Transcript Slide 1

Implementing and
Managing a Maintenance
Plan
The Maintenance Plan
Ken Henman
The Maintenance Plan
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What is a Maintenance Plan
Why have Maintenance Plan
How to develop a Maintenance Plan
Implementing and managing a Maintenance
Plan
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
2
What is a Maintenance Plan
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Part of the total effective management of
railcar assets
A structure under which railcar maintenance
and repair can be proactively managed
Allows for aggressive control of maintenance
costs and procedures
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
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Why Have a Maintenance Plan
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Meet regulatory requirements
Improve and sustain reliability
Risk management and loss control
Avoid opportunity loss
Sustain asset function
Sustain asset value
Maintenance of assets viewed as contributor
to business success
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
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How to Develop a Maintenance Plan
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Understand objectives
Understand responsibilities
Evaluate
Organize
Develop
Implement
Measure effectiveness
Re-evaluate
Adjust
May 23, 2008
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Maintenance Management Seminar
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Implementing and Managing a Maintenance Plan
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Establish a scope of work- SOW
Selection of repair facilities
Logistics and scheduling
Commence maintenance activities
Evaluate- leading and lagging KPI’s
Adjust
May 23, 2008
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Establish a Scope Of Work
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Objectives - State your intent
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List of specific cars involved
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Goals
Types of maintenance
Overall expectations
Individual, group or series
Repair scope
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Focus of repairs according to objectives
Applicable attachments (i.e. prints, schematics etc.)
Overall car condition and other repairs
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Maintenance Management Seminar
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Establish a Scope Of Work
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Responsibilities
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Maintenance responsible party
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Expectations of shop
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Who approves and pays the bills
Quality
Reporting
Estimating
Turnaround
Contact information
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Maintenance responsible party and shop
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Distribution of the Scope of Work
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Treat as a controlled document
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May 23, 2008
Titled and dated per latest revision
Confirmation of receipt and understanding by shop
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Maintenance Management Seminar
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Selection of Repair Facility
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Capacity
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Capabilities
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Meets quality and quantity expectations
Location
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Size suitable for level of performance and turn
around expected
Within boundaries of serving railroad without off line
transportation charges
Relationship
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May 23, 2008
Familiarity of service expectations
Agreements covering rates and material
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Maintenance Management Seminar
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Logistics and Scheduling Maintenance Activities
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Car service demands
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Loading schedule
Availability of railcars
Relationship of car location to shop(s)
Criticality of condition
Shop availability
Materials
May 23, 2008
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Maintenance Management Seminar
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Maintenance Activities
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Equipment inspection results
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Inspection summary or estimate as needed
Distributed to maintenance responsible party for
approval
According to SOW criteria
Adherence to stated objectives
Report of overall car condition
Estimate
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May 23, 2008
Per SOW
Within expectations
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Maintenance Management Seminar
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Maintenance Activities
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Approval of inspection summaries- estimates
In process inspections
Status reports
Completed car inspections
Track all warranties and claims
Equipment return to service
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
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The Scope of Work as a Living Document
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Inspection and repair results meet expectations
Flexible according to need
Revised as needed
Revisions distributed in controlled manner
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
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Maintenance Plan Evaluation-KPI’s
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Leading KPI - Indicators that measure
performance before problems arise
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EHMS exposure
Last major repair event
Lagging KPI - Historical information measuring
performance results
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According to budget
Reliability – effectiveness measure
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Reactive to proactive maintenance
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May 23, 2008
Maintenance costs to deliveries
Unplanned to planned maintenance
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Maintenance Management Seminar
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Evaluate-Leading KPI’s
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Periodic maintenance
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Component life cycle based maintenance
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Time or mileage based maintenance
According to known component life expectations
Equipment condition base
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According to baseline and periodic inspections
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Maintenance Management Seminar
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Evaluate-Leading KPI’s
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Estimated cost of repairs according to the
SOW
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EHMS exposure
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Relationship to budget and expectations – meets
objectives
Review current car information for open “Alerts”
Quality assurance
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May 23, 2008
Avoidance of rework
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Evaluate-Lagging KPI’s
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Quality control
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Tracking actual maintenance cost
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Estimate to final invoice audit
Final invoice to SOW
To budget
Gather information
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Avoid after repair rework
Equipment inspection and performance information
Results measured against plan
May 23, 2008
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Maintenance Management Seminar
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Evaluate-Lagging KPI’s
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Repair facility performance
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Quality
Quantity
Out of service –Turnaround time
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Time the car is bad order or awaiting disposition
Time the car takes moving to shop
Time the car is in the shop for repair
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Arrival to inspection and estimate
Approval to completion
Time the car takes to move back into service
Results measured against plan
All this “out of service” time decreases utilization
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Maintenance Management Seminar
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Key Performance Indicators
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Association of leading and lagging KPI
identifies trends
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Time between component failures or repairs
Per car per month
Life cycle cost to asset value
EHMS exposure
Actual cost to budget
Car status monitoring
Shopping performance
Continuous improvement
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Maintenance Management Seminar
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Plan Effectiveness - KPI Reporting
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Gather data and measure results
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Provide results in detailed, summarized format
Periodic reviews
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Internal
Contractors
Repair facility
Results used to adjust plan and SOW
Insure quality of work and cost control
Re-focus on specific problem cars or components
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Maintenance Management Seminar
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Fleet Per Car Per Month Cost
$95.28
Fleet Average
$64.82
$30.45
800-899
$10.85
$9.20
$1.65
$46.87
$33.78
700-799
$13.09
CAR SERIES
$54.71
600-699
$19.59
PCPM
Contractor
AAR
$52.11
500-599
$29.80
$22.32
$111.15
400-499
$74.48
$36.67
$183.37
300-399
$131.50
$51.87
$156.85
200-299
$107.26
$49.58
$181.43
100-199
$132.57
$48.86
May 23, 2008
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Maintenance Management Seminar
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Major Components, Contractor Only
Cost per Car per Month
ABCX 1000-1999
$78,531
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
2006
2007
AAR
$ 26.86
$ 36.67
Contractor
$ 41.30
$ 74.48
Combined
$ 68.16
$111.15
$53,969
$25,003
$1,786
$3,645
1/1/2006 through 12/31/2006
1/1/2007 through 12/31/2007
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DTE Rail Services, Inc.
Maintenance Management Seminar
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Major Components, Contractor Only
Cost per Car per Month
ABCX 2000-2999
2006
$11,093
2007
AAR
$
7.17
$ 22.32
Contractor
$ 53.50
$ 29.80
Combined
$ 60.67
$ 52.12
$12,000
$3,933
$10,000
$8,000
$6,000
$1,803
$4,000
$285
$536
$761
$2,000
1/1/2006 through 12/31/2006
1/1/2007 through 12/31/2007
$0
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DTE Rail Services, Inc.
Maintenance Management Seminar
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Budget Review
Maintenance Budget
Monthly Expense
Budget
Jan
Contractors
$1,767,560.00
-$141,133.96
Balance
AAR
$473,460.00
-$20,517.03
$1,626,426.04
Feb
-$99,345.71
-$147,108.41
-$43,905.66
-$188,872.22
-$46,305.84
-$147,521.87
-$55,929.21
-$190,842.85
-$42,464.67
-$68,530.24
-$89,871.43
Sep
-$84,516.38
-$37,005.65
-$115,565.07
$81,150.62
-$174,268.67
-$79,002.40
-$321,902.18
May 23, 2008
-83%
-$63,828.49
-$35,108.44
$113,646.08
-$80,562.74
Remaining Budget
Percent Remaining
Totals
($1,734,476.66)
Percentage
74%
-72%
$15,173.91
$435,548.26
Dec
-65%
-$65,976.71
$609,816.93
Nov
-56%
$196,715.69
$694,333.31
Oct
-52%
$233,721.34
$784,204.74
Aug
-41%
$276,186.01
$852,734.98
Jul
-32%
$332,115.22
$1,043,577.83
Jun
-22%
$378,421.06
$1,191,099.70
May
-13%
$422,326.72
$1,379,971.92
Apr
Budget
$2,241,020.00
-7%
$452,942.97
-$30,616.25
$1,527,080.33
Mar
Balance
-99%
-$98,936.93
-$42,737.75
$33,083.34
$33,083.34
2%
-105%
-$141,674.68
($141,674.68)
-30%
($615,134.68)
26%
DTE Rail Services, Inc.
Maintenance Management Seminar
($108,591.34)
-5%
($2,349,611.34)
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Budget Review – YTD
Maintenance Budget YTD
Monthly
Expense
Budget
Jan
Contractors
Contractor's
Balance
AAR
$2,285,000.00
$540,000.00
Total
Budget
$2,825,000.00
-$95,249.39
-$93,699.99
-7%
$2,189,750.61
Feb
-$271,367.80
$446,300.01
-$74,086.94
$1,918,382.81
Mar
-$254,461.68
-$61,246.96
-$139,946.99
-$62,995.70
-$115,015.06
Remaining Budget
Percent Remaining
Totals
($876,040.92)
Percentage
72%
May 23, 2008
-30%
$310,966.11
$1,523,974.14
May
-19%
$372,213.07
$1,663,921.13
Apr
AAR
Balance
-37%
$247,970.41
-$54,482.39
$1,408,959.08
$1,408,959.08
62%
-43%
$193,488.02
$193,488.02
36%
($346,511.98)
28%
DTE Rail Services, Inc.
Maintenance Management Seminar
$1,602,447.10
57%
($1,222,552.90)
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Yearly AAR Billing Percentage
Reactive to Proactive
35%
30%
30%
Percentage
25%
29%
25%
28%
26%
25%
23%
20%
17%
18%
15%
10%
5%
0%
1999
2000
2001
2002
2003
2004
2005
2006
2007
YTD
Year
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
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792
781
792
119
BEARINGS
ALL WHEELS REPLACED
*Total includes wheels
changed for other
reasons
20
07
20
YT
D
180
183
ENVIRONMENT
184
183
271
315
WORN OUT
06
143
05
20
20
04
82
157
155
312
485
541
552
149
20
03
900
800
700
600
500
400
300
200
100
0
870
Wheel & Bearing Defects
All Wheels Replaced by AAR & Contract Shop
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
28
Average Wheel Set Mileage, by Group
393,196
Fleet Average
353,987
800-899
432,568
CAR SERIES
700-799
556,250
600-699
400-499
300-399
325,687
286,696
458,236
200-299
100-199
May 23, 2008
AVG
MILEAGE
375,890
500-599
356,250
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Maintenance Management Seminar
29
EHMS Exposure
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
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Major Shopping Event, Last Air Brake Test
LAST ABT DATE OLDER THAN 1/1/2006
250
238
200
162
QTY
150
100
50
17
0
2003
2004
2005
YEAR
Total
May 23, 2008
2003
2004
2005
17
238
162
DTE Rail Services, Inc.
Maintenance Management Seminar
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Shop Process Cycle Times
60
52
50
40
33
32
30
20
15
20
15
12
10
6
10
10 10
6
5
2
6
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BAD ORDER TO SHOP
ARRIVAL TO ESTIMATE
APPROVAL TO COMPLETION
COMPLETED TO SERVICE
TOTAL OUT OF SERVICE
DTE Rail Services, Inc.
Maintenance Management Seminar
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Evaluate-
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Continuing evaluation of SOW according to
maintenance goals
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Did the plan accomplish the objectives?
Adjusted - revise
Determining revisions to Scope of Work
Select revisions to meet objectives
Process of continuing improvement
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
33
Maintenance Types
Maintenance
Type
Description
CorrectiveReactive
Fix it when it breaksBreakdown
Periodic
Preventative
Predictive
Proactive
May 23, 2008
Time or mileage based
Defensive maintenance
Plan
Budget
Results
Unscheduled
Unexpected,
uncontrollable costs
Costs of Doing
Nothing
Scheduled
Planned, controllable
costs
Tends to over
maintain-shorten
component life
Planned, controllable
costs
Dependent on
condition
evaluation
Dependent on
information
evaluation
Best mix –
Best results!
Anticipated
Condition based
Predicted
Planned, controllable
costs
Combination of all
According to
criticality
Flexible plan,
controllable costs
DTE Rail Services, Inc.
Maintenance Management Seminar
34
Journey From Repair-Focused to Reliability-Focused Culture
Contributor To
Business Success
Don't Just Fix ItImprove it!
Strategic
Fix It Before It
Breaks
Proactive
Alignment
(Shared Vision)
Fix It After
It Breaks
Planned
Performance
Improvement
Integration:
Business Processes
Reactive
Predict
Plan
Asset Function
Proven Plan
Performance
Schedule
Coordinate
Asset Value
Business Reliability
Cost Center
Cost Focus
Reliability
Customer/Supplier
Relationship
Don't Fix
It
Rewards:
Staged Decay
Short Term Savings
Uncontrolled Cost
Limit Surprises
Competitive
Advantage
Business Success
Motivator:
Meet Budget
Breakdowns
Avoid Loss
Utilization
Growth
Behavior:
Decaying
Responding
Initiate Discipline
Disciplined
Alliance
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
35
Maintenance Plan Cycle
PLAN
ANALYZE
MaintenanceContinuous Improvement Cycle
SCHEDULE
EXECUTE
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
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Summary
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Maintenance and value to assets
Risks of not maintaining
Maintenance philosophies
Technology
Maintenance plan
Measuring effectiveness
May 23, 2008
DTE Rail Services, Inc.
Maintenance Management Seminar
37