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GMS 401 - CH15 SUP.docx

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Global Management Studies
GMS 401
Sam Lampropoulos

GMS 401 – Chapter 15- Supplementary Maintenance: All activities that keep facilities and equipment in good working order so that a system can perform as intended. Goal: keep production system in good working order at minimum cost. Reasons:  Avoid production disruptions  Maintain high quality and safety  Avoid missed delivery dates breakdown (emergency) maintenance dealing with breakdowns (repair/ replacement) only after they occur. Preventive
 : avoiding breakdowns through a program of lubrication,
 bolt tightening, cleaning, inspection, and replacement of worn parts. Managers usually schedule preventive maintenance using some combination of the following: 1. The result of planned inspections that reveal a need for maintenance 2. According to the calendar (passage of time) 3. After a predetermined number of operating hours (or miles for vehicles The age and condition of equipment, the degree of technology involved, the type of production process, and similar factors enter into the decision of how much preventive maintenance is desirable. Given preventive maintenance (PM) interval L, if a breakdown occurs before L, then a breakdown maintenance cost will be incurred, and the machine will be repaired and the next time between breakdowns (TBB) will start. On the other hand, if there is no breakdown before L, then a PM cost will be incurred at time L. We determine L so that expected cost of each consequence is equal, i.e., Bre
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