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Chapter 4:

Maintenance and
Reliability

Strategic Importance of Maintenance and

Reliability (1 of 2)

The objective of maintenance and reliability is to

maintain the capability of the system

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Strategic Importance of Maintenance and

Reliability (2 of 2)

• Failure has far-reaching effects on a firm’s

– Operation
– Profitability
– Reputation
– Customer satisfaction
– Idle time reduction efforts
– Ability to protect investment in plant and equipment
– Ability to provide a safe workplace and impact the
environment responsibly

Maintenance and Reliability

• Maintenance is all activities involved in keeping a

system's equipment in working order
• Reliability is the probability that a machine part or product
will function properly for a specified time

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Important Tactics

• Reliability
1. Implementing or improving preventive
maintenance
2. Increasing repair capability or speed

• Maintenance
1. Improving individual components
2. Providing redundancy

Maintenance Management
Good Maintenance and Reliability Management Requires
Employee Involvement and Good Procedures

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Reliability
• System reliability Rs

• Improving individual components

• Assuming independent components, system reliability
equals:
Rs = R1  R2  R3  … Rn

where
R1 = reliability of component 1
R2 = reliability of component 2
and so on

Overall System Reliability

Overall System Reliability as a Function of Number of n
Components (Each with the Same Reliability) and
Component Reliability with Components in a Series

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Reliability Example

Reliability of the process is

Rs = R1  R2  R3 = .90  .80  .99 = .713or 71.3%

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Product Failure Rate (FR)

Basic unit of measure for reliability

Number of failures
FR ( % ) =  100%
Number of units tested

Number of failures
FR(N ) =
Number of unit - hours of operating time

Mean time between failures

1
MTBF =
FR(N )

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Failure Rate Example (1 of 2)

20 air conditioning units for use in a Soyuz spacecraft

operated for 1,000 hours
One failed after 200 hours and one after 600 hours

2
FR ( % ) = (100% ) = 10%
20

2
FR(N ) = = .000106 failure / unit hr
20,000 − 1, 200

1
MTBF = = 9,434 hrs
.000106

Failure Rate Example (2 of 2)

Failure rate per trip

FR = FR(N )(24 hrs)(6 days / trip)

FR = (.000106)(24)(6)
FR = .0153 failure / trip

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Providing Redundancy

Provide backup components to increase reliability

 Probability of   Probability   Probability of  

     
 first    of second   needing  
RS = + 
 component   component   second  
     
 working   working   component  

= (.8 ) + [(.75)  (1 − .8)]

= .8 + .15 = .95

Redundancy Example
A redundant process is installed to support the
earlier example where Rs = .713

Reliability has
increased from
.713 to .94

RS = [.9 + .9(1 − .9)]  [.8 + .8(1 − .8)]  .99

= [.9 + (.9)(.1)]  [.8 + (.8)(.2)]  .99
= .99  .96  .99 = .94

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Parallel Redundancy

Increased reliability
through parallel
redundancy

Reliability for the = R2  R3 = .975  .975 = .9506

middle path

Probability of failure = (1 – 0.95 )  (1 – .9506 )  (1 – 0.95 )

for all 3 paths = (.05 )  (.0494 )  (.05 ) = .00012

Reliability of new design = 1 – .00012 = .99988

Maintenance

• Two types of maintenance

– Preventive maintenance – routine inspection and
servicing to keep facilities in good repair
– Breakdown maintenance – emergency or priority
repairs on failed equipment

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Implementing Preventive Maintenance

• Need to know when a system requires service or is likely

to fail
• High initial failure rates are known as infant mortality
• Once a product settles in, MTBF generally follows a
normal distribution
• Good reporting and record keeping can aid the decision
on when preventive maintenance should be performed

Computerized Maintenance System

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Maintenance Costs

• The traditional view attempted to balance preventive and

breakdown maintenance costs
• Typically this approach failed to consider the full costs of
a breakdown
– Inventory
– Employee morale
– Schedule unreliability

Maintenance Costs (1 of 2)

(a) Traditional View of Maintenance

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Maintenance Costs (2 of 2)

(b) Full Cost View of Maintenance

Maintenance Cost Example (1 of 4)

• Should the firm contract for maintenance on their

printers?

NUMBER OF NUMBER OF MONTHS

BREAKDOWNS THAT BREAKDOWNS
OCCURRED
0 2
1 8
2 6
3 4
Total : 20

Average cost of breakdown = $300

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Maintenance Cost Example (2 of 4)

1. Compute the expected number of breakdowns

NUMBER OF FREQUENCY NUMBER OF FREQUENCY
BREAKDOWNS BREAKDOWNS
2 6
0 2 divided =by.120 = 0.1 2 6 divided =by
.320 = 0.3
20 20
8 4
1 = .420 = 0.4
8 divided by 3 = .220 = 0.2
4 divided by
20 20

 Expected number   Number of   Corresponding  

  =   breakdowns  ×  frequency 
 of breakdowns     
= (0)(.1) + (1)(.4) + (2)(.3) + (3)(.2)
= 0 + .4 + .6 + .6
= 1.6 breakdowns / month

Maintenance Cost Example (3 of 4)

2. Compute the expected breakdown cost per month with

no preventive maintenance

 Expected   Expected number   Cost per 

  =   ×  
 breakdown cost   of breakdowns   breakdown 

= (1.6 )( $300 )
= $480 per month

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Maintenance Cost Example (4 of 4)

3. Compute the cost of preventive maintenance

 Cost of expected 
 
 Preventive   breakdowns if   Cost of 
  =  +  
 maintenance cost  service contract   service contract 
 
 signed 

= (1 breakdown / month )( $300 ) + $150 / month

= $450 / month

Hire the service firm; it is less expensive

Increasing Repair Capabilities (1 of 2)

1. Well-trained personnel
2. Adequate resources
3. Ability to establish repair plan and priorities
4. Ability and authority to do material planning
5. Ability to identify the cause of breakdowns
6. Ability to design ways to extend MTBF

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Increasing Repair Capabilities (2 of 2)

The Operations Manager Determines How Maintenance

Will Be Performed

Autonomous Maintenance

• Employees accept responsibility for

– Observe
– Check
– Adjust
– Clean
– Notify
• Predict failures, prevent breakdowns, prolong equipment
life

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Total Productive Maintenance (TPM) (1 of 2)

• Designing machines that are reliable, easy to operate,

and easy to maintain
• Emphasizing total cost of ownership when purchasing
machines, so that service and maintenance are included
in the cost

Total Productive Maintenance (TPM) (2 of 2)

• Developing preventive maintenance plans that utilize the

best practices of operators, maintenance departments,
and depot service
• Training for autonomous maintenance so operators
maintain their own machines and partner with
maintenance personnel

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Maintenance Strategy Comparison

Resources/
Maintenance Technology Application
Strategy Advantages Disadvantages Required Example
Disruption of May need
No prior work
Breakdown production, injury or labor/parts at odd Office copier
required
death hours

Labor cost, may Need to obtain Plant relamping,

Work can be
Preventive replace healthy labor/parts for machine
scheduled
components repairs lubrication

Impending Labor costs, costs Vibration, IR

Vibration and oil
failures can be for detection analysis equipment
Predictive analysis of a
detected & work equipment and or purchased
large gearbox
scheduled services services

Maintenance Strategy Implementation

Percentage of Maintenance Time by Strategy

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