

March 1, 2007
PRODUCTION TECHNOLOGY NEWS
Maintenance Matters
Job shops would be wise to review maintenance procedures when looking to improve overall operational efficiency.
Due to increased global competition, manufacturers are requiring shorter product lead times and reduced costs in order to compete. Yet one of the unmet needs facing many in this industry is an asset performance improvement effort driven by their maintenance department in support of manufacturing strategies focused on these very things.
Historically, manufacturers have not viewed investments in maintenance as a way to improve short-term profits. Now, however, with increased competition, manufacturers are searching for any and all options to improve shop productivity. Since production
set performance has such a dramatic impact on the quality of the product being produced, as well as the overall productivity of the shop, an increased focus on production assets are becoming essential in reducing the overall to produce, and ensure top performance*
Although several variables contribute to the overall productivity of the shop, available arts and organization of the spare parts crib are two areas to consider when assessing areas for improvement,
Part Of The Solution
One process that typically does not get managed well deals with repairable parts. When his is not executed effectively, manufacturers waste money in the form of excessive downtime, due to the lack of an available repairable parts inventory.
Secondly, they also miss reclaiming warranty dollars from repair vendors when part quality s absent. When repair part performance formation is not available, the manufacturer issues a good opportunity to put improvement projects in place. Manufacturers need high quality repairable parts available in order to support maintenance, and they need these parts to perform properly in the production environment. When repairable parts are not available or fail to function properly, production equipment idles while maintenance, crib personnel, and/or purchasing people scramble to obtain a repair part or solve the problem on the shop floor.
Asset downtime creates an opportunity cost to the shop that can range in the thousands of dollars per hour.
When this happens, the shop's costs increase because of lost production, inefficient labor and the inflated price for purchasing, as well as the emergency shipping that's required to get the part as soon as possible.
Because these pans are used in any number of applications, they can create a wide variety of technical challenges. In these cases, manufacturers require a strong effort focused on solving technical problems within their production environment, as it pertains to the functionality, use and repair of these parts.
Check Out The Crib
Asset performance is critical to shop productivity, and one of the key supporting functions is the performance of the maintenance material cribs. When managed poorly, the shop suffers from lost asset productivity, as well as poor maintenance labor utilization, which is essential in supporting production. When this occurs, costs increase as the shop raises their work effort in order to meet production demand.
The maintenance crib impacts asset performance through its impact on maintenance utilization and effectiveness. When parts are not available, assets sit idle while parts are acquired through an emergency purchasing effort. Asset downtime creates an opportunity cost to the shop that can range in the thousands of dollars per hour.
Shops also have a difficult time dealing with the financial challenges of holding the right parts, at the right time, all while controlling costs. Typically, cribs are stocked with all types of spare parts, many of which may not be critical to the productivity of the assets. And, traditionally, crib performance metrics work to reduce the amounts of inventory. These two forces, coupled with the shop's risk tolerance level, dictate the inventory management plan. But what happens is the force with the most control dictates strategy, while shop performance is compromised.
The key is taking the right steps to keep the right repair parts on-hand, while controlling costs and properly managing inventory space.
Advanced Technology Services, Inc. (ATS) aims at improving productivity and profitability through the managed services of production equipment maintenance, information technology and spare parts repair. Founded in 1985, ATS employs over 1.7QQ people across the U.S. and is a member of the National Association of Manufacturers. ATS is headquartered in Peoria, IL with offices throughout North America. For more information, visit the A/N website at www.AdvancedTech.com.