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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 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

Required Skills

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

Evidence Required

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 controlmanagement reports from supervisorsmanagers 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 studiesscenarios particularly for assessment of contingencies improvement scenarios and so on targeted questioning reports from supervisors peers and colleagues thirdparty 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

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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.
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

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