Table Of ContentBusiness Management / Facilities Management H
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Considering that the biggest machines that do the most work are made up o
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of smaller machines and components, it becomes obvious that when a large
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machine breaks, it is normally due to small components acting antagonistically.
Detailing a time-tested method for increasing productivity and lowering
operational costs, Spend Analysis and Specification Development Using S
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Failure Interpretation explains how to establish performance-based
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procurement specifications for the components, devices, and items that n
contribute the most to operational downtime and repair/replacement costs. d
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The book emphasizes the critical need to perform both spend and failure
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analysis in order to develop a procurement document, which will ultimately
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reduce overall costs. Complete with numerous examples, illustrations, and l
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case studies, the text discusses how to:
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• Examine cost analysis as it relates to operations, maintenance,
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and production n
• Develop performance-based procurement specifications to reduce d
direct and indirect costs
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• Determine effective criteria based on properties, test results, p
and standards for each operation e
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• Identify which products will cost the most if they fail
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Written by an industry expert with decades of experience giving seminars,
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training customers and associates, and authoring numerous papers and t
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articles, the text provides the real-world understanding of the influential o
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components and materials’ physical properties needed to engage in effective
failure and spend analysis. It addresses product submission and monitoring D
and includes helpful tools so you can immediately get started on conducting
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your own cost-saving analysis. v
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K12333
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ISBN: 978-1-4398-5107-4 n
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www.crcpress.com
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K12333 cvr mech.indd 1 1/6/11 10:12 AM
Spend Analysis
and Specification
Development
Using Failure
Interpretation
Spend Analysis
and Specification
Development
Using Failure
Interpretation
Michael D. Holloway
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2011 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Version Date: 20110726
International Standard Book Number-13: 978-1-4398-5108-1 (eBook - PDF)
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For my mother and father—the two finest people there will ever be.
Contents
Foreword.........................................................................................................xi
Acknowledgments........................................................................................xvii
The.Author....................................................................................................xix
1 Buy.Bye....................................................................................................1
2 Buying.to.Save—Cost.and.Value.............................................................5
Concerning Warranties ..............................................................................11
Defining Operation and Time Costs .........................................................15
Some Recent Maintenance, Repair, and Operations (MRO)
Recall Items ........................................................................................22
On the Road to a Profit Return on a Purchase ...........................................23
Costs and Value .........................................................................................26
Manufacturing Costs .................................................................................27
Material Costs ...........................................................................................28
Labor Costs ...............................................................................................29
Manufacturing Overhead ..........................................................................29
Additional Costs ........................................................................................30
Cost Behavior Patterns ...............................................................................30
Examples of “Wasted” Cost Overruns—The $600 Toilet Seat ...................32
Cost of Failure ...........................................................................................35
Case Studies—An Effective Way toward Change .....................................42
Other Costs Defined .................................................................................44
Determining the Return on Investment (ROI) of a Purchase ....................45
Applying the ROI Formula ...............................................................48
Summary ...................................................................................................48
Tools for the Specification Development Process .......................................49
3 Source.of.Failure...................................................................................51
Assessing the Situation ...............................................................................51
Failure Defined ..........................................................................................54
vii
viii ◾ Contents
Taking Advantage of Failure ......................................................................56
Sources of Failure: Man, Materials, Methods, Machines ...........................57
Manmade Failures—Failure of Employees ................................................58
Manmade Failures—Failure of Managers ..................................................60
Method Failures—Failure of Business .......................................................62
Failure of Materials, Failure of Machines ...................................................65
Types of Forces .................................................................................67
Strength ............................................................................................68
Defining Stress and Strain .......................................................69
Creep (Deformation) .................................................................................71
Fatigue (Material) ......................................................................................74
Rate of Fatigue .................................................................................74
Fracture .....................................................................................................75
Brittle Fracture .................................................................................75
Ductile Fracture ...............................................................................76
Wear ..........................................................................................................78
Temperature ..............................................................................................80
Thermal Shock Failure ......................................................................82
Oxidation—Molecular Transitions and Chemical Influences ....................83
Corrosion ..........................................................................................83
Corrosion in Nonmetals .........................................................84
Galvanic Corrosion .................................................................85
Deposit Formation .....................................................................................85
Factors That Affect Deposit Formation .............................................89
Concentration and Pressure .....................................................89
Particle Size and Contaminant Type ......................................90
Summary ...................................................................................................96
Tools for the Specification Development Process .......................................96
Failure Mode Work Sheet Key ...................................................................99
4 Using.the.Information.Gathered.........................................................101
Fact Finding and Documentation ............................................................103
Physical Properties and Standards ............................................................108
Obtaining Standards from the American National Standards
Institute (ANSI) .............................................................................110
Adhesives and Sealants.............................................................................117
Paints and Coatings .................................................................................122
Coating Failures .............................................................................127
Gaskets, Seals, and Belts ..........................................................................130
Chains .....................................................................................................137
Wire Rope ...............................................................................................140
Contents ◾ ix
Pipe ..........................................................................................................142
Failure of the Fitting .......................................................................142
Joint Failure ....................................................................................143
Hose ........................................................................................................148
Valves .......................................................................................................150
Fasteners—Screws, Bolts, Nails, Staples ..................................................153
Bearings ...................................................................................................158
Grease ......................................................................................................160
Gears .......................................................................................................162
Gear Oil ..................................................................................................164
Electrical Wire .........................................................................................166
Lighting ...................................................................................................170
Light-Emitting Diode (LED) Failure Modes ..................................171
Electric Motors ........................................................................................172
Summary .................................................................................................187
Tools for the Specification Development Process .....................................187
Case Study Work Sheet ...................................................................188
5 Finalizing.the.Purchasing.Specification.and.Selecting.Vendors.........189
Writing the Purchasing Specification .......................................................189
Specification Further Defined .........................................................198
Product Application Requirements .................................................198
Figures and Tables ..........................................................................199
Group Terms ..................................................................................199
General Operational Requirements ...............................................200
Functional Requirements ...............................................................200
Performance Requirements ............................................................200
Design Requirements ......................................................................201
Terms and Conditions ....................................................................201
Price per Units, Payments, Incentives, and Penalties ..............211
Contractual Terms and Conditions .......................................211
Requirements of the Reply .....................................................211
Evaluation Process .................................................................211
Contact Points .......................................................................211
Evaluation .............................................................................212
Specification Example ..............................................................................212
The Leon–Maxwell Performance Equation ..............................................217
Application Examples ..............................................................................219
Excessive Load Example .........................................................................222
Excessive or Localized Heat .....................................................................225
Contamination ........................................................................................227
