Octara April 2013-1 Optimizing Mtce Tactics.pdf

7/27/2019 Octara April 2013-1 Optimizing Mtce Tactics.pdf

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Ben Stevens

www.datatrak.ca [email protected]

Optimizing Maintenance Tactics

Session 1 – Introducing Maintenance Tactics

April/May 2013

Octara – DataTrak



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Agenda

1. What is a Strategy? What is a Tactic?

2. Practical Implications of Selecting Tactics

3. Why do we care about Tactics

4. How Maintenance Tactics can be put into practice

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The Objective of Maintenance?

• Reliability – Availability – Maintainability?

• To add value to the Organization

? ? ? ? ? ? ? ?



4

Asset Management’s Goal

is….…… to add value

Ensuring that the asset base for Plant, Fleet and Facilities

is optimized for

Availability - Maximum “uptime” for planned use

Reliability - Best “repair / replace” decisions

Maintainability - Minimise downtime from repair

Productive Value - Optimise value over asset life-cycle

Your strategy and tactics must support this



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A Maintenance Strategy …

• Guides us in the right overall direction…

• To support the organization’s goals…

• In producing the organization’s targeted

(and promised) output…

• Within the operating and budget constraints

of the organization.

• And to help us define the right tactics



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Maintenance Tactics - What are they?

Mission

Strategy

Plan

Tactics

Activities

We are in business to……

Our strategy is to introduce

modern ideas and technologies to

increase reliability

The maintenance plan consists of

a blend of the best tactics for

each equipment

We will use PM, PdM, RTF,

Corrective….

Our daily activities will be….



How does it all relate?

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1. Maintenance Strategy Best Practices

2. Maintenance Strategy Drivers

3. Maintenance Tactics Best Practices

4. Maintenance Activities and Tasks



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Organization’s Mission

Organization’s Objectives

Department Objectives

Operations Objectives

Maintenance Objectives

Job PlanWork Orders

Activities, Tasks

Results

Maintenance Strategy Maintenance Policies

Maintenance TargetsMaintenance Tactics



Strategy Management

Data Materials Tactics Measures Work

ReliabilityAutonomous

Maintenance

Leadership

Continuous

Improvement

Control

CBM

PM

Run to

Failure

PdM

Repair

The Excellence Cube

R fi



Improved Maintenance Performance,

Improved Operating Performance

Improved

Reliability

Reliability Centred Knowledge Solution

Data:

Content,Quality and

Collection

The Right

Information

To do the

Right Job

At the

Right Time

CMMSMaintenance

Plan

Work

Execution

DCS,

Equipment

And Parts

Selectionand Design

Data Feedback and update

Performance Management System

Current status

(CM)

Predictive

(EXAKT)

Analysis,

Diagnosis

(SpotLight)

Expectations

(RCM)

Plan the

tactics

Execute

the tacticsMeasure,

Evaluate

the results

Refine,develop

new

tactics

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Asset

Valuation

Accounts

Payable

HR

The Anatomy of a CMMS/EAM

Complete

Work

Work History

Asset Mgmt

Analyse

Data

Collect

Data

Schedule and

Issue WO

Check LabourAvailability

Check Materials

Availability

Equipment

Availability

Check Tools

Availability

Contractors

Availability

Maintenance

Plan

Materials

and ToolsEquipment

Costs and

Documents

Best

Practices

Labour &

Contractors

Issue Picklist,

Issue Materials

Trigger Purchase

Requisition

Trigger Purchase

Order

Materials

Receipt

Work

Order

WorkRequest

Condition

Based PM

Corrective

Time

Based PM

Inspection

Break-

down

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Execute

tacticsMeasure,

Evaluate

results

Refine,

develop new

tactics

Plan the

tactics

O t 2013



Agenda






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Choose the Right Tactics…

• Equipment runs smoothly = fewer

breakdowns

• Maintenance staff work more consistently =fewer panics

• Parts are more readily available = fewer

delays, fewer “waiting for parts”

• Operations are happier = fewer missed

output targets

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Who chooses the Tactics?

• And what criteria are used…

1. We always do it that way

2. Manufacturers recommendations

3. Reliability Engineer 4. Select according to type and cost of failure

versus cost of prevention

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Workshop

• Using the wrong tactics causes problems:

• List them (look for the chain of effects

behind the problems)

• Prioritise them

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Problems caused by wrong tactics

• More downtime = lost production = no shipments = no

revenue = lower profit

• More breakdowns = higher repair labour costs + higher

spares consumption = lower profit

• More emergencies = more overtime = higher cost = lower

profit

• Less smooth equipment operation = shorter asset lifetime =

higher capital cost = lower profit

• HSE impact = higher emissions and waste + higher

employee risk = lower profit

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Agenda






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Why do we care about Tactics?

• Cost

• Maintenance Effectiveness

• Asset value

• Revenue consistency

• Safety• Environmental Protection

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C St d



PdM/PM 10%

Corrective 20%

PLANNED

30%

Corrective 30%

Emergency 20%

Urgent20%

Breakdown 40%

UNPLANNED

70%

TOTAL Work 100%

Do we need to use the Best Tactics?

Typical Maintenance Work Processes

Case Study

Case St d



PdM/PM 45%

Corrective 35%

PLANNED

80%

Corrective 15%

Emergency 1%

Urgent 4%

Breakdown 5%

UNPLANNED

20%

TOTAL 100%

Benchmark Maintenance Work Processes

Case Study

30% 70%

40%

Case Study



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Tactic % of Total Cost Ratio % x Cost =

Units of work

Cost $

Planned and

PM’s

30% 1 30 $15,360

Unplanned

Corrective

30% 1.5 45 $23,040

Breakdowns 40% 3 120 $61,600

Total 100% 195 $100,000

Putting a value on Best Selection of

Maintenance Tactics - 1

Example:1. Assume the distribution of Maintenance is 30% Planned and

PM, 30% Unplanned Corrective and 40% Breakdown.

2. Assume that the ratio of effort and cost is 1 to 1.5 to 3

3. Then for a $100k spend, the cost distribution is:

That represents 195 units of work @ $512 per unit.

Case Study

Case Study



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Putting a value on Best Selection of

Maintenance Tactics -2By increasing the Planned/PM from 30% to 80%

Tactic % of Total Cost Ratio Activity Units Cost $

Planned and

PM’s

80% 1 80 $41,000

Unplanned

Corrective

15% 1.5 22.5 $11,500

Breakdowns 5% 3 15 $ 7,680

Total 100% 117.5 $60,180

Total cost reduction = $100,000 - $60,180 = $39,820

= 40%

Case Study

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30

30



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This understates the savings

• … because the really expensive work – theEmergency breakdown repairs are much

more than 3x the Planned work.

• Total of Emergency should fall from 20% to1%

• Cost ratio of Planned : Emergency is oftenas high as 1000:1



Workshop – Calculate the Savings

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Units of work

Cost $

Planned and

PM’s

20% 1 20 $10,000

Unplanned

Corrective

30% 3 90 $45,000

Breakdowns 50% 10 500 $250,000

Total 100% 610 $305,000


Units of work

Cost $

Planned and

PM’s

70% 1 $

Unplanned

Corrective

20% 3 $

Breakdowns 10% 10 $

Total 100% $

Before

After



Workshop – Calculate the Savings

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Units of work

Cost $

Planned and

PM’s

20% 1 20 $10,000

Unplanned

Corrective

30% 3 90 $45,000

Breakdowns 50% 10 500 $250,000

Total 100% 610 $305,000


Units of work

Cost $

Planned and

PM’s

70% 1 70 $35,000

Unplanned

Corrective

20% 3 60 $30,000

Breakdowns 10% 10 100 $50,000

Total 100% 230 $115,000

Before

After



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Objectives of Effective Tactics

To use the right blend of tactics to achieve the

objectives for the asset

Improve the use of knowledge by making surewe use the right tactics to do the right work

at the right time

The keystone for enhancing maintenancevalue and improving asset functionality



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Tactics and Assets - Benefits• Improve life cycle value of asset

• Reduce breakdowns and downtime

• Synchronize with operating cycle

• Improved operational capability

• Reduced energy consumption

• Reduced consumables

• Fewer trouble calls



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Tactics and Manpower - Benefits• Train to deliver the right skills for the right job

at the right time

• Introduce technicians to new techniques in a

planned and measured way• Fewer panics, fewer emergencies, fewer call-

ins

• Fewer HSE issues• Less “useless” work



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Tactics and Spares - Benefits

• Better forecasting of spares

• Fewer spares outages, less “waiting for

spares”

• Move towards Just-in-Time purchasing

• Buy the right amount at the right time = not

too much in stock, not too little

• Impact on cash flow



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Tactics and Costs - Benefits

• Tactics selection includes assessing cost ==

overall lower cost

• Reduced manpower costs by reduced emergenciesand breakdowns

• Reduced materials costs by right buying

• Reduced contractor costs by doing more in-house• Reduced production losses by better equipment

maintenance



Workshop

• Review the last five slides

• Select the most important Benefit for your

organization in relation to one criticalequipment

• Calculate the approximate savings

• Start to build an action plan to make it

happen

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Agenda



3. Why do we care about Tactics4. How Maintenance Tactics can be put into practice

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How to move to the RIGHT tactics

• For each critical equipment… – Review the work history

– For critical failures and repeat failures, analyse the Failure modes

– Develop a specific PM program to prevent these failures – blendingCondition-based with Time-based, considering also Redesign and Runto Failure

– Implement the PM’s as Priority 1 and closely monitor their success(make sure they are actually done!)

– For each successive new failure, adjust the PM’s

• Do the same for expensive non-critical equipment and

expensive repairs on non-critical equipment



Converting Strategy into Tactics

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To change tactics, we have to be successful at

two levels…

1. The Manager must be convinced to initiate

and support the change

2. The User must be convinced to accept andmake the change happen



For the Manager/Supervisor….

• Summarize what benefit the change will

bring for the company and for him

• Provide data of the impact (history +forecasts, financial KPI’s)

• Prepare detailed implementation plan (who,

how, what and when)• Identify the risks and how they will be

counteracted

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For the Technician

• Explain and show what’s going to happen and why

• Explain what’s in it for them

• Get them involved in the planning process

• Make sure you have a solid training plan

• Make sure they understand what happens if theydon’t get it first time

• Regular re-inforcement, re-visiting and rewards• Re-train and re-train

• Above all, communicate and reward success



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For Operations

• Explain and show what’s going to happen and why – Impact on run time

– Impact on maintenance and operations schedule

– Impact on how the equipment will operate differently – Impact on output

• Explain the impact on the operator’s work

• Make sure you have a solid training plan

• Above all, communicate



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Our Strategy is to emphasize PM’s ---

What if it doesn’t work?

only 90% are issued

54% are signed off as “complete”

27% are

actually done

Fact: of every 100

PMWO’s,



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Workshop

• If you are facing the situation shown on the

last slide…

• Identify the steps needed to solve the

problem



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Personal development Plan Workshop:

1. Review what we have talked about today

2. Select at least three ideas that you like toimplement or would like to know more about

3. Write each idea on the next slide and…

1. Rate the benefit to you or to your business from 10(highest) to 1 (lowest)

2. Rate the cost and difficulty of making it happen from

10 (easiest, least expensive) to 1 (most difficult, most

expensive)

3. Calculate the score by multiplying Benefit by

Cost/Difficulty

4. Priorities – highest score is top priority

DataTrak



Idea # Idea Benefit

(10=High)

Cost/

Difficulty

(10=Low)

Score

B x

C/D

Priority

1

2

3

4

5

6

Exam-

ple 1Build table showing

Equipment Criticality

7 7.5 52.5 High

Exam-

ple 2Set measurement levels for

Potential Failures

10 7 70 Top

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Priority:

Top = >70

High = 50-69

Med = 30-49

Low = <30



Questions???

Results…… Successes?

Let me know!

Ben [email protected]

www.datatrak.ca

+1 - 613-273-4366