Productivity and Quality in Smart Manufacturing Systems

Cost-Integrated Lean Maintenance to Reduce Maintenance Cost

Karningsih, P .D., W. Puspitasari., and M. L. Singgih

Extended Abstract

The company has always prioritized cost reduction. In this study, the researchers aimed to decrease maintenance costs by actively eliminating expensive non-value-added processes. The study employed Process and Time Driven Activity Based Costing to integrate cost with the activities performed. By conducting maintenance value stream mapping, the researchers identified various forms of waste, such as centralized maintenance, ineffective data management, poor inventory management, inadequate maintenance, under-utilization of resources, and waiting time for maintenance resources. Several alternative improvement options were proposed, and the Pugh method was used to compare and select the most promising alternatives or combinations of alternatives. The third alternative, which involves conducting internal training and implementing standard operating procedures for maintenance technicians, supervisors, and machine operators, as well as integrating an IT system for maintenance and creating an equipment and spare parts inventory database, was chosen as the highest-ranking option. The results showed that this approach reduced processing time for administrative activities, lowered corrective maintenance costs, and improved maintenance efficiency for both preventive and corrective maintenance.

Keywords: Lean Maintenance, waste, process and time driven activity based costing, PUGH.


Smooth production processes ensure the successful manufacturing of quality products, timely completion, and cost efficiency. Industrial machinery is essential for a successful manufacturing industry. Regular maintenance is necessary for smooth operation. So, maintenance strategies have been proposed to extend equipment life and improve reliability. Unplanned downtime can hamper deliveries to customers and damage the company’s reputation.


This study uses maintenance value stream mapping, process and time driven activity based costing, and Pugh’s method. Each method has its output in assessing the efficiency of the observed maintenance activities. The following are the research stages explained using the flowchart shown in Figure 1.


Undoubtedly, the cost is a significant consideration for the company when deciding. The research pinpointed the underlying causes of waste, mainly lack of funds. Lean maintenance methods speed up the maintenance process and offer timely and accurate suggestions. This approach allows the company to consider ways to improve that are both cost and time-efficient.


The efficiency of the ongoing maintenance process is an important thing to note because it is undeniable that the longer the maintenance runs, the longer the production downtime will be, and can cause losses. Lean maintenance is the right tool to use so that all the waste that occurs in the maintenance process can be minimized. This research focuses on efficient processes regardless of the maintenance strategy drawn up by the Company to maintain the reliability of its machines. Based on the results of the waste found, several proposed improvement alternatives have been prepared and the PUGH method is used to compare between alternatives or a combination of alternatives, and the highest score is selected for the combination of the three alternatives, namely carrying out Internal Training and standard maintenance standards for maintenance technicians, Supervisors, and Machine Operators, manufacturing maintenance integrated IT systems and creation of equipment and spare parts inventory databases. The results obtained are reduced processing time on administrative activities, reduce corrective maintenance costs, and increased maintenance efficiency both preventive maintenance and corrective maintenance.


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