Assessor Resource

MSS405032A
Analyse cost implications of maintenance strategy

Assessment tool

Version 1.0
Issue Date: March 2024


This unit applies to an individual in an organisation who is selecting or reviewing its proactive maintenance strategy. While technical factors are significant in the choice of maintenance strategy and tools, cost factors will also impact on the selection of a maintenance strategy. This unit covers the cost analysis of maintenance strategies and complements the technical analysis covered in MSS405081A Develop a proactive maintenance strategy. The technical analysis may be performed by the same or a different person to the person undertaking the cost analysis.

This unit primarily requires the application of skills associated with communication in gathering, analysing and applying costing information and consulting with maintenance personnel. Problem solving, initiative and enterprise, and planning and organising are required to analyse and estimate the cost of maintenance strategies.

This unit of competency covers the skills and knowledge required to analyse the cost implications of different maintenance strategies and to adjust or adopt a strategy to minimise or eliminate unnecessary costs.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Prerequisites

Not applicable.


Employability Skills

This unit contains employability skills.




Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

A person who demonstrates competency in this unit must be able to provide evidence of the ability to:

identify and analyse data and other information on current and potential maintenance strategies

communicate effectively with operators, maintenance personnel, engineers and other stakeholders on implications of maintenance strategies

make recommendations on optimal maintenance strategies from a cost perspective.

Context of and specific resources for assessment

Assessment of performance must be undertaken in a workplace using or implementing one or more competitive systems and practices.

Access may be required to:

workplace procedures and plans relevant to work area

specifications and documentation relating to planned, currently being implemented, or implemented changes to work processes and procedures relevant to the assessee

documentation and information in relation to production, waste, overheads and hazard control/management

reports from supervisors/managers

case studies and scenarios to assess responses to contingencies.

Method of assessment

A holistic approach should be taken to the assessment.

Competence in this unit may be assessed by using a combination of the following to generate evidence:

demonstration in the workplace

workplace projects

suitable simulation

case studies/scenarios (particularly for assessment of contingencies, improvement scenarios, and so on)

targeted questioning

reports from supervisors, peers and colleagues (third-party reports)

portfolio of evidence.

In all cases it is expected that practical assessment will be combined with targeted questioning to assess underpinning knowledge.

Where applicable, reasonable adjustment must be made to work environments and training situations to accommodate ethnicity, age, gender, demographics and disability.

Guidance information for assessment

Assessment processes and techniques must be culturally appropriate and appropriate to the oracy, language and literacy capacity of the candidate and the work being performed.


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Required skills

Required skills include:

undertaking financial modelling and calculations relevant to different maintenance scenarios

reading and interpreting charts and diagrams

communicating with stakeholders, including technical and production staff to identify implications of maintenance strategies

identifying sources of information on depreciation, allowances and ancillary costs

analysing data and qualitative information on impact of different maintenance strategies on meeting customer needs

solving problems to root cause

preparing strategies and recommendations for stakeholders

Required knowledge

Required knowledge includes:

techniques, calculations and data used in different maintenance strategies

cost components of maintenance strategies

interrelationship of cost components and maintenance activities

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Competitive systems and practices

Competitive systems and practices may include, but are not limited to:

lean operations

agile operations

preventative and predictive maintenance approaches

monitoring and data gathering systems, such as Systems Control and Data Acquisition (SCADA) software, Enterprise Resource Planning (ERP) systems, Materials Resource Planning (MRP) and proprietary systems

statistical process control systems, including six sigma and three sigma

Just in Time (JIT), kanban and other pull-related operations control systems

supply, value, and demand chain monitoring and analysis

5S

continuous improvement (kaizen)

breakthrough improvement (kaizen blitz)

cause/effect diagrams

overall equipment effectiveness (OEE)

takt time

process mapping

problem solving

run charts

standard procedures

current reality tree

Competitive systems and practices should be interpreted so as to take into account:

the stage of implementation of competitive systems and practices

the size of the enterprise

the work organisation, culture, regulatory environment and the industry sector

Maintenance strategies and techniques

Maintenance strategies and techniques may include:

total productive maintenance (TPM)

reliability centred maintenance (RCM)

root cause analysis (RCA)

mean time between failures (MBTF)

failure mode and effects analysis (FMEA)

condition monitoring

Cost components of maintenance

For costing purposes, maintenance strategies should include:

direct costs, such as labour and materials, and also include comparison with cost of equipment replacement, re-engineering, and breakdown repair strategies, as well as cost of lost production under different maintenance strategies

TPM

TPM is an application of total quality management to maintenance with the intention of increasing reliability, getting it right first time and increasing OEE

RCM

RCM moves maintenance from reactive, or even planned/programmed towards a focus on uptime and OEE

RCA

RCA is a formal problem solving technique. In RCA there are many possible causes of any problem. Eliminating some will have no impact, while eliminating others will ameliorate the problem. However, elimination of the root cause will eliminate the problem completely. There should only be one root cause for any problem and so the analysis should continue until this one cause is found. Elimination of the root cause permanently eliminates the problem

OEE

OEE is the combination of the main factors causing loss of productive capacity from equipment/plant and is:

OEE = availability x performance x quality rate

where:

availability takes into account losses due to breakdown, set-up and adjustments

performance takes into account losses due to minor stoppages, reduced speed and idling

quality rate takes into account t losses due to rejects, reworks and start-up waste

Uptime

Uptime refers to the overall availability of the plant (it is the inverse of downtime) or the unavailability of the plant. Ideal uptime is 100%

MTBF

MTBF is one key measure of the effectiveness of a maintenance procedure, and is an indicator as to whether root causes are being found and resolved. If MTBF is reducing, then it is an indicator that the maintenance regime is failing.

There are many possible causes of any problem. Eliminating some will have no impact, others will ameliorate the problem. However, elimination of the root cause will eliminate the problem. There should only be one root cause for any problem and so the analysis should continue until this one cause is found. Elimination of the root cause permanently eliminates the problem.

Depending on the equipment, operations and procedures of the organisation, alternative statistical records of maintenance and maintenance related events may be substituted for MTBF providing they relate strategies for improving OEE.

FMEA

FMEA is a systematic approach that identifies potential failure modes in a system, product, or process caused by either design or operations/assembly process deficiencies. It also identifies critical or significant design or process characteristics that require special controls to prevent or detect failure modes. FMEA is a tool used to prevent problems from occurring.

Some industry sectors have highly adapted forms of FMEA and may practice traditional FMEA in say their routine maintenance while using another technique, such as Hazard and Operability Studies (HAZOP) for design and modification.

HAZOP) is a form of FMEA which has been practiced by the process industries for over 30 years and examines the implications of changes in process conditions to process stability.

Condition monitoring

In this unit condition monitoring is used to describe the process of analysing the implications of condition monitoring data for proactive maintenance whether it be obtained from non-destructive testing (NDT) reports, visual assessment by experts, diagnostic reports obtained from SCADA or other enterprise or equipment software and product or process quality analyses

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Determine cost of failure of plant/equipment 
Determine cost of a planned maintenance shutdown activity, including costs of re-start 
Determine cost of maintenance for a planned activity 
Determine cost of maintenance for an unplanned activity 
Determine costs of condition monitoring 
Identify cost implications of different maintenance strategies 

Forms

Assessment Cover Sheet

MSS405032A - Analyse cost implications of maintenance strategy
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Assessment Record Sheet

MSS405032A - Analyse cost implications of maintenance strategy

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Assessment task 1: [title] Result: Competent Not yet competent

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