Abstract
Cement factories are highly energy and cost intensive industries. Producing the cement requires a lot of energy to transform the raw material into final product. One major area to improve the production productivity is preventive maintenance (PM). It helps to protect assets, increase the useful life of equipment, improve system reliability, decrease cost of replacement and finally improve system energy consumption. In this paper, the theory of microeconomics firm was used to find a model of optimal production productivity in cement industry. To show the effect of preventive maintenance system in the model, energy consumption of equipment is considered as a function of failure rate of equipment and then added to the set of constraints. Using this model energy consumption is reduced up to 15% and total annual cost is reduced up to 12.7%.
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