steel cranes maintenance auditing.pdf
TRANSCRIPT
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
1/43
Maintenance Engineering & Asset Management
Module M06
MAINTENANCE AUDITING SYSTEMS
MAJOR ASSIGNMENT
Name: Hernn Quiroz
Company: Ternium Siderar
The completed assignment must be received at the Programme Office by23.59 on
Friday 30th May 2011
Late assignments will be penalised.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
2/43
2
Table of Contents
I. EXECUTIVE SUMMARY.................................................................................................................3
II. ACKNOWLEDGEMENTS................................................................................................................4
III INTRODUCTION................. ..................... ................... ..................... ...................... ...................... .....5
A. BACKGROUND ....................................................................................................................................5B. THE BRIEF .........................................................................................................................................6C. REPORT FORMAT ...............................................................................................................................6
IV. OBJECTIVES AND SCOPE ................... ..................... ................... ..................... ........................ ......7
A. OBJECTIVES.......................................................................................................................................7B. SCOPE ...............................................................................................................................................7
V. METHODOLOGY ................ ..................... ................... ......................... .................. ....................... ...9
A. DIFFERENT WAYS OF ACCUMULATING EVIDENCE...............................................................................9B. STRUCTURED INTERVIEWING ............................................................................................................9C. DATA ANALYSIS ................................................................................................................................9D. COLLATION OF INFORMATION, RATING METHOD AND RECOMMENDATIONS..................................10E. PRESENTATION AND REPORT WRITING ..........................................................................................10
VI. RESULT OF THE PERFORMANCE REVIEW.................... ................... ....................... ............... 11
A. GENERAL .........................................................................................................................................11B. STRATEGY AND POLICY (RATING 0,9 OUT OF 5)...........................................................................11C. ORGANISATION (RATING 1,4 OUT OF 5).......................................................................................13D. COMMUNICATION (RATING 2,5 OUT OF 5) ....................................................................................15E. EMPLOYEE INVOLVEMENT (RATING 1,8 OUT OF 5)........................................................................16F. WORKLOAD MANAGEMENT (RATING 2,6 OUT OF 5)......................................................................17G. MAINTENANCE REGIME (RATING 0,5 OUT OF 5) ...........................................................................19H. SAFETY, HEALTH AND ENVIRONMENT (RATING 2,5 OUT OF 5).....................................................20I. MATERIALS MANAGEMENT (RATING 0,6 OUT OF 5) .....................................................................21
J. VALUE FOCUS (RATING 1,5 OUT OF 5)...............................................................................................23K. MEASURE OF PERFORMANCE (RATING 1 OUT OF 5) ......................................................................24
VII. RECOMMENDATIONS .................... ................... ....................... ................... ................... ...............26
VIII. CONCLUSIONS................... ...................... .................. ...................... ..................... ................... .......32
IX. APPENDICES........... ................... ..................... ........................ ..................... ..................... ............... 33
X. REFERENCES..................................................................................................................................43
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
3/43
3
I. Executive Summary
An audit of the maintenance activities of the Ternium Siderar Cranes Steel Shop
has identified that the actual performance is not aligned with the business
requirements.
The most positive finding is the supervisors and technicians empowerment. The
other strengths are the Workload Management, Safety, Communication and
Employee Involvement. But they are in the level where the need for
improvement and change has been recognised.
Nevertheless, along the audit I couldnt find any improvement programme. In
addition to this, there are some topics like Strategy & Policy, measure of
performance, materials management and maintenance regime where the needfor improvement and changes has not been identified.
An improvement programme managed by a senior management is
recommended in order to improve the actual maintenance systems
performance. This programme is based on:
- Review of Maintenance Policy
- Review of Maintenance Strategy (procedures, process, workload, KPIs
and standards)
- Review the CMMS process
- Review the Control of the Maintenance Systems (1st, 2nd, 3rd and 4th order
control viii)
- Develop a Benchmark with other crane steel shop maintenance
organisation.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
4/43
4
II. Acknowledgements
Hernn would like to express its grateful to the whole Ternium Siderar Steel
Shop Cranes staff who gives their time and effort to make it possible this
analysis.
I want to thank to Paul Wheelhouse for having trained me in this modality to
audit maintenance systems.
This audit is made in the spirit of continuous improvement.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
5/43
5
III. Introduction
A . B ack g r ou n d
1. Ternium Siderar Steel Shop Cranes
Ternium Siderar Steel Shop has 31 cranes that transport all the Converters andContinuous Casting raw material and final products. As a consequence the
cranes availability problems directly affect the Continuous Casting Machine
(CCM) performances. It is important to highlight that the CCM is the Ternium
Siderar bottle neck.
In addition to this, these cranes are the most criticality Ternium Siderar assets
from the safety points of view. They lift and transport 12 tons slabs and ladles
with 180 tons of liquid steel at 1600 C. There are a lot of crane equipment
failures modes that produces fatality consequences. There are examples in the
steel industry like the Qinghe Special Steel Corporation disaster where thirty two
people died and six were injured when a crane used to transport molten steel
failed iii.
a) Figure 3: Qinghe Special Steel Corporation Disaster
What is more, in Ternium Siderar during the last five years there were 6
different maintenance steel shop cranes managers. As a consequence there is
no medium or large maintenance continuous improvement program.
To sum up, the steel shop cranes are criticality from production and safety point
of view. After these organizational changes it is crucial to audit the steel shop
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
6/43
6
cranes maintenance systems in order to determine where each one of the ten
elements of Good Practices1 is ranked. It will be the base for the continuous
improvement program.
B . Th e Br ie f
The brief of this analysis was as follow:
Asses the maintenance requirements in the business context.
Determine the actual maintenance performance with an audit.
Suggest the follow steps in order to improve the actual maintenance
performance.
Propone the continuous improvement program in order to align the
maintenance systems with the business requirements and the safety
policy.
C. Re p o r t Fo r m a t
This report describes the work that was performed during the audit and finally
presents the improvement recommendations. It is organized as follows:
Section IV: Determine the Objectives and Scope for this work
Section V: Describe the Methodology used for the analysis
Section VI: Present the maintenance audit results according to the 10
elements of good practices
Section VII: Propone the recommendations for improvement.
Section VIII: Cover the Conclusions of this analysis
Section IX: Contains the Appendices
Section X: Contains the References
1
The Audit is based on EFQM (European Foundation for Quality Management) business excellent model and
Manchester University Maintenance audit model
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
7/43
7
IV. Objectives and Scope
A . Ob j e c t i v e s
The main objective of auditing the Cranes maintenance group is about
discovering opportunities where the continuous improvement can be apply in
order to assure safety operations and make better maintenance performance,
cost-effectiveness, efficiency and service delivery.
As it is known, the role of Maintenance in the modern business is to satisfy the
operational demand for the long term at the lowest total life cycle cost of the
equipment.
Operational demands include:
- Safe operation
- Environment issue
- Availability of equipment (MTBF, MTTR)
- Throughput rates
- Service Delivery Management (SDM)
- Product Quality
- Cost
- Regulatory Requirements
The role of Maintenance Auditing is to confirm how well these responsibilities are
being fulfilled and to recognize areas where the continuous improvement can be
implemented.
In this assessment particular attention was taken about safety operations and
every aspect of maintenance systems that could affect it.
B . Sco p e
This analysis focused on evaluating Steel Shop Cranes Group. It was evaluated
all kind of maintenance activities related with steel shop cranes. In order to
obtain how well this group is carrying out maintenance, it was assessed the
following points:
Strategy and Policy Maintenance Regime
Organisation Materials Management
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
8/43
8
Communication Value Focus
Employee involvement Safety, Health and Environmental
considerations
Workload Management Measure of Performance
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
9/43
9
V.Methodology
According to the Paul Wheelhouse audit model, 5 steps were considered:
A . D if fe r e n t w a y s o f a ccu m u l a t i n g ev id en ce
- Interview with key persons
- Plant tours
- Attendance at Meetings
- Observation of Work activities
- Systems can provide very useful information
- Planning
- Execution
B . St r u ct u r ed I n t er v i ew i n g
In order to feed up my perceptions of cranes group performance, twelve people
were interviewed. This audit involved operational and maintenance people in
vertical and horizontal cross section. It was included top management, shift
supervisors and front line people. Furthermore it was interviewed maintenance
people from planning, workshops, warehouse, safety and engineering
department.
The questions were obtained from my own experience and enriched by the
Manchester University sources. They were properly adapted for maintenance
cranes reality.
The result of these interviews was used to score various issue of maintenance
performance.
C. D a t a An a l y s i s
This activity included the analysis of the data in the CMMS (Computer
Maintenance Management Systems). I have evaluated the accuracy and
completeness of the data, the ability of the system to plan, schedule, monitor
and report maintenance activities. In addition to this I have tested the peoples
application and understanding of the system and how friendly the system for the
people is.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
10/43
10
What is more, I have examined the data of failure rates, cost, work backlogs
and the other KPIs that are available in the Ternium Siderar intranet
maintenance site.
D . Co l l a t io n o f I n f o r m a t io n , Ra t in g M et h o d an d
R ec om m e n d a t io n s
The information obtain was used to score the ten elements of maintenance best
practice (see section IV-B: Scope) based on:
- EFQM (European Foundation for Quality Management) business excellentmodel.
- M06 Maintenance Audit Systems, from Manchester University.
- A step by step guide to Maintenance Audit, by Paul Wheelhouse
I used a simple scoring scheme which gives a rating from zero to five against
each one of the ten elements.
0. The need for improvement and change has not been recognised.
1. The need for improvement and change has been recognised.
2. A change programme has begun.
3. Barriers to achieving World Class performance have been identified.
4. Significant improvements have been achieved and the improvementprogramme is well underway
5. World Class performance has been attained when compared to the
recognised benchmarks.The results were plot in the spider web diagram in order to create a composite
picture of the organisation in a simple snapshot. The key advantage is that it is
possible to compare strengths and weaknesses of maintenance approach at a
glance.
Taking into account the result of the audit, benchmarking, the world class
companies and the Ternium Siderar business objectives, I have develop a list of
continuous improvement recommendation (Section VII)
E. P r es e n t a t io n a n d Rep o r t W r i t i n g
The results of the audit were presented to Ternium Siderar Maintenance Staff
and constructive feedback and suggestions were produced. This writing
document is the final report.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
11/43
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
12/43
12
with his notes and memory. Nobody remember when the last strategy revision
was performed? The actual maintenance engineers that are related with these
cranes have no participated or reviewed the actual informal strategy. Operations
managers claim that the actual strategy effectiveness is so far from their actual
business requirements.
Furthermore there is no formal communication to the supervision, technician
and workforce about the actual Ternium Siderar business performance,
requirements and the future maintenance and company plans.
There are no formal standards of maintenance required. Every person has its
own feeling.
2.Resources matched to objectives and strategy (0,2)
There is a deficiency of electricians to support the actual informal maintenance
plans. So the technicians produce work orders according the actual capacity
instead of their necessity to guarantee the business required reliability.
What is more the electricians have poor capabilities because they are new in this
job and they do not have proper technical training. As a consequence, there is
an unacceptable child mortality rate.
Furthermore, the engineering improvement support (In Siderar it is called IAME
area), is practically absent. The IAME (applied engineering improvement
department) area that gives the centralized engineering support to study the
chronic or major outages practically does not give service to the crane area.
3.Constraints understood - initiatives in place. (0,2)
Constraints are followed but not completed understood because they are not
proper communication between the management and the
supervision/technicians.
There are initiatives in place for some critical equipment but they are promoting
for individual intentions. They are not part of an overall plan.
There is no evidence of 5Ss implementations. There is a big opportunity in this
topic. (see appendix 6)
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
13/43
13
4.Vision, objectives, shared goals owned by all (0,3)
As I said, there is no formal strategy or objectives. In addition to this there is no
formal vertical communications about the business strategy. So there cannot be
shared goals although many personnel are working to maintain the cranes
working. The supervision, technicians and workforce have a common goal. Theiraim is to avoid failures in lift systems. What is more, their second objective is to
maintain al the crane working, which represent a big personal effort because
there is a 30% of emergencies. There is a culture of reactive maintenance.
Every morning there is a meeting between the supervision, technician and the
workforce. The objective of this meeting is to share the goals for the day and
how to concentrate the resources according to the news. There is no medium or
large term goals. There are no weekly or monthly meetings in order to review
the performance and compare it against the goals.
There is reasonable spend allowed by the site engineering function but there is
no control about it. Technicians do not know the budget and the real spends.
5.The strategy and policy is subject to continuous review andupdating. ? (0,1)
Without a formal strategy it cannot be reviewed or updated but every morning
they are reviewing the work that they are currently doing.
C. O r ga n is a t io n ( Ra t in g 1 ,4 o u t o f 5 )
Certain positive aspects were identified:
- Teamwork between all technicians
- Good technician competence
- Technicians commitment
- Ownership
However, I think that there are opportunities to improve in the following points:
1.Are there clearly defined responsibilities and accountabilities?(0,2)
There are clearly defined roles and responsibilities for staff and for the shop
floor. They are not written, but everybody now it informally. There R&R for staff
has not been developed on site. Along the last five years there were 6 different
maintenance steel shop cranes managers. As a consequence this function has
not been performed properly. An evidence of this is that there isnt any medium
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
14/43
14
or large plan in every management aspects. All the management actions are
associated to solve a day to day problem (from the technical or managerial point
of view). The management is working as a firefighting.
Furthermore, there are so limited engineering resources (internal or external) to
perform continuous improvement and it is very difficult to obtain this resources.
2.Flexible work-process based organization (0,4)
There are some flexible processes, with team work on the shop floor. Flexibility
is derived from people and relationships rather than processes.
There is no provision for sickness and holiday cover.
3.Job accountabilities are linked to personal performance measures.(0,2)
On the one hand managers and supervisors are evaluated according with the
Ternium Siderar Human Resources policy. They should have aims aligned with
their performance measures. But as a consequence of the management
changes, during the last 6 years, each personal performance appraisal has
begun with a manager (and his objective) but was evaluated with a different
boss. Most of these periods there werent supervision feedback meeting after the
performance appraisal.
On the other hand, according with the RRHH policy and the trade union
intention, the shop floor do not has personal performance measures.
4.Multi-skilling spans craft and production disciplines. (0,4)
Some electricians do limited amounts of fitting work. There is an intention to
train fitters or contractors to isolate there own equipment but this is not in place
yet.
5.Needs and skills dynamically matched through training. (0,2)
Training matrices are available and development needs identified. HHRR
department has organised the annual training fixture. At this moment the crane
department does not have programmed or schedule the training for the shop
floor, supervision or staff personnel. Furthermore, the contractors work force is
not included in the Ternium Siderar training programme. In the electrician case
there are some repairs carried out by unqualified personnel.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
15/43
15
D . Co m m u n i ca t io n ( Ra t in g 2 ,5 o u t o f 5 )
Certain positive aspects were identified:
- Nextel communication very useful.
- The technician, supervisors and engineers has their nextel available at
home 24 hours. They are also available by Nextel during the weekend for
any emergency.
- Intranet site
- Corporate magazine
- Newsletters
However, I think that there are opportunities to improve in the following points:
1.Effective vertical and lateral two-way communication (0,5)
There are a number of methods of communications, intranet site, corporate
magazines, newsletters, emails. These appear to work, but they are only
available for staff, supervision and technician. The workforce could not access to
the intranet communications because their do not use computers.
The top down communication is working but an opportunity area is the bottom
up communication that is so few performed.
2.Mission statement interpreted/owned by all. (0,7)
The company mission, vision and values statement are available on various
notice boards and the intranet site. But it has not been communicated down to
the shop floor.
3.Cascade communications are more effective than rumours. (0,4)
Cascade communications is working but rumours do precede formal information
processes, especially when emergencies or production changes are happening
on site. These operational rumours produce uncertainty in the supervision,
technician and workforce.
What is more, as cranes are considered as a secondary facility like fluids
(services), sometimes there are some suddenly production windows decisions
that are not properly cascade communicated to the crane staff.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
16/43
16
4.High visibility communication and feedback. (0,3)
As a consequence of the last management changes along of the last 6 years,
there werent supervision feedback meeting after the performance appraisal.
What is more, change initiatives are developed and issued but not always
properly communicated to the shop floor.What is more, there is a good communications between production and
maintenance staff. There is a daily meeting. Some operators reports problems
by e-mail. The supervisor of every shift reports the equipments failures news by
the QNX frame.
After every work is performed by the contractors, there is no formally feedback
face to face; neither by SAP systems.
Finally there is an important improvement area in the communication when
an operational mistake occurs (feedback). When this communication fails,it is increased the equipment failure probability with safety consequences.
5.Communications by intranet and CMMS (0,6)
Information systems help communications but not everyone reads everything
because not everybody from the shop floor can access to it. SAP CMMS is used
by supervisors and technicians in order to request repairs, services,
enhancements, spare parts and work orders.
E. Em p l o ye e I n v o l v em e n t ( Ra t in g 1 ,8 o u t o f 5 )
Certain positive aspects were identified:
- Technicians and Supervisors empowerment
- Technicians autonomy
- Technicians commitment
However, I believe that there is scope for improvement:
1.Individuals genuinely empowered to take decisions. (1)
I consider that the most important asset of the crane maintenance systems is
their supervisors and technician empowerment. May be this empowerment has
born as a consequence of the last management changes (6 boss in 5 years).
They are very autonomous and their usually take their own decision. They
decide if a crane must be stopped. If they realize that there is a possibility of
failure in critical equipment (safety point of view), the stop the crane and take
action in order to solve it.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
17/43
17
2.Effective team-working/problem-solving/shared goals/recognition(0,1)
No operator maintenance, little responsibility taken by the operators for
housekeeping. Informal system used for the operator task required, in the
reactive way trough the trade union representatives.
3.Everyone's talents are known and harnessed for continuousperformance improvement (0,2)
On the one hand, there is a limited involvement of operators/engineering in site
improvement.
On the other hand, there is a big involvement of maintenance shop floor in order
to improve the equipment performance. They required the management support
in order to emphasize the continuous improvement.
4.All share cost responsibility/information is provided to all. (0,1)
At the moment of the audit, the supervisors do not know how much money they
are spending and what the budget is? After investigation I realize that the
budget is overspending in 50%.
What is more, very little information is passed down about costs so
responsibilities cannot be shared.
5.Continuous appraisal/training/development of all individuals. (0,4)
Appraisal systems was implemented for staff but have not been developed toshop floor level.
F. W o r k lo ad M an ag em e n t ( Ra t in g 2 ,6 o u t o f 5 )
Certain positive aspects were identified:
- Daily workforce programme
- Steady workforce (The same people works all days in the crane with the
same supervision)
However, I think that there are opportunities to improve in the following points:
1.Flexible scheduling exploits opportunities and is based aroundplant need. (1)
Apart from the steel shop monthly turnaround, the rest of maintenance
shutdowns are planned the day before, according to:
- A major shutdown plan which determine the opportunity for each crane
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
18/43
18
- Production windows opportunity
- Criticality malfunction news derives from previous technician inspections.
There are two kinds of shutdowns according with the criticality of each crane.
The most critical cranes stop for maintenance ones a month in concordance with
the steel shop turnaround.The less critical cranes have their shutdown when the steel shop is producing
because they have a redundancy. In addition to this if the redundancy has an
unexpected outage; it is possible to repair it, with out affecting the continuous
casting speed.
2.Job execution is to plan and best practice whilst under constantreview (0,5)
There is a daily program for the day after. All the resources are program in the
day before. There is not formally revision for the best practices.
Maintenance is very reactive (30% of emergences). Engineering adopting
firefighting strategy.
3.Appropriate use of technology for fault diagnosis, planning,scheduling, condition monitoring and maintenance management.(0,4)
I consider that actual planning and scheduling resources are according with the
necessity.
There is a big opportunity improvement with fault diagnosis (mainly notpracticed). There is informal reporting of machine problems and faults.
Considering condition monitoring, there is a set of accelerometer installed in
only one crane but there is no measurement performed. Furthermore there is no
oil analysis. Finally, thermography is limited.
4.Maintenance controlled against agreed performance measures. (0)
There is a sheet to control the maintenance workload but it is not review. The
information is available but nobody used it to detect problems and solve them.
There are some standards but nobody contrast the real length against with the
objective. What is more, I saw contractors that finished their job 2 ours before
the end of the shift and they use the time to rest. Nobody gave them another
work order neither nobody realize the situation.
There isnt a culture of workload control.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
19/43
19
5.Rational priority setting procedures utilised with feedback. (0,7)
In a day to day basis, the program can be modifying for emergencies. Every
morning before to begin the program work, the workforce supervisor check the
news of the shift before. If there is an emergency, he changes the program in
order to solve it.
G. M ai n t en an ce Re g im e ( Ra t in g 0 ,5 o u t o f 5 )
Certain positive aspects were identified:
- Teamwork between all technicians
- Good technician competence
- Technicians commitment
- Ownership
However, I think that there are opportunities to improve in the following points:
1.Maintenance regime matched dynamically with the businessneeds. (0,1)
On the one hand, there is a maintenance regime that is determined into the SAP
systems, which generate work orders. It is base on five cense inspection and
preventive replacement. In theory there is a maintenance regime.
On the other hand, there is the reality which is completely different from the
SAP systems. The inspectors do not follow the SAP. They usually inspect the
cranes according with their memory, not following a procedure of maintenance
plan. In reality, there is no maintenance regime. The efficacious of the actual
maintenance regime is 63% (see appendix 5). 30% of the contractors man
hours are apply to crane emergences.
Considering condition monitoring, thermography is the only technique that
actually is performed.
Practically there is no maintenance regime; neither will it be matched with the
business requirement.
2.Best current practice figures are achieved for un-planned outages.(0,1)
There is some evidence of identification of downtime best practice and programs
to improve are in place. But I consider that it is an important improvement area,
because not all downtime are analysed, few of them has improvement plan and
less few are implemented.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
20/43
20
3.Maintenance tasks and methods determined through logical /auditable processes (Criticality Analysis, RCM etc.) (0)
There is no evidence of maintenance task derived from logical processes like
RCM or Criticality Analysis. What is more, they do not known RCM when I ask
them.
4.Through-life maintenance prevention and maintainabilityimprovement established. (0,1)
At the moment there is no maintenance engineer working in order to improve
the life maintenance prevention or maintainability. The technicians are
performing so few improvement but they are limited (with few economic
resources and when they have time to do it.)
5.Contractors, specialists, support services and equipment / spares
vendors are an integral part of the maintenance regime. (0,2)
The cranes are been manufactured by MORGAN or IPH factories. All of them are
so far from Argentina in order to deliver assistance. (10000 to 12000 km)
There is some evidence of Argentinean specialist, like Hillman, that assisted to
Siderar in particular cases. For example in the last year, Hillman supervised a lift
gear changes that took 5 days.
H . Sa fe t y , H ea lt h a nd En v ir o n m e n t ( Ra t in g 2 ,5 o u t o f 5 )
1.Clear leadership and policy communicated effectively and ownedby all. (1)
There is clear safety and environment policy. The company has put the security
in the upper level of interest, beginning from the CEO. It is a top-down initiative
extended to all levels. This new program had been communicated by different
sources (intranet, visual factory, flash, internal newspaper). This is a recent but
the company has progressed very well.
2.Safety always comes first. Safety critical tasks identifiable /
auditable by the maintenance management system. (1)
The new safety policy considers the security in the first place over the rest of
management issue. In this new plan, there is a topic that we call: procedure of
critical task (PTC). It consist in determine the ten most critical task from the
safety point of view for each department. This PTC required a particular analysis,
review process and audit program.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
21/43
21
3.Routine audits. Safety competition. Statutory work is continuallychallenged. (1)
There is a regular safety audit. Every Monday, Wednesday and Friday, at eleven
oclock, all the supervisors and engineers has to stop their activities and go out
to the floor in order to audit the work of their own responsibility. Every
observation detected, has to be inform in the safety system in order to generate
a plan to solve it.
4. Incidents and near misses are recorded and reviewed so thatlessons can be learned. (1)
All accidents and high criticality incident must be investigated. There is a formal
method to analysis these events. The most critical events are monthly presented
in a company meeting. In this opportunity, the Industrial Director form part of
this presentation.
5.Best current practices are used for safety, health andenvironmental management systems (0,8)
The most critical events are analysed, review for safety department and then
communicated to all supervisors in the company. Then they communicate the
same information to their dependant. The object is to learn from previous
experiences.
On the one hand there is a very good policy as it was indicated in the previous
five points. From the policy point of view, safety could be mark as 4,8 out of
five.
On the other hand, I think that the risk awareness to work at high levels is the
weakness safety point. One mistake can produce fatality consequences. I saw
people working at 30 meters with risk to fall without safety harness! This
point reduces the safety mark for this audit. In my opinion it coudnt receive no
more than 2,5.
I . M a t e r ia l s M a n ag em e n t ( Ra t in g 0 ,6 o u t o f 5 )
Certain positive aspects were identified:
- There is a system that identify all the Siderar spare parts
- There is a central warehouse that preserves the spare parts.
However, I think that there are opportunities to improve in the following points:
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
22/43
22
1.Stock levels are matched dynamically to the business needs -balancing cost and risk. (0,1)
At the audit moment, in the crane department there is no stock strategy. Some
equipment has stocks, it can be overestimated or underestimated, but nobody
review it. In addition to this there are some components that must be in the
warehouse with it correspondent stock. In reality this elements are distributed
along of the steel shop without any sense. (See spare parts pictures in appendix
6). There are unidentified components in the steel shop area.
The warehouse policy is to continuously reduce the stocks without consider focus
for value. Their internal policy is to make so difficult the devolution process. So,
elements like an electric motor of 200 HP that has been repaired in a workshop
will stay in the plant. (See appendix 7)
2.Criticality analysis linked to JIT objective for minimum cost. (0)
There is no analysis related to cost optimization, neither Just in Time analysis.
All the technician audits, expresses that the main problem is the spare part
issue. They do not have place to store the spare parts. There is no policy about
it. It is very difficult to return a spare part to the warehouse because there is a
very difficult procedure to do it. The reason of this difficult procedure is because
the objective of the warehouse management is to reduce the inventory. This aim
it is over any other reason. As a consequence, there is no place to store the
critical equipment.
3.Materials categorised / consumables / common plant spares /insurance items and managed appropriately. (0,2)
There is a categorisation but it required a review because nobody agrees the
classification that it is in the SAP system.
4.Alliances and partnerships with suppliers to minimise stocks.(0)
At this moment there are no alliances with suppliers in order to minimise the
stocks levels.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
23/43
23
5.Appropriate use of technology is made in the maintenancemanagement system to aid materials management. (0,3)
The SAP is the system that manages the materials and all the maintenance
management issue. The system was softly customized, so I consider that the
technology is not given the properly help to manage the materials management.
J . Valu e Fo cu s (Ratin g 1,5 o ut o f 5)
Certain positive aspects were identified:
- Continuous improvement is part of the company culture
- Maintenance Site to show the KPIs
However, I think that there are opportunities to improve in the following points:
1.Continuous performance improvement is truly embedded in theorganisation. (0,4)
Continuous improvement is part of the company culture. But in this case, there
are so few examples of it. I consider that it could be because there is no
engineer in the area. What is more, the management is based in operational
issue with focus in solve the short term problems.
2.Value for money analysis is carried out by comparing downtimeand maintenance performance. (0,4)
In the maintenance SITE, there are some KPIs that measure the downtime andmaintenance performance. At the moment the KPIs exist but nobody analyse
them in order to generate value for money. The cost of breakdowns is
misunderstood by the supervisors and the work floor.
3.Differentiation of chronic / sporadic problems and correctiveinitiative in place. (0,2)
I consider that the information is available; it can be improving its quality. But it
is no generate corrective initiative in place.
4.Continuous review / feedback on methods, tools, techniques,procedures, organisation, strategy etc. (0,1)
The management control and feedback it is no performed. There is a lack of
management that maintains the continuous improvement process working
(apart of the technique used)
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
24/43
24
5.Suggestions encouraged / consistently evaluated / actioned /successes recognised / publicised. Optimum use of self-managingteams. (0,4)
The crane group takes the suggestions from different sources. A more formal
suggestion process could be analysed.
K . M ea su r e o f Pe r fo rm a n ce ( Ra t in g 1 o u t o f 5 )
Certain positive aspects were identified:
- In Ternium Siderar there is a culture of KPIs
- Intranet maintenance performance reports which contain the following KPIs:
Budget vs. Real Cost reporting
% Work orders completed on time
% Work orders delayed
% Improvement Work orders
Work Orders Backlog
Downtime
Condition Based Maintenance Alarms
However, I believe that there are some opportunities improvements:
1.Simple performance measures linked to business needs andshared goals are displayed and understood / owned by all. (0,4)
There are useful KPIs but nobody is using them. This KPIs are aligned with
the business objective but not properly understood.
2.Regular performance benchmarking exercises are carried out.(Internal and external.) (0)
There is no information from others companies in order to make comparisons.
3.A comprehensive / accurate plant history file is available andutilised. (0,2)
The information is not properly fulfilled into the SAP system. So there is no
accurate history. It is very difficult to represent the cranes reliability from the
information of the systems. The shop floor people do not know the intranet SITE
information.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
25/43
25
4.Trends in maintenance performance are recognised and rootcauses are sought. (0)
Considering the medium management, nobody control the result and neither
follows the tendency. There are no plans associated with the KPIs performance
in order to improve actual performance.
5.Timely exception reporting tailored to individual requirements isthe norm. (Not mountains of un-read paper.) (0,4)
The cranes department is not reporting every breakdown with its consequences.
This is because not every cranes fault produces losses of the continuous
casting machine.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
26/43
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
27/43
27
- Schedule the annual strategy and policy review
b) Organisation
- Define Roles and Responsibilities. Write and communicate to all the
persons who works for maintenance crane department (Engineers,supervisor, technicians, workshop, work floor, contractors)
- Determine how the Engineers (IAME) will support the crane department.
- Develop a sickness and holiday cover, considering the contractors
candidates for technician position. Close this policy with RRHH department
and with the trade union.
- Compliance the performance appraisal process determine by the RRHH
department, including the feedback meeting.
- Implement the performance appraisal for the contractors people in order
to identify the future Siderar technicians.
- Identify the training matrices needed for our person. Determine a training
programme.
- Determine the contractors training requirements and coordinate the
resources to train them.
c) Communication
- Generate a periodic meeting in order to receive bottom up
recommendations. Generate the environment to make it possible. Include
the contractors.
- Communicate to crane staff including the shop floor, the Ternium Siderar
Mission, Vision and Values. Inform where this information in the intranet
is?
- Define the communication procedure for production changes which
generates production windows.
- Use the monthly meeting to communicate the last company news.
- Generate a non bureaucracy method to assure the contractor feedback
after each turnaround.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
28/43
28
- Develop a brain storming with operation and maintenance crew in order
to increase the operation feedback, specially after one mistake or
accident.
d) Employee Involvement
- Empower a continuous improvement team with topics like: Reduce the
fall down probability at high levels working (over the cranes and
everything related).
- Develop for each crane a list of:
o Mechanical continuous improvement necessity
o Electrical continuous improvement necessity
o Workshop continuous improvement necessity
o Contractors continuous improvement necessity
o Safety continuous improvement necessity
o Drawing and redesign necessity
o New products continuous improvement necessity
- Communicate the budget and programme task for this year. Take it into
account for the followings budget.
- In the monthly meeting, communicate how the real budget is going.
e) Workload management
- Review the actual Turnaround strategy for the cranes number 190-191.
They are not satisfying the business requirement.
- Develop a process in the SAP system in order to identify the emergencies,
their cause reason and a plan in order to reduce them from 30% to fewer
than 5%.
- Implement the performance review after each crane turnaround.
f) Maintenance regime
- Develop a plan in order to review the maintenance regime for each crane.
Consider to implement Condition Based Maintenance every time that it is
possible. The implementation must be performed with the technicians.
- Train to supervisors and technicians in RCMII method.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
29/43
29
- Implement RCMII in the lift systems for every crane, in order to increase
the lift systems reliability (safety reason)
- Review how the outages are informing in the SAP system. Assure that all
the Outages are considered and that the Siderar outage procedure is
implemented.
- Generate the ABC problem for each crane in order to create a reliability
programme with the objective of increase the MTBF. Develop a list of
work for the IAME sector. (applied engineering improvement department)
- Make a contract with Hillman in order to review the state of the main lift
gears.
- Contract to Desk Norsk Veritas in order to audit the situation of the
cranes. (technical point of view)
- Consult to Morgan cranes company the maintenance regime
recommended for Morgan lift systems (the most critically from the safety
point of view)
- Arrange a training program in Morgan company for the Engineer how is in
charge of the mechanical part of the cranes.
g) Safety, Health and Environment
For this topic, the main issue is the fall dawn risk while the people are going,
working or returning to each crane. In order to improve, the proposal is the
same that I have presented for employee involvement.
- Empower a continuous improvement team with topics like: Reduce the
fall down probability at high levels working (over the cranes and
everything related).
h) Materials Management
- Review the warehouse devolutions equipment process, in order to avoid
the bureaucracy.
- Determine the list of stock control for the most critical equipment
(insurance spares) It is necessary to identify the key components and
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
30/43
30
review its situation ones a month in the monthly crane management
meeting.
- Review the warehouse stocks applying the Manchester University
Inventory Management concepts v. The idea is to justify the stocks and
determine the ideal total cost of spares stocked in the warehouse.
(Considering the downtime cost and the holding cost). I recommend to
review the case study example about how a paper mill reduce in Scotland
went to reducing its inventory vi.
In addition to this, I suggest to implement the Microsoft Excel
spreadsheet Spares Analysis.xls for the insurance stock vii. If you prefer,
another alternative is to apply the SKF software Spare Part Optimizerviii.
- According with the analysis recommended in the previous point,determine the elements required to stock in the plant. The idea is to
eliminate them. If it no possible, determine their localisation and who the
responsibly will be.
- Determine the alliances and partnerships with suppliers possibilities in
order to minimise the stocks.
- Develop a sap transaction in order to detect the under desire stocks for
the insurance spares. What is more, this information must be available in
the maintenance intranet site.
i) Value Focus
- Review the SAP process related with the downtime and redefines the
registration method for the cranes equipments malfunction. The idea is to
explode the potential of the actual intranet ABC downtime equipment
malfunctions. For this analysis, include the advice of the maintenance
engineering specialist (Eduardo Villagra).
- After this, include the following points in the monthly management
meeting:
Downtime ABC equipments and evolution. Work plans.
Differentiate between chronic and sporadic events.
Emergency level, ABC and tendency. Work plans
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
31/43
31
- Daily review of the quality registered information about downtime
problems, related equipment and it consequences. Every problem must be
properly registered.
- Determine the unavailability level that required the Continuous
Improvement Report
j) Measure of Performance
- Review all the KPIs in the monthly management meeting. The KPIs
exist and they are very useful and well designed. There is a lack of
leadership in order to keep these KPIs working, followed, analyzed with
its correspondent work plans.
- Develop a professional net in order to built benchmark with other
companies. I recommend two ways of work
Companies from the same Techint group Holding, like
Ternium Hylsa, Terniym Hymsa and Tenaris Siderca
Siderurgical Companies from others holding like Usiminas, or
Arcelor Mital Acindar.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
32/43
32
VIII. Conclusions
An audit of the maintenance activities of the Ternium Siderar Cranes Steel Shop
confirmed that performances are not aligned with the business requirements and
Ternium Siderar policy.
On the one hand, it is important to highlight that the most positive audit finding
is the supervisors and technicians empowerment.
On the other hand, the best audit marks are associated with Workload
Management, Safety, Communication and Employee Involvement. Nevertheless,
they are in the level where the need for improvement and change has been
recognised. What is more when the audit was performed I couldnt find any
change programme. I consider that the cause reason for this lack ofimprovement programme is the poor leadership as a consequence of the high
rotations of the maintenance steel shop cranes managers. (6 managers in 5
years). In addition to this, there are some topics like Strategy & Policy, measure
of performance, materials management and maintenance regime where the
need for improvement and changes has not been identify.
In my opinion with a continuous improvement programme and its appropriate
leadership it would be possible to achieve the business requirements. These
recommendations are based on revision of maintenance policy, maintenance
strategy, its process and its control through a new meeting schedule. (1st, 2nd,
3rd and 4th order control viii)
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
33/43
33
IX. Appendices
1. Appendix 1: Ternium
Ternium is a manufacturer of flat and long steel product. Ternium consolidates
the operations of the steel companies in Argentina, Mexico, Guatemala and
United States. It is one of the leading steel companies in Latin American with an
annual finished steel production of 9 million tons i.
Ternium Siderar is the most important Argentinean Steel Factory. It produces
2,8 million tons a year. It manufactures slabs, hot rolled, cold rolled, hot dip
galvanized, prepainted and tinplate steel sheet products. It has 9 production
centres throughout the Argentina.
2. Appendix 2: Ternium Siderar Steel Process
Ternium Siderar is an integrated steel factory. The figure 1 shows the basic
scheme of Ternium Siderar Steel Process.
a) Figure 1: Ternium Siderar Steel Process
3. Appendix 3: Steel Shop
The Steel Shop is the facility where the pig iron is transformed into slabs, which
is the row material for the Hot Street Mill. It has two main processes, The
Converter area and the Continuous Casting Machine. The cranes are the
equipments that feed up and evacuate these productions units.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
34/43
34
a) Figure 2: Converter charging
The Converters is a batch process that feed the continuous casting machine. The
batch process takes 30 minutes in which the Converter produces 180 tons of
liquid steel at 1600 C. If one converter or their cranes has an operational or
maintenance problem, then the continuous casting machine has to reduce the
speed affecting its productivity. If two converters or/and two cranes have
simultaneous problems for more than 25 minutes, then the continuous casting
has to cut the sequence producing a downtime for more than 2 hours2.
The Continuous Casting is the production facility where the liquid steel is
transform into slabs. It has 2 strands of 200 mm of slab thickness.
4. Appendix 3: Production Scenario - Ternium Siderar BottleNeck
Actually, the Continuous Casting Machine (CCM) is the Ternium Siderar bottle
neck. The actual CCM downtime cost is U$S 1100 / minute ii ( 41250/hour).
The following chart shows the capacity of the primaries areas:
PlantDealy Capacity
[Ton]
Minimum Dealy
Capacity [Ton]
Blust Furnace 10500 7900
Continuous
Casting 8500
Hot Street Mill 9500
(1) Table 1: Daily Capacity
2
Two hours is the minimum time required for Continuous Casting Machine to restart the sequence. Apart from
the time required to solve the Cranes and/or Converters problem
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
35/43
35
Today, the Blast Furnace N1 and 2 are working at their minimum technical
capacity. They couldnt produce less pick iron than 7900 Ton/day, otherwise
they become unsteady (permeability- thermal -chemical process problems).
What is more, the Hot Street Mill has an average capacity3 of 9500 Ton/day.
Nowadays, the Hot Street Mill has 90 free hours a month. These hours have not
been program because there are no available slabs to feed it up.
Furthermore the company cant import slabs from another company since there
is no profit margin. (The market cost and sells price make it not possible to
import slabs in order to transform into coils.)
In addition to this, the Argentinean market is demanding more downstream
products that do not have been produced because of the slabs limitation.
To conclude, the actual scenario generate the CCM bottle neck with excess of
pick iron (it is stocking as a solid pick iron) and free hours in the Hot Street Mill.
Every slab that is not produced at Siderar must be import as a final product
from other companies. In this cases Siderar act as a trader. To sum up, it is
crucial to improve the CCM availability (downtime and low speed failures) which
is influenced by the Steel Shop Cranes performances.
3
Its depends of the production mix (chemical composition, thickness and width). The same considerations
apply for the CCM.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
36/43
36
5. Appendix 5: Efficacious of the actual crane MaintenanceRegime
6. Appendix 6: Spare Parts not properly stocked.
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
37/43
37
7. Appendix 7 Repaired Motors not allocated into thewarehouse (bureaucracy policy)
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
38/43
38
8. Appendix 8: Cranes Steel Shop Lay Out
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
39/43
39
9. Appendix 9: KPIs
To continuous it is presented examples of other lines, like continuous casting, in order to
exemplify what it is possible to obtain from the actual CMMS if the registration process is
follow. (the CMMS for the cranes do not have information)
a) Direct Maintenance Cost
10. Diary Plant Downtime
a) Diary Plant Downtime
LabourMaterials
Contracts
Services
Others
Month Year
Dif. Dif.
MAINTENANCE DIRECT COST
BUDGET BUDGETReal Real
LabourMaterials
Contracts
Services
Others
Month Year
Dif. Dif.
MAINTENANCE DIRECT COST
BUDGET BUDGETReal Real
Cool Mill
DOWNTIM
E(HoursFrequency)
TotalMonth
Frequency Last Month DowntimeTotal Last Month
Frequency Month SAPTotal Month IGO
Frequency Month IGOFrequencyDowntime Last Month
Maintenance Downtime
Cool Mill
DOWNTIM
E(HoursFrequency)
TotalMonth
Frequency Last Month DowntimeTotal Last Month
Frequency Month SAPTotal Month IGO
Frequency Month IGOFrequencyDowntime Last Month
Maintenance Downtime
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
40/43
40
b) Pareto Downtime (6 month)
c) Efficacy-N Job Completed/Month
PARETO DOWNTIME (6 Months)
Hours
SAP Equipment Number
PARETO DOWNTIME (6 Months)
Hours
SAP Equipment Number
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
41/43
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
42/43
-
8/10/2019 Steel Cranes Maintenance Auditing.pdf
43/43