Transcript No Slide Title

Reliability and Maintenance
Excellence – What It Takes to
Compete in a Global Marketplace
Lloyds Register Safety Driven Performance
October 10, 2013
Jim Feeney, RAM Study Senior Consultant
Gary Fuller, RAM Study Senior Consultant
HSB Solomon Associates LLC, Dallas, TX
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Introduction
The Reliability and Maintenance (RAM) profession has
experienced more progress in the past 5 years than at
anytime in the past half-century as industrial facilities
are awakening to the benefits of reliability and
embracing the concept of failure-free operation
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Introduction
Practices that were once characterized as best practices have
become commonplace and no longer differentiate performance,
including…
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Planning
Scheduling
Preventive Maintenance
Computerized Maintenance Management Systems, etc.
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Introduction
Best performers in the 21st century ensure competitiveness by
employing all of the strategies in their RAM toolkit
 Computerized Maintenance Management System that meets
the needs of the end users
 Highly trained and knowledgeable workforce
 Optimized material supply chain
 Statistical analysis of failure data, etc.
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Introduction
However there are a select number of practices that enable
them to excel in a global marketplace, including…
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Comprehensive RAM strategic plan
Equipment criticality analysis
Reliable design of equipment and systems
Life-cycle procurement considerations
But most of all, a culture that embraces failure-free operation
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International Study of Plant Reliability &
Maintenance Effectiveness (RAM Study)
Study was
established
in 1996
Main focus is
Chemicals
and Refining
Over 1,000 sites
and 8,000
process units
in the database
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RAM Effectiveness Index (RAM EI)
• Solomon uses RAM Effectiveness Index (RAM EI) as the
primary measure of overall RAM performance
• RAM EI is the sum of
A (Value of lost production due to RAM causes) +
B (Maintenance Cost)
A
+
B
*RAM Effectiveness Index
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RAM Effectiveness Index
Histogram of Performance
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Number of Plants
60
50
40
30
20
10
0
0
1
2
3
4
5
6
7
8
9
10
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12
13
14
15
16
RAM Effectiveness Index, % of PRV
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Reliability & Maintenance Culture
• Behaviors are driven by the local culture
• There are two distinct cultures in the reliability and
maintenance community
 Traditional Culture – failures are inevitable
• Focus on being good at reacting
 Progressive Culture – failure-free operation is the objective
• Focus on failure elimination
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Traditional Culture: Firefighting
Problem
happens
(again)
Personnel respond
quickly, symptoms
fixed
Reactive work
culture
reinforced
People
involved
receive praise
and rewards
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Progressive Culture: Failure Elimination
Performance
Data Analysis
Time Delay
Reliability Improves
… Failures Eliminated
Improvement
Actions Defined
Time Delay
Improvement
Actions
Completed
Time Delay
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Traditional Versus Progressive
Top Performers Eliminate Surprises
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RAM Downtime, %
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14
12
10
8
6
4
2
0
Q1
Annualized T/A
Q2
Short Overhauls
Q3
Corrective Maintenance
Q4
Rate Reductions
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Strategic Plan – Traditional
• Focus on meeting short-term financial objectives
• Characterized by…
 Reluctance to invest in long-term success
 Unrealistically short return on investment
 Treatment of symptoms versus root causes (e.g., buy
another pump rather than solve the root cause of pump
failures)
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Strategic Plan – Progressive
• Focus on meeting long-term success of the business
• Characterized by…
 Willingness to invest in long-term success
(i.e., 5 years or longer)
 Investment in asset reliability
 Treatment of root causes to prevent a recurrence of a
problem or a failure
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Critical Equipment – Traditional
• Treat all equipment failures the same
• Characterized by…
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Failure to rank equipment criticality
Distraction caused by the many, non-critical trivial
Dysfunctional work prioritization process
Squeaky wheel gets the grease syndrome
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Critical Equipment – Progressive
• Focus on critical equipment
• Characterized by…
 A robust and disciplined work prioritization process
 Use of reliability-centered maintenance concepts
 Understanding of failure modes and effects before failure
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Strategic Plan/Critical Equipment
Better Performers Have a Comprehensive Multi-Year RAM
Strategic Plan and Identify Critical Equipment
100
Percent
80
60
40
20
0
Strategic Plan
Critical Equipment
First Quartile RAM EI
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Capital Projects – Traditional
• Focus on coming in on time and on budget…
 Low purchase price (equipment) and low construction cost
decisions (failure to design for maintainability)
 Project is complete when physical construction is done with
project team being released to their next project
 Leave operations and maintenance to figure out how to make
it work
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Capital Projects – Progressive
• Reliability focus from concept to startup
• Characteristics include…
 Reliability (availability) target being documented and utilized
to drive Engineering concept & design
 RAM personnel being an integral part of the project team
 Project team being invested in and committed to successful
production through sustainable operation at design rates
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Procurement – Traditional
• Low purchase price focus at the cost of reliable operation
• Characterized by…
 Purchasing decisions made in a vacuum
 Belief in “Saving a Buck” wins the day
 Introducing a new manufacturer’s products and equipment
without understanding the true cost and long-term impact
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Procurement – Progressive
• Focus on life-cycle cost
• Characterized by…
 A holistic understanding of the impact of equipment failure
 RAM personnel approving vendor/supplier lists
 A commitment to sustainable operation with corresponding
criteria for procurement decisions
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Organization – Traditional
• Focus on chain of command and organizational protocols
• Characterized by…
 An absence of employee empowerment
 Unmanageable craft ratios (i.e., craft to supervisor and
planner)
 Problem of too busy reacting—no time to think ahead
 Low employee morale and satisfaction
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Organization – Progressive
• Focus on eliminating non-value-added work
• Characterized by…
 Employee empowerment
 Troubleshooting/feedback from all levels of the organization
 Appropriate and publicized response to feedback
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Summary
• You are not a world-class refinery/chemical plant if
 Maintenance costs are above 1.4% of PRV
 Mechanical availability is below 96.7%
• Poor performers typically
 Attempt to shortcut the improvement process
 Primarily focus on cost reduction
• World-class performers
 Have basic work management and reliability processes
 Also have a progressive culture, organization, and strategy
• Organizations that embrace failure-free operation will be the
most competitive in a global marketplace
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Questions?
Thank You!
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Contact Information
Jim Feeney, RAM Study Senior Consultant
[email protected]
+1.972.739.1730
HSB Solomon Associates LLC
Dallas, TX
Gary Fuller, RAM Study Senior Consultant
[email protected]
+1.972.739.1816
HSB Solomon Associates LLC
Dallas, TX
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