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AN EASY WAY TO IMPROVE EFFICIENCY
Big West OilSalt Lake City, UtahJanuary 21, 2016
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Efficiency (Engineer’s perspective)
Energy efficiency is a measure of how well a device transfers energy into the form we want.
efficiency (%) = (useful energy out ÷ total energy in) x 100.
When energy is transferred, some of the energy turns into forms we don’t want.
This energy is called wasted energy.. Wasted energy takes the form of heat and sometimes sound or light. During any energy transfer, some energy is changed into heat. The heat becomes spread out into the environment. This dispersed energy becomes increasingly difficult to use in future energy transfers.
In the end, all energy is transferred into heat.
Total Energy In
Wasted Energy
Useful Energy Out
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Efficiency
The ability to do something or produce something without wasting materials, time, or energy – Merriam-Webster Dictionary
Accomplishment of or ability to accomplish a job with a minimum expenditure of time and effort –Dictionary.com
Useful work per quantity of energy, mechanical advantage over ideal mechanical advantage –Wikipedia
Do more with less – implied statement from your boss (and my favorite).
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Efficiency
Where is the term efficiency typically used?
Energy – A/C, Fridge, home, everything
Cars – mileage
Machines – production
Process – how many steps – Dr. Deming's favorite
Organizations – performance
People – no wasted time
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Efficiency
What can we do to improve efficiency?
Insulation – keep heat/cold in/out
Processes – repeatable
Schedules – documented
Computers – processing power
Smart phones – always connected?
Connect to everything – Internet of Things
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Internet of Things
The Internet of Things (IoT) is the network of physical objects, devices, vehicles, buildings and other items which are embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data.
Cognitive IoT: Making the Internet of Things deliver for all of us
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What’s Next
Assets telling us when we need to do things?
Work orders generated automatically?
We still need; Standard operating Procedures (Processes) Correct job plans, crafts, permits, safety plans,
spare parts, etc. Priorities Schedules based on availability Ability to track compliance Continuous improvement
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AKWIRE v Scheduler
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Availability = Efficiency
If we understand our workforce availability, we should be able to better schedule our work, which by default, will increase efficiency.
Daily/Weekly plans
Shutdowns
Who makes the assignments?
Who manages the work?
How does the work get into the technicians hands?
Feedback?
Compliance reporting?
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AKWIRE vCalendar
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Efficiency According to Doc Palmer; our work force does what we ask They feel busy at 35% because they are. If the job plan says 5 hours, that is how long it will take Instead of 3 work orders, can 4 be done?
Food for thought Is all work documented or planned? Is your system set up to understand availability? Are your planning and scheduling processes defined and
repeatable?
According to Dr. Demining; Put a good person in a bad system and the bad system wins,
no contest. If you can't describe what you are doing as a process, you
don't know what you're doing.
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Efficiency(Manager’s Perspective)
Work Force efficiency is a measure of how well our work force transfers hours into useful work. (What we ask them to do, not what we want them to do.)
Wrench Time (%) = (useful hours out ÷ total hours in) x 100.
When hours are transferred, some of the hours turn into forms we don’t want.
These hours are called wasted hours. Wasted hours takes the form of searching for parts, looking for instructions, getting permits and sometimes shooting the breeze. During any hour transfer, some hours are changed into waste. This waste becomes spread out into the environment. These wasted hours become increasingly difficult to use in future hour transfers.
In the end, all hours are captured as work
Total Hours In
Wasted Hours
Useful Hours Out
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Some Stats
Average “wrench time” (maintenance efficiency) is 25 - 35%. Leading practice is more than 60%
Maintenance Overtime – average is the US: over 14% (Leading practice: below 4%), Cause: reactive maintenance. Result: higher cost. Solution: better planned and scheduled maintenance work
Planned work versus unplanned work has a cost ratio of 1:5 – that is, unplanned work is 5x the cost of planned work; Why? All work has the potential for delays and will benefit
from historical analysis and planning Solution: Planning by experienced Crafts persons. Best
Practice: > 80% of all maintenance work is planned
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Let’s Look at the Numbers
10 Maintenance technicians 35% wrench time 140 hours of wrench time per
week
At 50% wrench time 200 hours of wrench time per
week
That’s a difference of 60 hours per week
No changes to processes No changes to systems to add 60 hours of wrench
time per week you need to add 4.3 technicians
What is the cost of adding 4.3 Technicians
Using the following example
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More Numbers
Lets do the Math
What is the cost of adding 4.3 techs?
You can’t add 4.3 so you need to go with 4 or 5 5 Number of techs
$45.00 Burdened Rate$25.00 Overtime Rate
2080 Standard Hours Per Year5.6 Overtime Hours Per Week
280 Overtime Hours Per Year$468,000.00 Cost of Standard Hours
$35,000.00 Cost of Overtime Hours
$503,000.00 Total Cost to add 4.3 Technicians
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Conclusion
Keep it simple
Know your processes
Understand work force availability
Weekly schedule vs daily schedule
Look for continuous improvement opportunities
“Extra” techs will be able to handle backlog and PMs to improve compliance
Measure
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Questions
Matt Midas Senior Account Executive,
Manager of Sales, North America [email protected] 443.285.3501
www.Solufy.com
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