Maintenance Strategy

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
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
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.

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Maintenance Management

Maintenance Management Objective

Minimize Maintenance & Repair Costs

Your Maintenance Management Activity

Do You Know In Detail Your Equipment Operating Costs ?

If You Cant Control Your Costs

Are Your Scheduling Maintenance And Repairs Effectively ?

Do You Recognize The Strengths & Weaknesses

Key Profit Factors

Percentage That Profit Can Be Influenced

Profit Factors Related to Maintenance

Source Cat Equipment Investment Analysis PC Software Case Study

High Powered Dollars

$100 Production Increase Yields $10 Profit

Maintenance Management Objective

Maintenance Management Seminar

The Importance Of Maintenance

Greatest impact on profits

Maintenance Management Subjects

Repair Before Failure

Equipment Management Plan

Equipment Maintenance Elements

Saves you money

Condition Monitoring - Fluid Analysis

Understanding the SOS Oil Analysis Tests

know Cat equipment better than anyone

Condition Monitoring - Inspections

Locate potential &

Repair Management Guidance

Reduce major failures

Repair Cost Comparison

Cat 966F with 3306 DIT Engine

Record Keeping & Control Systems

PC - Maintenance Control Systems

Track all elements of your maintenance program

Example Of Operating Costs

Mid Size Wheel Loader

Scheduling or Maintenance Planning

Ensures work is performed on time - Prevents failure

Helps you lower costs

Meetings and seminars

Customer Support Agreements Spectrum

Any arrangement between

Customer Support Agreements

Ground rules established by management to

Maintenance is a large controllable cost up to 35% of

Set Your Maintenance Objective

Schedule major jobs and services

Defining Your Maintenance Program

The program spells out how maintenance work is

Maintenance Staff Function

The duties of key maintenance personnel as well as

Interaction Of Maintenance & Production

The interaction with operations and staff personnel

Request maintenance help

Linkages With Other Systems

Linkages with other systems should describe how:

Field data is converted into information

This Will Help To