation
• Direct Costs: Costs directly attributable to a product (e.g., materials,
labor).
• Indirect Costs: Costs not directly linked to a specific product (e.g., utilities,
administrative expenses).
• Methods:
• Analogous Estimating: Using historical data from similar projects.
• Parametric Estimating: Using statistical relationships between
historical data and other variables.
• Break-Even Analysis
• A method to determine the production level at which total revenues equal
total costs, resulting in neither profit nor loss.
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Example on the BEP
.
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Time Value of Money
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Return on Investment (ROI)
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The ROI for the new machine investment is 150%. This means that over its useful life, the
investment will generate a return that is 1.5 times the initial cost of the machine.
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6.1 Financial management
• Financial management refers to the strategic planning, organizing, directing,
and controlling of financial activities within an organization. Its primary goal is
to ensure the organization's financial resources are effectively and efficiently
utilized to achieve its objectives. Here are the key components:
1. Financial Planning
• Budgeting: Creating financial plans that outline expected revenues and
expenses.
• Forecasting: Predicting future financial outcomes based on historical data
and market trends.
• 2. Investment Decisions
• Capital Budgeting: Evaluating potential investments or projects to
determine their viability and profitability.
• Asset Management: Managing the organization's assets to maximize
returns.
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Financial management
3. Financing Decisions
• Capital Structure: Determining the optimal mix of debt and equity
financing.
• Funding Sources: Identifying and securing funds from various sources, such
as loans, investments, or grants.
• 4. Risk Management
• Identifying Risks: Recognizing financial risks that could impact the
organization.
• Mitigation Strategies: Developing strategies to minimize or manage those
risks.
• 5. Financial Reporting
• Accounting Practices: Maintaining accurate financial records and preparing
financial statements (balance sheet, income statement, cash flow statement).
• Compliance: Ensuring adherence to financial regulations and standards.
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Financial management
• 6. Performance Measurement
• Financial Ratios: Using ratios (like ROI, ROE, and profitability margins) to
assess financial health.
• Benchmarking: Comparing financial performance against industry
standards or competitors.
• 7. Cash Flow Management
• Monitoring Cash Flow: Keeping track of cash inflows and outflows to
ensure liquidity.
• Working Capital Management: Managing short-term assets and
liabilities to maintain operational efficiency.
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Importance of Financial Management
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6.2 Personal management and Marketing
management
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Personal management
3. Data Analysis
• Track Key Metrics: Monitor CTR, conversion rates, and CPA to gauge
campaign success.
• Regular Reporting: Create weekly or monthly reports to analyze trends
and make informed decisions.
4. Skill Development
• Stay Updated: Follow industry news, attend webinars, and read PPC
blogs to keep up with trends.
• Certifications: Consider obtaining certifications (e.g., Google Ads, Bing
Ads) to enhance credibility and skills.
• Networking: Join PPC groups or forums to exchange knowledge and
strategies.
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Personal management
5. Stress Management
• Set Realistic Goals: Avoid overwhelming yourself with unattainable targets.
• Take Breaks: Schedule regular breaks to avoid burnout, especially during
high-pressure campaigns.
• Mindfulness Techniques: Practice stress-relief techniques such as meditation
or exercise.
6. Goal Setting
• SMART Goals: Ensure your objectives are Specific, Measurable, Achievable,
Relevant, and Time-bound.
• Review and Adjust: Regularly review goals and adjust strategies based on
performance data.
7. Communication Skills
• Collaborate with Teams: Work closely with creative, analytical, and sales
teams for cohesive strategies.
• Client Communication: Maintain clear communication with clients
regarding campaign progress and adjustments.
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Marketing management
Marketing Management Notes
1. Definition and Importance
• Definition: Marketing management involves planning, organizing, directing, and
controlling the marketing activities of an organization.
• Importance: It helps in understanding customer needs, creating value, and achieving
organizational goals.
2. Key Components
• Market Research: Gathering data to understand customer preferences, market
trends, and competitors.
• Marketing Strategy: Developing a comprehensive plan to reach target markets and
achieve business objectives.
• Marketing Mix (4 Ps):
• Product: Designing products that meet customer needs.
• Price: Setting competitive pricing strategies.
• Place: Determining distribution channels to reach consumers.
• Promotion: Crafting communication strategies to inform and persuade customers.
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Marketing management
• 3. Strategic Planning
• SWOT Analysis: Assessing Strengths, Weaknesses, Opportunities, and
Threats.
• Segmentation, Targeting, and Positioning (STP):
• Segmentation: Dividing the market into distinct groups.
• Targeting: Selecting which segments to focus on.
• Positioning: Creating a unique image for the product in the minds of
consumers.
• 4. Implementation
• Action Plans: Developing detailed plans for executing marketing strategies.
• Resource Allocation: Distributing resources effectively across various
marketing activities.
• Monitoring and Control: Establishing metrics to evaluate performance and
make necessary adjustments.
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Marketing management
• 5. Digital Marketing
• Online Presence: Importance of maintaining a strong online
presence through websites and social media.
• Content Marketing: Creating valuable content to attract and
engage target audiences.
• 6. Customer Relationship Management (CRM)
• Building Relationships: Fostering long-term relationships
with customers for loyalty and repeat business.
• Feedback Mechanisms: Implementing systems to gather
customer feedback for continuous improvement.
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Marketing management
7. Emerging Trends
• Sustainability: Incorporating eco-friendly practices into
marketing strategies.
• Personalization: Tailoring marketing messages and offers to
individual customer preferences.
• Data Analytics: Leveraging data analytics to inform
decision-making and optimize strategies.
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