Transcript Bild 1 - University of Portsmouth

The Return of the Investments
in Maintenance
for the benefit of the company
Jan Frånlund
Managing Director, SAMI Europe AB,
Strategic Asset Management in Europe AB
Chairman of the Swedish Maintenance Society, UTEK
Chairman of the EFNMS European Certification Committee of Maintenance Professionals
Convenor of the CEN TC 319’s Working Group for
the European Standard in Maintenance Management
Box 10231, 100 55 Stockholm, Sweden
E-mail: [email protected] or [email protected]
•
Establishing the critical maintenance
performance indicators you should be using
•
The new European standard
•
Improving your maintenance and reliability
efficiency by using benchmarking
•
Examples of applications
?
Which
KPIs are
most
indicative
The Measurement of the Results in Maintenance
COSTS
COST EFFICIENCY
• Direct costs
• Indirect costs
• External costs
RESULTS
COSTS
ACTIVITIES
RESULTS
EFFECT
• Preventive maint.
• Corrective maint.
• Reinvestments
• Few functional disturb.
• Few failures
• The state of the assets
• AVAILABILITY
• MIN. DISTURBANCES
• QUALITY
RESOURCES
• Direct hours
• Indirect hours
• Use of technical
resources
PRODUCTIVITY
RESULTS
USED
RESOURCES
© Copyright Jan Frånlund 2002
”That part of the total
required time during which
the technical assets
should be possible to use,
shall be as big as possible”
In other words,
you want to have high
AVAILABILITY
The item is
available for use
Seldom
a down state
of the item
Simple and fast
maintenance
activities
The right resources
at the right place
at the right time
Availability
Reliability
Maintainability
Supportability
What has the
biggest influence
upon the result?
Availability
Reliability
Maintainability
Supportability
Design
70 %
70 %
10 %
Production
20 %
10 %
20 %
Maintenance
10 %
20 %
70 %
© Copyright Jan Frånlund 2007
?
Business
Oriented
Results
in the
Maintenance
function
Some Basic Concepts
• Business goals drive decisions regarding
the use and care of equipment assets
• Asset strategy is determined by operational
considerations
• Maintenance and reliability are means to a
defined goal, not an end in themselves
• The intent is to optimize the application of
all resources, not just maintenance
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
The Interests for the Maintenance Activities
MAINTENANCE MANAGEMENT
COSTS
COST EFFICIENCY
PROFIT
•
•
•
Direct costs
• Direct costs
Indirec costs
• Indirect costs
External costs
• External costs
ACTIVITIES
••Preventive
Preventivemaint.
maint.
••Corrective
Correctivemaint.
maint.
••Reinvestments
Reinvestments
COMPANY MANAGEMENT
SHAREHOLDERS
AND THE BOARD
RESULTS
COSTS
RESULTS
EFFECT
• Few functional disturb.
• Few failures
• The state of the assets
• AVAILABILITY
• MIN. DISTURBANCES
• QUALITY
COMPETITIVNESS
COSTEFFECTIVENESS
RESOURCES
•• Direct
Direct hours
hours
•• Indirect
Indirect hours
hours
•• Use
Use of
of technical
technical
resources
resources
© Copyright Jan Frånlund 2003
PRODUCTIVITY
RESULTS
USED
RESOURCES
Return On
Maintenance
Investment
Cost Effectiveness
Return On Maintenance Investments (ROMI)
Business Oriented Results
Overall
Equipment
Efficiency
Asset
Preservation
Safety
Health
Environment
Protection
© Jan Frånlund, Sweden 2003
CEN - Comité Européen de Normalisation
EN 15341
Levels of indicators
Family of indicators
Economical
indicators
Technical
Indicators
Organizational
Indicators
Level 1
Level 2
Level 3
E1 E2 E3 E4
E5 E6
E7 E8 E9 E10
E11 E12 E13
E14
E15 E16 E17
E18 E19 E20
E21 E22 E23
E24
T6 T7
T8 T9 T10 T11
T12 T13 T14
T15 T16 T17
T18 T19 T20
T21
O9 O10
O11 O12 O13
O14 O15 O16
O17 O18 O19
O20 O21 O22
O23 O24 O25
O26
T1 T2 T3 T4
T5
O1 O2 O3 O4
O5 O6 O7 O8
© Jan Frånlund, Sweden 2007
Examples of Key Performance Indicators
Economical Key Indicators
E1 Total Maintenance Cost / Assets Replacement Value
E3 Total Maintenance Cost / Output of operations
E6 Availability related to maintenance / Total Maintenance Cost
Technical Key Indicators
T1 Total Operating time / Total Operating time + Down time due to maintenance
T2 Achieved up time during required time / Required time
T5 Number of injuries for people due to maintenance / Calendar time
Organisational Key Indicators
O1 Number of internal maintenance personnel / Total internal personnel
O5 Planned and scheduled maintenance man hours / Total maintenance
man hours available
O8 Internal maintenance man hours used for continuous improvements /
Total internal maintenance personnel man hours
© Jan Frånlund, Sweden 2007
The European Federation of
National Maintenance Societies
The Member Societies
AEM
Spain
AFIM
France
The Member
Societies
AIMAN Italy
AEM
Spain
APMI
Portugal
AFIM
France
BEMAS
Belgium
AIMAN Italy
DDV
APMI Denmark
Portugal
DVS
Slovenia
BEMAS Belgium
GFIN
Germany
DDV
Denmark
HDO
DKIN Croatia
Germany
IAM
Great
Britain
DVS
Slovenia
HDO
Croatia
KPY
Finland
IAM
Great Britain
MEETA
Ireland
KPY
Finland
MFS
Switzerland
MEETA Norway
Ireland
NFPV
NFPV The
Norway
NVDO
Netherlands
NVDO
The
Netherlands
UTEK Sweden
MFS
Switzerland
SSU
Slovakia
UTEK Sweden
DOTS Serbia
SSU
Slovakia (Observer)
ČSPÚ
Czech
PolandRepublic
(Observer)
PMS
PN-TTE Poland
MFA
Austria
KPY
NFPV
UTEK
DDV
MEETA
IAM
NVDO
GFIN
BEMAS DKIN
ČSPÚ
AFIM
APMI
AEM
www.efnms.org
PMS
PN-TTE
MFS
MFA
AIMAN
DVS
HDO
SSU
DOTS
Results from the EFNMS workshops on maintenance indicators, by Tom Svantesson,
based on contribution from 12 companies from Slovenia, Croatia, Ireland and Denmark.
Pharmaceutical business - Maintenance average values based on 12 companies
Workshop results - October/November 2005
I:01 Maintenance costs as a % of Plant replacement value
3,2
%
I:02 Stores investment as a % of Plant replacement value
0,9
%
29,2
%
36,9
%
35,6
%
2,2
%
4,6
%
18,4
%
60,0
%
78,5
%
87,2
%
176,2
Hours
2,6
Hours
96,0
%
95,3
%
I:03 Contractor costs as a % of Maintenance costs
I:04 Preventive maintenance costs as a % of Maintenance
costs
I:05 Preventive maintenance man hours as a % of
Maintenance man hours
I:06 Maintenance costs as a % of Turnover
I:07 Training man hours as a % of Maintenance man hours
I:08 Immediate corrective maintenance man hours as a % of
Maintenance man hours
I:09 Planned and scheduled man hours as a % of Maintenance
man hours
I:10 Required operating time as a % of Total available time
I:11 Actual operating time as a % of Required operating time
I:12 Actual operating time / Number of immediate corrective
maintenance events
I:13 Immediate corrective maintenance time / Number of
immediate corrective maintenance events
T1 Availability related to maintenance
T2 Operational availability
Unit
Results from the EFNMS workshops on maintenance indicators, by Tom Svantesson,
based on contribution from 8 companies from Slovenia, Croatia, Ireland and Denmark.
Food business - Maintenance indicators based on 8 companies
Workshop results - October/November 2005
Unit
I:01 Maintenance costs as a % of Plant replacement value
2,8
%
I:02 Stores investment as a % of Plant replacement value
1,2
%
I:03 Contractor costs as a % of Maintenance costs
31,1
%
I:04 Preventive maintenance costs as a % of Maintenance costs
40,8
%
I:05 Preventive maintenance man hours as a % of Maintenance
man hours
34,9
%
I:06 Maintenance costs as a % of Turnover
4,3
%
I:07 Training man hours as a % of Maintenance man hours
1,8
%
I:08 Immediate corrective maintenance man hours as a % of
Maintenance man hours
23,6
%
I:09 Planned and scheduled man hours as a % of Maintenance
man hours
49,0
%
I:10 Required operating time as a % of Total available time
57,5
%
I:11 Actual operating time as a % of Required operating time
89,7
%
I:12 Actual operating time / Number of immediate corrective
maintenance events
45,9
Hours
I:13 Immediate corrective maintenance time / Number of
immediate corrective maintenance events
2,1
Hours
T1 Avalabillity related to maintenance
94,4
%
T2 Operational availability
96,7
%
Some perspectives upon today’s situation
• Today’s environment requires measurements that can predict
outcomes, not just measuring outcomes themselves
• More importantly we must be able to assess the sustainability
of new initiatives
• There has been a long debate over how maintenance process
should be measured
• Two major types of indicators (quantitative)
- Leading or Process
- Lagging or Outcome
• There is seldom consideration of how the actions of people
relate to change
© Copyright SAMI Europe AB 2006
Establishing an Effective Measurement System Is Fundamental
to Improving the Maintenance Management Process
Lagging Indicators
Leading Indicators
• Maintenance cost / replacement
asset value ratio
• Work request quality
• Wrench time
• Priority system effectiveness
• Emergency work ratio
• Planned work ratio
• Equipment availability
• Job estimating accuracy
• Re-work
• Inventory accuracy
• Equipment history quality
• Maintenance work conducted by
operators ratio
• Material / equipment stock-outs
• Inventory turn-over
• Work approval effectiveness
• Craft to supervisor ratio
• Total backlog
• Preventive and predictive ratio
• Failure analysis
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
Maintenance Management Leading Indicators
Performance Indicators
Inventory Accuracy
Maintenance Work
Conducted by Operators
Ratio
Measurement
Percent of Items Actually Found
During Physical Inventory
W/O Count of Maintenance Work
Done by Operators
Best in Class1
SAMI
Experience2
99%
90 - 95%
>25%
15%
15 : 1
10 - 15 : 1
5 Weeks
5 Weeks
40%
30-35%
60 - 70%
40 - 50%
Total Maintenance W/O
# Maintenance Hourly
Craft to Supervisor Ratio
# of Maintenance Supervisors
Total Backlog
Preventive and Predictive
Maintenance Ratio
Number of Calendar Weeks to
Complete All Planned
Maintenance Work Using Straight
Time
Maintenance Hours Worked on
PM/PDM Work
Total Completed Work Order Hours
Failure Analysis
Percent Work Orders Reviewed
for Root Cause
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
There’s A System To This…
• The premise is to measure both leading (Process) and
lagging (Outcome) indicators
• It must be done in some context, an overall process
that integrates with your direction
• We call such a process the “Managing System”
• There are other factors at work other than numbers
• This forms the basis for integrating people and
processes within a common performance and
behavior framework
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
Gauging Work The Management Process
Proactive Work Capacity index (PWCi)
• PWCi = (Schedule Compliance) x (Resource Load) x (Wrench Time)
• World class levels would be:
– PWCi (World Class) = (0.90) x (0.90) x (0.65) = 0.53
• This index should be calculated weekly and trended over time
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
Benchmarking Against
Industry Leaders
To be as good as …
or
To be better than …
?
Is maintenance efficiently executed?
• Many companies say that the maintenance activity is under
control and ok.
• Our experience indicates something else. Following is quite
typical:
– Half of the work orders should be executed a.s.a.p.
– Most of the work is reactive
– Work planning is done after issuing the WO (work order) to the
technician (… our technicians are skilled and trained. They know
what they are doing …)
– PM is inefficient (100% WOs issued out to techs  60% signed off
as having been done  30%actually done)
– Typical case: complex production environment with 6 600 PM
tasks. After study 50% were revised, 40% were removed, 10% left
intact. Results: critical failures -90%, reworking after corrective
maintenance -63%, work requests -80% as result of better targeted
PM
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
What is the Goal?
The
Leading
Star
Changes
in behaviours
for the Future
Company Team Work
for World Class
achievements
Analytical Procedures
for Betterment
in place and in proper use
The Basic Activities
in place and in proper use
The SAMI Asset Healthcare Triangle
Maintenance
of the asset
for best
performance
The fundamental activities for the basic maintenance function
Preventive
Maintenance
Work Identification/
Prioritization
MANAGING
SYSTEM
Planning &
Scheduling
CMMS/Metrics
Work Execution/
Review
Turnaround
Management
This includes the development, implementation and sustainability of
the basic activities to achieve fully control of the maintenance function
Next step of development
Asset
Integrity
Condition Based
Maintenance
Asset Strategies/
SRCM
Craft Skills
Enhancement
Failure
Analysis
Equipment
History
This step consists of development, implementation and sustainability of such
activities which will allow control of the assets
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
Maturity Ranking* (Stages 1-3 excerpted from Asset Healthcare)
Class
Low Performing
Stage
Stage 1
Planned
Maintenance
Stage 2
Proactive
Maintenance
Stage 3
Organizational
Excellence
Competent
High Performing
•
•
•
•
“Fires” determine priorities
Breakdowns frequent
Maintenance equates to repair
Ineffective work orders, plans,
controls
• Stores service levels low
• Poor operator/maintenance
relationships
• Unable to meet production budgets
• Most work planned, scheduled
• PM implemented, defects identified &
corrected
• Trades competent at most repairs
• CMMS implemented
• Stores service levels support
operation
• Operators prep for repairs
• Maintenance goals & KPI’s in place,
reported
• All work prioritized, scheduled w/
production
• PM hours/WOs exceed repairs
• CMMS fully utilized
• Parts kitted for jobs, 2x annual
turns
• Operators inspect, create WOs
• Long-range scheduling
implemented
• T/As well planned & executed
•
•
•
•
•
Equipment history unusable
RCFA infrequent, ineffective
PM’s don’t match equipment / need
Inspections don’t get done
Equipment criticality based on
emotion
• Condition monitoring sporadic,
ignored
• No comprehensive asset care
program
• Equipment history is accurate & used
• Critical assets have clear prevention
plans
• High percentage of PM compliance
• Inspections yield WR’s, scheduled &
done
• Condition monitoring widely used,
trusted
• Trades competent at most repairs
• RCFA system established & effective
• Asset healthcare program for all
equipment
• PdM techniques minimize losses
• RCFA done for >80% of failures
• RCFA’s results implemented
routinely
• CBM based on cost & risk
• Prevention mentality is
imperative
• Trades design out failures
• Training unconnected to work
practice
• Supervisors lack authority /
accountability
• Unclear roles & responsibilities
• Skills flexibility in contract, not
implemented
• Operators don’t basic maintenance
• No individual performance
targets/goals
• Supervisors have clear roles &
accountability
• Operators inspect/lube/prep
equipment
• Work is directed by a priority system
• Natural work teams effective at
routine maintenance
• Service contract exists btw O & M
• Craft multi-skilling and flexibility
implemented
• Work teams flexible, self-directed
• Supervisors coach & advise
• Continuous improvement
embraced & effective
• Clear priorities established for
work
• Reward/Recognition support
best practices
• Skills predominate over functions
• All staff systems competent
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
What is the Goal?
The
Leading
Star
Changes
in behaviours
for the Future
Company Team Work
for World Class
achievements
Analytical Procedures
for Betterment
in place and in proper use
The Basic Activities
in place and in proper use
There are two
important facts
in benchmarking:
1. The same definitions
2. Fully comparable data
The European Standard in
Maintenance Terminology
CEN EN 13306
MAINTENANCE
Before a detected fault
After a detected fault
Preventive Maintenance
Corrective Maintenance
Condition Based
Maintenance
Predetermined
Maintenance
Scheduled,
continuous
or on request
Scheduled
Condition
monitoring
- Inspecting
- Measuring
- Controlling
Failure Preventing
actions
Restoring and/or
Repair actions
- Cleaning
- Lubrication
- Coating
- Adjustment
- Replacement
- Fault diagnosis
Condition
OK?
No
Yes
No actions
for the moment
- Function check-out
Deferred
Immediate
- Cleaning
- Lubrication
- Coating
- Adjustment
- Joining together
- Replacement
- Function check-out
Jan Frånlund, 2000
Maintenance
Combination of all technical, administrative and managerial actions
during the life cycle of an item intended to retain it in, or restore it to,
a state in which it can perform the required function.
NOTE: See also the definition of improvement and modification.
Improvement
Combination of all technical, administrative and managerial actions,
intended to ameliorate the dependability of an item, without changing
its required function.
Modification
Combination of all technical, administrative and managerial actions
intended to change the function of an item.
NOTE 1: Modification does not mean replacement by an equivalent item.
NOTE 2: Modification is not a maintenance action but has to do with changing
the required function of an item to a new required function. The changes
may have an influence on the dependability or on the performance of the
item, or both.
NOTE 3: Modification may be allocated to the maintenance organization.
CEN - Comité Européen de Normalisation – EN 15341
Maintenance Influencing Factors and Maintenance Key Performance Indicators
External
influencing
factors
Internal
influencing
factors
Company Culture
Process Severity
Product Mix
Plant Size
Utilization Rate
Age of Plant
Criticality
Levels of
of indicators
indicators
Levels
indicators
of indicators
Family of
Family
Location
Society Culture
National Labour
Cost
Laws Regulations
Sector / Branches
Economical
Economical
indicators
Technical
Indicators
Organizational
Indicators
Level 11
Level
Level 22
Level
Level 33
Level
E1 E2
E2 E3
E3 E4
E4
E1
E5 E6
E6
E5
E7 E8
E8 E9
E9 E10
E10
E7
E11
E12
E13
E11 E12 E13
E14
E14
E15
E15 E16
E16 E17
E17
E18
E18 E19
E19 E20
E20
E21
E22
E23
E21 E23 E24
E24
T5 T7
T6
T6
T7T9
T8T10
T9 T10
T8
T11
T11
T12
T13
T12 T13 T14
T14 T16
T15 T17
T16
T15
T17 T19
T18 T20
T19
T18
T20
T21
T21
O9 O10
O10
O9
O11 O12
O12 O13
O13
O11
O14
O15
O16
O14 O15 O16
O17 O18
O18 O19
O19
O17
O20
O21
O22
O20 O21 O22
O23 O24
O24 O25
O25
O23
O26
O26
T1
T1 T2
T2 T3
T3 T4
T4
T5
O1 O2
O2 O3
O3 O4
O4
O1
O5
O6
O7
O8
O5 O6 O7 O8
© Jan Frånlund, Sweden 2007
Key Performance
Indicators
Economical
Technical
Organisational
företag
The Verkligt
actual förhållande
situation för
forditt
your
company
The Swedish & Finnish Maintenance Societies’ joint development
EuroBench
Benchmarking system
UTEK:s nyckeltals- och
Benchmarkingsverktyg
på Internet
ad
Fö
i
sit
o
p
on
t
än
v
r
Orsaken
tillreasons
denna
The
forskillnad
this
difference
Details &
Betterment
ideas
The expected
type
of company
Förväntatsituation
förhållandefor
för this
viss typ
av företag
Do we
have
the same
philosophy
?
It would be nice to
• achieve significant betterments
regarding the amount of quality outputs
from the assets
• get betterments that really last for the future
• get 30% - 50% better profit per year
• have a situation where all the efforts
to achieve these results are already
paid for within a year
?
Is
that
possible
Strategic Asset Management Benefits
•
An Asset Management Strategy can
produce
a 20% - 50% reduction in Asset
Healthcare cost and
a 5% - 20% increase in throughput,
with no capital investment.
•
Regulatory Compliance is assured and
product deviations are minimized.
•
Morale is improved for employees who
learn to work in a proactive culture
and become proud of their
achievement.
•
Relations with owners, regulatory
agencies, banks, insurers, and unions
are improved.
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
Are
people
ready
?
Nowadays more and more of
the top management teams of the companies
are beginning to understand
that Strategic Asset Management is
NOT AN OPTION
BUT A NECESSITY
if one want to be successful
and competitive in the future
42
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
Some
achieved
results
!
Process Indicators--Work Management System Benefits
LABOR UTILIZATION
SCHEDULE ATTAINMENT
PM/TOTAL RATIO
% PLANNED WORK
REACTIVE WORK
PM COMPLIANCE
© 2006 SAMI Europe AB – Proprietary and Confidential
SAM I
Shell Petroleum Case Study
Cumulative Operating Expense Reduction
$, M
• Realized annualized
Operating Expense
Reduction of $30M
(30%) to date
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
Plan
Actual
1
4
7
10 13 16 19 22 25 28 31 34 37
Implementation Month
Cumulative Production Capacity Increase
Barrel Oil Equivalent, M
• Created production
increase of 17.0 M
BOE, valued at more
than $600,000,000 at
today’s prices
25,00
20,00
15,00
Plan
Actual
10,00
5,00
0,00
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37
Implementation Month
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
Shell Business Case Realization Chart
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
SASOL Synfuels Case Study
SAMI Benefits - Actual vs Target
R 350.000
R 300.000
R 250.000
Millions
Results to date:
– Material cost reduced
– Overtime reduced
50%
– Emergencies reduced
60%
– Cost reduced 59 MM
Rand
– Production increased
49 MM Rand
R 200.000
R 150.000
R 100.000
R 50.000
R 0.000
Jan Feb Mar
Apr
May Jun
Jul
Aug Sep Oct
Nov Dec Jan Feb Mar
Accummulative Target
Total Benefit
Apr
May Jun
Jul
Aug Sep Oct
Nov Dec
Accumulative Costs
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
?
What is
this
betterment
process
all about
Strategic Asset Management
An integrated set of processes
that systematically derive the highest value from plant assets,
through a consistent philosophy, plans and objectives,
and co-operative involvement by everyone in the plant.
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
Company Management,
Designers
&
Project managers
Production
Management
Maintenance
Management
Right
Capacity
Right
Production
Right
Maintenance
Asset
Management
Right
Logistics
Logistics
Management
The SAM Model
Strategic Asset Management
Managing System
LEAD
Strategic Planning
EXECUTE
Capacity
Capacity
Development
&
Development
Disposition
& Disposition
Information Management
Operations
Management
Asset Healthcare
Asset
Management
Production
Healthcare
Management
Management
Logistics
Management
Logistics
Management
ENABLE
Ownership / Development / Empowerment
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
The SAMI Capacity Triangle
Having the
right asset
for the purpose
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
The SAMI Production Triangle
Using the asset
the right way
for the purpose
it is intended
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
The SAMI Logistics Triangle
Supplying
the asset
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
SAM Model Functional
Pyramid
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
Strategic Asset Management
is a completely alignment of resources
to achieve the business goals of the organisation
at the lowest cost.
56
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
Get betterments that really last for the future
Give a man a fish,
feed him for a day………
Teach him to fish
& feed him for a lifetime.
SAMI
© 2006 SAMI Europe AB – Proprietary and Confidential
Thank you for listening !
Any Questions ?