Uptime Strategies for Excellence in Maintenance Management By: John Dixon Campbell Uptime Strategies...

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UptimeUptimeStrategies for Excellence inStrategies for Excellence inMaintenance ManagementMaintenance Management

By: John Dixon CampbellBy: John Dixon Campbell

UptimeUptimeStrategies for Excellence inStrategies for Excellence inMaintenance ManagementMaintenance Management

By: John Dixon CampbellBy: John Dixon Campbell

ARE 524Facilities Maintenance Management

November 11November 11thth, 2003, 2003

Prepared By:Prepared By:KAMAL A. BOGES # 210321KAMAL A. BOGES # 210321

InstructorInstructorDr. ABDULMOHSEN AL-HAMMADDr. ABDULMOHSEN AL-HAMMAD

Measuring and Benchmarking Measuring and Benchmarking PerformancePerformance

Section 5Section 5

Measuring and Benchmarking Measuring and Benchmarking PerformancePerformance

Section 5Section 5

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ProcessProcess

ReengineeringReengineering

Continuous Improvement

Quantum Leaps

Control

Leadership

World Class Maintenance

Plan andPlan andScheduleScheduleTacticsTacticsMeasuresMeasuresData Data

ManagementManagement

TPMTPMRCMRCM

StrategyStrategy ManagementManagement

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OUTLINEOUTLINEOUTLINEOUTLINE

INTRODUCTIONINTRODUCTION MEASURING MAINTENANCE PRODUCTIVITYMEASURING MAINTENANCE PRODUCTIVITY

EQUIPMENT MAINTENANCE MEASUREEQUIPMENT MAINTENANCE MEASURECOST MAINTENANCE MEASURECOST MAINTENANCE MEASUREPROCESS PERFORMANCE MEASUREPROCESS PERFORMANCE MEASURE

BENCHMARKING MAINTENANCEBENCHMARKING MAINTENANCE FACTS AND FINDINGSFACTS AND FINDINGS

INTRODUCTIONINTRODUCTION MEASURING MAINTENANCE PRODUCTIVITYMEASURING MAINTENANCE PRODUCTIVITY

EQUIPMENT MAINTENANCE MEASUREEQUIPMENT MAINTENANCE MEASURECOST MAINTENANCE MEASURECOST MAINTENANCE MEASUREPROCESS PERFORMANCE MEASUREPROCESS PERFORMANCE MEASURE

BENCHMARKING MAINTENANCEBENCHMARKING MAINTENANCE FACTS AND FINDINGSFACTS AND FINDINGS

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INTRODUCTION - 1/2INTRODUCTION - 1/2INTRODUCTION - 1/2INTRODUCTION - 1/2

““What gets measured gets done” Tome Peters What gets measured gets done” Tome Peters (Management Expert). But what is measured and how (Management Expert). But what is measured and how done it is a critical decisiondone it is a critical decision

For businesses that run on, large sophisticated For businesses that run on, large sophisticated equipment and facilities, maintenance performance has equipment and facilities, maintenance performance has a dramatic impact on overall capacity and costa dramatic impact on overall capacity and cost

Measuring that performance, though, is often solely Measuring that performance, though, is often solely based on:based on:

Trade people and materials, or Trade people and materials, or It’s wading through a modular of terms ( Mechanical It’s wading through a modular of terms ( Mechanical

system)system) Ratios like maintenance cost over plant replacement valueRatios like maintenance cost over plant replacement value

““What gets measured gets done” Tome Peters What gets measured gets done” Tome Peters (Management Expert). But what is measured and how (Management Expert). But what is measured and how done it is a critical decisiondone it is a critical decision

For businesses that run on, large sophisticated For businesses that run on, large sophisticated equipment and facilities, maintenance performance has equipment and facilities, maintenance performance has a dramatic impact on overall capacity and costa dramatic impact on overall capacity and cost

Measuring that performance, though, is often solely Measuring that performance, though, is often solely based on:based on:

Trade people and materials, or Trade people and materials, or It’s wading through a modular of terms ( Mechanical It’s wading through a modular of terms ( Mechanical

system)system) Ratios like maintenance cost over plant replacement valueRatios like maintenance cost over plant replacement value

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INTRODUCTION - 2/2INTRODUCTION - 2/2INTRODUCTION - 2/2INTRODUCTION - 2/2

Therefore:Therefore: For productive maintenance; maintenance For productive maintenance; maintenance

productivity should be measuredproductivity should be measured To achieve maintenance strategy; strategic To achieve maintenance strategy; strategic

objectives and master plan should constantly objectives and master plan should constantly reviewedreviewed

To be competitive, compare the work done with To be competitive, compare the work done with other’s in same fieldsother’s in same fields

Learn from most successful competitorsLearn from most successful competitors

Therefore:Therefore: For productive maintenance; maintenance For productive maintenance; maintenance

productivity should be measuredproductivity should be measured To achieve maintenance strategy; strategic To achieve maintenance strategy; strategic

objectives and master plan should constantly objectives and master plan should constantly reviewedreviewed

To be competitive, compare the work done with To be competitive, compare the work done with other’s in same fieldsother’s in same fields

Learn from most successful competitorsLearn from most successful competitors

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1. MEASURING MAINTENANCE PRODUCTIVITY 1. MEASURING MAINTENANCE PRODUCTIVITY 1. MEASURING MAINTENANCE PRODUCTIVITY 1. MEASURING MAINTENANCE PRODUCTIVITY

Productivity is simply what get out compared to Productivity is simply what get out compared to what put in what put in

In maintenance, what you got is better equipment In maintenance, what you got is better equipment performance. What you put in is moneyperformance. What you put in is money

What’s needed is a handy, all-encompassing What’s needed is a handy, all-encompassing productivity ratio of equipment performance over productivity ratio of equipment performance over cost cost

Therefore, a breakdown for each component until Therefore, a breakdown for each component until a reasonable set of parameters to judge whether a reasonable set of parameters to judge whether the performance is good, bad, or indifferent the performance is good, bad, or indifferent

Productivity is simply what get out compared to Productivity is simply what get out compared to what put in what put in

In maintenance, what you got is better equipment In maintenance, what you got is better equipment performance. What you put in is moneyperformance. What you put in is money

What’s needed is a handy, all-encompassing What’s needed is a handy, all-encompassing productivity ratio of equipment performance over productivity ratio of equipment performance over cost cost

Therefore, a breakdown for each component until Therefore, a breakdown for each component until a reasonable set of parameters to judge whether a reasonable set of parameters to judge whether the performance is good, bad, or indifferent the performance is good, bad, or indifferent

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1. 1 Equipment Performance Measures – 1/41. 1 Equipment Performance Measures – 1/41. 1 Equipment Performance Measures – 1/41. 1 Equipment Performance Measures – 1/4

First of all, to ensure that an equipment is running, First of all, to ensure that an equipment is running, then should check for:then should check for: (Availability)(Availability) Available to use Available to use (Reliability)(Reliability) Working along before the next failure Working along before the next failure (Maintainability)(Maintainability) Average time it would be down for Average time it would be down for

repair and maintenancerepair and maintenance (Process rate)(Process rate) Operation compare to what it designed for Operation compare to what it designed for (Quality rate)(Quality rate) Production quality Production quality (Effectiveness)(Effectiveness) Performance improving vs. deterioration Performance improving vs. deterioration

First of all, to ensure that an equipment is running, First of all, to ensure that an equipment is running, then should check for:then should check for: (Availability)(Availability) Available to use Available to use (Reliability)(Reliability) Working along before the next failure Working along before the next failure (Maintainability)(Maintainability) Average time it would be down for Average time it would be down for

repair and maintenancerepair and maintenance (Process rate)(Process rate) Operation compare to what it designed for Operation compare to what it designed for (Quality rate)(Quality rate) Production quality Production quality (Effectiveness)(Effectiveness) Performance improving vs. deterioration Performance improving vs. deterioration

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IGN 1. Availability1. Availability – A measure of uptime, as well as – A measure of uptime, as well as

downtime. It is calculated as:downtime. It is calculated as:Scheduled time – All unplanned delaysScheduled time – All unplanned delays

Scheduled timeScheduled time

2. Reliability 2. Reliability - - A measure of the frequency of downtime, A measure of the frequency of downtime, or mean time between failures (MTBF). It is or mean time between failures (MTBF). It is determined by:determined by:

Total operating timeTotal operating time or or Total operating cycles (km, tons)Total operating cycles (km, tons)Number of failuresNumber of failures Number of failuresNumber of failures

3. Maintenance 3. Maintenance – A measure of the ability to make – A measure of the ability to make equipment available after failed, or mean time to equipment available after failed, or mean time to repair (MTTR). It is measured by:repair (MTTR). It is measured by:

Total downtime from failureTotal downtime from failureNumber of failureNumber of failure

1. Availability1. Availability – A measure of uptime, as well as – A measure of uptime, as well as downtime. It is calculated as:downtime. It is calculated as:Scheduled time – All unplanned delaysScheduled time – All unplanned delays

Scheduled timeScheduled time

2. Reliability 2. Reliability - - A measure of the frequency of downtime, A measure of the frequency of downtime, or mean time between failures (MTBF). It is or mean time between failures (MTBF). It is determined by:determined by:

Total operating timeTotal operating time or or Total operating cycles (km, tons)Total operating cycles (km, tons)Number of failuresNumber of failures Number of failuresNumber of failures

3. Maintenance 3. Maintenance – A measure of the ability to make – A measure of the ability to make equipment available after failed, or mean time to equipment available after failed, or mean time to repair (MTTR). It is measured by:repair (MTTR). It is measured by:

Total downtime from failureTotal downtime from failureNumber of failureNumber of failure


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IGN 4. Process rate4. Process rate – A measure of the ability to operate at a – A measure of the ability to operate at a

standard speed or cycle. It is measured by :standard speed or cycle. It is measured by :Ideal cycle timeIdeal cycle timeActual of failuresActual of failures

5. Quality rate 5. Quality rate - - A measure of the ability to produce at a A measure of the ability to produce at a standard product quality. It is determined by:standard product quality. It is determined by:

Quality productQuality productTotal product producedTotal product produced

6. Equipment Effectiveness6. Equipment Effectiveness– An overall measure that – An overall measure that considers uptime, speed, and precision. It is considers uptime, speed, and precision. It is measured by:measured by:

Availability X process rate X Quality rateAvailability X process rate X Quality rate

4. Process rate4. Process rate – A measure of the ability to operate at a – A measure of the ability to operate at a standard speed or cycle. It is measured by :standard speed or cycle. It is measured by :

Ideal cycle timeIdeal cycle timeActual of failuresActual of failures

5. Quality rate 5. Quality rate - - A measure of the ability to produce at a A measure of the ability to produce at a standard product quality. It is determined by:standard product quality. It is determined by:

Quality productQuality productTotal product producedTotal product produced

6. Equipment Effectiveness6. Equipment Effectiveness– An overall measure that – An overall measure that considers uptime, speed, and precision. It is considers uptime, speed, and precision. It is measured by:measured by:

Availability X process rate X Quality rateAvailability X process rate X Quality rate


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The value of any of these measures has a lot to do The value of any of these measures has a lot to do with how equipment was designed and built.with how equipment was designed and built.

Thus, the best test of an equipment performance Thus, the best test of an equipment performance is often its performance trend over time.is often its performance trend over time.

This will provide the feedback or changes in This will provide the feedback or changes in operating and maintenance practicesoperating and maintenance practices

The value of any of these measures has a lot to do The value of any of these measures has a lot to do with how equipment was designed and built.with how equipment was designed and built.

Thus, the best test of an equipment performance Thus, the best test of an equipment performance is often its performance trend over time.is often its performance trend over time.

This will provide the feedback or changes in This will provide the feedback or changes in operating and maintenance practicesoperating and maintenance practices

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1. 2 Cost Performance Measures - 1/31. 2 Cost Performance Measures - 1/31. 2 Cost Performance Measures - 1/31. 2 Cost Performance Measures - 1/3

In most businesses, it is difficult to obtain In most businesses, it is difficult to obtain accurate and relevant maintenance cost accurate and relevant maintenance cost information. Labor is charged through cost information. Labor is charged through cost centers and only significant materials centers and only significant materials expenditures are charged to the equipment. expenditures are charged to the equipment. Overhead cost bear little resemblance to reality, Overhead cost bear little resemblance to reality, since they’re allocated based on direct or since they’re allocated based on direct or operating labor operating labor

Accurate maintenance cost information is used Accurate maintenance cost information is used for two reasons:for two reasons:

1.1. Maintenance productivity can measured and managedMaintenance productivity can measured and managed

2.2. It promotes rational equipment decisions such as It promotes rational equipment decisions such as whether to repair or replacewhether to repair or replace

In most businesses, it is difficult to obtain In most businesses, it is difficult to obtain accurate and relevant maintenance cost accurate and relevant maintenance cost information. Labor is charged through cost information. Labor is charged through cost centers and only significant materials centers and only significant materials expenditures are charged to the equipment. expenditures are charged to the equipment. Overhead cost bear little resemblance to reality, Overhead cost bear little resemblance to reality, since they’re allocated based on direct or since they’re allocated based on direct or operating labor operating labor

Accurate maintenance cost information is used Accurate maintenance cost information is used for two reasons:for two reasons:

1.1. Maintenance productivity can measured and managedMaintenance productivity can measured and managed

2.2. It promotes rational equipment decisions such as It promotes rational equipment decisions such as whether to repair or replacewhether to repair or replace

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1. 2 Cost Performance Measures - 2/31. 2 Cost Performance Measures - 2/31. 2 Cost Performance Measures - 2/31. 2 Cost Performance Measures - 2/3

Maintenance cost accurse in the following Maintenance cost accurse in the following categories:categories: LaborLabor –– All the wages and benefits of the trades and All the wages and benefits of the trades and

temporary helperstemporary helpers MaterialsMaterials – – All the supplies, parts, components, All the supplies, parts, components,

repairable, consumables, and other items used by repairable, consumables, and other items used by maintenancemaintenance

ServicesServices – – All shops, engineering, facilities, and store All shops, engineering, facilities, and store warehousingwarehousing

Outside servicesOutside services – – All contracted services for HVAC All contracted services for HVAC maintenance, specialty services, training and consultantsmaintenance, specialty services, training and consultants

Technical supportTechnical support – – Supervision, planning, materials Supervision, planning, materials coordination, clerical, data entrycoordination, clerical, data entry

OverheadOverhead – – Other support functions such accounting, Other support functions such accounting, MIS, personnel, and for general utilities, facilities, and MIS, personnel, and for general utilities, facilities, and other general expenses normally allocatedother general expenses normally allocated

Maintenance cost accurse in the following Maintenance cost accurse in the following categories:categories: LaborLabor –– All the wages and benefits of the trades and All the wages and benefits of the trades and

temporary helperstemporary helpers MaterialsMaterials – – All the supplies, parts, components, All the supplies, parts, components,

repairable, consumables, and other items used by repairable, consumables, and other items used by maintenancemaintenance

ServicesServices – – All shops, engineering, facilities, and store All shops, engineering, facilities, and store warehousingwarehousing

Outside servicesOutside services – – All contracted services for HVAC All contracted services for HVAC maintenance, specialty services, training and consultantsmaintenance, specialty services, training and consultants

Technical supportTechnical support – – Supervision, planning, materials Supervision, planning, materials coordination, clerical, data entrycoordination, clerical, data entry

OverheadOverhead – – Other support functions such accounting, Other support functions such accounting, MIS, personnel, and for general utilities, facilities, and MIS, personnel, and for general utilities, facilities, and other general expenses normally allocatedother general expenses normally allocated

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1. 2 Cost Performance Measures - 3/31. 2 Cost Performance Measures - 3/31. 2 Cost Performance Measures - 3/31. 2 Cost Performance Measures - 3/3 It doesn’t always help to use maintenance cost in It doesn’t always help to use maintenance cost in

such generalized cost. Instead, It could be broken such generalized cost. Instead, It could be broken down in to: down in to: Specific areas Specific areas - - such as labor, materials, services such as labor, materials, services

and technical support, all of which influenced by and technical support, all of which influenced by area management and staffarea management and staff

Job or work order Job or work order –– For laborFor labor, materials, and services , materials, and services so the cost can be designated to a particular piece of so the cost can be designated to a particular piece of equipment and staffequipment and staff

Expense typeExpense type – – For labor, materials, and services to For labor, materials, and services to monitor trends in key parts, consumables, and monitor trends in key parts, consumables, and services services

It doesn’t always help to use maintenance cost in It doesn’t always help to use maintenance cost in such generalized cost. Instead, It could be broken such generalized cost. Instead, It could be broken down in to: down in to: Specific areas Specific areas - - such as labor, materials, services such as labor, materials, services

and technical support, all of which influenced by and technical support, all of which influenced by area management and staffarea management and staff

Job or work order Job or work order –– For laborFor labor, materials, and services , materials, and services so the cost can be designated to a particular piece of so the cost can be designated to a particular piece of equipment and staffequipment and staff

Expense typeExpense type – – For labor, materials, and services to For labor, materials, and services to monitor trends in key parts, consumables, and monitor trends in key parts, consumables, and services services

As with equipment performance, tracking cost As with equipment performance, tracking cost trends is more sensible than looking at individual trends is more sensible than looking at individual numbers or single averages numbers or single averages

As with equipment performance, tracking cost As with equipment performance, tracking cost trends is more sensible than looking at individual trends is more sensible than looking at individual numbers or single averages numbers or single averages

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1. 3 Process Performance Measures - 1/31. 3 Process Performance Measures - 1/31. 3 Process Performance Measures - 1/31. 3 Process Performance Measures - 1/3

Maintenance management is a business process. Maintenance management is a business process. The inputs are costs, the output is equipment The inputs are costs, the output is equipment performance. Between the two comes the complex performance. Between the two comes the complex job of making top performance.job of making top performance.

To manage an equipment right, following are some To manage an equipment right, following are some suggestions: suggestions: Emergencies Emergencies –– If a situation immediately and If a situation immediately and

negatively affects the safe, or customer value, both negatively affects the safe, or customer value, both amount and impact of emergency should be measuredamount and impact of emergency should be measured

Planned versus unplannedPlanned versus unplanned– – There should be little for There should be little for unplanned work. With accurate equipment histories, unplanned work. With accurate equipment histories, recurring repairs, and overhauls can be planned in recurring repairs, and overhauls can be planned in advance, particularly for critical equipmentadvance, particularly for critical equipment

Maintenance management is a business process. Maintenance management is a business process. The inputs are costs, the output is equipment The inputs are costs, the output is equipment performance. Between the two comes the complex performance. Between the two comes the complex job of making top performance.job of making top performance.

To manage an equipment right, following are some To manage an equipment right, following are some suggestions: suggestions: Emergencies Emergencies –– If a situation immediately and If a situation immediately and

negatively affects the safe, or customer value, both negatively affects the safe, or customer value, both amount and impact of emergency should be measuredamount and impact of emergency should be measured

Planned versus unplannedPlanned versus unplanned– – There should be little for There should be little for unplanned work. With accurate equipment histories, unplanned work. With accurate equipment histories, recurring repairs, and overhauls can be planned in recurring repairs, and overhauls can be planned in advance, particularly for critical equipmentadvance, particularly for critical equipment

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1. 3 Process Performance Measures - 2/31. 3 Process Performance Measures - 2/31. 3 Process Performance Measures - 2/31. 3 Process Performance Measures - 2/3 Schedule compliance Schedule compliance –– A good indicator of fire fighting in A good indicator of fire fighting in

the plantthe plant PM schedule compliance PM schedule compliance – – Doing the PM activities in Doing the PM activities in

probably the best and quickest way to improve equipment probably the best and quickest way to improve equipment performanceperformance

Work orders generated form PM Work orders generated form PM –– This can tell a lot about This can tell a lot about the thoroughness and effectiveness of the PM program. the thoroughness and effectiveness of the PM program. During inspection, some work related should be expected, During inspection, some work related should be expected, or the inspection is uselessor the inspection is useless

Urgent versus normal purchase requisitions Urgent versus normal purchase requisitions – – Another test Another test of maintenance planning. Maintenance knows a head what of maintenance planning. Maintenance knows a head what parts are requiredparts are required

Stores inventory turnover Stores inventory turnover –– Dividing the value of annual Dividing the value of annual issues by the on-hold value of stores. Any thing over 2 is issues by the on-hold value of stores. Any thing over 2 is likely goodlikely good

Stores stockouts Stores stockouts – – Indicated what are stocking and the Indicated what are stocking and the service level provided for the investmentservice level provided for the investment

Schedule compliance Schedule compliance –– A good indicator of fire fighting in A good indicator of fire fighting in the plantthe plant

PM schedule compliance PM schedule compliance – – Doing the PM activities in Doing the PM activities in probably the best and quickest way to improve equipment probably the best and quickest way to improve equipment performanceperformance

Work orders generated form PM Work orders generated form PM –– This can tell a lot about This can tell a lot about the thoroughness and effectiveness of the PM program. the thoroughness and effectiveness of the PM program. During inspection, some work related should be expected, During inspection, some work related should be expected, or the inspection is uselessor the inspection is useless

Urgent versus normal purchase requisitions Urgent versus normal purchase requisitions – – Another test Another test of maintenance planning. Maintenance knows a head what of maintenance planning. Maintenance knows a head what parts are requiredparts are required

Stores inventory turnover Stores inventory turnover –– Dividing the value of annual Dividing the value of annual issues by the on-hold value of stores. Any thing over 2 is issues by the on-hold value of stores. Any thing over 2 is likely goodlikely good

Stores stockouts Stores stockouts – – Indicated what are stocking and the Indicated what are stocking and the service level provided for the investmentservice level provided for the investment

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1. 3 Process Performance Measures - 3/31. 3 Process Performance Measures - 3/31. 3 Process Performance Measures - 3/31. 3 Process Performance Measures - 3/3

Process performance measure should be tailored Process performance measure should be tailored to the unique circumstances for each situationto the unique circumstances for each situation

For example; what are the causes of overruns and For example; what are the causes of overruns and poor equipment performance? There are many; poor equipment performance? There are many; from emergencies resulted from poor PM to quality from emergencies resulted from poor PM to quality problem due to lack of training problem due to lack of training

Process performance measure should be tailored Process performance measure should be tailored to the unique circumstances for each situationto the unique circumstances for each situation

For example; what are the causes of overruns and For example; what are the causes of overruns and poor equipment performance? There are many; poor equipment performance? There are many; from emergencies resulted from poor PM to quality from emergencies resulted from poor PM to quality problem due to lack of training problem due to lack of training

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1. MAINTENANCE PRODUCTIVITY - SUMMARY1. MAINTENANCE PRODUCTIVITY - SUMMARY 1. MAINTENANCE PRODUCTIVITY - SUMMARY1. MAINTENANCE PRODUCTIVITY - SUMMARY

Measuring maintenance productivity should Measuring maintenance productivity should carried though;carried though;

1.1. Equipment Performance MeasuresEquipment Performance Measures

2.2. Cost Performance MeasuresCost Performance Measures

3.3. Process Performance measuresProcess Performance measures

Finally, there could be another way to improve Finally, there could be another way to improve maintenance productivity, through customers by maintenance productivity, through customers by measuring response time. This affect ,generally, measuring response time. This affect ,generally, the maintainability and may result from; the maintainability and may result from; organization structure (i.e. centralized) or could organization structure (i.e. centralized) or could be getting the right parts form the warehousebe getting the right parts form the warehouse

Measuring maintenance productivity should Measuring maintenance productivity should carried though;carried though;

1.1. Equipment Performance MeasuresEquipment Performance Measures

2.2. Cost Performance MeasuresCost Performance Measures

3.3. Process Performance measuresProcess Performance measures

Finally, there could be another way to improve Finally, there could be another way to improve maintenance productivity, through customers by maintenance productivity, through customers by measuring response time. This affect ,generally, measuring response time. This affect ,generally, the maintainability and may result from; the maintainability and may result from; organization structure (i.e. centralized) or could organization structure (i.e. centralized) or could be getting the right parts form the warehousebe getting the right parts form the warehouse

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2. BENCHMARKING MAINTENANCE – 1/72. BENCHMARKING MAINTENANCE – 1/72. BENCHMARKING MAINTENANCE – 1/72. BENCHMARKING MAINTENANCE – 1/7

Definition: Is a tool with which an organization Definition: Is a tool with which an organization compares its internal performance to external compares its internal performance to external standards of excellence, and then act to close standards of excellence, and then act to close whatever gaps exit whatever gaps exit

Objective: To achieve the situation best in-class Objective: To achieve the situation best in-class performance through continuous improvementsperformance through continuous improvements

Contrary to popular belief, it is not just appraising Contrary to popular belief, it is not just appraising how competitors measure their performancehow competitors measure their performance

Rather it is looking behind those measures to the Rather it is looking behind those measures to the practices that produce them. It is about practices that produce them. It is about understanding which of those measures and understanding which of those measures and practices are critical to success and finding out practices are critical to success and finding out how performs best, regardless of industry sector how performs best, regardless of industry sector

Definition: Is a tool with which an organization Definition: Is a tool with which an organization compares its internal performance to external compares its internal performance to external standards of excellence, and then act to close standards of excellence, and then act to close whatever gaps exit whatever gaps exit

Objective: To achieve the situation best in-class Objective: To achieve the situation best in-class performance through continuous improvementsperformance through continuous improvements

Contrary to popular belief, it is not just appraising Contrary to popular belief, it is not just appraising how competitors measure their performancehow competitors measure their performance

Rather it is looking behind those measures to the Rather it is looking behind those measures to the practices that produce them. It is about practices that produce them. It is about understanding which of those measures and understanding which of those measures and practices are critical to success and finding out practices are critical to success and finding out how performs best, regardless of industry sector how performs best, regardless of industry sector

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The basic philosophy behind benchmarking is:The basic philosophy behind benchmarking is:

1.1. Operation acknowledgment, both its strengths Operation acknowledgment, both its strengths and its weaknessesand its weaknesses

2.2. Acknowledge of those industries excel at the Acknowledge of those industries excel at the maintenance process used in operation, maintenance process used in operation, including competitors, sector leaders and othersincluding competitors, sector leaders and others

3.3. Set challenging targets; incorporate best the Set challenging targets; incorporate best the practicespractices

4.4. Measure results and strive continually for Measure results and strive continually for superior performancesuperior performance

The basic philosophy behind benchmarking is:The basic philosophy behind benchmarking is:

1.1. Operation acknowledgment, both its strengths Operation acknowledgment, both its strengths and its weaknessesand its weaknesses

2.2. Acknowledge of those industries excel at the Acknowledge of those industries excel at the maintenance process used in operation, maintenance process used in operation, including competitors, sector leaders and othersincluding competitors, sector leaders and others

3.3. Set challenging targets; incorporate best the Set challenging targets; incorporate best the practicespractices

4.4. Measure results and strive continually for Measure results and strive continually for superior performancesuperior performance

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Example: A European microelectronics company Example: A European microelectronics company manufacturing chips for calculators for it self to manufacturing chips for calculators for it self to improve a production line’s reliability from 24 hrs improve a production line’s reliability from 24 hrs to 48 hrs within one year.to 48 hrs within one year.• The process could tolerate for extended production The process could tolerate for extended production

shutdowns but nor frequent interruptionsshutdowns but nor frequent interruptions• Quality losses expected at both shutdown and at Quality losses expected at both shutdown and at

startupstartup• Availability, or the time for shutdown, was less Availability, or the time for shutdown, was less

significant than how often they occurredsignificant than how often they occurred• The company expected tall orderThe company expected tall order• The company benchmarked with similar process at The company benchmarked with similar process at

Japan and found reliability there at 200 hrsJapan and found reliability there at 200 hrs• The goal of 48 hrs was suddenly irrelevant. With that, The goal of 48 hrs was suddenly irrelevant. With that,

the company couldn’t even attain paritythe company couldn’t even attain parity

Example: A European microelectronics company Example: A European microelectronics company manufacturing chips for calculators for it self to manufacturing chips for calculators for it self to improve a production line’s reliability from 24 hrs improve a production line’s reliability from 24 hrs to 48 hrs within one year.to 48 hrs within one year.• The process could tolerate for extended production The process could tolerate for extended production

shutdowns but nor frequent interruptionsshutdowns but nor frequent interruptions• Quality losses expected at both shutdown and at Quality losses expected at both shutdown and at

startupstartup• Availability, or the time for shutdown, was less Availability, or the time for shutdown, was less

significant than how often they occurredsignificant than how often they occurred• The company expected tall orderThe company expected tall order• The company benchmarked with similar process at The company benchmarked with similar process at

Japan and found reliability there at 200 hrsJapan and found reliability there at 200 hrs• The goal of 48 hrs was suddenly irrelevant. With that, The goal of 48 hrs was suddenly irrelevant. With that,

the company couldn’t even attain paritythe company couldn’t even attain parity

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Benchmarked must be critically important to Benchmarked must be critically important to customers, and the factors that affect the customers, and the factors that affect the organization’s successorganization’s success

Benchmarking maintenance makes sense only if Benchmarking maintenance makes sense only if it will bring real gain to the companyit will bring real gain to the company

Benchmarked must be critically important to Benchmarked must be critically important to customers, and the factors that affect the customers, and the factors that affect the organization’s successorganization’s success

Benchmarking maintenance makes sense only if Benchmarking maintenance makes sense only if it will bring real gain to the companyit will bring real gain to the company

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BENCHMARKING PROCECCES – 5/7BENCHMARKING PROCECCES – 5/7BENCHMARKING PROCECCES – 5/7BENCHMARKING PROCECCES – 5/7

During benchmarking process several factors During benchmarking process several factors should be kept in mind:should be kept in mind: Required information must be availableRequired information must be available Availability to glean enough from others innovations Availability to glean enough from others innovations

help competitive positionhelp competitive position Industry sector leaders could be excellent modelIndustry sector leaders could be excellent model Putting the obtained information in usePutting the obtained information in use It should be the driving force to improve maintenance It should be the driving force to improve maintenance

continuously and use it to help to achieve a shared continuously and use it to help to achieve a shared vision of excellence vision of excellence

During benchmarking process several factors During benchmarking process several factors should be kept in mind:should be kept in mind: Required information must be availableRequired information must be available Availability to glean enough from others innovations Availability to glean enough from others innovations

help competitive positionhelp competitive position Industry sector leaders could be excellent modelIndustry sector leaders could be excellent model Putting the obtained information in usePutting the obtained information in use It should be the driving force to improve maintenance It should be the driving force to improve maintenance

continuously and use it to help to achieve a shared continuously and use it to help to achieve a shared vision of excellence vision of excellence

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BENCHMARKING PROCECCES – 6/7BENCHMARKING PROCECCES – 6/7BENCHMARKING PROCECCES – 6/7BENCHMARKING PROCECCES – 6/7 Following is an example of benchmarking processFollowing is an example of benchmarking process Following is an example of benchmarking processFollowing is an example of benchmarking processStrategyStrategy

• Maintenance has a service attitude, with production being the customerMaintenance has a service attitude, with production being the customer• Maintenance has an evolving, strategic improvement planMaintenance has an evolving, strategic improvement plan• Production and maintenance are seen as partnersProduction and maintenance are seen as partners• Ongoing analysis of contractor services ensures competitivenessOngoing analysis of contractor services ensures competitiveness• Focus on business measure of maintenance effectivenessFocus on business measure of maintenance effectiveness

ManagementManagement

• Training needs and programmed are matched and evaluatedTraining needs and programmed are matched and evaluated• Maintenance teams are decentralized and autonomousMaintenance teams are decentralized and autonomous• Group incentives and individual recognitions are in placeGroup incentives and individual recognitions are in place• Performance for everyone is evaluatedPerformance for everyone is evaluated• All employees are involved in maintenance improvementAll employees are involved in maintenance improvement

SystemsSystems

• CMMS is implemented fully and upgraded frequentlyCMMS is implemented fully and upgraded frequently• Maintenance use the system regularly on the shop floorMaintenance use the system regularly on the shop floor• There are no duplicate or private systemThere are no duplicate or private system• Effectiveness and efficiency measures are understood by allEffectiveness and efficiency measures are understood by all

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BENCHMARKING PROCECCES – 7/7BENCHMARKING PROCECCES – 7/7BENCHMARKING PROCECCES – 7/7BENCHMARKING PROCECCES – 7/7 Following is an example of benchmarking measuresFollowing is an example of benchmarking measures Following is an example of benchmarking measuresFollowing is an example of benchmarking measures

MaintenanceMaintenance TypicalTypical

• Equipment Equipment • AvailabilityAvailability• ReliabilityReliability• Emergency response timeEmergency response time• PM schedule compliancePM schedule compliance• Supervision: Trades: Support rationSupervision: Trades: Support ration• CoverageCoverage• Planned/Unplanned hoursPlanned/Unplanned hours• Cost/Total operating costCost/Total operating cost

65%65%

95%95%

45 days45 days

10 minutes10 minutes

92%92%

1:15:21:15:2

24 hrs/5 day24 hrs/5 day

65:3565:35

12%12%

StoresStores TypicalTypical

• ValueValue• SKUsSKUs• TurnoverTurnover• Service levelService level• CoverageCoverage• StaffingStaffing• Stores issue/ total maintenance materialsStores issue/ total maintenance materials

$ 6,000,000$ 6,000,000

12,00012,000

1.81.8

91%91%

8 hrs/5 day8 hrs/5 day

44

48%48%

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3. FACTS AND FINIDINGS - 1/63. FACTS AND FINIDINGS - 1/6 3. FACTS AND FINIDINGS - 1/63. FACTS AND FINIDINGS - 1/6

E.I. Di Pont De Nemours &Co. has been E.I. Di Pont De Nemours &Co. has been benchmarking maintenance performance since benchmarking maintenance performance since 19871987

There are now more than 65 Du Pont plant in There are now more than 65 Du Pont plant in North America, South America, Europe, Japan North America, South America, Europe, Japan involvedinvolved

Du Pont believes that benchmarking sharpens its Du Pont believes that benchmarking sharpens its focus for improvement and quantifies its goalsfocus for improvement and quantifies its goals

Maintenance management in the company has Maintenance management in the company has been elevated to the importance it deservesbeen elevated to the importance it deserves

E.I. Di Pont De Nemours &Co. has been E.I. Di Pont De Nemours &Co. has been benchmarking maintenance performance since benchmarking maintenance performance since 19871987

There are now more than 65 Du Pont plant in There are now more than 65 Du Pont plant in North America, South America, Europe, Japan North America, South America, Europe, Japan involvedinvolved

Du Pont believes that benchmarking sharpens its Du Pont believes that benchmarking sharpens its focus for improvement and quantifies its goalsfocus for improvement and quantifies its goals

Maintenance management in the company has Maintenance management in the company has been elevated to the importance it deservesbeen elevated to the importance it deserves

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3. FACTS AND FINIDINGS – 2/63. FACTS AND FINIDINGS – 2/6 3. FACTS AND FINIDINGS – 2/63. FACTS AND FINIDINGS – 2/6

Recently, the benchmarking found:Recently, the benchmarking found: Japan and Europe use substantially more Japan and Europe use substantially more

contractors than UScontractors than US Japan spends less to maintain its investment, and its Japan spends less to maintain its investment, and its

productivity is higherproductivity is higher Japanese companies have less store investment with Japanese companies have less store investment with

higher turnover than Europe and US companieshigher turnover than Europe and US companies

Recently, the benchmarking found:Recently, the benchmarking found: Japan and Europe use substantially more Japan and Europe use substantially more

contractors than UScontractors than US Japan spends less to maintain its investment, and its Japan spends less to maintain its investment, and its

productivity is higherproductivity is higher Japanese companies have less store investment with Japanese companies have less store investment with

higher turnover than Europe and US companieshigher turnover than Europe and US companies

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General Motors Advanced Engineering group is General Motors Advanced Engineering group is another example. It conducted maintenance another example. It conducted maintenance benchmarking study in several industries. benchmarking study in several industries.

The objectives was to determine both the average The objectives was to determine both the average as well as the world class measures for key as well as the world class measures for key parameters.parameters.

Some of the interesting findings are:Some of the interesting findings are: More than half of all maintenance performed was More than half of all maintenance performed was

reactive. Whereas the world class perception was reactive. Whereas the world class perception was only 18% should be reactiveonly 18% should be reactive

PM averaged about 1/3 of the effort, with world class PM averaged about 1/3 of the effort, with world class at just under 50% of all activitiesat just under 50% of all activities

PM 13% of the total. Perceived world class was 35% PM 13% of the total. Perceived world class was 35% predictive activities, representing another major gap predictive activities, representing another major gap on actual performance to a vision of the world’s beston actual performance to a vision of the world’s best

General Motors Advanced Engineering group is General Motors Advanced Engineering group is another example. It conducted maintenance another example. It conducted maintenance benchmarking study in several industries. benchmarking study in several industries.

The objectives was to determine both the average The objectives was to determine both the average as well as the world class measures for key as well as the world class measures for key parameters.parameters.

Some of the interesting findings are:Some of the interesting findings are: More than half of all maintenance performed was More than half of all maintenance performed was

reactive. Whereas the world class perception was reactive. Whereas the world class perception was only 18% should be reactiveonly 18% should be reactive

PM averaged about 1/3 of the effort, with world class PM averaged about 1/3 of the effort, with world class at just under 50% of all activitiesat just under 50% of all activities

PM 13% of the total. Perceived world class was 35% PM 13% of the total. Perceived world class was 35% predictive activities, representing another major gap predictive activities, representing another major gap on actual performance to a vision of the world’s beston actual performance to a vision of the world’s best

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The International Iron and Steel Institute (ISSI) produced an The International Iron and Steel Institute (ISSI) produced an interesting benchmark study involving 17 of its membersinteresting benchmark study involving 17 of its members

It concluded that maintenance in steel industry is the third It concluded that maintenance in steel industry is the third highest cost after raw material and laborhighest cost after raw material and labor

Key recommendations to reduce these costs and improve Key recommendations to reduce these costs and improve effectiveness, based on best practice surveyed in the study, effectiveness, based on best practice surveyed in the study, were:were: Apply computerized maintenance mgt. systems to control Apply computerized maintenance mgt. systems to control

and analyze all aspects of performanceand analyze all aspects of performance Ensure full and active participation of maintenance people Ensure full and active participation of maintenance people

in the design , selection, and installation of new equipmentin the design , selection, and installation of new equipment Set higher maintenance standards for all workSet higher maintenance standards for all work Institute comprehensive conditioned-based monitoring and Institute comprehensive conditioned-based monitoring and

analyzinganalyzing Employ a well-trained, multi skilled work force, following Employ a well-trained, multi skilled work force, following

schematic planning and control of workschematic planning and control of work

The International Iron and Steel Institute (ISSI) produced an The International Iron and Steel Institute (ISSI) produced an interesting benchmark study involving 17 of its membersinteresting benchmark study involving 17 of its members

It concluded that maintenance in steel industry is the third It concluded that maintenance in steel industry is the third highest cost after raw material and laborhighest cost after raw material and labor

Key recommendations to reduce these costs and improve Key recommendations to reduce these costs and improve effectiveness, based on best practice surveyed in the study, effectiveness, based on best practice surveyed in the study, were:were: Apply computerized maintenance mgt. systems to control Apply computerized maintenance mgt. systems to control

and analyze all aspects of performanceand analyze all aspects of performance Ensure full and active participation of maintenance people Ensure full and active participation of maintenance people

in the design , selection, and installation of new equipmentin the design , selection, and installation of new equipment Set higher maintenance standards for all workSet higher maintenance standards for all work Institute comprehensive conditioned-based monitoring and Institute comprehensive conditioned-based monitoring and

analyzinganalyzing Employ a well-trained, multi skilled work force, following Employ a well-trained, multi skilled work force, following

schematic planning and control of workschematic planning and control of work

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The figure summarizes how each of the survey participants The figure summarizes how each of the survey participants compares against a maintenance cost benchmarkcompares against a maintenance cost benchmark

The figure summarizes how each of the survey participants The figure summarizes how each of the survey participants compares against a maintenance cost benchmarkcompares against a maintenance cost benchmark

0000 22 44 66 88 1010

1010

2020

3030

4040%%

Production (million tons/year)Production (million tons/year)

BenchmarkingBenchmarking

Maintenance costsMaintenance costsLiquid steel costsLiquid steel costs

ISSI Maintenance Costs BenchmarkISSI Maintenance Costs Benchmark

The benchmark was set as the mean minus one standard The benchmark was set as the mean minus one standard deviationdeviation

The benchmark was set as the mean minus one standard The benchmark was set as the mean minus one standard deviationdeviation

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A Coopers & Lybrand consulting study of the A Coopers & Lybrand consulting study of the hydroelectric generating industry in North America hydroelectric generating industry in North America camp up with benchmark statistics based on thirty camp up with benchmark statistics based on thirty utilities. As with IISI study, it averaged their results and utilities. As with IISI study, it averaged their results and subtracted 1 standard deviation for the benchmarksubtracted 1 standard deviation for the benchmark

Among the top five utilities, the average for each Among the top five utilities, the average for each parameter shows:parameter shows: Maintenance costs $1,500 per megawatt installed capacity Maintenance costs $1,500 per megawatt installed capacity

each yeareach year Generation availability of 95%, with forced outage at 2% and Generation availability of 95%, with forced outage at 2% and

planned outage at 3%planned outage at 3% Emergency work at less than 3%, with preventive work at Emergency work at less than 3%, with preventive work at

over 60%over 60%

A Coopers & Lybrand consulting study of the A Coopers & Lybrand consulting study of the hydroelectric generating industry in North America hydroelectric generating industry in North America camp up with benchmark statistics based on thirty camp up with benchmark statistics based on thirty utilities. As with IISI study, it averaged their results and utilities. As with IISI study, it averaged their results and subtracted 1 standard deviation for the benchmarksubtracted 1 standard deviation for the benchmark

Among the top five utilities, the average for each Among the top five utilities, the average for each parameter shows:parameter shows: Maintenance costs $1,500 per megawatt installed capacity Maintenance costs $1,500 per megawatt installed capacity

each yeareach year Generation availability of 95%, with forced outage at 2% and Generation availability of 95%, with forced outage at 2% and

planned outage at 3%planned outage at 3% Emergency work at less than 3%, with preventive work at Emergency work at less than 3%, with preventive work at

over 60%over 60%

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These examples illustrate that benchmarking These examples illustrate that benchmarking produces impressive results. Better to say produces impressive results. Better to say “What’s get measured and benchmarked, gets “What’s get measured and benchmarked, gets done best done best

These examples illustrate that benchmarking These examples illustrate that benchmarking produces impressive results. Better to say produces impressive results. Better to say “What’s get measured and benchmarked, gets “What’s get measured and benchmarked, gets done best done best

CONCLUSIONCONCLUSION CONCLUSIONCONCLUSION

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Thank YouThank You

Uptime Strategies for Excellence in Maintenance Management By: John Dixon Campbell Uptime Strategies...

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Transcript of Uptime Strategies for Excellence in Maintenance Management By: John Dixon Campbell Uptime Strategies...