Maintenance impact on Production Profitability  - A Case Study

Sammanfattning: Maintenance has had a tremendous impact on company’s proficiency to optimize its production system in order to meet its long term objectives. Generally, a production system in which maintenance is not given attention may easily lead to the system producing defective product as a result of machine defect. The purpose of this thesis is to utilized tools and methods to analyze the impact of maintenance implementation in a production system. The analytical Hierarchy process was utilized to filter the defining factors and sub-factors considered to be related to the life length and performance of production equipment in the research which was carried out at SCA Packaging Sweden AB. Various cost associated with these factors were analyzed using the cost breakdown structure, an element of life cycle cost analysis. Finally, economic evaluation of the filtered factors was performed to show the benefits associated with implementing maintenance. The result shows that while investment on maintenance implementation might be a cost at the earlier stage of implementation because it is hard to measure and follow up its impact on company’s business. Nevertheless, its role in improving company productivity profitability is indispensable. Thus, maintenance is a profit centre rather than a cost centre.