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Elements and Performance Criteria

1. Analyse cost components of maintenance
   • Determine cost of failure of plant/equipment
   • Determine cost of a planned shut down, maintain, start up activity
   • Determine cost of maintenance activity for a planned activity
   • Determine cost of maintenance activity for an unplanned activity
   • Determine costs of condition monitoring
   • Identify cost implications for maintenance strategy
2. Estimate life cycle costs of plant/ equipment
   • Determine initial capital cost
   • Estimate servicing, maintenance and repair costs
   • Estimate production and other costs associated with service, maintenance and repair
   • Determine depreciation and other applicable allowances
   • Estimate ancillary costs such as training, commissioning, productivity loss
   • Estimate technological life and costs of changing to current technology/costs of retaining obsolete equipment
   • Estimate annualised costs in present value terms.
   • Identify life cycle cost implications for strategy.
3. Liaise with proactive maintenance strategy developer
   • Identify cost implications for different strategies
   • Negotiate a strategy which minimises total costs
   • Monitor the implementation of the strategy to ensure the costs are minimised
   • Make required adjustments

Required Skills

Required skills

calculation analysis problem solving

Required knowledge

cost components of maintenance interrelationship of cost components and maintenance activities

Evidence Required

The Evidence Guide describes the underpinning knowledge and skills that must be demonstrated to prove competence it is essential for assessment and must be read in conjunction with the performance criteria the range statement and the assessment guidelines of the relevant training package
Overview of assessment requirements	The person will analyse and determine cost components for maintenance strategies The strategies implemented will be cost effective
What are the specific resource requirements for this unit	Access to a workplace implementing competitive manufacturing strategies No other specific resources are required
In what context should assessment occur	Assessment will need to occur in a workplace
Are there any other units which could or should be assessed with this unit or which relate directly to this unit	This unit may be assessed concurrently with appropriate units
What method of assessment should apply	Assessors must be satisfied that the person can consistently perform the unit as a whole as defined by the Elements Performance Criteria skills and knowledge A holistic approach should be taken to the assessment Assessors should gather sufficient fair valid reliable authentic and current evidence from a range of sources Sources of evidence may include direct observation reports from supervisors peers and colleagues project work samples organisation records and questioning Assessment should not require language literacy or numeracy skills beyond those required for the unit The assessee will have access to all techniques procedures information resources and aids which would normally be available in the workplace The method of assessment should be discussed and agreed with the assessee prior to the commencement of the assessment
What evidence is required for demonstration of consistent performance	Evidence from a single optimisation may be adequate although generally analyses of a few products with different cost structures or customer benefit structures would be required

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Range Statement

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.
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 Total Preventative Maintenance/Total Productive Maintenance (TPM) is an application of total quality management to maintenance with the intention of increasing reliability, getting it right first time and increasing OEE. Reliability Centred Maintenance (RCM) moves maintenance from reactive, or even planned/programmed towards a focus on uptime and OEE RCA 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. 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%. Overall equipment efficiency (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 losses due to rejects, re-works and start up waste. Mean time between failure (MBTF) 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 MBTF is reducing, then it is an indicator that the maintenance regime is failing. Failure Mode and Effects Analysis (FMEA) is a systematic approach that identifies potential failure modes in a system, product, or manufacturing/assembly operation caused by either design or manufacturing/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 HAZOP) for design and modification. Hazard and Operability Studies (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 involves often quite sophisticated monitoring of equipment including such things as vibration monitoring, instrumental analysis of lubricating oil etc to determine the current state of the equipment, monitor the change in this condition and predict when it needs servicing/maintenance to maintain reliability.

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