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This study was undertaken with the objective to evaluate cost effectiveness of maintenance
operations of agricultural machinery at Fincha Sugar Factory (FSF) through determination of
lagging key performance indicators. The study was executed mainly based on secondary data
records of FSF plus assessment of existing maintenance management practices through
questionnaire survey. The study revealed escalation of maintenance operation costs without
yielding similar work output was a major problem of the Sugar Factory. It also exhibited absence
of a system or technique to evaluate cost effectiveness of maintenance works. The study resolute
annual mean & study period mean ratios of result measuring lagging Key Performance Indicators
(KPIs) such as Total Maintenance Cost/Total Output (TMC/TO), Total Maintenance Cost/Total
Production Cost (TMC/TPC), Total Maintenance Cost/Total Revenue (TMC/TR), and
Maintenance Labor Cost/Total Maintenance Cost (MLC/TMC) of 13 production years at FSF.
Accordingly, the values of TMC/TO ration found to be 78.24, TMC/TPC become 25% while the
result of TMC/TR and MLC/TMC was 21% and 31% whereas, the industry standard of some
similar processing, chemical and manufacturing industries is 15–40 for TMC/TO, 10–15% for
TMC/TPC, 6–8% and 20–25% in case of TMC/TR and MLC/TMC respectively. The broad
indicators determined in case of FSF found above the limit of standard; which should have been
equal or lower; and this indicated maintenance work of FSF was not cost effective. The study also
revealed Fincha Sugar Factory was not practicing Maintenance Performance Measurement (MPM)
to evaluate cost effectiveness of agricultural machineries maintenance operation to know the scale
of its expenditures. Thus, it becomes important to deploy newly developed interlocked strategic
framework of maintenance which has a provision to carry out periodical MPM in the maintenance
management process of the Factory. It enable the Factory to control overall maintenance cost and
in turn contributes to improve cane production and supply work profitability. The study can serve
as a starting point to do research in the future using more production year data under other factories
so that determine standard KPIs of agricultural machinery maintenance operations.
Keywords: maintenance framework, maintenance cost, cane cost, cost effectiveness, performance
indicator, industry standards. |
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