4.vehicle and equipment replacement policy.pptx

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Fleet Maintenance Management 1 MV 7121 Col (Prof) James K Varkey 24-03-2015

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Fleet Maintenance Management1MV 7121Col (Prof) James K Varkey24-03-2015

Syllabus

Introduction to Fleet MaintenanceTheory of Failure and ReliabilityMaintenance Operation and ControlVehicle and Equipment Replacement StrategyVehicle Maintenance Policy and StrategyVehicle Maintenance ProgrammeVehicle Maintenance PlanningMaintenance ProductivityImplementation Steps of PMComputerized Vehicle Maintenance ManagementTotal Productive MaintenanceReliability Cantered Maintenance

Fleet Maintenance Management2Maintenance Operation and Control

RevisionIntroduction Maintenance Control Cycle Maintenance Work order System Design of Work order Work order System flow Record Keeping Job card (report) Equipment History Record Structure of Maintenance Control Work order Coordination and Planning Work order Processing Information Feedback and Corrective Action Work Control Cost Control Quality Control Plant Condition ControlFleet Maintenance Management3Fleet Maintenance Management4Vehicle and Equipment Replacement StrategyIntroductionReplacement of machinery and equipment Causes of replacement Establishing the need for replacement Replacement of items whose efficiency deteriorates with time Replacement of items that fail completelyIndividual replacement policyGroup replacement policy

Fleet Maintenance Management5Vehicle and Equipment Replacement StrategyIntroductionThe performance of all vehicle and equipment deteriorate with time and usage. The deterioration will be gradual due to wear and tear and the wear out parts require repair or replacement. The consumption of fuel, various lubricants increases, for e.g. the oil consumption of vehicles will increases when the piston rings/cylinders worn out. As a result the cost of operating the equipment progressively increases. At the same time the its failure rate, repair effort as well as the down time increases. In other words, the equipment reliability decreases leading to decline in its availability to end users. At some critical time the vehicle/equipment require replacement.Fleet Maintenance Management6Vehicle and Equipment Replacement StrategyIntroductionThus quality of services from a vehicle/ equipment declines due to wear out, becomes technologically outdated or requires repetitive or ongoing maintenance. In general every equipment has three lives:It has Service life, which is the amount of time the vehicle/ equipment is capable of rendering its intended service.It has a Technological life which represents the relative productivity decline of the unit as compared to newer models. It has the Economical life, which is the length of time the average cost of operation is at a minimum.Fleet Maintenance Management7Vehicle and Equipment Replacement Strategy

Fleet Maintenance Management8Vehicle and Equipment Replacement StrategyCauses of Replacement

The vehicle /equipment will be evaluated by the following criteria for replacement: Age Mileage/Hour of operation Maintenance costCondition of body and mechanical components Vibration and sound

There may be cases where new technology or features on the new equipment might increase productivity or provide other benefits and improve the efficiency. Fleet Maintenance Management9Vehicle and Equipment Replacement StrategyQuestions generally arise before replacement action

Is the vehicle being fully utilized? If the vehicle is not being used to its full capacity, why replace it? If it does need to be replaced, is the current specification of the vehicle appropriate? Would a different vehicle be better suited for the particularapplication? Are there any secondary uses for the vehicle?Fleet Maintenance Management10Vehicle and Equipment Replacement StrategyTwo basic categories of Fleet expense: Fixed and variableFixed expense: Depreciation, Lease or Purchase outright Variable expense: Fuel, Maintenance and repairTires BatteryOils and lubricants

Fleet Maintenance Management11Vehicle and Equipment Replacement StrategyAssesses utility and operating expenses throughout the working life of the equipment.The process includes the valuation of equipment availability, service, resale value and downtime or rental expense for replacement equipment.When the cost for these factors are determined, the most economical vehicle method provides the lowest net cost.

Life-CycleFleet Maintenance Management12Vehicle and Equipment Replacement StrategyLife-cycle cost analysis enables management to evaluate new equipment purchases and determine if it is more economical to retain equipment. Economic replacement follows these premises:As the unit ages average maintenance and operating cost increase.As a unit grows older, investment cost decrease.There is a point in the equipments life at which the total average cost is minimum. This is the optimum economic life point Life-CycleFleet Maintenance Management13Vehicle and Equipment Replacement StrategyCAPITALOPERATINGTOTALCOST**TIME/USAGEEconomic Reality Of Vehicle ReplacementFleet Maintenance Management14Vehicle and Equipment Replacement StrategyDeferred vehicle replacement is the key factor behind the increase in maintenance expenses.More expensive repairs due to aging inventory.Older fleets were incrementally impacted by a spike in unscheduled, higher cost of maintenance.Increased downtimeFleet Maintenance Management15Vehicle and Equipment Replacement StrategyPreventive MaintenanceA preventive maintenance program reduces the overall cost of the fleet maintenance and repair, enables vehicles to reach their economic service life, increases the residual or salvage value of the vehicle, and enhances the performance. One of the most important considerations in developing a fleet replacement program is understanding the concept of lifecycle costs. As vehicles age, certain costs, such as maintenance and repair, tend to increase while other costs, such as depreciation, tend to decrease. When the sum of these and all other ownership/ leasing and operating costs reaches a minimum, the economic life is reached. Quantifying and analyzing these costs is known as economic lifecycle analysis.Fleet Maintenance Management16Vehicle and Equipment Replacement StrategyProperly maintaining equipment has proven not only financial savings but it can reduce emissions.By utilizing a regular Preventative Maintenance schedule the vehicles/equipment last longer and run more efficiently.Fleet Maintenance Management17Vehicle and Equipment Replacement StrategyVehicle Replacement Plan Life Cycle Cost Analysis Project Long-Term Replacement (5 Year Plan) Extended Warranties (5 years 100,000 Miles) Advanced Design & Technologies Lower Cost per Mile/Hour Vehicle/Equipment Availability % Reduced Downtime (track downtime) Reduce OvertimeProactive not Reactive

Fleet Maintenance Management18Vehicle and Equipment Replacement StrategyPlanning the fleets replacement cycle pays dividends in:Decreased maintenance costs and downtimeLower frequency of major repairsLower frequency of unplanned maintenance eventsMore repairs covered under warrantyThe typical parameters included in such analyses includethe following: Acquisition costs. Estimated salvage value. Cost of money. Maintenance costs. Operating costs. Age or miles to date. Downtime cost. Obsolescence cost.Fleet Maintenance Management19Vehicle and Equipment Replacement StrategyReplacement of items whose efficiency deteriorates with time.

Certain parts/components likely to wear out fast and their efficiency decreases with time.For example- Break shoe liner Rubber parts Oil Grease Fan Belt Spark plug

It is advisable to replace such components/parts at the interval recommended by manufacturers

Fleet Maintenance Management20Vehicle and Equipment Replacement StrategyReplacement of items that fail completely.

Complete failure occurs when the intended purpose has not met. This can happen some critical part failed to perform.

This may be due to: Poor installationBad quality of material usedPoor workman shipManufacturing defectImproper use

Depreciation and maintenance are two direct costs that should be considered when deciding when to replace a vehicle. Fleet Maintenance Management21Vehicle and Equipment Replacement StrategyReplacement of items that fail completely.For example, wheel bearing of one wheel failed.Question arises:Whether to replace all wheel bearing or the one that has failed.After some time other wheel bearings fails

Now the question is whether to replace the vehicle itself.If this defect has noticed in more than one vehicle, the solution may be to replace all vehicles of that batch of vehicle used that particular lot of bearing.

Depreciation and maintenance are two direct costs that should be considered when deciding when to replace a vehicle. Fleet Maintenance Management22Vehicle and Equipment Replacement StrategyFleet Maintenance Management23Vehicle and Equipment Replacement Strategy