Maintenancein ChinaSiveco China Newsletter June 2010

运营之争 始于维护

Foreword2 Lean & TPM: beyond the hype,

delivering sustainable results

Reliability3 AvoidingpitfallswhenimplementingTPMinChina5 Acontrarianapproachtomanagingmaintenance

Customer story6 Maintainabilityandreliabilityimprovementin theautomotiveindustrywithBYJC-Fabricom

Siveco partner7 AnintroductiontoSivecoValueAddedPartner

Program(VAPP)

COSWIN tips & tricks8 MeasuringOEEinCoswin

Latest news

ThisistheprintededitionofSivecoChina'smonthlyemailnewsletter"MaintenanceinChina".Tosubscribetotheelectronicversionofthenewsletterortoreadpreviousissues,pleaseregisteronlineatwww.sivecochina.com.本期内容另有中文版可供参阅

©Copyright2010,SivecoChina.Allrightsreserved.Noreproductionofanyarticlemaybemadeinwholeorinpartwithoutthewrittenpermissionofthecopyrightholder.

Special Lean

2 Foreword

Lean & TPM: beyond the hype, delivering sustainable results

Thetrendstartedseveralyearsago,butnowadayseverybodyistalkingabout"Lean".Notdenyingthebenefitsofthisapproach,which frommymaintenancepoint-of-view is nothingbut ageneralizationof theTPMprinciples, Iambynatureverywaryoftoday'sover-hypedconcepts.… Ialsotendtodeeplydistrustanythingthatinvolvesgurus.

Although"Lean"(anditscousin"Green")seemstobeabletogenerateanever-endingstreamofconsultingfeestoanincreasingnumberofcompanies,tomeitissimplycommonsenseappliedinasystematicmanner,i.e.exactlywhatSivecohasbeendoingwithmaintenanceimprovementforsomanyyears.Withacatch:howdoyou implementboththe"commonsense"and"systematic"aspectsinChina?Letmeexplain.

Inarecentinterviewonthesubject,thejournalistmusthavecaughtmeinabadmood,asIdeliveredafewmeanpunchesonleanpractitioners.ThisiswhatIsaid:

"Theconsultingbusiness is flourishingthesedays:whileanumberofmanufacturingexecutiveswho lost their job in thecrisishaveimprovisedthemselvesLeanManagementconsultants,foreigntrainingfirmshavealsosetupofficesinChina."

"Inspiteof theall therecentmarketinghype,experiencehasproventhattraining,organizationalchangesandothergoodadvicesprovidedbyconsultantsoftenfailtoproducesustainableresults: this is especially true in Chinawheremaintenancetechnicians lack relatedexperienceandcompanies facehighturnoverrates."

"Insharpcontrastwiththesefly-by-nightconsultantswhoarestilldiscoveringtheChinesemarket,Sivecohasformanyyearsbeendeliveringtangibleresults."

Toughwords,andcertainlyanover-generalization,but Ibelievethisstatement isanaccuratedescriptionofwhat Ihaveobservedaroundme.

In2006, Iwroteanarticle forShanghaiBusinessReviewentitled"Acontrarianapproachtomaintenance"that touchedonall these subjects already (thearticle is reprinted in thisnewsletter).Leanconsultantsaremakingallthesamebeginner'smistakes,whichpreventthemfromdeliveringsustainableresults.On theotherhand,here liesperhaps theverysecretof theirbusiness:makingcustomersdependentonconsultants,year inandyearout.Yesterday:MRPandTPM,today:LeanandGreen,tomorrow:somenewconcept,with itsgurus,books,workshopsandconsultants.

Therearesignsthatthefrenzyisfeedingonitsownfailuretodeliver: the fact thatmostprojects fail tobring resultshas

become thekey topicatmost LeanManufacturingandTPMevents inChina!Oneofourcustomers, leadingSino-AmericanpencilsmanufacturerAxus,presentedapaperontheirexperiencewithLeanat theGlobalLeanSummit inShanghaion June11.Thecatchphraseforthiseventwasthatamongcompaniesthatapplyleantools,"mostofthemhaveatoughtimetosustainwhattheyhadobtained"!OnJune18,yourstrulyandSivecowilltakepart inanotherconference,theChinaTPMSummit,alsoheld inShanghai.Theorganizers listedthefollowingasthekeyreasonforattendingtheevent:"EverysecondattemptedinstallationofTPMresults infailure"!Weseethissummitasanopportunitytoshowcaseourdifference!

Indeed,webelieve thatwehave at least someof theanswers,backedbya longexperienceof "maintenancewithChinese characterist ics". Our approach tomaintenanceimprovement is basedon theuseof concretemaintenancemanagementtools,namelyacombinationofVisualManagementpanels (toguidedailywork),CMMS(toensurethebuildupofconsistentmaintenancerecords,ontheanalysisofwhichtobaseimprovementdecisions)andmobilesolutions(to lettechniciansaccess technicalknow-howdirectly fromtheshop floor).Thistechnology-basedmethodhasprovenparticularlysuccessful inChina,providingrapidandsustainableresults,measurableinhardcurrency(RMB).

All thispromptedustoreleasethisspecial"Lean"editionofourmonthlynewsletter, inordertoactivelycommunicateonourexperience.Hereyouwon't readthemysticquotesofanyAmericanor Japaneseguru. Instead,wewill cover thebasicsofwhatwedo.The reprintof the2006article "Acontrarianapproachtomaintenance"elaboratesonthetopicsabove.OurreliabilitysectionfocusesonthepitfallsofTPMimplementationsinChina.Thecustomerstory showcasesoneofourhands-onprojectsonahighlyautomatedproductionlineintheautomotiveindustry.InTips&Tricks,dedicatedtoCMMS,wetalkaboutOEEmeasureswhoseimplementationoftenproveselusive.FinallywedetailourValueAddedPartnerProgramandlistsomeofourlatestnews.

Wishingyoua safe journeyon the road to sustainable,measurableimprovement!

Bruno Lhopiteau

General Manager

Siveco China

3Reliability

Avoiding pitfalls when implementing TPM in China

Companies trying to implementTPM inChina,usuallyasapartofacorporate roll-out, facespecific challenges,whichmaydiffer fromthoseobserved in Japanor in theWest,moredevelopedeconomieswherethoseinitiatives,ortheconsultantsinvolved,oftenoriginatefrom.

Maintenance jobs performed by operators, known as“autonomousmaintenance”,andmoregenerallytheinvolvementof production staff in the improvementprocess areoneofthekeyprinciplesofTPM.Oneof thebenefitsofasuccessfulTPM programwould be to help operators acquiremoreresponsibility, startingwithsimple jobssuchasdailycleaningrounds, lubrication, bolts tightening and various checks. Tothose daily care routines, other activities are later added, such astheproactivetagging,directlyontheequipment,ofproblemsdetectedbyoperatorsduring inspections–anexcellent tooltovisualizepoormaintenanceand itsconsequences.The finalstep consists in involvingproduction teams in analysis andimprovementsessions, fromwhichtheactualbenefitsofTPMwillderive.

Thisarticlewill lookat someof theChinesespecificitiesthat influencetheTPMprocess,asobserved inmanyprojectsconductedbySiveco,soastohelpindustrialmanagersavoidsomethepitfalls.

Understanding HR limitationsThe keywords for autonomousmaintenancemay be:

involvement,responsibility,andpro-activity–allwhichmaybeconsideredatoddswiththeHRsituation inmostcompanies…Thechallengeoftryingtochangeoldhabitsisobvious,althoughnotunique toChina. Specificobstacles exist, however, thatmake itmoredifficult forproductionworkerstoplaytheirrolein theTPMprocess, i.e. to share theirexperienceandknow-howofthemachines.Moreoftenthannot,inChina,workersarenotexperiencedenough:while theymayhave the theoreticalknowledgeinaspecificdiscipline,thehighturnoverrateandlackofmultidisciplinaryskillsmakes itmoredifficulttogainmasteryintheirequipment.

Although there is no instant solution to this problem,we could state theobvious:plans shouldbeput inplace toreduceturnoverand improvetheskill level.Themaintenanceimprovementplan itself, basedon TPMor not,will greatlycontribute to this (as noted in our article “A contrarianapproach tomaintenance”). In any case, these specif icconstraints shouldbe kept inmindwhen rollingout a TPMprogram.

Reducing breakdown rate before TPMBefore launching autonomousmaintenance activities,

it isnecessary tohave the failure rateof themachinesundercontrol,and ifpossiblerelatively low.Howtotransfer first linemaintenanceresponsibilitytooperatorsiftheequipmentisalwaysbreakingdown?Weoftenseemaintenancetechniciansworkingfull-timeonemergencymaintenance,alwaysontheshopfloorfixingmachines: insuchasituation,autonomousmaintenancecannotbeimplemented.

Instead, itmaybepreferable tostickwith thetraditionalorganizationandto focusonreducingthe failureratethroughpreventivemaintenance. This is evidently true for agingfacil ities,making TPM naturallymore applicable to newfactories.

Joint team at ZF Shanghai Steering

Implementing work feedback first When transferr ing part of themaintenance job to

production, thepreviousuniquenessof“memory” is lost: themaintenancedepartmentwasoncetheuniquedepositorofalltheplantknowledge,butnowthisknowledgeisspreadacrosstheorganization.Havingasysteminplacetocentralizetheknowledge,basedonworkfeedback,iscritical.Withoutsuchasystem,thereis a significant risk thatproductionandmaintenancedonotknowwhat theother isdoing.Ononehand,acomprehensivemaintenancerecordisanecessarytoolforfailureanalysis(moreonthatinthenextsection).Ontheotherhand,aworkfeedbacksystemwillallow,forexample,maintenancetechnicianstoknowthataquickfixwasappliedbyproductionoperators, inallgoodfaith,whichmayrequirefurtherattention.

运营之争 始于维护

4

WerecommendfocusingonWorkOrder (sometimesalsocalledJobRequest)tocapturethemostessential information.Thisprocesscanbegreatlysimplifiedusingpredefinedcheck-lists: symptom, failure type,downtime (exactvaluesmaynotevenbeneeded,e.g.operators couldchoosebetween5min,30min,2h,4h,8h+).UsingSiveco’smobile solutioneHand(1), this process becomes painless: employees are equippedwith smartphones, takepicturesof theproblem, select theinformation needed and can receive troubleshooting helpdirectlyfromacentraldatabase.

The most str ik ing benef i ts f rom any maintenancemanagementprogram, including TPM,will derive from thesystematicanalysisofhistoricalrecords.Experiencehasproventhat thiscanonlybeachievedwithaCMMS:paperandExcel-basedsystemssimplydonotallowpropertechnicalanalysisoveraperiod longerthanafewweeks.Realmeasurablebenefitwillcomefromimprovementdecisionsbasedonhistoricaldata.

Enabling maintenance improvementPlant improvement can only be carr ied out i f the

maintenance team, freedofpartof theirworkload (first-linemaintenancenowtransferredtooperators) isabletodedicatetheirefforts to it.When technicianswerebusy repairing themachines,thisprocesscouldnottakeplace.Ontheotherhand,iftechniciansusedtobelazyingaroundintheworkshop,TPMmaynothavebeentherightchoice.

It isessential formaintenanceworkerstounderstandthatthey shouldnow involve in, andbemeasuredon, reliabilityimprovement.This isnot like intheolddays,whentheycouldsleepintheworkshopwaitingforthenextbreakdown.

Themaintenanceteamhastobepreparedforthischange.Moreparticularly,itshouldacquiresomeofthekeymethodologiesandtoolsneededtoperformtheirnewwork:rootcauseanalysis,thedesignandimplementationofpreventivemaintenance,etc.ThebasicreportsandKPIshavetobeinplace(seeTips&TricksarticleaboutOEE,themostemblematicKPIofTPM).

In conclusion – a prerequisite to TPMInconclusion,TPMcanbeimplementedonlywhen:

·Thefailurerateisstableandpreferablylow

·Aworkordersystemisinplace

· Themaintenanceteamispreparedtotakeupanewrolededicatedtoimprovement

WhileTPMhasprovenverysuccessfulincountrieswithalong industrialhistory,wheremaintenanceengineersalreadyhadastrongmethodologicalbackground,Chinabringsitsownspecificchallenges. It isourexperiencethataTPMinitiativecannot succeedwithout those fundamentals – structure,methodologiesandtools. ImplementingaCMMShasproventobethemostefficientapproachtocreatesuchastructure,inasustainablemanner, inChina.This implementationwillhavetobedonebeforeoratthesametimeasTPMis introducedtothecompany.Formore insightsonthesubject, interestedreadersmayrefertotheotherarticle“Acontrarianapproachtomaintenance”.

Reliability

(1) Link: http://tinyurl.com/eHandEN

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亦有中文版可供参阅

5

A Contrarian Approach to Managing Maintenance

Reliability

Ten years in the Chinese industrial maintenance market have led Bruno Lhopiteau to observe that most MNCs face the same maintenance issues – and most try to apply standard western solutions.

“China is different.” I couldnot resist using the secretweaponofChineseargumentation.As farasmaintenance isconcerned, it is true thatChinaoffersendlessastonishmentto freshly-arrivedoverseasprofessionals.Dueto thecountry’sdevelopmentpace,priorityisusuallygiventonewinvestments,JVnegotiationsandtheconstructionofnewplants.Maintenanceisalong-termconcern,toooftenignoredattheinvestmentstage.

Economic realities andMNCs themselves are toblamefor this situation.We find that thebasic conceptofmodernmaintenancemanagement–preventivemaintenance,thepracticetomaintainequipmentbefore it breaksdown– is known intheory,butisfarfrombeingassimilatedintopractice.Backhome,thisconceptissecondnaturetoeverynewengineeringgraduate.Additionally, local engineersareoftenover-specializedand,hence, lack thecross-disciplinaryoverviewneededtomanagemaintenance. Icouldalsomentionthat fraudulentspare-partsprocurementpracticesarecommonplace,althoughmanagers,localsandforeignersalike,oftenchosetoignorethis.

Giventhesecircumstances, thenot-so-unexpectedeffectsappearafterafewyearsofoperation–whenpoorlymaintainedequipment starts tobreakdownandnomaintenance recordexists inareliableorexploitableform.Onlythen,willtheplant’sgeneralmanagerstart toworryabout theabysmally lowplantutilization(justwhenbusinessvolumeisupandfullcapacity isneeded), indirectcostsofdowntime(perhapsresultingin lossofbusiness),out-of-controlmaintenancecostsandtheimpossibilityofaccuratelyauditingthesituation(norecordingsystemisofteninplace).Atthisstage,recoverymeasuresbecomeverycostly.

Onthebrightside,Chineseengineersoftensurpass theirwesterncounterparts inkeyareas,suchastheeasyacceptanceofcomputerization intheirworkenvironment(themotivationalfactor prevails over the fear of being ‘monitored’) and awillingnesstoacquirenewskills.

Western Wisdom at WorkTimeandagain,expatmanagerapplytheprovenrecipeof

auditing (several times isbetter thanonce), training (bringontheexpensiveforeignconsultant),organise(andreorganise,andagain)and,envisionedasa last, finalstep,thecomputerizationofmaintenancemanagement. “Youshallorganisebeforeyoucomputerise” isoneof thegreatestcommandmentsdelivereduntowesternengineers,anditdoesindeedmakealotofsense.

Thisapproachhowevermeetsmanyproblems inChina.Nobody likesbeingaudited,havingtheirnoserubbed intotheirmistakes infrontofothers,especiallybysomeonewho“doesn’tknowChina.”Training ismorethanwelcomebut it takes timeto inculcate fundamentalconceptsofpreventivemaintenancetoengineerswhoalreadyhave several yearsof experience,whileyoungerengineersalsoneedtimetogainmaturity. It’sanexcellentapproach,butitwillhelpfiveyearslater,notnow.

In themeantime, any reasonably goodmaintenancemanagerwillhavebeenpoachedbyyourcompetitornextdooratdoublehiscurrentsalary.Atsomepointoftime,anexpensivecomputerisedsystemis introduced,whichafterseveralmonthsofintenseeffortswithanITconsultant,failsmiserablytobeusedatall.Allthiswhile,employeeshavelosttheirenthusiasm,astheimprovementplanshavedeliveredverylittleconcreteresult.Andithasnotevenbeenfun.

A Contrarian ApproachIadvocatenothing less than thecompleteopposite. Ina

nutshell,wehavefoundthatimplementingapropermaintenancestrategy, includingpreventivemaintenance, ‘onpaper’ isgoingtobeverydifficult.However,puttingtogether,asthefirststep,acomputerizedmanagementsystemwillachievemostofyourgoals–helpstructurethecompany,provideguidelineandtoolstobuildupahistoricalrecordofmaintenanceandallowauditinganddecisionsupport.The‘concrete’aspectofsuchasystemactsasacatalysttotheorganization,allowingittoshortcutmanyofthemoreconceptualsteps.Fine-tuningcanbeperformedlater,whenthebasicsareinplace.

Using this approach, small but tangible results canbeachieved inamatterofweeks,helpingyourstaffacquiregoodhabitsandtounderstand, inpractice, theconceptsofmodernmaintenance.Yourmanagementteamhasabasicaudit tool inplace,enablingittomakeimprovementdecisions.Therestwillallbederivedfromthat.

This isbynomeansaone-size-fits-allsolution,butyougettheidea.Now,goandimpressyourboardmembersbyproposingupside-down,contrariansolutions toyoureverydayproblems.And, remember, the“China isdifferent”catchphrasecomes inhandy.

Article first published in Shanghai Business Review

(www.sbr.net.cn) October 2006.

运营之争 始于维护

6 Customer story

Maintainability and reliability improvement in the automotive industry with BYJC-Fabricom

A state-of-the-art production line

TheAssemblyLineiscomposedof14standalone stations, each station capable ofproducingwithin a cycle timeof 22seconds.

Fabricom assembly line -The most advanced and sophisticated of its category

The main stations are:OP10/20/30:Axial rackandupperbodymanufacturingOP40:MainbodyandcrashtubeassemblyOP50:StrapassemblyOP60/70/80:TransmissionassemblyOP90:RadialrackfittingOP100:RoofbracketassemblyOP120:LeversubassemblyOP130:LeversubassemblyinsertionOP150:TestOP160:Packing

The projectSivecoengineersweredeployedonsite in less than two

weeksandworkedalongsideBYJC-FabricomandZFSSShanghaiteamsfrommi-July to theendofSeptember2008.TheSivecoteamwasoperationalafterashorton-the-jobtrainingperiod:alreadyfamiliarwithSiemensSimatictechnologyandKukarobots,theyassisted in thecommissioningandtroubleshootingof themachines.Sivecowasmorespecifically inchargeof reliabilityimprovement,maintenancepreparationandthetrainingofZFSSoperatorsandmaintenancestaff.

The following results were obtained:

· A s i g n i f i c a n t r e d u c t i o n i ncommissioningtimethroughtheprovisionof additional resources immediatelyoperationalontheproject.

·Over300technicalfailures,rangingfromcritical tobenign,were resolved.Root cause analysiswasperformedonapproximately50%ofthem, leadingtoasustainablereductionofthefailurerate.

· At the end of the project, theavailabilityoftheproductionlinereachedthecustomer’srequirementi.e.a90%availabilityrateandtakttimebelow23seconds.

· The linewasentirelydocumentedin theCOSWINMaintenanceSystem forhand-over tocustomer.All failureswererecorded into theweb-based system,ensuring complete traceability of thecommissioningandearlyoperationphase.

· Succes s fu l t ra i n ing o f Z FSSoperatorsandmaintenancetechnicians.

COSWIN as a support for engineers during commissioning

According to Thierry Dormois, General Manager of BYJC-Fabricom:

“Sivecowas able toquicklymobilizemulti-disciplinaryengineers,whosuccessfully integratedwithinourmulti-culturalteaminaveryshortperiodoftime.Underextremepressuretostartproduction,theinvolvementofSivecoensuredthatwemetourtargetintermsoflineavailabilityandmaintainability.”

Headded that: “SivecoChina’smanagement remainedinvolvedthroughouttheproject,sparingnoefforttoprovideZFSSandourselveswithvalue-addedadvicebeyondtheirjobscope.”

BackgroundBYJC - Fab r i com (www.by j c -

fabricom.com.cn) isa leadingsupplierofturnkeyautomatedassembly lines,primarily targeting the automotiveindustry. A joint-venture betweenBeijingNumber1MachineToolPlant(BYJC) and Fabricom (a specializedsubsidiaryofengineeringgiantGDFSUEZ)thecompanyboastsanexcellenttrackrecord inChinawithcustomerssuch as BMW, Chery Automobile,Danfoss,Delphi,DongfengPeugeotCitroen, FAW, Hangzhou NationalPanasonic,QingdaoHaier, Siemens,Valeo,Visteon,ZF,etc.

In2008,FabricomwascontractedbyGermanautomotive supplier ZFGrouptosupplyanewstate-of-the-artproductionlineforthemanufacturingof steering columns. The same linewastobedeliveredtothreeZFgloballocations (Hungary, China and theUS). InitiallymeanttofollowthefirstinstallationinHungary,thusbenefitingfrom the experience, the Chineseprojectwas in factconductedalmostsimultaneously,notasmallchallengeconsidering the complexity of theline and the level ofmulticulturalcooperationrequired.

Facedwithtightdeadlines,basedon theproduction commitmentsofZF Shanghai Steering (ZFSS), BYJC-Fabricom selected Siveco China toassist in the commissioning stageof theproject inorder tomeet thecontractualreliabilityrequirements.

7Siveco partner

An introduction to Siveco Value Added Partner Program (VAPP)

After a series of articles featuring various Siveco partners in the previous issues of the newsletter (ABB in March, Areva 01-db Metravib in April, Terranova Telecom in May), we have this month chosen to highlight our partner strategy to both our customers and potential partners. Partners’ articles will start again from the next issue, with a continued emphasis on solutions and case studies.

The Valued Added Partner Program (VAPP)SivecoChina’sValueAddedPartnerProgramwas initially

launchedin2007.TheprogramaimsatprovidingbetteraccesstoSiveco'swell-recognizedmaintenanceimprovementsolutionsforcustomersacrossregionsandindustries.VAPPistailoredtooffersignificantprofit-sharingopportunities topartnerswithstrongexpertiseintheirindustrialorgeographicalareas.

Value Added Partners wi l l work alongside Siveco'sPartnerSupport team, located inShanghai,both forsalesandimplementation.Customersbenefit fromthe improvedsupportcapability,widergeographicalcoverageandbetter integrationwithlocalthird-partysolutions,basedonSiveco'swell-recognizedsoftwareplatform.TheVAPPincludesacomprehensivetrainingandcertificationprocess.Partnerseminarsand jointmarketingeventsareregularlyorganized.

While,eventoday,mostprojectsarestillhandleddirectlybySiveco,the introductionofawell-structuredmaturepartnershipmodelwasareflectionofthesuccessfulgrowthofthebusinessaswellasofSivecoChina’sfutureambitions.This iswhatBrunoLhopiteau,GMof Siveco China, explainedwhenVAPPwaslaunched:

"Wehaveenteredthethirdphaseofourdevelopment inChina,aimedatcreatingan idealenvironmentforourpartnersto thrive.The firstphaseconsisted in localizingoursolutions.In the secondphase,wecreated strong referencecustomerswithinourthreetargetmarkets:namelyinfrastructures,facilitiesandmanufacturing.Bothour salesand technical teamshavebeenstrengthened.Wehavenowestablishedthebestpossibleconditions forourpartnerstodevelopbusinesswithusandtohelpcustomers'achievetheirassetmanagementobjectives.WecallthisapproachWin-Win-Win.”

A modest success, more to comeSince2007VAPPhasprovenmoderatelysuccessful.Siveco

hasestablished strong relationshipswith software suppliers,automationvendors, system integrators,aswellasconsultingcompaniesandengineeringfirms.

Mostnotably,throughpartnerships,SivecoChinahasmadeitsmarkinexportmarketswhereChineseconstructioncompaniesare involved.Previousnewslettershave featuredprojects inMalaysiaandSudan.SivecoChinateamsarecurrently involvedin fourAsiancountries,namelyChina,Malaysia (4projects),Indonesia(1project),Singapore(3projects)andisrespondingtotendersallovertheworld,onallcontinents.

Inadditiontoextendingthecompany’sgeographicalreach,VAPPhasfulfilledanotherofSiveco’soriginalobjectivesintermsof increasingitssolutionandservicescope.Amongpartnershipsalreadycoveredinpreviousnewsletter:

· ThecooperationwithTerranovaTelecomhasallowedSivecoChina todevelop itshighly innovative suiteofmobilesolutions,whilebeingable touseTerranova’s technologyandresources for large-scalemobiledeployments (field servicesolutionsscalableuptothousandsofmobileusers).

General Managers of Siveco and Terrova Telecom at a partner event

· TheABBpartnershiphasprovenveryfruitful intermsofskillscomplementarities–ABB’sstrongautomationexpertise,combinedwith Siveco’s uniquemaintenance and reliabilityconsultingexperience, gives the two companies a completelife-cycleapproach to infrastructureand industrial projects,yetunmatched inChina.Siveco’sCMMSCoswinhasalsobeenintegratedwithABB800xAplatform.

· The recently unveiled agreement with Areva 01-dbMetravib shows similar potential.While Coswin nicelycomplements01-db’s conditionmonitoring systems,Siveco’sconsulting resourcesalsoextend thecompany’s capability todeliverfull-servicereliabilitysolutionstoitsindustrialclients.

Threeyearssinceitslaunch,withsuccessesinbothextendinggeographicalcoverageandscopeofsolutions, it is in termsofbusinessdevelopment thatVAPPhasstillnotattained its fullpotential.TheChinesemaintenancemarket,stilllargelyundeveloped,ismaturingveryslowly:most localpartnershaveneverbeenexposedtomodernmaintenanceconcepts,makingitveryhardforthemtoconveythebenefitsofourprojectstocustomers.Business

运营之争 始于维护

continuing on page 11

8 COSWIN tips & tricks

Measuring OEE in CoswinNote that, although written for Coswin, most of this article is applicable to other CMMS.

Overall EquipmentEffectiveness (OEE) isoneof thekeyindicators of performance in themanufacturing industry.Originally part of the TPMportfolio,OEE is now commonlyused toassess the resultsof LeanManufacturing initiatives.The OEE ref lects the contr ibution of a l l p layers to theperformance of a production l ine and is easily used forbenchmarkingnotonlywithinanorganizationbutalsowithothercompanies.

Although typically not the first indicator Sivecowillrecommend(simpledowntimeandproduction losses indicatorsaremucheasiertograsp),weoftencomeacrosstherequirementtomeasureOEEintheCMMS.AsoftenwithTPM-relatedconcept,theword“OEE” itself isthoughttocarrymagicalpowers…“Wewant TPM” and “the system should calculate theOEE” arerequestswehearregularly,showinga lackofunderstandingoftheunderlyingconcepts.Sadly,mostsoftwaresupplierswillbeprompttorespond:“wehaveOEE”!

AtSiveco,magic is clearlynot inour scopeofbusiness.Insteadwe focusonhands-on improvementprojectswhichinvolvearealunderstandingoftheindustry. Inthisarticle,wewon’tgotoodeepintotheories:instead,inthetraditionofthe“TipsandTricks” section,wewill focusonCoswin itself anduse the systemtoexplainwhatOEE isandwhat itsmeasureimplies.

A simple definition of OEEOEEandrelatedindicatorsareofficiallydefinedinvarious

standards, towhichwe invite interested readers to refer–theutilizationof standards is thebestway toavoidendlessdiscussions (forexampleEN15341; inapreviousnewsletterarticle (1)we talked about the application of standards inChineseprojects).

OEEisbestexplainedbyapicture:

Nowthatthedefinitionisclear,letusaskthekeyquestion.

Why would you want OEE in COSWIN?Probablythefirstquestiontoask:doesn’t theproduction

departmentalreadyprovideallthereportsandindicatorsrequired?ThismaybedoneusinganERPsystem,thoughmoreoftenthatnotitissimplyinExcel.MostofthedatarequiredtocompletetheOEEcomefromproductionanyway.Bylettingproductioncontinuetohandlesuchreports,themaintenancedepartmentcaninsteadfocusonimplementingmethodologiestosolvetechnicalproblems.Thisiswhatweobserveatmostcustomers’:ifawell-functioningproductionreportingsystemisalreadyinplace,perhapsitisnotworthchangingit.

Ontheotherhand,itwouldbenicetohavebothproductionandmaintenancedatainonesinglereport,tohelpyourteamseethecorrelationbetweenmaintenanceactivitiesandplantperformance.HavingOEEdata(atleasttheAvailabilitypart)inCoswinwouldallowmanagementtobetterassesstheimpactofmaintenanceactions.

Anothergood reason togetOEEmeasures fromCoswincouldbe that itwouldhelp identifydiscrepanciesbetweenproductionandmaintenancereports.Surprise!Suchdiscrepancyisverycommon, itsdegree reflecting thecommunicationgapbetweenoperatorsandmaintenance technicians.Thiswillbecoveredinthelastsectionofthisarticle.

All inallthedecisiontomeasureOEEinCoswinratherthaninwhateversystemproductionisusinghastobetakenbasedontheactualsituationonsite.Italsodependsonthelevelofmaturityof theorganization–a company strugglingwithpermanentemergenciesandnopreventivemaintenance iswelladvisedtofocusonthefundamentalsfirst.Generally,itmakesmoresenseintheprocessindustry(e.g.pulpandpaper,steelmaking,chemicalsetc.)thanindiscretemanufacturingi.e.thecloserthemaintenancedepartment istooperations,themoreinteresting itbecomestohaveOEE inCoswin.Processplantsarealsomoreautomated,allowingCoswintocollectdatadirectlyfromthecontrolsystem.

How to do it in COSWIN?TobeabletocalculateOEEinCoswin,itisnecessarytoinputallthe

datarequired.Fromthemaintenancepointofview,themostimportantistoobtaintheRunningTimeorPlannedProductionTime(=RunningTime–PlannedDownTime)fromproduction.

Inpractice,usingCoswin,specifically-designedmetersareused,forexampleforPlannedProductionTime.Metersshouldbecreatedattheright level intheequipmentstructure, i.e.whereitmakessensetoevaluatetheOEE,typicallyatproductionlinelevel.Themetershouldbesetas"non-cumulative".Inputwillbeperformedmanually foreachmeter,basedonpaperrecords.Downtime isreportedasusualthroughworkorders,togetherwithdefectcode,symptom,causeandaction.TheOEE,fromtheavailabilitypoint-of-viewcanthenbecomputedbyCoswinbyapplyingtheformula:

OEE(A)=(∑PlannedProductionTime-∑Downtime)

∑PlannedProductionTime

Thiscanbedoneeitherinareport,asaKPI,oreventhroughabackgroundprocessthanwillautomaticallyupdateafieldinthe

RUNNINGTIMEEQUIPMENTFAILURE

(BREAKDOWN)AVAILABILITY

SETUP&ADJUSTMENT

IDLING&MINORSTOPS

REDUCEDSPEED

DEFECTSINPROCESS

REDUCEDYIELD&STARTUPLOSSES

PLANNEDPRODUCTIONTIME

AVAILABILITY × PERFORMANCE × QUALITY RATE

PLANNEDDOWNTIME

QUALITYLOSSES

SPEEDLOSSES

DOWNTIMELOSSESGROSSOPERATINGTIME

NETOPERATINGTIME

VALUABLEOPERATING

TIME

EQUIPMENT 6 BIG LOSSES

PERFOR MANCE(SPEED)

QUALITY

OEE =

OVERALL EQUIPMENT EFFECTIVENESS

9COSWIN tips & tricksCOSWIN tips & tricks

运营之争 始于维护

equipmentwindow(“topographicaldetails”).

There are threepossiblemethods to capture thedatarequired for thiscalculation:manual input,semi-manual inputandautomatedprocess.ThesamebasicsettinginCoswin,basedonmeters,isusedforallthreemethods.

Manual input

Manual input is thesimplestmethod,and the fastest toimplement:operatorshavetorecordallrelatedproductionvaluesonpaper,inpre-formattedsheets.Thosesheetsshouldbesimpleandhighlyvisual,requiringaslittlewritingaspossible.Forexamplemicro-stoppageswillbereportedbysticks(addingonemarkeverytimeanevent occurs: |, ||, |||, ||||, ||||for5etc.),onlylongerstopsrequiringarecordoftime.Attheendoftheshiftorperhapsonaweeklybasis,thedataistheninputmanually intoCoswin.EasilyapplicabletotheavailabilitycomponentofOEE(whichrequiresonlyreportingofPlannedProductionTimeanddowntimes),itcanalsobeextendedtoperformanceandquality,inwhichcasethedatainputprocesscanbecomeveryfastidious.Thefollowingsectionwillfocusonavailability.

Quickandcheap,thissolution isontheotherhandtime-consuminganderror-prone: it is thusdifficult toensure theaccuracyofdata.BasedonourexperiencewithfactoriesinChina,it,however,oftenprovestobethebestsolution.

Semi-automatic input

Bythistermwedenoteadirectinputintoacomputerwithasimplifieddisplay,locatedontheshopfloor:forexampleatouch-screendevicewitheasyinputusinglargebuttons.WhilethiscanbedoneinCoswinitself,usingdiagrams,specializeddeviceswouldmorelikelybeused.Simplecontrolsystemscancapturedowntimedirectlyfromthemachine,theoperatorthenhavingonlytoselectthecauseofstoppageonthetouch-screenpanel.Untilthecausehasbeeninput,thesystemcanpreventtheoperatorsfromrestartingthemachine.SivecopartnerPCVue,withitsPlantVueHMItechnology,canprovidesuchasolutionintegratedwithCoswin(PCVuewillbefeaturedinacomingnewsletter).

Thisapproachcontrastswiththepurelymanualmethodbyitsease-of-useforoperatorsandthereliabilityofthedataobtained.Consideringthehardwareinvestmentinvolved,itmakesmostsenseformachinesalreadyequippedorfornewautomatedproductionlines,inwhichcaseitisrecommendedtoliaisewithourteamsasearlyaspossible.Notethatthismethodisstillpartlydependentoninputbyoperators.

Automatic input

Thethirdoption,fullyautomatic, isbasedontheutilizationofacontrolsystemtocaptureallnecessarydatadirectlyfromthemachine.Consideringthelargeinvestmentrequired,thisapproachismostcommonlyappliedtolargeprocessplants,suchaspapermills,whereDCS-basedsolutionscontinuouslycaptureproduction,downtimeandqualitydata.Data is thentransferredtoCoswinusingstandardinterfacetables(varioustechnologiescanbeuseddependingonthethird-partysystemsinvolved).ThebesttimetoimplementsuchasolutioniswhentheDCSisbeingsetup.

Whilethefirstmethodisusuallyrecommendedforitssimplicity,thesemi-automaticapproachmaybesuitableforlargecomplexdiscreet

manufacturingplants,andtheautomaticsolutioniswellsuitedforfully-automatedprocessplants.AllthreearebasedonCoswinmeters.

A few more tips and a conclusion· OEEdoesnotreflectthe linkbetweenPerformanceand

Quality:ittreatsthemindependently,whileinrealityitmaynotbetruebasedontheteam’sexperience("Weknowwecan'trunthelineover500units/minotherwisethescrapratiowillbetoohigh").

·OEEpenalizesvariabilityamongstitsubcomponents(Availability,Performance,Quality).Forexample:20%x80%=16%,and50%x50%=25%whichdoesnotnecessarilyreflectanindustrialreality.

· OEEdoesn't take inaccount the fact thatunscheduledstoppagesaremuchmorepainful (andcostly) thanscheduledstoppages.Ittreatsthemequally.

· WedonotrecommendfollowingtheOEEforthewholeplant(withtheexceptionofprocessplants,whereoneplantisinfactone largemachine). Ifyoureallyhaveto, it ispreferablytotaketheaverageOEEofalltheproductionlines.

·OEEcannotbebelowzero!IftheCMMSsaysitis,itmeansthat thesamedowntimewasreported inseveralWorkOrdersorthatyouarenotcalculatingyourOEEattheright level inthestructure.Ourconsultantcanhelponthis,throughaudit/coachingsessions(typically1-3daysofservices).

· Discrepanciesbetweenproductionandmaintenancerecordsarecommon.ThisremainsthebestreasontoimplementasingleOEE(whetheritisdoneintheproductiondepartment’sExcelsheetorinCoswindoesnotreallymatter)basedoninputsofPlannedProductionTimeandWorkOrdersbytherespectivedepartments.Coswinwillalsobeabletocomputeotherindicatorsbasedontheseinputs,suchasMTBF,whichremindsusthatOEEisjustoneofthemanyindicatorsavailabletoindustrialmanagerstoimprovetheplantperformance.

Alwayskeep inmindthat theOEE isastrategic indicator,reflectingtheutilizationofinvestedassets.Fromtheoperationalpointofview,whatmattersistheevolutionoftheOEEandtheanalysisofcauses,inordertodetermineandimplementimprovement.

OEE as a KPI in COSWIN’s Cockpit

(1)Link: http://tinyurl.com/sivecostandardsEN

10 Latest news

Siveco unveils eHand mobile solution at the Expo 2010's International Association of Public Transport (UITP) pavilionMay22,2010

SivecoChina, thecountry's largestmaintenance consultancy, off ic ia l lyannouncedthereleaseofitseHandmobilesolutionduringaFrenchtradedelegationvisit to the InternationalAssociationofPublicTransport (UITP)pavilionatExpo2010.

The smartphone-based solutionfeaturesahighly intuitiveuser interface,

designedtoassistmaintenancetechniciansworking in the field by providing easyaccess to a central technical database, aswellasdiagnosisandexpertsupport.Ent irely developed in China, eHandcomplementsexistingSiveco solutions:theCoswinmaintenancemanagementsystemandknow-howsharingplatformMtv.eHandisalsocompatiblewithother

maintenance systems available in themarket.

"I amproud to unveil the eHand,theresultofa two-yearR&Dprojectweinitiatedattheworstofthefinancialcrisis"declaredBrunoLhopiteau,SivecoChinaGeneralManager,who demonstratedtheuseofeHand to inspect the facility.Headded:"Thesolutionprimarily targeturban infrastructures and field servicecompanies, with amobileworkforceoperating over a large area. eHand isalreadyusedbyour ownengineers tocarryoutfacilityassessmentservicesandwillsoonbeimplementedbyourcustomerGreatWallPropertyGroup,a leadingFMservicesupplier inShenzhen.IamgladtosaythateHandwasshowcasedearlierthisweekattheMetroChina2010showandreceivedexcellentfeedbackfromvisitors."

TheannouncementwasfollowedbyaQ&Asessionwiththemediapresent.

Saint-Gobain Pipelines implements COSWIN in its Xuzhou manufacturing baseMay7,2010

HavingworkedwithSiveco for themaintenanceof itsMaanshan (Anhui)plants for several years already, Saint-GobainPipelineshasdecided toextendtheusageof theCOSWINMaintenanceManagement System to i t s secondmanufacturingbaseofXuzhou, Jiangsuprovince.Theprojecthasalreadystartedand isexpectedtoprovideopportunitiesformaintenancebenchmarkingacrosstheseverallocations.

About Saint Gobain Pipelines

Saint-GobainPipelines (www.saint-gobain.com.cn), thepipenetworkbranchof the Saint-GobainGroup, is theworld’sleadingmanufacturerandexporterofductileironpipelinesystems.M o r e t h a n 1 1 5countries,1000citiesa round the wor ld ,approximately100ofwhicharecapitals,areequippedwith Saint-

Gobainpipeline systemswhich includepipes, fittings, valves, firehydrantsetc.Establishedin1997,Saint-GobainPipelines(China)ownsplants located inMaanshancity, Anhui Province and Xuzhou City,JiangsuProvince,producingductile ironpipes&fittingfrom100mmto1000mm,withacapacityof300,000tonsperyear.

11Latest news

运营之争 始于维护

development formost companies stillreliesonrelationshipandlowprice,notondeliveringmeasurablebenefits.

In order to better address thischallenge,and recognizing thata smallcompany likeSiveco, inspiteof itsgoodreputation, cannotexpect toacceleratethematurationofthemarket,SivecoChinahas started to “productify” itsoffering,bothservicesandthesupportingsoftware.By better packaging the deliverablesin products that partners can readily understand, the salesprocessbecomessimpler. Thiswill greatly enhance thecapabilityof local salespartners togetdealswithSiveco.

Ethics and trust, the foundation to al l our partnerships

IntrueChinesefashion,trustistheveryfoundationofourbusiness:trust,notbasedonexistingrelationships,butoncompetence(ourabilitytoconvincecustomersanddeliverresults)andonastrongethics.Whenitcomestopartnerships,SivecoChina’sverydistinct

businessethicsstandsout.

Sivecoonlyappointspartnerswithastrongindustrialvalueaddedandcommitsto fullysupport them,whichalsomeansSivecowill never develop competingpartnerships. This philosophy is highlyrelevant to theChineseso-called“EAM”market (“EAM” being the termmostcommonlyusedbysoftwarecompaniestotalkaboutCMMS),wherecustomersoftensee several local companies competingwith each other, supplying the samesoftware.Moreoftenthannot,theoriginalvendor isnever tobeseenbycustomer,leaving its local partner to handle the problems.Almostinevitably,ablame-gamewill start,where local partner blamesthe software supplier (“bugs”, “lackofsupport”,“tooexpensive,nomarginleftforus”),softwaresupplierblamesitspartner(“lackofskills”,“toomuchdiscount”)orevenitscustomer(“notmatureenough”iswhatwehearmostoften!).Partnerssuffergreatlyinthismodel,competingwitheachotheronpriceandrelationship(thekindofrelationshipthatcomeswithacost,stilltoocommon inChina),which in severalcaseshasevenledtobankruptcies.

ThesuccessofSivecoChina isalsobased on this strong ethics, onwhichwewillnevercompromise,valueswhichshouldbesharedbyourpartners.

TheVAPP strategy,with its latestadditionto“productify”ouroffering forsalespartners,hasproven itsworth.Theyears tocomewill certainlyseea fasterdevelopmentof SivecoChina’s indirectbusiness.

For more details of the different levels of partnerships available, please contact our VAPP

manager at vapp@sivecochina.com.

Formorelatestnews,seehttp://tinyurl.com/siveconewsEN

Following its success in China, Essilor selects COSWIN for its Brazilian factory

May21,2010

EssilorDaAmazonia (EDAM), theBraziliansubsidiaryoftheworld leader incorrectivelenses,haschosentheCOSWINMaintenanceManagement System tounite themanagementof itsplantsandlaboratories.COSWINreplacesanobsoletesystemandwill support the company’smaintenanceimprovementprojects.

AsEssilorChinahasbeensuccessfullyusingCOSWINsince2008initsfactorylocatedinShanghai’sSongjiang industrialdistrict,thisnewdealdemonstratesSiveco’sabilitytodeliverlargemultinationalprojectsandtoretainloyal,satisfiedclients.

Inaddition to the resultsobtainedin China, theother keydifferentiatorsmotivating Essilor ’s decisionwere thesoftwarecapability toprovide standardKPIsandanalysisreports,andtheextensivepossibilities it provides to customizescreensandnavigationdiagrams.

AnimportantpartoftheprojectistheintegrationwithOracleERPApplications,basedonstandardSivecotools:theinterfacecoversstockitemsmanagedinOracleandtheirutilizationinCOSWIN’sWorkOrders.Thescopeof interfacingissimilartowhathasbeenimplementedinChina.

About EssilorTheworldleaderinophthalmicoptical

products,Essilor Internationalresearches,develops,manufacturesandmarketsaroundtheworldawiderangeoflensestoimproveandprotecteyesight. Its flagshipbrandsareVarilux®,Crizal®,Essilor®,Definity®andXperio™.Based inFrance, thecompanyreportedconsolidatedrevenueofmorethan€3.2billionin2009,with34,700employeesandoperationsin100countries.TheEssilorsharetradesontheNYSEEuronextParismarketandisincludedintheCAC40index.

For more information, please visit www.essilor.com.

continuing from page 7

Siveco at a partner event

B share

C improveA capture

D deliver

the lean technicianSiveco provides a suite of mobile solutions offering support for the “worker of tomorrow”. Running on Tablet PC or Smartphone, the solution works with any back-office maintenance management system (Coswin, Maximo, SAP, Datastream etc.).

Contact us for more.

Tel: +86 21 6440 3226 Email: info@sivecochina.com

Fax: +86 21 6440 0670 Web: www.sivecochina.comSiveco China