Evaluating the effectiveness of maintenance strategies

Introduction (Pinjala and Pintelon, 2004) conducted survey

within Belgian industries, 71% out of 46 respondent considered that maintenance could be used as a tool for enhancing company’s competitive advantage.

2 groups: Concern consistencies Concern contribution

This paper, Hayes and Wheelwright’s 4 stage framework is applied in identifying and evaluating the effectiveness of a given maintenance strategy.

Maintenance strategy and its effectiveness Swanson (2001) explains 3 types of maintenance

strategies: Reactive strategy (CM) Proactive strategy (PM and PDM) Aggressive strategy (TPM)

Tsang (2002) identifies 4 strategic dimensions of maintenance: Service-delivery option Organization and work structuring Maintenance methodology Support systems

Often leads to the simplification of the maintenance function just as corrective and/or preventive maintenance.

Maintenance strategy and its effectiveness Define as a series of unified and integrated pattern of

decisions made in 4 structural and 6 infrastructural decision elements. (Pinjala and Pintelon, 2004). Table 1.

Cholasuke et al. (2004) studied the status of maintenance management in UK manufacturing organizations based on a pilot survey. They categorized the maintenance effectiveness measures into 9 areas based on a literature study: Policy deployment and organization Human resources management Financial aspects Continuous improvement Contracting out maintenance Maintenance approach Task planning and scheduling Information management and CMMS Spare parts management

Table 1

Maintenance strategy and its effectiveness… Campell and Jardine (2001) propose 5 levels

of maintenance excellence: Novice Foundation Apprentice Journeyman Mastery

This paper mainly considers the consistency and contribution criteria suggested by Hayes and Wheelwright.

Methodology Evaluating such strategy can be much more

complex. Appropriateness of a given maintenance

strategy should mainly depends upon manufacturing and business requirements.

Should internally consistent with the strategy elements (Table 1)

Should also externally consistent with the business environment (e.g. governmental restraints on safety and the environment).

Stage 1: Minimize negative potential – internally neutral

Manufacturing Strategy Effectiveness Framework

Maintenance Strategy Effectiveness Framework

• External experts are used in making

decisions about strategic manufacturing

issues

• Internal management control systems

are the primary means for monitoring

manufacturing performance

• Manufacturing is kept flexible &

reactive

• Maintenance is considered just as a

secondary function. No internal

expertise is developed.

•Rely heavily on OEM or external service

provider to solve complex equipment

problems

• Maintenance on reactive basis

• Objective of maintenance is to keep

equipment running

Case example Stage 1: Internally neutral

DSN (not its real name) annual sales of over $800million.

Employ 5000 people. Maintenance employ 24% of the total workforce. Demand exceed supply. Downtime is around 16% while competitors maintain it

at less than 10%. Outsources more than 50% of its maintenance

activities. More than 70% of its maintenance is done on a

reactive basis. Total annual budget on maintenance is around

$30million, represent 15% of total operating costs.

Stage 2: Achieve parity (neutrality) with competitors – externally neutral Manufacturing Strategy

Effectiveness FrameworkMaintenance Strategy

Effectiveness Framework

• “Industry practice” is followed

• Planning horizon for manufacturing investment decisions is extended to incorporate a single business cycle

• Capital investment is regarded as the primary means for catching up to competition or achieving a competitive edge

• “Industry practice” is followed in matters regarding maintenance practices, outsourcing, equipment (buying equipment that require less maintenance), similar to its competitors

• Majority of maintenance is carried out on reactive basis and reasonable amount of preventive maintenance is also done

• Maintenance role is neutral at best but they define that role in relation to its competitors

Case example Stage 2: Externally neutral

Stage 3: Provide credible support to the business strategy – internally supportive

Manufacturing Strategy Effectiveness Framework

Maintenance Strategy Effectiveness Framework

• Investment are screened for consistency with business strategy

• Changes in business strategy are automatically translated into manufacturing implications

• Longer term manufacturing developments and trends are systematically addressed

• Maintenance are incorporated in company’s overall strategy.

•Not fully exploited

•Maintenance crew are better equipped with skills and training

•Proactive maintenance policies are carried out

•Percentage of breakdown maintenance in low

Case example Stage 3: Internally supportive

Stage 4: Pursuing a competitive advantage – externally supportive Manufacturing Strategy

Effectiveness FrameworkMaintenance Strategy

Effectiveness Framework

•Efforts are made to anticipate the potential of new manufacturing practices and technologies

•Manufacturing is centrally involved in major marketing and engineering decisions

•Long-ranged program are pursued in order to acquire capabilities in advance of needs

• Maintenance considerations are incorporated in major capital investment decisions, also as a potential source of a competitive advantage

• Often integrated with engineering

•Managed at world-class standards in all aspects thru continuous improvements

•Equal attention to maintenance and its potential is fully exploited

Case example Stage 4: Externally supportive

Conclusion This paper mainly represents an attempt to

explore the operational issues of Hayes and Wheelwright’s four-stage framework with respect to maintenance strategies.

These case examples indicate that maintenance, if managed properly, can also contribute to enhancing the competitive advantage of a company.

This study shows that companies that seek a balance of excellence in all of their functions perform better.