1.1.

1 BME 355 Maintenance Management (3, 3, 3)

General Objectives:

 To provide students an insight into the concepts of maintenance management and types.
 To familiarize the students with lubrication in maintenance, and machine health
monitoring.
 To introduce students to reliability, availability and maintainability.

Performance objectives

Maintenance Engineering

1. Introduction -Fundamentals of Maintenance Engineering. Maintenance Engineering its

importance in material & energy conservation, inventory control, productivity, safety,
pollution control etc.
2. Safety Regulations, pollution problems, human reliability, total quality management
(TQM), total productivity maintenance (TPM), environmental issues in maintenance, ISO
9000.

Maintenance Management

Maintenance Management - types of maintenance strategies, Planned and unplanned

maintenance, breakdown, preventive & predictive maintenance. Their comparison,
advantages & disadvantages. Limitations, computer aided maintenance, maintenance
scheduling, spare part management, inventory control, organisation of maintenance
department.

Lubrication in Maintenance

Tribology in Maintenance, friction wear and lubrication, friction & wear mechanisms,
prevention of wear, types of lubrication mechanisms, lubrication processes. Lubricants -
types, general and special purpose, additives, testing of lubricants, degradation of lubricants,
seal and packing.

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Maintenance Health Monitoring

Machine Health Monitoring - Condition based maintenance, signature analysis, oil analysis,
vibration, noise and thermal signatures, on line & off line techniques, Instrumentation &
equipment used in machine health monitoring. Instrumentation in maintenance, signal
processing, data acquisition and analysis, application of intelligent systems, data base design.

Reliability, availability & maintainability (RAM) Analysis

Reliability, availability & maintainability (RAM) Analysis - Introduction to RAM failure

mechanism, failure data analysis, failure distribution, reliability of repairable and non-
repairable systems, Improvement in reliability, reliability testing, reliability prediction,
utilization factor, system reliability by Monte Carlo Simulation Technique.

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 Maintenance Management

According to the British standards glossary of terms, Maintenance is the combination of all
technical and administrative actions, including supervision actions, intended to retain an item in,
or restore it to, a state in which it can perform a required function.

Maintenance can also be defined as a set of organised activities that are carried out in order to
keep an item in its best operational condition with minimum cost acquired.

Once equipment is designed, fabricated and installed, the operational availability of the same
is looked after by the maintenance requirement. The idea of maintenance is very old and was
introduced along with inception of the machine. In the early days, a machine was used as long as
it worked. When it stopped working, it was either repaired/serviced or discarded.
The high cost sophisticated machines need to be properly maintained/serviced during their
entire life cycle for maximizing their availability. The development of mechanization and
automation of production systems and associated equipment, with the accompanying
development of ancillary services and safety requirements, has made it mandatory for engineers
to think about proper maintenance of equipment.
Maintenance function also involves looking after the safety aspects of certain equipment
where the failure of component may cause a major accident. For example, a poorly maintained
pressure vessel such as steam boiler may cause a serious accident.

Maintenance Management

Maintenance Management is defined as the organization of maintenance within an agreed policy.

Maintenance Policy

Maintenance Policy is a statement of principle used to achieve maintenance objectives and guide
Maintenance Management decision making.

Maintenance policy may be grouped in four main parts thus:

 Policies with respect to work allocation

 Policies with respect to workforce

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  Policies with respect to interplant relations

 Policies with respect to control

Maintenance Objectives

Maintenance objectives should be consistent with and subordinate to production goals. The
relation between maintenance objectives and production goals is reflected in the action of
keeping production machines and facilities in the best possible condition. Below are maintenance
objective points.

• Maximising production or increasing facilities availability at the lowest cost and at the
highest quality and safety standards.

• Reducing breakdowns and emergency shutdowns.

• Optimising resources utilisation.

• Reducing downtime.

• Improving spares stock control.

• Improving equipment efficiency and reducing scrap rate.

• Minimising energy usage.

• Optimising the useful life of equipment.

• Providing reliable cost and budgetary control.

• Identifying and implementing cost reductions.

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Need For Maintenance

One of the factors that can ensure availability of installed facilities for efficient use is an
effective and efficient maintenance engineering system. Gone were the days when maintenance
was not given adequate attention. For any company with mechanized and automated systems,
more attention is now given to maintenance function. Therefore, the need for maintenance
increases with technological advancement in production facilities. Other factors which seem to
emphasize the need for effective maintenance system are:
(i) Strong competition (ii) tight production schedules (iii) increased machine utilization
(iv) increased production level
Inadequate or lack of effective and efficient maintenance system especially in a manufacturing
enterprise gives rise to several undesirable consequences. These consequences include:
i. Excessive machine breakdown
ii. Frequent emergency maintenance work
iii. Shortened life-span of the facility
iv. Poor use of maintenance staff
v. Loss in production output
vi. Inability to meet delivery dates
vii. Excessive overtime
viii. Loss of lives
These factors may contribute to high costs of production and consequently loss in profitability.

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Functions of Maintenance Engineering

The function of maintenance engineering can be divided into primary and secondary:
The primary functions of maintenance are:
i. Maintenance of existing machines and equipment
ii. Maintenance of existing buildings
iii. Inspection and lubrication of machine and equipment
iv. Generation and distribution of utilities e.g. water, electricity etc.
v. Installation of new machines and equipment
vi. Modifications of existing machines, equipment and buildings
The secondary functions include the following:
i. Sanitation
ii. Disposal of used items
iii. Storekeeping
iv. Fire protection
v. Janitorial service

Asset

Unlike in the accounting definition, in maintenance this is commonly taken to be any item of
physical plant or equipment. It is the basic unit of maintenance.

Terotechnology

Terotechnology is a word derived from the Greek root word "tero" or "I care", that is now used
with the term "technology" to refer to the study of the costs associated with an asset throughout
its life cycle - from acquisition to disposal. The goals of this approach are to reduce the different
costs incurred at the various stages of the asset's life and to develop methods that will help
extend the asset's life span.
Terotechnology uses tools such as net present value, internal rate of return and discounted cash
flow in an attempt to minimize the costs associated with the asset in the future. These costs can
include engineering, maintenance, wages payable to operate the equipment, operating costs and

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even disposal costs. Also known as "life-cycle costing". Terotechnology is multidisciplinary
approach to obtaining maximum economic benefit from physical assets. Developed in the UK in
the early 1970s, it involves systematic application of engineering, financial, and management
expertise in the assessment of the lifecycle impact of an acquisition (buildings, equipment,
machines, plants, structures) on the revenues and expenses of the acquiring organization.
Practice of terotechnology is a continuous cycle that begins with the design and selection of the
required item, follows through with its installation, commissioning, operation, and maintenance
until the item's removal and disposal and then restarts with its replacement.
The activities of the maintenance department cannot be totally described by the term
‘maintenance’.
In order to describe vividly the functions of the maintenance department, the word
‘Terotechnology’ was coined.
The practice of terotechnology is concerned with the specification and design for reliability and
maintainability of plant, machinery, equipment, buildings and structures together with their
installation, commissioning, maintenance, modification, and replacement, and with feedback of
information on design, performance, and costs.
Terotechnology's division is the operations team that carries out the daily operations of Facilities
Management Services which optimize assets with professional Facilities Management and
Operation
& Maintenance (O&M) Services for Mechanical & Electrical (M & E) Systems, Civil Works,
Landscape, Janitorial and other facility specialization. Rather than bearing addition business
burdens, a 'single point responsibility' through direct maintenance, subcontract & vendor
management will save time, money and effort.

Effects of maintenance

Maintenance, being an important function in any production system, has far reaching effects on
the system. If the right practice of maintenance is not established for a particular environment, it
may lead to serious problem of either over maintenance or under maintenance. The selection of a
particular maintenance policy is also governed by the past history of the equipment. Cost

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effective maintenance will help in enhancing productivity. It is therefore, is important for the
team associated with maintenance work, to know how much to maintain.

The nature of the maintenance function affects the life of equipment. It is known from
experience that optimum maintenance will prolong the life of the equipment, and on the other
hand, carelessness in maintenance would lead to reduced life of the equipment and in some cases
an early failure as well. Further, proper maintenance will help to achieve the production targets.
If the availability of the equipment in good working condition is high, the reliability of the
production will also be high. Another important effect of the maintenance function is the
working environment.

If the equipment is in good working condition, the operator feels comfortable to use it otherwise
there is a tendency to let the equipment deteriorate further. To get the desired results in
maintenance operations, there should be selective development of skilled, semiskilled, and
unskilled labour. And also proper job description is required for the jobs in order to make full use
of skilled workforce available.

Types of maintenance systems

Breakdown Maintenance:
Breakdown maintenance is referred to by many different names: reactive maintenance, repair, fix
when-fail, and run-to-failure (RTF) maintenance. When applying this maintenance strategy, a
piece of equipment receives maintenance (e.g., repair or replacement) only when the
deterioration of the equipment’s condition causes a functional failure. The strategy of breakdown
maintenance assumes that failure is equally likely to occur in any part, component, or system.
Thus, this assumption precludes identifying a specific group of repair parts as being more
necessary or desirable than others. The major downside of breakdown maintenance is
unexpected and unscheduled equipment downtime. If a piece of equipment fails and repair parts
are not available, delays occur while the parts are ordered and delivered. If these parts are
urgently required, a premium for expedited delivery must be paid. If the failed part is no longer
manufactured or stocked, more drastic and expensive actions are required to restore equipment

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function. Cannibalization of like equipment or rapid prototyping technology may satisfy a
temporary need but at substantial cost. Also, there is no ability to influence when failures occur
because no (or minimal) action is taken to control or prevent them. When this is the sole type of
maintenance practiced, both labour and materials are used inefficiently.
Labour resources are thrown at whatever breakdown is most pressing. In the event that several
breakdowns occur simultaneously, it is necessary to practice a kind of maintenance in an attempt
to bring all the breakdowns under control. Maintenance labour is used to “stabilize” (but not
necessarily fix) the most urgent repair situation, then it is moved on to the next most urgent
situation, etc. Replacement parts must be constantly stocked at high levels, since their use cannot
be anticipated. This incurs high carrying charges and is not an efficient way to run a storeroom.
A purely reactive maintenance program ignores the many opportunities to influence equipment
survivability.

Preventive Maintenance (PM):

Maintenance repairs performed on a regular schedule to minimize component degradation and

extend the life of equipment. Preventive maintenance is performed after a set amount of elapsed
calendar time or machine run time, regardless of whether the repair is needed. While more cost
effective than reactive maintenance, preventive maintenance still requires substantial human
resources and replacement parts inventories.
It may be a daily maintenance (cleaning, inspection, oiling and re-tightening), designed to retain
the healthy condition of equipment and prevent failure through the prevention of deterioration,
periodic inspection or equipment condition diagnosis, to measure deterioration. It entails
understanding and maintaining all the physical elements of manufacturing-machine components,
equipment, and systems- so that they consistently perform at all levels required of them. Such
maintenance is usually scheduled by providing for monitoring inspections and special operating
procedures.
The intent of PM is to “prevent” maintenance problems or failures before they take place by
following routine and comprehensive maintenance procedures. The goal is to achieve fewer,
shorter, and more predictable outages.

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Advantages of PM
1. It is predictable, making budgeting, planning, and resource levelling possible.
2. When properly practiced, it generally prevents most major problems, thus reducing forced
outages, “reactive maintenance,” and maintenance costs in general.
3. It assures managers that equipment is being maintained.
4. It is easily understood and justified.

Disadvantages of PM
1. It is time consuming and resource intensive.
2. It does not consider actual equipment condition when scheduling or performing the
maintenance.
3. It can cause problems in equipment in addition to solving them (eg. damaging seals, stripping
threads).
It is further divided into periodic maintenance and predictive maintenance. Just like human life is
extended by preventive medicine, the equipment service life can be prolonged by doing
preventive maintenance.

a. Periodic Maintenance (Time based maintenance - TBM):

Time based maintenance consists of periodically inspecting, servicing and cleaning equipment
and replacing parts to prevent sudden failure and process problems.

b. Predictive Maintenance:
This is a method in which the service life of important part is predicted based on inspection or
diagnosis, in order to use the parts to the limit of their service life. Compared to periodic
maintenance, predictive maintenance is condition based maintenance. Predictive maintenance
programs measure equipment on a regular basis, track the measurements over time, and take
corrective action when measurements are about to go outside the equipment operating limits.
Repairing equipment as-needed requires fewer man-hours and parts than preventive
maintenance.
However, tracking the measurements requires new tools, training, and software to collect and
analyze the data and predict repair cycles. It manages trend values, by measuring and analyzing

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data about deterioration and employs a surveillance system, designed to monitor conditions
through an on-line system.

Corrective Maintenance:
It improves equipment and its components so that preventive maintenance can be carried out
reliably. Equipment with design weakness must be redesigned to improve reliability or
improving maintainability.

Condition Based Maintenance

The condition of the equipment or some critical parts of the equipment are continuously
monitored using sophisticated monitoring instruments so that failure may be predicted well
before it occurs and corrective steps are taken to prevent failure.

Design out Maintenance

A design out maintenance is a design oriented curative means aimed at rectifying a design defect
originated from improper method of installation or poor choice of materials etc. It calls for strong
design and maintenance interface. Design out maintenance aims to eliminate the cause of
maintenance.

Opportunistic Maintenance
When equipment is taken down for maintenance of one of few worn out parts, the opportunity
can be utilized to change or maintain other parts which are wearing out even though they have
yet to fail.
This maintenance strategy is for non-monitored components.

Proactive Maintenance
Unlike the three type of maintenance strategies which has been discussed earlier, proactive
maintenance can be considered as another new approach to maintenance strategy. Dissimilar to

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preventive maintenance that based on time intervals or predictive maintenance that based on
condition monitoring, proactive maintenance concentrate on the monitoring and correction of
root causes to equipment failures. The proactive maintenance strategy is also designed to extend
the useful age of the equipment to reach the wear-out stage by adaptation a high mastery level of
operating precision.

Planned Maintenance: “The maintenance organized and carried out with forethought, control
and the use of records to a predetermined plan.”

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Opportunistic Maintenance: – In multi component system, several failing components, often it
is advantageous to follow opportunistic maintenance. When an equipment or system is taken
down for maintenance of one or few worn out component, the opportunistic maintenance can
utilize for maintaining or changing other wear out components, even though they are not failed.
-It is actually not a specific maintenance system, but it’s a system of utilizing an opportunity
which may come up any time.

Emergency maintenance: It is carried out as fast as possible in order to bring a failed machine
or facility to a safe and operationally efficient condition.

Routine maintenance which includes those maintenance activities that are repetitive and
periodic in nature such as lubrication, cleaning, and small adjustment.

Running maintenance which includes those maintenance activities that are carried out while the
machine or equipment is running and they represent those activities that are performed before the
actual preventive maintenance activities take place.

Opportunity maintenance which is a set of maintenance activities that are performed on a

machine or a facility when an unplanned opportunity exists during the period of performing
planned maintenance activities to other machines or facilities.

Window maintenance which is a set of activities that are carried out when a machine or
equipment is not required for a definite period of time.

Shutdown preventive maintenance which is a set of preventive maintenance activities that are
carried out when the production line is in total stoppage situation.

Remedial maintenance which is a set of activities that are performed to eliminate the source of
failure without interrupting the continuity of the production process.

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Deferred maintenance which is a set of corrective maintenance activities that are not
immediately initiated after the occurrence of a failure but are delayed in such a way that will not
affect the production process.

Shutdown corrective maintenance which is a set of corrective maintenance activities that are
performed when the production line is in total stoppage situation.

Design-out maintenance which is a set of activities that are used to eliminate the cause of
maintenance, simplify maintenance tasks, or raise machine performance from the maintenance
point of view by redesigning those machines and facilities which are vulnerable to frequent
occurrence of failure and their long term repair or replacement cost is very expensive.

Engineering services which includes construction and construction modification, removal and
installation, and rearrangement of facilities.
Shutdown improvement maintenance which is a set of improvement maintenance activities
that are performed while the production line is in a complete stoppage situation.

Predictive maintenance is a set of activities that detect changes in the physical condition of
equipment (signs of failure) in order to carry out the appropriate maintenance work for
maximizing the service life of equipment without increasing the risk of failure.
It is classified into two kinds according to the methods of detecting the signs of failure:
– Condition-based predictive maintenance
– Statistical-based predictive maintenance
• Condition-based predictive maintenance depends on continuous or periodic condition
monitoring equipment to detect the signs of failure.
• Statistical-based predictive maintenance depends on statistical data from the meticulous
recording of the stoppages of the in-plant items and components in order to develop models for
predicting failures.
The drawback of predictive maintenance is that it depends heavily on information and the
correct interpretation of the information.
Some researchers classified predictive maintenance as a type of preventive maintenance.

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The main difference between preventive maintenance and predictive maintenance is that
predictive maintenance uses monitoring the condition of machines or equipment to determine the
actual mean time to failure whereas preventive maintenance depends on industrial average life
statistics.

Reliability Centered Maintenance

It is used to identify the maintenance requirements of equipment. The RCM establishes the functional
requirements and the desired performances standards of equipment and these are then related to
design and inherent reliability parameters of the machine.
For each function, the associated functional failure is defined, and the failure modes and the
consequences of the functional failures are analyzed.
The consequences of each failure are established, which fall in one of the four categories: hidden,
safety or environmental, operational, and no operational. Following the RCM logic, preemptive
maintenance tasks which will prevent these consequences are selected, provided the applicability and
effectiveness criteria for preventive maintenance are satisfied.
The applicability requirements refer to the technical characteristics and effectiveness criteria for
preventive maintenance tasks and the frequency at which these should be carried out.
Effectiveness criteria depend on the consequences of the failure; probabilities of the multiple failures
for hidden failure consequences, acceptable low risk of failure for safety consequences, and
nonoperational consequences. When the requirements for planned maintenance (PM) are not
fulfilled, default tasks include failure finding (for hidden failure, possible redesign of equipment,
procedures and training processes) and no-schedule maintenance.

Challenges in Maintenance

The maintenance function of a modern industry faces a number of challenges attributable to:
Rapid growth of technology resulting in current technology becoming obsolete. Such a
challenge is a frequent one in Information and Communications Technology (ICT) industry where
computers and computers based system (hardware and Software) is the main component.

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Advent of new advanced diagnostic tools, rapid repair systems, etc.
Advance store management techniques to incorporate modular technologies

Requirements of keeping both outdated and modern machines in service. For example, many
industrial organizations have a combination of the old machines working on obsolete technology and
new systems utilizing the latest technology and equipment.
The effective management of maintenance aspects under such challenging circumstances is
often a difficult job. Besides the rectification of the faults in the equipment, the activities of the
maintenance department include:
Up-gradation of the existing plants and equipment and training maintenance personnel to attend
the required technical skills.
Effective maintenance of the old equipment for higher availability
Cost optimization of all maintenance functions
Improvement of maintenance activities in the areas of tribology and terotechnology
Reconditioning of used /unserviceable spare parts.
Development of indigenous sources for parts for import substitution
Setting up of an effective maintenance information management systems (MIMS).
Effective utilization of the maintenance workforce
Setting up of in house R&D activities for effecting improvements in maintenance practices.

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MODERN TECHNIQUES IN MAINTENANCE

The modern techniques in maintenance include the following:

1. Use of Condition Monitoring (CM) Technologies
The following methods are available to assess the condition of systems/equipment, to determine
the most effective time to schedule maintenance:
i. Vibration monitoring and analysis
ii. Thermography
iii. Lubricant and particle wear analysis (oil analysis)
iv. Nondestructive testing
v. Acoustic Emission monitoring

Vibration Monitoring and Analysis

Theory, Applications, and Techniques

Analysis of system and equipment vibration levels is one of the most commonly used CM
techniques. Vibration monitoring helps determine the condition of rotating equipment and
structural stability in a system. It also helps identify noise sources, as severely vibrating
equipment is noisy.

Basic Vibration Theory

Vibration is simply the movement of a machine or machine part back and forth from its position
of rest. A weight hanging on a spring is the simplest example of how vibration works. Until a
force is applied to the weight to cause it to move, we have no vibration. By applying an upward
force, the weight moves upward, compressing the spring. If we released the weight, it would
drop below its neutral position to some bottom limit of travel, where the spring would stop the
weight. The weight would then travel upward through the neutral position to the top limit of
motion, and back again through the neutral position. The motion will continue in exactly the
same manner as the force is reapplied. Thus, vibration is the response of a system to some

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internal or external force applied to the system. With a few exceptions, mechanical troubles in a
machine cause vibration. The most common problems that produce vibration are:
• unbalance of rotating parts
• misalignment of couplings and bearings
• bent shafts
• worn, eccentric, or damaged parts
• bad drive belts and drive chains
• bad bearings
• torque variations
• electromagnetic forces
• aerodynamic forces
• hydraulic forces
• looseness
• rubbing
• resonance
The amount of time required to complete one full cycle of a vibration pattern is called the period
of vibration. If a machine completes one full cycle in 1/60th of a second, the period of vibration
is said to be 1/60th of a second. The period of vibration is a simple and meaningful characteristic
often used in vibration detection and analysis. Another simple characteristic is the frequency.
Frequency is related to period by the following formula: frequency =1/period
Frequency is the inverse of period. In reality, frequency is a measure of the number of complete
vibration cycles that occur in a specified amount of time. The frequency of vibration is usually
expressed in cycles per minute (CPM). Specifying vibration frequency in CPM makes it easy to
relate this characteristic to another important specification of rotating machinery: revolutions per
minute (RPM). So, if you have piece of machinery that operates at 3600 RPM, you can expect
certain problems to create vibration at a frequency of 3600 RPM. Frequency is sometimes
expressed in cycles per second, or Hertz (Hz). The relationship between Hz and CPM is
expressed by the following equation:
CPM = Hz x 60
Vibration displacement is defined as the total distance travelled from one extreme limit to the
other (the “peak-to-peak displacement”). Peak-to-peak vibration displacement is usually

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expressed in mils, where 1 mil equals 1/1000th of an inch (0.001 in.). Since a vibrating piece of
machinery is moving, it has a velocity. The vibration velocity constantly changes. At the top
limit of the motion the speed is zero since the weight must come to a stop before it can go in the
opposite direction. The speed of velocity is greatest as the weight passes through the neutral
position. Since the velocity of the part is constantly changing throughout the cycle, the highest
“peak” is selected for measurement. Vibration velocity is expressed in inches per second. Since
vibration velocity is directly related to vibration severity, for the most general purpose vibration
measurements, it is the preferred parameter for measurement. As a rule of thumb, vibrations
occurring in the 600 to 60,000 CPM frequency range are generally best measured using vibration
velocity. Under conditions of dynamic stress, displacement alone may be a better indication of
severity, especially when the machine part exhibits the property of brittleness, the tendency to
break or snap when stressed beyond a given limit. For example, consider a slowly rotating
machine that operates at 60 RPM, and that exhibits vibration of
20 mils peak-to-peak displacement caused by rotor unbalance. In terms of vibration velocity, 20
mils at 60 CPM is only 0.0585 in./sec, which would be considered “good” for general machinery
and little cause for immediate concern. However, keep in mind that the bearing of this machine is
being deflected 20 mils. Under these conditions, fatigue may occur due to stress (resulting from
the displacement) rather than due to fatigue (caused by the velocity of displacement). Generally,
the most useful presentation of vibration data is a graph showing vibration velocity (expressed in
inches/second) on the vertical axis and frequency on the horizontal axis. By analyzing this data, a
trained vibration technician can ascertain what kinds of problems exist. The trained technician
has, in effect, learned to “read” vibration signatures; he has learned to interpret what the different
peaks in the different frequency ranges indicate.
All rotating machinery will exhibit a certain degree of vibration. The question then becomes
“How much is too much?” There are no realistic figures for selecting a vibration limit, which, if
exceeded, will result in immediate machinery failure. The events surrounding the development of
a mechanical failure are too complex to set reliable limits. However, there are some general
guidelines that have been developed over the years that can serve as general indication of the
condition of a piece of machinery.
When setting up a vibration monitoring program that uses hand-held vibration instrumentation, it
is necessary to ensure that the measurements are taken consistently.

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A slight variation in the location where a measurement is taken on a piece of machinery can
significantly alter its accuracy. This issue becomes especially difficult to police when several
technicians take measurements at different times on the same piece of machinery.

Information Obtained through Vibration Monitoring

If applied by a trained professional, vibration monitoring can yield information regarding: wear,
imbalance, misalignment, mechanical looseness, bearing damage, belt flaws, sheave and pulley
flaws, gear damage, flow turbulence, cavitation, structural resonance, and material fatigue.
The maintenance supervisor/manager must make the decision whether it makes economic sense
to perform this function with in-house labor forces or whether it should be outsourced to a
contractor specializing in vibration monitoring and analysis. In making this decision,
maintenance supervisors/managers should consider whether they have sufficient in-house labor
to dedicate to vibration monitoring. Vibration monitoring theory is complicated, the equipment is
expensive, and the analysis of the data collected is a skill that must be practiced regularly. Once
he has completed the basic vibration training (costing several thousands of dollars), a
maintenance technician must be committed and allowed to work at least 3 days per month in
vibration analysis if he is to stay competent with the technology and analysis techniques.

Detection Interval/Amount of Data Collected

Narrow band vibration analysis can provide several weeks or months of warning of impending
failure. In establishing a vibration monitoring program, one must first determine how often to
take sampling data. Different vibration frequencies forebode different upcoming failures. The
frequency of data collection depends on machine type and failure category. Typically, it is not
cost effective to take real-time vibration data; spot checking facility equipment once per month
(or once per quarter) with hand-held vibration monitoring equipment usually provides sufficient
warning of impending problems. Facility rotating equipment (e.g., fans, pumps) does not
deteriorate fast enough to warrant continual real time data collection.
Maintenance technicians should realize that accumulating more data is not necessarily indicative
of a better vibration monitoring program. Even after the first costs of the vibration monitoring

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and data acquisition system have been absorbed, there is an “overhead” associated with data
collection. The data must be analyzed and interpreted. Even with the sophisticated software
available to assist the maintenance technician with these tasks, it takes an ongoing time
investment.

Spectrum Analysis and Waveform Analysis

Spectrum analysis is the most commonly employed analysis method for machinery diagnostics.
In this type of analysis, the vibration technician focuses on analyzing specific “slices” of the
vibration data taken over a certain range of CPM. Spectrum analysis can be used to identify the
majority of all rotating equipment failures (due to mechanical degradation) before failure.
Waveform analysis, or time domain analysis, is another extremely valuable analytical tool.
While not used as regularly as spectrum analysis, the waveform often helps the analyst more
correctly diagnose the problem.

Torsional Vibration

Torsional vibration is often used to detect the vibration associated with the measurement of gear
vibration and torque. It proves most helpful in situations where, due to transmission path
attenuation, the casing vibration signal has a signal-to-noise ratio insufficient to detect the
problem (i.e., the noise obscures the signal). Torsional vibration is especially effective in
situations where unsteady forces excite the resonance of the structure or housing. Measure torque
by using pairs of matched sensors spaced at a sonic interval to take advantage of the phase
difference in the signals.

Limitations

The effectiveness of vibration monitoring depends on sensor mounting, resolution, machine

complexity, data collection techniques, and the ability of the analyst. This last factor, the ability
of the analyst, is probably the most important aspect of establishing an effective vibration
monitoring program. The analyst must be someone who possesses a thorough understanding of

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vibration theory and the extensive field experience necessary to make the correct diagnosis of the
vibration spikes that may appear in the data acquired. Complex, low speed (<120 RPM), variable
speed, and reciprocating machinery are extremely difficult to monitor effectively. Additionally,
single channel analysis cannot always accurately determine the source of the vibration on
complex machines.

Equipment Required

For permanent data collection, vibration analysis systems include microprocessor - based data
collectors, vibration transducers, equipment-mounted sound discs, and a host personal computer
with software for analyzing trends, establishing alert and alarm points, and assisting in
diagnostics.
Portable hand-held data collectors consist of a hand-held data collection device (about the size of
a palm-top computer) and a magnetized sensing device.

Thermography

Infrared Thermography (IRT) is the application of infrared detection instruments to identify

temperature differences. The test instruments used are noncontact, line-of-sight, thermal
measurement and imaging systems. Because IRT is a noncontact technique, it is especially
attractive for identifying hot/cold spots in energized electrical equipment, large surface areas
such as boilers and building walls, and other areas where “stand off” temperature measurement is
necessary.
Instruments that perform this function detect electromagnetic energy in the short wave (3 to 5
microns) and long wave (8 to 15 microns) bands of the electromagnetic spectrum. The short
wave instrument is the best choice for facilities inspections due to the varied inspections
(electrical, mechanical, and structural) encountered. However, the short wave instrument is more
sensitive than long wave to solar reflections. The maintenance technician will need to be aware
of this when performing outdoor inspections in areas such as transformers, motor control centers,
switchgear, substations, switchyards, or power lines. In such cases, sunlight reflected from shiny
surfaces may make those surfaces appear to be “hotter” than the adjacent surfaces when they

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really are not. To be effective in facilities applications, IRT instruments must be portable,
sensitive to within 0.20 °C over a range of temperatures from -100 to +3000 °C, and accurate
within +/-3 percent. In addition, the instrument must be capable of storing an image of the
thermogram for later analysis. IRT inspections are identified as either qualitative or quantitative.
The quantitative inspection attempts the accurate measurement of the temperature of the item of
interest. To perform a quantitative inspection requires detailed knowledge and understanding of
the relationship of temperature and radiant power, reflection, emittance, and environmental
factors, as well as the limitations of the detection instrument. This knowledge and understanding
must be applied in a methodical fashion to control the imaging system properly and to obtain
accurate temperature measurements. Quantitative measurements of temperature are extremely
time-consuming, and are rarely needed in facilities applications.
The qualitative inspection is interested in relative differences, hot and cold spots, and deviations
from normal or expected temperature ranges. The knowledge and understanding discussed above
is needed to perform a meaningful qualitative inspection. However, qualitative inspections are
significantly less time consuming because the thermographer is not concerned with highly
accurate temperature measurement. In qualitative inspections the thermographer obtains accurate
temperature differences (DT) between like components. For example, a typical motor control
center will supply three-phase power, through a circuit breaker and controller to a motor. Ideally,
current flow through the three-phase circuit should be uniform so the components within the
circuit should have similar temperatures. Any uneven heating, perhaps due to dirty or loose
connections, would quickly be identified with the IRT imaging system. Because the many
variables that influence the quantitative inspection (reflection, emittance, etc.) are the same
between like components, the thermographer can quickly focus on the temperature differences.
The factors so important to a highly accurate quantitative temperature measurement have very
little influence on the temperature differences between like components.

Theory and Applications

IRT can be used to identify degrading conditions in facilities electrical systems such as
transformers, motor control centers, switchgear, substations, switchyards, or power lines. In
mechanical systems, IRT can identify blocked flow conditions in heat exchanges, condensers,

23
transformer cooling radiators, and pipes. IRT can also be used to verify fluid level in large
containers such as fuel storage tanks. IRT can identify insulation system degradation in building
walls and roof, as well as refractory in boilers and furnaces. Temperature monitoring, infrared
thermography in particular, is a reliable technique for finding the moisture- induced temperature
effects that characterize roof leaks, and for determining the thermal efficiency of heat
exchangers, boilers, building envelopes, etc.
Deep-probe temperature analysis can detect buried pipe energy loss and leakage by examining
the temperature of the surrounding soil. This technique can be used to quantify ground energy
losses of pipes. IRT can also be used as a damage control tool to locate mishaps such as fires and
leaks. In soliciting consultants to perform thermography, one should remember that (unless
requested otherwise) the thermographer will normally provide only an exception report that
identifies finds/faults (i.e., his analysis will be of qualitative temperature differences).
In summary, IRT can assess the in-service condition of electrical and mechanical systems. Once
this is done, the maintenance supervisor/manager can prioritize work based on the temperature
difference criteria. The greater the DT, the more urgent the problem.

Limitations

Thermography is limited to line of sight. Errors can be introduced due to color of material,
material geometry, and by environmental factors such as solar heating and wind effects.

Logistics

Equipment Required

• Equipment ranges from simple, contact devices such as thermometers and crayons to full
color imaging, computer-based systems that can store, recall, and print the thermal
images.
• The “deep-probe” temperature technique requires temperature probes, analysis software
and equipment to determine the location of piping systems.

24
Operators

• Operators and mechanics can perform temperature measurements and analysis using
contact-type devices with minimal training on how and where to take the temperature
readings.
• Because thermographic images are complex and difficult to measure and analyze,
training is required to obtain and interpret accurate and repeatable thermal data and to
interpret the data. With adequate training and certification, electrical/mechanical
technicians and/or engineers can performed this technique.
• Maintenance personnel can apply deep-probe temperature monitoring after being trained,
although this service is often contracted.

Training Available

· Training is available through infrared imaging system manufacturers’ and vendors.

· The American Society of Non-destructive Testing (ASNT) has established guidelines for
nondestructive testing (NDT) thermographer certification.
These guidelines, intended for use in non-destructive testing, may be used as guidelines for
thermography in CM if appropriately applied. Certification is not easily obtained. When deciding
which maintenance technician should be certified as a thermographer, the maintenance manager
should consider general background, work experience, and any previous thermographic
experience or thermographic training.

Lubricant and Wear Particle Analysis

Purpose

Lubricating oil analysis is performed for three reasons:

1. To determine the machine mechanical wear condition
2. To determine the lubricant condition
3. To determine if the lubricant has become contaminated.

25
A wide variety of tests can provide information regarding one or more of these areas. The test
used will depend on the test results sensitivity and accuracy, the cost, and the machine
construction and application. The three areas are not unrelated; changes in lubricant condition
and contamination, if not corrected, will lead to machine wear. Because of the important
relationships, commercial analysis laboratories will often group several tests in cost effective test
packages that provide information about all three areas.

Machine Mechanical Wear Condition

The criteria for analyzing the lubricating oil to determine the machine’s condition are generally
the same as for performing vibration analysis. This analysis is applicable to all machines with
motors 7.5 HP or larger, critical machines, or high cost machines. Generally the routine sampling
and analysis periodicity will be the same as the vibration analysis periodicity (when using a
portable vibration data collector). For machines with a condition history (a year or more of data),
this is typically performed quarterly.

Lubricant Condition

Lubricating oil is either discarded or reconditioned through filtering and/or replacing additives.
Analyzing the oil to determine the lubricant condition is, therefore, driven by costs. Small
machines, those with oil reservoirs 1 gal or less, have the oil changed on an operating time basis.
An automobile is the most common example of time-based lubricating oil maintenance. In this
example, the costs to replace the automobile oil (the replacement oil, labor to change the oil, and
disposal costs) are lower than the cost to analyze the oil (i.e., the cost of sample materials, labor
to collect the sample, and the analysis). In the case of automobile oil, time-based replacement is
cheaper than analysis due to competition and the economies of scale that have been created to
meet the consumer need for replacing automobile oil.
In the case of lubricating oil used in facility equipment, simply replace and discard the machine
lubricating oil if it is cheaper than analyzing it. When making this decision, the maintenance
manager must have firm prices for materials used to take samples and the labor hours it will take

26
to collect, package, and send the samples out for analysis. Remember, though, that one oil
sample is sufficient for many tests.

Lubricant Contamination

Lubricating oil can become contaminated due to the machine’s operating environment, improper
filling procedures, or through the mixing of different lubricants in the same machine. If a
machine is “topped off” with oil frequently, the maintenance technician should send the oil out
for analysis periodically to check the machine for any serious problems.

Standard Analytical Tests

Lubricating oil and hydraulic fluid analysis should proceed from simple, subjective techniques
such as visual and odour examination through more sophisticated techniques. The more
sophisticated (and expensive) techniques should be used when conditions indicate the need for
additional information and the equipment cost or criticality justifies the cost.

Visual and Odour

Simple inspections can be performed weekly by the equipment operator to look at and smell the
lubricating oil. A visual inspection looks for changes in colour, haziness or cloudiness, and
particles.
This test is very subjective, but can be an indicator of recent water or dirt contamination and
advancing oxidation. A small sample of fresh lubricating oil in a sealed, clear bottle, can be kept
on hand for visual comparison. A burned smell may indicate oxidation of the oil. Other odors
could indicate contamination. Odor is more subjective than the visual inspection because
people’s sensitivity to smell varies, and there is no effective way to compare the odor between
samples. The operator must be careful not to introduce dirt into the system when taking a sample.

27
Viscosity

Viscosity is a measure of oil flow rate at a specified temperature. A change (increase or

decrease) in viscosity over time indicates changes in the lubricant condition, or it may indicate
lubricant contamination. Viscosity can be tested using portable equipment, or it can be tested
more accurately in a laboratory using the ASTM D445 procedure. Viscosity is measured in
centistoke (cSt), and minimum and maximum values are identified by the ISO grade. Testing oil
viscosity is usually part of a commercial laboratory standard test package.

Water

Water in lubricating oil and hydraulic fluid contributes to corrosion and formation of acids.
Small amounts of water (less than 0.1 percent) can be dissolved in oil and can be detected using
the crackle test or infrared spectroscopy (minimum detectable is 0.05 percent or approximately
500 ppm by both methods), the ASTM D95 distillation method (minimum detectable is 0.01
percent/100 ppm), the ASTM D1744 Karl Fischer method (minimum detectable is 0.002
percent/100 ppm). If greater than 0.1 percent water is suspended or emulsified in the oil, the oil
will appear cloudy or hazy. Free water in oil collects in the bottom of oil reservoirs and can be
found by draining them from the bottom.

Percent Solids/Water

A simple, inexpensive test is used to provide a gross estimate of solids and/or water in the oil. A
sample is centrifuged in a calibrated tube and the resulting volume is measured. The test is
effective for amounts in the range of 0.1 to 20 percent of volume and is usually part of a
commercial laboratory standard test package.

Total Acid Number (TAN)

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Total acid is an indicator of the lubricating oil condition and is monitored relative to the TAN of
new oil. In some systems, the TAN will also be used to indicate acid contamination. TAN is
measured in milligrams of potassium hydroxide (KOH) per gram of oil (mg KOH/g). KOH is
used in a titration process and the end point is indicated by color change (ASTM D974) or
electrical conductivity change (ASTM D664).

Total Base Number (TBN)

Similar to the TAN test method, the TBN test measures alkalinity (ability to neutralize acid) of
oil sample. This test is used on oil with high detergent additives such as diesel and gasoline
engines.
KOH is used in a titration process and the end point is indicated by electrical conductivity
change (per ASTM D664 or ASTM D2896). When comparing test results from your oil against
baseline data from the oil supplier, make sure that the same test method was used for your oil as
was used in generating the baseline data. Results can vary significantly between test methods.

Spectrometric Metals

Also known as emission spectroscopy, this technique examines the light (spectrum) emitted from
the sample during testing, and identifies up to 21 metals. Metals are categorized as wear,
contaminate, or additive metals. The procedure identifies both soluble metal and metal particles
up to 5 to 10 microns (5-10 mm).
The test cost is moderate, and is usually part of a commercial laboratory standard test package.
Other techniques (e.g., absorption spectroscopy and X-ray spectroscopy) are used by some
laboratories to identify metals.

Infrared Spectroscopy

This technique is also known as infrared analysis, infrared absorption spectroscopy or

spectrophotometry, and Fourier Transform Infrared (FTIR) spectroscopy. The technique
examines the infrared wavelength that is absorbed by the oil sample. The test is used to identify

29
nonmetallic contamination and lubricant conditions (e.g., oxidation, antioxidant, other additive
depletion). In the future, it may become possible to couple computer expert system analysis with
known oil spectrums, in an effort to produce highly accurate diagnosis of small changes in the oil
condition. Costs vary, depending on the level of sophistication required. Infrared spectroscopy is
usually part of a commercial laboratory standard test package.

Analytical Ferrography

More detailed than Direct Reading (DR) ferrography, analytical ferrography is often initiated
based on changes in DR, spectrometric metal increases, or increased particle count. The analysis
is sometimes performed on a regular basis on expensive or critical machines. The test process is
labor intensive and involves the preparation of sample and examination under magnification.
Results vary with the analyst’s capability, but the procedure can provide detailed information
regarding wear: e.g., wear type (rubbing, sliding, cutting), color, particle types (oxide, corrosive,
crystalline), and other nonferrous particles. This detailed information can be critical in finding
the root cause of wear problems. Costs are moderately high; the test is performed on a fixed price
basis (per sample) from a commercial laboratory.

Special Tests

Special tests are sometimes needed to monitor lubricant conditions on some expensive or critical
Systems. Usually the special test is used to monitor a lubricant contaminate, a characteristic, or
additive depletion. This section identifies some of the special tests available. Special tests are
rarely needed for routine monitoring of lubricants. The list of special test presented here is not
meant to be all-inclusive ¾ only a list of samples. Test procedures are constantly being
developed and refined.
The annual ASTM Standards provides a description of current test methods,

Glycol Antifreeze

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Glycol contamination can be detected using infrared spectroscopy (see Infrared Spectroscopy,
discussed earlier) at levels greater than 0.1 percent (1,000 ppm), which is usually adequate for
condition monitoring. However, additional tests can be specified to identify if small amounts of
glycol are present. ASTM D2982 will indicate if trace amounts are present. ASTM D4291 uses
gas chromatography to quantify small amounts of glycol.

Karl Fischer Water

Water contamination can be detected using infrared spectroscopy at levels greater than 0.05
percent (500 ppm), which is usually adequate for condition monitoring.
Using a titration process with a Karl Fischer reagent, low levels of water can be detected and
quantified. The test, ASTM D1744, is useful when accepting new oil or evaluating cleanup
efforts.
Cost of the test is moderate.

Foamlug

Some oil may have anti-foam agents added to improve the lubrication capability in specific
applications such as gear boxes or mixers. ASTM test D892 can be used to test the oils foam
characteristics. The test blows air through a sample of the oil and measures the foam volume.
Cost of the test is moderately high.

Rust Prevention

Some systems are susceptible to water contamination due to equipment location or the system
operating environment. In those cases, the lubricating oil or hydraulic fluid may be fortified with
an inhibitor to prevent rust. The effectiveness of rust prevention can be tested using ASTM D665
(or ASTM D3603). Results are pass/fail and the cost of the test is high.

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Rotating Bomb Oxidation Test (RBOT)

Also known as the Rotary Bomb Oxidation Test, ASTM D 2272 is used to estimate oxidation
stability and the remaining useful life of oil. The test simulates aging, identifying when rapid
oxidation takes place and indicating that antioxidants have been depleted. The test is not a
onetime test; it must be performed over time, starting with a baseline test of the new oil.
Subsequent tests are necessary to develop the trend line. Because of the high cost and the
multiple tests required, this test is usually only performed on large volume reservoirs or
expensive oil.

Application

Typically, lubricating oil analysis should be performed on a quarterly basis on all machines with
motors 7.5 HP or larger, and on all critical or expensive machines. The analysis schedule should
be adjusted in the same way that the vibration analysis schedule is adjusted. Analyze more
frequently for machines that are indicating emerging problems; less frequently for machines that
operate under the same conditions and are not run on a continuous basis. A new baseline analysis
will be needed following machine repair or oil change out. All hydraulic systems, except mobile
systems, should be analyzed on a quarterly basis. Mobile systems should be considered for
analysis based on the machine size and the cost effectiveness of performing the analysis.
Generally, it is more cost effective in mobile equipment to maintain the hydraulic fluid based on
the fluid condition. However, for small systems, the cost to flush and replace the hydraulic fluid
on a time basis may be lower than the cost to analyze the fluid on a routine basis. Grease is
usually not analyzed on a regular basis. Although most of the testing that is done on oil can also
be done on grease, there is a problem getting a representative sample. To get a representative
sample that is a homogeneous mixture of the grease, contaminants, and wear, the machine must
usually be disassembled. Once a machine has failed and must be disassembled, analysis of the
grease to diagnose the failure can sometimes be useful. A concern common to all machines with
lubricating oil systems is keeping dirt and moisture out of the system. Common components of
dirt, such as silica, are abrasive and naturally promote wear of contact surfaces. In hydraulic
systems, particles can block and abrade the close tolerances of moving parts. Water in oil

32
promotes oxidation and reacts with additives to degrade the performance of the lubrication
system. Ideally, there would be no dirt or moisture in the lubricant; this, of course, is not
possible. The lubricant analysis program must therefore monitor and control contaminants. Large
systems with filters will have steady state levels of contaminates. Increases in contaminates
indicate breakdown in the systems integrity (leaks in seals, doors, heat exchangers, etc.) or
degradation of the filter. Unfiltered systems can exhibit steady increases during operation.
Operators can perform a weekly visual and odor check of lubricating systems and provide a first
alert of contamination. Some bearing lubricating systems have such a small amount of oil that a
weekly check may be impractical.

Motors, Generators, Pumps, Blowers, Fan

For machines with less than 5 gal in the lubrication system, the analyst is mostly concerned with
machine condition. Lubricant condition and contamination are of interest because they provide
some indication of machine condition.
Routinely monitor viscosity, percent solids/water, and spectrometric metals. Monitor trends and
discard or refresh the oil when viscosity changes 10 percent from the baseline. Viscosity
normally increases above the baseline with the oil service time. If the viscosity decreases below
the baseline, it usually means that the oil is contaminated, probably from adding the wrong type
of makeup oil.
There should be no water present (minimum detectable water is 0.1 percent). If there is water,
the source of the water needs to be identified and corrected. For machines with more than 5 gal
of oil in the system, add infrared spectroscopy (minimum amount of water detectable is 0.05
percent) and particle counting. Changes in particle count can indicate increased contamination or
increased wear. Correlate particle count with spectrometric metals. The rate of particle count
change indicates how quickly the lubricant is degrading. Visual particle counting can be used to
identify the source of the contamination. In addition, perform DR Ferrography for expensive or
critical machines. In all machines, changes in spectrometric metals or DR should be investigated
further using analytical
Ferrography and correlated with vibration analysis.

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Gearboxes

Same as above, except for gearboxes with less than 5 gal of oil, add particle counting. Implement
DR Ferrography for high cost or critical gearboxes. Monitor trends and correlate with vibration
readings.

Chillers

In addition to the items identified above, add Total Acid Number (TAN) and DR Ferrography.

Diesel Engines
Use the same procedure as for chillers except substitute Total Base Number (TBN) for TAN
when oil has high detergent additives. A decrease in viscosity below the baseline may indicate
fuel contamination. Coolant leakage (glycol and other characteristics) is identified from the
infrared spectroscopy analysis

Compressors

Centrifugal compressors should be treated the same as chillers. Reciprocating compressors

should be treated the same as diesel engines.

Hydraulic Systems

Perform the same oil analysis as that performed on gearboxes. Monitor particle count by ISO
category. Each hydraulic system will have limiting clearances that will determine critical particle
sizes. Note that some hydraulic systems use fluids other than oil (water or glycol). For these
systems, oil analysis does not apply; however, perform particle control the same as for oil-filled
hydraulic systems.

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Large Reservoirs

For reservoirs over 500 gal, consider performing a Rotating Bomb Oxidation Test (RBOT) to
assess the oxygen stability. Cost is usually the deciding factor. At least three tests are needed to
develop a trend. Once the trend has been established, additional retesting should be performed at
least once a year. Maintenance dollar are saved when replacement or refreshing of a large
volume of oil (or smaller volume of expensive oil) can be deferred.

Lubrication Analysis

As one can see from reading the above, there are numerous lubrication tests.
Commercial laboratories performing the tests have charts available that summarize the various
lubricant tests, monitoring interval, and application.

Sampling

Oil samples must be collected safely and in a manner that will not introduce dirt and other
contaminates into the machine/system, or into the sample. It may be necessary to install
permanent sample valves in some lubricating systems. The oil sample should be representative of
the oil seen in the machine. The sample should, therefore, be collected from a mid-point in
reservoirs and upstream of the filter in circulating systems. Sample collection bottles and tubing
can be procured through testing laboratories. The testing laboratory can also provide guidance as
regards to the cleanliness level needed. Oil sample pumps for extracting oil from reservoirs must
be used properly to avoid contamination. Samples must be collected from the same point in the
system to ensure consistency in the test analysis; therefore, the maintenance procedure must
provide detailed direction on where and how to collect samples. The equipment operators can
collect samples. Each sample is marked with the system/machine name, sample location point
(the system may have multiple sample points), date, elapsed operating time for the
system/machine, and other comments such as last “topping off” or filtering operation. The

35
analyst will also need to know the amount of oil in the reservoir to make recommendations to
correct abnormalities.

NON-DESTRUCTIVE TESTING

Non-Destructive Testing (NDT) evaluates material properties and quality of manufacture for
expensive components or assemblies without damaging the product or its function. Instead of
statistical sampling techniques that use only surface measurements or require the destructive
testing of selected components from a production lot, NDT is used when these testing techniques
are cost prohibitive or ineffective. Typically, NDT has been associated with the welding of large
high stress components such as pressure vessels and structural supports. Process plants such as
refineries or chemical plants use NDT techniques to ensure integrity of pressure boundaries for
systems processing volatile substances.

Techniques

The following section discussed various NDT techniques:

(i) Radiography

Radiography is performed to detect sub-surface defects. Radiography or X-ray is one of the most
powerful NDT technique available in industry. Depending on the strength of the radiation
source, radiography can provide a clear representation (radiograph) of discontinuities or
inclusions in material several inches thick. X-ray or gamma ray sensitive film is placed on one
surface of the material to be examined. The radiation source is positioned on the opposite side of
the piece. The source may be either a natural gamma emitter or a powered X-ray emitter. The
source is accurately aligned to ensure the proper exposure angle through the material. When all
preparations and safety precautions are complete, the radiation source is energized or unshielded.
Gamma or X-rays pass through a material and expose film placed under the material. By
developing the film in a manner similar to photographic film, an image of defects or inclusions
in the material is produced. More advanced radio luminescent film does not require photographic

36
processing. Multiple “shots” from varying angles provide a complete picture of the thickness of
the material. Dual angles are required to determine the size and orientation of an inclusion.

Once the type, size, and orientation of each inclusion are defined, these can be classified as either
acceptable inclusions or unacceptable defects. Defects in the material must be accurately located
to facilitate minimal material removal, yet ensure the defect has been completely eliminated.
Minimizing material removal also minimizes repair cost and reduces the likelihood of additional
defects created by the repair. The repair is then re-evaluated to ensure the defect removal and
subsequent repair were conducted properly.
Radiography, though a versatile tool, is limited by the potential health risks. Use of radiography
usually requires the piece be moved to a special shielded area, or that personnel be evacuated
from the vicinity to avoid exposure to the powerful radiation source required to penetrate several
inches of dense material. Temporary shielding may also be installed, but the installation and
removal of thousands of pounds of lead is labor intensive and rarely worth the expense.
Radiography technicians are trained in radiation health physics and material properties. These
technicians can visually distinguish between welding slag inclusions, porosity, cracking, and
fatigue when analyzing radiographic images.

(ii) Ultrasonic Testing (Imaging)

Ultrasonic testing provides detection of deep sub-surface defects. Ultrasonic (UT) inspection of
welds and base material is often an alternative or complementary NDT technique to radiography.
Though more dependent on the skill of the operator, UT does not produce the harmful radiation
entailed with radiography. UT inspection is based on the difference in the wave reflecting
properties of defects and the surrounding material. An ultrasonic signal is applied through a
transducer into the material being inspected. The speed and intensity with which the signal is
transmitted or reflected to a transducer provides a graphic representation of defects or
discontinuities within the material. A couplant fluid is often used to provide a uniform
transmission path between the transducer, receiver and the material of interest. Transducer
configurations differ depending on the type of system used.

37
Some systems use a single transducer to transmit and receive the test signal. Others use a
transmit transducer in conjunction with a separate receive transducer. Dual transducer systems
may be configured with both transducers on the same surface of the material or with transducers
on the opposite surfaces of the material.
Three scan types are most commonly used: “A Scan,” “B Scan” and “C Scan.” A Scan system
analyzes signal amplitude along with return time or phase shifts the signals travel between a
specific surface and discontinuities. B Scan systems add signal intensity modulation and
capability to retain video images. C Scan Systems include depth gating to eliminate unwanted
returns. UT inspection is a deliberate process covering a small area (4 to 8 sq in.) at each
sampling. Consistency in test method and interpretation of results is critical to the reliable test
results. Surface preparation is also critical to reliable UT results. Any surface defects such as
cracks, corrosion, or gouges will adversely affect the reliability of UT results. Due to the time
and effort involved in surface preparation and testing, UT inspections are often conducted on
representative samples of materials subjected to high stress levels, high corrosion areas and large
welds. By evaluating the same sites at regular intervals, one can monitor the condition of the
material. One hundred percent UT inspection is typically reserved for original construction of
high stress components such as nuclear reactor vessels or chemical process vessels.

(iii) Magnetic Particle Testing

The NDT technique uses magnetic particle detection of shallow sub-surface defects.
Magnetic Particle Testing (MT) techniques are useful during localized inspections of weld areas
and specific areas of high stress or fatigue loading. MT provides the ability to locate shallow
sub-surface defects. Two electrodes are placed several inches apart on the surface of the material
to be inspected.
An electric current is passed between the electrodes producing magnetic lines. While the current
is applied, iron ink or powder is sprinkled in the area of interest. The iron aligns with the lines of
flux. Any defect in the area of interest will cause distortions in the lines of magnetic flux, which
will be visible through the alignment of the powder. Surface preparation is important since the
powder is sprinkled directly onto the metal surface and major surface defects will interfere with
sub-surface defect indications. Also, good electrode contact and placement is important to ensure

38
consistent strength in the lines of magnetic flux. A major advantage for MT is its portability and
speed of testing. The hand-held electrodes allow the orientation of the test to be changed in
seconds. This allows for inspection of defects in multiple axes of orientation. Multiple sites can
be inspected quickly without interrupting work in the vicinity. The equipment is portable and is
preferred for onsite or in-place applications. The results of MT inspections are recordable with a
high quality photograph or transfer to tape. Fixing compounds are available to “glue” the particle
pattern in-place on the test specimen. Interpretation of results depends on the experience of the
operator.

(iv) Dye Penetrant

Dye Penetrant is used to detect surface defects. Dye penetrant (DP) inspections provide a simple
method for detecting surface defects in nonporous materials. DP allows large areas to be quickly
inspected. Once the surface has been cleaned, a penetrating dye (magenta or fluorescent color) is
sprayed liberally on the entire surface. The dye is allowed to penetrate for several minutes. The
excess dye is then wiped from the surface leaving only the dye that has been drawn into surface
defects. A developer (usually white) is sprayed on the entire surface (same area as the dye
application). The developer draws the dye from the defects, producing a visual indication of the
presence of surface defects. The defective areas are then identified for repair and the remaining
dye and developer are removed.

(v) Hydrostatic Testing

Hydrostatic Testing (Hydro) is an NDT method for detecting defects that completely penetrate
pressure boundaries. Hydros are typically conducted prior to the delivery or operation of
completed systems or subsystems that act as pressure boundaries. As the name implies,
hydrostatic tests fill the system to be tested with water or the operating fluid. The system is then
sealed and the pressure is increased to approximately 1.5 times operating pressure. This pressure
is held for a defined period.

39
During the test, inspections are conducted to find visible leaks as well as monitor pressure drop
and make-up water additions. If the pressure drop is out of specification, the leak(s) must be
located and repaired. The principle of hydrostatic testing can also be used with compressed
gases. This type of test is typically called an air drop test and is often used to test the integrity of
high pressure air or gas systems.

Applications

1. Radiography. Radiographic techniques are readily applicable to metal components, including

weld deposits. Specialized applications for plastics or composite materials are possible, though
typically these materials are not most economically inspected with radiography. For thick cross
sections, radiography is often the only reliable method for inspection.
2. Ultrasonics. UT techniques are applicable to metal components including weld deposits.
Specialized applications for plastics or composite materials are common. When possible, UT is a
preferred method over radiography for in-place applications, due to expense and safety
precautions required by radiography. UT is especially useful since it only requires access to one
surface of the material. Ultrasonic techniques provide excellent penetrating power for thick
cross-sections.
3. Magnetic Particle. MT techniques are applicable only to materials that conduct electric
current and magnetic lines of flux. Only shallow defects are detectable with MT inspection.
Typically, these techniques are most effective on welded areas. The speed of testing allows
multiple inspections to be conducted along different axes to detect defects in different orientation
planes.
4. Dye Penetrant. DP inspections are applicable for any nonporous material that is chemically
compatible with the dye and developer. This is the simplest NDT technique in which to gain
proficiency.
5. Hydrostatic Testing. Hydros test the integrity of pressure boundaries for components and
completely assembled systems that contain pressurized fluids or gases. Identification of defects
that penetrate the entire pressure boundary is the primary application for hydrostatic testing.

Limitations

40
1. Magnetic Particle. MT techniques are applicable only to materials that conduct electrical
current and influence magnetic lines of flux. The difference in the influence of the lines of flux
between base material and the defect is the basis for MT inspection. Only small areas (30 sq in.)
between the two electrodes can be inspected. Surface preparation is important, though not as
critical as with UT. Consistent electrode contact is critical. Loose contact will weaken the
magnetic lines of flux to the point where the influence of a defect may not be visible in the filing
pattern. Operator skill is important, though this is a relatively simple technique. No historical
record is produced for each test, unless specific steps are taken to photograph the result of each
test.
2. Ultrasonics. UT techniques are one dimensional. Unless special techniques are applied,
defects that parallel the axis of the test will not be apparent. Components constructed using
laminate techniques or layered construction present special problems for UT techniques, since
the boundary between each layer may be interpreted as a defect. The thicker the layers of base
material, the more likely UT will provide usable results.
3. Radiography. Effective use of radiography mandates expensive equipment, extensive safety
precautions and skilled technicians to interpret the images. Expensive tracking and security for
radiation sources is mandatory. Safety precautions often demand evacuation of areas adjacent to
the piece being examined or installation of extensive shielding. Even with these limitations,
radiography is often the most effective method of assuring integrity of critical welds, structural
members, and pressure boundaries. As material thickness increases, radiography is often the only
acceptable method to achieve a 100 percent penetration.
4. Dye Penetrant. Minute surface discontinuities such as machining marks will become readily
apparent. The inspector must be trained to distinguish between normal surface discontinuities
and defects that must be repaired. The dye and developer are usually sprayed or painted on the
piece to be inspected, so overspray and protection of internal surfaces are prime concerns for
systems with stringent chemistry and cleanliness control. Product cleanliness standards may
prohibit the use of DP inspection.
5. Hydrostatic Testing. Cleanliness and chemistry control of the fluid must be consistent with the
operating standards of the system. Close attention should be given to controlling system
thermodynamic parameters during the test to prevent overpressurization of the system.

41
Overpressurization could lead to unintended damage to the system. Individual component hydros
do not ensure system integrity. A final hydro of the completed system is used to ensure the
integrity of the assembled system’s pressure boundary.
6. Hydros will not identify defects that are present, but have not completely penetrated a pressure
boundary. The pressure applied to the system is generally not sufficient to enlarge existing
defects to the point of detection by the test. Hydrostatic testing requires a pressure source capable
of expeditiously filling and pressurizing the system, extensive instrumentation and monitoring
equipment, along with a sufficient quantity of fluid to fill the system. A method of isolating
pressure relief devices and connecting the pressure source to the system must be provided.

MAINTENANCE PLANNING

An effective maintenance planning is essential in an organization. It is good practice to conduct

some form of analysis to identify the appropriate maintenance tasks to care of equipment.
The analysis will result in a list of tasks that need to be sorted and grouped into sensible chunks,
each forming the content of a checklist. The most obvious next step is to schedule the work
orders generated into a plan of work for the workshop teams. Less common, however, is to use
this checklist data to create a long-range plan of forecasted maintenance work.
This plan serves two purposes:
(i) The results can be used to determine future labour requirements, and
(ii) They feed into the production plan.
The schedule of planned jobs is issued to the workshop and when the work is completed,
feedback from these work orders, together with details of any equipment failures, is captured for
historical reporting purposes.
A logical response to this shop floor feedback is that the content of the checklists should be
refined to improve the quality of the preventive maintenance, especially to prevent the recurrence
of failures.
The purpose of maintenance measures should be to monitor the health of the maintenance

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organisation. Where everything is in control, the metrics (Table 1; NASA, 2000) will reflect the
success that has been achieved. Conversely, they should also be used to highlight problem areas
and irregularities in order to drive the desired behaviours or areas for improvement.
There is value in constructing a hierarchy of the equipment system showing assemblies,
subassemblies and individual components. This helps to keep track of which section of the
system is being considered at any time, and the list of components helps to identify the spare
parts requirements for the system.
Of vital importance is the clear identification of the root cause of each failure, as this will affect
the selection of a suitable maintenance task. Also important from a planning perspective is to
identify the time it will take to carry out each task independently. The sum total of these task
times gives a good indication of how long the total work order will take.

Table 1: Metrics for Maintenance performance

Metric Variables and Equations Benchmark

Equipment Availability % = Hours each unit is available to run at capacity > 95%
Total hours during the reporting time period

Schedule Compliance % = Total hours worked on scheduled jobs > 90%

Total hours scheduled

Emergency % = Total hours worked on emergency jobs < 10%

Maintenance Total hours worked
Percentage

Maintenance Overtime % = Total maintenance overtime during period < 5%

Percentage Total regular maintenance hour during period

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 Preventive % = Preventive maintenance actions completed > 90%
Maintenance Preventive maintenance actions scheduled
Completion Percentage

Preventive % = Preventive maintenance cost 15% – 18%

Maintenance Total maintenance cost
Budget/Cost

Predictive Maintenance % = Predictive maintenance cost 10% – 12%

Budget/Cost Total maintenance cost

The following are a few points to consider when constructing a preventive maintenance program:
Preventive maintenance tasks must:
i. aim at the failure process
ii. be specific
iii. include specifications or tolerances
iv. wherever possible, aim for predictive rather than preventive tasks
v. measure or check for conditions against a standard
vi. report the results
vii. create a follow-on task to repair or replace at the next opportunity
viii. “Check and replace, if necessary” tasks destroy planned times
ix. Frequencies and estimated times for each task must be accurate and meaningful
Try wherever possible to plan shutdown time for “non-running” tasks. Keep “running” tasks to
be done during periods of normal production. Structure the maintenance program to allow for
this.
In many cases however, there is no such regular routine in place. Opportunities for the
maintenance teams to conduct planned maintenance need to be negotiated and agreed with the
production teams on an “as-needed” basis. Unfortunately, this is very often reduced to the
maintenance department begging for access to the equipment. Furthermore, this plea is often met

44
with the unsympathetic response from the production teams that they have to run the equipment
in order to meet their targets and they therefore cannot afford to release it for maintenance.

PLANNING OF THE SPARES STOCK

Spares stock management plays an important role in achieving the desired plant availability at an
optimum cost. Industries nowadays are going for capital intensive, mass production oriented, and
highly improved technology. They cannot afford to have downtime for such plant and
machinery.
Non-availability of spare parts, as and when required for repairs, may contribute to as much as
50% of the total down time. In addition, the cost of spare parts is more than 50% of the total
maintenance cost in the industry. While maintenance department complains of the non-
availability of the spare parts to meet their requirement, finance department faces the problem of
increasing locked up capital in spare parts inventory. This is why spare parts management is
essential in any organisation.
The unique problems faced by the organization in controlling/managing the spare parts include
an element of uncertainty to know when a part is required and the quantity that is required. This
is
because the failure of a component, either due to wearing out or due to other reasons, cannot be
predicted accurately. Moreover, spare parts may not be easily available in the market as they
may not be fast moving items. The original equipment manufacturer has to supply the spares in
most of the cases, may have introduced new models and phased out the old models. Hence, the
spares for old models may not be readily available especially for imported equipment as the
design changes are taking place faster in the developed countries. Furthermore, the number and
variety of spare parts are too large making the close control more and more tedious. For instance,
the number of items of spares in a medium scale engineering industry may be around 15,000 and
that in a large-scale chemical industry may be around 100,000. In addition, there is a tendency
from the stage of purchase of the equipment to the stage of the use of the spare parts, to request
for more spare parts than are actually required and accumulation of is very low. These problems
are faced spares takes place. Finally, the rate of consumption of spare parts for some is very high
and for some by systematic spare parts manager.

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The objective of spare parts management is to ensure that spares are available at the right price,
right quality, right quantity and at the right time for maintenance and repairs of the plant and
machinery.
There is a need for systematic actions while managing spare parts as given below:
a. Identification of spare parts
b. Forecasting of spare parts requirement
c. Inventory analyses
d. Formulation of selective control policies for various categories
e. Development of inventory control systems
f. Stocking policies for capital & insurance spares
g. Stocking policies for rotable spares or sub- assemblies
h. Replacement policies for spare parts
i. Spare parts inspection
j. Indigenisation of spares
k. Reconditioning of spare parts
l. Establishment of spare parts bank
m. Computerization of spare parts management.
Every organisation should proceed systematically and establish an effective spare parts
management system. Codification helps the organisation minimizing duplication of spare parts
stocking thereby reducing inventory, aids the accounting process, and facilitates the
computerisation of spare parts control systems. The inventory analyses carried out based on
different characteristics of the spare parts, such as annual consumption value, criticality, lead
time, unit cost and the frequency of use, help the company in establishing suitable policies for
selective control. This also helps in focusing our efforts on real problem areas.
A good inventory control system will help systemizing the ordering procedure and achieving an
optimum level of inventory. In addition, efforts should be made to evolve optimum replacement
policies for selected spare parts, for which cost of down time and cost of replacement are very
high.
Therefore, we have to identify such spare parts and carry out the exercise for evolving optimum
replacement policies.

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For the spare parts that are very expensive and those that are to be imported, it is essential that
the useful life for such spares is extended by appropriate applications of reconditioning and
repair techniques. In addition, efforts should be made to indigenise the spare parts in view of the
hard-to get foreign exchange involvement. Moreover, for similar industries establishing of spare
parts bank goes a long way in reducing the total inventory holding of the expensive spare parts
and reduces the stock holding cost. For different industries, it will be helpful to establish spare
parts banks and a suitable information system for the exchange of spares. Lately, the application
of computers for the processing of spare parts information and operating an effective spare parts
control system will be very helpful for the organization and maintenance engineering and
management will ensure timely actions for an efficient and effective spare parts management.

Identification of Spare Parts

When a spare part is required to put back in operation equipment, which is under breakdown, it
becomes necessary to identify the part for getting the same issued from the store or for
purchasing the same from the vendor. While identifying the spares, it becomes essential to give
the complete description including the size and type of the spare to draw from the stores and it
becomes essential for all concerned i.e., the maintenance personnel and stores personnel are
aware of such description.
If it is the vendor, he may not be satisfied with the description and he may require the
manufacturer's part number.
It is a cumbersome and time-consuming task during every transaction to identify a spare part by
its description and manufacturer's part number accompanied by the parent equipment's name,
make, and model designation. Therefore, it is essential to give a numerical name or code to each
spare part.
This process of giving code to each spare part is called codification. Since, the range of spares
used in any organization is too large and there are quite a few spares meant for specific
equipment, it is always preferred to use codes which are significant i.e., from the code number
one will be able to find out
- Equipment type, make & model
- Type/class of the spare-part

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- Size (in some cases)
If the spare part code is to incorporate the equipment type etc., then the codification of
equipment becomes a prerequisite for spare part codification.
The number of digits required for spare part code depends on the actual requirement i.e., the
range of equipment in use and the types and number of spare parts in the organisation. It is very
common to come across 9 to 16 digit codes for spare parts. For instance, a 10-digit code may
signify,
1st digit - imported or indigenous
2nd, 3rd & 4th digits - machine type, make & model
5th, 6th & 7th digits - spare-part class
8th, 9th & 10th digits - size or serial number.
By classifying and codifying all the spare parts, it becomes easy to minimize the duplication of
spare parts thereby effecting reduction in the inventory. Codification also helps easy accounting
and computerisation in addition to easier communication between concerned parties.
In addition to codifying the spare part, it will be of immense benefit to codify the location of
spare parts. Stock location number helps the stores personnel to locate the part and issue the
same as and when the same is requested for. In addition, the stock verification and upkeep
programme becomes less and less cumbersome.
After codifying the spare parts and assigning stock location numbers, all the users: maintenance
engineering and management should be aware of and be supplied with the relevant codes and
stock location numbers in the form of a spare parts catalogue.
The spare parts catalogue should contain the following information:
Spare parts codification plan
Spare part code
Spare part description
Drawing number
Manufacturer's code & part number
Stock location number.
The spare parts catalogue may be produced in sufficient copies to make available for all the users
such as the maintenance personnel, stores personnel and purchase personnel. This is a very
important aspect often neglected in the organization.

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The next step in identification of spare parts is to put an identification tag or mark with the code
to enable the stores personnel identify during the time of issue. If sufficient care is not taken to
incorporate the code, a lot of time is spent in locating the part and that time is actually added to
the down-time which is really very expensive in case of vital spare parts. There are a variety of
stickers, which are scratchproof, waterproof and temperature-proof available in the market.
Efforts should be made by the organizations to make use of such identification tags and it will go
a long way in reducing the downtime.

Inventory Analysis and Selective Control

For the successful spare parts management, it is essential to analyze the spare parts inventory
based on various characteristics such as the frequency of issues, the annual consumption value,
the criticality, the lead-time, and the unit price. This is essential as it would not be possible to
exercise the same type of control for all items and it may not really be effective. Inventory
analysis aids selection of policies for selective control.
Commonly used inventory analyses are:
(1) FSN Analysis
(2) ABC Analysis
(3) VED Analysis
(4) SDE Analysis
(5) HML Analysis

FSN Analysis:
This is a Classification based on Frequency of Issues/Use:-
F, S & N stand for Fast moving, Slow moving and Nonmoving items. This form of classification
identifies the items frequently issued; less frequently issued for use and the items which are not
issued for longer period, say, 2 years. For instance, the items can be classified as follows:
Fast Moving (F) = Items that are frequently issued say more than once a month.
Slow Moving (S) = Items that are issued less than once a month.

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Non-Moving (N) = Items that are not issued\used for more than 2 years.
This classification helps spare parts management in establishing most suitable stores layout by
locating all the fast moving items near the dispensing window to reduce the handling efforts. In
addition, attention of the management is focused on the Non-Moving items to enable decision as
to whether they are required in the future or they can be salvaged. Experience shows that many
industries, which are more than 15 years old, have more than 50% of the stock as non-moving
spares.
Even if a few of them are disposed off and the locked up capital is made available, it will make
available additional working capital to the organization. Action for disposal should be taken
based on the value of each item of spare.

SDE Analysis:-
Classification based on the lead-time:
This classification is carried out based on the lead-time required to procure the spare part. The
classification is as follows:
Scarce (S): Items which are imported and those items which require more than 6 months' lead
time.
Difficult (D): Items, which require more than a fortnight but less than 6 months' lead-time.
Easily available (E): Items, which are easily available i.e., less than a fortnights’, lead-time.
This classification helps in reducing the lead-time required at least in case of vital items.
Ultimately, this will reduce stock-out costs in case of stock-outs. A comprehensive analysis may
ultimately bring down lead-time for more & more number of items. This will also result in
streamlining the purchase and receiving systems and procedures.

VED Analysis:-
This is the Classification Based on Criticality:
Several factors contribute to the criticality of a spare part. If a spare is for a machine on which
many other processes depend, it could be of very vital importance. Also if a spare is, say, an
imported component for which procurement lead time could be very high it’s non- availability
may mean a heavy loss. Similarly spares required for fighter aircraft at the time of war could be

50
of great value in terms of fighting capability. In general, criticality of a spare part can be
determined from the production downtime loss, due to spare being not available when required.
Based on criticality, spare parts are conventionally classified into three classes, viz. vital,
essential and desirable.

VITAL (V): A spare part will be termed vital, if because of its non-availability there will be very
high loss due to production downtime and/or a very high cost will be involved if the part is
procured on emergency basis. In a process industry, most spare parts for the bottleneck machine
or process will be of vital nature. For example, bearings for a kiln in a cement plant will be
considered as vital

ESSENTIAL (E): A spare part will be considered essential if, due to its non-availability,
moderate loss is incurred. For example, bearings for motors of auxiliary pumps will be classified
as essential.

DESIRABLE (D): A spare part will be desirable if the production loss is not very significant
due to its non-availability. Most of the parts will fall under this category.
The VED analysis helps in focusing the attention of the management on vital items and ensuring
their availability by frequent review and reporting. Thus, the downtime losses could be
minimized to a considerable extent.

ABC Analysis:-
Classification Based on Consumption:
Another method of classifying spares is based on annual consumption value. As it is true for
any inventory situation, Pareto's principle can be applied to classify maintenance spares based on
consumption value.

Pareto principle:
The significant items in a given group normally constitute a small portion of the total items in a
group and the majority of the items in the total will, in aggregate, be of minor significance.
This way of classification is known as ABC classification.

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CLASS A: 10% of total spares contributing towards 70% of total consumption value.
CLASS B: 20% of total spares which account for about 20% of total consumption value.
CLASS C: 70% of total spares which account for only 10% of total consumption value.
In a specific spares control system, it is quite possible that in a single year, many spares would
not have been consumed at all. In such cases, it is better to perform ABC analysis on longer
consumption period data, say 3 years. Then only spares will not be left out in this classification.

Policy for 'A' items

* Maximum control
* Value Analysis
* More than one supplier
* Control by top executives.

Policy for 'B' items

* Minimum control
* Bulk Orders
* More items from same supplier.

HML Analysis:-
Classification based on unit price:

This classification is as follows:

High Cost (H): Item whose unit value is very high
Medium Cost (M): Item whose unit value is of medium value
Low Cost (L): Item whose unit value is low
This type of analysis helps in exercising control at the shop floor level i.e., at the use point.
Proper authorization should be there for replacing a high value spare. Efforts may be necessary
to find out the means for prolonging the life of high value parts through reconditioning and
repair. Also, it may be worthwhile to apply the techniques of value analysis to find out a less
expensive substitute.

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Some other Classifications based on other characteristics:
A) Capital Spares:
These are vital spares for critical equipment. The stock-out cost for such spares is very high and
the unit cost is very high. The number of items consumed during the life time of the equipment
may be 1 or 2 or 3. Hence, the decision has to be made as to the number of items to be stored.
B) Insurance Spares:
An insurance item is a spare part that will be used to replace a failed identical part in operating
equipment whose penalty cost for downtime is very high. Hence, by definition, it is an insurance
against such failures for which the down time costs are very high. They do not become obsolete
until the parent equipment is retired from service no matter if they do not move for many years.
C) Overhaul spares:
Spare parts, which must be replaced every time the equipment is dissembled and re-assembled.
D) Wear and Tear Spares:
Spare parts, which have regular wear and tear in the course of operation of the equipment and
need to be replaced after definite number of hours of equipment operation.
E) Consumable spares
These are regularly used items such as fasteners, seals, bearings, etc. These are to be stored by
the materials department.

Inventory Control Systems

To ensure smooth functioning of a system, it is essential to develop a suitable inventory control

to achieve optimization of spare parts cost. For fast moving and slow moving items, the
following procedure can be followed taking into consideration various cost elements.
While managing the spare-parts inventory, there are four cost elements to be considered:-
1. Cost of the spare part
2. Cost of ordering
3. Cost of storage
4. Cost of stock-out.

The cost of storage includes

53
1. Rent for the stores
2. Depreciation on storage and handling facilities
3. Handling charges
4. Salaries of stores staff and clerks
5. Taxes
6. Insurance
7. Costs of stationery etc.
The cost of ordering includes:
1. Rent for purchase department
2. Depreciation for Office facilities
3. Salaries
4. Postage & Telephone expenses
5. Stationery expenses
6. Travel expenses
7. Incoming Inspection
8. Entertainment & Misc. expenses.

Concept of Economic Order Quantity

For ideal conditions, there should be no stocks at all. Every item should arrive just before it is
required in right quantity. This however is not practical for two reasons. Firstly, the supplies and
requirements are not so certain and, secondly, the costs of placing orders and follow-up work
will be very high, by ordering in such small batches. Therefore, for a particular annual
consumption as we go on increasing the quantity of order, the average stock increases and,
hence, carrying charges go on increasing. There are two basic inventory decisions managers
must make as they attempt to accomplish the functions of inventory just reviewed. These two
decisions are made for every item in the inventory.

54
1. How much an item to order when the inventory of that item to be replenished,
2. When to replenish the inventory of that item.
The economic order quantity (EOQ) model is the oldest and the best -known inventory model; its
origins date all the way back to the 1915. The purpose of using the EOQ model is to find that
particularly quantity to order which minimizes total inventory costs. Let us look for a moment at
these costs.

Inventory Costs:

There are two basic inventory costs;

i. Ordering Costs,
ii. Carrying or holding Costs.
Ordering Costs are basically the cost of getting the item into the firm’s inventory. Therefore
ordering costs are the cost of replenishing inventory. They are occurred each time an order is
placed and are expressed in Monetary Unit Cost (MU) such as $, GHc per order. Ordering Costs
start with the requisition sent to purchasing office, include all cost of issuing to purchase order
and of following it up, continue with such steps as receiving the goods and placing them into
inventory, and end with the buying firm’s paying the supplier.
Salaries constitute the major ordering cost, stationary is another ordering cost.
Ordering costs generally react inversely to carrying costs. As the size of orders increases, fewer
orders are required, thus reducing ordering costs.

Economic Ordering Quantity (E.O.Q).

EOQ=√ {2 DO }/{ Hp}

Where D = Annual consumption/demand of items in Units
O = Cost per order
H = Carrying charges per year expressed as fraction
p = Unit price
E.O.Q = Economic Order Quantity in Units.
Example

55
A company uses about 200 bearings per month. It pays a broker GHs 80 per order to locate a
supplier and handle the ordering and delivery arrangements. Its own storage and handling costs
are estimated at 30% per year.
Each bearing is estimated to cost GHs 2000. What is the most Economical Order Quantity?
Solution:
Economic Order Quantity = EOQ=√ {2 DO }/{ Hp}
The purchase price is relevant for computing carrying charges (only) and they must be in the
same units as demand. We will (arbitrarily) use months.
EOQ=√ {¿ ¿

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