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The most important keywords used in this book are as follows: product, process, production system, productivity, reliability, availability, maintainability, risk, safety, failure modes a

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Springer Series in Reliability Engineering

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Professor Hoang Pham

Department of Industrial and Systems Engineering

Rutgers, The State University of New Jersey

96 Frelinghuysen Road

Piscataway, NJ 08854-8018

USA

Other titles in this series

The Universal Generating Function

in Reliability Analysis and Optimization

Gregory Levitin

Warranty Management and Product

Manufacture

D.N.P Murthy and Wallace R Blischke

Maintenance Theory of Reliability

Toshio Nakagawa

System Software Reliability

Hoang Pham

Reliability and Optimal Maintenance

Hongzhou Wang and Hoang Pham

Applied Reliability and Quality

Terje Aven and Jan Erik Vinnem

Satisfying Safety Goals by Probabilistic

Risk Assessment

Hiromitsu Kumamoto

Offshore Risk Assessment (2nd Edition)

Jan Erik Vinnem

The Maintenance Management Framework

Adolfo Crespo Márquez

Human Reliability and Error in portation Systems

Trans-B.S Dhillon

Complex System Maintenance Handbook

D.N.P Murthy and Khairy A.H Kobbacy

Recent Advances in Reliability and Quality

Poong Hyun Seong

Risks in Technological Systems

Torbjörn Thedéen and Göran Grimvall

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Riccardo Manzini · Alberto Regattieri Hoang Pham · Emilio Ferrari

Maintenance for

Industrial Systems

With 504 figures and 174 tables

123

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96 Frelinghuysen RoadPiscataway NJ 08854-8018USA

hopham@rci.rutgers.edu

Prof Emilio FerrariUniversità di BolognaDipartimento Ingegneriadelle Costruzioni Meccaniche,Nucleari, Aeronautiche

e di Metallurgia (DIEM)Viale Risorgimento, 2

40136 BolognaItaly

emilio.ferrari@unibo.itISSN 1614-7839

ISBN 978-1-84882-574-1 e-ISBN 978-1-84882-575-8

DOI 10.1007/978-1-84882-575-8

Springer Dordrecht Heidelberg London New York

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Control Number: 2009937576

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The publisher makes no representation, express or implied, with regard to the accuracy of the informa-tion contained in this book and cannot accept any legal responsibility or liability for any errors or omissions that may be made.

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to Sara and Marta

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Billions of dollars are currently spent producing high-technology products and vices in a variety of production systems operating in different manufacturing andservice sectors (e g., aviation, automotive industry, software development, banksand financial companies, health care) Most of these products are very complex andsophisticated owing to the number of functions and components As a result, theproduction process that realizes these products can be very complicated.

ser-A significant example is the largest passenger airliner in the world, the ser-AirbusA380, also known as the “Superjumbo,” with an operating range of approximately15,200 km, sufficient to fly directly from New York City to Hong Kong The failureand repair behaviors of the generic part of this system can be directly or indirectlyassociated with thousands of different safety implications and/or quality expecta-tions and performance measurements, which simultaneously deal with passengers,buildings, the environment, safety, and communities of people

What is the role of maintenance in the design and management of such a uct, process, or system? Proper maintenance definitely helps to minimize problems,reduce risk, increase productivity, improve quality, and minimize production costs.This is true both for industrial and for infrastructure assets, from private to govern-ment industries producing and supplying products as well as services

prod-We do not need to think about complex production systems, e g., nuclear powerplants, aerospace applications, aircraft, and hospital monitoring control systems, tounderstand the strategic role of maintenance for the continuous functioning of pro-duction systems and equipment

Concepts such as safety, risk, and reliability are universally widespread andmaybe abused, because daily we make our choices on the basis of them, willingly

or not That is why we prefer a safer or a more reliable car, or why we travel with

a safer airline instead of saving money with an ill-famed company The acquisition

of a safer, or high-quality, article is a great comfort to us even if we pay more.The strategic role of maintenance grows in importance as society grows in com-plexity, global competition increases, and technological research finds new applica-tions Consequently the necessity for maintenance actions will continue to increase

in the future as will the necessity to further reduce production costs, i e., increaseefficiency, and improve the safety and quality of products and processes In particu-lar, during the last few decades the so-called reliability and maintenance engineering

vii

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viii Preface

discipline has grown considerably in both universities and industry as well as in

gov-ernment

The activities of planning, design, management, control, and optimization of

maintenance issues are very critical topics of reliability and maintenance

engineer-ing These are the focus of this book, whose aim is to introduce practitioners and

researchers to the main problems and issues in reliability engineering and

mainte-nance planning and optimization

Several supporting decision models and methods are introduced and applied: the

book is full of numerical examples, case studies, figures, and tables in order to

quickly introduce the reader to very complicated engineering problems Basic theory

and fundamentals are continuously combined with practical experience and exercises

useful to practitioners but also to students of undergraduate and graduate schools of

engineering, science, and management

The most important keywords used in this book are as follows: product, process,

production system, productivity, reliability, availability, maintainability, risk, safety,

failure modes and criticality analyses (failure modes and effects analysis and failure

mode, effects, and criticality analysis), prediction and evaluation, assessment,

pre-ventive maintenance, inspection maintenance, optimization, cost minimization, spare

parts fulfillment and management, computerized maintenance management system,

total productive maintenance, overall equipment effectiveness, fault tree analysis,

Markov chains, Monte Carlo simulation, numerical example, and case study

The book consists of 12 chapters organized as introduced briefly below

Chapter 1 identifies and illustrates the most critical issues concerning the

plan-ning activity, the design, the management, and the control of modern production

systems, both producing goods (manufacturing systems in industrial sectors) and/or

supplying services (e g., hospital, university, bank) This chapter identifies the role

of maintenance in a production system and the capability of guaranteeing a high level

of safety, quality, and productivity in a proper way

Chapter 2 introduces quality assessment, presents statistical quality control

mod-els and methods, and finally Six Sigma theory and applications A brief illustration

and discussion of European standards and specifications for quality assessment is

also presented

Chapter 3 introduces the reader to the actual methodology for the implementation

of a risk evaluation capable of reducing risk exposure and guaranteeing the desired

level of safety

Chapter 4 examines the fundamental definitions concerning maintenance, and

discusses the maintenance question in product manufacturing companies and

ser-vice suppliers The most important maintenance engineering frameworks, e g.,

reliability-centered maintenance and total productive maintenance, are presented

Chapter 5 introduces the reader to the definition, measurement, management, and

control of the main reliability parameters that form the basis for modeling and

eval-uating activities in complex production systems In particular, the basic maintenance

terminology and nomenclature related to a generic item as a part, component, device,

subsystem, functional unit, piece of equipment, or system that can be considered

in-dividually are introduced

Chapter 6 deals with reliability evaluation and prediction It also discusses the

elementary reliability configurations of a system in order to introduce the reader to

the basic tools used to evaluate complex production systems

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Chapter 7 discusses about the strategic role of the maintenance information tem and computerized maintenance management systems in reliability engineering.Failure rate prediction models are also illustrated and applied.

sys-Chapter 8 introduces models and methods supporting the production system signer and the safety and/or maintenance manager to identify how subsystems andcomponents could fail and what the corresponding effects on the whole system are,and to quantify the reliability parameters for complex systems In particular models,methods, and tools (failure modes and effects analysis and failure mode, effects, andcriticality analysis, fault tree analysis, Markov chains, Monte Carlo dynamic simu-lation) for the evaluation of reliability in complex production systems are illustratedand applied to numerical examples and case studies

de-Chapter 9 presents basic and effective models and methods to plan and conductmaintenance actions in accordance with corrective, preventive, and inspection strate-gies and rules Several numerical examples and applications are illustrated

Chapter 10 discusses advanced models and methods, including the block ments, age replacements, and inspection policies for maintenance management.Chapter 11 presents and applies models and tools for supporting the activities offulfillment and management of spare parts

replace-Chapter 12 presents two significant case studies on reliability and maintenanceengineering In particular, several models and methods introduced and exemplified

in previous chapters are applied and compared

We would like to thank our colleagues and students, particularly those who dealwith reliability engineering and maintenance every day, and all professionals fromindustry and service companies who supported our research and activities, Springerfor its professional help and cooperation, and finally our families, who encouraged

us to write this book

Bologna (Italy) and Piscataway (NJ, USA) Riccardo Manzini

Hoang PhamEmilio Ferrari

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1 A New Framework for Productivity in Production Systems 1

1.1 Introduction 1

1.2 A Multiobjective Scenario 2

1.2.1 Product Variety 3

1.2.2 Product Quality 3

1.3 Production System Design Framework 4

1.4 Models, Methods, and Technologies for Industrial Management 5 1.4.1 The Product and Its Main Features 5

1.4.2 Reduction of Unremunerated Complexity: The Case of Southwest Airlines 6

1.4.3 The Production Process and Its Main Features 7

1.4.4 The Choice of Production Plant 7

1.5 Design, Management, and Control of Production Systems 10

1.5.1 Demand Analysis 10

1.5.2 Product Design 10

1.5.3 Process and System Design 10

1.5.4 Role of Maintenance in the Design of a Production System 11

1.5.5 Material Handling Device Design 11

1.5.6 System Validation and Profit Evaluation 11

1.5.7 Project Planning and Scheduling 11

1.5.8 New Versus Existing Production Systems 11

1.6 Production System Management Processes for Productivity 13

1.6.1 Inventory and Purchasing Management 14

1.6.2 Production Planning 14

1.6.3 Distribution Management 14

1.7 Research into Productivity and Maintenance Systems 14

xi

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2 Quality Management Systems and Statistical Quality Control 17

2.1 Introduction to Quality Management Systems 17

2.2 International Standards and Specifications 19

2.3 ISO Standards for Quality Management and Assessment 19

2.3.1 Quality Audit, Conformity, and Certification 19

2.3.2 Environmental Standards 21

2.4 Introduction to Statistical Methods for Quality Control 23

2.4.1 The Central Limit Theorem 23

2.4.2 Terms and Definition in Statistical Quality Control 24

2.5 Histograms 25

2.6 Control Charts 25

2.7 Control Charts for Means 26

2.7.1 The R-Chart 26

2.7.2 Numerical Example, R-Chart 29

2.7.3 The Nx-Chart 29

2.7.4 Numerical Example, Nx-Chart 30

2.7.5 The s-Chart 30

2.7.6 Numerical Example, s-Chart and Nx-Chart 33

2.8 Control Charts for Attribute Data 33

2.8.1 The p-Chart 35

2.8.2 Numerical Example, p-Chart 36

2.8.3 The np-Chart 37

2.8.4 Numerical Example, np-Chart 37

2.8.5 The c-Chart 37

2.8.6 Numerical Example, c-Chart 39

2.8.7 The u-Chart 40

2.8.8 Numerical Example, u-Chart 40

2.9 Capability Analysis 40

2.9.1 Numerical Example, Capability Analysis and Normal Probability 42

2.9.2 Numerical Examples, Capability Analysis and Nonnormal Probability 46

2.10 Six Sigma 48

2.10.1 Numerical Examples 51

2.10.2 Six Sigma in the Service Sector Thermal Water Treatments for Health and Fitness 51

3 Safety and Risk Assessment 53

3.1 Introduction to Safety Management 53

3.2 Terms and Definitions Hazard Versus Risk 54

3.3 Risk Assessment and Risk Reduction 57

3.4 Classification of Risks 58

3.5 Protective and Preventive Actions 60

3.6 Risk Assessment, Risk Reduction, and Maintenance 63

3.7 Standards and Specifications 63

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Contents xiii

4 Introduction to Maintenance in Production Systems 65

4.1 Maintenance and Maintenance Management 65

4.2 The Production Process and the Maintenance Process 66

4.3 Maintenance and Integration 69

4.4 Maintenance Workflow 70

4.5 Maintenance Engineering Frameworks 70

4.6 Reliability-Centered Maintenance 72

4.7 Total Productive Maintenance 73

4.7.1 Introduction to TPM 73

4.7.2 The Concept of TPM 74

4.7.3 TPM Operating Instruments 75

4.7.4 From Tradition to TPM: A Difficult Transition 76

4.8 Maintenance Status Survey 80

4.9 Maintenance Outsourcing and Contracts 83

5 Basic Statistics and Introduction to Reliability 87

5.1 Introduction to Reliability 88

5.2 Components and Systems in Reliability 88

5.3 Basic Statistics in Reliability Engineering 89

5.4 Time to Failure and Time to Repair 90

5.5 Probability Distribution Function 90

5.6 Repairable and Nonrepairable Systems 91

5.7 The Reliability Function – R(t) 91

5.8 Hazard Rate Function 92

5.8.1 Hazard Rate Profiles 94

5.8.2 Mean Time to Failure 95

5.9 Stochastic Repair Process 95

5.10 Parametric Probability Density Functions 97

5.10.1 Constant Failure Rate Model: The Exponential Distribution 97

5.10.2 Exponential Distribution Numerical example 99

5.10.3 The Normal and Lognormal Distributions 103

5.10.4 Normal and Lognormal Distributions Numerical example 106

5.10.5 The Weibull Distribution 110

5.10.6 Weibull Distribution Numerical Example 112

5.11 Repairable Components/Systems: The Renewal Process and Availability A(t) 113

5.12 Applications and Case Studies 117

5.12.1 Application 1 – Nonrepairable Components 117

5.12.2 Application 2 – Repairable System 122

6 Reliability Evaluation and Reliability Prediction Models 133

6.1 Introduction 133

6.2 Data Collection and Evaluation of Reliability Parameters 134

6.2.1 Empirical Functions Direct to Data 135

6.2.2 Theoretical Distribution Research 145

6.3 Introduction to Reliability Block Diagrams 152

6.4 Serial Configuration 153

6.4.1 Numerical Example – Serial Configuration 154

6.5 Parallel Configuration 161

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6.5.1 Numerical Example – Parallel Configuration 163

6.6 Combined Series–Parallel Systems 168

6.7 Combined Parallel–Series Systems 170

6.8 k-out-of-n Redundancy 170

6.8.1 Numerical Examples, k-out-of-n Redundancy 171

6.9 Simple Standby System 174

6.9.1 Numerical Example – Time-Dependent Analysis: Standby System 180

6.10 Production System Efficiency 183

6.10.1 Water Supplier System 185

6.10.2 Continuous Dryer System 187

7 Maintenance Information System and Failure Rate Prediction 189

7.1 The Role of a Maintenance Information System 189

7.2 Maintenance Information System Framework 190

7.2.1 Data Collection 190

7.2.2 Maintenance Engineering 192

7.2.3 Interventions and Workload Analysis 194

7.2.4 Spare Parts and Equipment Management 195

7.3 Computer Maintenance Management Software 196

7.4 CMMS Implementation: Procedure and Experimental Evidence 199 7.4.1 System Configuration and Integration 199

7.4.2 Training and Data Entry 200

7.4.3 Go Live 200

7.4.4 Postimplementation Phase and Closing 200

7.4.5 Experimental Evidence Concerning CMMS Implementation 200

7.5 Failure Rate Prediction 204

7.5.1 Accelerated Testing 204

7.5.2 Failure Data Prediction Using a Database 206

7.6 Remote Maintenance/Telemaintenance 214

7.6.1 Case Study 216

8 Effects Analysis and Reliability Modeling of Complex Production Systems 219

8.1 Introduction to Failure Modes Analysis and Reliability Evaluation 220

8.2 Failure Modes and Effects Analysis 220

8.2.1 Product Analysis 221

8.2.2 Failure Mode, Effects, and Causes Analysis 222

8.2.3 Risk Evaluation 222

8.2.4 Corrective Action Planning 225

8.2.5 FMEA Concluding Remarks 229

8.3 Failure Mode, Effects, and Criticality Analysis 229

8.3.1 Qualitative FMECA 231

8.3.2 Quantitative FMECA 231

8.3.3 Numerical Examples 232

8.4 Introduction to Fault Tree Analysis 236

8.5 Qualitative FTA 239

8.5.1 Fault Tree Construction Guidelines 239

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Contents xv

8.5.2 Numerical Example 1 Fault Tree Construction 240

8.5.3 Boolean Algebra and Application to FTA 241

8.5.4 Qualitative FTA: A Numerical Example 242

8.6 Quantitative FTA 244

8.6.1 Quantitative FTA, Numerical Example 1 248

8.6.2 Quantitative FTA, Numerical Example 2 252

8.6.3 Numerical Example Quantitative Analysis in the Presence of a Mix of Statistical Distributions 254

8.7 Application 1 – FTA 263

8.7.1 Fault Tree Construction 264

8.7.2 Qualitative FTA and Standards-Based Reliability Prediction 266

8.7.3 Quantitative FTA 269

8.8 Application 2 – FTA in a Waste to Energy System 277

8.8.1 Introduction to Waste Treatment 277

8.8.2 Case study 278

8.8.3 Emissions and Externalities: Literature Review 279

8.8.4 SNCR Plant 280

8.8.5 SNCR Plant Reliability Prediction and Evaluation Model 281

8.8.6 Qualitative FTA Evaluation 283

8.8.7 NOxEmissions: Quantitative FTA Evaluation 287

8.8.8 Criticality Analysis 292

8.8.9 Spare Parts Availability, What-If Analysis 295

8.8.10 System Modifications for ENF Reduction and Effects Analysis 300 8.9 Markov Analysis and Time-Dependent Components/Systems 301

8.9.1 Redundant Parallel Systems 302

8.9.2 Parallel System with Repairable Components 304

8.9.3 Standby Parallel Systems 306

8.10 Common Mode Failures and Common Causes 309

8.10.1 Unavailability of a System Subject to Common Causes 310

8.10.2 Numerical Example, Dependent Event 311

9 Basic Models and Methods for Maintenance of Production Systems 313 9.1 Introduction to Analytical Models for Maintenance of Production Systems 314

9.1.1 Inspection Versus Monitoring 315

9.2 Maintenance Strategies 315

9.3 Introduction to Preventive Maintenance Models 318

9.4 Component Replacement 319

9.4.1 Time-Related Terms and Life Cycle Management 319

9.4.2 Numerical Example Preventive Replacement and Cost Minimization 320

9.5 Time-Based Preventive Replacement – Type I Replacement Model 323

9.5.1 Numerical Example Type I Replacement Model 324

9.5.2 Numerical Example Type I Model and Exponential Distribution of ttf 325

9.5.3 Type I Replacement Model for Weibull distribution of ttf 326

9.5.4 The Golden Section Search Method 326

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9.5.5 Numerical Example Type I Model and the Golden Section

Method 328

9.6 Time-Based Preventive Replacement Including Duration of Replacements 333

9.6.1 Numerical Example 1: Type I Replacement Model Including Durations Tpand Tf 333

9.6.2 Type I Model with Duration of Replacement for Weibull Distribution of ttf 335

9.6.3 Numerical Example 2: Type I Model with Durations Tpand Tf 335

9.6.4 Practical Shortcut to tp Determination 335

9.7 Block Replacement Strategy – Type II 339

9.7.1 Renewal Process 340

9.7.2 Laplace Transformation: W(t) and w(t) 341

9.7.3 Renewal Process and W(t) Determination, Numerical Example 341 9.7.4 Numerical Example, Type II Model 343

9.7.5 Discrete Approach to W(t) 348

9.7.6 Numerical Examples 349

9.7.7 Practical Shortcut to W(t) and tp Determination 352

9.8 Maintenance Performance Measurement in Preventive Maintenance 353

9.8.1 Numerical Example 354

9.9 Minimum Total Downtime 355

9.9.1 Type I – Minimum Downtime 355

9.9.2 Type II – Downtime Minimization 357

9.10 Group Replacement: The Lamp Replacement Problem 358

9.11 Preventive Maintenance Policies for Repairable Systems 359

9.11.1 Type I Policy for Repairable Systems 360

9.11.2 Type II Policy for Repairable Systems 370

9.12 Replacement of Capital Equipment 372

9.12.1 Minimization of Total Cost 372

9.12.2 Numerical Example 372

9.13 Literature Discussion on Preventive Maintenance Strategies 372

9.14 Inspection Models 373

9.15 Single Machine Inspection Model Based on a Constant Value of Conditional Probability Failure 375

9.15.1 Numerical Example 1, Elementary Inspection Model 376

9.15.2 Numerical Example 2, Elementary Inspection Model 377

9.16 Inspection Frequency Determination and Profit per Unit Time Maximization 378

9.17 Inspection Frequency Determination and Downtime Minimization 380

9.18 Inspection Cycle Determination and Profit per Unit Time Maximization 381

9.18.1 Exponential Distribution of ttf 381

9.18.2 Weibull Distribution of ttf 382

9.18.3 Numerical Example 382

9.19 Single Machine Inspection Model Based on Total Cost per Unit Time Minimization 383

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Contents xvii

9.20 Single Machine Inspection Model Based on Minimal Repair

and Cost Minimization 384

9.21 Inspection Model Based on Expected Availability per Unit Time Maximization 385

9.22 Group of Machines Inspection Model 386

9.23 A Note on Inspection Strategies 387

9.24 Imperfect Maintenance 388

9.24.1 Imperfect Preventive Maintenance p – q 388

9.25 Maintenance-Free Operating Period 390

9.25.1 Numerical Example (Kumar et al 1999) 391

9.25.2 MFOPS and Weibull Distribution of ttf 392

9.26 Opportunistic Maintenance Strategy 393

10 Advanced Maintenance Modeling 397

10.1 Introduction 397

10.2 Maintenance Policy 398

10.2.1 Age Replacement 398

10.2.2 Block Replacement 399

10.3 Modeling of Nonrepairable Degraded Systems 399

10.4 Modeling of Inspection-Maintenance Repairable Degraded Systems 402

10.4.1 Calculate EŒNI 403

10.4.2 Calculate Pp 404

10.4.3 Expected Cycle Length Analysis 405

10.4.4 Optimization of Maintenance Cost Rate Policy 405

10.4.5 Numerical Example 406

10.5 Warranty Concepts 406

10.6 Conclusions 408

11 Spare Parts Forecasting and Management 409

11.1 Spare Parts Problem 409

11.2 Spare Parts Characterization 410

11.3 Forecasting Methods 411

11.4 Croston Model 412

11.5 Poisson Model 413

11.6 Binomial Model 414

11.6.1 Numerical Example 415

11.7 Spare Parts Forecasting Accuracy 416

11.8 Spare Parts Forecasting Methods: Application and Case Studies 417 11.8.1 Case Study 1: Spare Parts Forecasting for an Aircraft 417

11.8.2 Case Study 2: Spare Parts Forecasting in a Steel Company 418

11.9 Methods of Spare Parts Management 422

11.9.1 Spare Parts Management: Qualitative Methods 423

11.9.2 Spare Parts Management: Quantitative Methods 426

12 Applications and Case Studies 433

12.1 Preventive Maintenance Strategy Applied to a Waste to Energy Plant 433

12.1.1 Motor System Reliability Evaluation 434

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12.1.2 Bucket Reliability Evaluation 436

12.1.3 Motor System Determination of Maintenance Costs 437

12.1.4 Time-Based Preventive Replacement for the Motor System 439

12.1.5 Time-Based Preventive Replacement for the Bucket Component 439 12.1.6 Time-Based Preventive Replacement with Durations Tpand Tf 441 12.1.7 Downtime Minimization 442

12.1.8 Monte Carlo Dynamic Analysis 442

12.1.9 Monte Carlo Analysis of the System 446

12.2 Reliability, Availability, and Maintainability Analysis in a Plastic Closures Production System for Beverages 446

12.2.1 RBD construction 448

12.2.2 Rotating Hydraulic Machine 449

12.2.3 Data Collection and Reliability Evaluation of Components 449

12.2.4 Reliability Evaluation, Nonrepairable Components/Systems 454

12.2.5 Data on Repairs and Maintenance Strategies 456

12.2.6 Monte Carlo Analysis of the Repairable System 456

12.2.7 Alternative Scenarios and System Optimization 460

12.3 Conclusions and Call for New Contributions 462

A Appendix 463

A.1 Standardized Normal Distribution 463

A.2 Control Chart Constants 464

A.3 Critical Values of Student’s Distribution with Degree of Freedom 465

Bibliography 467

Index 475

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A New Framework for Productivity

Contents

1.1 Introduction 1

1.2 A Multiobjective Scenario 2

1.2.1 Product Variety 3

1.2.2 Product Quality 3

1.3 Production System Design Framework 4

1.4 Models, Methods, and Technologies for Industrial Management 5

1.4.1 The Product and Its Main Features 5

1.4.2 Reduction of Unremunerated Complexity: The Case of Southwest Airlines 6

1.4.3 The Production Process and Its Main Features 7 1.4.4 The Choice of Production Plant 7

1.5 Design, Management, and Control of Production Systems 10

1.5.1 Demand Analysis 10

1.5.2 Product Design 10

1.5.3 Process and System Design 10

1.5.4 Role of Maintenance in the Design of a Production System 11

1.5.5 Material Handling Device Design 11

1.5.6 System Validation and Profit Evaluation 11

1.5.7 Project Planning and Scheduling 11

1.5.8 New Versus Existing Production Systems 11

1.6 Production System Management Processes for Productivity 13

1.6.1 Inventory and Purchasing Management 14

1.6.2 Production Planning 14

1.6.3 Distribution Management 14

1.7 Research into Productivity and Maintenance Systems 14

The pressure of the global market we all face

in-creased competition for share The fundamental key is

the productivity of the system All players in the

indus-try are in the same race to become low cost producers, including manufacturers, our suppliers, and their sup-pliers, too And each of us must do it while improv-ing quality, because consumers require it (Alain Batty, CEO, Ford Motor Company of Canada, 2004)

High levels of product personalization and qual-ity standardization are essential requirements in cur-rent market conditions, in which prices are falling, and

in which a new production paradigm for a production system has come into existence

The planning, management, and control of a pro-duction system are crucial activities requiring an in-tegrated approach examining the internal features of available production resources and guiding their ratio-nal exploitation

Maintenance techniques play a major role in sup-porting research into productivity, and these very ef-fective tools must be adopted by modern companies

1.1 Introduction

In this book explicitly devoted to maintenance, the first chapter aims to identify and to illustrate the most critical issues concerning the planning activ-ity, the design, the management, and the control of modern production systems, both producing goods (manufacturing systems in industrial sectors) and/or supplying services (e g., hospital, university, bank)

By this discussion it is possible to identify the role of maintenance in a production system and the capability

of guaranteeing a high level of safety, quality, and pro-ductivity in a proper way In particular, the expression

© Springer 2010

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“research for productivity” frequently animates the

sections of this chapter

The following section introduces the uncertain

op-erating scenario that modern companies have to face

to compete in a globalized market

Section 1.3 illustrates a meta-framework for the

de-sign of a production system with an enterprise

per-spective The aim is to underline the most important

tasks and decisional steps affecting the performance

of the system with particular attention being given to

the business and corporate strategies of the enterprise

and its related companies

Section 1.4 briefly discusses the models, methods,

and technologies currently available to support the

de-cision-making process dealing with production

sys-tems

Section 1.5 presents a conceptual framework,

pro-posed by the authors, for the integration of the design,

management, and control of a production system

1.2 A Multiobjective Scenario

Vaughn et al (2002) identified the most critical factors

affecting the performance of a production system as

part of an enterprise system The enterprise does not

have complete control over these factors:

• Market uncertainty This is defined as the demand

fluctuations for the product, including both

short-term random variability and long-short-term step/cyclical

variability The uncertainty of demand can create

overcapacity or undercapacity, generating customer

dissatisfaction

• Production volume, i e., the number of products to

be manufactured over a time period Market

uncer-tainty and production volume are tightly coupled

Production volume determines the production

sys-tem capacity and most of the factory physical

de-sign, e g., floor space needed, machine selection,

layout, and number of workers

• Product mix This is the number of different

prod-ucts to be manufactured The production system

has to be capable of producing various versions of

a product, or different products simultaneously in

the same plant in order to fulfill the market need

with the best exploitation of the resources

Prod-uct mix and prodProd-uct volume are closely related

(Manzini et al 2004)

• Frequency of changes This is the number of

engi-neering changes per time period The changes can

be either structural or upgrades to existing systems

It is not possible to foresee all the changes thatmight be introduced into a product in the future Forexample, the frequency of changes is a very criticalissue for the electronic control systems of packag-ing machines A packaging system can be used by

a generic customer for a few decades: the electronictechnologies change very quickly and the customercould need to replace failed parts with new, differ-ent spare parts

• Complexity There are several ways to measure

product, process, or system complexity A few amples are the number of parts, the number of pro-cess steps, and the number of subsystems Com-plexity deals with the level of difficulty to design,manufacture, assemble, move, etc a part, and it

ex-is affected by the available process capability (seeChap 2)

• Process capability, as the ability to make

some-thing repeatedly with minimal interventions Thisfactor deals with the quality of the process, prod-uct, and production systems, as properly illustrated

in Chap 2

• Type of organization and in particular the

innova-tion of the workforce participating in product, cess, and system improvements

pro-• Worker skill level, i e., the availability of high-level

employee skills This factor is strongly linked to thenecessary and/or available level of automation

• Investment, as the amount of financial resources

re-quired This is one of the most critical constraints

in the production system design, management, andcontrol

• Time to first part This is another very critical

con-straint and represents the time from the initial tem design to the full rate of production

sys-• Available/existing resources (financial,

technologi-cal, human, etc.)

Current markets have changed a great deal from those

of a few years ago Mass production (large quantities

of a limited range of products) has declined in severalproduction systems and been replaced by customer-oriented production Sales and quantities have essen-tially remained constant, but the related product mix

is growing ever larger Companies are attempting tospread risk over a wider range of base products and

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1.2 A Multiobjective Scenario 3

meet (or anticipate) customer needs and desires This

trend is intensified by global competition: different

players throughout the world are supplying “similar”

products to the same markets

This situation has produced significant changes in

production systems (which either produce products or

supply services): production batches are very small,

production lead times are kept very short, product life

cycle is also brief, and consequently product time to

market is very compressed

In conclusion, production systems must possess

two important features: flexibility and elasticity

Flex-ibility deals with the ability of the production

sys-tem to evolve continuously and manufacture wide

ranges of products On the other hand, elasticity

al-lows great variation in production volumes without

a significant change in the production system

configu-ration (i e., without needing time-consuming and

ex-pensive work) The literature also names these

con-cepts “capability flexibility” and “capacity

flexibil-ity.”

1.2.1 Product Variety

The great increase in product variety is easily verified

in several case studies It is sufficient to investigate

a single product in order to see how many different

versions are now offered in comparison with 10 years

ago

Some significant results from the research

con-ducted by Thonemann and Bradley (2002) on product

variety analysis are reported below

Table 1.1 shows the increase of product mix in

dif-ferent industrial sectors in the decade 1990–2000 The

smallest increase of a little over 50% occurred in

com-modities

Table 1.1 Product variety increase in various industrial sectors

Consequently, companies must not only producebut also supply products and services to very highquality standards, meaning stand-alone quality is nolonger a marginal success factor

In addition to these observations of “new markettrends,” industrial and service companies also needtheir industrial investments to be remunerated Thisfield is also significantly affected by global competi-tion: with prices falling, companies are forced to re-duce production costs Therefore, modern companiesmust expand their product mix, increase the quality ofthe product and the process, and reduce costs: a verystimulating challenge!

Moreover, companies are striving to improve the

productivity and quality of their production systems,

with the most relevant targets in this multiscenariodecision-making process including:

• a great degree of flexibility and elasticity in the duction system;

pro-• short lead times;

• high-quality products and production processes;

• short time to market;

• control of production costs

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1.3 Production System Design

Framework

This section presents a conceptual framework for

sup-porting the design of a production system with an

enterprise perspective It takes inspiration from the

study by Fernandes (2001) in the aerospace industry

and lean production The illustration of this

frame-work is very useful for identification of the operating

context of modern production systems and for

justi-fication of the introduction of an integrated quality-,

safety-, and reliability-based approach to support the

design, management, and control of a complex system

In particular, maintenance models and methods reveal

themselves as very effective tools to conduct this

pro-cess

Figure 1.1 presents the meta-framework which also

contain other tools, methods, and processes applicable

to the design process of production systems operating

in different industrial and service sectors, such as

System design

Corporate level

Physical implications

Corporate business strategy

Manufacturing

Product strategy

Trial & error

DFA, DFM, current engineering

con-Fig 1.1 Production system design framework DFA design for assembly, DFM manufacturing (Fernandes 2001)

motive, food, health care, pharmaceutical, education,and public administration

The proposed framework is made of three main anddistinct elements:

1 Infrastructure, as a result of the enterprise

strat-egy formulation which defines important and cal attributes of the system as operating policy, or-ganizational structure, location, and environment(see the top portion of Fig 1.1) This strategy isthe result of long-term objectives and programs,and is focused on creating operating capabilities.The corporate-level strategy balances the conflict-ing needs of the numerous stakeholders (e g., cus-tomers, employees, and owners) facing the overallenterprise the production system belongs to, by theformulation of a corporate strategy which is trans-ferred to the business units throughout the corpo-ration

criti-2 Structure (see the bottom portion Fig 1.1) It is

the physical manifestation of the detailed

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produc-1.4 Models, Methods, and Technologies for Industrial Management 5

tion system design and is the result of the factory

layout, number and configuration of machines, and

production methods and processes

3 Product strategy. congruence between the

corporate-level business strategy and the

func-tional strategies It involves funcfunc-tional elements

such as marketing, product design, supplier, and

manufacturing (see the concurrent engineering

overlapping of functions in Fig 1.1)

This meta-framework gives the concurrent

engineer-ing approach a great and strategic importance and

pro-vides enlightenment on the validation analysis, and the

continuous improvement (see the so-called

modifica-tion loop in Fig 1.1)

1.4 Models, Methods, and Technologies

for Industrial Management

Which resources are capable of supporting companies

in meeting the challenge introduced in the previous

section?

First of all, it is important to state that only

re-sources relating to products (or services) and to

pro-duction processes (i e., manufacturing and assembly

activities in industrial companies) are considered in

this chapter It is not the authors’ purpose to take into

account some other factors associated with

advertis-ing, marketadvertis-ing, or administrative areas

In brief, research supports productivity via three

fundamental and interrelated drivers: the product, the

process, and the production system

1.4.1 The Product and Its Main Features

Products are usually designed with reference to their

performance (i e., the ability to satisfy customer

needs) and to the aesthetic appearance required by

the market Requirements derived from the

produc-tion system are sometimes neglected, thus having

a negative effect on final production costs As a

conse-quence, during the last few decades several strategies

or techniques for product design, such as design for

manufacturing (DFM) and design for assembly (DFA),

which, respectively, consider manufacturing and

as-sembly requirements during the design process, have

been proposed in the literature and applied in modernproduction systems They provide a valid support tothe effective management of total production costs

In recent years, the matter of reuse and/or recycling

of products has become extremely pressing wide, and many countries are facing problems relating

world-to waste evaluation and disposal The significance ofthese topics is demonstrated by the wide diffusion ofproduct life cycle management, as the process of man-aging the entire life cycle of a product from its con-ception, through design and manufacture, to serviceand disposal Figure 1.2 presents a conceptual model

of the product life cycle, including the design, tion, support, and ultimate disposal activities Main-tenance of production facilities and recovery of prod-ucts explicitly play a strategic role in product life cyclemanagement

produc-As a consequence, a product design process thatalso considers product disassembly problems at theend of the product life cycle has become a success fac-tor in modern production systems This approach tothe design process is known as “design for disassem-bly” (DFD) In several supply chains (e g., tires andbatteries) the manufacturer is burdened with the reuse

or final disposal of the product, and DFD is a ularly effective tool for the reduction of productioncosts Section 1.2 discusses the advantages and dis-advantages associated with the production of a widevariety of products: wide ranges of product mix are

partic-an effective strategy in meeting customer expectations,but companies must reach this goal with the minimumnumber of components and parts

In particular, any part or function not directly ceived by the customer implies both an unnecessaryand a harmful addition of complexity because it is notremunerated Research and trials examining this spe-cial kind of complexity lead to the formulation of the

per-following production strategy: what is visible over the

skin of the product is based on a very high degree of

modularity under the skin.

The so-called product platforms are a good

solu-tion to support product variability, and so have beenadopted in modern production systems Several fam-ilies of similar products are developed on the sameplatform using identical basic production guidelinesfor all “derivative” products A well-known example

is the “spheroid platform” developed by Piaggio (theItalian manufacturer of the famous Vespa scooter): theproducts named Zip, Storm, Typhoon, Energy, Skip-

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Fig 1.2 Product life cycle

model

per, Quartz, and Free are all derived from the same

underlying fundamental design of the scooter called

“Sphere” (hence the spheroid platform) Another

sig-nificant example is the standardization of car speed

in-dicators in the automotive sector: the manufacturers

tend to use the same component in every product mix

regardless of the speed attainable by each individual

car model As a result of this strategy, the range of the

product mix is reduced and the management of parts

is simplified without affecting product performance

Every remark or comment about the techniques and

strategies cited is also effective both in production

sys-tems and in supply services such as hospitals, banks,

and consultants

1.4.2 Reduction of Unremunerated

Complexity: The Case

of Southwest Airlines

Southwest Airlines has developed several interesting

ideas for reducing complexity in the service sector

Figure 1.3 shows the cost per passenger for each miletraveled with the main US airlines

Two fundamental facts can be observed in Fig 1.3:since 2004 the cost per passenger for each miletraveled (extrapolated from available seat miles) forSouthwest Airlines has been lower than for its com-petitors, clearly competing in the same market andover the same routes Moreover, the available seatmile costs of Southwest Airlines have continued todecrease since 11 September 2001, in contrast tothose of its competitors Moreover, these costs havesignificantly increased owing to the increase in thecost of petroleum and owing to the introduction ofnew safety and security standards

How can this be explained? The answer lies in theefforts of Southwest Airlines, since 1996, to reduce thevariety and complexity of services offered to its cus-tomers but not directly perceived by them

A significant analysis of the fleet configurations ofmajor American airlines is reported in Table 1.3.The average number of different models of airplaneused by the major USA airlines is 14, but SouthwestAirlines employs only Boeing 737 airplanes In fact,

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1.4 Models, Methods, and Technologies for Industrial Management 7

Table 1.3 Number of different models of airplane used by USA airlines (June 2008)

 Boeing 737

Fig 1.3 Cost per passenger for each mile traveled ASM

avail-able seat miles (United States Securities and Exchange

Com-mission 2000)

in June 2008, Southwest Airlines owned 535 airplanes

of this particular type but using various internal

con-figurations, ranging from 122 to 137 seats

Variety based on the type of airplane is completely

irrelevant to customers Furthermore, when a

passen-ger buys a ticket, the airline companies do not

commu-nicate the model of airplane for that flight However,

reducing the number of different models of airplane in

the fleet directly results in a significant saving for the

airline company: only one simulator for pilot training

is required, only one training course for technicians

and maintenance staff, spare parts management and

control activities are optimized, “on ground”

equip-ment such as systems for towing and refueling are

standard, etc

In spite of critical safety problems and high fuel

costs, Southwest Airlines has been able to compete

very effectively Among a great many original proaches proposed during the last two decades for thereduction of complexity in a production system, thewell-known Variety Reduction Program (VRP) devel-oped by Koudate and Suzue (1990) is worthy of men-tion

ap-1.4.3 The Production Process and Its Main Features

Production processes in several industrial sectors haverecently been forced to undergo significant transfor-mations in order to ensure both cost reductions andhigh quality A good example from the wood sector isthe nonstop pressing process used to simplify the as-sembly process by using small flaps, gluing, and othertechniques instead of screw junctions

Every process innovation capable of consuming toomany production resources such as energy, manpower,and raw materials is a very useful motivating factor

driving research into productivity.

Consequently, when a new production investment

is being made in a manufacturing or service sector,

a benchmark investigation is required in order to checkthe state of the art of the production processes In ad-dition to this, from an economic or technical point ofview, scouting for alternative processes that could bemore effective is also recommended

1.4.4 The Choice of Production Plant

An effective production process is a basic condition

in making an entire production system effective ough analysis of the specific characteristics of produc-tion factors, e g., resources and equipment required bythe available processes, is one of the most importantaspects of research into productivity

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Thor-It is possible to have two different production plants

carrying out the same process with their own

specifica-tions and production lead times to get the same results,

but at different costs

A great deal of effort in innovation of the plant

equipment has taken place in recent years, but

in-novation in the production process is a very

diffi-cult problem to solve, often involving contributions

from various industrial disciplines (e g., electronics,

robotics, industrial instrumentation, mechanical

tech-nology) One of the most significant trends in

equip-ment innovation developequip-ments is represented by

flexi-ble automation, which provides the impetus for a

pro-duction system to achieve high levels of productivity

Presently, industrial equipment and resources are

highly automated However, flexible automation is

required so that a wide mix of different products

and services is achieved without long and expensive

setups One of the best expressions of this

con-cept, i e., the simultaneous need for automation and

flexibility, is the so-called flexible manufacturing

system (FMS) A flexible manufacturing system is

Fig 1.4 Different kinds of manufacturing systems (Black and Hunter 2003)

a melting pot where several automatic and flexiblemachines (e g., computer numerical control (CNC)lathes or milling machines) are grouped and linkedtogether using an automatic and flexible materialhandling system The system can operate all job se-quences, distinguish between different raw materials

by their codes, download the correct part programfrom the logic controller, and send each part tothe corresponding machine This basic example of

the integration of different parts shows how

suc-cessful productivity in a modern production systemcan be

The potential offered by flexible automation canonly be exploited effectively if every element of theintegrated system is capable of sharing informationquickly and easily

The information technology in flexible systemsprovides the connectivity between machines, tool stor-age systems, material feeding systems, and each part

of the integrated system in general

Figure 1.4 presents a brief classification, proposed

by Black and Hunter (2003), of the main

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manufac-1.4 Models, Methods, and Technologies for Industrial Management 9

turing systems in an industrial production context by

comparing different methodologies based on

produc-tion rates and flexibility, i e., the number of different

parts the generic system can handle

In conclusion, the required system integration

means developing data exchange and sharing of

infor-mation, and the development of production systems in

the future will be based on this critical challenge

The current advanced information technology

solu-tions (such as local area networks, the Internet,

wire-SELLING MARKET

• International competition

• Shorter product life cycle

• Increasing product diversity

• Decreasing product quantity

• Shorter delivery times

• Higher delivery reliability

• Higher quality requirements

LABOR MARKET

• Increasing labour costs

• Lack of well-motivated and

• New process strategies

• New joining methods

COMPANY OBJECTIVES

• High flexibility

• Constant and high product quality

• Short throughput times

• Low production costs

ACTIVITIES

COMPANY COMPANY POLICY

EXTERNAL DEVELOPMENTS

• Effective system design

• Effective system management

Fig 1.5 The new productivity paradigm for a production system DFM design for manufacturing, DFA design for assembly, DFD

design for disassembly (Rampersad 1995)

less connectivity, and radio-frequency identification(RFID)) represent a valid support in the effective in-tegration of production activities

Figure 1.5 is extracted from a previous study bythe authors and briefly summarizes the productivityparadigm discussed in this chapter This figure wasproposed for the first time by Rampersad (1995).Research into productivity also requires technical,human, and economic resources Consequently, before

a generic production initiative is embarked upon, it is

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essential to carry out a feasibility study and an

ap-praisal of the economic impact At the design stage

of a product or service, a multidecision approach is

often required before the production start-up is

ini-tiated Moreover, as it involves a broad spectrum of

enterprise roles and functions, an integrated

manage-ment approach is achieved because brilliant design

so-lutions can be compromised by bad management The

following section deals with the design, management,

and control of a production system in accordance with

a new productivity paradigm proposed by the authors

1.5 Design, Management, and Control

of Production Systems

A systematic and integrated approach to the

manage-ment and control of a production system is essential

for rational and effective use of the above-mentioned

resources and equipment In other words,

productiv-ity must be designed and managed correctly, otherwise

the enterprise will risk not being appropriately

remu-nerated for its investment

In both the manufacturing and the service sectors,

every new industrial initiative at its start-up needs

a complete design process taking the following

criti-cal aspects into consideration: market demand

analy-sis, design activity, validation of design, and

sequenc-ing and schedulsequenc-ing of project activities

Once the production system has been designed and

installed, modern management and optimization

tech-niques and tools need to be applied

Because of this complex scenario, the productivity

goal for a complex production system can be

effec-tively achieved by using the integrated and systematic

approach shown in Fig 1.6 (Manzini et al 2006a)

This approach summarizes the complete design

pro-cedure for a generic production system according to

the current state of the art supporting decision-making

techniques and methods

1.5.1 Demand Analysis

The starting point of the proposed method is the

prod-uct (or service) market analysis, based on up-to-date

statistical forecasting methods (e g., time series,

ex-ponential smoothing, moving average) for the

extrap-olation of the future demand from the current one

The logical sequence of events is therefore the designphase, and only after its approval is it possible to move

on to process design, and lastly the production plantcan be designed Once system optimization has beencarried out, the product can be launched on the market

1.5.2 Product Design

The product design phase involves the very importantstrategies and methodologies of DFM, DFA, and DFDwhich support management decision making in manu-facturing and service companies These two strategiestake manufacturing and assembly problems, respec-tively, into consideration during the product design ac-tivity The results bring about a drastic reduction in thenumber of redesign cases, a significant improvement

in production system performance, and a noteworthycompression of product time to market Another sup-porting decision-making technique is the previouslymentioned VRP, which focuses on reduction of com-plexity

All these supporting design strategies are mented by using several computerized system solu-tions: the well-known design automation tools, par-ticularly computer-aided design and computer-aidedmanufacturing

imple-The design of a new product (or service) is ally based on an interactive loop that verifies and mod-ifies the project by the execution of several fine-tuningiterations

gener-1.5.3 Process and System Design

The product specification forms the input data used

in the production process design, which is thereforestrictly dependent on the product or service to be sup-

plied A benchmarking analysis is fundamental to

ef-fective process design because it analyses the state ofthe art in process technologies

The detailed definition of the production processimmediately outlines the system structure (i e., plant,production resources, and equipment), thus choosingthe right number and type of machines, tools, opera-tors, etc., and defining the corresponding facility lay-out design The plant layout problem can be solved

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1.5 Design, Management, and Control of Production Systems 11

using a dedicated software platform (Ferrari et al

2003; Gamberi et al 2009)

1.5.4 Role of Maintenance in the Design

of a Production System

The maintenance function is a strategic resource during

the preliminary design process of a production system

The analysis and forecasting of the reliability

perfor-mance of a piece of equipment significantly improve the

effectiveness of the design of the whole production

sys-tem It is very important to foresee future maintenance

operations and costs both in the resources/facilities and

in the plant layout design so as to avoid lengthy

down-times due to, e g., the incorrect location of machines, or

to a bad assignment and scheduling of manufacturing

tasks to resources and workload

The role of maintenance has been increasing in

im-portance, thus leading to a new conceptual framework:

the so-called design for maintenance directly

embod-ies maintenance principles in the design process

1.5.5 Material Handling Device Design

In order to complete the illustration of the design

pro-cess of a production system, the material handling

de-vice design has to be considered Several

decision-making models and methods have been developed to

support this critical issue (Gamberi et al 2009), in

par-ticular in logistics and in operations research, e g.,

ve-hicle routing algorithms and traveling scheduling

pro-cedures

1.5.6 System Validation

and Profit Evaluation

Each design activity, for product, process, material

handling device, etc., is very complex As a whole they

form a set of interlaced tasks whose global solution is

not the sum of individual optimizations An integrated

approach generates a set of suitable solutions to be

in-vestigated in depth from an economic and technical

point of view In conclusion, the final design must be

fully validated As the production system does not

ex-ist during the design process, and it is often almost

impossible to experiment on a reliable prototype, formance analysis and system validation are usuallyconducted by using simulation (e g., visual interactivesimulation, Monte Carlo simulation, what-if analysis)

per-This ex ante evaluation checks the formal

con-gruity of the whole design process, supporting the nal choice of system configuration and the fine-tuning

fi-of the solution adopted The technical analysis fi-of theconfiguration examined is not a guarantee of a rapidreturn on the industrial investment: the economic eval-uation, in terms of total amount of money over time, isthe most important deciding factor

For an investment analysis methods such as thewell-known net present value, payback analysis, anddiscounted cash flow rate of return are very frequentlyused The best solution results from this double-check,both technical and economic, and forms the foundationfor the following phase related to execution of the ac-tivities, i e., project planning and activity scheduling

1.5.7 Project Planning and Scheduling

The effective planning and control of each task in

a generic project is crucial in avoiding any delay Torespect the project deadline means to save money, es-pecially when several activities must be performed si-multaneously or according to several precedence con-straints

A great many project scheduling models andmethods are presented in the literature, such as thewell-known program evaluation and review technique(PERT), the critical path method (CPM), and Ganttanalysis

Figure 1.6 presents a nonexhaustive list of ing techniques and tools for the execution of the designtasks previously illustrated in general Most of themhave already been mentioned and briefly described orare discussed in the following sections

support-1.5.8 New Versus Existing Production Systems

Some previous considerations concern research intoproductivity from the design process of a new pro-duction system But what are the requirements for

a production system that has already been set up and

is working?

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Obviously the challenge of productivity also

in-volves existing production systems The techniques

previously discussed are illustrated in Fig 1.6 and also

represent a useful benchmark in the process of

ratio-nalization and optimization of existing production

sys-tems

PRODUCT VARIANTS ANALYSIS

NEW PRODUCTS

PRODUCTION QUANTITIES-VARIANCE ANALYSIS

DEMAND &

FORECASTS

PRODUCT DESIGN

PROCESS DESIGN

MHD DESIGN

DEMAND ANALYSIS

PRODUCT-PROCESS-MHD INTEGRATED DESIGN

PROJECT PLANNING &

SCHEDULING

PROJECT EXECUTION

TECHNIQUES AND TOOLS

DATA MINING & DATA WAREHOUSING HISTORICAL & TREND ANALYSIS MARKET INVESTIGATION

DESIGN FOR MANUFACTURING - DFM DESIGN FOR ASSEMBLY - DFA DESIGN FOR DISASSEMBLY - DFD MODULARITY AND STANDARDIZATION VARIETY REDUCTION PROGRAM - VRP DESIGN AUTOMATION TOOL (CAD/CAE, CAPP ) RESOURCES DETERMINATION

LAYOUT DESIGN MATERIAL HANDLING DEVICE DESIGN VEHICLE ROUTING OPTIMIZATION RELIABILITY & MAINTAINABILITY ANALYSIS

VISUAL INTERACTIVE SIMULATION - VIS MONTE CARLO SIMULATION

WHAT-IF ANALYSIS

NET PRESENT VALUE - NPV ECONOMIC VALUE ADDED - EVA DISCOUNTED CASH FLOW RATE OF RETURN PAY BACK ANALYSIS

DECISION TREE ANALYSIS MONTE CARLO SIMULATION PROJECT SCHEDULING ALGORITHMS PROGRAM EVALUATION & REVIEW TECHNIQUE - PERT SCHEDULING

CRITICAL PATH METHOD - CPM GANTT ANALYSIS

ALTERNATIVE SOLUTIONS

PRODUCT DEFINITION MANUFACTURING PROCESS DEFINITION

MANUFACTURING SYSTEM DEFINITION PLANT LAYOUT DEFINITION MATERIAL HANDLING SYSTEM DEFINITION

SYSTEM VALIDATION

SYSTEM SELECTION

PROFIT ANALYSIS

Fig 1.6 Production system: a complete design framework MHD material handling device (Manzini et al 2006a)

An existing production system must follow a tinuous improvement process based on the multitar-get scenario, as described in Sect 1.2 First of all,the company must analyze the structure of the prod-uct mix in the production system, seeking to ratio-nalize it, e g., by applying some effective supporting

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con-1.6 Production System Management Processes for Productivity 13

decision-making techniques such as DFM, DFA, and

VRP

Modern companies must put continuous

monitor-ing and evaluation of the degree of innovation of their

processes into operation Consequently, process

inno-vation is an important key factor in company success

In recent years, flexible automation has become a valid

reference point in process innovation

Any production plant needs some revision during

its life cycle, including partial or total substitution of

resources, upgrades, and plant layout reengineering

Consequently, planning and execution of prior

deci-sions are also important for a company already

on-the-job In conclusion, the general framework in Fig 1.6

is also valid for existing production systems

The most important question remains how to

choose the most convenient strategy and effective

supporting decision methods from the very large

collection of solutions available in the literature The

generic case study has its specific peculiarities making

it different from all the others That is why, at a first

Distribution management Production planning

Inventory and purchasing management

Production system management

Location allocation problem

Transporation

Vehicle routing

Aggregate programming

Material requirement planning

Manufacturing resource planning

Fig 1.7 Production system management activities

glance, it is not easy to detect a suitable tool from thewide set of models and methods that can be used tosupport management decision making

1.6 Production System Management Processes for Productivity

This book discusses a set of effective managementprocedures, models, methods, and techniques, directlyaffecting the productivity performance of a productionsystem Even though they mainly deal with main-tenance, safety, and quality assessments, we nowillustrate a conceptual framework which classifiesthe most important management activities into threemacro classes: materials and inventory management,production planning, and product/service distributionmanagement (Fig 1.7) All these activities have to

be managed and optimized by whoever in a businessunit, in a production system, or in an enterprise isconcerned with research for productivity

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This book can effectively support the managers,

an-alysts, and practitioners in a generic production system

in making the best decisions regarding products,

pro-cesses, and production plants, in accordance with

cus-tomer’s expectations of quality and minimizing

pro-duction costs with particular attention to the repro-duction

of the production system downtimes and to the

reli-ability/availability of products, processes, and

equip-ment The focus of this work is coherent with the

defi-nition of maintenance as “the combination of all

tech-nical, administrative and managerial actions during the

life cycle of an item intended to retain it in, or restore

it to, a state in which it can perform the required

func-tion” (European standard EN 13306:2001 –

Mainte-nance terminology), and with the definition of quality

management as the system which assists in

enhanc-ing customer satisfaction (European standard EN ISO

9000:2006 Quality management systems –

Fundamen-tals and vocabulary)

Consequently, the main keywords of this book are

as follows: productivity, quality and safety by

reliabil-ity engineering, maintenance, qualreliabil-ity, and safety

as-sessment

1.6.1 Inventory and Purchasing

Management

A generic production system needs a fulfillment

sys-tem for the continuous supply of raw materials and

therefore has to cope with material management In

modern companies the traditional economic order

quantity (EOQ) and safety stock methods are

com-bined with a great many effective techniques based

on pull logics, such as just-in-time strategy Other

eligible methodologies, such as consignment stock,

electronic data interchange, comakership, business to

business, and e-marketplaces, provide for very close

cooperation between customers (service clients) and

manufacturers (service providers)

1.6.2 Production Planning

Production planning is a second management

macro-area with significant impact on productivity The aim

of a preliminary definition of production planning is

to provide a fundamental prerequisite for resource

re-quirement planning These programs are scheduled

with reference to different time fences, or planning riods, with an increasing degree of detail: from a wideand outermost time fence, related to aggregate pro-gramming, to a narrow and very close time fence, re-lated to detailed programming

pe-After the aggregated programming phase, rial and resource requirements need to be quantified.Techniques such as the well-known material require-

mate-ment planning and manufacturing resource planning

are usually suitable for this purpose, but the literaturealso contains several models and methods for so-called

advanced planning: advanced planning systems (APS).

Lastly, the final step requires the direct “load” of

machines and assignment of workload This is

short-term scheduling The goal is to define the priorities of

different jobs on different items of equipment and chines

ma-1.6.3 Distribution Management

The third important management problem relates tothe final distribution of products and services Themain problems are the following: the planning of ship-ments, generally issued as distribution resource plan-

ning; the location–allocation problem along the

dis-tributive network, i e., the simultaneous location ofequipment and logistic resources such as distributioncenters and warehousing systems; the allocation ofcustomer demand to the available set of resources; theoptimal selection of transportation systems; the vehi-cle routing; and, finally, the execution of distributionactivities

1.7 Research into Productivity and Maintenance Systems

The frameworks for the design and management of

a production system, illustrated in Figs 1.1, 1.5,and 1.6, underline how important the contributions

of reliability, availability, and quality of resources(equipment, employees, and production plants) are tothe production of products or services In particular,

there is a very strong positive link between

mainte-nance and productivity For example, the availability

of a production plant is an absolute necessity for thescheduling of work orders, and spare parts forecasting

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1.7 Research into Productivity and Maintenance Systems 15

is a fundamental part of the planning and design

processes (see Chap 11)

A very important factor in purchasing is the

qual-ity control of raw materials, and the new design

tech-niques, such as DFM and DFA, must guarantee quality

levels set as targets

Modern companies must consider maintenance

strategies, rules, procedures, and actions to be some of

the most important issues and factors in their success

In other words, the effective design and

manage-ment of a production system requires the effective

design and management of the correlated maintenance

process and system

A maintenance system requires strategic planning,

dedicated budgets, relevant investments in terms of

money and human resources, equipment, and spare

parts too In particular, the availability and

commit-ment of personnel at all levels of an organization

also includes the application of the maintenance

pro-cess

An effective maintenance system provides

support-ing decision-maksupport-ing techniques, models, and

method-ologies, and enables maintenance personnel to apply

them in order to set the global production costs at

a minimum and to ensure high levels of customer

ser-vice To achieve this purpose in a production system,

those elements such as the ability, skill, and

knowl-edge required by the whole organization and in

partic-ular by product designers, production managers, and

people who directly operate in the production plants,

are crucial

In conclusion, as illustrated in Fig 1.8,

mainte-nance techniques, including also quality and safety

as-sessment tools and procedures, represent very

effec-tive instruments for research into productivity, safety,

and quality as modern companies are now forced to

pursue them relentlessly This issue will be

demon-strated and supported in detail in the following

chap-ters

The following chapters are organized as follows:

• Chapter 2 introduces quality assessment and

presents statistical quality control models and

methods and Six Sigma theory and applications

A brief illustration and discussion of European

standards and specifications for quality assessment

is also presented

• Chapter 3 deals with safety assessment and risk

as-sessment with particular attention being given to

quality assessment

risk analysis and risk reduction procedures Someexemplifying standards and specifications are illus-trated

• Chapter 4 introduces maintenance and maintenancemanagement in production systems An illustration

of total productive maintenance production ophy is also presented

philos-• Chapter 5 introduces the main reliability and tenance terminology and nomenclature It presentsand applies basic statistics and reliability modelsfor the evaluation of failure (and repair) activities

main-in repairable (and nonrepairable) elementary ponents

com-• Chapter 6 illustrates some effective statistics-basedmodels and methods for the evaluation and predic-tion of reliability This chapter also discusses the el-ementary reliability configurations of a productionsystem, the so-called reliability block diagrams

• Chapter 7 discusses the maintenance informationsystems and their strategic role in maintenance

management A discussion on computer

mainte-nance management software (CMMS) is also

pre-sented Finally, failure rate prediction models areillustrated and applied

• Chapter 8 presents and applies models for theanalysis and evaluation of failure mode, effects,and criticality in modern production systems Thenmodels, methods, and tools (failure modes and ef-fects analysis and failure mode, effects, and criti-

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cality analysis, fault tree analysis, Markov chains,

Monte Carlo dynamic simulation) for the

evalua-tion of reliability in complex producevalua-tion systems

are illustrated and applied to numerical examples

and case studies

• Chapter 9 presents several models and methods to

plan and conduct maintenance actions in

accor-dance with corrective, preventive, and inspection

strategies and rules Several numerical examplesand applications are illustrated

• Chapter 10 illustrates advanced models and ods for maintenance management

meth-• Chapter 11 discusses spare parts management andfulfillment models and tools

• Chapter 12 presents and discusses significant casestudies on reliability and maintenance engineering

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Quality Management Systems

Contents

2.3.1 Quality Audit, Conformity, and Certification 19

2.3.2 Environmental Standards 21

2.4.1 The Central Limit Theorem 23

2.4.2 Terms and Definition in Statistical Quality

2.7.6 Numerical Example, s-Chart and N x-Chart 33

2.9.1 Numerical Example, Capability Analysis

and Normal Probability 42

2.9.2 Numerical Examples, Capability Analysis

and Nonnormal Probability 46

2.10.1 Numerical Examples 51 2.10.2 Six Sigma in the Service Sector Thermal Water Treatments for Health and Fitness 51

Organizations depend on their customers and fore should understand current and future customerneeds, should meet customer requirements and strive

there-to exceed custhere-tomer expectations Identifying, derstanding and managing interrelated processes as

un-a system contributes to the orgun-anizun-ation’s ness and efficiency in achieving its objectives (ENISO 9000:2006 Quality management systems – fun-damentals and vocabulary)

effective-Nowadays, user and consumer assume their ownchoices regarding very important competitive factorssuch as quality of product, production process, andproduction system Users and consumers start makingtheir choices when they feel they are able to value andcompare firms with high quality standards by them-selves

This chapter introduces the reader to the main lems concerning management and control of a qual-ity system and also the main supporting decision mea-sures and tools for so-called statistical quality control(SQC) and Six Sigma

prob-2.1 Introduction to Quality Management Systems

The standard EN ISO 8402:1995, replaced by ENISO 9000:2005, defines “quality” as “the totality ofcharacteristics of an entity that bear on its ability tosatisfy stated and implied needs,” and “product” as

© Springer 2010

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“the result of activities or processes and can be

tan-gible or intantan-gible, or a combination thereof.”

Conse-quently, these definitions refer to production systems

both in industrial sectors, such as insurance, banking,

and transport, and service sectors, in accordance with

the conceptual framework introduced in Chap 1

An-other synthetic definition of quality is the “degree to

which a set of inherent characteristics fulfills

require-ments” (ISO 9000:2005)

A requirement is an expectation; it is generally

re-lated to the organization, customers, or other

inter-ested, or involved, parties We choose to name all

these entities, i e., the stakeholders of the

organiza-tion, as customers and, consequently, the basic

key-word in quality management is customer satisfaction.

Another basic term is capability as the ability of the

organization, system, or process to realize a product

fulfilling the requirements

A quality management system is a particular

man-agement system driving the organization with regard

to quality In other words, it assists companies and

or-ganizations in enhancing customer satisfaction This

is the result of products capable of satisfying the

ever-changing customer needs and expectations that

conse-quently require the continuous improvement of

prod-ucts, processes, and production systems

Quality management is a responsibility at all levels

of management and involves all members of an

organi-Fig 2.1 Process-based

qual-ity management system

Interested parties

Management responsability

Resource management realization

Mesaurement analysis &

zation For this reason, in the 1980s total quality

man-agement (TQM) as a business manman-agement strategy

aimed at embedding awareness of quality in all nizational processes found very great success Accord-ing to the International Organization for Standardiza-tion (ISO) standards (ISO 9000:2006), the basic stepsfor developing and implementing a quality manage-ment system are:

orga-• determination of needs and expectations of tomers and other involved parties;

cus-• definition of the organization’s quality policy andquality objectives;

• determination of processes and responsibilities forquality assessment;

• identification and choice of production resourcesnecessary to attain the quality objectives;

• determination and application of methods to sure the effectiveness and efficiency of each processwithin the production system;

mea-• prevention of nonconformities and deletion of therelated causes;

• definition and application of a process for uous improvement of the quality management sys-tem

contin-Figure 2.1 presents the model of a process-based ity management system, as proposed by the ISO stan-dards

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qual-2.3 ISO Standards for Quality Management and Assessment 19

2.2 International Standards

and Specifications

According to European Directive 98/34/EC of 22 June

1998, a “standard” is a technical specification for

re-peated or continuous application approved, without

a compulsory compliance, by one of the following

rec-ognized standardization bodies:

• ISO;

• European standard (EN);

• national standard (e g., in Italy UNI)

Standards are therefore documents defining the

char-acteristics (dimensional, performance, environmental,

safety, organizational, etc.) of a product, process, or

service, in accordance with the state of the art, and

they are the result of input received from thousands of

experts working in the European Union and elsewhere

in the world Standards have the following distinctive

characteristics:

• Consensuality: They must be approved with the

consensus of the participants in the works of

prepa-ration and confirmed by the result of a public

en-quiry

• Democracy: All the interested economic/social

par-ties can participate in the works and, above all,

have the opportunity to make observations during

the procedure prior to final and public approval

• Transparency: UNI specifies the basic milestones

of the approval procedure for a draft standard,

plac-ing the draft documents at the disposal of the

inter-ested parties for consultation

• Voluntary nature: Standards are a source of

refer-ence that the interested parties agree to apply freely

on a noncompulsory basis

In particular CEN, the European Committee for

Stan-dardization founded in 1961 by the national standards

bodies in the European Economic Community and

EFTA countries, is contributing to the objectives of the

European Union and European Economic Area with

voluntary technical standards promoting free trade,

safety of workers and consumers, interoperability of

networks, environmental protection, exploitation of

re-search and development programs, and public

procure-ment

CEN works closely with the European

Commit-tee for Electrotechnical Standardization (CENELEC),

the European Telecommunications Standards Institute

(ETSI), and the ISO CEN is a multisectorial zation serving several sectors in different ways, as il-lustrated in the next sections and chapters dealing withsafety assessment

organi-2.3 ISO Standards for Quality Management and Assessment

The main issues developed by the technical committeefor the area of quality are:

1 CEN/CLC/TC 1 – criteria for conformity ment bodies;

assess-2 CEN/SS F20 – quality assurance

Table 2.1 reports the list of standards belonging to thefirst technical committee since 2008

Similarly, Table 2.2 reports the list of standards longing to the technical committee CEN/SS F20 since

be-2008, while Table 2.3 shows the list of standards rently under development

cur-Quality issues are discussed in several standardsthat belong to other technical groups For example,there is a list of standards of the aerospace series deal-ing with quality, as reported in Table 2.4 Table 2.5presents a list of standards for quality managementsystems in health care services Similarly, there areother sets of standards for specific sectors, businesses,

qual-to a standard or a set of standards, e g., ISO 9001 orISO 14001 The audit process is the basis for the dec-laration of conformity

The audit process is conducted by an auditor, or anaudit team, i e., a person or a team, with competence

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Table 2.1 CEN/CLC/TC 1 criteria for conformity assessment bodies, standards published since 2008

EN 45011:1998 General requirements for bodies operating product certification systems (ISO/IEC Guide

65:1996)

EN 45503:1996 Attestation Standard for the assessment of contract award procedures of entities

operating in the water, energy, transport and telecommunications sectors

EN ISO/IEC 17000:2004 Conformity assessment – Vocabulary and general principles (ISO/IEC 17000:2004)

EN ISO/IEC 17011:2004 Conformity assessment – General requirements for accreditation bodies accrediting

conformity assessment bodies (ISO/IEC 17011:2004)

EN ISO/IEC 17020:2004 General criteria for the operation of various types of bodies performing inspection

(ISO/IEC 17020:1998)

EN ISO/IEC 17021:2006 Conformity assessment – Requirements for bodies providing audit and certification of

management systems (ISO/IEC 17021:2006)

EN ISO/IEC 17024:2003 Conformity assessment – General requirements for bodies operating certification of

EN ISO/IEC 17040:2005 Conformity assessment – General requirements for peer assessment of conformity

assessment bodies and accreditation bodies (ISO/IEC 17040:2005)

EN ISO/IEC 17050-1:2004 Conformity assessment – Supplier’s declaration of conformity – Part 1: General

EN 45020:2006 Standardization and related activities – General vocabulary (ISO/IEC Guide 2:2004)

EN ISO 10012:2003 Measurement management systems – Requirements for measurement processes and

measuring equipment (ISO 10012:2003)

EN ISO 15378:2007 Primary packaging materials for medicinal products – Particular requirements for the

application of ISO 9001:2000, with reference to good manufacturing practice (GMP) (ISO 15378:2006)

EN ISO 19011:2002 Guidelines for quality and/or environmental management systems auditing

(ISO 19011:2002)

EN ISO 9000:2005 Quality management systems – Fundamentals and vocabulary (ISO 9000:2005)

EN ISO 9001:2000 Quality management systems – Requirements (ISO 9001:2000)

EN ISO 9004:2000 Quality management systems – Guidelines for performance improvements

prEN ISO 19011 rev Guidelines for auditing management systems

prEN ISO 9004 Managing for the sustained success of an organization – A quality management

approach (ISO/DIS 9004:2008)

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2.3 ISO Standards for Quality Management and Assessment 21

Table 2.4 Aerospace series, quality standards

EN 9102:2006 Aerospace series – Quality systems – First article inspection

EN 9103:2005 Aerospace series – Quality management systems – Variation management of key

EN 9104:2006 Aerospace series – Quality management systems –Requirements for Aerospace Quality

Management System Certification/Registrations Programs

EN 9111:2005 Aerospace series – Quality management systems – Assessment applicable to

maintenance organizations (based on ISO 9001:2000)

EN 9121:2005 Aerospace series – Quality management systems – Assessment applicable to stockist

distributors (based on ISO 9001:2000)

EN 9132:2006 Aerospace series – Quality management systems – Data Matrix Quality Requirements

for Parts Marking

EN 4179:2005 Aerospace series – Qualification and approval of personnel for nondestructive testing

EN 4617:2006 Aerospace series – Recommended practices for standardizing company standards

EN 9101:2008 Aerospace series – Quality management systems – Assessment (based on

ISO 9001:2000)

EN 9104-002:2008 Aerospace series – Quality management systems – Part 002: Requirements for Oversight

of Aerospace Quality Management System Certification/Registrations Programs

Table 2.5 CEN/TC 362, health care services, quality management systems

CEN/TR 15592:200 Health services – Quality management systems – Guide for the use of

EN ISO 9004:2000 in health services for performance improvement CEN/TS 15224:2005 Health services – Quality management systems – Guide for the use of

EN ISO 9001:2000

to conduct an audit, in accordance with an audit

pro-gram consisting of a set of one or more audits planned

for a specific time frame Audit findings are used to

as-sess the effectiveness of the quality management

sys-tem and to identify opportunities for improvement

Guidance on auditing is provided by ISO 19011:2002

(Guidelines for quality and/or environmental

manage-ment systems auditing)

The main advantages arising from certification are:

• improvement of the company image;

• increase of productivity and company profit;

• rise of contractual power;

• quality guarantee of the product for the client

In the process of auditing and certification, the

docu-mentation plays a very important role, enabling

com-munication of intent and consistency of action Several

types of documents are generated in quality

manage-ment systems

2.3.2 Environmental Standards

Every standard, even if related to product, service,

or process, has an environmental impact For a uct this can vary according to the different stages ofthe product life cycle, such as production, distribu-tion, use, and end-of-life To this purpose, CEN hasrecently been playing a major role in reducing envi-ronmental impacts by influencing the choices that aremade in connection with the design of products andprocesses CEN has in place an organizational struc-ture to respond to the challenges posed by the devel-opments within the various sectors, as well as by theevolution of the legislation within the European Com-munity The main bodies within CEN are:

prod-1 The Strategic Advisory Body on the Environment(SABE) – an advisory body for the CEN TechnicalBoard on issues related to environment Stakehold-ers identify environmental issues of importance

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to the standardization system and suggest

corre-sponding solutions

2 The CEN Environmental Helpdesk provides

sup-port and services to CEN Technical Bodies on how

to address environmental aspects in standards

3 Sectors – some sectors established a dedicated

body to address environmental matters associated

with their specific needs, such as the

Construc-tion Sector Network Project for the Environment

(CSNPE)

4 Associates – two CEN associate members provide

a particular focus on the environment within

stan-dardization:

• European Environmental Citizens Organization

for Standardization (ECOS);

• European Association for the Coordination of

Consumer Representation in Standardization

(ANEC)

Table 2.6 Technical committees on the environment

CEN/TC 351 Construction Products – Assessment of release of dangerous substances

Table 2.7 Committee CEN/SS S26 – environmental management

EN ISO 14021:2001 Environmental labels and declarations – Self-declared environmental claims (Type II

environmental labelling) (ISO 14021:1999)

EN ISO 14020:2001 Environmental labels and declarations – General principles (ISO 14020:2000)

EN ISO 14040:2006 Environmental management – Life cycle assessment – Principles and framework

(ISO 14040:2006)

EN ISO 14044:2006 Environmental management – Life cycle assessment – Requirements and guidelines

(ISO 14044:2006) prEN ISO 14005 Environmental management systems – Guidelines for a staged implementation of an

environmental management system, including the use of environmental performance evaluation

Table 2.6 reports the list of technical committees onthe environment

There are several standards on environmental agement To exemplify this, Table 2.7 reports the list

man-of standards grouped in accordance with the tee CEN/SS S26 – environmental management.ISO 14000 is a family of standards supporting theorganizations on the containment of the polluting ef-fects on air, water, or land derived by their operations,

commit-in compliance with applicable laws and regulations Inparticular, ISO 14001 is the international specificationfor an environmental management system (EMS) Itspecifies requirements for establishing an environmen-tal policy, determining environmental aspects and im-pacts of products/activities/services, planning environ-mental objectives and measurable targets, implemen-tation and operation of programs to meet objectivesand targets, checking and corrective action, and man-agement review

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2.4 Introduction to Statistical Methods for Quality Control 23

Fig 2.2 Central limit theorem, examples

2.4 Introduction to Statistical Methods

for Quality Control

The aim of the remainder of this chapter is the

intro-duction and exemplification of effective models and

methods for statistical quality control These tools are

very diffuse and can be used to guarantee also the

reliability,1 productivity and safety of a generic

pro-duction system in accordance with the purpose of this

book, as illustrated in Chap 1

2.4.1 The Central Limit Theorem

This section briefly summarizes the basic result

ob-tained by this famous theorem Given a population or

process, a random variable x, with mean  and

stan-dard deviation  , let Nx be the mean of a random

sam-ple made of n elements x1; x2; : : : ; xnextracted from

this population: when the sample size n is sufficiently

large, the sampling distribution of the random

vari-1 Reliability, properly defined in Chap 5, can be also defined as

“quality in use.”

able Nx can be approximated by a normal distribution

The larger the value of n, the better the approximation.This theorem holds irrespective of the shape of thepopulation, i e., of the density function of the vari-able x

The analytic translation of the theorem is given bythe following equations:

each value of size n

Figure 2.3 quantitatively demonstrates the centrallimit theorem starting from a set of random valuesdistributed in accordance with a uniform distribution

Œ0; 10: the variable Nx is a normally distributed

vari-able when the number of items used for the calculus

of mean Nxi is sufficiently large In detail, in Fig 2.3the size n is assumed be 2, 5, and 20

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9.0 7.5 6.0 4.5 3.0 1.5

0.20 0.15 0.10 0.05 0.00

8 7 6 5 4 3 2

0.8 0.6 0.4 0.2 0.0

DATA (n=1)

Mean (n=2)

Histogram of DATA (n=1) and means (n>1)

2.4.2 Terms and Definition in Statistical

Quality Control

Quality control is a part of quality management

(ISO 9000:2005) focused on the fulfillment of quality

requirements It is a systematic process to monitor and

improve the quality of a product, e g., a manufactured

article, or service by achieving the quality of the

production process and the production plant A list of

basic terms and definitions in accordance with the ISO

standards follows:

• Process, set of interrelated activities turning input

into output It is a sequence of steps that results in

an outcome

• Product, result of a process.

• Defect, not fulfillment of a requirement related to

an intended or specified use

• Measurement process, set of operations to

deter-mine the value of a quantity

• Key characteristic, a quality characteristic the

prod-uct or service should have to fulfill customer

re-quirements and expectations

• Value of a key characteristic For several products

a single value is the desired quality level for a

char-acteristic

• Nominal or target value It is the expected value

for the key characteristic It is almost impossible to

make each unit of product or service identical to the

next; consequently it is nonsense to ask for cal items having a key characteristic value exactlyequal to the target value This need for flexibility

identi-is supported by the introduction of limits and ances

toler-• Specification limit, or tolerance, conformance

boundary, range, specified for a characteristic

The lower specification limit (LSL) is the lower conformance boundary, the upper specification

limit (USL) is the upper conformance

• One-sided tolerance It relates to characteristics

with only one specification limit

• Two-sided tolerance It refers to characteristics with

both USLs and LSLs

• Nonconformity It is a nonfulfillment of a

require-ment It is generally associated with a unit: a conformity unit, i e., a unit that does not meet thespecifications

non-• Nonconforming product or service A product or

service with one or more nonconformities A conforming product is not necessary defective, i e.,

non-no longer fit for use

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