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Role of Maintenance Organization  45

            production hours, reactive or breakdown response is the dominant management phi-
            losophy. To be competitive in today’s market, delays caused by maintenance-related
            problems should represent less than 1 percent of the total production hours.

            Another indicator of management effectiveness is the amount of maintenance over-
            time required to maintain the plant. In a breakdown maintenance environment, over-
            time costs are a major, negative cost. If your maintenance department’s overtime
            represents more than 10 percent of the total labor budget, you definitely qualify as a
            breakdown operation. Some overtime is, and always will be, required. Special pro-
            jects and the 1 percent of delays caused by machine failures will force some expen-
            diture of overtime premiums, but these abnormal costs should be a small percentage
            of the total labor costs.

            Labor usage is another key to management effectiveness. Evaluate the percentage of
            maintenance labor, compared to total available labor hours that are expended on the
            actual repairs and maintenance prevention tasks. In reactive maintenance manage-
            ment, the percentage will be less than 50 percent. A well-managed maintenance orga-
            nization should maintain consistent labor usage above 90 percent. In other words, at
            least 90 percent of the available maintenance labor hours should be effectively used
            to improve the reliability of critical plant systems, not spent waiting for something to
            break.


            3.2.1 Three Types of Maintenance
            There are three main types of maintenance and three major divisions of preventive
            maintenance, as illustrated in Figure 3–1:

                  • Maintenance improvement
                  • Corrective maintenance
                  • Preventive maintenance
                    • Reactive
                    • Condition monitoring
                    • Scheduled


            Maintenance Improvement
            Picture these divisions as the five fingers on your hand. Maintenance improvement
            efforts to reduce or eliminate the need for maintenance are like the thumb, the first
            and most valuable digit. We are often so involved in maintaining that we forget to
            plan and eliminate the need at its source. Reliability engineering efforts should empha-
            size elimination of failures that require maintenance. This is an opportunity to pre-act
            instead of react.

            For example, many equipment failures occur at inboard bearings that are located in
            dark, dirty, inaccessible locations. The oiler does not lubricate inaccessible bearings
            as often as those that are easy to reach. This is a natural tendency, but the need for
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