INTRODUCTION

Industrial organisations exist to make a profit; they use equipment and labour to convert raw
material of relatively 'low value into a finished product of higher value. One way of looking at
the profitability of a plant is on a life-cycle basis. The object, however, of this paper is to
understand the importance of maintenance function in the life-cycle profitability of plant. The
dependence of life-cycle profitability on availability, and so on maintenance, has greatly
increased as plant has become larger and more sophisticated.
Emphasis is put on the increasing importance of maintenance costs and availability levels to the
profitability of an industrial organisation. Terotechnology was defined to describe the areas of
management and engineering concerned with these factors. During the last decade the concept of
terotechnology has drifted from a point of where main- tenance and unavailability costs are of
central importance to a general and less tangible subject area the relevance of which has not been
accepted by industry. This paper considers the aims of terotechnology to be concerned with 'the
optimisation of the total maintenance and ownership costs over the equipment life- cycle'. With
this in mind the principles of terotechnology are discussed and their applications described via an
industrial case studies
 LITERATURE
The definition of terotechnology is the maintenance of assets in optimal manner. It is the
combination of management, financial, engineering, and other practices applied to physical
assets such as plant, machinery, equipment, buildings and structures in pursuit of economic life
cycle costs.
It is concerned with the reliability and maintainability of physical assets and also takes into
account the processes of installation, commissioning, operation, maintenance, modification, and
replacement. Decisions are influenced by feedback on design, performance and cost information
throughout the life cycle of a project.
Part of terotechnology is called life-cycle costing. Life-cycle costing can include attention to
depreciation and other tax-related values. Generally, in life-cycle costing, one adds up all of the
positive and negative values associated with a physical asset during a certain period of time to
produce a net result. Companies use this net value to understand how ownership and use of a
piece of equipment or other physical asset during that period of time will affect their bottom line.
A big part of terotechnology is in understanding the role of maintenance and the value of a
warranty. Many larger pieces of equipment and other physical assets come with warranties
offered by the manufacturer or vendor. In terotechnology, the way in which these warranties
provide value relative to projected costs is examined.
Terotechnology represents a differentiation between all of the physical assets that a business
owns and other assets that are intangible and not associated with operating costs. Typically,
businesses hold certain physical assets for production and focus their additional capital on the
kinds of intangible assets that don’t generate more overhead costs. The science of evaluating
physical items is, for many companies, a way to manage the inevitable and necessary ownership
of physical equipment.
 METHODOLOGY
The primary aim of the paper was to use the case study method to understand Terotechnology
and its application . Secondary research was done to collect data through various research
articles. The Financial statements of the companies had been used to gain further insight about
result of application.
 DISCUSSION

TEROTECHNOLOGY: A MODERN APPROACH TO PLANT

ENGINEERING

The object, however, of this paper is to show that another factor which is becoming of increasing
importance in the life-cycle profitability of plant is the maintenance function. The dependence of
life-cycle profitability on availability, and so on maintenance, has greatly increased as plant has
become larger and more sophisticated.

The best way to illustrate the advantages of the terotechnological approach is through an
example of its successful application. Such an example is provided by the installation of a large
bar mill which was part of a major rationalisation programme. It involved an investment of £34
million in a 400000 ton/year plant occupying a 265 acre site.
When approval for the project was given, in 1972, a project management organisation was set
up.
To ensure adequate control, several committees were established. These included production
control systems, quality control, production and commissioning, engineering co-ordination, In
addition, joint consultative working groups were established, involving management and
operatives. These groups discussed plant designs, working procedures, safety and so on.
Other notable terotechnological design features were the quick stand-change facilities, the
standby lubrication system, the considerable rationalisation of pumps, drives and motors, the
rigorous application of modifications to standard equipment to improve reliability and
maintainability, the design for maximum accessibility for maintenance, the use of modular
construction concepts, the functional grouping of equipment in order to facilitate FSD,
plant-mounted sensors for vibration detection and fault location, the use of an 'alarms computer'
for detecting and reporting faults and process variations. In addition, scrap collection was
facilitated by a 'drive-in' arrangement for road vehicles.
l. A recruitment and training committee was established, consisting of the project manager,
production engineer, personnel officer, production manager, maintenance engineer and training
officer. Initial instruction and training was given in two to four weeks of formal lectures and
discussion groups. Multi-skill training was given where considered desirable. Simulated control
panels and layouts were built and used extensively. The personal dossier of each craftsman's
experience was matched against a skill and knowledge matrix based on a job description, and
this was then used to compile a training programme designed to suit the individual's needs
The application of the terotechnical approach that has been outlined involves a much higher
capital expenditure than the traditional lowest-bid lowest-cost shortest-time approach. The
difficulties of implementing such an approach are many, e.g. cash constraints, time constraints,
the uncertainty of forecasting demand and product life, and so in some situations it has to be
accepted that the additional effort and cost might not be worth the return. However, with the
present trend towards automated, large, expensive plant, the adoption of this approach can, in the
majority of cases, benefit a company to a considerable extent. It requires the commitment and
foresight of the most senior management. It is, therefore, no accident that the successful
industrial examples of the application of terotechnology appear to have at least one common
factor - an engineering director, who is convinced of the long-term advantages of keeping
maintenance firmly in mind when designing, installing and commissioning.
KEY SUCCESS FACTORS FOR THE APPAREL
MANUFACTURING INDUSTRY: A CASE STUDY AT
COMPANY X
Company X was part of an international group
founded in 1978, which has grown to become a
leading cotton shirt maker. The annual revenue
of the company averages US$1.2 billion and
produces 100 million shirts each year for
leading brands and
retailers across the globe. It has a workforce of
54,000. The primary aim of the paper was to
use the case study method to identify the key
factors leading to success of
Company X

The success of Company X is largely attributed

to a close monitoring of key indicators for each
functional area at different intervals in the short term to medium term.
An increasing use of technology for the delivery of innovative solutions has been observed at
Company X Internet, tactile tablets and software tools are for example are used by experts in
quality which enable them to transmit a live control report, with data and photos. Company X
further disposes a strong IT department to quickly address and resolve issues. Unlike other small
or medium firms, Company X has invested heavily in technology to automate its business
processes and to improve information gathering, access and quality.
Company X has moved from maintenance by default to maintenance by plan which indicates that
there has been forethought to what level of maintenance is targeted. The
good results obtained by the maintenance department for the years 2011 to 2013 can be
explained by the fact that Company X makes use of the Preventive Maintenance (PM)
programme. This has helped to extend the equipment life and ensure capacity, thus explaining
the high utilization (90-95%) of plant and equipment over
the past three years. With the implementation of the PM programme , Company X has been able
to reduce the cost of maintenance, increase on-line time of operations equipment and helped in
keeping the improvement in the line productivity over the years.
A REVIEW OF LIFE CYCLE COSTING IN THE
CONSTRUCTION INDUSTRY AS A BOTTOM LINE FOR LIFE
CYCLE SUSTAINABILITY ASSESSMENT
The Life Cycle Costing Methodology is consistent and reliable enough to fulfill the economic
assessment part of the three pillars of sustainability assessment; however the integration with the
Project Management Methodology, mainly in the Construction Industry would allow the
integration of Life Cycle Costing with the planning and control activities of the projects.
The study with different models discusses the LCC application
Despite the higher costs of the LCC designed building for Design & Specification and
Construction, there is a trade off because of lower Operational and Maintenance Costs.
MODELLING AND ANALYSIS OF RAIL MAINTENANCE COST
The paper discussed the background of railway track maintenance. While giving an overview of
rail lubrication. Modelling and analysis of rail track maintenance cost are developed.
Cost model developed in this paper presents an integrated approach for rail maintenance based
on rolling contact fatigue (RCF), traffic wear, rail grinding interval and lubrication. This
integrated system approach in analysing and solving real life complex problem is the original
contribution of this paper.
From the analysis it is found that rail players can save around 2.45% for 0–300 curves, 9.1% for
300–450 m curves and 15.5% for 450–600 m curves, respectively, by planning 12 MGT interval
for rail grinding compared to 23 MGT intervals. The annuity cost/MGT/meter can be used by rail
players for benchmarking asset utilisation. Total annuity cost/meter with lubrication can be
further analysed in terms of wayside, on-board lubrication methods for benchmarking applicators
and lubricants. The authors are currently working on this area and results will be published in the
future.

A SEWING LAYOUT WHICH IS ENLARGED WITH A PART OF

FINISHING CAN BE MORE EFFECTIVE TO COST
REDUCTION OF APPAREL INDUSTRY
A Sewing layout which is enlarged with a part of finishing can be more effective to cost
reduction of Apparel Industry
A readymade garments industry consists of three main sectors named Cutting, Sewing and
Finishing. A well balanced combination between those sectors can produce more effective
production system. In those points of view and as a part of continuous development a new plan is
introduced. Where sewing and finishing are focused for further improvement. a study was
carried out in the garments industry named Masco group located at Gazipura, Dhaka, Bangladesh
at sewing line enlargement to finishing section so as to eliminate them for reducing the amount
of defects, material handling, manpower saving time, improve productivity and cost reduction.

Few features of this new model were: • Adding iron with sewing line • Adding final quality
Responsiveness • Sound bridge of communication between finishing and sewing • Final quality
will be sewing line output.
Reduction of wastages were carried out wherein wastages were Defects, Overproduction,
Transportation, Waiting, Inventory, Motion, Processing
In proposed plan work in progress inventory will be reduced due to combining the sewing
section with finishing section. A clustered system can reduce waiting between processes that can
reduce inventory in process.
In proposed plan garments would not waiting a long to go for iron. • Waiting for servicing alters
garments will be reduced. Manpower and demand of few trolleys will be reduced to transport the
garments from line quality to iron section. Some material handling process like putting garments
in basket to go for finishing and receiving garments for iron will be reduced in new sewing
process plan.
With the implementation of new proposed production system. Calculation over time reduction: If
monthly shipped quantity 676642 pcs then it will be production completed in maximum (basic
time 8 + OT 2.33) =10.45 hours which is OT reduced to 3.19-2.45=0.73 (26.83%) of present
situation.
Decision delay is the common problem of RMG sector. As a result of decision delay, production
is hampered through creating section wise information gap. The new model system will provide
smooth production due to no information gap. As a result quick response between production &
quality will help to meet TOD.
With the implementation of a new proposed production system. We calculate and compare spot
removing cost Process evaluation gives concern to improve further. Process evaluation of the
present production system provides the thinking of the proposed production system. If facing
new challenges appears successful, hopefully the new system will provide greater efficiency,
better look and output. New production system may provoke a successful waste reduction
process implementation
 CONCLUSION

Terotechnology is a holistic approach on operational asset management with key emphasis on the
financial aspect of efficient maintenance. It is the bread-and-butter of cost optimization of
overhead expenses. Through the case studies we can see that with the application of
Terotechnology there has been a significant change in the LCC when focusing on the
Maintenance management.
We conclude that even a small change in the maintenance plan affects the profitability of the
firm. If Terotechnology is applied with a proper planning then we would be able to yield positive
results to increase the assets of a firm.
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