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Andrew K S Jardine
ANDREW K. S. JARDINE
University of Toronto, Canada
A.K.S. JARDINE
A.K.S. JARDINE
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Capital Equipment Replacement Chapter 4
WE WANT
FACT-BASED ARGUMENTS
(data driven decisions)
NOT
INTUITION-BASED PRONOUNCEMENTS
A.K.S. JARDINE
A RECENT E-MAIL
Professor Jardine:
My company (XXXXXXX) is one of the largest marine cargo handing firms in
the U.S. We have approx 2400 pieces of rolling stock, mostly powered lift
equipment (stationary cranes, mobile cranes, side & top handlers, forklifts,
etc). We have no corporate strategy on equipment repair/replacement, lease
vs. buy, economic service life, etc. These decisions are based often on
strength of personalities and # of mechanics complaints, not objective
analysis. I'm looking to change that.
On the plus side, we do have a CMMS (Maximo) and 4 years of pretty good
equipment information and cost history. So we have some data to analyze.
I'll be back in my office Sept 18-19, perhaps we could connect then. I'm on
U.S. west coast time (based in XXXXX). Look forward to learning more.
A.K.S. JARDINE
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Capital Equipment Replacement Chapter 4
THE VISIT
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CONCLUSION
We then inputted data from their data base into economic life
software to establish the economic life for a sample asset it
was a Hustler truck - costing about USD 60,000 new.
Company present policy was to replace their Hustlers at about
18 years of age.
The economic life established by using the economic life model
was about 10 years. Cost saving per year was USD 3340.
There were 449 similar vehicles in their fleet.
Therefore total annual saving was estimated at:
USD 3340.00 x 449 = USD 1.5 millions PER YEAR
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Capital Equipment Replacement Chapter 4
MAINTENANCE OPTIMIZATION
A.K.S. JARDINE
Failure Replacement
Cost/Week
Preventive Replacement
Cost/Week
tp
Optimal Value of tp
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Capital Equipment Replacement Chapter 4
BEARING REPLACEMENT
HISTORICAL DATA
12 25 9 13 19
TODAY
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FAILURE DISTRIBUTION
0.06
f(t) 0.05
0.04
0.03
0.02
0.01
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
TIME
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Risk curve
Economics (Cf & Cp)
Blend to establish the
optimal tp
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Capital Equipment Replacement Chapter 4
MG707
FAILURE REPLACEMENT
New Today
Failure intervals (F) 7979 h, 2027 h
Suspension interval (S) 9671 h
A.K.S. JARDINE
COST DATA
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Capital Equipment Replacement Chapter 4
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A SCOOP A TRUCK
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COMPONENTS ANALYZED
MAJOR COMPONENTS
SCOOP TRUCK
Engine Engine
Front Axle Front Axle
Rear Axle Rear Axle
Transmission Transmission
Bucket
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COMPONENTS ANALYZED
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Capital Equipment Replacement Chapter 4
695
parts
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10000
Chronic
100
Chronic A
10
Normal Chronic B
1
1 10 100 1000
Failure Frequency
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Capital Equipment Replacement Chapter 4
Failure Replacement
Cost/Week
Preventive Replacement
Cost/Week
tp
Optimal
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CRITICAL/EMERGENCY/CAPITAL SPARES
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Capital Equipment Replacement Chapter 4
REPAIRABLE SPARES
SYSTEM
STOCK
OUT OF STOCK
REPAIR SHOP
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Number of motors 62
SCENARIO
Planning Horizon 1825 Days (5 years)
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MAINTENANCE OPTIMIZATION
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HEART FAILURE
EQUIPMENT FAILURE
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Capital Equipment Replacement Chapter 4
Simple to understand
Limitations: Alarm > 300ppm
o Which measurements?
o Optimal limits? Warning > 200ppm
o Effect of Age?
o Predictions? Normal < 200ppm
o Consequence of failure
CBM optimization extends
and enhances the Control
Chart technique
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Capital Equipment Replacement Chapter 4
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MAINTENANCE OPTIMIZATION
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Technological Improvement
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MAINTENANCE
DOWNTIME
$$
OPERATIONS
INVENTORY
DEPRECIATION
TIME
Source: H. Greene & R.E. Knorr, Managing Public Equipment, American Public Works Association, Kansas City, 1989.
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Capital Equipment Replacement Chapter 4
Cp,1 Cp,2 Cp,3 Cp,T Ct,1 Ct,2 Ct,3 Ct,n Ct,1 Ct,2 Ct,3 Ct,n
Today
A.K.S. JARDINE
Cp,1 Cp,2 Cp,3 Cp,T Ct,1 Ct,2 Ct,3 Ct,n Ct,1 Ct,2 Ct,3 Ct,n
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Capital Equipment Replacement Chapter 4
THE SOLUTION
Cp,1 Cp,2 Cp,3 Cp,T Ct,1 Ct,2 Ct,3 Ct,n Ct,1 Ct,2 Ct,3 Ct,n
Note: n = 11 yrs
A.K.S. JARDINE
MINIMUM
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Capital Equipment Replacement Chapter 4
Source: B.S. Blanchard and W.J. Fabrycky, Systems Engineering and Analysis, Prentice Hall, 1990
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MAINTENANCE MANAGEMENT
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REFERENCES
A.K.S. JARDINE
THANK YOU
ANDREW JARDINE
jardine@mie.utoronto.ca
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