Who is Bill Gaw?
And why should we
listen to him?

Lean Enterprise Articles

Your 3-Step, World Class, Lean Manufacturing Training Program
WCM Lean Manufacturing

 Increase the effectiveness of your
Lean Manufacturing Initiative

Manufacturing Simulation Game 

Preventive Maintenance Approach
Part 1 of 4

privacy policy

Contact Us

 To review our training 
 packages, click on 
  the links below: 

e-Training Packages:

Lean Manufacturing

Balanced Scorecard

ISO 9000:2000

Supply Chain


Strategic Planning

     Other Options:   

Lean Leadership

Thinking Outside 
the Box Principles 

Lean Enterprise Training

Management Training

Lean Kaizen Event

Lean Manufacturing Implementation

Lean Six Sigma

Supply Chain

Strategic Planning

Total Quality

Lean Manufacturing Coach and Certification

Production Planning and Control

Manufacturing Planning and

The objective of this presentation is to illustrate how a planned, preventive approach to maintenance manage­ment utilizing manufacturing tools and techniques can be a catalyst for continuous improvement. Tools and tech­niques like long and short range equipment maintenance scheduling, efficient work order management, MRO mate­rials planning, effective manpower utilization and compre­hensive cost management used within the framework of an integrated information system can help achieve this. These tools provide the means for making informed decisions, containing costs and making better use of resources. In this presentation, we will discuss the elements of an effective maintenance strategy and describe the tools and techniques to achieve that strategy.

Causes and Effects of Poor Performance

Equipment requirements for world class manufacturing systems have heightened the need for an effective, proactive maintenance strategy. Competitively positioned manufac­turing companies emphasize striving toward continuous improvement. Maintenance organizations are one area where significant improvement can be realized by focusing on the causes of poor performance and eliminating them.

We must recognize that there is a cause and effect relation­ship between poor performance and the costs of that performance. Excessive maintenance and repair (MRO) inventories caused by inadequate maintenance material requirements planning result in lack of responsiveness to job requirements and large numbers of incomplete jobs. Inefficient craft utilization and maintenance worker idle time is caused by poor manpower planning and underutilization of labor. Loss of production capacity because of repeated equipment failures is caused by the lack of preventive and predictive maintenance scheduling of regular overhauls, inspections and lubrication cycles. The effects of these conditions are large investments of working capital for "just-in-case" inventories, excessive overtime expenditures, high production outages and main­tenance costs which consistently far exceed annual budget estimates and maintenance plans.
The chief driver toward continuous improvement in the maintenance organization is through the development of a strategy for prevention. It is a strategy that emphasizes planning and scheduling maintenance activities to main­tain equipment reliability.

A Strategy for Continuous Improvement

The foundation for a maintenance strategy that empha­sizes planning and prevention is provided by a sound management approach comprised of these elements:

• striking a balance between machine availability and the cost of providing availability. The thrust is on maintaining equipment at a standard level of perfor-
mance which will increase equipment life and mini­mize capital investment and overall maintenance costs.
• delivering quality maintenance service at a required level within an acceptable time frame to the cus­tomer—manufacturing.
• using a reliable, formalized process of planning and scheduling the maintenance workload, monitoring performance and improvement. Planning and execut­ing of maintenance considers quality, quantity, costs, timing and safety.
• preventing failures that compromise equipment avail­ability and reliability. Failure prevention is accom­plished through the proper mix of preventive, predic­tive and repair maintenance.
• reducing maintenance (MRO) inventories through bet­ter materials requirements planning, use of equip­ment BOMs, time-phased ordering, eliminating obso­lete parts and coordinating material requirements with maintenance schedules.
• increasing labor utilization ratios by efficiently allo­cating resources to schedules, matching maintenance job requirements to crew availability and using pre­defined job or task lists as the basis for better planning.

With the elements of the strategy and approach as a driver, effectively utilizing specific manufacturing tools and tech­niques adapted to maintenance is the next step toward better management of maintenance resources and costs. These tools and techniques include:

• demand management
• workload planning and scheduling
• MRO inventory management
• manpower planning
• maintenance cost accounting
• an integrated information system

To Be Continued


To stay current on manufacturing competitive knowledge, please subscribe to our weekly bulletin, "Manufacturing. Basics and Best Practices (MBBP)."  Simply fill in the below form and click on the " subscribe button." 

We'll also send you our Special Report, "8-Basics of Kaizen Based Lean Manufacturing."  

All at no cost of course. 

First Name:
Your E-Mail:

 Your personal information will never 
be disclosed to any third party.

privacy policy

Here's what one of our subscribers said about the MBBP Bulletin:

"Great articles. Thanks for the insights. I often share portions of your articles with my staff and they too enjoy them and fine aspects where they can integrate points into their individual areas of responsibilities. Thanks again."

               Kerry B. Stephenson. President. KALCO Lighting, LLC

"Back to Basics" Training for anyone ... anywhere ... anytime

Business Basics, LLC
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596

© 2001-2007 Business Basics, LLC