Maintenance Management

Strategy
May 18, 2015

Maintenance Management Objective

Maintenance
Management

Minimize Maintenance & Repair Costs

Maximize Production & Profit

Your Maintenance Management Activity

Maintenance
Management

Do You Know In Detail Your Equipment Operating Costs ?

If You Dont, You Cant Control Them !

If You Cant Control Your Costs

They Will Be Significantly Higher Than If You Could !

Are Your Scheduling Maintenance And Repairs Effectively ?

If You Are Not Repairing Before Failure You Are Incurring Greater
Operating Expense & Downtime !
What You Dont Repair, You Break !

Do You Recognize The Strengths & Weaknesses

Operation ?
If You Dont Then You Cant Outsource Effectively !

In Your Support

Key Profit Factors

Maintenance
Management

Productivity
2.5 - 4.5

Availability
1.75 - 3.5

Operating Costs
1.5 - 3.45

Utilization
1.6 - 2.8

Resale Value
0.9 - 1.6

Interest Rates
0.8 - 1.35

Selling Price
0.5 - 0.9

0%
0
Source: Ownership Costs EIA

20%
1

40%
2

60%
3

80%
4

100%
5

Percentage That Profit Can Be Influenced

By

Profit Factors Related to Maintenance

Maintenance
Management

Change Of 1 % Point

Impact On Profit

Availability

1.75 - 3.50 %

Operating Costs

1.50 - 3.45 %

Utilization

1.60 - 2.80 %

Productivity
Resale Value

2.50 - 4.50 %
0.90 - 1.60 %

Total Effect

8.25 - 15.85 %

Source Cat Equipment Investment Analysis PC Software Case Study

High Powered Dollars

Maintenance
Management

$100 Production Increase Yields $10 Profit

$100 Reduction In Repairs Yields $100 Profit
A $10 Operating Cost Control Generates The Same
Bottom Line Profit as a $100 Increase In Production

Maintenance Management Objective

Maintenance
Management

Maintenance Management Seminar

M.M.S.
M.M. $
Make More Money !

The Importance Of Maintenance

Maintenance
Management

Greatest impact on profits

Helps control costs
Controls service intervals
Lengthens equipment life
Minimizes downtime
Adds resale value

Maintenance Management Subjects

Maintenance
Management

Repair Before Failure

Maintenance Control &
Planning
Condition Monitoring
Inspections and Tools
Lubricants
Workshop Practices

Maintenance Management
System Maintenance
Failure Analysis
Repair Management
Future of Maintenance
Customer Support
Agreements

Equipment Management Plan

Maintenance
Management

Resources

Condition
Monitoring
System

Component
R&I

PM
Services

Scheduling
System

Component
Overhaul

Cost/Record
System

Problem
Management

Parts
Management

Equipment Maintenance Elements

Maintenance
Management

Managing
Maintenance
Condition Monitoring
Maintenance & Repair
Practice
System Maintenance
Management

Preventive Maintenance
Maintenance
Management

Saves you money

Helps you plan
downtime
Maximizes
equipment life
Increases resale
value

Condition Monitoring - Fluid Analysis

Maintenance
Management

Understanding the SOS Oil Analysis Tests

Wear Rate
Oil Condition
Oil Cleanliness
Water, fuel and glycol tests

Trend analysis
Expert interpretation of data & Meaningful
advice and suggestions

We
We
We
We
We

know Cat equipment better than anyone

have vested interest in your success
get information to you fast
help find right solutions
keep records on your machine

Condition Monitoring - Inspections

Maintenance
Management

Locate potential &

overlooked problems
Customized checklists
Technical analysis - Two
levels
Written condition reports
Repair recommendations
Repair price quotes

Schedule maintenance
and repairs
Plan control costs and
downtime

Repair Management Guidance

Maintenance
Management

Reduce major failures

Reduce failure of
related parts
Parts Reusability
Scheduling downtime
Cost savings
Before-failure repair
options

Repair Cost Comparison

Maintenance
Management

Cat 966F with 3306 DIT Engine

using Cat Reman

Record Keeping & Control Systems

Maintenance
Management

Provides documented
machine history
We can provide:
PC Windows Based
Control System
Time/cost record booklets
Manual work order
systems
PC Windows Based
Preventive Maintenance
Planner

PC - Maintenance Control Systems

Maintenance
Management

Track all elements of your maintenance program

Be alerted when service, inspections, and repairs
are needed
Predict labor and parts needs for a repair
See when work was completed
Keep detailed cost records by machine and
component

Example Of Operating Costs

Maintenance
Management

Mid Size Wheel Loader

Repairs 27%
Operator
28%

Fuel 24%

Oil/Filters 3%
Tires 12%
Wear Items 6%

Scheduling or Maintenance Planning

Maintenance
Management

Ensures work is performed on time - Prevents failure

Consolidates or Itemizes Checklists
Customized checklists
Feedback on maintenance timeliness
We can provide:

System review
Lube and maintenance guides
Time/cost record booklets
Record keeping/control system
Manual work order system
Software programs

Customer Training
Maintenance
Management

Helps you lower costs

We can offer:

Meetings and seminars

Individual or group instruction
Range Of Materials
Routine maintenance training
Operation/maintenance training
Experienced instructors
Customized Training Programs
Maintenance Management
Seminars

Customer Support Agreements Spectrum

Maintenance
Management

Any arrangement between

customer and dealer -preferably before a sale
That Lowers And Fixes
Operating Costs
Helps improve Availability &
Basic
Performance
Suppor
t
Service
Machine Condition
and/or
monitoring
parts
supply
guarantee Custom Hydraulic Service
Custom Track Service
SOS Fluid Analysis
Technical Analysis
Inspections

Comprehensive
Support
Maintenance
Support

Total Cost
Performance
Guarantee

Preventive
Maintenance
Agreement

Repair and
Maintenance
Agreement

Customer Support Agreements

Maintenance
Management

Customer
benefits
Productivity
Gain
Improved
Availability
Lower & Fixed
Operating costs
Increased resale
value

Maintenance Policies
Maintenance
Management

Ground rules established by management to

implement effective procedures & processes. They
are the basic day to day procedures for your staff
as they provide or obtain services.
Maintenance is done to ensure the safe, effective
operation of equipment so that production targets
can be met on time and at least cost.

Maintenance Overview
Maintenance
Management

Maintenance is a large controllable cost up to 35% of

operating costs
Labor management, efficiency & utilization is crucial
Planning critical
Planning requires a quality PM program
Cost of Maintenance must be driven down by using less
people and doing repairs less often. Fewer people means
downsizing and efficiency, reducing repairs means
improving the maintenance program.
Maintenance Supervisors are the drivers, educate train
and empower
Recognize Your Weaknesses And Outsource Appropriately

Maintenance
Management

A Suggested Approach !
Maintenance
Management

Set Your Maintenance Objective

Ensure That Your organization Can Fully Support The
objective
Establish Policy & Procedures To Guide Your Business
Define How maintenance services are requested, planned,
scheduled, assigned and controlled.
Define and publish terminology used in maintenance.
Establish a responsive organization.
Establish an effective work order system
Ensure the information system supports essential
information needs.
Conduct effective preventive maintenance services

A Suggested Approach !
Maintenance
Management

Schedule major jobs and services

Apply standards in planning.
Require first line maintenance supervisors to develop and
follow a daily work plan.
Measure the work load to determine the work force size
and composition accurately
Control Labor.
Ensure quality material support
Train supervisors, staff personnel and craftsmen.
Educate operations, staff departments and management
on the total maintenance program.
Measure performance on a regular

Defining Your Maintenance Program

Maintenance
Management

The program spells out how maintenance work is

requested and thereafter, planned, scheduled,
assigned, controlled and measured

Preventive maintenance
Component replacement
Planning and scheduling
Using the work order system
Utilizing information

Maintenance Staff Function

Maintenance
Management

The duties of key maintenance personnel as well as

craftsmen are explained as they go about

Planning
Assigning work
Scheduling
Controlling and performing work
Measuring performance

Interaction Of Maintenance & Production

Staff
Maintenance
Management

The interaction with operations and staff personnel

should be portrayed as they:

Request maintenance help

Issue stock materials
Obtain purchased materials
Participate in scheduling and coordination meetings

Linkages With Other Systems

Maintenance
Management

Linkages with other systems should describe how:

Field data is converted into information

Stock materials are issued
Purchasing carried out its functions
Component rebuilding is managed
Production statistics are obtained and used
Payroll uses labor data to generate labor information
The accounting system functions

This Will Help To

Maintenance
Management

Consolidate program details

Facilitate the education of all personnel
Keep program definition simple
Encourage participation during the education
phase
Assure that all personnel can grasp the details
Modify the diagram easily
Encourage suggestions
Have a program in everyones hip pocket

Changing Your Maintenance Management

Program
Maintenance
Management

Education
Let people know what the changes are and how they will be affected

Participation
If you give personnel an opportunity to think through the changes and
make alternate proposals they will get the job done.

Time
Give people an opportunity to absorb the changes.

Security
Change will not be successful unless both salaried and hourly personnel
are assured that their jobs, thus, their economic security will remain
intact.