Is Repairs And Maintenance A Production Cost

Maintenance Policy and Repair

Introduction

Establish and machinery in the initial days always perform to their fullest chapters but as fourth dimension goes with regular wear and tear, this becomes increasingly difficult. If proper and regular maintenance is undertaken than production chapters tin be maintained at a more than or less aforementioned level. Maintenance as well requires replacement decisions. Replacement is a substitution of existing fixed asset with a new nugget, which may enhance features capable of performing similar function. The need for replacement may ascend considering of normal utilise, obsolescence, early on service failure, destruction, etc.

Maintenance

Maintenance is defined equally a procedure in which working status of plant or machinery is maintained at the optimum level as to give maximum output. Maintenance is washed through repair, partial replacement and full replacement. Following is the significance of the maintenance policy:

Maintenance policy ensures that equipments are always in fix and reliable status. This ensures company is able respond to whatever sudden change in need.
Maintenance policy ensures that equipments are ever calibrated to provide practiced-quality products and competitive advantage. This ensures that there are no sudden and frequent breakdowns and reduce production of defective products.
Maintenance policy ensures that there are no major breakdowns. This ensures in that location is no lose of inventory or market place share for companies post-obit JIT philosophy.
Maintenance policy ensures that costs are always controlled.
Maintenance policy is peculiarly important in capital-intensive industries.

If organizations are non able to implement an effective maintenance policy than it can result in the following results:

Full capacity utilization may non exist achieved.
Increment in production price as fixed labor cost cannot exist reduced.
Increase in maintenance toll as more than spare parts are required.
Reduction in product quality and increase in wastage.
Safety of workers and operators in jeopardy.

Maintenance Management

Maintenance management is procedure where bachelor resources are regulated in a mode that constitute and mechanism tin perform at specific levels. Maintenance management involves planning, scheduling and execution of maintenance-related activities. The main objectives of the maintenance management are as follows:

Minimum level of production loss and minimum incidence of breakdown.
Minimum level of wastage.
Optimum usage of maintenance equipment and personnel.
Quality of production is improved.

Planning and Scheduling

The maintenance section is responsible with planning and scheduling of maintenance in line with the requirement and expectation of the organization. Planning and scheduling needs to ensure that business organization as usual is not disturbed.

The following are key points to plan maintenance:

Identify the equipment for maintenance and technique for maintenance.
Categorize maintenance into routine, priority and emergency.
Programme maintenance because price, time, infinite etc
Fabric planning for maintenance requirements.
Budget time and money requirements.

The need to schedule maintenance tin can exist all-time described as follows:

To optimize usage of plant, machinery and tools.
To optimize usage of manpower in maintenance.
To ensure smooth production flow.

From above it can safely be concluded that it is very disquisitional for company to have a robust and effective maintenance and repair policy.

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