UNIT - IV

SEMESTER - II

Strategic Importance of Maintenance and Reliability

Failure has far reaching effects on a firms
Operation Reputation Profitability Dissatisfied customers Idle employees Profits becoming losses Reduced value of investment in plant and equipment

Equipment Malfunctions have a direct impact on:

Production capacity Production costs Product and service quality Employee or customer safety Customer satisfaction

Maintenance and Reliability

Objective:

To maintain the capability of the system while controlling costs

Maintenance is all activities involved in keeping a systems equipment in working order

Reliability is the probability that a machine will function properly for a specified time

Important Tactics
Maintenance

1.
2. 3.

Implementing or improving preventive maintenance

Increasing repair capability or speed Measured by MTTR (Mean Time to Repair) Improving individual components Providing redundancy

Reliability 1. 2.

3.

Measured by MTBF (Mean Time Between Failures)

Approaches to Improving Machine Reliability

Overdesign - enhancing the machine design to avoid a particular type of failure Design simplification - reducing the number of interacting parts in a machine

Redundant components - building backup components right into the machine so that if one part fails, its automatically substituted

Reliability
Improving individual components

Rs = R1 x R 2 x R3 x x Rn
where R1 = reliability of component 1 R2 = reliability of component 2 and so on

Reliability Example

R1
.90

R2
.80

R3
.99

Rs

Reliability of the process is

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

Overall System Reliability

100

Reliability of the system (percent)

80 60 40 20 0 | 100

99

98

97

96

Average reliability of each component (percent)

Product Failure Rate (FR)

Basic unit of measure for reliability

FR(%) =

Number of failures Number of units tested

x 100%

FR(N) =

Number of failures Number of unit-hours of operating time

1 FR(N)

Mean time between failures

MTBF =

Providing Redundancy
Provide backup components to increase reliability

Probability of first component + working

Probability of second component working

Probability of needing second component

Two types of maintenance

M ai ntenance

1. Preventive maintenance routine inspection and servicing to keep facilities in good repair 2. Breakdown maintenance emergency or priority repairs on failed equipment
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
Good reporting and record keeping can aid the decision on when preventive maintenance should be performed

How Maintenance is Performed

Operator Maintenance department Manufacturers field service Depot service (return equipment)

Competence is higher as we move to the right Preventive maintenance costs less and is faster the more we move to the left

Maintenance Activities
Repairs Repair activities are reactive. Breakdowns and malfunctions typically occur when equipment is in use. Standby machines and parts can speed repairs.

Preventive Maintenance (PM) Regularly scheduled inspections are performed. PM activities are performed before equipment fails. PM is usually performed during idle periods.

Maintenance Strategy

Employee Involvement
Information sharing Skill training Reward system Employee empowerment

Results
Reduced inventory Improved quality Improved capacity Reputation for quality Continuous improvement Reduced variability

Maintenance and Reliability Procedures

Clean and lubricate Monitor and adjust Make minor repair Keep computerized records

Computerized Maintenance System

Data Files
Equipment file with parts list

Output Reports
Inventory and purchasing reports

Maintenance and work order schedule Repair history file

Data entry Work requests Purchase requests Time reporting Contract work

Equipment parts list

Equipment history reports

Cost analysis (Actual vs. standard)

Inventory of spare parts

Personnel data with skills, wages, etc.

Work orders Preventive maintenance Scheduled downtime Emergency maintenance

Maintenance Costs
To balance preventive and breakdown maintenance costs

Total costs

Costs

Preventive maintenance costs

Breakdown maintenance costs

Maintenance commitment
Optimal point (lowest cost maintenance policy) Traditional View

How Speedy Should Repairs Be?

Cost ($) Minimum Total Cost of Repairs

Total Costs of Repairs

Cost of Repair Crews & Shops, Spare Parts, and Standby Machines

Cost of Interruptions to Production 0

Slow Speed of Making Repairs Fast

Increasing Repair Capabilities

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

Establishing Maintenance Policies

Simulation

Computer analysis of complex situations Model maintenance programs before they are implemented Physical models can also be used
Computers help users identify problems and select course of action

Expert systems

Total Productive Maintenance (TPM)

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 Developing preventive maintenance plans that utilize the best practices of operators, maintenance departments, and depot service
Training workers to operate and maintain their own machines

Secondary Maintenance Responsibilities

Housekeeping, grounds keeping New construction, remodeling Painting Security, loss prevention Pollution control Waste recycling Safety equipment maintenance Public hazard control

Trends in Maintenance

Production machinery is becoming more and more complex and maintenance personnel must keep pace Special training programs to maintain worker skill level Subcontracting service companies Production workers maintain own equipment Computer assistance in maintenance

Computer Assistance in Maintenance

Scheduling maintenance projects Maintenance cost reports by production department, cost category, and other classifications Inventory status reports for maintenance parts and supplies Parts failure data Operations analysis studies

Maintenance Issues in Service Organizations

Maintenance issues are not limited to manufacturing Transportation firms (airlines, trucking companies, package delivery services, railroads) must keep their vehicles in top operating condition Highway departments must maintain roadways Office personnel are reliant on copiers, printers, computers, and fax machines working properly As services become increasingly automated, service firms face more and more maintenance issues

What is quality? Quality, simplistically, means that a product should meet its specification.
Quality is the ability of a product or service to consistently meet or exceed customer expectations.

At a Time and over a period of time. Quality is fitness for use (Joseph Juran) Quality is conformance to requirements (Philip B. Crosby)

Determinants of Quality

Design

Ease of use

Conforms to design

Service

Quality management activities

Quality assurance Establish organisational procedures and standards for quality. Quality planning Select applicable procedures and standards for a particular project and modify these as required. Quality control Ensure that procedures and standards are followed by the software development team.

Dimensions of Quality
Performance - main characteristics of the product/service Aesthetics - appearance, feel, smell, taste
Special Features - extra characteristics Conformance - how well product/service conforms to customers expectations

Reliability - consistency of performance Durability - useful life of the product/service Perceived Quality - indirect evaluation of quality (e.g. reputation) Serviceability - service after sale

Service Quality
Tangibles Convenience Reliability

Responsiveness Time Assurance Courtesy

Dimension
1. Tangibles 2. Convenience 3. Reliability

Examples
Were the facilities clean, personnel neat? Was the service center conveniently located? Was the problem fixed?

4. Responsiveness
5. Time 6. Assurance

Were customer service personnel willing and able to answer questions?

How long did the customer wait? Did the customer service personnel seem knowledgeable about the repair?

7. Courtesy

Were customer service personnel and the cashier friendly and courteous?

The Consequences of Poor Quality

Loss of business Liability Productivity Costs

Quality plans
Quality plan structure Product introduction; Product plans; Process descriptions; Quality goals; Risks and risk management. Quality plans should be short, succinct documents If they are too long, no-one will read them.

Responsibility for Quality

Top management Design Procurement Production/operations Quality assurance Packaging and shipping Marketing and sales Customer service

Quality reviews

A group of people carefully examine part or all of a software system and its associated documentation. Code, designs, specifications, test plans, standards, etc. can all be reviewed. Software or documents may be 'signed off' at a review which signifies that progress to the next development stage has been approved by management.

Evolution of Quality Management

1924 1930 1940s 1950s 1960s 1970s

Statistical process control charts Tables for acceptance sampling Statistical sampling techniques Quality assurance/TQC Zero defects Quality assurance in services

Costs of Quality
Failure Costs - costs incurred by defective parts/products or faulty services.
Internal Failure Costs

Costs incurred to fix problems that are detected before the product/service is delivered to the customer.

External Failure Costs

All costs incurred to fix problems that are detected after the product/service is delivered to the customer. Costs of activities designed to ensure quality or uncover defects
All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring

Appraisal Costs

Prevention Costs

Costs of Quality
Cost of Poor Quality Category Examples
Failure Costs Internal Re-shipping Unnecessary Travel Time Re-picking/Picking Unpacking/Storing Returns Re-order Time Crediting Time Failure Costs External Loss of Sales Complaints Returns Warranty Claims Prevention Costs Quality Administration Quality Planning Quality Systems Design Calibration and Maintenance Production/Inspection Equipment Vendor Assessment Quality Training Appraisal Costs Incoming Test and Inspection In-Process Inspection Final Inspection Sampling Procedures Quality Audits

Quality assurance and standards

Standards are the key to effective quality management. They may be international, national, organizational or project standards. Product standards define characteristics that all components should exhibit e.g. a common programming style. Process standards define how the software process should be enacted.

Importance of standards
Encapsulation of best practice- avoids repetition of past mistakes. Framework for quality assurance processes - they involve checking compliance to standards. Provides continuity - new staff can understand the organisation by understanding the standards that are used.

Problems with standards

They may not be seen as relevant and up-to-date by software engineers. They often involve too much bureaucratic form filling. If they are unsupported by software tools, tedious manual work is often involved to maintain the documentation associated with the standards.

Malcolm Baldrige National Quality Award

1.0 Leadership (125 points) 2.0 Strategic Planning (85 points)

The Deming Prize

Honoring W. Edwards Deming

3.0 Customer and Market Focus (85 points) 4.0 Information and Analysis (85 points) 5.0 Human Resource Focus (85 points)
6.0 Process Management (85 points) 7.0 Business Results (450 points)

Japans highly coveted award Main focus on statistical quality control

Continuous Improvement
Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs. Kaizen: Japanese word for continuous improvement.

Standards
International Organization for Standardization (ISO) - mission is to promote the development of standardized products to facilitate trade and cooperation across national borders. Representatives from more than 146 nations. ISO 9000 series of standards sets requirements for quality processes. Nearly half a million ISO 9000 certificates have been awarded to companies around the world.
ISO 14000 series also sets standards for operations that minimize harm to the environment.

 ISO 9000

ISO Standards

Set of international standards on quality management and quality assurance, critical to international business Series of standards agreed upon by the International Organization for Standardization(ISO) Adopted in 1987 More than 100 countries
A prerequisite for global competition ISO 9000 directs you to: document what you do and then do as you documented.

9001

Model for Quality Assurance in Design, Production Installation, and Servicing.

Model for Quality Assurance in Production and Installation Model for Quality Assurance in Final Inspection Test

9002

9003

 ISO 14000

ISO Standards

A set of international standards for assessing a companys environmental performance Standards in three major areas Management systems Operations Environmental systems

Documentation standards
Particularly important - documents are the tangible manifestation of the software. Documentation process standards Concerned with how documents should be developed, validated and maintained. Document standards Concerned with document contents, structure, and appearance. Document interchange standards Concerned with the compatibility of electronic documents.

Documentation process

This involves checking the software development process to ensure that procedures and standards are being followed. There are two approaches to quality control 1. Quality reviews; 2. Automated software assessment and software measurement.

Total Quality Management

A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

What is TQM?
Management by Fact Concern for employee involvement and development

Constant drive for continuous improvement and learning.

Result Focus

Passion to deliver customer value / excellence

Organisation response ability

Actions not just words (implementation)

Process Management

Partnership perspective (internal / external)

LEARNING AND TQM

Learning Process Improvement

Quality Improvement

Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

BASIC PRINCIPLES OF TQM

Approach Scope Scale Philosophy

Standard

Management Led Company Wide Everyone is responsible for Quality Prevention not Detection
Right First Time

Control Theme

Cost of Quality On going Improvement

QC Throughout Production Systems

Inputs
Raw Materials, Parts, and Supplies
Conversion Production Processes Outputs Products and Services

Control Charts and Acceptance Tests

Control Charts Quality of Partially Completed Products

Control Charts and Acceptance Tests

Quality of Inputs

Quality of Outputs

Throughput: Output relative to input; the amount passing through a system from input to output over a period of time

The TQM Approach

1. 2. 3. 4. 5. Find out what the customer wants Design a product or service that meets or exceeds customer wants Design processes that facilitates doing the job right the first time Keep track of results Extend these concepts to suppliers

Elements of TQM
1. Continual improvement 2. Competitive benchmarking 3. Employee empowerment 4. Team approach 5. Decisions based on facts 6. Knowledge of tools 7. Supplier quality 8. Champion 9. Quality at the source 10. Suppliers

Elements for Success

1. 2. 3. 4. 5. 6. 7. 8. 9. Management Support Mission Statement Proper Planning Customer and Bottom Line Focus Measurement Empowerment Teamwork/Effective Meetings Continuous Process Improvement Dedicated Resources

Importance of Quality
Correlation matrix
Design requirements

Customer requirements

Relationship matrix
Specifications or target values

Competitive assessment

A good or service free of deficiencies. Poor quality can account for 20% loss in revenue. Benchmarking is the process of analyzing other firms best practices. Quality control is measuring goods and services against established quality standards. Many companies evaluate quality using the Six Sigma concept.
A company tries to make error-free products 99.9997% of the time, a tiny 3.4 errors per million opportunities.

The Continuous Improvement Process

Measurement

Empowerment/ Shared Leadership

Measurement

Measurement

Customer Satisfactio n

Business Process Results Improvement/ Team Problem Management Solving

Measurement

Modern History of Quality Management

Frederick W. Taylor wrote Principles of Scientific Management in 1911. Walter A. Shewhart used statistics in quality control and inspection, and showed that productivity improves when variation is reduced (1924); wrote Economic Control of Manufactured Product in 1931.
W. Edwards Deming and Joseph M. Juran, students of Shewhart, went to Japan in 1950; began transformation from shoddy to world class goods.

In 1960, Dr. K. Ishikawa formalized quality circles - the use of small groups to eliminate variation and improve processes.
In the late 70s and early 80s: Deming returned from Japan to write Out of the Crisis, and began his famous 4-day seminars in the United States Phil Crosby wrote Quality is Free NBC ran If Japan can do it, why cant we? Motorola began 6 Sigma

History of Quality Management

Demings Concept of Profound Knowledge

Understanding (and appreciation) of Systems - optimizing sub-systems sub-optimizes the total system - the majority of defects come from systems, the responsibility of management (e.g., machines not in good order, defective material, etc. Knowledge of Statistics (variation, capability, uncertainty in data, etc.) - to identify where problems are, and point managers and workers toward solutions Knowledge of Psychology (Motivation) - people are afraid of failing and not being recognized, so they fear how data will be used against them Theory of Knowledge - understanding that management in any form is a prediction, and is based on assumptions

History of Quality Management

Demings 14 Points 1. Create constancy of purpose for improvement 2. Adopt a new philosophy 3. Cease dependence on mass inspection 4. Do not award business on price alone 5. Work continually on the system of production and service 6. Institute modern methods of training 7. Institute modern methods of supervision of workers 8. Drive out fear 9. Break down barriers between departments 10. Eliminate slogans, exhortations, and targets for the work force 11. Eliminate numerical quotas 12. Remove barriers preventing pride of workmanship 13. Institute a vigorous program of education and retraining 14. Take action to accomplish the transformation

What is Six Sigma?

Statistically
Having not more than 3.4 defects per million

Conceptually
Program designed to reduce defects Requires the use of certain tools and techniques A goal of near perfection in meeting customer requirements A sweeping culture change effort to position a company for greater customer satisfaction, profitability and competitiveness

A comprehensive and flexible system for achieving, sustaining and maximizing business success; uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving and reinventing business processes

Six Sigma Improvement Methods

DMAIC vs. DMADV
Define Measure Analyze
Continuous Improvement Reengineering

Improve Control

Design Verify

Six Sigma Programs

Six Sigma programs Improve quality Save time Cut costs Employed in Design Production Service Inventory management Delivery

Six Sigma Management

Providing strong leadership Defining performance merits Selecting projects likely to succeed Selecting and training appropriate people

Six Sigma Technical

Improving process performance Reducing variation Utilizing statistical models Designing a structured improvement strategy

Six Sigma Team

Top management Program champions Master black belts Black belts Green belts

Obstacles to Implementing TQM

Lack of: Company-wide definition of quality Strategic plan for change Customer focus Real employee empowerment Strong strong motivation Time to devote to quality initiatives Leadership Poor inter-organizational communication View of quality as a quick fix Emphasis on short-term financial results Internal political and turf wars

Basic Steps in Problem Solving

Define the problem and establish an improvement goal Collect data Analyze the problem Generate potential solutions Choose a solution Implement the solution Monitor the solution to see if it accomplishes the goal

Process Improvement
Process Improvement: A systematic approach to improving a process 1. Process mapping 2. Analyze the process 3. Redesign the process

Process Improvement and Tools

Process improvement - a systematic approach to improving a process
Process mapping Analyze the process Redesign the process There are a number of tools that can be used for problem solving and process improvement Tools aid in data collection and interpretation, and provide the basis for decision making

Tools

Quality Management Process

The Deming Cycle or PDCA Cycle PLAN Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured
ACT DO Implement the change on a small scale and measure the effects

Adopt the change as a permanent modification to the process, or abandon it.

CHECK Study the results to learn what effect the change had, if any.

The Process Improvement Cycle

Select a process Document Study/document

Evaluate

Implement the Improved process

Seek ways to Improve it

Design an Improved process

Basic Quality Tools Flowcharts Check sheets Histograms Pareto Charts Scatter diagrams
Control charts

Cause-and-effect diagrams Run charts

Flow Chart Example: Self-Serve Gas Before Improvement

shut off engine walk to pay station

Drive in

check price

self serve? yes no

to pump

check card

transmit

approved?

turn on pump

back to car

pump gas

walk to booth

wait

yes

no copy to file
return to car employee totals charges check accuracy prepare receipt sign copy copy to wallet

on the road again

Check Sheet
Billing Errors
Wrong Account

Monday

Wrong Amount

A/R Errors
Wrong Account

Wrong Amount

Pareto Analysis
80% of the problems may be attributed to 20% of the causes.

Number of defects

Off Smeared Missing Loose Other center print label

Control Chart
1020

1010 1000 990 980

970

UCL
Upper Control Limit

LCL
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Lower Control Limit

Cause-and-Effect Diagram
Methods Materials Cause Cause Environment Cause Cause Cause Cause Cause Cause Cause Effect

Cause

Cause
People

Cause
Equipment

Run Chart

Diameter

Time (Hours)

Tracking Improvements
UCL

UCL UCL

LCL
LCL LCL Process not centered and not stable Process centered and stable

Additional improvements made to the process

Methods for Generating Ideas

Brainstorming Quality circles Interviewing

Benchmarking
Benchmarking Process
Identify a critical process that needs improving Identify an organization that excels in this process Contact that organization Analyze the data Improve the critical process

5W2H - What, When, Where, Why, Who, How, How Much

Acceptance Sampling is a form of inspection applied to lots or batches of items before or after a process to judge conformance to predetermined standards.
Acceptance Sampling is very useful when: Large numbers of items must be processed in a short amount of time. The cost of passing defectives is low. Fatigue/boredom is caused by inspecting large numbers of items. Destructive testing is required
Advantages

Less expensive Reduced damage Reduces the amount of inspection error Risk of accepting bad lots and rejecting good lots Less information generated Requires planning and documentation

Disadvantages

Sampling Plans
Sampling Plans specify the lot size, sample size, number of samples and acceptance/rejection criteria. Sampling plans involve:
1.

2.
3.

Single sampling Double sampling Multiple sampling

Lot

Random sample

1.Single Sampling Plans

A single sampling plan is one where:

A representative sample of n items is drawn from a lot size of N items Each item in the sample is examined and classified as good/defective If the number of defective exceeds a specified rejection number (c) the whole lot is rejected; otherwise the whole lot is accepted

2.Double Sampling Plan

A Double Sampling Plan allows to take a second sample if the results of the original sample are inconclusive. Specifies the lot size, size of the initial sample, the accept/reject/inconclusive criteria for the initial sample (N, n1, c1 (Ac), r1(Re)) Specifies the size of the second sample and the acceptance rejection criteria based on the total number of defective observed in both the first and second sample (n2,c2,r2)

2.Double Sampling Plan

Lot
First Random sample

Accept Lot

First sample inconclusive, take second sample

Reject Lot

C1

r1

Compare number of defective found in the first random sample to C1 and r1 and make appropriate decision.

2.Double Sampling Plan

Lot
First Random sample

Second Random sample

Accept Lot

Reject Lot

C2
Compare the total number of defective in both lots to C2 and make the appropriate decision

3.Multiple Sampling Plan

A Multiple Sampling Plan is similar to the double sampling plan in that successive trials are made, each of which has acceptance, rejection and inconclusive options. Which Plan you choose depends on: Cost and time Number of samples needed and number of items in each sample

Average Outgoing Quality (AOQ)

The average outgoing quality is only applicable to the characteristics defective units, defects per unit, and defects per quantity and assumes rejected lots are 100% inspected and all defectives/defects are removed In this case, all rejected lots are made perfect and the only defects left are those in lots that were accepted.

AOQ and Acceptance Sampling

15 lots 2% nonconforming Producer

N=3000 n=89 c=2

11 lots 2% nonconforming Consumer

4 lots 2% nonconforming

4 lots 0% nonconforming

How acceptance Sampling works