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Mälardalen University Press Dissertations

Mälardalen University
No. 99Press Dissertations
No. 99

STRATEGIC MAINTENANCE DEVELOPMENT


STRATEGIC MAINTENANCEINDUSTRY
IN MANUFACTURING DEVELOPMENT
IN MANUFACTURING INDUSTRY

Antti Salonen
Antti Salonen
2011
2011

School of Innovation, Design and Engineering


School of Innovation, Design and Engineering
Copyright © Antti Salonen, 2011
ISBN 978-91-7485-010-9
ISSN 1651-4238
Printed by Mälardalen University, Västerås, Sweden
Mälardalen University Press Dissertations
No. 99

Mälardalen University Press Dissertations


No. 99
STRATEGIC MAINTENANCE DEVELOPMENT IN MANUFACTURING INDUSTRY

Antti Salonen

STRATEGIC MAINTENANCE DEVELOPMENT IN MANUFACTURING INDUSTRY

Antti Salonen
Akademisk avhandling

som för avläggande av teknologie doktorsexamen i innovation och design


vid Akademin för innovation, design och teknik kommer att offentligen
försvaras onsdagen den 1 juni 2011, 10.00 i Filen, Smedjegatan 37, Eskilstuna.
Akademisk avhandling
Fakultetsopponent: Professor Pra Murthy, The University of
som förQueensland, School
avläggande av of mechanical
teknologie and mining
doktorsexamen engineering
i innovation och design
vid Akademin för innovation, design och teknik kommer att offentligen
försvaras onsdagen den 1 juni 2011, 10.00 i Filen, Smedjegatan 37, Eskilstuna.

Fakultetsopponent: Professor Pra Murthy, The University of


Queensland, School of mechanical and mining engineering

Akademin för innovation, design och teknik

Akademin för innovation, design och teknik


Abstract
Industrial maintenance is a substantial financial post. The total value of maintenance budgets in Europe
has been estimated to be approximately 1500 billion € per year. At the same time, there are indications
that about a third of these costs are wasted due to poor planning, overtime costs, inferior use of
preventive maintenance and so forth. However, the diversity between different types of industry is
substantial.
While the process industry, which is rather vulnerable to disturbances, has a tradition of viewing
its maintenance as a strategic resource, the picture is quite different in discrete item manufacturing
industry. Historically, manufacturing industry has had a surplus of finished goods and Work-In-
Progress buffers between machinery. Therefore, the manufacturing industry has been able to fulfil
its production demand despite unreliable production equipment. In the last few decades, the concept
of lean production has started to spread within the manufacturing industry as a means to improve
competitiveness. Manufacturing companies apply lean tools such as flow oriented production layout,
Just-In-Time production and Demand-Flow-Technology. As a consequence, the vulnerability to system
disturbances increases and hence, the demand for dependable production equipment increases. Despite
this increasing demand on reliable production equipment, few manufacturing companies work with
strategic maintenance development. One reason for this may be that the existing methods and concepts
for maintenance development are quite resource demanding.
The main objective with this research is to develop a simple and cost effective approach aimed to
formulate, implement, and evaluate maintenance strategies for the manufacturing industry. In five case
studies the following has been studied: (1) The industry’s view on strategic maintenance development,
(2) Formulation of maintenance strategies, (3) Implementation of maintenance strategies, (4) Cost of Poor
Maintenance, and (5) Results from strategic maintenance development.
As a result from this research, a process for the formulation of maintenance strategies has been
developed. Further, a number of driving forces and obstacles, that influence the implementation of
maintenance strategies, have been identified. The concept of Cost of Poor Maintenance has been
introduced as a means for evaluating the financial contribution of maintenance. Finally, three years of
studies in three companies has shown substantial benefits from strategic maintenance development.

ISBN 978-91-7485-010-9
ISSN 1651-4238




               



             

          
        
           
              
          
          
         
         
         
         



              
         
              
        
           


 
            
           

            


I

II




             
          


           
          
       
         
         
       
      


         
           


           


        


          
          


             




III

IV


              






         
            





             
            

  







             
            
              


V

            











VI



          

       


 
           


         
         


            



          
         


VII

           


           




       




             
        
        


 

VIII
 

 
 

 

 

 

 

 
 

 

 
 

 

 

 

 

 
 

 

 
 

 

 

 

IX
 
 

 

X
 

  
  
  
  
  

  
  
  
  
  

  
  
  
  
  
  

  
  
 
 
  
  
  
  

  
  

XI
  
  
  
  

 

XII


 

              




1.1 


              
             


               




        


           
         
           

         



             
          
         




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
           
            



               



            
           
         


              

           

            

           

          



           
           

             





              

             


2
1.1.1 
           
             

             


              
         
             
             
            

         

            


          



1.2 



1.2.1 
            

         


           
             
          
          

3



         


          

           
           


         



             



1.2.2 
           

         
         


1.3   


             

         
             
         
           
           


4
           

             
             


              

             
             

          


          



            
          
            




            
             



 



1.4       



           
              
          
           
 

5
6


 


             

            


          

          


            




2.1   


           
            
            




             



7
(1) The analytical approach

(2) The systems approach

(3) The actors’ approach

Explanatory Knowledge Understanding Knowledge


(Explanatics) (Hermeneutics)

The approach of the researcher

Figure 1: The researcher's approach, compared with the approaches presented by Arbnor and
Bjerke (1994). The figure shows how the different approaches relate to the scientific views of
knowledge as being either explanatory- or understanding- focused.







          
             
          
            


          

             
             







8
2.2   
              
            

           
            

             

             
            

           

•           

• 

• 

• 
• 


            

             
              


9
2.3    
           




Basic means Stages Main outcomes


Literature The need for strategic
analysis
Research clarification
maintenance development

Empirical data
analysis
Descriptive study I The industry’s view on strategic
maintenance development

Assumption Formulation of
Experience
Prescriptive study I maintenance strategies
Synthesis

Empirical data Implementation of


analysis
Descriptive study II maintenance strategies

Assumption The Cost of Poor


Experience
Prescriptive study II Maintenance
Synthesis

Results from strategic


Empirical data Descriptive study III maintenance development
analysis

Figure 2: The performed research, structured in accordance with the Design Research
Methodology framework, adapted from Blessing and Chakrabarti (2009).


             

 

          

 

10
             


             



           
            

Research Descriptive Prescriptive Prescriptive Descriptive Prescriptive Descriptive
clarification study 1 study 1a study 1b study 2 study 2 study 3

RQ 1

RQ 2

RQ 3

Paper I Paper III Paper IV


Paper II

Paper V

Figure 3: Design research methodology in relation to research questions and included papers.



         




         


         



11
              
              
             


Table 1: Research structure

Stage Company Focus of the study Data sources RQ Paper

RC N/A The need for strategic Literature


maintenance development I
II
1, 2, 3 III
IV
V

DS 1 A View on strategic Interviews


B maintenance Direct observations
C Factors, strategically Documents
D important for maintenance 1 I
E The use of maintenance
F performance indicators
Sourcing of maintenance

PS 1a C Usability of consensus Interviews


method for the identification Participant observations 1 II
of maintenance performance
measures

PS 1b A Development and test of the Participant observations


B process for the formulation of Documents 1 II
C maintenance strategies Workshop

DS 2 A Driving forces for strategy Interviews


B implementation Survey 2 III
C Obstacles for strategy
implementation

PS 2 A Usability of the concept Cost Participant observations


B of Poor Maintenance Workshop 3 IV
C

DS 3 A Overall KPI-development Interviews


B during the project Documents
C Experiences from working 1,2,3 V
with structured maintenance
development

            
             


12
2.3.1 


           
            
            

            


  2          

             
           





2.3.2 


           

           








             
           
             





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
            
          






            
         
          

            
        
             

            






           

          
         





              




         



           


14
              


           
               
               
          
               






            

 

  

 
          



             

           
               






15
             


          
              
           




            

              

          
         


           



          





           





            


16
2.3.3 

             


              





             


            
           

              

           



2.3.4 

           

          
              
           

           


               



17
           


            


2.3.5 

           


            




2.3.6 

               
            

             
            



 

18
2.4         
             
            
          
           
              



              


2.4.1 






            




 


•          

•             

• 
• 
• 


19
•         



             





 
             


   
           



2.4.2 
   

              
            

           


20
2.4.3 
              
          

             
               




            


            

 


             
            
           


              

             
            
           
            




21
 

22


 

            
           
         


           
 
          




RQ 1
Formulation of Maintenance
maintenance strategies

Strategy
RQ 2
Implementation of 
maintenance strategies
Strategy implementation

RQ 3
Financial contribution of Performance measurement
maintenance strategies
Figure 4: The main areas of literature studies in relation to the research questions.

23
3.1  
           
         
            

 


3.1.1 



              



           

            


Primary
production Primary
input Production production
output

Potential Maintenance
production demand
capacity
Maintenance


Figure 5: The relationship between Production and Maintenance (Gits, 1994).

24
3.1.2 
         



Before a detected fault Maintenance After a detected fault

Preventive Corrective
Maintenance Maintenance

Condition based Predetermined


Maintenance Maintenance

Scheduled,
continuous, or Scheduled Deferred Immediate
on request

Figure 6: Overview of different maintenance approaches (SS-EN 13306, 2001).

             




       
   


             




                
              
           

25
   




•            

•        

•           

•         

•       

•         






3.1.3 


        







•             

• 
• 
• 

26
• 
• 
• 


             
            
      
             
       





         

           
            

 

 



           



            




            


4
The original reference (Japan Institute of Plant Maintenance, 1996) has not been available for review.

27
Establish
Design Procure Operate and
technical Install Commission Replace
equipment Equipment Maintain
specification

Feedback installation and commissioning experiences 

Feedback operating and maintenance experiences

Figure 7: Terotechnology model, from Coetzee (2004).




                 




              



3.1.4 
            

             
 


            

           



            




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            

           
           

           
          

 


Policy
Procedures
Objectives
Business plan

Management planning

Maintenance Maintenance
plan operations

Operational
Short term information
operational
Long term management
strategic
management Maintenance
history

Management Measurement

Maintenance audit
Performance measurement

Figure 8: The maintenance cycle (Coetzee, 1999).

             

        
  


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           

            

          


            

•         

• 

• 


             


3.1.5 
          

             


             5 
 
              
              
            


5
The original reference (Altmannshoffer, 2006) has not been available for review.

30
             

• 
o 
o 
o 
o 
• 
o 
o 
o 
o 
• 
• 





            




 

             

          
 

           
               


31
The economic significance of maintenance in Sweden

Influence on the
Cost Revenue losses
environment

Direct Indirect Direct Indirect Damage cost


Maintenance Running-in Production losses Quality drawback Unstable purifying filtering
Repair Reduced life cycle Sales losses Delivery delay devices, unreliable process
Service Reject due to poor Loss of market Loss of Good will control, automatic control and 
CBM maintenance share insufficient safety devices due
Break down Inferior capability to poor maintenance
Inspection etc.

Can be calculated Can be estimated to about Currently unknown but


to 114 billion 62 billion Swedish krona increasingly growing costs
Swedish krona estimated to 15-25 billion
Swedish krona

The current total economic significance of maintenance


in Sweden = 190 – 200 billion Swedish krona/year
Figure 9: The economic significance of maintenance in Sweden (Ahlmann, 2002).


           
            


           


           
           
             





•         

• 

• 

 


32

               
          
           
          


33
3.2 

            



       
             
                




•           
           

•            

• 
•           




          


             

•  

•            

• 

•           





34
3.2.1 


           
              






             


3.2.2 
  
          

          
         

               
           
         


            

•         

•           

• 
• 

35
            
         



          
          

        




•    

• 
•            

• 






           
             
           

                 

 



• 
o 
o 
o 
o 

36
• 
o 
o 
o 
o 
o 
o 




3.2.3 




          
          





Function
Business objective

Production objective
Correct as Maintenance
necessary objective
Failure characteristics

Safety requirements
Maintenance
control Longevity requirements
Life plans asset aquisition policy
The strategic
Personnel thought process
policy Administrative Plant structure
structure
Preventive
schedule
Stores Work Production
policy Planning system requirements

Workload
Resource
structure Budget forecast

Plant layout
Unions
Contract labor availability

Figure 10: A Business-centered maintenance methodology (Kelly, 2006).

37


• 
• 
•         

Corporate objective
Plant output factors
Desired plant-operating pattern
Desired output
(availability; tons of product per
period, etc.)
Desired product quality

Maintenance resources
(men, spares, tools,
inf ormation)

Maintenance
Plant safety factors
objective

Plant life factors


(longevity)

Other plant factors


Plant energy usage
Plant ‘shine’
(cleanliness and tidiness)

Figure 11: Factors influencing maintenance objective setting (Kelly, 2006).

           

           


            
            




             

            



           

38
           


            
   

Life-cycle Criticality
SYSTEMS Audits of Design out
ORGANIZATION
performance Activities
and strategy CBM
Roles
Life cycle
Team working Skills
Asset People
RCM
management documentation development
Flexibility
support
TPM

Change Asset strategy

Aims & Objectives Targets

Maintenance 
Policies
strategy
Benchmarking Practices

E-collaboration
Planning
Condition
based
Computer (expert) Provisioning
Planning
systems Shutdowns
Work Planning

Asset
Budgeting
maintenance
management
Condition Control Environment
Contracting Structure
monitoring
Spares Quality
Employment

Figure 12: The range of maintenance policy sectors and their practices (Wilson, 1999)

39
3.3      

       
         


3.3.1 
            


           
           






         
            

 

          
             





          


            


40
3.3.2 


             




 
 
 
 
 
 
 
 

             
             

 



3.3.3 


             
            
          



         

The original reference (Geraerds, 1990)has not been available for review
6

41



            



           








          


          





      
          
         


        





             


           
         



            

            

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
         

               


            

           

• 

•           

• 

•            

• 


           

• 
•            

• 
• 

43
3.4   
          
         


3.4.1 

              
            
            

              
          


           
   
           

 
           
           

 

 

3.4.2 
              
          

          
            





44
•             

             
         

• 
•           
       
          

• 
          



            
            



•          


•          
         

• 
• 
• 
• 

           


•           

• 
•         


45
•          
            



          


            
         
          



           
           

• 
• 
• 
• 
• 
• 
• 
•            

• 
• 
• 
• 
•           
 

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3.5       


            
           
           



            
            
          
            






47
48
CHAPTER 4

 



             
             


          
             


4.1          






4.1.1 
             
          

            


           




              
            

49



4.1.2 
             
            
 

           
           
            

            


4.1.3 






            

           
         
          



4.1.4 

            
            
           
           
                

50

            


4.2          


  
            
 

            


              

          
           


          
          
            


              
          

            
  


         
        
 
              
            



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4.3      

            
            
             
             
          


Strategic goals
of production

Company Strategic Strategic


Company’s
vision and goals of performance
strategic goals
mission maintenance indicators

Strategic
Overall Maintenance
S.W.O.T. development
Gap-analysis strategy
plan

Figure 13: A schematic view of the maintenance strategy formulation work-process,


Appended Paper II, Salonen (2010).


             
         
              
           
           
          
           


52
COMPANY
Mission
Vision
Goals

PRODUCTION MAINTENANCE
Goals that affect Goals, relating to Goals, relating to
maintenance production management
Reliability Ef f ectiveness Ef f iciency

Measures that affect Measures of Measures of


maintenance effectiveness efficiency

Figure 14: The relationship between goals and measures, used by the maintenance and
production departments, and the company’s overall goals, adapted from Salonen and
Bengtsson (2008).


           
          
           

          
           
           




          
           

              

                

 



7
The concept of MTO originates in the Swedish nuclear power industry and is the Swedish equivalent to the
English term “Human factors.” Its aim is to include human and organizational aspects within the technological
aspects of safety (Rollenhagen, 1997).

53
Man Technology Organization
Competence Information systems Sourcing

Specialists Maintenance technology Organization

Material resources Work force

Maintenance policies Work hours 


Maintenance concepts Culture

Spare parts handling

Financial considerations
Maintenance related measures
Communication

Figure 15: Factors identified as strategic for maintenance, mapped according to Man,
Technology, Organization, MTO, adapted from Paper II, Salonen (2010).



              



• 
o 
o 
o 
• 
o 
o 
o 
o 
• 

o 
o 
o 
              


54



4.4      



           



Table 2: Driving forces and obstacles, identified in Descriptive study 2. DF indicates a Driving
Force, while Ob indicates an Obstacle.

Factor Company A Company B Company C


1. Vision and goal setting DF DF DF
2. Leadership Ob/DF DF DF
3. Planning the implementation Ob Ob Ob
4. Resource assignment Ob Ob Ob
5. Training and Education Ob DF Ob/DF
6. Communication Ob/DF DF Ob/DF
7. Culture Ob Ob Ob
8. Outsourced maintenance*
DF N/A N/A
(Business relationship)
9. New business strategy* N/A DF N/A
10. New production concept* N/A N/A DF
11. Lack of stakeholder awareness* Ob Ob Ob
* Factors not found in literature study.

             
         
             




              
           
             
             
             
              
            

55
                
              
              

         



             
            
            




            


            
             



4.5       


             
 

          

            
            
       


56
Corrective maintenance Preventive maintenance

Indispensable corrective Valid preventive maintenance:


maintenance:
Preventive Maintenance, necessary to
Corrective Maintenance due to: uphold necessary dependability.
Cost of -Failures with random distribution and no Improvements intended to increase the
Conformance measurable deterioration. reliability of equipment.
-Failures which are not financially justified to
prevent. 

Non-accepted corrective Poor preventive maintenance:


maintenance:
Unnecessary Preventive Maintenance
Corrective Maintenance due to: Poorly performed Preventive Maintenance
Cost of Non- -Lack of preventive maintenance
conformance -Poorly performed preventive maintenance
-Poor equipment reliability

Figure 16: The proposed Cost of Poor Maintenance model, in which corrective and preventive
maintenance are divided into cost of conformance and cost of non-conformance, from
Appended Paper IV, Salonen and Deleryd (2011).



            

           
        
            
       




           

              
          
           
          
         
             


57
              

Table 3: Categories of costs related to CoPM (Appended Paper IV, Salonen and Deleryd, 2011).

Cost of conformance Cost of non-conformance


Costs for Costs for valid Costs for non- Costs for poor
indispensable preventive accepted preventive
corrective maintenance corrective maintenance
maintenance maintenance

Man-hours for maintenance


(including administration) X X X X
Exchange parts X X X X
Lubricants X X X X
Other material for
maintenance, e.g., rags, X X X X
cleaning solvents, etc.
Lost production time X X X X
Logistics, e.g., for spare
parts or entrepreneurs X
Breakdown-related scrap
and/or re-work X X
Scrap and/or re-work due
to poor maintenance X
Breakdown-related over-
time for recovery X X
production
Speed losses due to poor
maintenance
X






58

              
          


Cost

Cost of non- Cost of non-


conformance conformance 

Cost of conformance
Cost of conformance
Time

Figure 17: The expected outcome of structured use of the concept of CoPM, from Appended
Paper IV, Salonen and Deleryd (2011).

4.6        


  

         


            




             
          
           



              



             


59
              



         


           
          


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CHAPTER 5

   







5.1   


        

             


5.1.1 
               
         
            
               



 


61
1: Evaluation 2: Strategy formulation
Overall •KPI •Aim
business •Benchmarking •Goal
strategy
•Audit •Components
Production •Etc. •Responsibilities
strategy •Etc.

4: Control 3: Implementation

•Aim •Tactical/Operational level


•Measures •Aim
•Knowledge feedback •Action plan
•Re-use of experiences •Organization - roles
•Etc. •Contracts
•Etc.

Figure 18: The strategic maintenance development loop, consisting of a main loop from Steps
1 to 4, and feedback loops from Steps 4 to 3, and from Steps 2 to 1, from Appended Paper II,
Salonen (2010)

             
        
            

             


            


           

          
         
          


62
5.1.2 
             


 


 




              


5.1.3 

             


         


            

          

           

            


             




       
             

63

           


             
           

           


5.1.4 

             


          
      


             


            



               
            

          

          


             
          



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5.2 
               


5.2.1 
           
            



         

           

               






         


         

             
              

           



65
5.2.2 
              
          
         
          
            
           




             
             




              
            


5.3         




          
            
            



             
             

           
             

              



66
           
           


             
               
             


5.4       



             
             
            
          

            
              

            
        
           


         
           
            
             

           




            



67
5.5  
          





5.5.1 

             
         


5.5.2 


              
            
              


5.5.3 
                
            


5.5.4 
          

            
             


68


         


          



           






 

          


         







          


          
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        




          

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

             

        
        
          


           
       
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           
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 

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
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
            








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



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            


          
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          







          
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




          


       


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           
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


         






           


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       




               



        

          


             



         


          




        




          


            

           





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            


          

             






       


          
         


          
       


           

             
        

          


          



        



           
            


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             


           

           
    



           

         
          

         
         


          




         


             



          








  

         


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





         


         
      

            





          
        


           



           



        



            

 

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




         
         



         
          



         
         



          


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










  






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





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












• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 























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



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

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           
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         
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              
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Check the best alternative in the following questions:

1. Which part of maintenance do you belong to? PM CM Team-tech.

2. Do you know the strategic goals of your maintenance? Yes No

3. One goal is to reach a distribution between PM/CM = 80/20.


Does it make sense (On a scale from 1 – 5).

No sense Much sense


1 2 3 4 5 Don’t know

4. The distribution 80/20 should be reached by the end of 2010.


Is this achievable?
Yes No Don’t know

5. One of your goals is to decrease the stop time for breakdowns (CM).
Does it make sense (On a scale from 1 – 5).

No sense Much sense


1 2 3 4 5 Don’t know

6. What is a reasonable goal for maximum stop time for CM?


(Please try to set a reasonable goal) h
7. One of your goals is to reach e level of maximum 15 stops per week.
Does it make sense (On a scale from 1 – 5).

No sense Much sense


1 2 3 4 5 Don’t know

8. The goal of 15 stops per week should be reached by the end of 2010.
Is this achievable?
Yes No Don’t know

9. Is it good to let the operators perform some of the routine PM?


(On a scale from 1 – 5).

Not good Very good


1 2 3 4 5 Don’t know

10. Operators can perform more PM than today?


Agree (on a scale from 1 – 5).

Don’t agree Fully agree


1 2 3 4 5 Don’t know

11. How well functioning is your operator maintenance today?


(on a scale from 1 – 5).

Not well Very well


1 2 3 4 5 Don’t know

12. What do you think about the concept of team-technicians?


(on a scale from 1 – 5).

Not good Very good


1 2 3 4 5 Don’t know
13How well functioning do you think the concept of team-technicians is today?
(on a scale from 1 – 5).

Not well Very well


1 2 3 4 5 Don’t know

14. What do you think of the idea of an order-desk?


(on a scale from 1 – 5).

Not good Very good


1 2 3 4 5 Don’t know

15. How well functioning is the order-desk today?


(on a scale from 1 – 5).

Not well Very well


1 2 3 4 5 Don’t know

16. How good is the cooperation with maintenance engineering today?


(on a scale from 1 – 5).

Not good Very good


1 2 3 4 5 Don’t know
17. Please rank the three areas that you consider most important for the maintenance
organization to focus on in order to achieve the goals (1= most important, 2 = second
most important, 3 = third most important). Leave the other areas blank.

Methods and tools for diagnostics


Extended PM-program
Extended or improved PM-instructions
Extended operator maintenance
Increased number of team-technicians
Extended spare parts storage
Root cause analysis
CBM
Training of maintenance personnel
Training of operators
Extended service agreements with experts
Guarantee handling
Continuous improvements
Internal knowledge distribution
Other (specify)

18. If you have any other remarks or notions on the subject of maintenance
improvements, please specify here.

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