measuring and improv
TRANSCRIPT
Measuring and Improving Measuring and Improving Maintenance PerformanceMaintenance Performance
Salih O. DuffuaaSalih O. Duffuaa
Systems Engineering DepartmentSystems Engineering Department
King Fahd University of Petroleum and King Fahd University of Petroleum and MineralsMinerals
Presentation PlanPresentation Plan
IntroductionIntroduction Evolution of Maintenance ManagementEvolution of Maintenance Management Why MeasureWhy Measure Performance MeasurementPerformance Measurement
– Structured Auditing Structured Auditing – Key performance indicatorKey performance indicator– BenchmarkingBenchmarking
Improvement processImprovement process Case StudiesCase Studies
Role of MaintenanceRole of Maintenance Maintenance is defined as the Maintenance is defined as the
combination of activities by which combination of activities by which equipment, assets or a system is equipment, assets or a system is kept or restored to a state in which kept or restored to a state in which it can perform its designated it can perform its designated function. It is an important factor in function. It is an important factor in product or service quality and can product or service quality and can be used as a strategy for successful be used as a strategy for successful competitioncompetition
IntroductionIntroduction
PLANNING ORGANIZING
Maintenance Process
Maintenance strategy Maintenance Load Forecasting
Maintenance Capacity
Maintenance Organization
Maintenance Scheduling
Process design
Standards Performance Measurement
Project Management
MONITOR
FEEDBACK
CONTROL
Work control Material control Inventory control Cost control Managing for quality
INPUT OUTPUT
Operational
Machines
Equipment
&
Facilities
Labor
Equipment
Management Spares
Variations in
Maintenance
Demand
* Scheduling
Maintenance Versus Maintenance Versus Organization ObjectivesOrganization Objectives
The objectives and goals of an The objectives and goals of an organization depends on the organization depends on the organization state, strategy and type of organization state, strategy and type of business. Some objectives arebusiness. Some objectives are– Meet or exceed customer satisfactionMeet or exceed customer satisfaction– Maximizing profit, Meet set targetsMaximizing profit, Meet set targets– Meet set safety standard, Meet set safety standard, – Zero product defectZero product defect
Does Maintenance affect these goalsDoes Maintenance affect these goals??
Evolution of Maintenance Evolution of Maintenance ManagementManagement
Prior to 50Prior to 50thth: Necessary evil: Necessary evil 50-70 : Preventive maintenance 50-70 : Preventive maintenance 7070thth : Life cycle costing, RCM and : Life cycle costing, RCM and
Productive maintenance. Productive maintenance. 80 : TPM an RCM80 : TPM an RCM 9oth-date: Strategic view of 9oth-date: Strategic view of
maintenancemaintenance
Why MeasureWhy Measure
What can be measured will be What can be measured will be understood better.understood better.
What can be measured can be assessed.What can be measured can be assessed.
What can be measured can be managed. What can be measured can be managed.
What can be measured can be What can be measured can be improved.improved.
Measuring Maintenance Measuring Maintenance PerformancePerformance
What to measure? What to measure?
How to measure?How to measure?
What to do with measurement What to do with measurement output?output?
Continuous ImprovementContinuous Improvement
Develop Measurement
System (1)
Evaluate Maintenance System (2)
Identify most deficient areas (3)
Identify root causes of deficiencies (4)
Develop and implement corrective and preventive
actions (5)
Measurement SystemMeasurement System
Structured AuditStructured Audit
Performance IndicatorsPerformance Indicators
Benchmarking ( can be utilized by Benchmarking ( can be utilized by both)both)
Structured Audit ApproachStructured Audit Approach
What is an auditWhat is an audit
Standard for the audit ( factors for Standard for the audit ( factors for audit)audit)
Organization of the auditOrganization of the audit
Expected out put of the auditExpected out put of the audit
Structured AuditStructured Audit
The American Heritage Dictionary defines audit as: “an The American Heritage Dictionary defines audit as: “an examination of records or accounts to check their accuracy”.examination of records or accounts to check their accuracy”.
Thomas and Henke (1989), “Auditing is a process in which one Thomas and Henke (1989), “Auditing is a process in which one person verifies the assertions of an other”.person verifies the assertions of an other”.
Carmichael et al (1996), defines audit as : “Auditing is an Carmichael et al (1996), defines audit as : “Auditing is an independent investigation of some particular activity”.independent investigation of some particular activity”.
(http://www.columbia) defines an audit as a formal or official (http://www.columbia) defines an audit as a formal or official examination and verification of the activities of an organizational examination and verification of the activities of an organizational unit, system, function, or other aspect of the organization's unit, system, function, or other aspect of the organization's operations. It may include a review of (1) economy and efficiency operations. It may include a review of (1) economy and efficiency of operations; (2) effectiveness in achieving program results; and of operations; (2) effectiveness in achieving program results; and (3) compliance with laws, regulations, and other rules. The audit (3) compliance with laws, regulations, and other rules. The audit results in a written report results in a written report
Standard for the AuditStandard for the Audit
Factors/activities to be examined.Factors/activities to be examined.
Standard for each factor.Standard for each factor.
Aggregation of sub-factors and Aggregation of sub-factors and factors.factors.
Audit FactorsAudit Factors
1.1. Strategic ManagementStrategic Management
Maintenance mission and objectivesMaintenance mission and objectives Alliance of process with mission and Alliance of process with mission and
objectives.objectives. Values Values Performance measurementPerformance measurement Effective strategiesEffective strategies Strategy assessmentStrategy assessment
Audit FactorsAudit Factors
2. Organization and staffing2. Organization and staffing Organization structureOrganization structure Job descriptionJob description responsibilities and supervisionresponsibilities and supervision Polices and procedures Polices and procedures Shops organizationShops organization
3. Human resources3. Human resources Shop manningShop manning Employee motivationEmployee motivation
Audit FactorsAudit Factors
4. Training4. Training Management trainingManagement training Planner training Planner training Craft trainingCraft training
5. Management control and budget 5. Management control and budget 6.1 Budget planning 6.1 Budget planning Reporting and feedbackReporting and feedback Effective controlEffective control
Audit FactorsAudit Factors 6. Work order planning and scheduling 6. Work order planning and scheduling
Priority systemPriority system Work order system and proceduresWork order system and procedures Emergency & shutdown schedulingEmergency & shutdown scheduling Planning proceduresPlanning procedures
7. Facilities and resources7. Facilities and resources 8. Stores and material 8. Stores and material 9. Preventive maintenance and 9. Preventive maintenance and
equipment equipment historyhistory 1o. Engineering Condition monitoring1o. Engineering Condition monitoring
Audit FactorsAudit Factors
11. Information technology11. Information technology 12. Performance analysis and 12. Performance analysis and
appraisalappraisal 13. Safety in maintenance13. Safety in maintenance 14. Maintenance and the Environment14. Maintenance and the Environment The audit program we are using has The audit program we are using has
90 questions distributed over the 90 questions distributed over the above 14 main factors. above 14 main factors.
Audit Plan and ExecutionAudit Plan and Execution
Examine the audit program to Examine the audit program to reflect plant special characteristics.reflect plant special characteristics.
Form audit team from consultant in Form audit team from consultant in plant personnel.plant personnel.
Regular meeting.Regular meeting. Corrective and preventive actions.Corrective and preventive actions.
A case of a Process Plant in Saudi A case of a Process Plant in Saudi Arabia : Audit Raw ScoreArabia : Audit Raw Score
Factor number
Score (Si)
Ideal score (Li)
Factor number
Score (Si)
Ideal Score (Li)
1 2 3 4 5 6 7
7.00 6.20 6.75 7.33 7.25 8.00 7.14
10 10 10 10 10 10 10
8 9
10 11 12 13 14
9.67 6.70 7.82 7.80 6.00 3.00 8.00
10 10 10 10 10 10 10
Factors Weight Using AHPFactors Weight Using AHP
Factor number
Normalized weight
Factor number
Normalized weight
1 2 3 4 5 6 7
0.52 0.117 0.078 0.026 0.117 0.104 0.063
8 9
10 11 12 13 14
0.065 0.039 0.065 0.052 0.091 0.052 0.078
Audit AnalysisAudit Analysis
10
Si Si = C.A.I. Index Audit Composite
14
1 14
1
14
1
i i
i i
i i w
I w
w
PWDd
di
i
ii
1
14100
d wiI w S w I S i i i i i i i ( )
ABC on the TableABC on the Table
Factor number
Percentage weighted deviation
Cumulative percentage weighted deviation
Factor number
Percentage weighted deviation
Cumulative percentage weighted deviation
2 13 12 5 3 6 7
0.152 0.125 0.125 0.110 0.087 0.071 0.062
0.152 0.277 0.402 0.512 0.599 0.670 0.732
1 14 10 11 4 8
0.053 0.053 0.048 0.039 0.024 0.008
0.785 0.838 0.886 0.925 0.949 1.00
Improvement ActionsImprovement Actions Factor 2: Organization and StaffingFactor 2: Organization and Staffing
– Document procedures for PMDocument procedures for PM– Supervisor technician ratioSupervisor technician ratio– Establish a suitable planner-worker ratio. Establish a suitable planner-worker ratio. – Decentralize some of the maintenance Decentralize some of the maintenance
activities.activities.
Factor 13: Safety in maintenanceFactor 13: Safety in maintenance– Include safety within maintenance processInclude safety within maintenance process– Enforce safety rulesEnforce safety rules– Training program for maintenance personnel.Training program for maintenance personnel.
Performance MeasuresPerformance Measures
An alternative or integrated An alternative or integrated approach with structured auditing ?approach with structured auditing ?
It links processes to objectives.It links processes to objectives.
Performance MeasuresPerformance Measures
There are literally hundreds of potential indicatorsThere are literally hundreds of potential indicators ““Appropriate” indicators depend on many factors, Appropriate” indicators depend on many factors,
such assuch as– Level in the organization to use the informationLevel in the organization to use the information– Existing data collection systems, and how easily modifiedExisting data collection systems, and how easily modified– Staff availability to develop/maintain systemsStaff availability to develop/maintain systems– Demands of managers &teams for the information, and Demands of managers &teams for the information, and
their level of sophistication (foreman vs. MBA)their level of sophistication (foreman vs. MBA) Frequency of reporting also is situation dependentFrequency of reporting also is situation dependent Stratification options by plant, department, Stratification options by plant, department,
machine, product line, etc., are important machine, product line, etc., are important
Managerial ClassificationManagerial Classification
Macro IndicatorMacro Indicator– Macro-indicatorsMacro-indicators (for upper (for upper
management, primarily)management, primarily)
Micro IndicatorMicro Indicator– Micro-indicatorsMicro-indicators (for lower levels of (for lower levels of
management)management)
Macro IndicatorMacro Indicator
maintenance expense dollars as a maintenance expense dollars as a percent of replacement asset value.percent of replacement asset value.
maintenance expense dollars per unit maintenance expense dollars per unit producedproduced
maintenance expense dollars as a maintenance expense dollars as a percent of plant controllable expensespercent of plant controllable expenses
regulatory compliance indicatorsregulatory compliance indicators Productive capacity Productive capacity
Micro-IndicatorMicro-Indicator
maintenance budget compliance maintenance budget compliance (budget vs. expense)(budget vs. expense)
monthly expense dollars (by monthly expense dollars (by equipment type)equipment type)
percent overtime (3-9% sometimes percent overtime (3-9% sometimes cited as ideal)cited as ideal)
percent emergency workpercent emergency work
System ClassificationSystem Classification
Input Measures Primarily Cost Input Measures Primarily Cost MeasuresMeasures
Output measuresOutput measures
Within The System MeasuresWithin The System Measures
Input MeasuresInput Measures Input Measures are Mostly Related Input Measures are Mostly Related
To CostTo Cost Labor : Cost of trades, semi-skilled Labor : Cost of trades, semi-skilled
etcetc Materials and sparesMaterials and spares ContractsContracts Shop ServiceShop Service Equipment RentalsEquipment Rentals Maintenance OverheadMaintenance Overhead Company OverheadCompany Overhead
Output MeasuresOutput Measures
Availability : Measure of UptimeAvailability : Measure of Uptime Reliability : Mean-time-between-Reliability : Mean-time-between-
failurefailure MTBF = S-d/f , f is number of failuresMTBF = S-d/f , f is number of failures
Mean Time To Repair: Measure of Mean Time To Repair: Measure of Duration of RepairDuration of Repair
MTTR = d/fMTTR = d/f
Utilization = Scheduled Time/C TUtilization = Scheduled Time/C T CT = Calendar TimeCT = Calendar Time
Output MeasuresOutput Measures Process Rate (PR) : Measure of the Process Rate (PR) : Measure of the
Equipment Cycle Time in The ProcessEquipment Cycle Time in The Process PR = Ideal Cycle Time/Actual Cycle timePR = Ideal Cycle Time/Actual Cycle time
Quality Rate (QR) : Measure of Quality Rate (QR) : Measure of equipment Precisionequipment Precision
Total Produced - Rejected/Downgrades/ TotalTotal Produced - Rejected/Downgrades/ Total
Overall equipment EffectivenessOverall equipment Effectiveness OEE = A* PR *QROEE = A* PR *QR
Productive capacityProductive capacity OEE * UtlizationOEE * Utlization
Measures Within The Measures Within The SystemSystem
Work Distribution : Time Spent in each Work Distribution : Time Spent in each work categorywork category
Delays : Time spent waiting for Delays : Time spent waiting for instructionsinstructions
parts, travel,breaks, Start and Quitsparts, travel,breaks, Start and Quits Compliance : Measures to Track Compliance : Measures to Track
Compliance with various plans, such as Compliance with various plans, such as PM, Shutdown schedules etc.PM, Shutdown schedules etc.
Measures Within The Measures Within The SystemSystem
Backlog : Amount of Work Planned but Backlog : Amount of Work Planned but not Completed by Plant, Area, Craft, not Completed by Plant, Area, Craft, etcetc
Failure Analysis: Tracks improvement Failure Analysis: Tracks improvement analysis, such Number of New PM analysis, such Number of New PM Routines, Number of Root Cause Routines, Number of Root Cause Analysis of Breakdowns Undertaken.Analysis of Breakdowns Undertaken.
Indicators Selection Indicators Selection CriteriaCriteria
Reflect business objectives.Reflect business objectives.
Impact customer satisfaction.Impact customer satisfaction.
Quality of product or serviceQuality of product or service
Describe the performance of key process.Describe the performance of key process.
Performance of critical equipment.Performance of critical equipment.
Safety and environment.Safety and environment.
Balance Scorecard Balance Scorecard ApproachApproach
FinancialFinancial
Customer Customer
InternalInternal
Learning and growthLearning and growth
Improvement ApproachImprovement Approach
Identify areas were goals are not metIdentify areas were goals are not met Use Pareto chart to prioritize areasUse Pareto chart to prioritize areas Root cause analysisRoot cause analysis Corrective and preventive actionsCorrective and preventive actions Implement actionsImplement actions Measure and checkMeasure and check
BenchmarkingBenchmarking Formal DefinitionFormal Definition
BenchmarkingBenchmarking is the continuous, systematic is the continuous, systematic processprocess of measuring our products, services, and of measuring our products, services, and practices against the toughest competitors or practices against the toughest competitors or those companies recognized as industry leaders.those companies recognized as industry leaders.
Working DefinitionWorking DefinitionBenchmarkingBenchmarking is a basis of establishing rational is a basis of establishing rational
performance goals through the search for best performance goals through the search for best industry practices that will lead to superior industry practices that will lead to superior performance.performance.
A Related DefinitionA Related DefinitionBenchmark:Benchmark: An industry standard An industry standard Descriptive Benchmarks or PracticesDescriptive Benchmarks or Practices Quantitative Benchmarks or Performance Quantitative Benchmarks or Performance
MeasurementsMeasurements
Benchmarking As An Benchmarking As An Improvement ToolImprovement Tool
How Benchmarking Makes Possible How Benchmarking Makes Possible ImprovementsImprovements
The gap between internal and The gap between internal and external practices creates the need external practices creates the need for improvementfor improvement
Understanding industry best practices Understanding industry best practices identifies what you must improve.identifies what you must improve.
Externally benchmarked practices Externally benchmarked practices developed from others give a picture developed from others give a picture of the endpoint after improvement.of the endpoint after improvement.
Types of BenchmarkingTypes of Benchmarking
Internal Internal – Similar processes (data is available).Similar processes (data is available).
ExternalExternal– Type of industry (competitors)Type of industry (competitors)– Best in industry (non-competitors)Best in industry (non-competitors)
Benchmarking ProcessBenchmarking Process
BENCHMARKING PROCESS
BENCHMARK METRICS
BENCHMARK PRACTICES
BENCHMARK GAP HOW MUCH WHERE WHEN
HOW TO CLOSE THE GAP IMPROVED KNOWLEDGE IMPROVE PRACTICES IMPROVED PROCESSES
MANAGEMENT
COMMITMENT
ORGANIZATION
COMMUNICATION
EMPLOYEE
PARTICIPATION
SUPERIOR
PERFORMANCE
Benchmarking as a Process of Benchmarking as a Process of ImprovementImprovement
Know your own operation, both its Know your own operation, both its strengths and weaknesses.strengths and weaknesses.
Know those industries that excel at the Know those industries that excel at the maintenance processes used in your maintenance processes used in your operation, including competitors, sector operation, including competitors, sector leaders, and those in other industriesleaders, and those in other industries
Set challenging targets for your Set challenging targets for your maintenance performance measures; maintenance performance measures; incorporate the best practicesincorporate the best practices
Measure results and strive continually for Measure results and strive continually for superior performancesuperior performance
Key Factors for Key Factors for SuccessSuccess
Management commitment for Management commitment for improvement.improvement.
Create a culture of Maintenance Create a culture of Maintenance Kaizen.Kaizen.
People motivation, growth and People motivation, growth and continuous learning.continuous learning.
Quality circle for process improvementQuality circle for process improvement Reward based performance.Reward based performance. Technology as a means for enabling.Technology as a means for enabling.
ConclusionConclusion
Maintenance Should managed as Maintenance Should managed as a a business unit.business unit.
Maintenance performance must be Maintenance performance must be aligned with company strategic aligned with company strategic directions.directions.
Three approached for Three approached for improvement are improvement are presented- presented- Structured audits, Structured audits, Performance Performance Indicators and Indicators and Benchmarking.Benchmarking.
ConclusionConclusion
Culture of continuous Culture of continuous improvement improvement (C.I) must be (C.I) must be created to sustain C. I. created to sustain C. I.
Leadership and management Leadership and management commitment are key to creating the commitment are key to creating the
culture of C.I.culture of C.I.
Thank you for your patienceThank you for your patience
Any Questions or commentsAny Questions or comments..