Measuring and Improv..
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Measuring and Improv.. Measuring and Improv.. Presentation Transcript

  • Measuring and Improving Maintenance Performance Salih O. Duffuaa Systems Engineering Department King Fahd University of Petroleum and Minerals
  • Presentation Plan
    • Introduction
    • Evolution of Maintenance Management
    • Why Measure
    • Performance Measurement
      • Structured Auditing
      • Key performance indicator
      • Benchmarking
    • Improvement process
    • Case Studies
  • Role of Maintenance
    • Maintenance is defined as the combination of activities by which equipment, assets or a system is kept or restored to a state in which it can perform its designated function. It is an important factor in product or service quality and can be used as a strategy for successful competition
  • Introduction
  • Maintenance Versus Organization Objectives
    • The objectives and goals of an organization depends on the organization state, strategy and type of business. Some objectives are
      • Meet or exceed customer satisfaction
      • Maximizing profit, Meet set targets
      • Meet set safety standard,
      • Zero product defect
    • Does Maintenance affect these goals ?
  • Evolution of Maintenance Management
    • Prior to 50 th : Necessary evil
    • 50-70 : Preventive maintenance
    • 70 th : Life cycle costing, RCM and Productive maintenance.
    • 80 : TPM an RCM
    • 9oth-date: Strategic view of maintenance
  • Why Measure
    • What can be measured will be
    • understood better.
    • What can be measured can be assessed.
    • What can be measured can be managed.
    • What can be measured can be improved.
  • Measuring Maintenance Performance
    • What to measure?
    • How to measure?
    • What to do with measurement output?
  • Continuous 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 System
    • Structured Audit
    • Performance Indicators
    • Benchmarking ( can be utilized by both)
  • Structured Audit Approach
    • What is an audit
    • Standard for the audit ( factors for audit)
    • Organization of the audit
    • Expected out put of the audit
  • Structured Audit
    • The American Heritage Dictionary defines audit as: “an examination of records or accounts to check their accuracy”.
    • Thomas and Henke (1989), “Auditing is a process in which one person verifies the assertions of an other”.
    • Carmichael et al (1996), defines audit as : “Auditing is an independent investigation of some particular activity”.
    • (http://www.columbia) defines an audit as a formal or official examination and verification of the activities of an organizational unit, system, function, or other aspect of the organization's operations. It may include a review of (1) economy and efficiency of operations; (2) effectiveness in achieving program results; and (3) compliance with laws, regulations, and other rules. The audit results in a written report
  • Standard for the Audit
    • Factors/activities to be examined.
    • Standard for each factor.
    • Aggregation of sub-factors and factors.
  • Audit Factors
    • 1. Strategic Management
        • Maintenance mission and objectives
        • Alliance of process with mission and objectives.
        • Values
        • Performance measurement
        • Effective strategies
        • Strategy assessment
  • Audit Factors
    • 2. Organization and staffing
        • Organization structure
        • Job description
        • responsibilities and supervision
        • Polices and procedures
        • Shops organization
    • 3. Human resources
        • Shop manning
        • Employee motivation
  • Audit Factors
    • 4. Training
        • Management training
        • Planner training
        • Craft training
    • 5. Management control and budget
        • 6.1 Budget planning
        • Reporting and feedback
        • Effective control
  • Audit Factors
    • 6. Work order planning and scheduling
        • Priority system
        • Work order system and procedures
        • Emergency & shutdown scheduling
        • Planning procedures
    • 7. Facilities and resources
    • 8. Stores and material
    • 9. Preventive maintenance and equipment history
    • 1o. Engineering Condition monitoring
  • Audit Factors
    • 11. Information technology
    • 12. Performance analysis and appraisal
    • 13. Safety in maintenance
    • 14. Maintenance and the Environment
    • The audit program we are using has 90 questions distributed over the above 14 main factors.
  • Audit Plan and Execution
    • Examine the audit program to reflect plant special characteristics.
    • Form audit team from consultant in plant personnel.
    • Regular meeting.
    • Corrective and preventive actions.
  • A case of a Process Plant in Saudi Arabia : Audit Raw Score
  • Factors Weight Using AHP
  • Audit Analysis
  • ABC on the Table
  • Improvement Actions
    • Factor 2: Organization and Staffing
      • Document procedures for PM
      • Supervisor technician ratio
      • Establish a suitable planner-worker ratio.
      • Decentralize some of the maintenance activities.
    • Factor 13: Safety in maintenance
      • Include safety within maintenance process
      • Enforce safety rules
      • Training program for maintenance personnel.
  • Performance Measures
    • An alternative or integrated approach with structured auditing ?
    • It links processes to objectives.
  • Performance Measures
    • There are literally hundreds of potential indicators
    • “ Appropriate” indicators depend on many factors, such as
      • Level in the organization to use the information
      • Existing data collection systems, and how easily modified
      • Staff availability to develop/maintain systems
      • Demands of managers &teams for the information, and their level of sophistication (foreman vs. MBA)
    • Frequency of reporting also is situation dependent
    • Stratification options by plant, department, machine, product line, etc., are important
  • Managerial Classification
    • Macro Indicator
      • Macro-indicators (for upper management, primarily)
    • Micro Indicator
      • Micro-indicators (for lower levels of management)
  • Macro Indicator
    • maintenance expense dollars as a percent of replacement asset value.
    • maintenance expense dollars per unit produced
    • maintenance expense dollars as a percent of plant controllable expenses
    • regulatory compliance indicators
    • Productive capacity
  • Micro-Indicator
    • maintenance budget compliance (budget vs. expense)
    • monthly expense dollars (by equipment type)
    • percent overtime (3-9% sometimes cited as ideal)
    • percent emergency work
  • System Classification
    • Input Measures Primarily Cost Measures
    • Output measures
    • Within The System Measures
  • Input Measures
    • Input Measures are Mostly Related To Cost
    • Labor : Cost of trades, semi-skilled etc
    • Materials and spares
    • Contracts
    • Shop Service
    • Equipment Rentals
    • Maintenance Overhead
    • Company Overhead
  • Output Measures
    • Availability : Measure of Uptime
    • Reliability : Mean-time-between-failure
        • MTBF = S-d/f , f is number of failures
    • Mean Time To Repair: Measure of Duration of Repair
        • MTTR = d/f
    • Utilization = Scheduled Time/C T
    • CT = Calendar Time
  • Output Measures
    • Process Rate (PR) : Measure of the Equipment Cycle Time in The Process
        • PR = Ideal Cycle Time/Actual Cycle time
    • Quality Rate (QR) : Measure of equipment Precision
        • Total Produced - Rejected/Downgrades/ Total
    • Overall equipment Effectiveness
        • OEE = A* PR *QR
    • Productive capacity
        • OEE * Utlization
  • Measures Within The System
    • Work Distribution : Time Spent in each work category
    • Delays : Time spent waiting for instructions
    • parts, travel,breaks, Start and Quits
    • Compliance : Measures to Track Compliance with various plans, such as PM, Shutdown schedules etc.
  • Measures Within The System
    • Backlog : Amount of Work Planned but not Completed by Plant, Area, Craft, etc
    • Failure Analysis: Tracks improvement analysis, such Number of New PM Routines, Number of Root Cause Analysis of Breakdowns Undertaken.
  • Indicators Selection Criteria
    • Reflect business objectives.
    • Impact customer satisfaction.
    • Quality of product or service
    • Describe the performance of key process.
    • Performance of critical equipment.
    • Safety and environment.
  • Balance Scorecard Approach
    • Financial
    • Customer
    • Internal
    • Learning and growth
  • Improvement Approach
    • Identify areas were goals are not met
    • Use Pareto chart to prioritize areas
    • Root cause analysis
    • Corrective and preventive actions
    • Implement actions
    • Measure and check
  • Benchmarking
    • Formal Definition
    • Benchmarking is the continuous, systematic process of measuring our products, services, and practices against the toughest competitors or those companies recognized as industry leaders.
    • Working Definition
    • Benchmarking is a basis of establishing rational performance goals through the search for best industry practices that will lead to superior performance.
    • A Related Definition
    • Benchmark: An industry standard
    • Descriptive Benchmarks or Practices
    • Quantitative Benchmarks or Performance Measurements
  • Benchmarking As An Improvement Tool
    • How Benchmarking Makes Possible Improvements
    • The gap between internal and external practices creates the need for improvement
    • Understanding industry best practices identifies what you must improve.
    • Externally benchmarked practices developed from others give a picture of the endpoint after improvement.
  • Types of Benchmarking
    • Internal
      • Similar processes (data is available).
    • External
      • Type of industry (competitors)
      • Best in industry (non-competitors)
  • Benchmarking Process
  • Benchmarking as a Process of Improvement
    • Know your own operation, both its strengths and weaknesses.
    • Know those industries that excel at the maintenance processes used in your operation, including competitors, sector leaders, and those in other industries
    • Set challenging targets for your maintenance performance measures; incorporate the best practices
    • Measure results and strive continually for superior performance
  • Key Factors for Success
    • Management commitment for improvement.
    • Create a culture of Maintenance Kaizen.
    • People motivation, growth and continuous learning.
    • Quality circle for process improvement
    • Reward based performance.
    • Technology as a means for enabling.
  • Conclusion
    • Maintenance Should managed as a business unit.
    • Maintenance performance must be aligned with company strategic directions.
    • Three approached for improvement are presented- Structured audits, Performance Indicators and Benchmarking.
  • Conclusion
    • Culture of continuous improvement (C.I) must be created to sustain C. I.
    • Leadership and management commitment are key to creating the culture of C.I.
    • Thank you for your patience
    • Any Questions or comments .