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MANAGEMENT
PLANT
Maximising Production
Minimising Energy
Usage
Optimising Useful Life of
Equipment
Providing Budgetary
Control
Optimising Resources
Utilisation
M
A
I
N
T
E
N
A
N
C
E
Reduce Breakdowns
Reduce Downtime
Improving Equipment
Efficiency
Improving Inventory
Control
Implementing Cost
Reduction
Types of Maintenance
MAINTENANCE
PLANNED
MAINTENANC
E
(PROACTIVE)
UNPLANNED
MAINTENANC
E (REACTIVE)
BREAKDOWN
EMERGENCY
PREDECTIVE
MAINTENANC
E
STATISTICAL
- BASED
PREVENTIVE
MAINTENANC
E
CONDITION
- BASED
IMPROVEMEN
T
MAINTENANC
E
ENGINEERIN
G SERVICES
DESIGN
OUT
Shutdown
WINDO
W
RUNNIN
G
ROUTIN
E
OPPORT
U-NITY
SHUTDOWN
PREVENTIVE
CORRECTIVE
MAINTENANC
E
DEFERRED
REMEDIAL
Maintenance
SHUTDOWN
IMPROVEMEN
T
SHUTDOWN
CORRECTIVE
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
6.
into
EQUIPMENT
REPLACEMENT POLICY
REASONS FOR
REPLACEMENT
DETERIORATION
OBSOLESCENCE
INADEQUACY
WORKING CONDITIONS
DETERIORATION
It is the decline in performance of an equipment as
compared to a new equipment identical to the
present one.
Deterioration may occur due to equipment wear &
tear, misalignments, etc.
Deterioration1. Increases maintenance costs.
2. Reduces product quality.
3. Decreases rate of production.
4. Cause loss in operating time.
5. Increases labour costs; &
6. Reduces efficiency of the equipment.
OBSOLESCENCE
Technology is progressing rapidly; newer &
better equipments are being developed &
turned out every year.
If management of a concern does not go for a
change in the equipment or machinery, the
unwanted manufacturing costs arising from
obsolete equipment will1. Reduce profits
2. Seriously impair the concerns competitive
position in the market.
.Obsolescence causes loss in value of
machinery.
DEPRECIATION
The term depreciation means a fall in the value of an
asset i.e.; with the use over a period of time, there is a
decline in the fixed assets. These fixed assets include
plant & machinery, building, furniture's & tools
accessories etc.
Their value falls due to use.
Some of the important reasons for decline in the value
of the assets may be:i. Lapse of time
ii. Wear & tear due to use over a period of time.
iii. Lack of proper repair & maintenance.
iv. Introduction of new improved equipment in the
market.
Definition
According to the society of American
Value Engineers (SAVE ) value
analysis is the systematic application
of recognised techniques which
identify the function of a product or
service, establish a monetary value
for the function & provide the
necessary function reliably at that
lowest overall cost.
APPLICATION
Millitary equipments.
Import substitutes.
Machine tool industry.
Industries making material handling
equipments.
Auto industries, etc.
TECHNIQUES
A number of questions as framed by
miles at G.E. & others are given below.
Each components part of the product is
analysed in the light of these questions
( or tests ).
1. Does it ( i.e. component ) contribute
value to end product?
2. Is its cost proportionate to its function?
3. Can some of its features be combined or
eliminated?
Advantages
Value analysis is much faster cost
reduction technique.
It requires little expenditure because
the value analysis team can be
formulated out of the staff available
in different sections like purchase,
production, finance, etc.
Value analysis reduces production
costs & adds to sale income of the
product.