THE INDONESIAN JOURNAL OF

BUSINESS ADMINISTRATION
Vol. 2, No. 15, 2013:1864-1879
 
 
 
REVIEW OF MAINTENANCE STRATEGY TO REDUCE OIL CONSUMPTION COST  
IN HOT STRIP MILL PT KS 
 
Agus Suwarto and  Gatot Yudoko 
School of Business and Management 
Institut Teknologi Bandung, Indonesia 
agus.suwarto@krakatausteel.com 
 
Abstract—Currently,  every  company  should do  efficiency to  reduce the  production cost  in order to  increase it 
product  competitiveness  in  both  local  and  international  market.  Maintenance  activity  cost  is  the  one  of 
management concern to reduce without sacrificing the reliability of equipment and machine performance. The 
average  lubricant  usage  cost  in  Hot  Strip  Mill  PT.  KS  is  Rp  1.149.464.558,‐  per‐month  or  total  Rp 
13.793.574.699,‐ for year 2011, and this is a serious problem because it tends to increase every year. There are 
many  kinds  of  lubricants  (oil  and  grease)  which  are  used  in  Hot  Strip  Mill  PT.  Krakatau  Steel  as  bearing 
lubrication system, gear lubrication system and as fluid media in hydraulic system to move the equipment with 
heavy  load.  To  reduce  the  lubricant  cost  is  by  doing  identification  of  hydraulic  equipment  which  is  using  the 
biggest of oil consumption cost for Rp 3.287.476.000,‐ per‐year. Because there are some hydraulic system in Hot 
Strip  Mill,  therefore  the  research  is  focusing  on  hydraulic  system  in  Finishing  Mill  area  which  is  the  biggest 
contributor  on  oil  consumption  by  825.691.647,‐  per‐year.The  main  cause  of  high  oil  consumption  cost  is 
leakage  on  hydraulic  hose  and  hydraulic  cylinder  seal  because  there  is  no  periodically  replacement  schedule. 
Therefore,  it  is  suggested  to  implement  the  maintenance  strategy  both  for  preventive  and  predictive 
maintenance strategy based on equipment criticality factor or impact will occur when equipment failure such 
as:  workforce  safety,  production  downtime,  product  quality,  equipment  duty  of  operation  and  the  inspection 
possibilities  during  equipment  running.  By  implementing  an  appropriate  maintenance  strategy,  the  company 
will get cost saving Rp 87.838.138,‐ per‐year or 10,6 % from oil consumption cost. 
 
Keywords:  lubricant  usage  cost,  preventive  and  predictive  maintenance  strategy,  increase  company 
competitiveness. 
 
 
1.   Introduction 

Maintenance activities are an integral part of plant or company production process. These activities 
are conducted in order to keep the performance of production facilities in the optimum condition to 
produce high quality products in accordance with customer requirement. Frequently encountered a 
company  can  not  produce  as  much  as  its  design  capacity  for  several  reasons  including:  the 
performance  of  equipment  has  begun  to  decline,  unplanned  breakdown  and  disruption  during  the 
production  process  is  running.In  order  to  maintain  a  great  number  of  equipment  of  production 
facilities, it is need a lot of experience and expertise and consume huge of maintenance cost. There 
are many factors that influence the amount of cost required for maintain the equipment include the 
application  of  appropriate  maintenance  strategy  according  to  the  type  of  equipment  used  and  the 
consistency  in  the  implementation  of  maintenance  strategy  in  accordance  with  planned  schedule. 
Under the conditions of very tight competition like now, any cost incurred will affect to the selling 
price of the product and have impact on product competitiveness in the market. 
A. Company Profile 
PT.KS  has  6  (six)  production  plants  making  the  company  as  the  only  integrated  steel  plant  in  the 
country.  These  plants  produce  many  kinds  of  downstream  products  from  upstream  raw  materials. 
Production  processes  of  steel  products  in  PT.  KS  starts  from  Direct  Reduction  Plant.  This  plant 
processes iron ore pellets into irons using natural gas and water. The irons are then fed into electric 

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arc  furnaces  in  Slab  Steel  Plant  and  Billet  Steel  Plant.  In  these  furnaces,  the  irons  are  mixed  with 
scrap,  hot  bricket  iron,  and  other  additional  materials  to  produce  two  kinds  of  steels,  namely  slab 
steels and billet steels. 
 
Slab steels are then reheated and rolled in Hot Strip  Mill becoming hot rolled coils and plates. The 
outcomes  of  this  mill  are  widely  used  for  ship  buildings,  pipes,  buildings,  general  structures,  and 
other  applications.  Furthermore,  hot  rolled  coils  could  be  processed,  re‐rolled,  and  chemically 
treated in Cold Rolling Mill becoming cold rolled coils and sheets. The results are generally used to 
manufacture car bodies, cans, cooking wares, and other applications. 
B. Business Issue 
Maintenance cost is a component of production cost in the steel production process. Maintenance 
cost is classified to the two groups and consist of: 
- Direct Maintenance cost 
- Indirect Maintenance cost 
Maintenance  manager  has  responsibility  to  control  the  maintenance  cost  required  to  do  the 
maintenance job under the approved budget. In this case, plant maintenance manager can control the 
direct  maintenance  cost  only,  while  the  indirect  maintenance  cost  is  beyond  the  control  of  its  unit 
because it is a fixed maintenance cost. Actually, the realization of maintenance cost for year 2011 and 
2012 for certain cost account is over the budget. 
 
Table 1.Hot Strip Mill Maintenance Cost Budget  
 
M O N T H L Y B U D G E T (R p )
CO S T A CC O UN T
2 0 11 20 12
M a t e r ia l C o s t
S p are p art 4 .4 0 3 .3 1 6 .6 6 6 3 .0 4 3 .7 0 0 .6 1 3
L u b ric a n t 8 5 4 .1 6 6 .6 6 6 5 6 5 .1 4 1 .5 2 3
N o n s p a re p a rt 1 1 7 .5 1 6 .6 6 7 1 8 0 .9 1 5 .2 7 6
C h e m ic a l 6 .9 1 6 .6 6 7 1 1 .9 1 8 .1 7 8
P rod uct usa ge 2 4 .1 6 6 .6 6 8 1 1 5 .7 2 3 .4 1 3
F in is h p ro d u c t u s a g e 0 0
E x t e r n a l S e r v ic e C o s t 8 2 9 .1 6 6 .6 6 6 8 8 6 .5 0 3 .1 7 5
A c t iv it y c o s t
M a c h in e 0 N A
L ab ou r 0 N A
I n s u r a n c e S p a r e p a rts 1 0 6 .1 9 2 .5 6 1 0
O verha ul 2 7 5 .0 0 0 .0 0 0 6 0 0 .8 8 4 .0 4 1
O th e r 2 3 7 .9 2 9 .1 6 5 3 6 7 .1 1 1 .2 8 3
S u b T o t a l D ir e c t m a in t e n a n c e c o s t 6 .8 5 4 .3 7 1 .7 2 6 5 .7 7 1 .8 9 7 .5 0 2
F IX E D M A IN T E N A N C E C O S T
L a bo r cost
L ab ou r C ost 2 .9 9 4 .9 6 8 .5 4 3 3 .8 5 7 .1 9 2 .9 0 3
R e c o v e ry L a b o u r C o s t 0 0
S u b -c o n t ra c t e d la b o u r c o s t
S u b - c o n tr a c t e d l a b o u r c o s t 9 2 9 .2 1 7 1 .1 8 1 .0 0 7
S u b - c o n tr a c t e d l a b o u r c o s t b y o r d e r 0
M a c h i n e d e p r e c ia t io n
M a c h in e d e p re c ia t io n 1 3 8 .6 9 4 .1 4 2 2 4 9 .6 3 9 .6 8 7
R e c o v e ry M a c h in e H o u r 0 0
O t h e r d e p re c ia t io n 1 7 .3 7 7 .7 5 7 3 7 .9 3 6 .6 5 5
In s u ra n c e c o st 8 .0 0 0 .0 0 0 1 7 .3 0 1 .4 1 7
U t ilit y c o s t 0 0
O th e r g e n e ra l c o s t 5 0 .6 5 5 .5 2 6 2 8 .5 3 1 .1 1 5
C e n t r a l m a i n te n a n c e a l o c a ti o n c o s t 0 1 .2 6 3 .4 5 6 .6 1 6
O r d e r a l o c a ti o n c o s t 0
M a c h in e 0
F ro m P la n t N A 0
F ro m W o r k s h o p N A 0
F r o m U ti l i ty N A 0
L ab ou r 0
F ro m P la n t N A 0
F ro m W o r k s h o p N A 0
F r o m U ti l i ty N A 0
S u b T o t a l in d ire c t m a in t e n a n c e c o s t 3 .2 1 0 .6 2 5 .1 8 5 5 .4 5 5 .2 3 9 .3 9 9  
 
 
 
 
 
 
 
 
 
 

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Table 2. Comparison of Hot Strip Mill Maintenance Cost Budget and Realization 
 
2011 2012
COST ACCOUNT
Realization Budget Diff. Realization Budget Diff.
Material Cost
Spare part 4.153.874.050 4.403.316.666 3.960.263.613 3.043.700.613 over
Lubricant 1.149.464.558 854.166.666 over 1.134.835.967 565.141.523 over
Non spare part 98.753.865 117.516.667 88.789.697 180.915.276
Chemical 0 6.916.667 0 11.918.178
Product usage 30.338.552 24.166.668 over 10.290.112 115.723.413
Finish product usage 18.829.065 0 (900.581) 0
External Service Cost 1.713.180.750 829.166.666 over 926.623.150 886.503.175
Activity cost
Machine 401.608.968 0 NA NA
Labour 1.086.844.719 0 NA NA
Insurance Spareparts 59.121.601 106.192.561 354.632.682 0
Overhaul 264.084.443 275.000.000 0 600.884.041
Other 71.667.444 237.929.165 130.669.054 367.111.283
Sub Total Direct maintenance cost 9.047.768.016 6.854.371.726 6.605.203.694 5.771.897.502  
 
Table 3.Trend of Direct Maintenance Cost  
 
MONTHLY REALIZATION(Rp) MONTHLY BUDGET (Rp)
COST ACCOUNT
2011 2012 TREND 2011 2012 TREND
Material Cost
Spare part 4.153.874.050 3.960.263.613 Decrease 4.403.316.666 3.043.700.613 Decrease
Lubricant 1.149.464.558 1.134.835.967 Decrease 854.166.666 565.141.523 Decrease
Non spare part 98.753.865 88.789.697 Decrease 117.516.667 180.915.276 Increase
Chemical 0 0 6.916.667 11.918.178 Increase
Product usage 30.338.552 10.290.112 Decrease 24.166.668 115.723.413 Increase
Finish product usage 18.829.065 (900.581) Decrease 0 0
External Service Cost 1.713.180.750 926.623.150 Decrease 829.166.666 886.503.175 Increase
Activity cost
Machine 401.608.968 NA 0 NA
Labour 1.086.844.719 NA 0 NA
Insurance Spareparts 59.121.601 354.632.682 Increase 106.192.561 0 Decrease
Overhaul 264.084.443 0 Decrease 275.000.000 600.884.041 Increase
Other 71.667.444 130.669.054 Increase 237.929.165 367.111.283 Increase
Sub Total Direct maintenance cost 9.047.768.016 6.605.203.694 6.854.371.726 5.771.897.502  
 
Spare part cost is the amount of spare part that used by the plant to replace the broken one in order 
to keep the machine running. Lubricant usage cost is the cost that used by Hot Strip Mill Plant to fulfill 
the  lubricants  requirement  which  is  consisting  of  various  kinds  of  grease  and  oil  that  needed  for 
hydraulic  systems,  oil  lubrication  systems  and  grease  lubrication  systems.  Product  usage  cost  and 
Finish product usage cost are the cost that charged to the plant due to using the own products such as 
slab, plate, and wire rod for maintenance activity purpose. 
 
External  services  costs  are  the  costs  that  used  for  repairing  of  equipment  (machinery  and  building) 
which are done by contractors including heavy equipment rental. Activity cost is the cost that incurred 
when performing equipment repair that using internal workshop facilities and consisting of material 
cost, machinery cost and labor cost. For year 2011 the cost is classified as direct maintenance cost, but 
for year 2012 the cost is classified as indirect maintenance cost or fixed maintenance cost. Actually the 
spare part cost already decrease 4,7 % from year 2011 to 2012, but because of the budget is decrease 
30,9 %, the spare part cost still over the available budget by 30,1 %. 
 
The actual lubricant cost is decrease 1,3 % from year 2011 to 2012, but the budget for lubricant cost is 
decrease 33,8 %, so the lubricant cost is over the budget by 34,6 % for year 2011 and getting worst to 
100,8 % for year 2012. 
External services costs for year 2011 is over the budget by 51,6 % and for year 2012 the cost is over 
the  budget  by  4,5  %.  The  cost  is  decrease  by  45,9  %  from  year  2011  to  2012,  while  the  budget  is 

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increased  by  6,9  %.  Based  on  the  scope  of  control  (control  possibilities),  budget  point  of  view  and 
maintenance cost realization trend from year 2011 to 2012, the major business issue in the Hot Strip 
Mill Maintenance Division is the high consumption cost of lubricant. 
 
2. Business Issue Exploration 

Every steel mill in the world definitely have hydraulic and lubrication system as the main equipment 
of production process facilities. In both systems require a lubricant such as oil and grease and used as 
the  operating  medium.  Hydraulic  system  is  a  source  of  power/energy  that  use  a  high  pressure 
liquid/oil flows through pipes and hoses from power station to the actuator and used to move the 
equipment  with  big  loads.  Hydraulic  system  is  a  closed  loop  system,  it’s  mean  that  there  is  no  oil 
leave from the system except leakage. 
 
Lubrication system is a system that serves to lubricate the machine part that rub against each other 
as  well  as  the  cooling  medium  for  the  heat  that  occurs  during  equipment  operation.  With  good 
lubrication system the equipment service life time is longer because the wear rate is minimized. In 
general,  there  are  two  lubricant  media  that  use  for  lubrication  (oil  and  grease).  Grease  lubrication 
system is an open loop system, it’s mean that there is a certain amount of grease leaving the system. 
Oil lubrication systems have booth type of lubrication (closed loop and open loop system). 
C. Conceptual Framework 
In total, there are many kinds of lubricant that used in this factory according to the type and function 
of  equipment  and  under  control  by  four  departments  in  Hot  Strip  Mill  Division.  The  following 
framework will be used to identify and reduce the lubricant consumption cost in this company. 

 
Figure 1.Framework for Reducing Lubricant Consumption Cost 
 
D. Method of Data Collection and Analysis 
The research was divided into two phases. The first phase is intended to develop an understanding of 
the current problem in the business unit. The research was conducted in hot strip mill maintenance 
division. The data was collected from plant accountant company report regarding maintenance cost. 
The cost was breaking down into several cost elements to get the major problem on this division. 
 
The other quantitative detail data is collected from company integrated information system (SAP) and 
consisting  of  lubricant  type  (quantity  and  price),  work  order  number,  location  number  or  area,  and 
transaction date. The data is analyzed to know what the problem’s root caused. The second phase is 
creating a strategy for improvement program. Started from collecting the maintenance plan data from 
company  integrated  information  system  (SAP),  quantitative  data  analysis,  and  making 

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recommendation for new strategy complete with implementation concepts. In conducting the use of 
lubricants analysis, the lubricant consumption data is based on the date that the lubricants is taken 
out from the storage in accordance with posting date in the company integrated information system 
(SAP). According to the data on the table 4 and table 5, the lubricant with the biggest oil consumption 
cost for year 2011 and 2012 is: 
Lubricant Type: Lubricating Oil Hydraulic ISO VG 46 
Lubricant Code: OL9150000184 
Application      : Hydraulic System Fluid Media 
Therefore, further research will focus on this type of lubricant that serves as hydraulic system fluid 
media.
Table 4.Lubricant Consumption Data for Year 2011 
 
LUBRICANT
NO TOTAL
CODE DESCRIPTION
1 OL9150000184 LUBRICATING OIL,HYDRO.- ISOVG 46 Rp 3.287.476.000
2 OL9150000188 LUBRICATING OIL-ISO VG 680 Rp 1.848.196.385
3 OL9150000185 LUBRICATING OIL*ISO VG 460 Rp 1.832.676.000
4 OL9150000008 GREASE,GEN. PURPOSE-CERAN-HV-1042KG/BAG Rp 1.799.981.445
5 OL9150000012 GREASE,GENERAL PURPOSE*NLGI 2-178KG/DRUM Rp 1.332.184.752
6 OL9150000017 GREASE,GENERAL PURPOSE-180KG/DRUM Rp 459.756.612
7 OL9150000117 LUBRICATING OIL-ISO VG 320 Rp 303.466.486
8 OL9150000171 GREASE,HIGH TEMPERATURE-9901-15.9KG/PAIL Rp 301.838.569
9 OL9150000175 LUBRICATING OIL,AIR COMPRESSOR-208L Rp 286.282.669
10 OL9150000030 GREASE,HIGH TEMPERATURE Rp 272.987.898
11 OL9150000019 GREASE,GENERAL PURPOSE-ALMATEK-1233 Rp 180.523.478
12 OL9150000028 GREASE,GENERAL PURPOSE-NLGI-2 Rp 179.921.480
13 OL9150000190 LUBRICATING OIL,GEAR OIL*ISO- VG 220 Rp 171.512.000
14 OL9150000173 LUBRICATING,OIL-TONNA-T220/MACCURAT 220 Rp 166.940.053
15 OL9150000046 LUBRICATING OIL-API 29.9 Rp 166.161.600
16 OL9150000204 GREASE,GENERAL PURPOSE-BECHEM-FA67-400 Rp 151.470.000
17 OL9150000182 HYDRAULIC-FIRE RESISTANT OIL-ISO VG68 Rp 122.485.402
18 OL9150000121 LUBRICATING OIL,HYDRAULIC*T 68 Rp 122.281.264
19 OL9150000198 LUBRICATING OIL,HYDRAULIC-SYNTHETIC Rp 117.050.670
20 OL9150000096 LUBRICATING OIL,HYDRAULIC OIL-ISO VG 10 Rp 101.674.529
21 OL9150000108 LUBRICATING OIL-HYDRAULIC OIL-ISO VG 32 Rp 92.825.000
22 OL9150000186 LUBRICATING OIL,HYDRAULIC*ISO-VG68 Rp 92.774.000
23 OL9150000201 GREASE,SPECIAL,PURPOSE-1275 Rp 82.473.580
24 OL9150000049 LUBRICATING TRANSFORMER OIL-ISOVG 14 Rp 75.097.700
25 OL9150000202 LUBRICATING OIL*SULLUBE 32 Rp 57.749.801
26 OL9150000027 GREASE,GENERAL PURPOSE-NLGI00-452ALMASOL Rp 52.522.470
27 OL9150000062 LUBRICATING OIL-ROCOL-230-20LT/CAN Rp 45.381.843
28 OL9150000193 LUBRICATING OIL,GEAR-OIL-ISO VG 150 Rp 40.320.071
29 OL9150000076 LUBRICATING OIL*GENERAL OIL 100 Rp 19.874.778
30 OL9150000090 LUBRICATING GREASE*NLGI 00-181 KG/DRUM Rp 13.388.041
31 OL9150000215 LUBRICATING OIL-S-460-SYNTHETIC OIL Rp 10.030.980
32 OL9150000074 LUBRICATING OIL,GEN.PURPOSE-ISO VG 220 Rp 3.569.143
33 OL9150000039 GREASE,SPECIAL PURPOSE-BR2-PLUS-GREASE Rp 2.700.000
34 OL9150000048 LUBRICATING OIL-ISO VG 150 Rp -
35 OL9150000246 GREASE,OPEN GEAR-WOLF COMPOUND C-15KG/PL Rp -
Rp 13.793.574.699  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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Table 5.Lubricant Consumption Data  
Period: 1 January – 30 June, 2012 
LUBRICANT
NO TOTAL
CODE DESCRIPTION
1 OL9150000184 LUBRICATING OIL,HYDRO.- ISOVG 46 Rp 1.500.974.000
2 OL9150000185 LUBRICATING OIL*ISO VG 460 Rp 1.222.176.000
3 OL9150000188 LUBRICATING OIL-ISO VG 680 Rp 1.032.923.438
4 OL9150000012 GREASE,GENERAL PURPOSE*NLGI 2-178KG/DRUM Rp 642.538.170
5 OL9150000008 GREASE,GEN. PURPOSE-CERAN-HV-1042KG/BAG Rp 641.380.493
6 OL9150000017 GREASE,GENERAL PURPOSE-180KG/DRUM Rp 243.750.564
7 OL9150000246 GREASE,OPEN GEAR-WOLF COMPOUND C-15KG/PL Rp 194.400.000
8 OL9150000171 GREASE,HIGH TEMPERATURE-9901-15.9KG/PAIL Rp 163.976.956
9 OL9150000117 LUBRICATING OIL-ISO VG 320 Rp 155.625.572
10 OL9150000182 HYDRAULIC-FIRE RESISTANT OIL-ISO VG68 Rp 155.306.962
11 OL9150000175 LUBRICATING OIL,AIR COMPRESSOR-208L Rp 136.714.564
12 OL9150000198 LUBRICATING OIL,HYDRAULIC-SYNTHETIC Rp 119.288.844
13 OL9150000019 GREASE,GENERAL PURPOSE-ALMATEK-1233 Rp 96.621.108
14 OL9150000030 GREASE,HIGH TEMPERATURE Rp 82.882.738
15 OL9150000190 LUBRICATING OIL,GEAR OIL*ISO- VG 220 Rp 73.456.000
16 OL9150000046 LUBRICATING OIL-API 29.9 Rp 71.008.000
17 OL9150000173 LUBRICATING,OIL-TONNA-T220/MACCURAT 220 Rp 60.497.323
18 OL9150000204 GREASE,GENERAL PURPOSE-BECHEM-FA67-400 Rp 55.080.000
19 OL9150000201 GREASE,SPECIAL,PURPOSE-1275 Rp 46.365.116
20 OL9150000028 GREASE,GENERAL PURPOSE-NLGI-2 Rp 33.044.306
21 OL9150000121 LUBRICATING OIL,HYDRAULIC*T 68 Rp 19.939.773
22 OL9150000096 LUBRICATING OIL,HYDRAULIC OIL-ISO VG 10 Rp 16.498.460
23 OL9150000193 LUBRICATING OIL,GEAR-OIL-ISO VG 150 Rp 11.759.385
24 OL9150000215 LUBRICATING OIL-S-460-SYNTHETIC OIL Rp 10.708.782
25 OL9150000076 LUBRICATING OIL*GENERAL OIL 100 Rp 7.949.263
26 OL9150000048 LUBRICATING OIL-ISO VG 150 Rp 7.600.000
27 OL9150000202 LUBRICATING OIL*SULLUBE 32 Rp 3.849.987
28 OL9150000039 GREASE,SPECIAL PURPOSE-BR2-PLUS-GREASE Rp 2.700.000
29 OL9150000027 GREASE,GENERAL PURPOSE-NLGI00-452ALMASOL
30 OL9150000049 LUBRICATING TRANSFORMER OIL-ISOVG 14
31 OL9150000062 LUBRICATING OIL-ROCOL-230-20LT/CAN
32 OL9150000074 LUBRICATING OIL,GEN.PURPOSE-ISO VG 220
33 OL9150000090 LUBRICATING GREASE*NLGI 00-181 KG/DRUM
34 OL9150000108 LUBRICATING OIL-HYDRAULIC OIL-ISO VG 32
35 OL9150000186 LUBRICATING OIL,HYDRAULIC*ISO-VG68
Rp 6.809.015.804  
Hot  Strip  Mill  Plant  has  several  number  of  hydraulic  system  station  and  located  at  certain  area 
according to the factory lay out. Each hydraulic system is designed to support the operational of each 
specified area. The number of hydraulic system in certain area is adjusted according to the design  
working  pressure  required,  the  number  of  actuator,  and  environmental  condition.  In  general,  the 
working pressure of hydraulic system is between 120‐150 bars and 250‐300 bars.  
 
Table 6.Hydraulic lubricant consumption data for year 2011 
 
N o. A rea Q ty (ltr) C o st
1 Fin ish ing Mill 54 .000 Rp 82 5.69 1.64 7
2 D ow n C oiler 34 .000 Rp 51 9.87 9.92 6
3 R ough ing Mill 28 .000 Rp 42 8.13 6.40 9
4 Furn ace 25 .000 Rp 38 2.26 4.65 1
5 C hain Tra nsp ort 24 .000 Rp 36 6.97 4.06 5
6 Shea ring Line 1 20 .000 Rp 30 5.81 1.72 1
7 Shea ring Line 2 18 .000 Rp 27 5.23 0.54 9
8 H ot S k in Pa ss M ill 12 .000 Rp 18 3.48 7.03 3
TO TAL  
215 .000 Rp 3.28 7.47 6.00 0
 
Table 7.Hydraulic lubricant consumption data  
Period: 1 January – 30 June, 2012 
No. Area Qty (ltr) Cost
1 Finishing Mill 25.000 Rp 399.195.213
2 Chain Transport 15.000 Rp 239.517.128
3 Hot Skin Pass Mill 14.000 Rp 223.549.319
4 Shearing Line 1 10.000 Rp 159.678.085
5 Shearing Line 2 9.000 Rp 143.710.277
6 Roughing Mill 8.000 Rp 127.742.468
7 Down Coiler 7.000 Rp 111.774.660
8 Furnace 6.000 Rp 95.806.851
TOTAL  
94.000 Rp 1.500.974.000
Based on data in the table 6 and 7, the highest oil  consumption  is  used for operating the hydraulic 
system in the Finishing Mill area. Because hydraulic system is a closed loop system (no oil leave from 
the system), so the big oil consumption indicate that there are many leakages in the system. In order 
to reduce the oil consumption, the research will be conducted in detail to find out the root cause of 
leakage problem for the hydraulic system in the Finishing Mill area. 

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E. Analysis of Business Situation  
Currently,  maintenance  division  has  applied  preventive  maintenance  system  to  take  care  of  the 
hydraulic  equipment  in  Hot  Strip  Mill.  There  are  some  maintenance  plans  that  contain  certain 
maintenance  instruction  used  to  guide  the  workforce  to  do  the  maintenance  job.  The  job  order  is 
automatically  generated  by  the  computer  maintenance  management  system  (SAP)  from  each 
maintenance plan according to interval time gap that already set before. In general, the purpose of 
each existing maintenance plan is to maintain the condition of hydraulic equipment in the term of: 
Oil cleanliness, Pressure stabilization, Oil temperature and avoid the oil leakage.Based on data in the 
table  8  and  9,  the  maintenance  strategy  to  prevent  the  hydraulic  system  from  leakage  is  not 
sufficient. 
 
Table 8.List of maintenance plant for hydraulic equipment at Finishing Mill area 
 
Mainten anc e Interv al
F unc tLo c. D es criptio n Main Purp ose
p lan (w ee k)
HD -1 50-H 01 8 C H E, H OSE M AIN SYST EM H YD. D /E 10 044 785 4 Avo id the o il le akage
HD -1 50-H 01 8 C H E, PIPE & FIT TING MAIN SYSTEM H YD .D/E 10 044 786 4 Avo id the o il le akage
HD -1 50-H 01 8 C H E. H OSE AR EA STAN D H YD- D/E 10 044 788 2 Avo id the o il le akage
HD -1 50-H 01 8 C H E, PIPE & FIT TING AR EA STAN D HYD .D /E 10 044 789 2 Avo id the o il le akage
HD -1 60-H 01 0 C H E, H OSE M AIN SYST EM H YD.SYST . 1 10 045 077 4 Avo id the o il le akage
HD -1 60-H 01 0 C H E, PIPE & FIT TING MAIN SYSTEM H YD . 1 10 045 078 4 Avo id the o il le akage
HD -1 60-H 01 0 C H E. H OSE H YD R AU L IC AREA ST AN D SYST. 1 10 045 079 2 Avo id the o il le akage
HD -1 60-H 01 0 C H E, PIPE & FIT TING AR EA STAN D SYST . 1 10 045 090 2 Avo id the o il le akage
HD -1 70-H 00 9 C H E, PIPE & FIT TING MAIN SYSTEM H YD . 2 10 045 094 4 Avo id the o il le akage
HD -1 70-H 00 9 C H E. H OSE H YD R AU L IC AREA ST AN D SYST. 2 10 045 095 2 Avo id the o il le akage
HD -1 70-H 00 9 C H E, PIPE & FIT TING AR EA STAN D SYST . 2 10 045 096 2 Avo id the o il le akage
HD -1 50-H 01 3 R PL. ELEM ENT FIL TER C IR CUL ASI H YD - D/E 10 044 654 12 Oil c lea line ss
HD -1 50-H 01 3 R PL. ELEM ENT FIL TER BALIK HYD .SYST. D/E 10 044 655 12 Oil c lea line ss
HD -1 60-H 00 7 R PL. ELEM ENT FIL TER C IR CUL ASI H YD.SYST.1 10 044 656 12 Oil c lea line ss
HD -1 60-H 00 7 R PL. ELEM ENT FIL TER BALIK HYD .SYST.1 10 044 657 12 Oil c lea line ss
HD -1 60-H 01 1 R PL, ELEM ENT FIL TER MAIN JAC K F4 OS-DS 10 043 880 12 Oil c lea line ss
HD -1 60-H 01 1 R PL, ELEM ENT FIL TER MAIN JAC K F5 OS-DS 10 043 881 12 Oil c lea line ss
HD -1 60-H 01 1 R PL, ELEM ENT FIL TER MAIN JAC K F6 OS-DS 10 043 882 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER H IG H PR ESSU R E H YD. SYST .1 P1 10 044 658 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER H IG H PR ESSU R E H YD. SYST .1 P2 10 044 659 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER H IG H PR ESSU R E H YD. SYST .1 P3 10 044 660 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER H IG H PR ESSU R E H YD. SYST .1 P4 10 044 661 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO W R.BEN D ER O S-D S F4 10 044 662 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO W R.BEN D ER O S-D S F5 10 044 663 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO W R.BEN D ER O S-D S F6 10 044 664 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING ENTRY TO P F4 10 044 680 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING EXIT TO P F4 10 044 681 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING ENTRY BOT . F4 10 044 682 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING EXIT BOT T. F 4 10 044 683 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING ENTRY TO P F5 10 044 684 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING EXIT TO P F5 10 044 685 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING ENTRY BOT . F5 10 044 686 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING EXIT BOT T. F 5 10 044 687 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING ENTRY TO P F6 10 044 688 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING EXIT TO P F6 10 044 689 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING ENTRY BOT . F6 10 044 700 12 Oil c lea line ss
HD -1 60-H 01 1 R PL. FILTER SER VO SHIFTING EXIT BOT T. F 6 10 044 701 12 Oil c lea line ss
HD -1 60-H 01 1 C LE, H IG H PR ESS.FILT ER SC R EW D O W N F4-F6 10 045 047 6 Oil c lea line ss
HD -1 60-H 01 1 C LE, BR EATH ER SC R EW DO W N F4 -F6 10 045 048 4 Oil c lea line ss
HD -1 60-H 01 1 C LE, BR EATH ER D RAIN POC KET SYST.1 10 045 049 4 Oil c lea line ss
HD -1 60-H 01 1 C LE, H IG H PR ESS.FILT ER P1 -P3 SYST. 1 10 045 075 4 Oil c lea line ss
HD -1 70-H 00 6 R PL. ELEM ENT FIL TER C IR CUL ASI H YD.SYST.2 10 044 665 12 Oil c lea line ss
HD -1 70-H 00 6 R PL. ELEM ENT FIL TER BALIK HYD .SYST.2 10 044 666 12 Oil c lea line ss
HD -1 70-H 01 0 R PL. FILTER H IG H PR ESSU R E H YD. SYST .2 P1 10 044 667 12 Oil c lea line ss
HD -1 70-H 01 0 R PL. FILTER H IG H PR ESSU R E H YD. SYST .2 P3 10 044 668 12 Oil c lea line ss
HD -1 70-H 01 0 R PL. FILTER H IG H PR ESSU R E H YD. SYST .2 P2 10 044 669 12 Oil c lea line ss
HD -1 50-H 01 4 C LE, FILTER W ATER C O O LER HYD.D /E 10 044 769 6 O il tem pera ture
HD -1 50-H 01 4 C LEAN H EAT EXC H ANG ER HYD. D/E 10 044 780 24 O il tem pera ture
HD -1 60-H 00 8 C LE, FILTER O IL C O O LER H YD. SYS. 1 10 045 080 6 O il tem pera ture
HD -1 50-H 01 5 C H E. PISTO N AC CUM U LATO R HYD. D/E 10 044 427 4 Pres su re stabiliza tion
HD -1 50-H 01 6 C H E, N ITR O GEN PR ESS. AC C U. BAL. H YD . D /E 10 044 784 4 Pres su re stabiliza tion
HD -1 50-H 01 7 C H E, N ITR O GEN PR ESS. AC C U. C OM P.H YD . D/E 10 044 781 4 Pres su re stabiliza tion
HD -1 50-H 06 8 C H E, N ITR O GEN PR ESS. AC C U. LAMINAR CO O L 10 045 004 4 Pres su re stabiliza tion
HD -1 60-H 00 9 C H E. TEKAN AN ACC U . M AIN JAC K F4 -F6 O S/D S 10 043 883 24 Pres su re stabiliza tion
HD -1 60-H 00 9 C H E, N ITR O GEN PR ESS. AC C U. H YD . SYST. 1 10 045 076 4 Pres su re stabiliza tion
HD -1 70-H 00 8 C H E, N ITR O GEN PR ESS. AC C U. H YD . SYST. 2 10 045 092 4 Pres su re stabiliza tion  
 
 
 
 
 
 
 
 
 
 
 

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Table 9.List of job instruction to avoid oil leakage for hydraulic equipment in Finishing Mill area 
Maintenance Interval
Job Instructions
plan (week)
10044785 4 CHECK ALL HOSE CONDITION IN THE SYSTEM
CHECK CONNECTION BETWEEN HOSE AND PIPE
10044786 4 CHECK & RETIGHTENING PIPA CONNECTION FROM PUMP STATION
CHECK LEAKAGE ON PIPE CONNECTION
10044788 2 CHECK ALL HOSE IN STAND AREA HYDRAULIC SYSTEM
CHECK CONNECTION BETWEEN HOSE AND PIPE IN THE STAND AREA HYDRAULIC SYSTEM
CHECK CONDITION OF HOSE ASBESTOS COVER
10044789 2 CHECK PIPE & FITTING AREA STAND HYDRAULIC SYSTEM
CHECK & RETIGHTENING PIPA CONNECTION HYDRAULIC SYSTEM
CHECK LEAKAGE ON PIPE CONNECTION
CHECK CONDITION OF PIPE LINE HYDRAULIC SYSTEM
CHECK CONDITION OF PIPE HOLDER IN THE STAND AREA HYDRAULIC SYSTEM
10045077 4 CHECK ALL HOSE CONDITION IN THE SYSTEM
CHECK CONNECTION BETWEEN HOSE AND PIPE
10045078 4 CHECK & RETIGHTENING PIPA CONNECTION HYDRAULIC SYSTEM
CHECK LEAKAGE ON PIPE CONNECTION
10045079 2 CHECK ALL HOSE IN STAND AREA HYDRAULIC SYSTEM
CHECK CONNECTION BETWEEN HOSE AND PIPE IN THE STAND AREA HYDRAULIC SYSTEM
CHECK CONDITION OF HOSE ASBESTOS COVER
10045090 2 CHECK PIPE & FITTING AREA STAND HYDRAULIC SYSTEM
CHECK & RETIGHTENING PIPA CONNECTION HYDRAULIC SYSTEM
CHECK LEAKAGE ON PIPE CONNECTION
CHECK CONDITION OF PIPE LINE HYDRAULIC SYSTEM
10045094 4 CHECK PIPE & FITTING AREA STAND HYDRAULIC SYSTEM
CHECK & RETIGHTENING PIPA CONNECTION HYDRAULIC SYSTEM
CHECK LEAKAGE ON PIPE CONNECTION
CHECK CONDITION OF PIPE LINE HYDRAULIC SYSTEM
10045095 2 CHECK ALL HOSE CONDITION IN THE SYSTEM
CHECK ALL HOSE IN STAND AREA HYDRAULIC SYSTEM
CHECK CONNECTION BETWEEN HOSE AND PIPE IN THE STAND AREA HYDRAULIC SYSTEM
CHECK CONDITION OF HOSE ASBESTOS COVER
10045096 2 CHECK PIPE & FITTING AREA STAND HYDRAULIC SYSTEM
CHECK & RETIGHTENING PIPA CONNECTION HYDRAULIC SYSTEM
CHECK LEAKAGE ON PIPE CONNECTION
CHECK CONDITION OF PIPE LINE HYDRAULIC SYSTEM
 
CHECK CONDITION OF PIPE HOLDER IN THE STAND AREA HYDRAULIC SYSTEM

 
To find out the root cause of the leakage on hydraulic system in finishing mill area, we use the 
Caused‐and‐Effect Diagram and Interrelationship Diagram. 
 
Environment People / Man

Piping lay out is Man power availability

crowded
Maintenance or
There are too much pipe in shutdown time is
limited space / area limited

Difficult to identify the All the job is schedulled in the

source of leakage same time (maintenance or
shutdown time)

There are water spraying

Not enough man power to
system for work roll and
do all the job properly
back-up roll cooling
Leakage on Hydraulic
System Finishing Mill
Hose Area
deterioration Pipe crack
There is no Periodically job ticket never
schedule for hose No sufficient pipe clamp to evaluated regularly
replacement avoid high vibration
No adequate preventive
Leakage Leakage and predictive maintenance
on hose on pipe system
O-ring
deterioration Leakage on Job instruction is too general need
actuator to be more specific
There is no There is no schedule for
schedule for O-ring seal replacement Periodically job ticket not cover all
replacement of maintenance activity
Seal
Leakage on deterioration
valve stand

Machine / Equipment Methode / Process

 
Figure 2.Caused‐and‐effect diagram for leakage on hydraulic system at finishing mill 
 

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Environment Machine / Equipment

Leakage on Leakage on Leakage on

Difficult to identify the source of leakage Leakage on pipe
hose Valve stand actuator

There are water

Piping lay out is spraying system for Hose O-ring Seal
Pipe crack
crowded work roll and back-up deterioration deterioration deterioration
roll cooling

There is no There is no There is no

There are too much No sufficient pipe
schedule for schedule for O- schedule for
pipe in limited space clamp to avoid
hose ring seal
/ area high vibration
replacement replacement replacement

All the job is Periodically job

Job instruction is Periodically job
Maintenance or schedulled in the ticket not cover
too general need ticket never
shutdown time is same time all of
to be more evaluated
limited (maintenance or maintenance
specific regularly
shutdown time) activity

Not enough man power to do all the job No adequate preventive and predictive
properly maintenance system

People / Man Methode / Process

 
Figure 3.Interrelationship diagram for leakage on hydraulic system at finishing mill
 
According  to  the  both  diagram  above,  we  can  conclude  that  the  root  cause  of  the  leakage  on  the 
hydraulic  system  in  finishing  mill  is  because  there  is  no  adequate  preventive  and  predictive 
maintenance system. More precisely in detail is because of: 
- Periodically job ticket not cover all of maintenance activity 
- Job instruction is too general and need to be more specific 
- Periodically job ticket never evaluated regularly 
 
3. Business Solution 

F. Alternative of Business Solution  
Maintenance  activity  in  a  production  facilities  are  important  thing  and  have  direct  affect  to  the 
production  process  to  create  the  product.  Cursory  people  would  say  that  maintenance  activity  is 
identical  to  the  expenses  to  be  paid  by  a  company  in  the  great  amount  of  money.  But  when 
examined further, the cost of maintenance doesn’t mean anything compared to what will be lost by a 
companies that stop their production facilities due to damage of factory production equipment. Over 
the  years  maintenance  strategies  have  varied,  but  basically  there  are  three  primary  categories  of 
maintenance strategy: reactive maintenance, preventive maintenance and predictive maintenance.  
 
The  implementation  of  effective  and  appropriate  maintenance  strategy  is  necessary  to  obtain 
optimum equipment performance with minimum maintenance cost. Therefore, to reduce the high oil 
consumption  cost  in  hot  strip  mill  is  absolutely  need  a  comprehensive  (complete  and  integrated) 
maintenance  strategy  that  supported  by  all  related  division  in  entire  company.    Actually, 
Maintenance Manager has three alternatives to reduce the oil leakage on the hydraulics system by 
implementing the several maintenance strategies as follows: 
- Reactive Maintenance strategy  
- Preventive Maintenance strategy 
- Combination of preventive and predictive maintenance strategy 

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According to the Federal Energy Management Program a guidance to achieving operational efficiency 
with the title  Operations and Maintenance Best Practice, mention that “ the reference study breaks 
down  in  the  average  maintenance  program  as  follows:  >  55%  Reactive,  31%  Preventive,  12% 
Predictive, 2% Other” (Sullivan et al: 2010: 5.2). 
 
Table 10.Lubricant Cost for Each Strategy 
 
Maintenance Strategy Portion Lubricant Cost
Reactive Maintenance 55% Rp 454.130.406
Preventive Maintenance 31% Rp 255.964.411
Predictive Maintenance 12% Rp 99.082.998
Other 2% Rp 16.513.833
Total 100% Rp 825.691.647  
G. Analysis of Business Solution  
Reactive Maintenance Strategy, the maintenance crews take no actions until the breakdown occurs. 
By  implementing  this  maintenance  strategy,  the  oil  leakage  can’t  be  reduced,  and  the  oil 
consumption  cost  will  increase  from  time  to  time.  According  to  the  latest  data,  the  actual  oil 
consumption cost is increasing from year 2011 to year 2012 as follow: 
  ‐ Year 2011  : Rp  13.793.574.699,‐ 
   ‐ Year 2012  : Rp  14.096.580.585,‐ 
  ‐ Oil consumption increase by: Rp  303.005.886,‐ 
The other disadvantage of reactive maintenance strategy is excessive of equipment breakdown. The 
company doesn’t want to stop the operation of its production facilities because of equipment failure 
or breakdown because the product delivery time will be longer and poor product quality.  Therefore, 
reactive maintenance strategy can not be implemented because of its many disadvantages as already 
explained before.  
 
Preventive maintenance strategy is maintenance activity by replacing a machine component or part 
in  the  certain  time  period.  Generally,  hydraulic  system  is  consisting  of  main  power  station,  piping 
installation,  flexible  hose  and  cylinder  or  actuator.  The  part  or  component  in  the  hydraulic  system 
that should be replaced periodically is hydraulic hoses and hydraulic cylinder seals which have limited 
life time. 
 
According  to  table  11  and  12,  the  budget  for  periodically  replacement  of  hydraulic  hoses  and 
hydraulic cylinder seals in hot strip mill finishing area every year is: 
Hydraulic hose total cost    : Rp      94.689.471 
Hydraulic cylinder seal total cost : Rp    229.194.273 
Total replacement cost      : Rp    323.883.743 
 
Table 11.Yearly Replacement Cost of Hydraulic Cylinder Seal 
 
Cylinder Seal Set
No. Total Cost
Description Qty Size (mm) Price /set
1 CYLINDER CTRL. COLLECTING THROUGH 4 D 50 x 36 Rp 772.601 Rp 3.090.406
2 CYLINDER CTRL. LOOPER HYDRAULIC L3 1 D 100 x 70 Rp 1.287.290 Rp 1.287.290
3 CYLINDER CTRL. PINCH ROLL 4 D 80 x 56 Rp 1.194.373 Rp 4.777.490
4 CYLINDER CTRL. LIFTING RAIL 24 D 125 x 90 Rp 1.181.800 Rp 28.363.200
5 CYLINDER CTRL. WORK ROLL SHIFTING 24 D 180 x 105 Rp 1.478.703 Rp 35.488.880
6 CYLINDER CTRL. SPRAYING HEADER 4 D 63 x 45 Rp 642.955 Rp 2.571.820
7 CYLINDER CTRL. BACK UP ROLL BALANCE 24 D 120 x 90 Rp 1.380.208 Rp 33.124.992
8 CYLINDER CTRL. WORK ROLL KEEPER PLATE 24 D 40 x 28 Rp 632.011 Rp 15.168.264
9 CYLINDER CTRL. BACK UP ROLL KEEPER PLATE 24 D 40 x 28 Rp 632.011 Rp 15.168.264
10 CYLINDER CTRL. SPINDLE SUPPORT 12 D 40 x 28 Rp 632.011 Rp 7.584.132
11 CYLINDER CTRL. DELIVERY GUIDE 6 D 140 x 90 Rp 1.167.058 Rp 7.002.348
12 CYLINDER CTRL. ENTRY GUIDE 6 D 140 x 90 Rp 1.167.058 Rp 7.002.348
13 CYLINDER CTRL. RETRAC BLOCK 6 D 100 x 56 Rp 991.744 Rp 5.950.464
14 CYLINDER CTRL. JACK SUPPORT 12 D 80 x 45 Rp 1.081.415 Rp 12.976.976
15 CYLINDER CTRL. SIDE SHIFT F1-F6 1 D 250 x 180 2.613.789 Rp 2.613.789
16 CYLINDER CTRL. BACK UP ROLL CHANGE 6 D 320 x 220 Rp 2.709.000 Rp 16.254.000
17 CYLINDER CTRL. LIFTING TABLE 5 D 225 x 140 Rp 1.858.375 Rp 9.291.874
18 CYLINDER CTRL. WORK ROLL CHANGE 6 D 200 x 140 Rp 1.634.526 Rp 9.807.156
19 CYLINDER CTRL. SWIVELING GROUP 10 D 140 x 90 Rp 1.167.058 Rp 11.670.580
TOTAL 203 TOTAL Rp 229.194.273  

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Table 12.Yearly Replacement Cost of Hydraulic Hose 
 
Hose length (mtr)
No. Cylinder Qty Total Cost
forward backward

1 CYLINDER CTRL. COLLECTING THROUGH 4 0,80 0,95 Rp 789.020

2 CYLINDER CTRL. LOOPER HYDRAULIC L3 1 1,00 1,20 Rp 819.994
3 CYLINDER CTRL. PINCH ROLL 4 1,40 1,40 Rp 2.880.338
4 CYLINDER CTRL. LIFTING RAIL 24 1,00 1,00 Rp 5.004.192
5 CYLINDER CTRL. WORK ROLL SHIFTING 24 1,20 1,40 Rp 20.556.529
6 CYLINDER CTRL. SPRAYING HEADER 4 0,80 0,80 Rp 762.013
7 CYLINDER CTRL. BACK UP ROLL BALANCE 24 1,50 1,50 Rp 8.680.490
8 CYLINDER CTRL. WORK ROLL KEEPER PLATE 24 0,70 1,00 Rp 4.680.106
9 CYLINDER CTRL. BACK UP ROLL KEEPER PLATE 24 0,80 0,80 Rp 4.572.077
10 CYLINDER CTRL. SPINDLE SUPPORT 12 1,00 1,00 Rp 2.502.096
11 CYLINDER CTRL. DELIVERY GUIDE 6 1,10 1,30 Rp 5.029.549
12 CYLINDER CTRL. ENTRY GUIDE 6 1,30 1,50 Rp 5.248.715
13 CYLINDER CTRL. RETRAC BLOCK 6 1,50 1,50 Rp 2.170.123
14 CYLINDER CTRL. JACK SUPPORT 12 1,10 1,10 Rp 7.891.380
15 CYLINDER CTRL. SIDE SHIFT F1-F6 1 1,20 1,50 Rp 709.673
16 CYLINDER CTRL. BACK UP ROLL CHANGE 6 1,40 2,20 Rp 8.537.471
17 CYLINDER CTRL. LIFTING TABLE 5 1,40 1,40 Rp 6.390.171
18 CYLINDER CTRL. WORK ROLL CHANGE 6 1,00 1,60 Rp 4.195.568
19 CYLINDER CTRL. SWIVELING GROUP 10 1,00 1,50 Rp 3.269.966

TOTAL 203   Rp 94.689.471

 
According to the table 10, by implementing preventive maintenance strategy the total lubricant cost 
can  be  reduced  for  Rp  255.964.411,‐  but  total  replacement  cost  for  hydraulic  hose  and  hydraulic 
cylinder  seal  yearly  is  Rp  323.883.743,‐  therefore  the  implementation  of  preventive  maintenance 
strategy in economical point of view is unacceptable because the replacement cost is more than the 
lubricant cost saving. 
 
Combination  of  preventive  and  predictive  maintenance  strategy,  to  get  the  optimum  cost  for 
replacing the hydraulic hose and hydraulic cylinder seal in finishing mill area, maintenance manager 
should  be  consider  for  combine  the  implementation  of  preventive  maintenance  strategy  and 
predictive maintenance strategy. There are some factors that can be used for decide the appropriate 
maintenance  strategy  for  hydraulic  equipment  in  finishing  mill  area  based  on  equipment  criticality 
factor or impact will occur when equipment failure such as: workforce safety, production downtime, 
product  quality,  equipment  duty  of  operation  and  the  inspection  possibilities  during  equipment 
running. 
 
Table 13.Equipment Criticality Safety Factor 
 
Impact Category Score
No injury 0
Minor or first aid injury 1
Serious injury 2
Fatalities 3  
 
Table 14.Equipment Criticality Production Downtime Factor 
 
Downtime Score
< 1 hour or can be done during operation 1
1 hour - 2 hours 2
2 hours - 4 hours 3
> 4 hours 4  
 
 
 

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Table 15.Equipment Criticality on Product Quality Factor 
 
Impact Category Score
No effect 0
Minor rejection 1
Total rejection 2  
 
Table 16.Equipment Criticality on Duty of Operation Factor 
 
Duty of Operation Score
Rare 1
Intermittent 2
Continuous 3
 
For  hydraulic  equipment  such  as  cylinder  and  hose,  can  be  inspected  (visual  checking)  during 
equipment  running  or  during  shutdown  time  according  to  its  location.  The  equipment  that  can  be 
inspected  during  shutdown  time  ideally  used  the  preventive  maintenance  strategy.  But,  for 
equipment  that  can  be  inspected  while  the  mill  running,  the  appropriate  maintenance  strategy  is 
predictive maintenance. 
 
Table 17.Hydraulic Cylinder Maintenance Strategy Calculation Decision Factor 
 
Critical Factor Inspection Possibilities
No. Cylinder Maintenance Strategy
Product Duty of
Safety Downtime Score Running Shutdown
quality operation

1 CYLINDER CTRL. COLLECTING THROUGH 1 2 1 3 7 0 1 Preventive Maintenance

2 CYLINDER CTRL. LO OPER HYDRAULIC L3 1 3 2 3 9 0 1 Preventive Maintenance
3 CYLINDER CTRL. PINCH ROLL 1 2 1 3 7 0 1 Preventive Maintenance
4 CYLINDER CTRL. LIFTING RAIL 1 4 1 2 8 0 1 Preventive Maintenance
5 CYLINDER CTRL. WORK ROLL SHIFTING 1 4 2 3 10 0 1 Preventive Maintenance
6 CYLINDER CTRL. SPRAYING HEADER 1 2 1 3 7 0 1 Preventive Maintenance
7 CYLINDER CTRL. BACK UP ROLL BALANCE 1 2 2 3 8 0 1 Preventive Maintenance
8 CYLINDER CTRL. WORK ROLL KEEPER PLATE 1 2 1 3 7 0 1 Preventive Maintenance
9 CYLINDER CTRL. BACK UP ROLL KEEPER PLATE 0 1 1 3 5 1 0 Predictive Maintenance
10 CYLINDER CTRL. SPINDLE SUPPORT 1 2 1 2 6 0 1 Preventive Maintenance
11 CYLINDER CTRL. DELIVERY GUIDE 0 4 2 3 9 0 1 Preventive Maintenance
12 CYLINDER CTRL. ENTRY GUIDE 0 4 2 3 9 0 1 Preventive Maintenance
13 CYLINDER CTRL. RETRAC BLOCK 2 4 2 3 11 0 1 Preventive Maintenance
14 CYLINDER CTRL. JACK SUPPORT 1 2 0 1 4 1 0 Predictive Maintenance
15 CYLINDER CTRL. SIDE SHIFT F1-F6 0 1 0 2 3 0 1 Predictive Maintenance
16 CYLINDER CTRL. BACK UP ROLL CHANGE 0 1 0 1 2 0 1 Predictive Maintenance
17 CYLINDER CTRL. LIFTING TABLE 0 1 0 2 3 0 1 Predictive Maintenance
18 CYLINDER CTRL. WORK ROLL CHANGE 0 1 0 2 3 0 1 Predictive Maintenance
19 CYLINDER CTRL. SWIVELING GROUP 0 1 0 1 2 1 0 Predictive Maintenance  
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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Table 18.Hydraulic Hose Maintenance Strategy Calculation Decision Factor 
 
Inspection
Critical Factor
Possibilities
No. Cylinder Maintenance Strategy
Product Duty of
Safety Downtime Score Running Shutdown
quality operation
1 CYLINDER CTRL. COLLECT ING THROUGH 1 1 1 3 6 0 1 Preventive Maintenance
2 CYLINDER CTRL. LO OPER HYDRAULIC L3 1 2 2 3 8 0 1 Preventive Maintenance
3 CYLINDER CTRL. PINCH ROLL 2 1 1 3 7 0 1 Preventive Maintenance
4 CYLINDER CTRL. LIFT ING RAIL 1 2 1 2 6 0 1 Preventive Maintenance
5 CYLINDER CTRL. WORK ROLL SHIFTING 1 2 2 3 8 0 1 Preventive Maintenance
6 CYLINDER CTRL. SPRAYING HEADER 1 1 1 3 6 0 1 Preventive Maintenance
7 CYLINDER CTRL. BACK UP ROLL BALANCE 1 2 2 3 8 0 1 Preventive Maintenance
8 CYLINDER CTRL. WORK ROLL KEEPER PLAT E 1 2 1 3 7 0 1 Preventive Maintenance
9 CYLINDER CTRL. BACK UP ROLL KEEPER PLATE 0 1 1 3 5 1 0 Predictive Maintenance
10 CYLINDER CTRL. SPINDLE SUPPORT 1 2 1 2 6 0 1 Preventive Maintenance
11 CYLINDER CTRL. DELIVERY GUIDE 1 2 2 3 8 0 1 Preventive Maintenance
12 CYLINDER CTRL. ENT RY GUIDE 1 2 2 3 8 0 1 Preventive Maintenance
13 CYLINDER CTRL. RET RAC BLOCK 2 3 2 3 10 0 1 Preventive Maintenance
14 CYLINDER CTRL. JACK SUPPORT 0 1 0 1 2 1 0 Predictive Maintenance
15 CYLINDER CTRL. SIDE SHIFT F1-F6 0 1 0 2 3 0 1 Predictive Maintenance
16 CYLINDER CTRL. BACK UP ROLL CHANGE 0 1 0 1 2 0 1 Predictive Maintenance
17 CYLINDER CTRL. LIFT ING TABLE 0 1 0 2 3 0 1 Predictive Maintenance
18 CYLINDER CTRL. WORK ROLL CHANGE 0 1 0 2 3 0 1 Predictive Maintenance
19 CYLINDER CTRL. SWIVELING GROUP 0 1 0 1  
2 1 0 Predictive Maintenance

 
The  equipment  with  score  of  criticality  factor  more  than  5  means  that  the  risk  and  impact  or 
consequences will occur when the machine breakdown have a big effect to the company productivity 
and  quality.  The  maintenance  strategy  is  preventive  maintenance.  In  opposite  site,  the  equipment 
with score of criticality factor less than equal to 5 (low risk), the maintenance strategy is predictive 
maintenance. 
 
If  there  is  an  equipment  with  low  score  of  criticality  factor,  but  can’t  be  inspected  during  running 
condition, the decision is predictive maintenance strategy because the impact is small. On the other 
hand,  if  there  is  an  equipment  with  high  score  of  criticality  factor,  but  can  be  inspected  during 
running condition, the decision  is  preventive  maintenance  because  the  risk  is too high  compare to 
maintenance cost saving from implementation of predictive maintenance strategy. 
 
Table 19.Yearly Replacement Cost of Hydraulic Cylinder Seals 
(Preventive maintenance strategy) 
 
Cylinder Seal Set
No. Total Cost
Description Qty Size (mm) Price /set
1 CYLINDER CTRL. COLLECTING THROUGH 4 D 50 x 36 Rp 772.601 Rp 3.090.406
2 CYLINDER CTRL. LOOPER HYDRAULIC L3 1 D 100 x 70 Rp 1.287.290 Rp 1.287.290
3 CYLINDER CTRL. PINCH ROLL 4 D 80 x 56 Rp 1.194.373 Rp 4.777.490
4 CYLINDER CTRL. LIFTING RAIL 24 D 125 x 90 Rp 1.181.800 Rp 28.363.200
5 CYLINDER CTRL. WORK ROLL SHIFTING 24 D 180 x 105 Rp 1.478.703 Rp 35.488.880
6 CYLINDER CTRL. SPRAYING HEADER 4 D 63 x 45 Rp 642.955 Rp 2.571.820
7 CYLINDER CTRL. BACK UP ROLL BALANCE 24 D 120 x 90 Rp 1.380.208 Rp 33.124.992
8 CYLINDER CTRL. WORK ROLL KEEPER PLATE 24 D 40 x 28 Rp 632.011 Rp 15.168.264
9 CYLINDER CTRL. SPINDLE SUPPORT 12 D 40 x 28 Rp 632.011 Rp 7.584.132
10 CYLINDER CTRL. DELIVERY GUIDE 6 D 140 x 90 Rp 1.167.058 Rp 7.002.348
11 CYLINDER CTRL. ENTRY GUIDE 6 D 140 x 90 Rp 1.167.058 Rp 7.002.348
12 CYLINDER CTRL. RETRAC BLOCK 6 D 100 x 56 Rp 991.744 Rp 5.950.464
TOTAL 139 TOTAL Rp 151.411.633  
 
 
 
 
 
 
 
 
 

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Table 20.Yearly Replacement Cost of Hydraulic Hose 
(Preventive maintenance strategy) 
 
Ho se le ng th (m tr)
N o. Cylind e r Qty To ta l C o st
f orw ard b a ckwa rd

1 C Y L IN DE R CT RL . C O L LE C TI N G T HR O U G H 4 0, 80 0 ,9 5 Rp 7 8 9. 02 0
2 C Y L IN DE R CT RL . L O O P E R HY D R A UL I C L3 1 1, 00 1 ,2 0 Rp 8 1 9. 99 4
3 C Y L IN DE R CT RL . P IN C H RO L L 4 1, 40 1 ,4 0 Rp 2 .8 8 0. 33 8
4 C Y L IN DE R CT RL . L IFT IN G RA I L 24 1, 00 1 ,0 0 Rp 5 .0 0 4. 19 2
5 C Y L IN DE R CT RL . W O R K R O L L S H IF TI NG 24 1, 20 1 ,4 0 Rp 2 0 .5 5 6. 52 9
6 C Y L IN DE R CT RL . S P R A Y IN G H E A DE R 4 0, 80 0 ,8 0 Rp 7 6 2. 01 3
7 C Y L IN DE R CT RL . B A C K U P RO LL B A LA N C E 24 1, 50 1 ,5 0 Rp 8 .6 8 0. 49 0
8 C Y L IN DE R CT RL . W O R K R O L L K E E P E R P L A T E 24 0, 70 1 ,0 0 Rp 4 .6 8 0. 10 6
9 C Y L IN DE R CT RL . S P I ND L E S U P P O R T 12 1, 00 1 ,0 0 Rp 2 .5 0 2. 09 6
10 C Y L IN DE R CT RL . D E LI V E R Y G UI DE 6 1, 10 1 ,3 0 Rp 5 .0 2 9. 54 9
11 C Y L IN DE R CT RL . E N TR Y G UI DE 6 1, 30 1 ,5 0 Rp 5 .2 4 8. 71 5
12 C Y L IN DE R CT RL . R E TR A C B L O C K 6 1, 50 1 ,5 0 Rp 2 .1 7 0. 12 3

TO TA L 139 Rp 5 9 .1 2 3. 16 6  
 
Table 21.Replacement Cost of Hydraulic Cylinder Seals 
(Predictive maintenance strategy) 
 
Cylinder Seal Set
No. Total Cost
Description Qty Size (mm) Price /set
1 CYLINDER CTRL. BACK UP ROLL KEEPER PLATE 24 D 40 x 28 Rp 632.011 Rp 15.168.264
2 CYLINDER CTRL. JACK SUPPORT 12 D 80 x 45 Rp 1.081.415 Rp 12.976.976
3 CYLINDER CTRL. SIDE SHIFT F1-F6 1 D 250 x 180 Rp 2.613.789 Rp 2.613.789
4 CYLINDER CTRL. BACK UP ROLL CHANGE 6 D 320 x 220 Rp 2.709.000 Rp 16.254.000
5 CYLINDER CTRL. LIFTING TABLE 5 D 225 x 140 Rp 1.858.375 Rp 9.291.874
6 CYLINDER CTRL. WORK ROLL CHANGE 6 D 200 x 140 Rp 1.634.526 Rp 9.807.156
7 CYLINDER CTRL. SWIVELING GROUP 10 D 140 x 90 Rp 1.167.058 Rp 11.670.580
TOTAL 64 TOTAL Rp 77.782.639  
 
Table 22.Replacement Cost of Hydraulic Hose 
(Predictive maintenance strategy) 
 
Hose length (mtr)
No. Cylinder Qty Total Cost
forward backward

1 CYLINDER CTRL. BACK UP ROLL KEEPER PLATE 24 0,80 0,80 Rp 4.572.077

2 CYLINDER CTRL. JACK SUPPORT 12 1,10 1,10 Rp 7.891.380
3 CYLINDER CTRL. SIDE SHIFT F1-F6 1 1,20 1,50 Rp 709.673
4 CYLINDER CTRL. BACK UP ROLL CHANGE 6 1,40 2,20 Rp 8.537.471
5 CYLINDER CTRL. LIFTING TABLE 5 1,40 1,40 Rp 6.390.171
6 CYLINDER CTRL. WORK ROLL CHANGE 6 1,00 1,60 Rp 4.195.568
7 CYLINDER CTRL. SWIVELING GROUP 10 1,00 1,50 Rp 3.269.966

TOTAL 64   Rp 35.566.305

 
 
Total  cost  for  preventive  maintenance  strategy  for  hydraulic  cylinder  seal  and  hose  is  Rp 
210.534.799,‐ is less than lubricant cost from table 10 Rp 255.964.411,‐ therefore implementation of 
preventive maintenance strategy for 139 hydraulic cylinder seals and hoses is recommended. Total 
replacement cost for predictive maintenance strategy is Rp 113.348.944,‐. According to hot strip mill 
hydraulic  maintenance  supervisor:  “the  life  time  of  hydraulic  cylinder  seals  and  hydraulic  hoses  for 
predictive  maintenance  strategy  is  more  than  2  years”  (Iswandi,  by  phone  interview,  18/1/2013), 
therefore total replacement cost for implementation of predictive maintenance strategy yearly is Rp 
56.674.472,‐  less  than  the  cost  saving  from  table  10  is  Rp  99.082.998,‐.  The  implementation  of 
predictive maintenance strategy for 64 hydraulic cylinder seals and hoses is recommended. 
 
 
 
 

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4. Conclusion and Implementation Plan  

A. Conclusion 
The total cost for implementation of combination preventive and predictive maintenance strategy is: 
Preventive maintenance total cost     : Rp   210.534.799 
Predictive maintenance total cost     : Rp     56.674.472 
Combination maintenance total cost: Rp   267.209.271 
The total lubricant cost saving is: 
Preventive maintenance cost saving    : Rp   255.964.411 
Predictive maintenance cost saving     : Rp     99.082.998 
Combination maintenance cost saving: Rp   355.047.409 
The company will save money and increase income yearly by: 
Combination maintenance cost saving: Rp   355.047.409 
Combination maintenance total cost    : Rp   267.209.271 
Company cost saving                   : Rp     87.838.138 
B. Implementation Plan 
INITIATIVE
a. Creating new job ticket
b. Editing existing job ticket
c. Main out put: - List of spare part needed
- Budget proposal
- Workforce requirement
- Time alocation

REVIEW
Combination of Preventive
and Predictive
a. Job ticket execution percentage
b. Oil consumption cost comparison Maintenance Strategy to
c. Job ticket revision necessity Reduce Oil Leakage on
Hydraulic System
BUILD
a. Input the job ticket to the company
integrated information system (SAP)
b. Spare part procurement process
c. Budget approval
d. Workforce fulfil scenario
e. Time scheduling

IMPLEMENTATION
Job ticket execution on field
Main preconditions:
a. Detail job instructions
c. Spare part availability
d. Well trained workforce
e. Time availability
 
Figure 4.Stage to build combination of preventive and predictive maintenance strategy 
 
Initiative Stage is divided into two main activities and consist of: creating new job ticket and editing 
existing job ticket. To creating and editing job ticket should be done by experienced worker at least 
engineer  level  to  get  the  comprehensive  job  ticket  which  is  including  the  spare  part  needed, 
workforce  and  time  to  do  the  job.  Build  Stage  is  entering  the  data  of  approved  new  job  ticket  or 
edited  job  ticket  by  mechanical  maintenance  department  head  to  the  company  integrated 
information  system  SAP.  The  data  is  consisting  of:  job  instruction,  spare  part,  workforce,  tool  and 
time needed. 
 
Implementation  Stage  is  execution  of  all  maintenance  instruction  in  the  job  ticket  after  all  of 
necessary  think  to  do  the  maintenance  job  is  available.  The  execution  of  maintenance  job  can  be 
done during equipment is in normal operation or do it when equipment is shut down. The end result 
of  this  stage  is  depending  on:  detail  job  instruction,  workforce  skill  level,  spare  part  and  time 
availability.  Review  Stage.  In  order  to  know  the  effectiveness  of  preventive  and  predictive 
maintenance strategy implementation, it is necessary to do a review in the following items such as: 
job ticket execution percentage, oil consumption cost comparison and job ticket revision necessity.

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 Suwarto and Yudoko  /  The Indonesian Journal of Business Administration, Vol.2, No.15, 2013:1864‐1879

Table 23.Time Schedule 
 
Time Schedule
Activity
Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
Initiative stage
Build stage
Implementation stage
Review stage  
 
Table 24. Activity Matrix 
 
Activity Person in charge Related department/division Remark

Initiative stage
Creating new job ticket
Editing existing job ticket
Build stage
Input job ticket to company
integrated information system
Spare part procurement process
Budget approval
Workforce fulfil scenario
Time scheduling
Implementation stage
Job ticket execution on filed
Review stage
Job ticket execution percentage
Oil consumption cost comparison
Job ticket revision necessity
References 
Maintenance engineer Mech. Maint. Depart. Main out put:
Maintenance engineer Maint. Plan.& Ctrl. Depart. List of spare part needed
Budget proposal
Workforce requirement
Time alocation
Maintenance Planner Maint. Plan.& Ctrl. Depart.
Buyer Purchasing department
Mech. Maint. Depart.head Plant accounting
Maintenance Planner Central maint. Depart
Scheduler Production department
Mech. Maint. Depart. Central maint. Depart Main preconditions:
Production department Detail job instruction
Maint. Plan.& Ctrl. Depart. Spare part availability
Warehousing division Well trained workforce
Time availability
Maintenance Planner Mech. Maint. Depart.
Mech. Maint. Depart. Plant accounting
Maintenance engineer Mech. Maint. Depart.  

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