facilities management reliability pdf

7/30/2019 Facilities Management Reliability PDF

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SESSION NO.: R4.39 Thursday, MARCH 18, 2010 ROOM NO.: 339

Successful Facilities

.Founder-President-Coach

The Maintenance Excellence Institute

www.PRIDE-in-Maintenance.com


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1. Review $s that The Scoreboard for Facilities

Management Excellence benchmarking processcan enable

2. Review the strategy forContinuous Reliability

Im rovement CRI .

3. Review the process to create The Reliability &

4. Define What is PRIDE in Maintenance?

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 2Terms:

Top Leader Maintenance Leader Craft Leader


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Different Types of Benchmarking

1. Benchmark: A point of reference for a

special-purpose "monuments", typically small.

the base, set permanently into the earth.

. : vperformance by examining successful

- .9 Example The Scoreboard for Facilities

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 3


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Different Types of Benchmarking (cont)

3. Global Benchmarking: Applies to the total

maintenance process and overall best practices forthe business of maintenance

Example The Scoreboard for Facilities

Management Excellence

4. Internal Benchmarking: Involves partners

within same organization (multiple sites). Alsobenchmarking at shop level using

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 4The Reliable Maintenance Excellence Index


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Benchmarking Your Maintenance Organization

The Scoreboardfor FacilitiesManagementExcellence

Maintenance

Excellence Index

We Will ReviewThese

Two BenchmarkingTools



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Maintenance Around the World

REMEMBER: MAINTENANCE IS FOREVER!!

Fleet Operations

Scope of

IndustriesManufacturing

Maintenanceus any

More Types of

Maintenance

Facility ManagementOperations Healthcare

Operations


.


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Maintenance??

Burj Al Arab: A 7

Star Hotel

Russian Air ort Control Tower-


Kamchatka Peninsular


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Burj KhalifaTower

Burj Khalifa

Burj Dubai prior to its

inauguration, is askyscraper in Dubai,

UAE and is the tallest

man made structure

ever built, at 828 m(2,717 ft).



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Todays Very Real Challenges

Challenge One: Maintain existing

ac t es an equ pment n sa e anreliable conditions.

Challen e Two: Im rove enhance andthen maintain existing physical assetsto achieve environmental re ulatorlife safety/security standards & energybest ractices.



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Todays Very Real Challenges

Challenge Three: Enhance, renovate and

add to existing physical assets usingcapital funds and then maintain theadditions.

Challen e Four: Commission newphysical assets and assume increasedsco e of work to maintain lus more

work from Challenges One, Two andThree as assets et older, older & older



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Face These Four Very Real Maintenance

Challen es With the Facts!Add staff ??? Not unless you have these facts!

.

2. Top Leaders also know your Total MaintenanceRe uirements & know the facts

3. Top Leaders know the costs & risks of deferred

maintenance. (DGWMC is about gambling & stats)4. Document productivity of current resources

Other Options???

9Use more contractors? Improve asset reliabili ty?9Eliminate a reactive strategy GO PRO-active!

9


9Work smarter, not harder? Or Work smarter and harder?


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Facing Todays Maintenance Challenges

The Bottom Line normally is this; Assuming growth with little or no additions in staff

Real Maintenance Leaders

-

Must Improve the business of maintenance

Effective planning, estimating and scheduling

Im roved Preventive Maintenance/Predictive

Maintenance (PM/PdM) etc/etc/etc

Lead Maintenance Forward as a Business;

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 12YOUR OWN PER$ONAL BUSINE$$


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What is Your Answer to This Question?



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Facing Todays Maintenance Challenges

Conduct Scoreboardfor FacilitiesMana ementExcellence

Assessment



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Know Your Current State of Maintenance

The Reliability Pyramidshown on the next page.

Where are you?

not gamble with maintenance costs.

Sta e 5: Achievin reliabilit and maintenance excellence with thegoal oftotal operations success.

Get Stage 1 Right! Moving beyond Stage 1 will achieve significant

ene s. rs you mus now w ere you are Define your current state of maintenance via The Scoreboard

.

15


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The Reliability Pyramid

Reliabilityand

Maintenance

STAGE 5Operational Excellence

Assure alignment of financial operations, corporate TotalOperations

ExcellenceOverall

UnitEffectiveness

EquiptSimplify/

Standardize

ConcurrentEn rn.

EquiptAc n.

STAGE 4Engineered Reliabili tySystematically eliminate sources of

, ,Success

Courtesy of

ReliabilityFocus

Life CycleCost Anal.

ReliabilityAnalysis

Maintenance /Operations

Externalversus

Internal

TPMOperator

Performed

STAGE 3

Organizational ExcellenceCreate the environment to maximize

potential system failure

Management

Flexibilityn egra on

Benchmarks Maintenance

ConditionMonitoring

Failure Prediction

Failure Mode AnalysisProactive

MaintenanceSTAGE 2Proactive Maintenance

the staff contribution

PdM / CMMSIntegration

Craft SkillsEnhancement EquipmentHistory

PreventiveMaintenance

Work ManagementProcesses

CMMSSystemSTAGE 1

a n contro o equ pmentcondition

16

Work Initiation /Prioritization

Planning andScheduling

Work Execution& Review

MRO MaterialsManagement

control of the work


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Introducing The Scoreboard

for Facilities Mana ement Excellence

Scoreboard for Maintenance Excellence (Manufacturing)

Scoreboard for Healthcare Facil ities Mgmt Excellence

17


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200+ Scoreboard Assessments200 plus Scoreboard Assessments

18


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The Scoreboard for

Facilities Mana ement ExcellenceRecognized as Todays Most Complete and

v

27 Best Practice categories & 300 evaluation items

Defines your baseline as to where you are

You could compare your baseline to otherorgan za ons

Comparing to others not important

Its about what you do to move the ball Provides the path forward for reliability &

ma n enance exce ence.

19


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The Scoreboard for

Facilities Mana ement ExcellenceProven as Todays Most Complete and

v .

Used by TMEI for over 300 + assessments & by,

benchmarking tool

. - - .

Free with purchase ofMaintenance Benchmarking

&TMEI. (Chapter 7, page 122)

-small books by other authors .

20


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CATEGORY The Scoreboard for Facilities Management ExcellenceCategory Descriptions (Part 1)

EvaluationItems

TotalPoints

inCategory

A. The Organizational Culture and PRIDE in Maintenance 5 50B. Facilities Organization, Administration and Human

Resources10 100

C. Craft Skills Development 10 100

D.Facilities Management Supervision/Leadership

10 100E. Business Operations, Budget and Cost Control 15 150

. (M/R)

G. Work Management and Control: Construction and

Renovation (C/R)

5 50

H. Facilities Maintenance and Repair Planning andScheduling

15 150

I. Facilities Construction and Renovation Planning 10 100

J. Facilities Planning and Property Management 10 100

K. Facilities Condition Evaluation Program 5 50

21

L. Facilities Storeroom Operations and Internal MROCustomer Service

15 150

M. MRO Materials Management and Procurement 10 100


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CATEGORY The Scoreboard for Facilities Management ExcellenceCategory Descriptions (Part 2 Continued)

EvaluationItems

TotalPoints inCategory

.

O. Predictive Maintenance and Conditioning MonitoringTechnologies

10 100

.

Q. Utilities Systems Management 10 100R. Energy Management and Control 10 100

. ac es ng neer ng uppor

T. Safety and Regulatory Compliance 15 150

U. Security Systems and Access Control 10 90

V. Facilities Management Performance Measurement 15 150

W. Computerized Maintenance Management System (CMMS)and Business System

15 150

X. Shop Facilities, Equipment, and Tools 10 100Y. Continuous Reliability Improvement 10 100

Z. Grounds and Landscape Maintenance 15 150

22

ZZ. Housekeeping Service Operations 15 150

Total Evaluation Items and Points 300 3000


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23


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Focus on YourTARGETSTaking Aim at Recommendations to Gain Excellence from Training Success

24


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The Goal & The Commitment

The Goal: Implement and measure results of solutionswe define b each Scoreboard assessment or durin

TrueWorkShop events.

partnership for achieving measurable results.

To help implement our recommendations

To document results & the value of our services

To become a valuable technical resource

To have all clients use maintenance for profit

25

optimization.


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Scoreboard Baseline RatingsTOTAL BENCHMARK

POINT

RANGES

OVERALL SCOREBOARD RATING

SUMMARY

BASELINE POINTS

FOR EACH

EVALUATIONTHE B ELINE T T L RE

ITEM

90% to 100%of Total Points EXCELLENT: 2700 to 3000 Total Points 10

80% to 89%

of Total Points VERY GOOD: 2400 to 2699 Total Points 9

70% to 7 %

of Total Points GOOD: 2100 to 2399 Total Points 8

60% to 69%

of Total Points AVERAGE: 1800 to 2099 Total Points 7

50% to 59%of Total Points BELOW AVERAGE: 1500 to Less than

1799 Total Points

6

26

49% or Less of Total

Points POOR: 1499 Total Points or less 5


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Your Return on Maintenance Investment

Financial Results Customer Satisfaction Results

5% to 20% increase incapacity/throughput

10% to 30% increase in assetavailability/reliability

productivity/wrench time

10% to 20% reduction in actual

20% to 30% greater inventory

accuracy and control

10% to 20% decrease in partsinventory & asset accountability

20% to 30% increase in plannedwork and schedule compliance

Fully implemented projects of this type provide a conservative range ofFully implemented projects of this type provide a conservative range ofdirect savings/benefits and gained value from 10% to 20% in annualdirect savings/benefits and gained value from 10% to 20% in annualmaintenance and MRO materials costs. Most operations achieve signif icantmaintenance and MRO materials costs. Most operations achieve signif icant

Fully implemented projects of this type provide a conservative range ofFully implemented projects of this type provide a conservative range ofdirect savings/benefits and gained value from 10% to 20% in annualdirect savings/benefits and gained value from 10% to 20% in annualmaintenance and MRO materials costs. Most operations achieve signif icantmaintenance and MRO materials costs. Most operations achieve signif icant

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..project will also provide important intangible benefits for employeeproject will also provide important intangible benefits for employee

relations, atti tudes and internal and external customer satisfactionrelations, atti tudes and internal and external customer satisfaction..

..project will also provide important intangible benefits for employeeproject will also provide important intangible benefits for employee

relations, atti tudes and internal and external customer satisfactionrelations, atti tudes and internal and external customer satisfaction..


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to



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Continuous Reliability Improvement

Conduct Scoreboardfor FacilitiesMana ementExcellence

Assessment



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Continuous Reliability Improvement-CRI

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 30Develop Your Scoreboard for FacilitiesManagement Excellence


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CONTINUOUS RELIABILITY IMPROVEMENT

GOES BEYOND RCM AND TPM

Craft Labor

Physical Asset

and EquipmentResources

Resourcesynerg s c eam

Based Resources

Reliability

ImprovementSpare Parts

and Material

Craft Knowledge

and Technical

Skill Resources

Information

Resources and



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Th S f T Eff t


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The Synergy of Team Efforts



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The Synergy of Team Efforts



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Todays Maintenance Leader Must:

Know Where You Are

Know Where You Want To Go

Have Strategic, Tactical or Operational Plans

Have Do It Now Action Items

Be a true Maintenance Leader

easure per ormance va ate resu ts Apply CRI across total maintenance operation


.


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Return on Maintenance Investment (ROMI)

Financial Results Customer Satisfaction Results

5% to 20% increase in

capacity/throughput

10% to 30% increase in asset

availability/reliability10% to 20% reduction in stock

productivity/wrench time

10% to 20% reduction in

outs

20% to 30% greater inventory

accurac

10% to 20% decrease in partsinventory value

20% to 30% increase in plannedwork

and gained value from 10% to 20% in annual maintenance and MROand gained value from 10% to 20% in annual maintenance and MROmaterials costs. You can achieve measurable results in many areas.materials costs. You can achieve measurable results in many areas.and gained value from 10% to 20% in annual maintenance and MROand gained value from 10% to 20% in annual maintenance and MROmaterials costs. You can achieve measurable results in many areas.materials costs. You can achieve measurable results in many areas.


,,atti tudes and both internal and external customer satisfaction.attitudes and both internal and external customer satisfaction.

,,atti tudes and both internal and external customer satisfaction.attitudes and both internal and external customer satisfaction.

U d t di P t ti l B fit


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Understanding Potential Benefits

With a Net Profit Ratio of 5 Percent; the Potential forMaintenance to Contribute to the Bottom Line

Maintenance Direct Equivalent Sales

Can be Significant

av ngs equ re$1 $20

$1,000 $20,000

A Profit of Requires Sales of

, ,

$20,000 $400,000

$50,000 $1,000,000Savings ofOffsets

Not in Sales, , ,

$100,000 $2,000,000$150,000 $3,000,000

175,000 3,500,000


$200,000 $4,000,000


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Developing Your Maintenance Excellence Strategy

Define where you are with a Scoreboard for

Get third-party support for an objective

Define your priorities for where you want to go

Develop potential direct & indirect benefits

Gained value from increased uptime

a ne va ue rom cra pro uc v yGained value from MRO materials



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Developing Your Maintenance Excellence Strategy

Establish A Reliable Maintenance Excellence Index

NEXT

Communicate maintenance goals with operationsor customers and get their buy-in and support


Ensure maintenance operation has buy-in as well


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Develop a Reliable Maintenance Excellence Index

A Reliable Maintenance Excellence Index Must; Identify key performance indicators that really matter a n consensus on agree upon goa s arge s

Define weighted value of the relative importance of eachperformance indicator

Have metrics that validate projected benefits, gained value andtotal operations success

Metrics Cover All 6 Maintenance Resources If Possible

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results44

i i


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The Reliable Maintenance Excellence Index

The RMEI measures key resources that contribute to,

effective facilities management; Peo le resources internal craft labor & outside contractors Dollar resources; overall budget dollars of maintenance and

the customer

Planning resources and customer service Critical assets; uptime, availability or OEE & reliability

Information resources; how data becomes true informationvia effective CMMS CMMS Benchmarkin S stem


A Reliable Maintenance Excellence Index Provides;


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A Reliable Maintenance Excellence Index Provides;

A very powerful, one page Excel spreadsheet -

Performance ValueA ver balanced scorecard for the total facilities and

maintenance process.

An ideal method for measuring Continuous ReliabilityImprovement across a multiple operations & work units

Support to applying and measuring the impact of standard

est pract ces Example: Maintenance planning & scheduling: We must

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results

D l i Y R li bl M i E ll I d


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Developing Your Reliable Maintenance Excellence Index

CurrentMonthPerf

BaselinePerf.Level


Weighted

Value ofEach Metric

D l i Y R li bl M i t E ll I d


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Developing Your Reliable Maintenance Excellence Index

All Perf.Goals

Are Met

.Level Scoresare All 10 s


D l i Y R li bl M i t E ll I d

Step

Description The 10 Step Process for RMEI Development


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Developing Your Reliable Maintenance Excellence IndexA PerformanceMetrics

10 to 15 metrics are selected & agreed upon by the organization.Select metrics for total maintenance process + operational ones.

B CurrentMonthPerformance

The actual monthly performance level for the metric . This valuewill also be noted in one of the incremental values blocks belowthe performance goal. This value will correspond to a value for F,

CPerformance

Goal

The pre-established performance goal for each of the RMEI

metrics. For example, if the Current Months Performance is at thePerformance Goal level, the performance level score for that goalw e a , e max mum score.

D BaselinePerformanceThe baseline performance level prior to start of RMEIperformance measurement. Not always available. Use a 1-3

months performance average as a baseline after start of RMEI.

E CurrentPerformanceScore

Depending on the current months performance, a performancelevel score (F) will be obtained. This value then goes to theCurrent Performance Score row and serves as the multiplier for

F PerformanceLevelValues from 10 down to one, which denotes the level of currentperformance, compared to the goal. If current performanceachieves the redetermined oal, a erformance value of 10 is


given. Each metric is broken down into incremental values fromthe baseline to the goal. Each incremental value in the column

corresponds to a performance level value. This value becomes theCurrent Performance Score.

De eloping Yo r Reliable Maintenance E cellence IndeStep

Description The 10 Step Process for RMEI Development (cont)


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Developing Your Reliable Maintenance Excellence IndexG WeightedValue of the

The values along this row are the weighted value or relativeimportance of each of the metrics. These values are obtained via

PerformanceMetric

a team process and a consensus on the relative importance ofeach metric that is selected for the RMEI. All of the weightedvalues sum to 100.

Value Score

Performance Scores to get the Performance Value Score (H).

I Total RMEIPerformanceThe sum of the Performance Value Scores for each of the metricsand the composite value of monthly maintenance performance

a ue on a me r cs

J Total RMEIPerformanceValues Over

Location for tracking Total RMEI PerformanceValues over a number of months

Time

1. The RMEI is a composite of key metrics, each with relative importance2. Each RMEI metric can be trended and linked to the monthly RMEI


3. The RMEI should be balanced across the total maintenance operation4. Other metrics of lesser value can also be tracked.


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21 Maintenance Performance Metrics

to Consider for YourPRIDEwith-in-

MaintenanceGo For It @.


# Performance Metric and Purpose Goal


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p1. % Overall Maintenance Budget Compliance: To evaluate 98%

management of $ assets; Obtained from monthly financials

2. Actual Maintenance Cost per Unit of Production orMaintenance Cost Per S uare foota e Maintained: To

TBD

evaluate/benchmark actual costs against stated goals/baselines or

against industry standards; Obtained from asset records and monthlyCMMS WO file of completed WOs for the month. Obtained frompro uc on resu s an nanc a repor . rov es ea suppor oCosting practices

3.% Customer or Capital Funded Jobs Completed as

98%

c e u e an w n + - o os s ma e: Tomeasure customer service & $ assets plus planning effectiveness;Obtained from funded WO types from the CMMS WO files, comparing

4. % Other Planned Work Orders Completed as Scheduled: Tomeasure customer service and planning effectiveness; Obtained from a

95%


promised to date completed. Could be expressed in % based on crafthours.



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5. Schedule Compliance: To evaluate how effectiveness scheduling was 95%

in regards to executing to meet scheduled dates/time; Obtained fromquery of CMMS completed WO file where all scheduled jobs coded andtheir actual completion compared to actual planned completion date/time

6. % Planned Work Orders versus % True Emergency Work

Orders: To evaluate positive impact of PM, planning processes and otherproactive improvement initiatives (CRI,/RCM/etc); Obtained from a query

80%

to85%

o a rue emergency ypes n es an compar ng o o aWOs completed. Could be expressed in % based on craft hours.

7. % Craft Time to WorkOrder for Customer Charge Backs: To monitor TBDcraft resource Accountability for Internal Revenue Generation (or External);Obtained from a query of all WO types in CMMS WO files that are chargedback comparing these craft hours to total craft hours paid

8. % Craft Time to Work Orders: To monitor overall craft resourceaccountability and to support internal revenue generation ; Obtained froma query of all WO types in CMMS WO files and summation of actual craft

100%




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9. % Craft Utilization Actual Wrench Time : To maximize craft 60%resources for productive, value-adding work and to evaluateeffectiveness of planning process; Obtained from a query of all craft hoursreported to non craft work from CMMS time keeping WO files and

to70%

10. % Craft Performance (Against Reliable Estimates for PM 95%

an p anne wor : o max m ze cra resources, o eva ua eplanning effectiveness and also to determine training ROI; Obtained fromcompleted WO file in CMMS

11. Craft Quality and Service Level: To evaluate quality and servicelevel of repair work as defined by customer; Obtained from WO file inCMMS where all call backs are tracked and monitored via work control and

98%+

planning processes.



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Th O ll C ft


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The Overall CraftEffectiveness Factor (%)

CU: Craft CP: CraftCSQ: Craft

Serviceza on Quality

56OCE = %CU x CP x CSQ




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12. Overall Craft Effectiveness OCE : To evaluate cumulative ositive 65%impact of overall improvements to Craft Utilization (CU), CraftPerformance (CP) and Craft Quality and Service Excellence (CQSE) incombination; Obtained from using results of measuring all three OCE

,Service Excellence

13. % Work Orders with Reliable Planned Times: To measure

70 %

from completed WO file in CMMS where panning times are beingestablished for as many jobs as possible by planner/supervisor

. ou e ytype asset, production department/location or by supervisory area): Toevaluate compliance to actual PM requirements as established for assetsunder sco e of res onsibilities Obtained from com leted WO file in CMMS




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.determine actual gained $ value of craft productivity gains as compared

to original estimate and/or the initial baseline; Obtained only from usingresults of measuring two of the OCE Factors: a) Craft Utilization, b) CraftPerformance.

16. % Inventory Accuracy: To evaluate one element of MRO materialmanagement and inventory control policies; Obtained from cycle count

98%

resu ts an cou e ase on tem count var ances or on cost var ance

17. % or $ Value of Actual MRO Inventory Reduction: To 10%

estimates and the initial baseline MRO inventory value; Obtained frominventory valuation summation at end of each reporting period




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18 Number of Stock Outs of Inventoried Stock Items: To monitor actual ????

. stock item availability per demand plus to monitor any negative impact of MROinventory reduction goals; Obtained from tracking stock item demand and recordingstock outs manually or by coding requisition/purchase orders for the items notavailable er demand

19

.

$ Value of Direct Purchasing Cost Savings: To track direct cost savings

from progressive procurement practices as another element of MRO materialsmanagement. Could apply to contracted services, valid benefits received from

TBD

per ormance con rac ng, con rac e s orerooms, ven or manage nven ory;Obtained via best method per a standard procedure that defines how direct

purchasing savings are to be accounted for

20 Overall E ui ment Effectiveness OEE : World class metric to evaluate 85%cumulative positive impact of overall reliability improvements to Asset Availability A),Asset Performance (P) and Quality (Q) of output all in combination. (Similar to OCEabove but for the most critical production assets); Obtained via downtime reportingrocess o erations erformance on critical assets and the resultin ualit of out ut

21.

% Asset Availability/Uptime: To evaluate trends in downtime due tomaintenance and the positive impact of actions to increase uptime; Obtained viadowntime reporting process

TBD


Many More Metrics Available


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Some Other Maintenance MetricsCategory Benchmark


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Category Benchmark

ear y a n enance os :Total Maintenance Cost/Total Manufacturing Cost < 10-15%

Maintenance Cost/Replacement Asset Value of the Plant and Equipment < 3%

Hourly Maintenance Workers as a % of Total 15%

Planned Maintenance:

Planned Maintenance Total Maintenance > 85%

Planned & Scheduled Maintenance as a % of hours worked ~85-95%

Unplanned Down Time ~0%

Run to Fail (Emergency + Non-Emergency) < 10%

Maintenance Overtime:

Maintenance Overtime/Total Company Overtime < 5%

Monthly Maintenance Rework:

Work Orders Reworked/Total Work Orders ~0%


Inventory Turns:

Turns Ration of Spare Parts > 2-3

Some Other Maintenance MetricsCategory Benchmark


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g y

For at least 90% of workers, hours/year> 80

hours/yearS endin on Worker Trainin % of a roll ~4%

Safety Performance:

OSHA Recordable Injuries per 200,000 labor hours < 2Housekeeping ~96%

9Preventive Maintenance: Total Hours PM/Total MaintenanceHours Available

~20%

9Predictive Maintenance: Total Hours PdM/Total Maintenance ~Hours Available

9Planned Reactive Maintenance: Total Hours PRM/TotalMaintenance Hours Available

~20%

9Reactive Emer enc : Total REM Total Maintenance Hours

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Available

~

9Reactive Non-Emergency: Total RNEM/Total MaintenanceHours Available

~8%


Plant Availability: Available Time/ Maximum Available Time

Contractors: Contractors Cost/Total Maintenance Cost 35-64%


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What is PRIDE in Maintenance?


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eop e ea y ntereste n eve op ng xce enceIn



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eop e:

It is About You and Your People (Technicians,, , ,

Staff) and Top Leaders as well!



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It is Wanting, Desiring and Being Very

Maintenance Process.



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Something of Importance That We Want to Improve

and


What is PR DE in Maintenance?


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Learning About and Building the Skills

.

Developing Our Most Importance Resource;

Our PEOPLE!


What is PRIDE in Maintenance?

Excellence:


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ce e ce:Achieving Reliability and Maintenance Excellence toAchieve Total Operations Success . Success of the

Total Operation is THE GOAL

So What is

in


Maintenance to You?

Please Remember:


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,You Must Set the Example with

inMaintenance


Remember You Must Be a Salesman Too!


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RememberThat Nothing Happens Until

Somebody Sells

Something!


r. e o ey a s a ong me go


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Our Proven Approach is theFoundation of the new McGraw-Hill

Book By TMEI FounderRalph W. Pete Peters

72


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Results from an Assessment of theo a a n enance pera on

TMEI ase tudies


Assessment Deliverables to Achieve Validated Results


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1. Maintenance Excellence Strategy Team chartered to

facilitate world-class maintenance

2. A World-class maintenance strategy defined by The

Scoreboard for Facilities Management Excellence with arecommen e an o c on or mp emen a on

3. An in-depth assessment of current maintenance

4. Recognition of current successes

5. Develop and present PRIDE-in-Maintenance sessions to

crafts work force and other staff6. Recommendations for improvement to the current


ns a a on o



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7. Implement The CMMS Benchmarking System to measure

CMMS status, improvement actions & define

functionality gaps.

8. Results previewed with Maintenance Leaders first!!. repare a ecommen e mp emen a on an w

Tactical/Operations action plans and timelines

a) Define projected savings/benefits

b) Develop timeline for achieving results

11.We implement The Reliable Maintenance ExcellenceIndex to measure results. Note: This includes a


ocumen e proce ures or a a ex rac on.



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12. TheReliable Maintenance Excellence Index also validates

13. We define a Support Plan of Action for best practicesupport from The Maintenance Excellence Institute andour worldwide Alliance Team

14. Preliminary review of overall results and the plan by

Maintenance Leaders15. Written and oral presentation of results to Top Leaders and

Maintenance Leaders.

place to validate results: The Reliable MaintenanceExcellence Index!


Why The Maintenance Excellence Institute ?


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The Maintenance Excellence Institute v iews the in itial client interactions as theformation of a long-term alliance. Our success is contingent upon the success of eachof our valued clients. Our Alliance Members form the skills base for serving you withtodays most comprehensive and cost effective support for to tal maintenance and MRO

Alliances

Our breadth of experience allows us to understand your overall operation, your total

maintenance and storeroom operation; combining this into an overall solution for totaloperations success. Our geographical distance apart is not a limitation in todays electronicworld to rovide for term cost effective im lementation su ort.

materials management improvement.

Total

OperationsSuccess

We work for your validated results , not just deliverables or a report. The engagementwhether large or small is not successful unt il the solutions are implemented and validated.Three important deliverables validate results forevery client; a Scoreboard for MaintenanceExcellence, a CMMS Benchmarking System plus The Reliable Maintenance Excellence

ValidatedResults

n ex a e s op oor eve .

We will only be successful when we work as a team with each client, collaborating andsharing expertise and working side-by-side with cooperation and commitment. Our clientsteam will bring an in-depth understanding of its operation. We will bring our provenmethodology, valuable lessons learned and years of expertise in Maintenance Excellence

Collaboration,Cooperation,

Services, Operational Services and Training for Maintenance Excellence.

The Maintenance Excellence Institute believes in the basics, simplicity and innovationtoward profit-centered and customer-centered maintenance. We will view your operationand maintenance business as if it was our own. We never recommend solutions that arenot cost-justified and wi thout measurable results. The goal is to help you achieve and

Commitment

Profit and

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value from your current maintenance operation.

We guarantee at least at 10 to 1 return on your investmentwhen using our services and implementing our action plans.

Customer-Centered

Past Scoreboard Assessments & Support


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Anderson Packaging IL

Atomic Energy Canada (2 sites)

Cooper Tools/Cooper Industries

(9 plants)

Bases)

Boeing Commercial Airplane Group

-

DIMON International-NC & VA-4

sites

BP Texas City Refinery TX

Braun Medical-PA

General Foods-NY

GlaxoSmithKline-NC

BP Texas City Refinery-TX

Carolinas Medical Center-NC Great River Energy-ND

Heinz USA-OH-

Caterpillar (IL) Big Lots Distribution Centers-OH,

ucen ec no og es- s es

Marathon Oil -LA, IL,MI and TX (4sites)


, ,

Consolidated Thermoplastics (3 sites) e ar axx roup-

National Defense-PA

Past Scoreboard Assessments & Support


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Purolator-NC Rocketdyne Propulsion-CA (Div of

The Werner Company-PA, IL and

AL (3 sites)oe ng

Rockwell International-WI

Rohm & Haas-TX

Wyeth-Ayerst -VA (3 sites in U.S.)

Wyeth Medica (Ireland)

Weyerhaeuser-WA

University of NC-CH Facilities Services

Div (6 work units)

Universit of C-CH Buildin Services

NC Department of Transportation

(15 Division level shops & 100

county shops

PRIDE in Maintenance Sessions

EMCOR- VIOX Facilities Services-OH

(Contract Maintenance

National Gypsum-NY, GA & AL 3sites)

NYCOMED (Puerto Rico)

Provider) Western Regional Maintenance-NC Dept

of Health & Human Services (3 sites)

o aro orporat on-

Pratt & Whitney (Canada) Broward County Schools (FL)


Training for Worldwide Organizations


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Maintenance Excellence Case Studies


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The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level ResultsThe

Mainten

Case Study:University of North Carolina, Facilities Services Division


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The Facilities Services Division for the University of North Carolina-Chapel Hill (UNCFSD)providesthe facilities management operations for North Carolinas largest university campus with staffing ofover 1000 personnel from housekeeping, architectural design, construction/renovation, landscaping,ac es ma n enance an nven ory managemen .

UNCFSD purchased a Facilities Maintenance Management System (FMMS) in 1998 and uses

CMMS for plant maintenance within its Co-Generation plant maintenance operation. CMMS hasserved well over the past years since Co-Generation plant construction in the early 1990s. From the

, ,regard to warehousing operations, inventory management and purchasing modules for maintenanceand construction materials.

UNCFSD determined that it was time to evaluate how well their over facilities management

supply chain could take it into the 21st century. More demands for services were imminent withrecent passage of a $3.1 Education Bond Issue for construction for the overall UNC system of 16campuses plus community colleges.

The following engineering activities were provided:

Completed a comprehensive supply chain and maintenance needs analysis. This included

interviews with approximately 100 personnel at all levels of the organization to determine howMRO materials management and the FMMS was performing for the entire organization. Thisincluded both hourly and salaried positions.


with an economic analysis to see if the present system could be modified or upgraded toanswer future needs.

Case StudyUniversity of North Carolina, Facilities Services Division (Continued)


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The following facilities engineering services were provided: (continued)

Developed recommended MRO supply chain and maintenance best practices to provide thefoundation for achieving over $3,000,000 in direct savings and gained value.

Determined with an economic analysis to see if the present FMMS system could be modifiedor upgraded to answer future needs for a rapidly changing maintenance environment.

Provided a clear course for UNCFSD to pursue strategic, tactical and immediate operationalimprovements. Key areas included;

Plan for new organizational function to provide a central function for MRO materialsmanagement, shop level and construction planning function and improved procurementprocesses.

Plan of action for developing complete control and visibility of MRO inventories,

,establishment of shop level storage sites.

Plan for upgrading existing FMMS with functionalities for more effective MRO materialsmanagement and planning.

,planning positions

Standard operating procedures for a UNCFSD Facilities Management Excellence Index tomeasure direct savings and gained value of all operational improvement initiatives.

Provided guidelines for continuous measurement of strategic best practice improvement


via The Scoreboard for Facilities Management Excellence and The FMMS BenchmarkingSystem

Case StudyRockwell International (now AMERITOR)


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The Rockwell International (Rockwell) site in Wisconsin manufactures large transmissions and axle assembliesfor heavy construction and transportation equipment.

Rockwells maintenance program was in desperate need of effective storeroom operations, work management,PM execution and lack of even basic CMMS functionality was creating a serious challenge for effective plantoperations throughput. Effective maintenance management was a serious missing link.

To get immediate help before catastrophic failures, Rockwell engaged Advanced Technology Services Inc(ATS) to manage maintenance, improve/operate the storeroom, establish CMMS and to provide a maintenanceplanner via contracted services. This project was a partnering effort between MEI staff and ATS to helpRockwell implement essential best practices within this highly unionized environment.

ATS determined that it was necessary get basic practices in place so that their contract services could perform.More demands for equipment reliability, increase uptime, better quality from precision machining centers,

,maintenance excellence a business survival opportunity.

The following engineering services to support the Rockwell manufacturing plant were provided:

Completed review of existing asset database on legacy system, prepared and migrated asset data to.

Developed modernization plan for storeroom, purged old parts from existing storeroom and developedparts database for CMMS after complete inventory of good parts.

Relocated storeroom to new location in center of plant and established effective parts service


Supported start up of contract planner position, new storeroom attendants and measurement process forContinuous Reliability Improvement

Case StudyBoeing Commercial Airplanes Group


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The Boeing Commercial Airplanes Group (BCAG) is a division of The Boeing Company, the worlds largestmanufacturer of commercial jetliners and military aircraft and the largest NASA contractor.

As the largest producer of commercial jetliners, BCAG operates four strategic manufacturing centers in Washingtonas well as locations in Wichita, Kansas and Long Beach, California.

e ac es sse anagemen rganza on oca e n ea e as cen ra ze respons y antechnical leadership of facilities management and maintenance operations in all regions.

Through their Advanced Maintenance Process (AMaP), FAMO was implementing a progressive and comprehensivefive-year maintenance excellence initiative throughout BCAG and pursuing the implementation of world-classmaintenance practices.

FAMO leaders were very committed to improving, standardizing and supporting corporate-wide maintenance bestpractices and having a system in place to measure results.

After introducing the AMaP program at BCAG, FAMO leaders needed a method to benchmark results, measurebenefits, identify obstacles to progress, and determine improvements needed to make AMaP more effective.

FAMO needed to review the best practice elements of their AMaP program and to develop a Boeing Scoreboard forFacilities Maintenance Excellence.

In turn, the internal benchmarking guide that evolved would be used to provide an objective evaluation of AMaPprogress at each region down to group (maintenance manager) and team first line supervisor) levels.

and working with the FAMO team to determine the key AMaP evaluation criteria to be added.

The Boeing Scoreboard for Facilities Management Excellence was developed &define the BCAG maintenanceexcellence strategy, providing evaluation criteria to measure implementation progress at all levels in FAMO. A craftsurvey was developed and conducted with over 3000 members of the craft work force.


Case StudyBoeing Commercial Airplanes Group (continued)


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Results fromthis project included: Boeing Scoreboard for Facilities Maintenance Excellence developed

Developedplan of action for assessments in all regions (over50 site operations)

Developed survey forcrafts, planners, and customers of maintenance (technical work force over 3,000)

oe ng core oar or ac es a n enance xce ence assessmen con uc e n a regons:

Developed ratings and specific improvementopportunities forgroup leaders and teamleaders

Identified various sites as centers of excellence for sharingof best practices

Completedsurveyand compiledresults fromcrafts, planners, and customers

FAMO o eration evaluatedwith The Scoreboard for Facilities Mana ement Excellence as baseline uide

Improvement to existing planningand scheduling process developed

Improvements to corporate-wide performance measurementprocess recommended

As a result of this project FAMO had well-defined strategy for maintenance excellence and support plan for implementation. Italso had a process established to measure implementation progress and ROI. Key results included:

times the cost for implementation

Clearlydefineda maintenance excellence strategy for the Boeing Scoreboard for Facilities Management Excellence

Establisheda currentevaluation ofAMaP progress ineach region

Conductedan overall evaluation of FAMO operations

Refined maintenance performance measurement process and readied a Facilities Management Excellence Index forimplementation

Put into place a world-class CMMS and standard bestpractices for implementation atall sites

Developed a method forgreater accountability and productivity of all craft labor and material resources

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level ResultsThe

Mainten

Case StudySiderar SAIC

Sid SAIC i th l t t l i A ti ith d ti l l f t illi t


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Siderar SAIC is the largest steel company in Argentina with a production level of over two million tons per year.Siderar operates seven plants within the province of Buenos Aires.

It is a fully-integrated producer that uses iron ore and coal as raw materials to produce coke, pig iron, and steelto manufacture hot and cold rolled sheet and coated products.

Siderar wanted to upgrade their in-house developed Computerized Maintenance Management System(CMMS), consider the use of SAP-R/3 or implement another CMMS system-CMMS throughout its seven

plants. They also wanted to improve corporate-wide maintenance best practices, have a system in place to measure

,efforts.

Siderar SAIC needed a review of their total maintenance operation at all seven plants and to definerecommended best practices and functional requirements for a world-class CMMS.

Working with the Siderar team, a solution was developed that included a Scoreboard for Facilities ManagementExcellence assessment and specific recommendations for improvements at all plants, the definition of functionalrequirements for a future CMMS, and a recommended performance measurement process.

Results over the course of the project include:

Developed functional requirements for a corporate-wide CMMS

EvaluatedSAP-R/3 plant maintenance and procurement module and ROI

EvaluatedCMMS and ROI as the option to SAPs PlantMaintenance module Establisheda recommended Siderar CMMS strategy

Recommended CMMS vendor: CMMS


Established CMMS implementation plan and a Sidera CMMS Benchmarking System to measureprogress

Case StudySiderar SAIC (continued)


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Conducted benchmark assessmentat the seven Siderar plants

Developed a Scoreboard for Facilities Management Excellence rating for each

Defined specific improvement opportunities of over $4million

Developed improvementto existingplanningandschedulingprocess

Introduced work measurementtechniques

Developed measurementof planningeffectiveness Defined improvedpreventive/predictive maintenance (PM/PdM) opportunities

Revised and upgradedPM/PdM procedures

Increasedcompliance to PM/PdM schedules

Definedneed for improved storeroomand shop operations

Developed need for strategic storeroommaster planning

Implemented newstoreroomprocedures

Improved inventory control andaccuracy

Developed a corporate-wide performance measurementprocess

Established performance goal for each metric

ocumene e process w wr ens an ar proce ures

Established the Siderar Facilities Management Excellence Index (MEI)

Siderar SAIC was able to develop the best approach to CMMS and achieve their corporate-widemaintenance goals with a method to measure results. Key outcomes included:


A corporate-wide CMMS strategy developed to integrate a best-of-breed CMMS with SAP-R/3 financials

Case StudySiderar SAIC (continued)


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A Siderar CMMS Benchmarking System in place to measure CMMS implementationprogress

An overall maintenance excellence strategy with strategic, tactical and operational actionsestablished as a resultof the total maintenance operations assessment

Maintenance performance measurementprocess established

A world-class CMMS and standard best practices in place for implementation at all sevenplants

A method for greateraccountability and productivity of all craft labor and material resources

A Siderar Scoreboard for Facilities Management Excellence established to periodicallyevaluate overallmaintenance excellence progress ateach of the seven plants


Case StudyNC Dept. of Transportation, Div. of Highways Equipment Unit

The NC DOT directs plans constructs maintains and operates the second largeststate maintained


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The NC DOT directs, plans, constructs, maintains and operates the second largest state-maintainedtransportation system in the nation. The Equipment Unit maintains a fleet of over 20,000 pieces of equipmentfor highway repair and construction via a central depot operation and over 100 field shops.

Due to the scope of NCs transportation system and growth of overall highway maintenance requirements,continuous improvement of fleet management was identified as being essential to the NCDOH mission. Acomprehensive Equipment Management System and other improvements were needed to support this

extensive fleet operation where annual replacements alone ranged from 20 to $40 million per year. The Equipment Management System which was implemented statewide over a 2 year period provided the

following:

A computerized system for equipment inventory, parts inventory, repair history, work control, planning/scheduling,performance reporting and more effective preventive maintenance

A comprehensive statewide renewal of the PM program that included operator level PM tasks

qupmen ervces anners; over panners seec e , ra ne an ns a e n seec e s ops or mnor ma or repa rand PM scheduling, providing estimated repair time, shop schedules, parts coordination and increased customer service tofield operations

Improved PM effectiveness that increased equipment uptime, increased equipment life and reduced annual equipmentrepair costs by over $5,000,000 per year

Improved parts service and overall management in central warehouse and at shop sites with a net reduction of over$2,000,000 per year in parts inventory costs

Improved planning and customer service to field operations with increased craft wrench time valued at over $3,000,000 peryear


, ,

A pioneering effort for fleet management, viewed by numerous agencies from US and around the World

Case StudyConsolidated Stores/BigLots Inc.

Consolidated Stores Corporation which is now BigLots Inc is one of Americas leading value-specialty retailers


91/94

Consolidated Stores Corporation which is now BigLots Inc. is one of America s leading value-specialty retailers. Their Closeout Division operates 1,230 stores in 43 states, doing business as Odd Lots, Big Lots, Mac Frugels, and

Pic N Save. Their Toy Division consists of 1,320 toy stores in all 50 states, Puerto Rico and Guam for KB Toys, KBToy Works, KB Toy Outlet, and KB Toy Express.

Consolidated Stores wanted to establish standard maintenance best practices and significantly improve maintenanceoperations in all of its four distribution centers (DCs) totaling over seven million square feet. They also wanted to

have these company-wide maintenance best practices available for use in new and future DCs. Consolidated Stores desired to conduct a Scoreboard for Facilities Management Excellence assessment at two pilot

.

Results from the assessments indicated the need for an improved Computerized Maintenance Management System(CMMS), better preventive maintenance (PM), improved planning between DC operations and maintenance, improvedstoreroom operations, improved shop and storeroom facilities, and the need for a method to measure maintenanceperformance and service.

A Consolidated Stores Maintenance Excellence Strategy Team was chartered to provide direction and support toimplementation of the recommendations and to define a common measurement process to validate projected savings.

A combined team effort with all levels of Consolidated staff significantly contributed to a true Consolidated Storessolution.

Conductedfinal selection and implementation ofa newCMMS atfour DCs

Establishedsystemoncentral server for exclusive usebymaintenance DC sites

Trainedcrafts people and DC operations personnel in PRIDE in Maintenance topics


s a s e enc mar ng ys em o ga n u u za on

Case StudyConsolidated Stores/BigLots Inc. (continued)

Implemented a planningand scheduling process ateach DC


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Implemented a planningand scheduling process ateach DC Developedcorporate-wide planner position description/grade Selectedand trainedone plannerand backup per DC in Effective Maintenance Planning and Scheduling Supported planners with shop level training

Initiated improvedPreventiveMaintenance Revisedand upgradedPM procedures atall sites Improved supportfromDC operations staff

Improved storeroomandshop operations Developed strategic storeroommaster plan mprove nven orycon ro an accuracyw a co e app ca ons Established modernized central shop and central storeroomatColumbus,OH DC Established new storeroomatMontgomery, AL DC

Establishedwritten standardoperating procedures for use atall sites Work order and work control Planningand scheduling Storeroomoperations andparts procurement

Implemented corporate-wide performance measurementprocess Consensus oncorporate-wide metrics (13) Performance goal for each metric established Facilities Management Excellence Index (MEI) establishedfor eachDC

Summary: Corporate-wide goals and measurable results achieved as follows:

1. Development/implementation of a corporate-wide strategic maintenance excellence plan2. Common CMMS and standard best practices in place and ready to apply at future DCs

3. Greater accountability and productivity of all craft labor and material resources

4. A new DC uickl brou ht online with effective maintenance ractices


5. A renewed focus on PM and planning coordination with DC operations

6. Storeroom modernization and improvement and measurable results 2 times original projections

Case StudyMarathon Oil Company

Marathon Oil Company (Marathon) has four major refineries for gasoline and oil products in four states and


93/94

Marathon Oil Company (Marathon) has four major refineries for gasoline and oil products in four states anda corporate office in Findlay, Ohio.

Marathon purchased a Computerized Maintenance Management System (CMMS) in 1987 and is now

particularly with regard to the warehousing and purchasing modules for maintenance control.

Marathon determined that it was time to evaluate how well this system was working and what new

technologies with regard to a CMMS system could take it into the 21st century. More demands forequipment history, regulatory compliance, and real-time cost data had made this topic a top priority forMarathon.

The following engineering services were provided:

Completed a comprehensive needs analysis for four refining sites. This included interviews witha roximatel 200 ersonnel at all levels of the or anization to determine how the CMMS wasperforming for the entire organization. This included both hourly and salaried positions.

Documented all systems that interfaced with the CMMS for future compatibility.

Determined with an economic analysis to see if the present system could be modified or upgraded toanswer Marathons future needs fora ra idl chan in maintenanceenvironment.

Analyzed all CMMS vendors to see what technologies could best fit into Marathons future plans. It

was determined that reliability was the key for future major cost reductions.

Analyzed the best maintenance practices to provide the foundation for a CMMS.


rov e a c ear course or ara on o pursue.


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