MSG Team's other articles

13043 Customs Department – An Introduction

International Trade is facilitated and controlled by Countries with the help of Foreign Policy, Export Import Regulations, Schedule and Tariff of Import and Export Duties as well as Trade Laws and Regulations. Customs Department is the Federal Government Agency that is invested with Authority to conduct Customs Valuation and collect Import as well as Export […]

12131 Inventory Management Systems

Modern day inventory is managed by sophisticated system applications that are designed to manage complex inventory plans and to a large extent contain processes that initiate and streamline the operations and inventory management. In the wake of improvements in the communication technology, companies are deploying one single ERP system across all factories, offices, departments and […]

10408 Are Multinational Companies a Boon or a Bane?

The economic power that many multinational companies wield is commendable, to say the least. Companies like Amazon and Apple have a valuation of over a trillion dollars. This is more than the GDP of most countries! Hence, in purely financial terms, multinational companies do wield tremendous influence on the day to day operations of many […]

9575 How Central Bankers and Policymakers are Losing Control of the Global Economy

The US Fed and Tapering of Quantitative Easing (QE) The recent announcement that the United States Federal Reserve was thinking of tapering the Quantitative Easing program or QE immediately spooked the stock markets, which went into free fall. Mind you, this was not the actual tapering off the program but just a line of thought. […]

9190 The Equifax Data Breach Scandal

The credit rating business in America is largely an oligopoly. It is run by three major companies, Equifax, TransUnion, and Experian. Each of these corporations contains a massive amount of data regarding sensitive financial information about millions of people. They need to have systems in place to protect this data and ensure that it does […]

Search with tags

  • No tags available.

Introduction

Plant and machinery in the initial days always perform to their fullest capacity but as time goes with regular wear and tear, this becomes increasingly difficult. If proper and regular maintenance is undertaken than production capacity can be maintained at a more or less same level.

Maintenance also requires replacement decisions. Replacement is a substitution of existing fixed asset with a new asset, which may enhance features capable of performing similar function. The need for replacement may arise because of normal use, obsolescence, early service failure, destruction, etc.

Maintenance

Maintenance is defined as a process in which working condition of plant or machinery is maintained at the optimum level as to give maximum output. Maintenance is done through repair, partial replacement and total replacement. Following is the significance of the maintenance policy:

  • Maintenance policy ensures that equipments are always in ready and reliable condition. This ensures company is able respond to any sudden change in demand.

  • Maintenance policy ensures that equipments are always calibrated to provide good-quality products and competitive advantage. This ensures that there are no sudden and frequent breakdowns and reduce production of defective products.

  • Maintenance policy ensures that there are no major breakdowns. This ensures there is no lose of inventory or market share for companies following JIT philosophy.

  • Maintenance policy ensures that costs are always controlled.

  • Maintenance policy is particularly important in capital-intensive industries.

If organizations are not able to implement an effective maintenance policy than it can result in the following results:

  • Full capacity utilization may not be achieved.
  • Increase in production cost as fixed labor cost cannot be reduced.
  • Increase in maintenance cost as more spare parts are required.
  • Reduction in product quality and increase in wastage.
  • Safety of workers and operators in jeopardy.

Maintenance Management

Maintenance management is process where available resources are regulated in a manner that plant and machinery can perform at specific levels. Maintenance management involves planning, scheduling and execution of maintenance-related activities. The main objectives of the maintenance management are as follows:

  • Minimum level of production loss and minimum incidence of breakdown.
  • Minimum level of wastage.
  • Optimum usage of maintenance equipment and personnel.
  • Quality of product is improved.

Planning and Scheduling

The maintenance department is responsible with planning and scheduling of maintenance in line with the requirement and expectation of the organization. Planning and scheduling needs to ensure that business as usual is not disturbed.

The following are key points to plan maintenance:

  • Identify the equipment for maintenance and technique for maintenance.
  • Categorize maintenance into routine, priority and emergency.
  • Plan maintenance considering cost, time, space etc
  • Material planning for maintenance requirements.
  • Budget time and money requirements.

The need to schedule maintenance can be best described as follows:

  • To optimize usage of plant, machinery and tools.
  • To optimize usage of manpower in maintenance.
  • To ensure smooth production flow.

From above it can safely be concluded that it is very critical for company to have a robust and effective maintenance and repair policy.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

Capacity Planning – Meaning, Classification and its Goals

MSG Team

What is Aggregate Planning? – Importance and its Strategies

MSG Team

Operational Transparency

MSG Team