Maintenance Strategy

Assignment 1

Student’s Name: Younes Amiri Pour

Student’s ID: 12084766

Younes

Assignment mark = 8/15

Please see advisory comments throughout the assignment, The assignments in the subject are based upon course work from the authors organisation.

Please contact the lecturer on 0405 198 150 to discuss the requirements for assignment 2

All the best for your future assignments

Greg saywell

Executive Summary

The report aims to determine the assets management life cycle along with operating and maintenance strategies of the selected facility. It is analyzed that asset management is critical for planning and monitoring the assets and encouraging the participation of the employees. It is identified that preventive maintenance and TPM are implemented by facility in the operations management, which assists in the production system of the business. However, the facility should focus on different areas of asset management for improvement so that it could extend the useful life of an asset.

Table of Contents

Introduction 3

Asset Life Cycle within the organization 3

Effectiveness of current life cycle process 4

Description of operating strategy 5

Description of maintenance strategy 5

Internal and external factors 7

Effectiveness of current maintenance strategy 7

Conclusion 8

References 9

Good contents listing

Introduction

The fundamental objective of the report is to determine the asset life cycle as well as an operating strategy within an organization. It will evaluate the effectiveness of the existing life cycle process and maintenance strategy to meet the essential needs of the organization. Two internal and external factors will be identified that affect the maintenance strategy.

Ensure the introduction is on a separate page to the main content of the report

Asset Life Cycle within the organization

Asset life cycle management refers to the process of optimizing profit generated by the assets (Roda, Macchi and Albanese, 2020). It consists of four main stages, which include planning, procurement, maintenance, and disposition. In the car manufacturing facility, the management has managed the life cycle of assets effectively to generate sales and high turnover. It is found that the car manufacturing facility has planned and identified the assets required for setting up the manufacturing plant. However, at the designing stage of the cycle, reliability and maintainability of physical assets are required to be maintained. Continuous improvement process is adopted to design the plant and manage the assets (Macchi et al., 2018). At the stage of installation, all the necessary equipment and machinery are installed within the facility to ensure maintainability of all assets.

Furthermore, at the commissioning stage of life cycle, the management of car manufacturing facility test the technical performance of the machines and check default of any machinery. In addition, during the useful life stage, the operating assets are monitored to reduce the costs of maintenance. Appropriate maintenance is conducted to identify the potential improvement and monitor the assets along with adjusting the assets in operational requirements (Imai, 2019). Proper maintenance of the assets extend the useful life of the assets and meet the intended objective.

Further detail of the elements involved the individual phases of the asset life cycle is required

I could find no reference of the Asset Life Cycle Figure within the discussion

Figure: Asset Life Cycle Management

(Source: Yates and Lewchuk, 2017)

Effectiveness of current life cycle process

The asset life cycle management methodology assists the clients of the company in improving installed asset base as well as capital expenditures through capital portfolio management and efficient execution of lean asset projects in order to maintain and operate assets. It is a critical challenge for the corporation to improve asset performance along with a reduction in the cost of assets. If the performance of the assets and management are done inaccurately, then it would increase the costs over the life cycle of assets. However, asset management strategy is executed effectively to deliver sustainable success and increase the reliability of assets, which means the organization would have efficient asset planning, maintenance, acquisition, disposal, and operation along with disclosing of assets (Nunes, Bennett and Shaw, 2016).

Moreover, it is essential for the facility to focus on three key areas of asset management life cycle that needs improvement. Three major areas are a disposal, maintenance, and planning because the company should consider the essential factors while implementing strategies for lean asset management. Asset management is crucial for monitoring the assets and planning the acquisition of lean assets for production processes (James, 2019).

Very brief discussion in the last paragraph on the 3 areas of improvements to the asset life cycle methodology, 3 areas of improvement have been identified but little discussion on the expected positive impact of the improvements were discussed.

A Figure or Diagram containing the location of the improvements within the asset life cycle was not included

Description of operating strategy

The car manufacturing facility has effective operation management, which assists in getting success at the global level. However, the facility has used R&D investments in order to ensure that the products and services offered contain advanced features and, thus, address the designing of goods through technological quality. Quality management is the other area of operating strategy, which is managed by the company through continuous improvement in order to maximize quality (Ng et al., 2017). In addition, the facility uses lean manufacturing in the area of the process as well as capacity design in operating strategy to focus on minimizing the waste and increase the efficiency of the process. It means that the plant supports the effectiveness of business along with cost-efficiency in the process design. Another area in operation management is location strategy, and thus, it has localized manufacturing plants in various areas through adopting a mixed set of strategies.

Moreover, the application of lean manufacturing principles is highlighted in layout design in a manufacturing plant. The facility increases the effectiveness of workflow through the layout design area of the operating strategy (Munir et al., 2019). Besides this, it also applied production system for the job design and human resources to show respect for all the people and integrate HR programs as well as policies. In the supply chain management area of operating strategy, the facility uses the automation system in the supply chain activity. However, the business has reduced the level of inventory by adopting just-in-time inventory management with an aim to minimize the cost of inventories. Scheduling is an effective area of operating strategy to reduce the operating costs, and thus, the business minimizes the costs of operations and processes through scheduling HR and other resources as per the changes in market situations. In addition, the corporation has an international HR network to support business resilience and flexibility. In the maintenance area of operation management, the facility use global reach for ensuring stable productivity.

To ensure an effective maintenance strategy can be developed utilizing the Business Centered Maintenance methodology the author is required to understand the plant operational strategy including, days of work, hours of work, shifts, asset utilization and asset availability, planned downtime, any seasonal impacts, internal and external impacts. The inclusion of asset utilization and asset availability graphs would support the discussion

Description of maintenance strategy

A maintenance strategy is significant for the corporation to extend asset life, minimize the cost of repair, improve health and safety, and decrease the failure of assets (Franciosi, Lambiase and Miranda, 2017). There are different types of maintenance strategies, which include preventive, condition-based, risk-based, and corrective. However, preventive maintenance is an effective maintenance strategy used by the car manufacturing facility in order to ensure the availability of machines as machine availability plays a key role in implementing practices of lean manufacturing. The adoption of preventive maintenance assists in achieving maximum usage of machines through the involvement of total employees. It is found that the production employees are trained to perform routine maintenance, but a centralized maintenance approach is adopted to ensure the flexibility of using a number of personnel for scheduling maintenance tasks.

The preventive maintenance strategy helps the facility to allocate work to the maintenance team on a daily basis and detect the failure in machines before the machine fails. Besides this, TPM (total productive maintenance) is the innovative approach used by the business for maintenance that optimizes the effectiveness of equipment, removes breakdown as well as promotes maintenance. TPM is the current maintenance initiative to enhance the competitiveness of the organization and increase the efficiency of production equipment. The strategy of TPM helped the company to take the production system to the next level as it focused on the elimination of waste to decrease costs of manufacturing and eradicate losses of equipment.

The assignment question required the author to determine and outline the current maintenance strategy at a higher order by recording the percentage of the 4 known maintenance strategies currently utilized by the organisation, along with any TPM currently undertaken by operations

Figure: Total productive maintenance strategy

(Source: He et al., 2017)

Internal and external factors

There are numerous internal and external factors that influence the maintenance strategy within the company. Organizational culture and quality of staff are the two internal factors influencing the preventive and total productive maintenance strategies within the corporation. However, a strong and efficient organizational culture is necessary to be developed within the workplace to encourage the participation of employees as it would help in applying TPM successfully (Soliman, 2017). In addition, the knowledge base of all the personnel used by the facility in order to enhance the reliability of equipment along with productivity and, thus, lower the costs of both maintenance and operations. It is identified that negative work culture would affect the maintenance strategy negatively, and thus, an effective culture with the organization should be developed.

Lack of technical skills influences the implementation of preventive maintenance strategies, as adequate skills are necessary for conducting maintenance activities. Hence, the quality of staff is necessary for the maintenance strategies. Moreover, technical and political factors are the external factors affecting the maintenance strategy used by the company. The availability of technical resources is crucial for the adoption of TPM and preventive maintenance strategies. Political factors such as a change in regulation and laws influence the implementation of the strategies.

Effectiveness of current maintenance strategy

It is recognized that an effective maintenance strategy is key to success in implementing maintenance programs. Preventive maintenance strategy seems to be effective for improving the efficiency of machines, raising the quality of output, and reducing costs of maintenance. It is identified that the maintenance staffs are responsible for the execution of the strategies and meet the demand of the production and longevity requirements for the organization. TPM is effective in enabling the production system of the plant to improve the level of quality, enhancing profits, and lowering costs of operations (Rishi, Ramachandara and Srinivas, 2016). Besides this, the effectiveness of the maintenance strategy can be measured by achieving the maximum usage of machines and equipment and the involvement of total personnel.

However, the current maintenance strategy of the facility failed to meet the requirements of the business in three different areas, which include machine failures, equipment effectiveness, and maintenance schedule. In addition, it is recognized that the areas need improvement so that the company could reduce the number of failures of machines used in the production and ensure the efficiency of all equipment used in the plant processes. Scheduling is necessary for the plant processes as it helps in setting maintenance hours for each machine, work hours for each personnel and allocates work.

Further detail required of where the current maintenance strategy is not meeting organizational requirements is required along with the expected benefits from the 3 areas of improvement, The utilization of Figures and Graphs would assist and support the discussion

Ensure the conclusion is a separate page to the body of the discssion

Conclusion

The paper helped in understanding the asset life cycle management and operating strategy along with the maintenance strategy of the car manufacturing facility. Political factors, technology advancement, organizational culture, and staff quality are the internal and external factors influence the maintenance strategy of the facility. The current maintenance strategy of facility is preventive and total productive maintenance strategies.

References

Franciosi, C., Lambiase, A. and Miranda, S., 2017. Sustainable maintenance: a periodic preventive maintenance model with sustainable spare parts management. IFAC-PapersOnLine, 50(1), pp.13692-13697.

He, Y., Gu, C., Chen, Z. and Han, X., 2017. Integrated predictive maintenance strategy for manufacturing systems by combining quality control and mission reliability analysis. International Journal of Production Research, 55(19), pp.5841-5862.

Imai, N., 2019. Material Flow Time Costing: New Management Accounting Concept Consistent with Toyota Production System and Material Flow Cost Accounting. Sustainability Management And Business Strategy In Asia, 16, p.113.

James, R., 2019. The Toyota Way or the unions’ way?: Examining the nexus between lean and unions in Toyota Australia. The International Journal of Human Resource Management, pp.1-39.

Macchi, M., Roda, I., Negri, E. and Fumagalli, L., 2018. Exploring the role of digital twin for asset lifecycle management. IFAC-PapersOnLine, 51(11), pp.790-795.

Munir, M.A., Zaheer, M.A., Haider, M., Rafique, M.Z., Rasool, M.A. and Amjad, M.S., 2019. Problems and Barriers Affecting Total Productive Maintenance Implementation. Engineering, Technology & Applied Science Research, 9(5), pp.4818-4823.

Ng, T.C., Yang, T.X., Yew, M.C., Saw, L.H., Yew, M.K. and Chen, K.P., 2017. A review on lean maintenance through various implementations of total productive maintenance model. International Journal of Advanced and Applied Sciences, 4(9), pp.174-179.

Nunes, B., Bennett, D. and Shaw, D., 2016. Green operations strategy of a luxury car manufacturer. Technology Analysis & Strategic Management, 28(1), pp.24-39.

Rishi, J.P., Ramachandara, C.G. and Srinivas, T.R., 2016. Keys to Succeed in Implementing Total Preventive Maintenance (TPM) and Lean Strategies, pp.25-30.

Roda, I., Macchi, M. and Albanese, S., 2020. Building a Total Cost of Ownership model to support manufacturing asset lifecycle management. Production Planning & Control, 31(1), pp.19-37.

Soliman, M., 2017. A comprehensive review of manufacturing wastes: Toyota production system lean principles. Emirates Journal for Engineering Research, 22(2), pp.1-10.

Yates, C. and Lewchuk, W., 2017. What shapes automotive investment decisions in a contemporary global economy?. Canadian Public Policy, 43(S1), pp.S16-S29.

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