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Equipment Management & Maintenance Fundamentals

Production Management Operations Grade 3 生産管理オペレーション (BC検定) · ビジネス・キャリア検定 生産管理オペレーション3級 · Written by Tokutei Pass based on the official study texts; not copied verbatim.

1. Purpose of Equipment Management, LCC, Reliability (MTBF / MTTR), and Heinrich's Law

"Equipment management" is a comprehensive management activity that utilizes equipment as economically as possible throughout the entire "equipment life cycle"—from research, design, fabrication, and installation to operation, maintenance, renewal, and disposal—in order to raise corporate productivity.

The total lifetime cost including not only initial planning and acquisition costs (Initial Cost) but also post-installation operating, energy, repair/maintenance, and disposal costs (Running Cost) is called "Life Cycle Cost (LCC)"; minimizing LCC is a primary goal of equipment management.

The three key characteristics required of good equipment are: ① Economy (low LCC and high return on investment), ② Reliability (rarely breaks down and operates stably), and ③ Maintainability (easy to inspect and repair).

The indicator of reliability, "MTBF (Mean Time Between Failures)," is calculated as "Total Operating Time ÷ Number of Failures" (longer is better), while the indicator of maintainability, "MTTR (Mean Time To Repair)," is calculated as "Total Repair Time ÷ Number of Failures" (shorter is better).

Furthermore, as shown by "Heinrich's Law (the 1:29:300 rule)," behind 1 major accident (major breakdown) lie 29 minor accidents (minor breakdowns) and 300 near-misses / Hiyari-Hatto (micro-defects or signs of abnormality), making it essential to eliminate defects at the micro-defect stage.

Key points


  • LCC (Life Cycle Cost) = Equipment planning & acquisition cost (Initial Cost) + Operation, maintenance & disposal cost (Running Cost) over its entire lifetime.

  • MTBF (Mean Time Between Failures = Operating Time ÷ Failures) measures Reliability / MTTR (Mean Time To Repair = Repair Time ÷ Failures) measures Maintainability.

  • Heinrich's Law = 1 major accident (major breakdown) : 29 minor injuries (minor breakdowns) : 300 near-misses (micro-defects).

  • Example: Equipment acquisition cost 15M yen, 10-year operation & maintenance cost 12M yen, disposal cost 1M yen → Life Cycle Cost (LCC) = 15 + 12 + 1 = 28M yen

  • Example: 5 failures and 15 hours total repair time during 315 planned loading hours → Total operating time = 315 − 15 = 300 hours, MTBF = 300 ÷ 5 = 60 hours, MTTR = 15 ÷ 5 = 3 hours
WordMeaning
Life Cycle Cost (LCC: total lifetime cost)
MTBF (Mean Time Between Failures: reliability)
MTTR (Mean Time To Repair: maintainability)
Heinrich's Law (1 : 29 : 300 ratio)

2. Classification of Maintenance Methods (Preventive PM, Breakdown BM, Corrective CM, Maintenance Prevention MP)

Equipment maintenance methods are broadly divided into sustaining activities and improvement activities. Representing sustaining activities is "Preventive Maintenance (PM)," in which inspections, part replacements, and repairs are systematically carried out before breakdowns or stoppages occur.

Preventive maintenance is further divided into "Time-Based Maintenance (TBM: periodic maintenance)," which unconditionally replaces parts or performs overhauls at fixed operating-hour intervals, and "Condition-Based Maintenance (CBM: predictive maintenance)," which diagnoses deterioration via vibration, temperature, or abnormal noise and acts before limits are reached.

Conversely, repairing and restoring equipment only after a breakdown or functional stoppage has occurred is called "Breakdown Maintenance (BM)." Beyond emergency repairs for sudden failures, planned breakdown maintenance is sometimes deliberately chosen for cost reasons on non-critical items like lighting or machines with backup units.

As improvement activities, "Corrective Maintenance (CM)" modifies the structure or materials of existing equipment so failures do not recur (or to make inspection and repair easier), whereas "Maintenance Prevention (MP)" feeds past failure data into the design and procurement stage of new equipment to pursue "maintenance-free equipment that neither breaks down nor requires maintenance."

Key points


  • Preventive Maintenance (PM) = Time-Based Maintenance (TBM: periodic replacement at fixed intervals) + Condition-Based Maintenance (CBM: monitoring deterioration / predictive maintenance).

  • Breakdown Maintenance (BM) = repairing after a failure occurs (can be economical for low-criticality equipment).

  • Corrective Maintenance (CM) = modifying existing equipment to prevent recurrence and ease repair / Maintenance Prevention (MP) = designing new equipment from the start to be failure-free and maintenance-free.
WordMeaning
Preventive Maintenance (PM: TBM and CBM)
Breakdown Maintenance (BM)
Corrective Maintenance (CM)
Maintenance Prevention (MP)

3. Daily Maintenance (Cleaning, Lubricating, Retightening, Inspection) and Autonomous Maintenance Steps

The frontline activity preventing equipment deterioration is "Daily Maintenance (daily inspection)," performed before, during, and after daily operation. Its three basic conditions are "Cleaning, Lubricating, and Retightening (preventing loose bolts and nuts)," combined with "daily inspection" using the five senses.

The activity in which production operators themselves adopt the mindset "I protect my own machine" and perform daily maintenance and minor servicing is called "Autonomous Maintenance (Jishu Hozen)" (paired with specialized maintenance performed by the dedicated maintenance department).

A particularly vital principle in autonomous maintenance is "Cleaning is inspection." By wiping down every corner of the machine with their own hands, operators use their five senses (sight, hearing, touch, smell) to detect micro-defects early—such as loose bolts, cracks, oil leaks, overheating, and abnormal noises.

Autonomous maintenance unfolds step by step across 7 steps: starting from Step 1 "Initial cleaning (discovering and restoring abnormalities)," advancing to Step 2 "Countermeasures against sources of contamination and hard-to-reach areas," Step 3 "Preparation of tentative autonomous maintenance standards," Step 4 "General inspection," Step 5 "Autonomous inspection," Step 6 "Standardization," and Step 7 "Full autonomous management."

3. Daily Maintenance (Cleaning, Lubricating, Retightening, Inspection) and Autonomous Maintenance Steps

Key points


  • Three basic equipment conditions (daily maintenance to prevent deterioration) = "Cleaning, Lubricating, and Retightening" + daily inspection using the five senses.

  • Autonomous Maintenance = operators "protecting their own equipment," discovering and restoring micro-defects under the slogan "Cleaning is inspection."

  • Step 1 of Autonomous Maintenance is "Initial cleaning," Step 2 is "Countermeasures for contamination sources and hard-to-clean areas," and Step 3 is "Creating tentative standards."
WordMeaning
daily maintenance (cleaning, lubricating, retightening)
Autonomous Maintenance (protecting one's own equipment)
cleaning is inspection
countermeasures for contamination sources and hard-to-reach spots

4. Definition of TPM (Total Productive Maintenance) and Its 8 Pillars

"TPM (Total Productive Maintenance)" is a company-wide, all-employee participation activity that proactively prevents all losses—aiming for Zero Accidents, Zero Defects, and Zero Breakdowns—to build a corporate culture that pursues the ultimate limit of production system efficiency.

TPM has three major characteristics: ① It spans "all departments company-wide," including development, sales, and administration as well as production; ② It covers "all stages" of the equipment life cycle; ③ It is promoted with "participation by everyone" from top management to frontline workers through overlapping small-group activities.

TPM is deployed across "8 Pillars." The four shop-floor pillars are: ① Focused Improvement / Kobetsu Kaizen (eliminating the 16 major losses), ② Autonomous Maintenance (daily maintenance by operators), ③ Planned Maintenance (specialized maintenance by the maintenance department), and ④ Education and Training (developing operation and maintenance skills).

The four company-wide pillars are: ⑤ Initial Phase Management (vertical startup of new products/equipment and MP design), ⑥ Quality Maintenance (setting and maintaining equipment conditions for zero defects), ⑦ Administrative & Indirect Department Efficiency (Office TPM), and ⑧ Safety, Health, and Environment Management (zero accidents and reduced environmental impact).

Key points


  • TPM = Productive maintenance aiming for "Zero Accidents, Zero Defects, Zero Breakdowns" through "all-employee participation" from top executives to frontline workers via overlapping small-group activities.

  • 8 Pillars of TPM: ① Focused Improvement, ② Autonomous Maintenance, ③ Planned Maintenance, ④ Education & Training, ⑤ Initial Phase Management, ⑥ Quality Maintenance, ⑦ Office/Indirect Efficiency, ⑧ Safety & Environment.

  • "Vertical startup (shortening the period from design to mass-production trial runs and preventing initial troubles)" is the role of the 5th pillar, "Initial Phase Management."
WordMeaning
TPM (Total Productive Maintenance)
overlapping small-group activities
8 Pillars of TPM
Initial Phase Management (vertical startup)
Quality Maintenance

5. The 6 Big Losses of Equipment and Calculating Overall Equipment Effectiveness (OEE)

Factors that hinder equipment efficiency are called the "6 Big Losses of Equipment (or 7 Big Losses when cutting-tool replacement loss is separated)" and are managed and calculated in three categories.

The first category, "Downtime Losses," comprises ① Breakdown Loss (stoppages from sudden or chronic failures) and ② Setup and Adjustment Loss (stoppages for product changeover or tool replacement). Subtracting downtime losses from Loading Time gives "Operating Time," and "Availability (Time Operating Rate) = Operating Time ÷ Loading Time."

The second category, "Performance Losses," comprises ③ Minor Stoppage (Chokotei) & Idling Loss (brief stoppages or idling due to sensor trips or jammed workpieces) and ④ Reduced Speed Loss (running slower than design standard speed). The ratio after subtracting performance losses is "Performance Efficiency = (Ideal Cycle Time × Processed Quantity) ÷ Operating Time."

The third category, "Defect Losses," comprises ⑤ Defect & Rework Loss and ⑥ Startup Yield Loss. The proportion of good units to total processed units is the "Quality Rate (Rate of Conforming Products) = Good Quantity ÷ Processed Quantity."

Multiplying these three rates together yields "Overall Equipment Effectiveness (OEE) = Availability × Performance Efficiency × Quality Rate," which represents the proportion of time the equipment truly added value (Value-Operating Time ÷ Loading Time).

5. The 6 Big Losses of Equipment and Calculating Overall Equipment Effectiveness (OEE)

Key points


  • Downtime Losses (breakdowns, setup/adjustment) → Availability = (Loading Time - Downtime Loss) ÷ Loading Time.

  • Performance Losses (minor stoppages/idling, speed reduction) → Performance Efficiency = (Standard Cycle Time × Processed Quantity) ÷ Operating Time.

  • Overall Equipment Effectiveness (OEE) = Availability × Performance Efficiency × Quality Rate (good product rate).

  • Example: Loading time 500 min, downtime loss 50 min, standard cycle time 0.5 min/unit, processed quantity 720 units → Operating time = 500 − 50 = 450 min, Time operating rate = 450 ÷ 500 × 100 = 90%, Performance operating rate = (0.5 × 720) ÷ 450 × 100 = 80%

  • Example: 684 good units out of 720 processed units (time operating rate 90%, performance operating rate 80%) → Quality rate = 684 ÷ 720 × 100 = 95%, Overall Equipment Effectiveness (OEE) = 0.90 × 0.80 × 0.95 × 100 = 68.4%
WordMeaning
6 Big Losses of equipment (downtime, performance, defect losses)
minor stoppage (Chokotei) and idling loss
Overall Equipment Effectiveness (OEE)
Availability, Performance Efficiency, and Quality Rate

6. Classification of Equipment Deterioration (Functional vs. Economic, Natural vs. Forced)

"Equipment deterioration," the decline in value or performance of machinery, is divided from technical and economic viewpoints into "Functional Deterioration" and "Economic Deterioration."

Within "Functional Deterioration," the decline in physical performance or precision of the machine itself due to wear, corrosion, fatigue, or breakage is called "Absolute Deterioration (physical deterioration / aging)."

In contrast, when the equipment itself still runs but technological innovation introduces higher-performing new models or market needs shift—making the old machine inferior—it is called "Relative Deterioration (obsolescence)"; when rising maintenance costs make continued operation unprofitable, it is called "Economic Deterioration."

Meanwhile, the most critical classification for shop-floor maintenance management is "Natural Deterioration" versus "Forced Deterioration." "Natural Deterioration" is wear that progresses gradually over time according to inherent service life even when the machine is used and cared for properly.

Conversely, "Forced Deterioration" is deterioration artificially accelerated far faster than normal by neglecting cleaning, lubrication, and bolt retightening, or by overloading and misoperating the machine. The primary role of daily maintenance is the "elimination of forced deterioration."

Key points


  • Absolute deterioration (physical wear and aging) vs. Relative deterioration (obsolescence due to new technology or market changes).

  • Natural deterioration = gradual aging despite proper use / Forced deterioration = artificially accelerated decay caused by lack of cleaning, lubrication, retightening, or misoperation.

  • Thorough daily maintenance (cleaning, lubricating, retightening) to reduce "Forced Deterioration" to zero and return equipment to natural deterioration only is the foundation of maintenance.
WordMeaning
absolute deterioration (aging) and relative deterioration (obsolescence)
economic deterioration
natural deterioration
forced deterioration (human-induced accelerated wear)

7. The Three Periods of the Failure Curve (Bathtub Curve) and Countermeasures

Plotting equipment "operating time (elapsed time)" on the horizontal axis and "failure rate" on the vertical axis produces a curve resembling the cross-section of a bathtub, known as the "Bathtub Curve (failure rate curve)." It consists of three distinct periods.

The first period, the "Initial (Early) Failure Period," exhibits a high failure rate immediately after commissioning due to design, manufacturing, or installation errors, defective initial parts, or operator unfamiliarity, which then drops rapidly over time. Countermeasures include trial runs (debugging, aging, screening) and thorough initial phase management.

The second period, the "Random (Chance) Failure Period," occurs after initial defects have been weeded out; the failure rate is at its lowest and remains nearly constant and stable. Because sudden overloads or misoperations are the main causes, countermeasures are adherence to standard operating procedures, Poka-yoke, and daily maintenance.

The third period, the "Wear-Out Failure Period," sees the failure rate rise sharply again as components reach the end of their service life due to wear, metal fatigue, and aging. Countermeasures are preventive maintenance (periodic part replacement, overhauls, condition monitoring) or equipment replacement.

7. The Three Periods of the Failure Curve (Bathtub Curve) and Countermeasures

Key points


  • Bathtub Curve = horizontal axis "Time," vertical axis "Failure Rate," progressing through: ① Initial Failure Period (decreasing) → ② Random Failure Period (low and constant) → ③ Wear-Out Failure Period (increasing).

  • Initial Failure countermeasures = pre-delivery trial runs, debugging, initial management / Random Failure countermeasures = preventing misoperation (Poka-yoke) and daily inspection.

  • Wear-Out Failure countermeasures = Preventive Maintenance (periodic replacement and overhaul via TBM, predictive maintenance via CBM).
WordMeaning
Bathtub Curve (failure rate curve)
initial failure period (trial runs and debugging)
random failure period (low stable failure rate)
wear-out failure period (preventive maintenance and periodic replacement)

8. Selecting Priority Equipment (A / B / C Ranking) and Spare Parts Management

Spending equal money and effort on advanced preventive maintenance for every machine in a factory is uneconomical. Therefore, plants evaluate the criticality of each machine based on the impact of its failure and classify them into A, B, and C ranks—a process called "Selecting Priority Equipment."

Criticality is evaluated using "PQCDSME" criteria: Production (P: is there no backup machine, so a stoppage halts the entire line?), Quality (Q: will it cause major defects?), Cost (C: are repair costs and losses high?), Delivery (D), and Safety & Environment (S, E: could failure cause accidents or pollution?).

Top-priority "Rank A equipment" receives intensive Condition-Based Maintenance (CBM), Time-Based Maintenance (TBM), and Corrective Maintenance; "Rank B equipment" receives standard preventive maintenance; and low-impact "Rank C equipment" is managed economically with daily inspection plus Breakdown Maintenance (BM).

Similarly, in "Spare Parts Management" for repairs, parts are classified into long-lead-time custom parts, regularly stocked consumable parts, and off-the-shelf standard parts, and inventory is controlled via reorder-point methods to prevent both prolonged machine downtime from stockouts and excess inventory.

Key points


  • Selecting priority equipment = ranking machines into A, B, and C based on failure impact on Safety (S), Production (P), Quality (Q), Delivery (D), and Cost (C).

  • Rank A (highest priority) receives thorough preventive (CBM, TBM) and corrective maintenance / Rank C (minor impact) is managed economically via Breakdown Maintenance (BM).

  • Spare parts management = distinguishing stocked items from order-as-needed items based on procurement lead time, usage frequency, and criticality to prevent prolonged downtime from stockouts.
WordMeaning
priority equipment (A / B / C rank evaluation)
equipment evaluation by PQCDSME criteria
spare parts management
regularly stocked parts vs. order-on-demand parts

High-Frequency Exam Points and Memory Aids

Two calculation patterns in Equipment Management appear on almost every exam. First are "MTBF = Total Operating Time ÷ Number of Failures (Reliability)" and "MTTR = Total Repair Time ÷ Number of Failures (Maintainability)." Be careful not to forget to subtract repair downtime when calculating operating time.

Second is "Overall Equipment Effectiveness (OEE) = Availability × Performance Efficiency × Quality Rate." Memorize the 6 Big Losses categories: "Breakdowns and Setup/Adjustment are Downtime Losses (Availability)," while "Minor Stoppages (Chokotei) and Reduced Speed are Performance Losses (Performance Efficiency)."

For maintenance methods, watch out for trap questions swapping "TBM (time-based = periodic replacement) vs. CBM (condition-based = predictive maintenance)" and "CM (Corrective Maintenance = modifying existing machines) vs. MP (Maintenance Prevention = designing new machines from the start to be failure-free)."

Additionally, "Natural Deterioration vs. Forced Deterioration (human-induced wear from neglecting cleaning, oiling, and retightening)" and the "3 periods of the Bathtub Curve (Initial → Random → Wear-Out) and their countermeasures" are tested repeatedly.

Key points


  • MTBF = Operating Time ÷ Failures (Reliability, larger is better) / MTTR = Repair Time ÷ Failures (Maintainability, smaller is better).

  • OEE = Availability (breakdown & setup loss) × Performance Efficiency (minor stoppage & speed loss) × Quality Rate (defect & startup loss).

  • CM (improving existing equipment) vs. MP (maintenance prevention at new equipment design stage) / Forced deterioration = reduced to zero through Cleaning, Lubricating, and Retightening.
WordMeaning
MTBF and MTTR calculations
6 Big Losses and Overall Equipment Effectiveness (OEE)
CM (Corrective Maintenance) vs. MP (Maintenance Prevention)
eliminating forced deterioration

Equipment Management (Maintenance, TPM, OEE)

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