Maintenance Policy and Repair


Plant and machinery in the initial days always perform to their fullest capacity but as time goes with regular wear and tear, this becomes increasingly difficult. If proper and regular maintenance is undertaken than production capacity can be maintained at a more or less same level.

Maintenance also requires replacement decisions. Replacement is a substitution of existing fixed asset with a new asset, which may enhance features capable of performing similar function. The need for replacement may arise because of normal use, obsolescence, early service failure, destruction, etc.


Maintenance is defined as a process in which working condition of plant or machinery is maintained at the optimum level as to give maximum output. Maintenance is done through repair, partial replacement and total replacement. Following is the significance of the maintenance policy:

  • Maintenance policy ensures that equipments are always in ready and reliable condition. This ensures company is able respond to any sudden change in demand.

  • Maintenance policy ensures that equipments are always calibrated to provide good-quality products and competitive advantage. This ensures that there are no sudden and frequent breakdowns and reduce production of defective products.

  • Maintenance policy ensures that there are no major breakdowns. This ensures there is no lose of inventory or market share for companies following JIT philosophy.

  • Maintenance policy ensures that costs are always controlled.

  • Maintenance policy is particularly important in capital-intensive industries.

If organizations are not able to implement an effective maintenance policy than it can result in the following results:

  • Full capacity utilization may not be achieved.
  • Increase in production cost as fixed labor cost cannot be reduced.
  • Increase in maintenance cost as more spare parts are required.
  • Reduction in product quality and increase in wastage.
  • Safety of workers and operators in jeopardy.

Maintenance Management

Maintenance management is process where available resources are regulated in a manner that plant and machinery can perform at specific levels. Maintenance management involves planning, scheduling and execution of maintenance-related activities. The main objectives of the maintenance management are as follows:

  • Minimum level of production loss and minimum incidence of breakdown.
  • Minimum level of wastage.
  • Optimum usage of maintenance equipment and personnel.
  • Quality of product is improved.

Planning and Scheduling

The maintenance department is responsible with planning and scheduling of maintenance in line with the requirement and expectation of the organization. Planning and scheduling needs to ensure that business as usual is not disturbed.

The following are key points to plan maintenance:

  • Identify the equipment for maintenance and technique for maintenance.
  • Categorize maintenance into routine, priority and emergency.
  • Plan maintenance considering cost, time, space etc
  • Material planning for maintenance requirements.
  • Budget time and money requirements.

The need to schedule maintenance can be best described as follows:

  • To optimize usage of plant, machinery and tools.
  • To optimize usage of manpower in maintenance.
  • To ensure smooth production flow.

From above it can safely be concluded that it is very critical for company to have a robust and effective maintenance and repair policy.

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The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to and the content page url.