Chapter 1 General Provisions Article 1 These regulations are formulated in order to implement the State Council’s Regulations on the Management of Equipment in State-owned Industrial and Transportation Enterprises, to strengthen equipment management, and in light of the conditions in the machinery industry. Article 2: Equipment constitutes the material and technical foundation for building socialism. Management departments at all levels in the machinery industry, as well as enterprises, must adhere to the principles of combining design, manufacturing, and use/maintenance; giving priority to prevention; integrating use, maintenance, and planned repairs; combining repair, renovation, and upgrading; merging technical management with economic management; and combining professional management with mass participation, in order to carry out effective equipment management. Article 3: The basic task of equipment management in the machinery industry is to implement the relevant guidelines, policies, laws, and regulations, and to carry out comprehensive management of a company’s main production equipment through technical, economic, and organizational measures. It is necessary to carry out comprehensive planning, make rational purchases, install equipment promptly, use it correctly, maintain it carefully, conduct scientific inspections, ensure safe production, carry out timely renovations and upgrades, and continuously improve the quality of a company’s technical equipment. This helps to support the development of the machinery industry, technological progress, and the enhancement of economic efficiency. Article 4: Leaders at all levels in the machinery industry must attach importance to equipment management, actively adopt advanced management methods and new scientific and technological achievements, and continuously improve the level of enterprise equipment management and maintenance techniques to meet the needs of national economic development. Article 5: The management of equipment in the machinery industry is carried out on a hierarchical basis. Equipment management departments at all levels in the machinery industry are responsible for providing professional guidance and conducting supervision and inspection of enterprise equipment management. Article 6: The equipment in state-owned enterprises belongs to **. It is the important responsibility of leaders at all levels in the machinery industry to take good care of this equipment, use it properly, maintain it well, and upgrade it, so as to prevent any loss to **’s property and to keep the equipment in good technical condition at all times, thereby meeting the needs of the enterprise’s production and development. Within the responsibilities and accountability of the plant manager (director), it is essential to clearly designate the maintenance of equipment in good condition and the improvement of the quality of the enterprise’s equipment as important aspects of target management, as well as one of the key indicators for evaluating the performance of the enterprise’s contracted operations. Article 7 The scope of equipment management in the machinery industry refers to the management of production equipment that constitutes a company’s fixed assets. The equipment used for corporate production is uniformly managed by the Equipment and Power Department. Its job scope includes comprehensive management of the entire process, from equipment planning and selection, procurement, installation, commissioning, operation, maintenance, renovation, upgrading to disposal. Chapter 2: Responsibilities of Various Levels of Organizations Article 8: The main responsibilities of the machinery industry management departments in provinces, autonomous regions, municipalities directly under the Central Government, and cities designated as having separate planning status in equipment management work are as follows: (1) To implement the relevant guidelines, policies, and regulations regarding equipment management, and to formulate local rules and systems for equipment management ; (II) Responsible for the organizational leadership, supervision, inspection, and coordination of equipment management in the local machinery industry ; (III) Collaborate with the local economic development commission to organize regional specialized cooperation in maintenance work, and promote the socialization of maintenance services as well as the commercialization of spare parts ; (IV) Organize experience exchanges on equipment management in the local area and within the industry, as well as professional training for employees, and provide information and consulting services for enterprises’ equipment management ; (5) Responsible for preparing statistical reports required by higher authorities. Article 9: The main responsibilities of the plant director (manager) in equipment management are as follows: (1) To bear overall responsibility for the management of all production equipment in the plant. During the tenure, responsible for implementing the guidelines, policies, regulations, and relevant provisions set by ** and higher authorities regarding equipment management and maintenance ; Under the operational responsibility system, the following indicators for equipment management are required to be achieved: a good condition rate of major production equipment of over 85% ; The degree of newness of the main production equipment must not decline ; No major equipment accidents. (II) Coordinate the relationship between production and maintenance, ensure planned maintenance of equipment, and organize the production and supply of maintenance spare parts. Combining equipment is not allowed in production. (III) In accordance with the guidelines, policies, regulations, and objectives regarding equipment management and maintenance set by higher authorities, it is necessary to establish the rules and procedures as well as management methods for equipment management and maintenance within the enterprise. Based on the enterprise’s long-term or annual business objectives, requirements and evaluation criteria should be set for the equipment and power management department ; Fully organize and lead the operations of the equipment and power systems, arrange inspections, equipment maintenance, upgrades, and energy management tasks, and coordinate inter-departmental relationships ; Mastering and using properly the funds for equipment renewal and transformation, as well as the funds for major repairs ; Organize the review of plans for major equipment repairs and upgrades, as well as feasibility analyses for major projects, and approve cost budgets ; Responsible for organizing education and technical training for employees in equipment management and maintenance ; Organize mass-based equipment maintenance competitions, identify model cases, and summarize and promote advanced practices ; Decisions are made regarding the handling of major equipment accidents. Chapter 3: Preliminary Management Article 10: The enterprise’s equipment and power department must be responsible for or participate in the preliminary management of equipment updates, technical upgrades, the development of custom-made equipment, new projects, and occasional purchases of equipment. This includes tasks such as research, planning, procurement (design and manufacturing), installation, and commissioning. In particular, it is necessary to conduct economic and technical feasibility analyses for key equipment, ensure proper selection and quality control during installation and acceptance, so as to lay a solid foundation for effective subsequent management of the equipment. The equipment power department shall participate in the design review and construction acceptance of public facilities (such as air, water, steam, electricity, etc.) for capital construction and renovation/extension projects. Article 11: For imported equipment, the equipment power department must participate in the investigation and evaluation for model selection. In negotiations with foreign parties, the Equipment and Power Department is responsible for putting forward requirements regarding reliability, maintainability, and cost-effectiveness, as well as requirements for spare parts and accessories, lubricants, training for maintenance personnel, and technical documentation needed for equipment installation and maintenance. Article 12: The equipment and power department shall collect extensively information on the technological development of equipment and market trends, as well as opinions regarding the use of such equipment, in order to provide a basis for making appropriate selections of equipment. At the same time, information regarding issues such as quality, efficiency, operational problems, faults, and improvement measures that arise in the early stages of use of new equipment should be promptly feedbacked to the manufacturing unit. In particular, import equipment must have the relevant work completed within the claim period. Chapter 4: Basic Management Article 13: When the enterprise’s equipment and power department completes the equipment acceptance procedures and hands the equipment over for production, it must assign a unique serial number to each piece of equipment as required, create equipment cards and records, and establish equipment files, ensuring that all accompanying documents and technical materials are available. The technical documentation for imported equipment should be promptly translated in its entirety and filed. Rechecks are carried out annually to ensure that the accounts, physical items, and cards are in agreement. Article 14: The production equipment of enterprises shall be subject to classified management. The management measures for key equipment in the machinery industry are formulated by the **Machinery Commission** ; Provincial, autonomous region, and municipal governments formulate management measures for high-precision, large-scale, heavy-duty, and rare equipment ; The enterprise formulates specific management methods for the remaining equipment. Article 15: Enterprises shall classify equipment into equipment requiring focused preventive maintenance (hereinafter referred to as key equipment), equipment requiring general preventive maintenance, and equipment requiring corrective maintenance, based on the importance of the equipment in production and its impact on the quality of the products manufactured, as well as factors such as the reliability and maintainability of the equipment, the losses incurred due to equipment downtime, and the original cost of the equipment. Different management methods and maintenance approaches should be adopted for different types of equipment. The scope of key equipment and the corresponding management methods are determined by the enterprise itself, and can be adjusted in light of changes in the enterprise’s production tasks. Article 16 Sealing of equipment. Due to reasons such as insufficient production tasks, equipment that has been out of use for six months or more should be sealed, and the sealing procedures must be followed accordingly; the sealed equipment must have clear markings. Before sealing the equipment, a comprehensive maintenance check should be carried out, and measures should be taken to prevent dust, rust, and moisture. A designated person should be assigned to take care of it, with regular inspections and maintenance performed. All sealed equipment must meet the requirements of intact equipment and be included in the equipment inspection scope. Enterprises should take active measures to deal with equipment that has been idle for more than 2 years due to process adjustments, product shift, or other reasons. At the same time, relevant departments can be requested to assist with handling it. Article 17 Transfer and relocation of equipment. Equipment is transferred on a paid basis; the transfer of equipment requires approval in accordance with hierarchical management requirements. The equipment being transferred must come with its original auxiliary devices, attachments, and technical documents. The relocation of equipment between workshops within a company shall be handled through the equipment and power management department. Key equipment and high-precision equipment in the machinery industry that have exceeded their service life, whose main structures and components are severely worn out, have lost their precision, or have been damaged by natural disasters to such an extent that their original performance and precision cannot be restored, can be downgraded. For equipment that needs to be used at a lower capacity, a review team composed of company leaders, technical personnel, and experienced workers shall be formed. Based on the requests submitted by the departments using the equipment, this team will conduct reviews, analyses, and evaluations to formulate an opinion thereon, which will then be submitted to the higher-level authorities for approval. Key equipment in the machinery industry must be registered with the **Machinery Committee**. Article 18 Disposal of equipment. Equipment whose main structure is severely damaged and cannot be repaired, or for which repair or modification is not economically viable, which poses a risk to safe production, causes severe environmental pollution, or falls under the category of equipment specified by policies as requiring disposal, can be declared scrap. The disposal of key equipment in the machinery industry, as well as precision, large-scale, and rare equipment, is determined by the regulatory authorities of provinces, autonomous regions, and municipalities directly under the Central Government; among these, key equipment in the machinery industry must be registered with the Machinery Commission. The funds derived from the disposal of obsolete equipment can only be used for equipment renewal and upgrading. Article 19 Equipment failures and accidents. Equipment failure occurs when a device or its components lose their original precision and performance, are unable to operate properly, or experience a decline in technical capabilities, resulting in production shutdowns or economic losses. A equipment accident is defined as a situation in which downtime caused by equipment failure or the repair costs reach the specified amounts. Minor accidents: The repair cost for ordinary equipment is generally between 500 and 10,000 yuan ; High-precision, large-scale, rare equipment and key machinery in the machinery industry ranging from 10 million to 30 million yuan ; A power outage affecting the entire plant for 10 to 30 minutes due to equipment failure is considered a minor accident. Major accidents: The repair costs for ordinary equipment are generally over 10,000 yuan ; Key equipment in the machinery industry, as well as precision, large-scale, and rare equipment with a value of over 30,000 yuan ; A major accident is defined as a power outage across the entire plant lasting more than 30 minutes due to equipment failure. Catastrophic accident: An accident is considered catastrophic if the repair costs exceed 500,000 yuan, or if it results in the suspension of entire factory operations for more than two days, or the suspension of workshop operations for more than one week. After an accident occurs, the enterprise shall, in accordance with the relevant regulations on hierarchical management of equipment, report to the superior authorities, and promptly organize relevant personnel to analyze the causes, take serious action, and draw lessons from the incident. After a major or extremely serious accident occurs, it must be reported to the superior competent authority within 24 hours, with a copy also sent to the **Mechanical Committee. The results of the handling must be reported to the competent authority within 1 month, with a copy also sent to the **Mechanical Committee. In the case of equipment accidents, the principle of “three no’s” must be followed: do not let go until the cause of the accident is clearly analyzed; do not let go until those responsible for the accident and the relevant personnel have received education; do not let go until preventive measures are put in place. The causes and responsibilities for all accidents must be investigated; depending on the severity of the situation and the extent of responsibility, administrative sanctions or financial compensation shall be imposed accordingly, while those who violate the law shall be punished in accordance with the law. Units and individuals that conceal or misreport equipment accidents should be subject to stricter penalties, and leadership responsibilities should also be held accountable. The frequency of equipment accidents should be recorded in accordance with regulations and reported on a regular basis. For equipment failures with repair costs of less than 500 yuan or power outages across the entire plant lasting less than 10 minutes, it is also necessary to determine the causes and assign responsibilities. Article 20: Self-made equipment that, after six months of production testing, is able to consistently meet the requirements of the product manufacturing process, comes with complete technical documentation, matches the actual equipment, and meets the standards for fixed assets, may be included in the company’s fixed assets for management; otherwise, it cannot be classified as a fixed asset. Article 20: Power equipment shall be under the management of designated personnel, who must strictly adhere to safety and technical operating procedures. Regular preventive tests shall be carried out to ensure safe, reliable, economical, and efficient operation. The installation and modification of general power equipment, pipelines, and wiring must be approved by the enterprise’s equipment and power department, and finalized by the enterprise’s senior management. The installation, modification, repair, and retirement of important equipment such as lifting equipment, pressure vessels, boilers, and power distribution systems must be carried out in accordance with the regulations set by the relevant authorities. Article 22: Enterprises shall establish and improve various working systems, working standards, work processes, unified forms, work quotas, as well as as-built drawings for utility pipelines for equipment management and maintenance. Strengthen the management of various technical documents, drawings, and archives, particularly the management of as-built drawings for power pipelines. Equipment technical archives and drawing materials should be stored in a storage area that meets the requirements for archive management. Article 23: It is necessary to strengthen the management of equipment and the collection of maintenance-related information, as well as data processing and statistical analysis. All original documents and charts must be complete, and the data must be accurate. **For the prescribed statistical reports, a dedicated person should be responsible for compiling them, ensuring that they are filled out neatly, the data is accurate, and they are submitted on time. Article 24: Enterprises should continuously improve the level of equipment management, actively create the necessary conditions, and gradually implement computer-based processing of equipment management and maintenance data in order to enhance the quality and efficiency of information processing. Chapter 5: Technical Condition Management Article 25: Equipment must be kept in good technical condition at all times to ensure proper operation. The main production equipment should be regularly inspected in accordance with the patterns of wear and variation of the equipment; at least one comprehensive inspection should be carried out each year to tally, analyze, and assess the equipment’s condition. This enables timely and thorough understanding of the technical status of the equipment, which in turn serves as a basis for formulating maintenance plans and providing leadership with information for decision-making. Article 26: When a malfunction occurs in the equipment and the operators are unable to resolve it, they should immediately notify the relevant personnel to arrange for repair workers to address the issue. A record of the malfunction must be kept. For areas where malfunctions occur frequently, the equipment management and maintenance departments should conduct a thorough analysis and develop measures to improve maintenance. Try to eliminate the root causes of failures as much as possible. Article 27: For key equipment, a system of regular inspections (daily inspections and periodic inspections) must be implemented to monitor the technical condition of the equipment. Advanced monitoring and diagnostic techniques should be gradually adopted for condition-based maintenance, so as to detect abnormalities early and take preventive measures. For lifting equipment, pressure vessels, and power distribution equipment, load or preventive tests are carried out regularly in accordance with relevant regulations. Article 28: For the equipment used in key processing steps, regular checks on geometric accuracy should be carried out. When necessary, dynamic accuracy tests should also be performed, and adjustments should be made promptly, with proper records kept to ensure the quality of product manufacturing. Chapter 6: Use, Maintenance, and Repair Article 29: Before using equipment independently, workers must receive theoretical training on aspects such as the equipment’s structure, performance, technical specifications, maintenance procedures, and safety operating rules, as well as practical training in operational skills. Only after passing the exam and obtaining a equipment operation certificate can one operate the equipment independently. Article 30: Operators should master the \"Three Goods\" and \"Four Skills\", and strictly comply with the \"Four Requirements\" and \"Five Disciplines\" for using equipment (see Appendix). Article 30: The use of equipment shall be assigned to specific personnel and machines, operations shall be carried out based on relevant permits, and a strict post responsibility system shall be implemented. For equipment and production lines operated by multiple people, a captain system must be implemented, with the captain taking responsibility. For equipment used in multi-shift production, operators must implement an equipment handover system. Single-shift equipment should have operation records. Article 32: Operators must strictly abide by the equipment operation procedures and use the equipment properly. It is strictly prohibited to use precision machinery in a rough manner, to overload it, to operate it beyond the specified parameters, or to force the equipment beyond its capacity. If on-site production managers or superiors order workers to use equipment beyond its capacity or in a manner that violates regulations, the equipment management department has the right to stop such actions. Workers have the right to refuse, and may escalate the issue to higher authorities; furthermore, those who give illegal instructions shall be held accountable. Article 33: Production equipment must strictly adhere to the systems of routine maintenance and periodic maintenance. Article 34: Enterprises shall adopt preventive maintenance methods in accordance with the characteristics of production and the conditions of equipment ; For production lines, process equipment that must operate continuously throughout the year, all available production downtime should be utilized to schedule regular maintenance and inspections, and a thorough plan for major overhauls should be developed ; For general equipment that has little impact on production, corrective maintenance can be adopted. Article 35: A regional responsibility system for maintenance work shall be implemented. According to the assigned responsibilities, carry out routine inspections of equipment within one’s jurisdiction, as well as planned and emergency repairs, while keeping proper records ; Records and statistics should be kept on the integrity rate of major production equipment, the downtime due to failures, the equipment availability rate, maintenance plans, as well as the completion status of daily maintenance and regular servicing tasks, as these serve as the basis for evaluation ; Conduct daily and regular inspections on the critical parts of key equipment in accordance with specified requirements, and keep proper records. Article 36: Enterprises shall establish lubrication stations, and workshops shall have lubrication points. Appropriate technical personnel and full-time lubrication workers shall be assigned, along with a sufficient number of lubrication facilities that meet the required standards ; Establish and improve the lubrication management system. For equipment lubrication, it is necessary to follow the \"five fixes\" (fixed person, fixed quality, fixed quantity, fixed location, and fixed schedule), and adopt scientific methods for oil replacement based on monitoring the oil quality. Article 37 The categories of preventive equipment maintenance are generally divided into major repairs, itemized repairs, and minor repairs. (1) Major repairs: Major repairs of equipment represent the type of repair with the greatest workload among planned repair activities. During major repairs, the equipment to be repaired must be completely disassembled, the reference parts must be repaired, and all worn parts must be replaced. Repair and adjust the electrical components simultaneously, as well as refurbish the exterior. Thereby completely eliminating the defects present in the equipment before repair, and restoring its original precision, performance, and efficiency. (II) Project repairs: Based on the technical condition of the equipment, targeted repairs are carried out as needed for those aspects of its precision and functionality that do not meet the process requirements. During repair, the machine is generally partially disassembled; worn parts are repaired or replaced, and local grinding may be carried out if necessary to adjust the machine’s coordinates, thereby restoring the equipment’s precision and performance. (III) Minor repairs: Minor repairs to equipment involve carrying out inspections and adjustments on certain components as specified in the regular maintenance schedule, or in response to issues identified during routine checks and periodic inspections. Some components are removed for inspection and repair, and a small number of worn parts are replaced or fixed. At the same time, technical methods such as inspections, adjustments, and tightening of components are used to restore the equipment’s operational performance. Enterprises should formulate annual and quarterly maintenance plans and implement them conscientiously. The major maintenance plans for key production equipment must be approved by the factory manager and filed with the higher-level supervisory authorities. Article 38: Equipment repair plans must be included in the assessment of production plans at all levels within the enterprise. It is necessary to prepare a maintenance work plan, including technical and production preparations prior to the repair. For key equipment that is complex to repair and requires significant effort, network technology should be used to develop repair plans and carry out the repairs according to those plans. Article 39: Enterprises shall organize the production, supply, and storage of spare parts and components needed for maintenance, establish quotas for spare parts inventory, and set up spare parts inventory cards. They should actively deal with any excess stock, accelerate the turnover of funds, and ensure a economically reasonable level of inventory. The spare parts for the introduced equipment should exceed the average level of maintenance spare part availability, and special funds should be set aside for large and specialized spare parts. In areas with the necessary conditions, spare parts should gradually be transitioned to centralized storage. Article 40: The quality inspection after major equipment repairs is carried out primarily by full-time equipment inspectors from the quality management department, in conjunction with the equipment and power departments as well as the user departments, with the participation of maintenance workers and operators. The maintenance department is responsible for the quality of the equipment being maintained. During the 3-month warranty period, the company must assess the rate of rework required due to quality issues following major repairs. The quality requirements after repair are as follows: the equipment must regain its specified operational capabilities, meet the original factory or production standards, be equipped with all necessary components and accessories, and the repair-related technical documents must be archived in a timely manner as required ; However, for the following situations, repair downgrade standards can be established with the approval of the enterprise’s equipment management supervisor. Differentiated treatment: (1) For old equipment that has undergone more than two major repairs, severely damaged equipment, or equipment with serious inherent defects, the tolerance limits can be appropriately relaxed in accordance with the process requirements, and specific quality standards for major repairs can be established. (II) For general equipment that is used over a long period for processing in a single operation, after major repairs, the parameters related to that processing operation must meet the technical requirements; as for the other parameters, the requirements can be reduced or inspection can be waived based on the actual conditions of the enterprise. Meanwhile, the budget allocated for repair costs should be reduced accordingly. Article 40: The management of the fund for major equipment repairs shall be strengthened. The equipment major repair fund should be allocated at the prescribed rate, and it shall be managed and utilized according to a plan by the enterprise’s equipment and power department, so as to ensure that equipment requiring major repairs is repaired in a timely manner as planned. The finance department is responsible for strengthening oversight, while the audit department is tasked with supervision. Chapter 7: Transformation and Renewal Article 42: Equipment transformation and renewal are among the important tasks of an enterprise. Enterprises should formulate plans for equipment transformation and renewal based on their product development strategies, as well as considering process improvements and the technical condition of the equipment. These plans constitute an important part of the enterprise’s technical transformation strategy. The equipment and power department is responsible for drafting annual plans and overseeing their implementation. Article 43 Approval of equipment renovation and upgrading plans. The renovation and upgrading of regular equipment are proposed by the company’s equipment and power department, who submit the plans for approval to the person in charge of equipment management (the chief mechanic or full-time deputy chief engineer). For major renovations and upgrades of equipment that are included in new construction or technical improvement projects, a technical and economic analysis must be conducted by the company’s chief engineer; once approved by the plant manager, such projects can be carried out, with the equipment and power department playing an active role in their implementation. Article 44 Equipment technical upgrades should be carried out in conjunction with major repairs. When the funds required for renovation do not exceed 30% of the major repair costs of the equipment being renovated, they may be included in the major repair expenses ; If the deadline is exceeded, the renovation measures should be specifically included in the technical improvement plan or the company’s technical transformation plan, with the required funds to be covered by the depreciation fund or the resources allocated for the company’s technical transformation. The additional value created after the equipment modification should be accounted for as an increase in value in cases where it is covered by major repair funds; whereas an increase in value should be recorded in cases where it is covered by depreciation funds and similar sources. Article 45: In principle, equipment renewal involves replacing old equipment with outdated technical performance that cannot be repaired or upgraded, using equipment with more advanced technical capabilities. Equipment that meets one of the following conditions may be renewed: (1) After multiple major repairs, its technical performance no longer meets the process requirements and cannot ensure product quality ; (II) Outdated technical performance and poor economic efficiency ; (III) The accuracy and performance can be restored through repair. But it’s not economical ; (IV) High energy consumption or severe environmental pollution that endangers human safety and health, and renovation is not cost-effective ; (5) **Equipment designated for retirement by relevant authorities. Article 46: Equipment renewal work shall be carried out under the leadership of the deputy plant manager in charge of equipment or the chief engineer, with the chief mechanical (power) engineer (full-time deputy chief engineer) taking specific responsibility for it. A review meeting should be held, with participation from the equipment and power department as well as departments responsible for planning, production, technology, processes, finance, quality, and operation, in order to discuss the renewal plans. Once approved, the equipment and power department shall be responsible for implementing the plan. For the equipment renewal component of the technical measures included in the **plan, the equipment and power department takes part, with the relevant departments responsible for its implementation. Article 47: For the old equipment that is replaced (phased out), a technical appraisal shall be conducted, and appropriate measures shall be taken depending on the specific circumstances. The proceeds from the sale of the treated equipment must be used for equipment renewal and upgrading as required, and shall not be diverted for other purposes. Scrapped pressurized vessels and **equipment designated for retirement shall not be resold for use by other entities. Chapter 8 Economic Management Article 48: When purchasing new equipment or undergoing major renovations to existing equipment, economic management shall be carried out under the leadership of the plant manager, with the equipment and power department working in conjunction with relevant departments, following the principle of minimizing the total life-cycle cost of the equipment. Economic efficiency must be considered at every stage of the equipment’s lifecycle management. Article 49 Equipment maintenance costs (including major repair costs) shall be used reasonably. The corporate finance and accounting department should work together with the equipment and power department to set allocation targets for the costs related to equipment maintenance and repair within the workshop budget. The equipment and power department is responsible for overseeing the use of these funds, and it is necessary to keep detailed records of the costs associated with major equipment repairs. The allocation of costs must be fair and reasonable. Within the company, it is important to track and analyze metrics such as the cost of major repairs, the average downtime caused by equipment repairs, the maintenance costs per 10,000 units of output, and the ratio of maintenance costs to fixed assets. Statistical analysis should be conducted on the costs of major repairs and the maintenance expenses per 10,000 yuan of output value (including the costs of major repairs), with an effort to ensure economic rationality. Article 50: Enterprises shall conduct statistics and evaluations on the net output value rate of production equipment and fixed assets, continuously improve the utilization rate of existing equipment, and strive to generate greater economic benefits for the enterprise with less investment in equipment. Chapter 9 Education and Training Article 50: The training plan for equipment management and maintenance personnel shall be incorporated into the enterprise’s training plan ; Include the education of basic theoretical knowledge on equipment management and maintenance in the corporate employee training programs, and provide guarantees in terms of time, resources, and funding. Train current employees in phases, and include their learning outcomes as one of the criteria for competition evaluations and promotion. Article 52: In line with work requirements, the Equipment and Power Department, in conjunction with the Education Department, shall systematically select cadres and workers who are enthusiastic about equipment work and have excellent performance to attend various specialized training courses outside the factory for further education. They may also enroll in institutions of higher learning, television universities, or part-time worker colleges to receive formal professional training in equipment management and maintenance, so as to meet the needs of the four modernizations drive. Chapter 10: Rewards and Punishments Article 53: Enterprises should actively participate in the activities aimed at improving equipment management organized by the competent authorities at various levels. Once recognized as outstanding units in equipment management at those levels, enterprises should commend and reward the relevant personnel as a form of encouragement. Article 54: Enterprises shall regularly organize award ceremonies for advanced collectives and individuals in equipment management within the company, publicize their achievements, identify role models, and commend and reward those who excel, in order to promote equipment management and maintenance work and provide incentives for such efforts. Article 55: Maintenance work requires a broad range of knowledge and involves complex techniques; the compensation and incentives for those engaged in equipment management and maintenance should be no less than those offered to production staff under similar working conditions ; Projects that have made significant contributions to management, maintenance, and technological innovation should be included in the awards for scientific and technological achievements. Article 56 Workshops, teams, and individuals that fail to maintain their equipment properly should be subject to critical education; those who persist in such behavior despite repeated warnings should be subjected to financial penalties. Those who cause equipment-related accidents due to illegal operations or negligence, as well as those units and individuals responsible for severe deterioration of the equipment’s condition due to neglect, shall be given criticism and education, administrative sanctions, ordered to compensate for economic losses, or even held criminally liable, depending on the severity of the offense. Chapter 11: Supplementary Provisions Article 57: These provisions apply to machinery manufacturing enterprises owned by the whole people. Collectively-owned enterprises and public institutions may implement these provisions in light of their own conditions. Separate implementation rules have been issued for the management of specialized equipment in arms manufacturing enterprises. These regulations are interpreted by the **Mechanical Committee. Article 58 These provisions shall come into force as of the date of promulgation. The previously issued Regulations on Equipment Management and Maintenance in the Machinery Industry are hereby repealed. Appendix — Explanation of “Three Goods” and “Four Abilities” (1) Manage well, use well, and maintain well. (II) Be able to use, maintain, inspect, and troubleshoot. II. Explanation of the “Five Disciplines” for Using Equipment (1) Use the equipment only with an operation permit, and abide by the safety operating procedures. (II) Keep the equipment clean at all times and refuel it as specified. (III) Comply with the equipment shift-handover system. (IV) Manage tools and attachments properly to prevent loss. (5) If any abnormality is detected, stop the machine immediately; for issues that cannot be resolved on one’s own, notify the relevant personnel promptly to carry out inspections and repairs. III. Explanation of the “Four Requirements” for Equipment Maintenance (1) Neatness: Tools, workpieces, and accessories should be placed neatly; safety protection devices must be in place, and electrical circuits and pipelines must be safe and intact. (II) Cleaning: Cleaning the inside and outside of the equipment ; There is no oil residue or damage on the various sliding surfaces, screw rods, racks, gears, etc.; no leakage of water or oil occurs in any part, and all chips and debris have been cleaned away. (III) Lubrication: Refill and change oil on schedule, using oil that meets the required standards; ensure that oil containers, oil guns, and oil cups are all available ; Clean the felt, oil lines, and oil gauges to ensure unobstructed oil flow. (IV) Safety: Implement a system of assigning specific personnel to specific machines, operating based on permits, and conducting shift handovers ; Familiarize oneself with the equipment’s structure and adhere to operating procedures, use it properly, maintain it carefully, and ensure safety without any accidents. IV. Calculation methods for the relevant economic, technical indicators and statistical items used in these regulations (1) Rate of net output value generated by fixed assets for equipment: Total net output value generated by the enterprise throughout the year (in ten thousand yuan) ÷ Average original value of fixed assets for equipment throughout the year (in ten thousand yuan) × 100%. Where, the average original value of fixed assets for equipment throughout the year = (original value at the beginning of the year + original value at the end of the year) ÷ 12. (II) Equipment availability rate = (Available working hours of the equipment) / (Total hours the equipment is out of service for repairs) × 100%. Here, the total hours the equipment is out of service for repairs equal the hours it is out of service for preventive maintenance plus the hours it is out of service due to repairs caused by failures. It refers to the total downtime from the moment the equipment is delivered for maintenance (preventive planned maintenance starts when the production department stops operations for repairs, and corrective maintenance begins upon receipt of a maintenance request), until the equipment is repaired, inspected and approved, and ready for official use again. (III) Availability rate of major production equipment: Number of major production equipment units in good condition / Total number of major production equipment units × 100%
(IV) Equipment freshness coefficient: Net value of all production equipment as fixed assets at the end of the year (in ten thousand yuan) / Original value of all production equipment as fixed assets at the end of the year (in ten thousand yuan) × 100%
(V) Downtime due to equipment failures: Hours of downtime caused by equipment failures / (Actual operating hours of equipment + Hours of downtime due to equipment failures). The hours of downtime due to failures include those resulting from accidents. (VI) Completion rate of equipment overhauls: The actual number of major production equipment units for which overhauls were completed. Completion rate of equipment overhauls = -------------------------------------- × 100% / Number of major production equipment units scheduled for overhaul.
(VII) Cost of equipment overhauls: The total actual cost of equipment overhauls throughout the year (in yuan). Average cost per overhaul = ------------------------------------- / Total complexity coefficient of all equipment overhauled during the year.
(VIII) Maintenance costs per 10,000 yuan of output value: Maintenance costs per 10,000 yuan of output value = Total actual cost of equipment overhauls for the year (in 10,000 yuan) + Total actual maintenance costs (in 10,000 yuan) / Total annual output value of the enterprise (in 10,000 yuan).
(VIX) Average downtime due to equipment overhauls: Total actual downtime resulting from overhauls throughout the year. Average downtime per overhaul = ---------------------------------- / Total complexity coefficient of all overhauls completed during the year.
(X) Rate of rework due to poor quality of overhauls (the warranty period is assumed to be 3 months). Actual downtime due to rework during the warranty period. Rate of rework due to poor quality of overhauls = -------------------------- × 100% / Actual downtime due to rework on the equipment.
(XI) Frequency of accidents involving major production equipment: Number of accidents that occur with major production equipment throughout the year. Frequency of accidents involving major production equipment = -------------- / Total operating hours of major production equipment during the year
Equipment Maintenance Planning Management System: This system is established to keep equipment in good working condition at all times, to address any defects in the equipment promptly, to ensure the quality of maintenance work, to extend the equipment’s service life, to save time spent on maintenance, and to reduce maintenance costs. 1. Equipment maintenance is divided into major repairs, medium repairs, minor repairs, major overhauls during system (unit) shutdowns, and routine repairs. The costs of major repairs are covered by the major repair fund ; Costs for medium and minor repairs are covered by production expenses ; The costs for major shutdown overhauls of the system (equipment) are paid separately according to the projects and types of maintenance. 2. Carry out scientific and civilized maintenance work, strictly follow the maintenance technical regulations, and the enterprise’s equipment and power departments must strictly control the use of funds allocated for major repairs. Establish reasonable maintenance quotas, improve maintenance techniques, and gradually extend the service life of equipment. 3. Develop plans for major, medium, and minor equipment repairs based on the maintenance intervals and the problems identified during equipment inspections. The equipment maintenance plans are formulated simultaneously with the production plans, issued at the same time, and subject to inspection and evaluation at the same time. A maintenance task order must be issued for any maintenance work. 4. The equipment maintenance plan is prepared by the workshop. The balance of power allocation for plant (mine) equipment is determined and issued after approval by the head of the plant (mine). When a maintenance plan is proposed, a plan for spare parts, materials, and tools should also be submitted simultaneously. The annual plan is submitted in the first 4 months of the year ; Quarterly plans are submitted 1 month before the quarter begins ; Monthly plans should be submitted 15 days before the month. 5. The major maintenance shutdown of the system (equipment) must ensure that: (1) a deputy plant manager is fully responsible for carrying out the major maintenance work. (2) Before the major maintenance, a preparatory leadership team for the maintenance should be established to be responsible for implementing the maintenance tasks, preparing the necessary materials and resources, arranging the labor force, and formulating plans for starting up and shutting down the system. (3) The personnel responsible for organizing and directing the major maintenance work must have unified planning, unified command, and coordinated actions. It is necessary to achieve the “three orientations” (that is, orientation toward the masses, orientation toward the grassroots level, and orientation toward production) as well as the “five deliveries to the site” (that is, ideological work delivered to the site, production oversight delivered to the site, material supply delivered to the site, design and research efforts delivered to the site, and living services delivered to the site). Pay close attention to the “four key stages”: parking, replacement, inspection and maintenance, and pressure testing for commissioning. (4) During the major maintenance, strict quality inspections and completion acceptance procedures must be carried out to ensure that the maintenance tasks are completed to the required standard and in full, on schedule, so as to achieve a successful first trial run. After the maintenance is completed, a summary evaluation should be conducted. (5) Work together with relevant departments to ensure safety and prevent accidents. 6. Strictly and carefully implement the equipment maintenance plan; if adjustments are indeed necessary, approval procedures must be followed. Adjustments to the medium and minor maintenance plans for equipment are approved by the Equipment and Power Department of the factory (mine) ; The major maintenance plan is adjusted on a yearly basis in June, organized by the Equipment and Power Department of the factory (mine), and submitted for approval to the higher-level supervising authority. 7. For technological innovations achieved through major or medium-scale repairs of equipment (such as structural changes or the use of new materials and components), the workshop shall submit a report to the plant (mine)’s equipment and power department, along with drawings for explanation; implementation is permitted only after approval. Major innovations must be submitted by the Plant (Mine) Equipment and Power Department to the higher-level competent authority for approval. 8. A major repair plan is required for equipment overhauls. For complex projects, it is necessary to draw network diagrams. The major repair plan includes: inspection items, quality requirements, project schedule, labor force, spare parts, materials, requirements for special tools and equipment, commissioning and acceptance procedures, safety measures, etc. Once the major maintenance plan for the equipment is finalized, the relevant departments must ensure the supply of materials, spare parts, and prepare the necessary labor force. Before construction, the Equipment Power Department takes measures to ensure the smooth completion of the major repair work. 9. When performing equipment maintenance, it is necessary to strictly follow the procedures for equipment handover and adhere to the safety and technical regulations for maintenance work. The construction unit must complete the required procedures such as signing a maintenance task order and obtaining a fire permit before starting the maintenance. The production workshop is responsible for handling the equipment that has been shut down; once it meets the required standards, it is handed over to the construction team, and dedicated personnel are assigned to assist the workers with any matters related to safety. Safety guardrails or markings should be installed at the construction site to ensure safe maintenance work. 10. Equipment maintenance must strictly follow the maintenance plan and procedures. If there are changes needed in the schedule or scope of the maintenance work, or if issues arise regarding quality requirements, it is necessary to report this to the workshop or the Equipment and Power Department, so that relevant personnel can be organized to address the problems promptly. 11. Quality control must be ensured during equipment maintenance, by combining self-inspection, mutual inspection, and professional inspections, and this approach should be applied throughout the entire construction process. The main load-bearing components must have certification of conformity. The completion acceptance of major equipment overhauls is organized by the Equipment and Power Department ; The major overhauls of general equipment, as well as the completion inspections for the medium-scale overhauls of all equipment, are organized by the workshop ; The construction unit must ensure that the work is completed, all materials are removed, and the site is clean. 12. The maintenance of pressure vessels must comply not only with the maintenance procedures or plans for inspection and acceptance, but also with the relevant regulations regarding the management of pressure vessels. 13. Complete maintenance records must be kept for major and medium-scale repairs of equipment ; A major overhaul must come with complete handover documents, which should be recorded in the equipment archive. 14. The construction unit shall use materials and components in a cost-effective manner as planned, make use of recycled materials, and any remaining materials or components after maintenance must be returned to the warehouse specific to the project; they cannot be used elsewhere, in order to minimize maintenance costs. 15. Maintenance personnel must carry out repairs in a scientific manner and in a civilized way, using specialized tools. The work site must be kept clean and orderly, and utmost attention must be paid to the quality of the work. 16. Each workshop must submit a report on the equipment maintenance activities carried out each month to the higher-level supervising department.