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Cost of Poor Maintenance: A concept for maintenance performance improvement
Mälardalen University, School of Innovation, Design and Engineering.ORCID iD: 0000-0002-7494-1474
Mälardalen University, School of Innovation, Design and Engineering.ORCID iD: 0000-0002-1507-2678
2011 (English)In: Journal of Quality in Maintenance Engineering, ISSN 1355-2511, Vol. 17, no 1, 63-73 p.Article in journal (Refereed) Published
Abstract [en]

Purpose – The purpose of this paper is to propose and discuss cost of poor maintenance (CoPM), as a concept for managing the improvement of maintenance performance within manufacturing industry.

Design/methodology/approach – The paper is based on literature studies and two workshops

with representatives from industry and academia.

Findings – CoPM is proposed as a new concept for maintenance performance improvement. The concept is derived from established practices in quality costing and hence it should be easily accepted in industry.

Practical implications – By using CoPM as a concept for maintenance performance development, manufacturing companies may identify the potential financial impact of the development work. The CoPM concept should provide a good viewpoint for identification of deficiencies in the maintenance performance within a given manufacturing system.

Originality/value – By adopting a well-known measure from the research area of quality development, a financial measure for maintenance is proposed in this paper. The measure shows which parts of the maintenance costs are justified and which costs relate to poorly performed maintenance. In this way a more balanced view of the financial contribution of maintenance activities may be achieved, even at board level of the company.

Keywords Maintenance, Direct costs, Performance levels, Production improvement

Paper type Conceptual paper

Place, publisher, year, edition, pages
2011. Vol. 17, no 1, 63-73 p.
Keyword [en]
Maintenance, Direct costs, Performance levels, Production improvement
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
URN: urn:nbn:se:mdh:diva-12101DOI: 10.1108/13552511111116259Scopus ID: 2-s2.0-79953863419OAI: oai:DiVA.org:mdh-12101DiVA: diva2:410097
Funder
XPRES - Initiative for excellence in production research
Available from: 2011-04-12 Created: 2011-04-12 Last updated: 2013-12-03Bibliographically approved
In thesis
1. Strategic Maintenance Development in Manufacturing Industry
Open this publication in new window or tab >>Strategic Maintenance Development in Manufacturing Industry
2011 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Industrial maintenance is a substantial financial post. The total value of maintenance budgets in Europe has been estimated to be approximately 1500 billion € per year. At the same time, there are indications that about a third of these costs are wasted due to poor planning, overtime costs, inferior use of preventive maintenance and so forth. However, the diversity between different types of industry is substantial.

While the process industry, which is rather vulnerable to disturbances, has a tradition of viewing its maintenance as a strategic resource, the picture is quite different in discrete item manufacturing industry. Historically, manufacturing industry has had a surplus of finished goods and Work-In-Progress buffers between machinery. Therefore, the manufacturing industry has been able to fulfil its production demand despite unreliable production equipment. In the last few decades, the concept of lean production has started to spread within the manufacturing industry as a means to improve competitiveness. Manufacturing companies apply lean tools such as flow oriented production layout, Just-In-Time production and Demand-Flow-Technology. As a consequence, the vulnerability to system disturbances increases and hence, the demand for dependable production equipment increases. Despite this increasing demand on reliable production equipment, few manufacturing companies work with strategic maintenance development. One reason for this may be that the existing methods and concepts for maintenance development are quite resource demanding.

The main objective with this research is to develop a simple and cost effective approach aimed to formulate, implement, and evaluate maintenance strategies for the manufacturing industry. In five case studies the following has been studied: (1) The industry’s view on strategic maintenance development, (2) Formulation of maintenance strategies, (3) Implementation of maintenance strategies, (4) Cost of Poor Maintenance, and (5) Results from strategic maintenance development.

As a result from this research, a process for the formulation of maintenance strategies has been developed. Further, a number of driving forces and obstacles, that influence the implementation of maintenance strategies, have been identified. The concept of Cost of Poor Maintenance has been introduced as a means for evaluating the financial contribution of maintenance. Finally, three years of studies in three companies has shown substantial benefits from strategic maintenance development.

Place, publisher, year, edition, pages
Västerås: Mälardalen University, 2011
Series
Mälardalen University Press Dissertations, ISSN 1651-4238 ; 99
National Category
Engineering and Technology
Research subject
Innovation and Design
Identifiers
urn:nbn:se:mdh:diva-12138 (URN)978-91-7485-010-9 (ISBN)
Public defence
2011-06-01, Filen, Smedjegatan 37, Eskilstuna, 10:00 (English)
Opponent
Supervisors
Funder
XPRES - Initiative for excellence in production research
Available from: 2011-04-20 Created: 2011-04-18 Last updated: 2013-12-06Bibliographically approved

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