While enough has been written, lectured and discussed on the subject of MAINTENANCE – it unfortunately remains – The Neglected Factor !

This note was first written in 1990, then updated in 2002 and now again in 2008 with very little change in content; YET it remains relevant. While most of our customers have taken advantage of specialty services offered by us- this may be useful for those who still believe that MAINTENANCE is a high cost department and HAVE YET to create A “DIFFERENT” commercial approach to maintenance buying!

While Maintenance must move from “preventive to predictive and FINALLy to PROACTIVE maintenance” IT REMAINS “primarily reactive” or breakdown oriented!!

Is this by intent, circumstances or plain neglect? It would be unfair to say that Indian Industry and its Managers are unconcerned or are poor planners; BUT the losses on account of downtime and breakdown are amongst the highest productivity – loss areas within Indian Industry. The reason of neglect is perhaps that there is NO TANGIBLE economic connect between “prevention and benefit”. ALL of us are guilty of doing the same with our bodies RISKING PERSONAL HEALTH!! The QUESTION is a paradox, if we were to ASK: IS IT the economic and competitive pressure AND push to consistently seek productivity THAT DRIVES US TO a faster paced lifestyle NEGLECTING prevention inputs for better health OR the OTHER WAY AROUND!!

We require a perceptive change where “prevention MUST be costed in clear economic terms!

Indian Industry has traditionally experienced a high installed cost of capital asset. A high gestation, high import tariffs for machinery, higher interest cost, lower productivity, and LOWER volume from Indian market has resulted in “ the inability to replace and upgrade machinery as per global standards!”

While there has been a dramatic change over the last decade with lowering of costs on most fronts, the LOW cost recovery from low volume output continue. Indian industry MUST insure that the LIFE OF THEIR CAPITAL & PRODUCTIVE equipment is extended to the maximum, and beyond the norm. Only maintenance can insure this.

Over the years our close involvement with maintenance and study of Industry has revealed that the ORGANISATIONAL STRUCTURE & MANAGEMENT ATTITUDE plays a key role in being able to make MAINTENANCE a MAJOR cost – saving centre!

Certain Myths need to be exposed, and these are best revealed through PARADOXES.

It is perhaps difficult to accept that the manufacturer of a machine would perhaps be the least experienced in REPAIR – BREAKDOWN management. This is not a criticism; it is a fact.

The manufacturer is focused on “replacement of parts and machines NOT repair of their components”. For those diligent manufacturers who would consider breakdown maintenance, there are too many variable and diverse operating conditions in different factories & sites for them to take all factors into consideration.

Manufacturers develop and put together their machines using specified components and base metals. The equipment is designed in isolation AND as per laid down specifications that are suited for operations within certain parameters. These are usually based on some norm, with some additional theoretical specifications.

The manufacturing technology rarely incorporates a fully loaded operating FACTORY OR INDUSTRIAL environment where Excess Heat, Vibration, shock, over-usage, dirt, grime & unintentional unskilled handling are the norm!

When a Part or component breaks it cannot be repaired with the simple maintenance logic, that its base metal is similar to its original specification.

A part that has been subjected to vibration, impact, heat, corrosion & wear is substantially changed over time and should be considered to be of an unknown composition . This explains why so many worn or broken parts are thrown away, because they are considered “beyond reliable repair”. This creates huge losses for Industry. This need not be so, because specifically MAINTENANCE ENGINEERED products that factor CHANGE are available.

The consumable that is used for production as specified by O.E, whether a lubricant, coating, welding rod or putty “need not” be considered as always suitable for repair ( because of Paradox-2). Further in this new era of global competition IT IS no longer the responsibility, nor practical for the OE manufacturer to “approve” every product that may be suitable for their product. They would go broke testing products all the time!! ( They now prefer to co-brand for revenue share)

When a Part breaks or wears out, it implies that THE BASE MATERIAL AND DESIGN is technically deficient for the NEW operating environment . Using the same material IS NOT A SOLUTION and at best – a temporary respite. This is indicated by REPEATED AND REGULAR failures ! This is an issue of circumstance, and not the fault of the manufacturer.

Despite the CRITICALITY of maintenance products and their power to save – large costs, it is normal to see companies classify them as General Consumables and purchase them by Tender as per recommended specifications, and at the usual slow pace allotted for “production consumables”.

There is a vast difference between a Maintenance Consumable and a Production Consumable . The latter is used in bulk and must be sourced by spending maximum time based on logic of finding the lowest cost . A Maintenance Consumable is usually an INSIGNIFICANT value purchase (vis-à-vis raw material costs and plant operating costs). They can save a fortune if measured in terms of TIME saved for resumed productivity, salvage of slow moving components. Maintenance products THEREFORE need QUICK DECISION MAKING ABILITIES and SMALL BUDGETS for TRIALS TO CHALLENGE the CURRENT BREAKDOWN & REPLACEMENT NORMS.

Every breakdown is a specific stand alone problem. While there have been advancements in all areas of technology, databases, publications, training and education for Production consumables and products, there are HARDLY ANY specific technologies for MAINTENANCE . Despite the criticality – maintenance has been technologically neglected, which is probably responsible for creating “the attitude of neglect”!

Conventional logic equates & uses the same products that are designed for production, as being suitable for maintenance.

It has been our experience that Maintenance engineers always seems to have a lot of responsibility and accountable pressure BUT LITTLE DISCRETION!

This is a subtle, but critical deficiency. It is not by intent, just an error within organization design where routine systems, production based fiscal controls take vast precedence over maintenance!

Maintenance is a smaller department which is accorded a lower hierarchy despite its criticality, and ability to improve productivity and profits!!

Maintenance products and consumables are infact different to production consumables and require to have an “exceptional purchase process” when compared to production raw materials. A New purchase decision for production and basic raw materials NEED NOT be time critical , because its cost has a recurring Linear impact on final product cost!

Maintenance products and decision making requires a different attitude & Non Linear treatment.

In maintenance the savings are Non Linear as they include Downtime saved and need to be credited with the productivity increase. The PRODUCT price SHOULD NOT be the main issue as is for production products . The inability to create an “exceptional process” means that the industry is denied the opportunity to CHANGE OLD NORMS through new technology & products that can improve the productivity of THE SAME PLANT AND MACHINERY!

A BREAKDOWN by definition is an unscheduled, and an unforecasted event. Most often the repair technology is not a prescribed formula and process – TRIALS AND RISKS ARE A CONCURRENT AND INHERENT part of successful repair and salvage where the PRIOR norms must be challenged.

This is where the “maintenance engineer requires some factor of DISCRETION”. This does not mean an absolute fiscal free hand BUT a small discretion in proportion to the level of revenue loss or contribution the specific machine or process makes to the FINAL product or delivery!

WE see 1000's of components/parts lying in the scrap yard in Industry that can be repaired and reliably salvaged at a fraction of the cost of the new part! But, because of PAST experience, using conventional maintenance consumables, the commercial departments prefer to REPLACE rather than repair. This HIGH COST can be saved if High quality Consumables are used for effective reclamation COMMERCIAL DEPARTMENTS MUST REALISE THE DIFFERENCE BETWEEN PRICE and COST ! Higher price can mean low cost if quality is the ingredient. PRICE and cost are different issues!

“Specifications have minimal relevance in Maintenance'!
This statement would be viewed as a blasphemy by those in inspection BUT

FIRST , we must accept that a part that is old, worn, and subjected to wear is NO LONGER THE SAME COMPOSITION as when it was New!

SECOND – the fact that it failed or wore out implies that the original specification was insufficient for the application or NEW work environment.

THIRD – maintenance conditions are not ideal and as per specifications. How do you get a clean surface, a clean joint, a perfect positioning for repair etc. etc.? Repairs have to be done in-situ, in dirty environments, by unskilled workers.

A production worker becomes a MASTER because he is performing REPETITIVE manufacturing tasks on a production line. A maintenance engineer has to work in site conditions, and be able to perform various tasks impromptu with an assortment of tools, consumables. He must innovate on the spot.

Specifications are thus a minimum production standard. This is important to understand. Specifications are a base level – a minimum need. In this era of global competition and standards, BAD quality does not exist. Most manufacturers conform to a minimum standard. When the operating conditions themselves are above NORM – how can a minimum specification be expected to be the ideal? It is necessary to emphasize once again that this is NOT a criticism, JUST a fact. Standards are required to insure conformity to a basic quality by most manufacturers. They are NOT a guarantee or intended to be indicative of the best or highest in performance!

In Maintenance a minimum standard will just NOT DO!!!

Most in Indian Industry consider maintenance to be a routine function that is preventive. The necessity and importance is accorded – only after breakdown. If Industry does not create learning which distinguishes between PRICE and COST, they stand to lose the benefits of extending maintenance and breakdown intervals. Currently our experience shows that industry starts to consider HIGHER QUALITY products AFTER there is a recurring breakdown!

Since purchase systems for maintenance consumables are similar to raw materials purchase procedures – MAINTENANCE PRODUCTS are clubbed as just another purchase item. The LOSS to Industry is gigantic because the response system and fund allocation within the organization is not designed to be prompt. This is despite the fact that the price & value is INSIGNIFICANT vis-à-vis downtime costs.

1•  The first is to be CONSCIOUS of the existence of above PARADOXES, and then a change in attitude and systems.

2•  The attitude must “ALTER” the system of EVALUATION AND PURCHASE FOR REPAIR AND MAINTENANCE. This must be evaluated regularly by persons with discretion. Here the Key is for management and commercial staff to understand the difference between Price and Cost. The COST must be considered in terms of SAVED PRODUCTION – CONTINUITY of PRODUCTION AND SALVAGE. Price is not relevant because there is no recurring usage!

3•  Progressive Companies must CONTINUOSLY CHALLENGE OLD NORMS of wear and tear and consumable performance. Progressive managers, must ask –

Why should a part keep wearing as per the old norm?
Why can't a bearing work longer than before?
Why should a part be replaced when it can be successfully and permanently repaired?
Why can't a gear box or motor work and last for much longer periods. (they used to in the old days) ?

These norms must be questioned, despite the manufacturers' estimates of equipment or part LIFE.

Repair need not be a “temporary” thing. Times and technology have changed.

4•  Upgrading and using high quality Maintenance products must be seen to SAVE CAPITAL COSTS – when they extend the life of a machine. This is most relevant in India as mentioned earlier where we are unable to RECOVER or AMORTIZE the cost of our capital assets as per global norms. Old machines have to be used LONGER and trouble free to increase the OUTPUT & productivity to afford replacement one day.

5•  Companies should admit that they invest in time & resources when PURCHASING NEW CAPITAL EQUIPMENT. For this there are meetings, overseas trips, training, financial sanctions and loans. BUT there are hardly any senor management reviews and budgets to evaluate CONSUMABLES which can be critical and determine the longevity of EXISTING capital assets.

6•  High quality Consumables are only a REVENUE EXPENSE, but their function is AKIN TO CAPITAL (Straight benefit to bottom line!).

7•  Progressive companies who use HIGH QUALITY products must evaluate the benefit for normal usage – because they usually consider purchase ONLY AFTER BREAKDOWN . THE MAIN BENEFIT AND SAVING IS IN QUICK RECOMMISSIONING OF THE PRODUCTIVE MACHINE – SAVING OF DOWNTIME.

The rule to follow is

BETTER TO HAVE THE PRODUCT AND NOT NEED IT – THAN TO NEED THE PRODUCT AND NOT HAVE IT!

Industry should deal with companies that SUPPLY SMALL QUANTITIES OF MAINTENANCE PRODUCTS – as BULK PURCHASE is not necessary or economical.

There has been repaid advancement in materials, specially with the advent of new formulations and totally new raw materials. There are products SPECIALLY ENGINEERED AND FORMULATED for the Maintenance conditions.

New Technology products actually ALTER THE NORMS. They can offer permanent and LONGER LASTING repairs. Bearings, components and machines can be made to last MUCH longer than the manufacturers' NORM!. There are specialized coatings, lubricants, welding alloys, cleaners and additives, that will outlast and outperform the normal production and O.E. consumables. The products that are used for production are not inferior – they have been specifically designed & priced only for production. New technology maintenance products are different – they are not intended and are not economical for production.

•  Allocating time and patience for NEW PRODUCTS, TRIALS only where the vendor offers regular documentation of such trials.

•  Giving discretion and small risk budgets to maintenance engineers to keep improving the old norms.

•  Review the expense vis-à-vis overall benefits – not absolute terms.

•  Understand Price Vs Cost, and create a more dynamic purchase procedure for MAINTENANCE.

•  Teach commercial staff the difference and create a DESK exclusively for purchase of Maintenance products that increase productivity. ( fortunately not very frequent BUT critical)

If the statistics through NEW TRIALS show a saving – then this approach can be continued theoretically forever, till a UTOPIAN time when there will be no MORE breakdowns and no more savings.

Though there is NO UTOPIA within Industry and this never happens, it is necessary to consistently strive to achieve this, so that the savings and benefits of “MAINTENANCE” are felt by Industry.

Today every factory must believe it “LOSES” money because it has not attempted to IMPROVE the CURRENT NORM to further increase the maintenance and breakdown intervals. Both increase profitability.

MAINTENANCE is perhaps the only area where there is “INFINITE” opportunity to SAVE COSTS. If we agree THEN – can we start by calling MAINTENANCE a PROFIT CENTRE, rather than a COST CENTRE ?

Uday Pasricha
Third Eye Consultancy
up@permaweld.com