Maintenance Management in Italian Manufacturing Systems
Maintenance Management in Italian Manufacturing Systems
Maintenance Management in Italian Manufacturing Systems
www.emeraldinsight.com/1355-2511.htm
Abstract
Purpose – This paper aims to give a picture of maintenance management in Italian manufacturing
firms supported by empirical evidence. The purpose is also to highlight how far maintenance
performance and strategies are influenced by context and which measures and goals are within reach
of small-sized firms.
Design/methodology/approach – Frameworks for describing maintenance management and
strategies derived from literature were reviewed and used to develop a questionnaire. A survey-based
empirical research involving a sample of 100 manufacturing firms was performed. Non-parametric
statistics are applied to highlight correlations and dependencies between contextual variables,
maintenance strategies and performance.
Findings – Maintenance performance hardly seems a matter of size, while many elements of strategy
certainly are. Some elements of strategy, in particular planning and control elements, seem to have
little impact on performance. By contrast, an enhanced use of preventive maintenance and, above all,
of condition-based maintenance is demonstrated to be a highly effective action for maintenance
improvement applicable to firms of all size.
Practical implications – The research may help managers to decide on maintenance strategic
variables by deducing from the experience of many different firms whether, and how, strategies affect
maintenance performance.
Originality/value – Besides giving a country’s portrait, the empirical research addresses the links
between strategies, context and performance, thereby understanding strategy in a broad sense and not
just in terms of maintenance policies and concepts. In particular, the maintenance practices of small
enterprises with fewer than 50 employees are studied, which has rarely been done in the literature.
Keywords Maintenance, Surveys, Italy
Paper type Research paper
1. Introduction
Although the tertiary sector is gaining growing importance in Italy as in most
western countries, the manufacturing sector remains a driving force in Italian
economy. The most recent national census (ISTAT, 2001) recorded more than 585,000
Journal of Quality in Maintenance manufacturing firms, employing about 5 million people, which is nearly 22 per cent of
Engineering
Vol. 16 No. 2, 2010
pp. 156-180 Cooperation by the Industrial Union of Pordenone and of Udine is gratefully acknowledged. The
q Emerald Group Publishing Limited
1355-2511
authors also wish to thank Mr Rudy Lunardelli and Mr Marco Bettiol for collaboration in data
DOI 10.1108/13552511011048904 collection, as well as all organizations, which took part in this survey.
the country’s labour force. Census data show that most firms belong to the metal Matters of size
working and machine manufacturing sectors (39 per cent), followed by typical “made and strategy
in Italy” sectors (textile and clothing, shoes and leader, wood and furniture
manufacturing industries, which involve 24 per cent of total firms). A distinctive
feature of the Italian manufacturing sector is the small average size of firms: about 94
per cent of manufacturing firms have less than 20 employees, 4 per cent of firms have
between 20 and 50 employees and just the remaining 2 per cent of total firms have 157
more than 50 employees and provide work for about 25 per cent of the labour force in
the manufacturing sector.
Given the important physical assets required by manufacturing industries and the
significant proportion of maintenance spending on total manufacturing costs reported
in literature (Tsang, 2002), industrial maintenance is likely to play an important role in
Italian economy, in terms of employees, value added and contribution to
competitiveness under the increasing international pressure. However, little is
known about the state of maintenance management in Italian organizations. To the
best of the authors’ knowledge, no official statistics exist, while some information can
be derived from a few empirical studies reported in national and to some extent in
international literature. A survey on maintenance management in small and medium
firms (Cattaneo, 2000) was carried out by AIMAN, the Italian Maintenance Society, in
the year 2000. In total, 174 organizations, having up to 200 employees, were involved,
mainly belonging to the mechanical and metal working sectors and to the chemical and
pharmaceutical sectors. The survey highlighted that an actual maintenance function
exists in about 20 per cent of the micro-firms (with less than 15 employees), in about 50
per cent of small firms (having between 16 and 50 employees) and in about 85 per cent
of medium sized firms. The survey was focused on maintenance costs, revealing that
they are around 2 per cent of turnover, with no significant difference depending on firm
size or sector, and on maintenance policies: it was found that a fire-fighting attitude
still prevails in many firms, with reactive maintenance accounting for about 40 per cent
of total maintenance activities, as reported also by Ferrari et al. (2002). Another survey
at a more local scale, involving 62 medium firms, was performed in 2002 by a regional
section of the AISL, the Italian Society for Work Studies (Ghirardo, 2004) and
confirmed similar shares of reactive maintenance and the same attitude towards
maintenance: for instance, it was found that only 20 per cent of the examined
organizations calculated and took into account inefficiency costs (costs of loss of asset
availability), caused, e.g. by stops due to reactive or delayed maintenance.
Nevertheless, the pursuit of excellence and a successful implementation of best
practices (e.g. TPM as defined by Nakajima (1988) in Italy is testified by single case
studies (Ferrari et al., 2002) or collections of case studies (Cigolini and Turco, 1997)
presented in international literature. Still, most surveyed cases concern either large
industries or some smaller manufacturing plants, which however belong to large trusts
or multinational groups.
Considering the structure of Italian manufacturing sector outlined previously,
where small sized firms prevail, it would be interesting to obtain a wider image of
maintenance management conditions in manufacturing firms. In particular, a
reasonable question is whether excellence is strictly limited to large sized firms, which
are a small part of the national production context. More generally, and beyond the
limits of a country’s portrait, it is useful to investigate how far maintenance
JQME performance and practices depend on firms’ size and to what extent they are rather
16,2 linked to strategic choices made by organizations. Therefore, we developed the
research presented in this paper with the objective of providing possible answers to the
highlighted questions on the basis of empirical evidence. With this aim, we structured
a questionnaire moving from frameworks and international surveys designed to
analyze maintenance status at regional or national level. Section 2 presents the
158 research methodology, including the background literature for our survey. The results
are discussed in section 3, while conclusions and implications for future research are
derived in section 4.
2. Research methodology
We began our research by reviewing literature about maintenance performance
measurement frameworks, as they are a tool to assess industrial achievements in
maintenance management, and about sector or countrywide surveys on maintenance
management. We found that general maintenance performance measurement
frameworks, which are designed to evaluate single firms and mostly rely on
quantitative indicators, have inherent limitations for sector wide surveys: in fact, it is
difficult for researchers to obtain uniform and reliable measures because of diverse –
and often lacking – recording and measurement procedures used in different firms (see
Pintelon and Van Puyvelde (1997) and Swanson (2003). Therefore, we decided to focus
on qualitative indicators and to start from frameworks and methodologies used in
country or sector wide maintenance surveys.
Several studies of this kind have been reported in literature in the last few years.
They could be grouped in two classes according to their objectives, that is surveys
aimed at giving descriptions and general pictures of maintenance management and
surveys aimed at inferring relationships between maintenance practices and other
business elements and outcomes. When the main objective is description, broad
frameworks and questionnaires encompassing numerous aspects of maintenance
management are proposed in order to give a most comprehensive picture of
maintenance in a specific region, e.g. Ikwan and Burney (1994), Jonsson (1997), Tse
(2002), Cholashuke et al. (2004) – or industrial context, e.g. Dowlatshahi (2008). For
instance, Jonsson (1997) introduces a framework of maintenance management
consisting of five components, i.e. goal and strategy, human aspects, support
mechanisms, tools and techniques and organization. A wider framework is proposed
by Cholashuke et al. (2004), who identify eight elements of maintenance management,
i.e. organization, maintenance approach, task planning, information management,
spare part management, human resource management, financial aspects and
continuous improvement. The widest and most recent theoretical framework for
describing maintenance state appears to be the one proposed by Pintelon et al. (2006),
which is grounded on an extended maintenance strategy concept including four
structural – i.e. long-term – and six infrastructural – i.e. operational – decision
elements. The structural decision elements are:
.
maintenance capacity;
. maintenance facilities;
.
maintenance technology; and
.
vertical integration,
while infrastructural decision elements include: Matters of size
.
maintenance organization; and strategy
.
policies and maintenance concepts;
.
planning and control;
.
human resources;
.
maintenance modifications; and 159
.
performance measurement and reward.
The same authors (Pinjala et al., 2006) used their framework as a basis for a survey on a
sample of Belgian manufacturing companies with more than 100 employees, with the
aim of inferring relationships between general business strategies and maintenance
strategies.
Actually, when the main research goal is to infer relationships, i.e. in the second
group of papers we found, just few maintenance variables are usually considered,
whose links with other variables are investigated. Interdependencies explored in
literature include, in particular:
.
the link between maintenance practices and production features of firms
(Swanson, 1997) or between maintenance strategies and general business
strategies adopted by firms (Pinjala et al., 2006) and the correlation between the
pursuit of best practices in maintenance management and in other areas of
operations management (e.g. Mitchell et al., 2002), particularly between the
introduction of TPM and the application of other best practices such as TQM and
JIT. In other words, authors try to find out which kind of firms adopt particular
maintenance practices or strategies; and
.
the correlation between maintenance concepts or polices and maintenance
performance i.e. which advantages are obtained by firms adopting various
maintenance approaches (McKone et al., 2001; Swanson, 2001).
Considering the objectives and scope of our study, i.e. to give a general picture but also
to understand which kinds of firms adopt best practices and achieve good
performances, we decided to start from the framework by Pintelon et al. (2006) for
structuring our survey, as it is the most recent and complete for its comprehensive
view of maintenance strategies and allows both a general view and the analysis of
correlations and relationships between maintenance strategic variables. Our effort was
to formulate questions suitable for a survey target group largely consisting of small
firms, and to cover most structural and infrastructural elements forming the adopted
framework. In particular, bearing in mind our target group, as to maintenance
performances we decided to ask for qualitative judgements about obtained results and
managers’ satisfaction, because the previously mentioned difficulties of successfully
asking for quantitative measures or maintenance PIs may be exacerbated in small firm
contexts.
With this in mind, we elaborated the questionnaire presented in Table I. As the
survey was the result of cooperation with local industrial unions, the questionnaire
structure and answer options were first tested through discussions with consultants in
safety and maintenance as well as through pilot questionnaires administered to
volunteer respondents.
16,2
160
Table I.
JQME
Questionnaire structure
and descriptive statistics
Variable
Question area Question type Answer options Descriptive statistics
General features of the Activity sector of the Percentage of firms per class
firm organization
Categorical a. Mechanical and metal working a. 36 per cent
b. Wood working b. 23 per cent
c. Process industry (plastic, rubber, paper, c. 27 per cent
glass, ceramics, construction materials,
food industry)
d. Other (clothing, shoes, accessories and d. 14 per cent
decorations)
Number of employees Ordinal Percentage of firms per class
1. Small (up to 49 employees) 1. 31 per cent
2. Medium (50 to 249 employees) 2. 40 per cent
3. Large ($ 250 employees) 3. 29 per cent
Company’s yearly turnover Ordinal Percentage of firms per class
1. Small (less than 10 million e) 1. 32 per cent
2. Medium (from 10 to 50 million e) 2. 41 per cent
3. Large (more than 50 million e) 3. 27 per cent
Operations time Interval Number of shifts per day (1, 2 or 3 shifts) Mean SD
a. Working shifts per day Operations days per week (5, 6 or 7) Shifts: 1.77 0.98
b. Operations days per week Operations days 5.38 0.72
Structural Maintenance capacity: Ordinal 1. Less than 2 Percentage of firms per class
maintenance strategy number of internal
decisions maintenance operators
2. 3 to 5 1. 41 per cent
3. 6 to 15 2. 28 per cent
4. More than 15 3. 19 per cent
4. 12 per cent
Maintenance facilities: Ordinal 1. Less than 10,000e Percentage of firms per class
Value of maintenance spare 2. 11-50,000e 1. 31 per cent
parts inventory
3. 51-500,000e 2. 29 per cent
4. . 500,000e 3. 23 per cent
4. 17 per cent
(continued)
Variable
Question area Question type Answer options Descriptive statistics
161
Table I.
16,2
162
Table I.
JQME
Variable
Question area Question type Answer options Descriptive statistics
163
Table I.
16,2
164
Table I.
JQME
Variable
Question area Question type Answer options Descriptive statistics
Spearman’s correlations
variables and
between contextual
performance variables
Matters of size
Table III.
169
JQME against x safety ¼3 in the process industry and x safety ¼2.71 in other activities, with
16,2 p , 0:05). This outcome may be related to sector specific culture in metalworking and
machine manufacturing, which could be the object of future investigations.
On the contrary, the hypothesis of better performance in plants with longer operation
time is partially supported, as can be deduced from the correlation analysis presented in
Table III. Firms having a higher number of working shifts assign higher scores to the
170 contribution of maintenance to cost reduction (r ¼ 0:21, significant at p , 0:05) and a
weaker positive correlation (r ¼ 0:19, significant at p , 0:10) can also be found between
number of working shifts and product quality performance, while no effect can be
observed on availability and safety scores. The effect of the number of working days is,
conversely, not relevant and, as a result, even the correlation between weekly operation
time and cost and quality performance scores is significant only at p , 0; 10.
Finally, as can be observed in Table III, performance scores are generally unrelated
to size. In the only case where a weakly significant correlation (p , 0; 10) can be
detected, that is between yearly turnover and contribution to availability improvement,
the correlation coefficient is negative, i.e. the smaller the firm, the better the perceived
performance. This single result is of limited significance and would not lead us to
formulate contradictory hypotheses, i.e. that smaller mean better, nevertheless we can
argue that our original hypothesis of better performance in larger plants is far from
being supported by empirical data.
172
JQME
Table IV.
performance
elements and
decisions, contextual
Links between structural
Organization size Manufacturing sector Operation time
Correlation Correlation Correlation
or or or Maintenance performance
dependence Statistical dependence Statistical dependence Statistical Statistical
Structural decisions is verified? test used is verified? test used is verified? test used Availability Costs Quality Safety test used
performance
infrastructural decisions,
contextual elements and
Links between
Table V.
Matters of size
173
16,2
174
JQME
Table V.
Organization size Manufacturing sector Operation time
Correlation Correlation Correlation
or or or Maintenance performance
dependence Statistical dependence Statistical dependence Statistical Statistical
Infrastructural decisions is verified? test used is verified? test used is verified? test used Availability Costs Quality Safety test used
Such firms could be more easily large ones, because they could reap economies of scale
and above all possess larger capitals to invest in AMT: given the results of this survey,
this is however not necessarily true and should be the subject of further studies. In
particular, since Pinjala et al. (2006) highlighted that quality competitors make a more
extensive use of AMT and of good maintenance practices, it would be interesting to
investigate differences in business strategies across organization size classes, to
disclose, for instance, whether larger firms have more quality oriented strategies.
From a practical viewpoint, we could observe that maintenance visions and
strategies influence maintenance results significantly, but the most effective and direct
determinants of maintenance performance seem to be those “matters of strategy”
directly linked with maintenance policies and with TPM concepts. In particular, a
practical implication for maintenance managers we could derive from this study is the
confirmation that CBM substantially contributes to improve performance: with
predictive maintenance technologies becoming more widespread and cheaper, this
practice can be easily applied even by small firms, leading them to optimize their
maintenance results.
Finally, the analysis of our empirical data from the examined area confirms the
general indication that the proportion of preventive maintenance, including CBM, should
be extended: however, this could be done effectively only if opportune maintenance
engineering instruments are adopted to assure that preventive maintenance programs
harmonize well with production schedules and with the actual state of manufacturing
equipment. This can be achieved through a more extensive and above all more conscious
use of CMMSs by adequately trained human resources: maintenance personnel could
thus be empowered, waste of resources could be avoided and a synergic positive effect
could add up to the extension of proactive maintenance practices.
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