reliability program approval presentation_

Chad Broussard Sr. Staff Engineer, Reliability March 2012

2Restricted Confidential – Business Information

Reliability Centered Maintenance in CPPL

RCMRCM

ReactiveReactive Time-BasedTime-Based Condition-BasedCondition-Based ProactiveProactive

•Small items•Non-critical•Inconsequential•Unlikely to fail•Redundant

•RCFA identified•Age exploration•FMEA identified•Acceptance testing

•Failure pattern known•Subject to wear out•Consumable replacement

Time Based Failures Cover 8% to 23% of failures.

•Random failure pattern•Not subject to wear•PM will not prevent these failures!

Condition Based Failures Cover 77% to 92% of failures

5% of work

35% of work

50% of work

10% of workGoals:


What is Reliability?

Good Design

Quality Construction

Excellence in Operations

Excellence in Maintenance

Inspections and Analysis

Reliability is the sum of these 5 elements. Therefore, we all own reliability!



RCMRCM

Condition-BasedCondition-Based

50% of work

Starting place for this decision moment:• Critical rotating equipment and engines• Gear boxes• Lubrication• Related motors


RCM Technologies Provided Vibration Data Collection

• Pipelines (460+ Most Critical Assets)

• Terminals (20 – 40 Most Critical Assets)

Oil Sample Collection• Monthly (Engines)

• Quarterly (Gearboxes and Large Oil Systems)

Repair and Installation Standards and Specifications • Must go out in 2012 to all facilities.

Other Technologies• Ultrasonic

• Electrical Testing

• IR Thermography


Analysis and Reporting Details Vibration Analysis & Oil Analysis, Reporting w/recommendations

Website Dashboard Available for all Assets • Quickly Monitor & Review Asset Status

• High Level

• Technical Detailed Reports

• Vibration Analogs -> SCADA-> PI-> Reliability Team


SCADA + Cloud Technology


Mobile Diagnostic System

EASY INSTALLATION

RAPID CONFIGURATION

CLEAR DIAGNOSTICS

NEAR REAL-TIME ONLINE ACTIONABLE DIAGNOSTICS


Network and Communications Flexibility

Communications with SAP/CMMS SCADA / PI 2010Reliability Team


RCM – Phased Approach

Outsourced Data Collection, Analysis &

Recommendations

Eng. Services Review and

Work Request

Rotating Equip. Leads

Plan & Perform Work

Phase I

Outsourced & Auto Data Collection

Eng. Services Analysis, Recommendations & Request (add RE in year

three)

Planners & Schedulers (will have to

identify resources –team working this)

Rotating Equip Leads Perform

Work

Phase II

Auto Data Collection & Lubricants

Program

Planners & Schedulers

Rotating Equip Leads Assess

Data & Perform Work

Phase III

Eng Services Analysis, System Maintenance

and Program Evolution



$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0

Millions

Inst

rum

enta

tion

Pipes

Rotatin

g Equip

Unknown

Tanks

Light

ing

Elect

rical

Safety

Buildin

gs

Facili

ties

Boilers

Mis

c

Mar

ine

Maint $/YR

A portion is electric motors for rotating equipment

A portion is critical rotating equipment and engines

Numbers have some amount of uncertainty

App. $3.2MM/yr


Economic Drivers

Rotating Equipment et al$3.2MM/YR

Electrical Motors$1.2MM/YR

Actual Yearly Breakdown Maintenance Costs

• 60% of the spend is Pipelines• 40% of the spend is Terminals

• East GC Terminals has already put in place a contract program to stabilize their spend or it would be higher


Goals and Assumptions Goal: Reduce spend by 65% over a five year period and sustain

• Fully expect a $2 MM/year reduction in spend when mature

AssumptionsP10 case: 20% reduction in cost per year

P50 case: 30% reduction in cost per year

P90 case: 35% reduction in cost per year

13% Discount rate used

Program Costs• Contractor Costs: $1.2MM +/- 20%

• Additional Reliability Eng. in year 3


Impact to Operations CFR pricing came in at 1.25MM versus .5MM

Great Idea Poor Business Case

Discussion with Todd Tullio• Condition Based Monitoring Technicians - Does not meet 4 part qualifications for O/Q

qualification.

• Pipeline and Hazardous Materials Safety Administration – Subpart G –Qualification of Pipeline Personnel 195.501 (a) (b) 1,2,3,and 4.


NPV & Tangible Benefits

Free-up resources for

more value added

condition driven

maintenance(↓$)

Optimized PdM

Technologies &

Frequency(↓$)

Reduce Non- Value Added

time driven maintenance(↓$)

SAP/CMMS Structure: Optimum Data, PM Optimization 40%, Awareness Training, Source & Failure Codes ID

Criticality

Assessm

ents Improved

Improved Operator Safety

Operator Safety

One size does n

ot fit all

due to criticality

ratings (↓$)

Maintenance & Reliability Manual – Unity, Governance & Accountability w/RACI allocations to each job function.


East Gulf Coast Terminals Division 2010 experienced a Equipment Breakdown Cost of $1MM – $1.2MM in one

year.

Implemented Vibration Program in Early 2011.

Experienced no unscheduled breakdowns after vibration program was implemented.

Able to perform acceptance testing.

Repaired old equipment to expected standards (w/o new replacement) to insure optimum operation.

End Results – Alvin Brass and Olvice Greenwood are very happy with the success of their new vibration program.


Cost DistributionPipeline and Terminal Divisions

Pipeline Division (June 2012 –Dec. 2012 $180,000 = TOTAL

PIPELINE BUSINESS

$36,000 = EACH PIPELINE

DIVISION

Terminals Division (June 2012-Dec. 2012) $120,000 TOTAL

TERMINAL BUSINESS

$24,000 = EACH

TERMINAL DIVISION

Pipeline Division 2013 $360,000/YR. $72,000 YR./DIV.

Terminals Division 2013 $240,000/YR. $28,800/DIV.

Note: The pricing could change by +/- 20% as we are currently going through final negotiations with CBM service provider.


Questions, Comments and Discussions

reliability program approval presentation_

Documents

analysis reliability

work phase

work request rotating

pi reliability team

analysis recommendations

eng services analysis

system maintenance

critical rotating equipment