Logistics Term Paper Example | Topics and Well Written Essays - 750 words

Logistics - Term Paper Example Therefore, it should be always preserved in efficient working condition, failing which there will be unnecessary wastage of time and it may entail stoppage production when there may be high demand for products Thus, in sense equipment is vital in the profitability of a business. Low or poor working conditions of equipment can also can cause the quality related issues, so it is highly significant to provide a proper and a periodic maintenance to operating equipments. The cost is also an important constraint to be considered in the maintenance of the same. An incorporated approach is taken to analyse the cost involved in the maintainance, the proper action should be taken to utilise the cost economically. In the competitive world of business each company tries its level best to be number one in the industry and the business is much concerned in meeting the current trends in the market. In order to be successful and competent maintenance planning is essential. Planning is the stage wher e a company decides which equipment is to be maintained and which obsolete ones are to be discarded. Maintenance falls into two categories: preventive maintenance and breakdown maintenance. Preventive maintenance is the assessment and examination process at regular intervals and breakdown maintenance is the mending and thinking done when the equipment is not in working condition. The maintenance planning primarily concerns two aspects relating to equipment such temporary breakdown or its becoming obsolete. Proper planning of equipment maintenance has a significant role in the output of a production or a service unit as a primary resource for such organizations is the equipment. Thus, any compromise done in this regards will impede the basic functioning of the organization, entailing hefty losses. Life Cycle Cost: Life-Cycle Cost (LCC) is an effective method to measure an economic assessment of equipment. The cost being utilized for the equipments are to be channelled economically. L CC takes into account the total savings, IRR and the payback period etc while considering the maintenance and repair of equipment. LCC can also be perceived as an efficient tool for making a choice within a competing environment, useful in comparison of the costs of competiting projects, decreasing the total cost, taking appropriate decisions, excellent planning and budgetary decisions. â€Å"LCC analysis is required to demonstrate that operational savings are sufficient to justify the investment costs.LCC helps change provincial perspectives for business issues with emphasis on enhancing economic competitiveness by working for the lowest long term cost of ownership which is not an easy answer to obtain† (Barringer, 2003, p.2). Reliability: Reliability refers to the quality of measurement and in a daily routine, reliability is the "constancy" of various measures. The organisation should be reliable in Besides, only such reliable organization every aspects of its operation to achieve profitability can service in a competitive market place. â€Å"Three important statements summarize for the organizations success are: 1) Reliability must be designed into products and processes using the best available science-based methods. 2) Knowing how to