As You Have Learned From Your Reading Knowing When A Part

As You Have Learned From Your Reading Knowing When A Part Or System W

As you have learned from your reading, knowing when a part or system will fail is important for a company. Mean time between failures (MTBF) is the expected time between failures of a part, process, or system and is a common matrix for a firm to use to understand how often a failure will occur. Assume that you are the manager of a production line and are responsible for keeping the machines running 24 hours per day, 365 days per year. When a machine breaks, it must be repaired and put back onto operation as soon as possible. The problem is that your machines are always breaking down, and you really do not have a good understanding of how often a machine breaks down.

Paper For Above instruction

Introduction

Effective management of manufacturing operations requires a detailed understanding of machine reliability and maintenance strategies. The concept of mean time between failures (MTBF) provides critical insight into machine performance, helping managers optimize maintenance schedules, minimize downtime, and reduce costs. This paper explores the calculation of MTBF through real-world data, evaluates the financial implications of various maintenance approaches, and offers strategic recommendations to improve operational efficiency.

Calculating MTBF Using Excel

The first step involves analyzing the collected failure data of machines over a 120-hour testing period. Starting with 75 operational machines, failures were recorded at specific intervals: at 40, 50, and 90 hours, indicating that three machines failed during this period. To calculate the MTBF, the total operational hours are divided by the number of failures, considering the distribution of failures.

Specifically, the total operational time before each failure can be summed, and the average time between failures (MTBF) determined as follows:

Total operational hours per machine during the test:

- Machine 1 failed at 40 hours.

- Machine 2 failed at 50 hours.

- Machine 3 failed at 90 hours.

Using Excel, these data points can be inputted as failure times, and the MTBF calculated by averaging the time between failures across all machines that failed. Given that each failure occurs at distinct times, the calculation considers the sum of these intervals divided by the number of failures:

\[

MTBF = \frac{40 + (50-40) + (90-50)}{3} \approx \text{Calculated value}

\]

This approach helps estimate how long, on average, a machine operates before experiencing failure, providing a foundation for further analysis.

Analyzing Failure Data and Maintenance Costs

Understanding the failure rate allows for estimating maintenance costs and planning resource allocation. The next step involves evaluating the frequency of breakdowns based on actual observed data over the past year. The recorded breakdowns—0, 1, 2, or 3 per month—offer insights into the typical failure patterns, critical for cost analysis.

The breakdown data from the last 12 months are:

- 1 month with zero breakdowns,

- 7 months with one breakdown,

- 4 months with two breakdowns,

- 1 month with three breakdowns.

Using Excel, these frequencies help calculate the average number of breakdowns per month, which influences maintenance cost planning. Given that the average cost per breakdown is $350, the monthly breakdown cost can be estimated.

In addition, the cost of preventive maintenance (PM) services from an external firm, at $200 per month, is evaluated against the baseline costs. The firm reports that even with PM, the machines are expected to experience an average of 2 breakdowns per month. This information allows comparing the expected total costs with and without external maintenance service.

Cost-Benefit Analysis for Maintenance Strategies

The analysis compares the current breakdown maintenance costs to the projected costs with external PM services. Calculations involve:

- Estimating total breakdown costs per month (number of breakdowns × cost per breakdown),

- Including the fixed monthly PM service fee to determine total costs under each strategy.

For the current scenario:

\[

Expected breakdowns per month = \frac{\text{Total breakdowns over 12 months}}{12}

\]

- Total breakdowns over 12 months = \( (1×7) + (2×4) + (3×1) = 7 + 8 + 3 = 18 \)

- Average breakdowns per month = \( 18 / 12 = 1.5 \)

Expected annual breakdown cost:

\[

1.5 \text{ breakdowns/month} \times \$350 \times 12 \text{ months} = \$6,300

\]

Monthly breakdown cost:

\[

\$6,300 / 12 = \$525

\]

Total annual breakdown cost:

\[

\$525 \times 12 = \$6,300

\]

With preventative maintenance:

- Fixed monthly cost = $200.

- Expected breakdowns per month = 2.

- Expected breakdown cost:

\[

2 \times \$350 = \$700

\]

- Total monthly cost:

\[

\$200 + \$700 = \$900

\]

- Total annual maintenance cost:

\[

\$900 \times 12 = \$10,800

\]

The comparison shows the costs under each approach:

| Maintenance Option | Annual Cost | Remarks |

|----------------------|--------------|---------|

| Current Breakdown Maintenance | \$6,300 | Lower cost, but higher downtime risk |

| Preventive Maintenance (PM) | \$10,800 | Higher upfront and ongoing costs, but reduced downtime |

Recommendation and Strategic Decisions

Considering the cost analysis, continuing with the current breakdown maintenance approach appears more economical if cost savings are prioritized. However, this strategy involves higher risk of unplanned downtime, which can disrupt production schedules and lead to hidden costs not captured in simple financial calculations.

Alternatively, employing external preventive maintenance offers less downtime and potentially higher reliability but at a significantly higher cost. The decision depends on the company's tolerance for downtime and operational priorities. If minimizing operational disruptions is critical, investing in PM services might be justified, especially if hidden costs of downtime exceed direct maintenance costs.

A balanced approach recommends implementing predictive maintenance strategies combined with data analytics to refine failure predictions further. Modern IoT sensors and condition monitoring can provide real-time data to optimize maintenance scheduling, thus reducing costs and downtime simultaneously. The choice ultimately hinges on strategic priorities: cost minimization versus operational reliability.

Conclusion

Understanding and accurately calculating the MTBF helps management make informed decisions about maintenance strategies. The detailed cost comparison illustrates that while preventive maintenance incurs higher upfront costs, it can reduce unplanned downtime, potentially offsetting expenses through improved operational efficiency. Companies should leverage data-driven maintenance planning to maximize reliability while controlling costs, aligning maintenance policies with their strategic goals.

References

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