Maintenance Cost Reduction Strategies And Model Development For Ethiopian Leather Industry

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Maintenance is the combination of all technical, administrative and managerial actions duringrnthe life cycle of an item intended to retain it in, or restore it to a state in which it can perform thernrequired function. One way that companies can regain control over their costs is not only tornassess these costs, but also systematically classify and identify the various costs that arernassociated with maintenance. Therefore, a maintenance cost reduction strategy is important tornreduce maintenance cost. In this study, the factors increasing maintenance cost, identification ofrncritical machines, causes of machines breakdown, and availability of purchasing, finance andrnmaintenance strategy were assessed. rnA set of four year maintenance cost data were collected for the identification of factorsrnincreasing the maintenance cost. To analyze the data six sigma tools, which are pie charts, Paretorncharts, fishbone diagram, histogram and ABC equipment classification methods were used. Duernto shortage of recorded data on breakdown time impossible to find maintenance cost associatedrnwith breakdown. rnBased on the analysis main factors increasing maintenance cost were identified. The datarnanalysis showed that the spare parts and outsourcing maintenance work cost account 66% of thernmaintenance cost. So that the spare part and outsourcing maintenance work take to furtherrninvestigation. rnOn the other hand the result from the analysis shows that the company has no properrnmaintenance strategies to different machines, record keeping and documentation on maintenancernactivities and history and they have knowledge and skill gap on how to maintain a machine, howrnto use maintenance tools and over all, unavailability of all-inclusive and standardizedrnmaintenance, purchasing and financial strategy that reduce maintenance cost to follows.rnThis paper proposed lean maintenance strategy and develop a model through incorporating thernlean maintenance strategy for the reduction maintenance cost, considering the existing problem.rnThe model simplifies the whole process and makes the activities to be efficient and standardized.

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Maintenance Cost Reduction Strategies And Model Development For Ethiopian Leather Industry

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