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Risks of Contractual Fines for Failures in the Industrial Production Process and the Relation with the Importance of the Qualification of the Work in the Maintenance

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Proceedings on 25th International Joint Conference on Industrial Engineering and Operations Management – IJCIEOM (IJCIEOM 2019)

Abstract

Industrial failures are associated with poor maintenance planning, directly affecting organizational productivity. When equipment failures occur, established contracts allow fines to be imposed on organizations, sometimes due to delivery delays or product failures due to poor quality. The aim of this paper was to perform a literature review on the elements that cause risks of contractual fines due to equipment unavailability. To perform this work, a literature review was made based on published scientific articles on topics of predictive maintenance, preventive maintenance and corrective maintenance, production planning and control (PPC), financial risks for contractual fines and availability of machinery in industrial processes, as well as maintenance workforce qualification. Maintenance and operation, as the most important administrative and operational functions of production, are responsible for meeting the following requirements: quality, speed, reliability, flexibility and cost. As a result, it was found in the literature that a well-trained and motivated maintenance team performs higher quality short-term tasks, reducing machine repair times, and reducing the number of fines for failure to meet contractual deadlines. These results were corroborated by verification in four supply chain companies in the agricultural and construction machinery sector.

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Acknowledgements

Pontifícia Universidade Católica do Paraná (PUCPR), Instituto Federal do Paraná (IFPR) and Universidade Tecnológica Federal do Paraná (UTFPR).

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Correspondence to Alexandre Milkiewicz Sanches .

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Sanches, A.M., de Souza, L.J., da Costa, S.E.G., de Lima, E.P. (2020). Risks of Contractual Fines for Failures in the Industrial Production Process and the Relation with the Importance of the Qualification of the Work in the Maintenance. In: Anisic, Z., Lalic, B., Gracanin, D. (eds) Proceedings on 25th International Joint Conference on Industrial Engineering and Operations Management – IJCIEOM. IJCIEOM 2019. Lecture Notes on Multidisciplinary Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-030-43616-2_17

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  • DOI: https://doi.org/10.1007/978-3-030-43616-2_17

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