Maintenance Management

Strategy
1 November 2017 1
 Maintenance Management Objective
Maintenance
Management

Minimize Maintenance & Repair Costs

Maximize Production & Profit

1 November 2017 Slide No 2

 Your Maintenance Management Activity
Do You Know In Detail Your Equipment Operating Costs ?
Maintenance
Management

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

In Your Support Operation ?
If You Dont Then You Cant Outsource Effectively !
1 November 2017 Slide No 3
 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 20%
1 40%
2 60%
3 80%
4 100%
5
Source: Ownership Costs EIA Percentage That Profit Can Be Influenced By

1 November 2017 Slide No 4

 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 2.50 - 4.50 %
Resale Value 0.90 - 1.60 %
Total Effect 8.25 - 15.85 %

Source Cat Equipment Investment Analysis PC Software Case

Study

1 November 2017 Slide No 5

 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

1 November 2017 Slide No 6

 Maintenance Management Objective
Maintenance
Management

Maintenance Management Seminar

M.M.S.

M.M. $

Make More Money !

1 November 2017 Slide No 7

 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 Management
Maintenance Control & System Maintenance
Planning Failure Analysis
Condition Monitoring Repair Management
Inspections and Tools Future of Maintenance
Lubricants Customer Support Agreements
Workshop Practices

1 November 2017 Slide No 9

 Equipment Management Plan
Maintenance
Management
PM
Resources Services Cost/Record
System

Condition
Scheduling Problem
Monitoring
System Management
System

Component Parts
R&I Component Management
Overhaul

1 November 2017 Slide No 10

 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 know Cat equipment better than
anyone
We have vested interest in your success
We get information to you fast
We help find right solutions
We 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

Provides documented
Management

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
Track all elements of your maintenance program
Maintenance
Management

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
Fuel 24% 28%

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
Maintenance Management Seminars
 Customer Support Agreements - Spectrum
Maintenance
Management Any arrangement between customer
and dealer -- preferably before a
sale

That Lowers And Fixes Operating

Costs
Basic Helps improve Availability & Comprehensive
SupportPerformance Support

Service Machine Condition Maintenance Total Cost

and/or monitoring Support Performance
parts Guarantee
supply
guarantee Custom Hydraulic Service Preventive Repair and
Custom Track Service Maintenance Maintenance
SOS Fluid Analysis Agreement Agreement
Technical Analysis
Inspections
 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.

1 November 2017 Slide No 24

 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

1 November 2017 Slide No 25

Maintenance
Management

1 November 2017 Slide No 26

 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

1 November 2017 Slide No 27

 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

1 November 2017 Slide No 28

 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

1 November 2017 Slide No 29

 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

1 November 2017 Slide No 30

 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

1 November 2017 Slide No 31

 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

1 November 2017 Slide No 32

 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

1 November 2017 Slide No 33

 Changing Your Maintenance Management
Program
Maintenance

Education
Management

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
1 November 2017 Slide No 34
security will remain intact.