10th International Conference on Through-life Engineering Service

16-17 November 2021, University of Twente, The Netherlands

Reducing the cost of tea production through employing usage

based preventive maintenance (Case study in Kenya tea
development agency factory KTDA Chebut)
Kiprotich Evans*, Benard Kipsang
410082, Changsha city, P.R.China
486-30300, Kapsabet, Kenya
*Corresponding author: Tel.: +254715970745; E-mail address: kiprotichevan@gmail.com

Abstract

In a continuous production line, most of the machinery requires maintenance to ensure that they are working properly since
the breakdown in one machine stops the whole production line. Therefore, preventive maintenance is always scheduled to
ensure that machine parts are replaced and maintained. During replacement, production is at halt and thus the production output
is decreased. An effective scheduling of maintenance can help to reduce downtime and reduce the number of schedule
maintenance. This case study investigated how the use of usage-based preventive maintenance in place of periodic preventive
maintenance can help to optimize maintenance further by; reducing maintenance cost, extending lifetime of an equipment and
reducing the overall production cost. To perform the optimization, the t-test hypothesis was formulated upon the reception of
the actual production data. The hypothesis was used to investigate if the actual production is same or different from the design
potential production capacity. The results and findings showed that the actual production was different from the expected
design potential thus the alternative hypothesis is not rejected. The efficiency test was found to be 79% showing that the
maintenance set for the system is under-utilized which caused over-maintenance of equipment. Under-utilization attributed
majorly to the periodic maintenance applied even at low input of tea leaves to the factory. The results showed that optimized
usage-based preventive maintenance can be used to save up to 10 scheduled maintenance per year. Reduction in numbers of
maintenance directly reduce maintenance cost, hence, minimization in overall production cost. From the results, this study
lays a basis to optimize production in any organization by optimization through minimization of input resources and
maximization of outputs. The optimization strategy of maintenance applies to both product and service organizations.

Keywords: CTC black tea processing; Preventive maintenance; Usage-based preventive maintenance; Optimization;
Efficiency; saved maintenances

1. Introduction Optimization of the maintenance process through

Preventive maintenance is the work carried out on
equipment in order to avoid its breakdown or
malfunction. It is a regular routine action done on an
equipment in order to prevent its breakdown [1].
Product and service production organization have
since improved their maintenance and repair skills
and pay more attention on maintenance. Previously
maintenance was never of much concern, however,
as technology improved, mechanization and
automation increased, therefore arose the need for
good maintenance services. As technology advances,
maintenance has also advanced in order to reduce
downtime and improve safety [2].
In the 21st century, many producing organizations
have embraced new technology and adopted
preventive maintenance for monitoring their
production line state. The situation is same for Kenya
Tea Development Agency (KTDA) Chebut tea
processing factory. The challenge, however, of using
Preventive maintenance is over or under
maintenance if not optimized.
usage preventive maintenance can further improve
the production system and impact positively on
economic value of the company.
The present study aimed at determining whether
or not the cost of tea production is reduced
significantly by usage based preventive maintenance
system. Hence, it demonstrated how usage-based
maintenance can be of value if implemented in the
factory.
The outstanding contributions of this study
includes; increasing tea produced through reduced
equipment downtime, reducing repair and
maintenance cost, increasing profit margins of the
company through less downtime of equipment, and
extending useful lifetime of the CTC (cut, tear, curl)
rollers.
The company works on three shift system per day
and on a weekly basis, the company does a routine
periodic maintenance normally schedule on
Mondays. During this maintenance period the
company process has to stop for at least two shifts.
This paper quantitatively analyzed the production

Peer-review under responsibility of the Programme Chair of the 10th International Conference on
Through-life Engineering Services.

Electronic copy available at: https://ssrn.com/abstract=3949300

 Evans et al. SSRN-TESConf (2021) 016
and maintenance data of KTDA Chebut factory and
showed clearly how optimization on existing
preventive maintenance can be of significance on the
economy of the tea factory. The study is focused at
optimization of maintenance cost using usage-based
preventive maintenance in place of periodic
maintenance being practice in the company.
2. Literature Review
Maintenance, repair and overhaul or operations
(MRO) are normally referred to as the functions of
maintenance [3], are what makes up maintenance the
very important component of any production.
Historically, maintenance was not a great operation
with great importance in the past when production
was done in small scale. According to Ben Niebel,
author of Engineering Maintenance Management
(Industrial Engineering), stated that in 1969
maintenance was 1-17% of total workforce [4].
However, as advances occurs in technology more
types of machinery were made available, and the
need for maintenance personnel increased.
Though maintenance departments are not directly
related to production, they can still have a profound
effect on the quality and cost of production [5].
Maintenance is really developing and using it to
reduce downtime, breakages and risk will not be
enough in the currently competitive economy where
cost effective organization is highly demanded. The
organization may be working smoothly because of
preventive maintenance but yet the cost of input on
maintenance can be very high. Optimization of
preventive maintenance of a system is necessary
now to an existing maintenance strategy in order to
realize more reduction in cost of maintenance and
repairs thus reducing total production cost.
2.1. Cost of maintenance
Economic aspect has not been of more concern in
technology growth in the past as it is in the current
market and economy.
Maintenance cost being a component of
production cost, thus, equals certain percentage of
the total cost and varies depending on level of
optimization and event technology applied. It is
known that maintenance costs of waste water
treatment plant can reach up to 25 % of total
operational costs. For example, in United States,
Biehl and Inman study shows that this percentage
could represent the 15 % of the total operation cost
[6]. In Turkey, waste water study of Turkmenler and
Aslan indicates that maintenance costs represent
approximately the 10 % of total operational costs
[7]. In some European countries similar values are
found, for instance, in Germany, these costs can
range between 15 % and 25 % [8]. Similarly, in
Electronic copy available at: https://ssrn.com/abstract=3949300
Spain, Hernandez-Chover et al found out that the
maintenance costs represent on average 11 % of the
total operational costs. In Greece, Tsagarakis et al
compared the maintenance costs of different
activated sludge wastewater treatment technologies
reporting mean values that range from 6 to 9% of the
overall annual Operation Management costs [9].
Preventive maintenance tasks usually come with
a cost and are very vital and necessary to ensure that
the equipment is operating properly and minimize
the risks inherent to possible breakages and
downtime [10]. The absence of optimal preventive
maintenance always tends to increase the costs set
aside for repairs and is evident as many
managements report from different kinds of
infrastructure such as bridges, roads, rail networks
or water facilities, as they encounter various
problems [11].
The rising costs allocated for repairs and
breakdowns [12], may decrease machine
productivity as well as entail environmental and
social risks. In this case, therefore, preventive
maintenance, activities planned to maintain the
equipment or machinery in optimal conditions, is
needed to reduce unexpected breakages and reduce
the cost of repairs and maintenance [13].
3. Methodology
In order to achieve the objective of this study, the
relevant data was collected from the case study
company. Data was obtained from daily records of
production in log books and company production
databases.
This study applied the statistical tools in Minitab
and excel to analyze and check if the machine usage
limit compared to actual production gave significant
difference which can be relevant to make adjustment
towards reduction of production cost. Analysis
involved the raw data from production line for daily
production on weekly time period before the routine
maintenance.
Some of the important equations used in the
analysis part of this research were; T-test formula
and efficiency formula.
3.1. T-test formula
The t-test is any statistical hypothesis test in
which the test statistic follows a Student's t-
distribution under the null hypothesis.
The t-test was used to determine if there is a
significant difference between the design
comfortable capability of production line and the
actual production in the line.
𝐱̄ – 𝛍
T value t= (1)
𝐬 / √𝐧
 Evans et al. SSRN-TESConf (2021) 016

Where, Histogram of GREEN TEA IN KG

x̄ = Observed Mean of the Sample 40
Normal
Mean 39651

μ = Theoretical Mean of the Population StDev 4878

N 301

s = Standard Deviation of the Sample 30

n = Sample Size.

Frequency
20
3.2. Efficiency formula
10
Efficiency is the ability to avoid wasting
materials, energy, efforts, money, and time in doing
0
something or in producing a desired result. In a more 28000 32000 36000 40000 44000 48000 52000
GREEN TEA IN KG
general sense, it is the ability to do things well,
successfully, and without waste [14]. Fig.1. Histogram of sample data and normal curve

𝑜𝑢𝑡𝑝𝑢𝑡 Normality test was done by considering the p-

Efficiency = ∗ 100% (2) value of the sample. The p-value of p>0.05 shows
𝑖𝑛𝑝𝑢𝑡
that the data is normal and p<0.05 shows that the
4. Results and Discussion data is not normal. The figure below shows the
results for p value of the green tea leaves data
This section deals with the comprehensive samples obtained from Minitab.
analysis, discussion of the calculated results and
interpretation.
The factory is potentially design to handle
approximately:
 15,000,000kg of green tea leaves annually.
 300,000kg before maintenance
 50,000kg green tea leaves daily.

4.1. summarized data

The table below shows summarized data for year
2020.
Table 1. Monthly green tea leaves data summary
Months Working days Daily average tea in kg
January 24 34833
February 25 31240
March 26 35000 Fig.2. Histogram of sample data and normal curve
April 24 40042
The P-value = 0.054 confirms the data is
May 26 44769
normally distributed.
June 24 43333
July 27 38741
4.3. T-test
August 26 40231
September 26 44654
From equation (1) that is:
October 25 47320
x̄ – μ
November 25 38480 t= (1)
s / √n
December 23 36739
average 39615 We can calculate the variables and substitute for
t from table 1.
4.2. Raw data normality test.
Sample mean = x̄ =39615 kg
Upon the reception of green tea daily processed Population mean= µ = 50000kg
data, normality test for the data was run to check if Deviation=s =4771kg
the data is normal. Sample size = n =12 months
The histogram data points and a normal curve Formulation of the T-test problem
drawn and compared. Null hypothesis H₀: x̄=μ = 50000kg.
Alternative hypothesis H₁: x̄≠ μ ≠ 50000kg.
The,

Electronic copy available at: https://ssrn.com/abstract=3949300

 Evans et al. SSRN-TESConf (2021) 016

11935000𝑘𝑔
Null hypothesis represented the assumption that Green tea daily average =
301𝑑𝑎𝑦𝑠
the actual production had no difference from the
potential of the production line. = 39651kg per day computed using the yearly
While, raw data
Alternative hypothesis represented the Also,
assumption that the actual production was different ∑𝑜𝑓 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑔𝑟𝑒𝑒𝑛 𝑡𝑒𝑎
from the potential of the production line. = 39615kg
12
Performing the test at 95% confidence limit =39615kg per day computed from monthly
Degree of freedom n-1 =12-1=11. grouped data.
Solution: Solution
39615
t=
x̄ – μ
=
39615−50000
= -7.54 Efficiency= ∗ 100%
50000
s / √n 4771 / √12
= 79.23% from monthly grouped data
t – Value = -7.54
The absolute t value = 7.54. 60000
Critical t value at 95% confidence interval =2.2. 50000
Therefore, 40000
Absolute t value > critical value 30000
= 7.54>2.2 thus, null hypothesis is rejected. 20000
The rejection of the null hypothesis, shows that 10000
the system of production, is not fully utilizing the 0
potential capability as design. daily potential daily actual
capacity production
4.4. Efficiency
Fig.4. Daily potential vs. actual production
From equation (2).
Generally efficiency can be calculated by: 20000000
𝑜𝑢𝑡𝑝𝑢𝑡
Efficiency= ∗ 100% (2)
𝑖𝑛𝑝𝑢𝑡
15000000
4.4.1. Economic Efficiency 10000000

Economic efficiency is when all goods and 5000000

factors of production in an economy are distributed 0
or allocated to their most valuable uses and waste is annually annually
eliminated or minimized. potential actual
Economic efficiency is basically just a measure capacity production
of how good things are economically, compared to
how good they could potentially be. Fig.5. Daily potential vs. actual production
The formula for determining economic efficiency
is as follows: 11935000
Economic Efficiency= Efficiency= ∗ 100%
15000000
𝑎𝑐𝑡𝑢𝑎𝑙 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
(3) =79.57% from yearly raw data
𝑝𝑜𝑡𝑒𝑛𝑡𝑖𝑎𝑙 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒

The low efficiency in this case was majorly

Potential economic value design for the line, is
the total value of input resources and services into
the production line. This economic input represent
the economic value of; labor, materials, power,
maintenance, material handling, storage and other
production factors
The potential economic input was capable and
responsible of handling approximately 50000kg and
15000000kg of green tea leaves each day and year
respectively according to the design specification of
the production line.
From table 1
attributed to the natural cause of less tea available
during low production seasons, a factor that the
company could not control. . As shown, the
maintenance period was likely to be reached always
when the system has not exhausted its design
potential and thus, it resulted into low production
efficiency. Approximately 79% production potential
ability was utilized while 21% was waste.
The production line according to the design
specification was designed to handle 50,000kg of
green tea, daily without exhaustion of the line
machinery and the resources required for the
production.

Electronic copy available at: https://ssrn.com/abstract=3949300

 Evans et al. SSRN-TESConf (2021) 016
The design potential capacity was supposed to
operate reliably with the help of 52 weekly routine
preventive maintenances while system operated at
100% efficiency. However, since the actual
operation was at 79% efficiency, then maintenances
can be diligently optimized.100% utilization of the
design production system would require 52
maintenances. Meaning 79% utilization of the
production system would require: 79%*52 = 42
maintenances.
Therefore,
42 maintenances is the optimal number of
maintenances which was required to keep the
production system reliable. Some maintenances
thus, could be saved yearly from the actual design
number
Extra maintenances = 52-42 =10
= 10 maintenances (maintenances that can be
saved).
4.5. Saved Maintenance
A usage-based maintenance is therefore, suitable
to optimize further the existing periodic
maintenance when necessary. The actual utilization
of production line should be monitored by keeping
records of the tea handled daily and as the usage
approach to the 50000*6kg (300000kg) weight limit
before maintenance, then maintenance should be
scheduled. This scheduling should be based on the
usage and not based on period interval only.
By having a good planned usage-based
preventive maintenance scheduling of maintenance
can be at the right time and thus, cost, time, labor
and purchases related to maintenance are minimized
to an optimal level.
4.6. Results of saving 10 maintenance
Usage based preventive maintenance, therefore,
can help to:
 Save up to 20% number of maintenances that is
10 maintenances. When planned well usage
based maintenance can avail cumulative time of
up to ten maintenance which is a profit to the
company in aspects of money, time avail and
reduction of waste resources.
 Generally, avail time for production. 10
maintenances saved is equivalent to 60 days of
work avail at a long-term period of one year if
there were enough tea production in the farm
during all seasons.
 Reduce cost of maintenance. The number of
maintenances cut from 52 to 42 automatically
reduces the cost which would have instead been
used for unnecessary maintaining activities.
 Reduce overall production cost. The input
resources which are utilized to 79% would be
reduced by cutting short the much higher cost of
maintaining.
Electronic copy available at: https://ssrn.com/abstract=3949300
𝑜𝑢𝑡𝑝𝑢𝑡
Efficiency= ∗ 100%
𝑖𝑛𝑝𝑢𝑡
Input ∝ maintenance cost.
Thus, when maintenance cost is reduced the
input cost will be reduced that is the overall
production cost reduced.
 Increase efficiency of production line.
1
Efficiency ∝ (4)
𝑖𝑛𝑝𝑢𝑡
10 saved maintenances time will reduce cost of
maintenance thus reducing production cost
(input) which in turn will increase the
efficiency.
 Shift the production capability towards
designing 100% efficiency. Though
maintenance alone however much it can be
optimized cannot by itself shift efficiency to
100% the shift would be towards that direction
resulting from an optimized maintenance
system.
 Extend useful lifespan for CTC rollers. Machine
parts which get worn out during operation and
needs to be changed during maintenance will be
saved from being changed unnecessarily before
fully utilised. CTC rollers are the main parts
which are changed during maintenance and
later re-sharpen for next use. So reduction of
maintenance time would reduce wear and tear
involved thus also less sharpening which in turn
result in their lifespan being elongated before
being fully changed.
 Optimized mentainance will reduce downtimes
hence it will improve the reliability of the
production line
 The reduction on breakdowns and general
improvements of the performance of the
machine will improve the safety of the factory
and reduce machine breakdown induced
accidents.
 Reduce unnecessary purchases.
During maintenance some small spare parts and
other resources needed are purchased for use
but when maintenances reduce automatically
this unnecessary purchases reduce too.
5. Conclusion
This research was focused on reducing the cost of
production by employing usage based preventive
maintenance. The quantitative analysis confirmed
that preventive maintenance can help optimized
production further compared to periodic
maintenance. The results and finding showed that
the 39615kg actual daily average tea process is
different from the 50000kg design capacity which
was supposed to work with help of 52 maintenances
a year. In order to improve this low efficiency to a
better level, the results shows that economic input
can be optimized through minimization, since much
is invested to a potential of 50000kg while actual
 Evans et al. SSRN-TESConf (2021) 016
output is 39615kg. Based on the focus of the study,
the data analysis confirms that if the usage-based
preventive maintenance is used in place of periodic
preventive maintenance we can realize a save of up
to 10 maintenances. The results also shows that
since maintenance cost is an element of total
production cost, thus, a reduction in it would result
in a direct reduction in overall production cost.
Generally, from the finding and strategy of
performing the analysis in this study, it gives a basis
to analyze other existing organization for
optimization through minimization of resources and
maximization of outputs. The strategy can be used
to optimize both product and service output profit
making organization. Also, from the results of this
study we can conclude that though the strategy to the
findings is very good and the results being good for
making informed decision, still there is some
limitation. One of the limitation of the results is that
the findings is a direct representation of the Chebut
tea factory and the solution will directly apply to this
factory meaning you cannot generalize the results.
The other limitation is that since the element of
production is occurring in natural setup it’s difficult
to replicate the data even for next season.
6. Recommendations
In general from the results and findings of this
study it shows that existing production lines and
systems can be operating normally without failure
and major complication, however, they can be
operating differently from expectation and can go
unnoticed for long. Therefore I recommend
generally that every product or service organization
including my case study should occasionally
perform an analysis test of their company in their
previous operation period so as to make wise
decisions and adjustment in the following period of
operation.
To every profit and non-profit making
organizations, I recommend them to put their focus
on the maintenance activities and strategies for
further optimization of production cost.
I strongly recommend also that, a further research
to be done on labor, storage and handling cost in line
with, further optimization of production.
Electronic copy available at: https://ssrn.com/abstract=3949300
Acknowledgements
The authors acknowledged the financial support
from the People’s Republic of China, ministry of
Commerce, Hunan University
References
[1] O. A. Bamiro; D. Nzediegwu; K. A. Oladejo; A. Rahaman;
A. Adebayo (2011). Mastery of Technology for Junior School
Certificate Examination. Ibadan: Evans Brothers (Nigeria
Publishers) Limited.
[2] Marlow, D.R., 2010. Sustainability-based asset management
in the water sector. In: Definitions, Concepts and Scope of
Engineering Asset Management. Springer, London, pp. 261–
275
[3] Uhlmann E et al. Maintenance, Repair and Overhaul in
Through-Life Engineering Services. In: Redding L, Roy R,
editors. Through-life Engineering Services. Cham: Springer;
[4] Niebel, B. (1994). Engineering maintenance management
(industrial engineering) (2nd Ed.). CRC Press.
[5] Wilson, A. (2002). Asset maintenance management: A guide
to developing strategy and improving performance. Industrial
Press, Inc.2015. p. 129-156.
[6] Biehl, W.H., Inman, J.A., 2010. Energy optimization for water
systems. J. Am. Water Works Assoc. 102 (6), 50–55
[7] Turkmenler, H., Aslan, M., 2017. An evaluation of operation
and maintenance costs of wastewater treatment plants: gaze
wastewater treatment plant sample. Desalin. Water Treat. 76,
382–388.
[8] Wendland, A., Ozoguz, Y., 2005. Operation costs of
wastewater treatment plants. In: EMWATER E-Learning
Course. European Union, Germany.
[9] Tsagarakis, K.P., Mara, D.D., Angelakis, A.N., 2003.
Application of cost criteria for selection of municipal
wastewater treatment systems. Water Air Soil Pollution. 142
(1–4), 187–210
[10] Verbert, K., De Schutter, B., Babuska, ˇ R., 2017. Timely
condition-based maintenance planning for multi-component
systems. Reliable. Eng. Syst. Saf. 159, 310–321,
[11] Hukka, J.J., Katko, T.S., 2015. Resilient asset management
and governance for deteriorating water services
infrastructure. Procedia Econ. Finance. 21, 112–119,
[12] Alegre, H., do Ceu Almeida, M., Retrieved from 2009.
Strategic Asset Management of Water Supply and
Wastewater Infrastructures.
[13] Van der Lei, T., Herder, P., Wijnia, Y., 2014. Asset
Management: The State of the Art in Europe from a Life
Cycle. Springer.
[14] Merriam-Webster. Archived from the original on 9 March
2018. Retrieved 9 May 2018.