Risk Based Asset ManagementRisk-Based Asset ManagementIdentifying, Mitigating and Eliminating Risk with an AssetIdentifyin...
IntroductionName tent introductionTeambuilding/Grouping activityCourse learning objectivesCourse learning objectivesPartic...
Learning Objectives (1 of 2)1. Describe the four phases in implementing a risk-based asset management programbased asset m...
Learning Objectives (2 of 2)4. Map control strategies to predominant failuremodesa. List elements of an effective job plan...
The Model:The Model:Risk-Based Asset ManagementSStrategy5© Life Cycle Engineering 2013
Risk-Based Asset Management Model•Learning toOPERATIONAL STABILITYLearning toSee MeasureMeasureControlControlAnalyzeAnalyz...
Strategy documented in a planStrategy documented in a planAsset Management Plan KeyCComponents7© Life Cycle Engineering 2013
Key Components• Asset Operation Planp• Asset Risk Plan• Asset Maintenance Plan• Asset Maintenance Plan8© Life Cycle Engine...
Asset Management PlanAssetOperations PlanAssetMaintenance PlanAssetRisk PlanOperating ParametersPlanned UtilizationMainten...
The Asset Operation Plan• Standard operating proceduresp g p• Start-up / Shut–down procedures• Materials procedures• Mater...
The Asset Risk Plan• Risk identification• Risk analysis• Risk mitigation1. Identifythe Hazards6.Superviseand ReviewRisk mi...
The Benefits of Risk ManagementMANAGEMENT• Awareness of realexposuresINFORMATION• Expected Loss –how much do I loseon aver...
The Asset Maintenance PlanThe Infrastructure:• Database development• Database development• Asset definitions• Required att...
The Asset Maintenance PlanTask module creation• Mapping failure modes to failure detection• Mapping failure modes to failu...
The Asset Maintenance PlanDeveloping preventive maintenance tasksp g p• Failure-based• Comprehensive procedureComprehensiv...
The Asset Maintenance PlanPredictive technologies – the big 5g g1. Thermography2 Oil analysis2. Oil analysis3. Ultrasonic ...
The Asset Maintenance PlanMRO supportpp• Developing bill of materials• Determining critical spare part thresholdsDetermini...
•Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment Critical...
Classify Phase• Process flow diagramsg• Value stream maps• Asset catalogsAsset catalogs19© Life Cycle Engineering 2013
Value Stream Mapping• A pictorial representation of the flow ofmaterial and information as the product isbeing built• Foll...
VSM Icons21© Life Cycle Engineering 2013
VSM Icons22© Life Cycle Engineering 2013
Current State Mapping• Understand how the shop floor currentlyoperates• Material and information flows• Start with the “do...
Current State MapSupplier CustomerQuarterly ForecastDaily OrderingMonthly ForecastWeekly DeliveriesPlanning & Control25 / ...
•Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment Critical...
Hierarchy DevelopmentHierarchy is the systematic classification ofy yitems into generic groups based on factorspossibly co...
Functional Hierarchy(1)BusinessCategory(2)tionDataDiscuss this model and theFunctional HierarchyGuidelines in your(2)Insta...
Functional Hierarchy Activity1. Join into groups2. Determine a system where an air compressorwould be in operation3. Refer...
Client - 1 CompanyABCHierarchyFacility - 2ABCPlant ABCyAnswerKeyBuilding - 3Function - 4Building 312DistributionySystem - ...
Asset Definition• Once the hierarchy is established, the level 7y ,components are standardized into asset typesand minimum...
Asset DataDetailed information such as:• Asset criticality• Nameplate dataNameplate data• Engineering specification• Prope...
Data Collection Guidelines• Workbook has DataCollectionGuidelines forreference (pg 9)reference (pg. 9)• Discuss– Data coll...
•Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment Critical...
Criticality Analysis• Criticality is defined as a state of importance.y p• As a measure, it represents the severity of afa...
Contributors to CriticalityConsequences usually considered are theq yimpact on:• Environment• Health• Safetyy• Production ...
Criticality Thought ProcessDetermining function of equipment, system, itemprocess, etc.Is it main equipment or an auxiliar...
•Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment Critical...
Block Diagrams• The precursor to developing a functionalp p ghierarchy and a maintenance strategy is thefunctional and rel...
Block Diagrams• Functional and reliability block diagramsy gillustrate the operation, interrelationships, andinterdependen...
Functional Block Diagram: Purpose• The primary purpose of the functional blockp y p pdiagram (FDB) is to ensure that the R...
FBD: Description• Shows major system components, their functionalrelationships to one another, and the incoming andt i i t...
FBD ExampleTemperature& Pressure ReadoutInstrumentation& Monitors20Automatic ShutdownSignals(Temperature & High Pressure)S...
Functional Block Diagram Activity1. Join with a partner or group2. Distribute the air compressor user manual (handout)3 Re...
Answer – FBD ActivityPRESSUREREADOUTINSTRUMENTATION&AUTOMATICSTARTUPMONITORSSHUT DOWNELECTRICCONTROLMOTOR COMPRESSOR PRV12...
FMEA• Developed by US military and standardized byp y y yautomotive industry• Top-down method• Based on industrial and in-...
Example Of FMEA AnalysisPass out completed example FMEA for class to see46© Life Cycle Engineering 2013OR show onscreen ex...
Terms• Occurrence ranking:g– A subjective estimate of the probability thata failure mode will occur.– What different varia...
Terms• Detection ranking:g– A subjective estimate of the probability thata cause of a potential failure will bedetected an...
Terms• Risk Priority Number (RPN):y ( )– The product of severity, occurrence, anddetection rankings– Severity x Occurrence...
Uses of FMEA1. Root-cause failure analysisa Methodology for understanding potential forcing functionsa. Methodology for un...
Uses of FMEA5. Drives modifications and upgradesa. Many of the identified forcing functionsand failure modes can be elimin...
Reliability Engineering FMEA• Engineer must understand the machine orgproduction system– Machine or operating dynamics– In...
Reliability Engineering FMEA• Must be driven or supported by data– Focus Team FMEA relies exclusively on “nativeknowledge”...
FMEA Activity: Air Compressor1. On the FMEA form (handout) list twot ti l f ti l f ilpotential functional failures2. List ...
•Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment Critical...
The PM ProcessPlPlanDoActCheckCheck56© Life Cycle Engineering 2013
The PM ProgramHighOpTotal Maintenance CostBLost ProductionperatingBudgetProactiveMaintenanceBMaintenanceCostLost Productio...
Three Phases of PMDetectionDetection• The key elementAnalysis• Defines the specific problem fromhi h th t i i twhich the s...
Understand Degradation ProcessAvoid consequence of failureFunctional failure-System not meetingAll requirementsOnset of fa...
P-F Interval Curve and DomainsChanges in Vibration P-F interval 1-9 monthsThermography ThermalAnomalies interval 1-3 month...
PM Inspection Results• Inspection feedback is essential• Feedback should identify potentialequipment conditions needing co...
•Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment Critical...
Task Creation Guidelines• Step-through Task Creation Guidelines sheet inworkbook (pg. 19)• Review the Example Task Module ...
Example Task ModuleEQUIPMENT NUMBER DESCRIPTION LOCATION DOCUMENTATION VALIDATEDITEM#FREQUENCY(Days)CRAFTCRAFTSMENREQDEQUI...
Task Module Activity• Join in groupsg p• Draft at least four maintenance tasks into theblank Task Module Worksheet (workbo...
•Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment Critical...
Which Measures to Use?• Review the KPIdefinitions in o rKPIs for your RBAMdefinitions in yourworkbook as wedetail each KPI...
Maintenance Cost per RAVTotal Maintenance CostReplacement Asset Value (RAV)• Total Maintenance Cost: all labor, material,a...
Review other KPI elementsMaintenance Cost per RAV:p– Data source– Links to businessLinks to business– RASI– FrequencyFrequ...
PM Compliance# of Scheduled PM Work Orders Completed# of Scheduled PM Work OrdersThe acceptance criteria should be within ...
Review Other KPI ElementsPredictive Maintenance Compliance:p– Data source– Links to businessLinks to business– RASI– Frequ...
•Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment Critical...
Measuring Losses from Ideal (Lean)PerformancePerformanceTheory Of Constraints10% 10%100%15%20%15%10%15%10% 10%20%25%80%90%...
Uptime (OEE)Operating TimeScheduled TimeUptime (%) =Note: Uptime only excludes “lack of sales/demand”Scheduled Timep y74© ...
RateAverage RateR t (%)Best Demonstrated or DesignRateRate (%) =Note: The Best Demonstrated Rate or Design Rate,use the gr...
QualityFirst Pass Units*Q lit (%)First Pass UnitsTotal Units*Quality (%) =Note: The FPQ corresponds to the volume(Units) o...
Daily Logging OEEReview the OEE Daily Log sheet in your workbook forReview the OEE Daily Log sheet in your workbook foran ...
OEE Calculator Activity• Calculate the business case potential for OEEpusing the OEE Calculator activity in yourworkbook (...
OEE Scenario Activity1. Read the OEEscenario in yourscenario in yourworkbook (pg.33).2. Determine theOEE for thed ti lipro...
Making OEE a Leading, Visual IndicatorngrandatorledmeuledmeoverofalctOperatiHourNoDemaNoOperaScheduDowntimUnschedDowntimCh...
Total Cost of Ownershipp81© Life Cycle Engineering 2013
TTotalCCostoffOwnnershipp82© Life Cycle Engineering 2013
The Four Phase RBAM Model:R i d A ti PlReview and Action Plan83© Life Cycle Engineering 2013
RBAM Four Phase ReviewOPERATIONAL STABILITY•Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream M...
RBAM Action Plan• Use the four-phase template in your workbook todevelop an action plan (pg.34). Include:– Activities to t...
Congratulations!Celebrate learningg86© Life Cycle Engineering 2013
Thank You!Interested in learning more?Mike Poland CMRPMike Poland, CMRPDir., Asset Management ServicesMPoland@LCE.com@www....
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Identifying, Mitigating and Eliminating Risk with an Asset Management Strategy

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Life Cycle Engineering

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Transcript of "Identifying, Mitigating and Eliminating Risk with an Asset Management Strategy"

  1. 1. Risk Based Asset ManagementRisk-Based Asset ManagementIdentifying, Mitigating and Eliminating Risk with an AssetIdentifying, Mitigating and Eliminating Risk with an AssetManagement StrategyMike Poland, CMRP, Life Cycle Engineering1© Life Cycle Engineering 2013© Life Cycle Engineering 2013
  2. 2. IntroductionName tent introductionTeambuilding/Grouping activityCourse learning objectivesCourse learning objectivesParticipant expectations2© Life Cycle Engineering 2013
  3. 3. Learning Objectives (1 of 2)1. Describe the four phases in implementing a risk-based asset management programbased asset management program2. Demonstrate how to effectively classify assetsa. Create asset catalogsb. Develop a functional hierarchy3. Demonstrate methods for analyzing assetsa. Perform a criticality analysisb. Create a functional block diagramc. Perform a failure mode and effects analysis3© Life Cycle Engineering 2013
  4. 4. Learning Objectives (2 of 2)4. Map control strategies to predominant failuremodesa. List elements of an effective job plan (PM)b. Develop task modules for a maintenanceplan, including resource planningp , g p g5. List key performance indicators to effectivelymeasure control strategiesg6. Calculate overall equipment effectiveness4© Life Cycle Engineering 2013
  5. 5. The Model:The Model:Risk-Based Asset ManagementSStrategy5© Life Cycle Engineering 2013
  6. 6. Risk-Based Asset Management Model•Learning toOPERATIONAL STABILITYLearning toSee MeasureMeasureControlControlAnalyzeAnalyzeClassifyClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment CriticalityFailure AnalysisRisk AnalysisStandard WorkOperating ProceduresPreventivePredictiveCondition MonitoringR t M it iOEETCOAsset UtilizationMTBFyRisk RankingRemote MonitoringOperator CareCritical SparesMTBFMTTRContinuous ImprovementContinuous ImprovementPlanPlan DoDo CheckCheck ActAct6© Life Cycle Engineering 2013
  7. 7. Strategy documented in a planStrategy documented in a planAsset Management Plan KeyCComponents7© Life Cycle Engineering 2013
  8. 8. Key Components• Asset Operation Planp• Asset Risk Plan• Asset Maintenance Plan• Asset Maintenance Plan8© Life Cycle Engineering 2013
  9. 9. Asset Management PlanAssetOperations PlanAssetMaintenance PlanAssetRisk PlanOperating ParametersPlanned UtilizationMaintenance ParametersAsset HierarchyRisk ParametersRisk strategy, toleranceStaffing RequirementsRaw/WIP Materials RequirementsMaterials Handling RequirementsEnergy/Utilities RequirementsContinuous Operating HoursProduction Schedule VariationCriticality Ranking IndexFailure Modes and EffectsMaximum Continuous OperationMean-time-between-failureMean-time-between-maintenanceMean-time-to-repairRisk definition and categorizationLoss data collectionRisk indicator data collectionControl self-assessmentRisk assessment and analysisExpected/UnexpectedIncoming Materials SpecificationsFinished Products SpecificationsProduction Minimum Lot SizePlanned Capital LifePerformance Variables (KPIs)Performance Tracking ProcesspMean-time-to-rebuildPM/PdM RequirementsOverhaul/Rebuild RequirementsSkills/Staffing RequirementsAnticipated Useful LifePerformance Variables (KPIs)Expected/UnexpectedLoss Control ScoresReal exposuresControls qualityCost benefit analysisRisk mitigation and transferPerformance Tracking ProcessBusiness Risk AssessmentPerformance Variables (KPIs)Reliability Risk AssessmentStandard Workstrategy9© Life Cycle Engineering 2013Standard Work
  10. 10. The Asset Operation Plan• Standard operating proceduresp g p• Start-up / Shut–down procedures• Materials procedures• Materials procedures• Operator care procedures10© Life Cycle Engineering 2013
  11. 11. The Asset Risk Plan• Risk identification• Risk analysis• Risk mitigation1. Identifythe Hazards6.Superviseand ReviewRisk mitigation• Communicationplan2. Assessthe Risks5.ImplementRiskControlsplan• Risk managementtable3. AnalyzeRisk ControlMeasures4. MakeControlDecisionstable11© Life Cycle Engineering 2013
  12. 12. The Benefits of Risk ManagementMANAGEMENT• Awareness of realexposuresINFORMATION• Expected Loss –how much do I loseon average?• Unexpected LossDATAexposures• Knowledge ofcontrols quality• Cost benefit analysis• Improved riskmitigation andEcoFOUNDATION• Risk strategy,tolerance• Unexpected Loss –how much I couldreasonably expectto lose in a badyear?• Control Scores –• Loss data collection• Risk indicator datacollection• Control self-assessmentmitigation andtransfer strategyonomicPro• Roles andresponsibilities• Policies andprocedures• Risk definition andcategori ationhow good are thecontrols I have inplace?• Risk assessment andanalysis• Automatic notification• Follow-up actionreportsofit© American Society for Qualitycategorization12© Life Cycle Engineering 2013Management & Control Quality
  13. 13. The Asset Maintenance PlanThe Infrastructure:• Database development• Database development• Asset definitions• Required attributes• Functional/Reliability block diagramsy g• Hierarchy development• Criticality analysis• Criticality analysis• Failure mode and effects analysis13© Life Cycle Engineering 2013
  14. 14. The Asset Maintenance PlanTask module creation• Mapping failure modes to failure detection• Mapping failure modes to failure detectionmethodsR b ild/R f bi h t it i• Rebuild/Refurbishment criteria• Assigning crafts and trades• Determining frequency• Establishing durationsEstablishing durations• Level loading tasks14© Life Cycle Engineering 2013
  15. 15. The Asset Maintenance PlanDeveloping preventive maintenance tasksp g p• Failure-based• Comprehensive procedureComprehensive procedure• Organized structure• Repeatable results• Acceptance criteria15© Life Cycle Engineering 2013
  16. 16. The Asset Maintenance PlanPredictive technologies – the big 5g g1. Thermography2 Oil analysis2. Oil analysis3. Ultrasonic analysis4. Vibration analysis5. Motor Current analysis16© Life Cycle Engineering 2013
  17. 17. The Asset Maintenance PlanMRO supportpp• Developing bill of materials• Determining critical spare part thresholdsDetermining critical spare part thresholdsC ti i tContinuous improvement• Value metrics• Feedback process17© Life Cycle Engineering 2013
  18. 18. •Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment CriticalityFailure AnalysisRisk AnalysisRisk RankingStandard WorkOperating ProceduresPreventivePredictiveCondition MonitoringRemote MonitoringOperator CareOEETCOAsset UtilizationMTBFMTTROperator CareCritical SparesContinuous ImprovementPlan Do Check ActClassify PhaseyValue Stream Maps18© Life Cycle Engineering 2013
  19. 19. Classify Phase• Process flow diagramsg• Value stream maps• Asset catalogsAsset catalogs19© Life Cycle Engineering 2013
  20. 20. Value Stream Mapping• A pictorial representation of the flow ofmaterial and information as the product isbeing built• Follow a product’s production path frombeginning to end, and draw a visualt ti f i threpresentation of every process in thematerial and information flowsD “f ” f h l• Draw a “future state” map of how valueshould flow20© Life Cycle Engineering 2013
  21. 21. VSM Icons21© Life Cycle Engineering 2013
  22. 22. VSM Icons22© Life Cycle Engineering 2013
  23. 23. Current State Mapping• Understand how the shop floor currentlyoperates• Material and information flows• Start with the “door to door” flow• Draw using iconsDraw using icons• Walk the flow and get actual numbersN t d d ti• No standard times• Draw by hand with pencil23© Life Cycle Engineering 2013
  24. 24. Current State MapSupplier CustomerQuarterly ForecastDaily OrderingMonthly ForecastWeekly DeliveriesPlanning & Control25 / DayWeeklyShipments WeeklyS h d lDaily ShipS h d lSchedule ScheduleDailyCheck68PartsC/T = 12 minC/O = 0 minU/T = 85%OP60(Ship)OP50OP40OP30OP20OP1010Parts5Parts 4Parts 12Parts 8PartsC/T = 21 minC/O = 0 minU/T = 85%C/T = 21 minC/O = 0 minU/T = 85%C/T = 21minC/O = 0 minC/T = 24 minC/O = 0 minIIIIIIU/T 85%12 min0.32days0.4 days21 min0.2 days21 min0.16 days 0.48 days21 min 24 min 99 min4.28 daysU/T = 85% U/T = 85% C/O = 0 minU/T = 85%C/O 0U/T = 85%Takt Time = 450min /25 pieces = 182.72 days24© Life Cycle Engineering 2013a t e 50 / 5 p eces 8min
  25. 25. •Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment CriticalityFailure AnalysisRisk AnalysisRisk RankingStandard WorkOperating ProceduresPreventivePredictiveCondition MonitoringRemote MonitoringOperator CareOEETCOAsset UtilizationMTBFMTTROperator CareCritical SparesContinuous ImprovementPlan Do Check ActClassify Phase:yHierarchy Development25© Life Cycle Engineering 2013
  26. 26. Hierarchy DevelopmentHierarchy is the systematic classification ofy yitems into generic groups based on factorspossibly common to several of the items( )(location, use, equipment subdivision, etc.) ina parent – child relationship.26© Life Cycle Engineering 2013
  27. 27. Functional Hierarchy(1)BusinessCategory(2)tionDataDiscuss this model and theFunctional HierarchyGuidelines in your(2)Installation/Business Unit(3)Cost Center/ Op UnitUse/LocatGuidelines in yourworkbook (pg. 7)(4)Function(5)SystemnSystem(6)Sub system/assetntSubdivisio(7)Component/Maintainable Item(8)Part/ BOMEquipmen27© Life Cycle Engineering 2013Part/ BOM
  28. 28. Functional Hierarchy Activity1. Join into groups2. Determine a system where an air compressorwould be in operation3. Refer to the compressor user guide4. Create a functional hierarchy, mapped to they, ppmotor as the lowest maintainable asseta. You can use the pyramid model, levels 1-9yto organize your hierarchy28© Life Cycle Engineering 2013
  29. 29. Client - 1 CompanyABCHierarchyFacility - 2ABCPlant ABCyAnswerKeyBuilding - 3Function - 4Building 312DistributionySystem - 5DistributionPneumatic DriveS tSub-system - 6SystemAirCompressorComponent - 7Part /BOM - 8MotorGasket29© Life Cycle Engineering 2013
  30. 30. Asset Definition• Once the hierarchy is established, the level 7y ,components are standardized into asset typesand minimum attributes are assigned tosupport:– BOM development– PM/PdM development– Failure analysis30© Life Cycle Engineering 2013
  31. 31. Asset DataDetailed information such as:• Asset criticality• Nameplate dataNameplate data• Engineering specification• Property detailProperty detail• Other searchable characteristics31© Life Cycle Engineering 2013
  32. 32. Data Collection Guidelines• Workbook has DataCollectionGuidelines forreference (pg 9)reference (pg. 9)• Discuss– Data collectionprocess– Field data gathering32© Life Cycle Engineering 2013
  33. 33. •Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment CriticalityFailure AnalysisRisk AnalysisRisk RankingStandard WorkOperating ProceduresPreventivePredictiveCondition MonitoringRemote MonitoringOperator CareOEETCOAsset UtilizationMTBFMTTROperator CareCritical SparesContinuous ImprovementPlan Do Check ActAnalyze Phase:yCriticality Analysis33© Life Cycle Engineering 2013
  34. 34. Criticality Analysis• Criticality is defined as a state of importance.y p• As a measure, it represents the severity of afailure in relation to its consequences.q• Equipment criticality is a ranking reflecting themagnitude of the consequences resulting frommagnitude of the consequences resulting froman equipment failure.34© Life Cycle Engineering 2013
  35. 35. Contributors to CriticalityConsequences usually considered are theq yimpact on:• Environment• Health• Safetyy• Production or value stream• ReputationReputation35© Life Cycle Engineering 2013
  36. 36. Criticality Thought ProcessDetermining function of equipment, system, itemprocess, etc.Is it main equipment or an auxiliary item?Is it a unique Item or common with others?Redundancy – Duplication – AlternativeDo you have a standby backup?Do you have alternative means to continue normal operation?What is the likelihood of a failure mode occurring?(High/low)Consider history of failures for equipmentConsider possibility and frequency of failuresWhat are the consequences of failure?Any production losses as a result of failure? How much?Any safety, environmental, or business losses as a result offailure?What is the likely period out of operation?Can the repair be done on site?Are spare parts available? How long to get parts if not instock?What is the longest time for repairing the failure?36© Life Cycle Engineering 2013What is the longest time for repairing the failure?
  37. 37. •Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment CriticalityFailure AnalysisRisk AnalysisRisk RankingStandard WorkOperating ProceduresPreventivePredictiveCondition MonitoringRemote MonitoringOperator CareOEETCOAsset UtilizationMTBFMTTROperator CareCritical SparesContinuous ImprovementPlan Do Check ActAnalyze Phase:Failure Mode and Effects Analysis(FMEA)37© Life Cycle Engineering 2013
  38. 38. Block Diagrams• The precursor to developing a functionalp p ghierarchy and a maintenance strategy is thefunctional and reliability block diagrams.38© Life Cycle Engineering 2013
  39. 39. Block Diagrams• Functional and reliability block diagramsy gillustrate the operation, interrelationships, andinterdependencies of functional entities.• More than one block diagram will usually berequired to display alternative modes ofoperation, depending upon the definitionestablished for the system.39© Life Cycle Engineering 2013
  40. 40. Functional Block Diagram: Purpose• The primary purpose of the functional blockp y p pdiagram (FDB) is to ensure that the REdetermines all of the functions provided by and/within the asset and/or system so thatfunctional failures can be determined andanalyzedanalyzed.40© Life Cycle Engineering 2013
  41. 41. FBD: Description• Shows major system components, their functionalrelationships to one another, and the incoming andt i i t foutgoing interfaces.• Includes:– Interfaces to distributive systemsInterfaces to distributive systems– Interfaces between subsystems– Power, data, and structural interfacesOut interfaces represent active functions– Out interfaces represent active functions– Passive functions, such as containment of fluids, may beinternal to the functional block diagramNote: For purposes of failure analysis, the RE assumes thatall incoming functions are available41© Life Cycle Engineering 2013
  42. 42. FBD ExampleTemperature& Pressure ReadoutInstrumentation& Monitors20Automatic ShutdownSignals(Temperature & High Pressure)Signal to Control ValveElectricalControlMotor10Electric Power Pump50HighPressureTorquePressure ControlValveBearingLubricationSystem3050Oil MistWater60Fresh WaterSumpFresh Water Suction40Clean Fresh WaterStrainer42© Life Cycle Engineering 2013
  43. 43. Functional Block Diagram Activity1. Join with a partner or group2. Distribute the air compressor user manual (handout)3 Review the user manual3. Review the user manual4. Draft an FBD for the air compressora Sho major s stem componentsa. Show major system componentsb. Show relationships between systemsc. Show ingoing and outgoing interfaces43© Life Cycle Engineering 2013
  44. 44. Answer – FBD ActivityPRESSUREREADOUTINSTRUMENTATION&AUTOMATICSTARTUPMONITORSSHUT DOWNELECTRICCONTROLMOTOR COMPRESSOR PRV120VACTORQUE PRESSURIZEDAIRCUT IN95 PSIPRESSURERELIEF @125 PSITANK2 GALLON CAPACITY44© Life Cycle Engineering 2013
  45. 45. FMEA• Developed by US military and standardized byp y y yautomotive industry• Top-down method• Based on industrial and in-plant historical data• Generally limited to major sub-systemsy j yCan include components, but failure modes,probability of failure, etc. based on experience, notb bilit t blprobability tables45© Life Cycle Engineering 2013
  46. 46. Example Of FMEA AnalysisPass out completed example FMEA for class to see46© Life Cycle Engineering 2013OR show onscreen example (RBAM FMEA completed example)
  47. 47. Terms• Occurrence ranking:g– A subjective estimate of the probability thata failure mode will occur.– What different variables or factors areinvolved in determining occurrence?47© Life Cycle Engineering 2013
  48. 48. Terms• Detection ranking:g– A subjective estimate of the probability thata cause of a potential failure will bedetected and corrected before reaching theend user.– A subjective estimate of the probability thata cause of a potential failure will bed t t d d t d b f f ildetected and corrected before a failure canoccur.48© Life Cycle Engineering 2013
  49. 49. Terms• Risk Priority Number (RPN):y ( )– The product of severity, occurrence, anddetection rankings– Severity x Occurrence x Detection = RPN– Sometimes divided by 30 to give you a 100– Sometimes divided by 30 to give you a 100scale49© Life Cycle Engineering 2013
  50. 50. Uses of FMEA1. Root-cause failure analysisa Methodology for understanding potential forcing functionsa. Methodology for understanding potential forcing functionsthat caused problem2. Drives preventive maintenance programp p ga. Identified forcing functions and failure modes determine thespecific PM inspections that should be done to preserve theasset and prevent failures3. Drives asset management programa. Determines the fundamental requirements, e.g. operationsand maintenance, for the asset4. Drives asset utilization plans50© Life Cycle Engineering 2013
  51. 51. Uses of FMEA5. Drives modifications and upgradesa. Many of the identified forcing functionsand failure modes can be eliminated byspecific modifications or changes inspecific modifications or changes indesign6 Drives standard work practices (SWP)6. Drives standard work practices (SWP)upgradesa Forcing functions or failures caused bya. Forcing functions or failures caused bysetup or operating methods can beeliminated51© Life Cycle Engineering 2013
  52. 52. Reliability Engineering FMEA• Engineer must understand the machine orgproduction system– Machine or operating dynamics– Inherent design strengths and limitations– Failure modes of components, sub-assemblies andp ,systems• Requires homework and self-study to gain thisq y gknowledge52© Life Cycle Engineering 2013
  53. 53. Reliability Engineering FMEA• Must be driven or supported by data– Focus Team FMEA relies exclusively on “nativeknowledge”– Engineering FMEA also uses, but all three criteriamust be verified using existing historical data• Level of detail must be as good as can beaccomplished– Focus Team uses 80-20 rule– Engineering must strive for at least 90-1053© Life Cycle Engineering 2013
  54. 54. FMEA Activity: Air Compressor1. On the FMEA form (handout) list twot ti l f ti l f ilpotential functional failures2. List five possible failure modes for any of thefunctional failures of the compressorfunctional failures of the compressora. See functional block diagram and list offailure mode descriptors in workbookfailure mode descriptors in workbook3. Input failure effects into the formf f4. Input failure causes into the form5. Enter data given in instructions to calculateRPN54© Life Cycle Engineering 2013RPN
  55. 55. •Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment CriticalityFailure AnalysisRisk AnalysisRisk RankingStandard WorkOperating ProceduresPreventivePredictiveCondition MonitoringRemote MonitoringOperator CareOEETCOAsset UtilizationMTBFMTTROperator CareCritical SparesContinuous ImprovementPlan Do Check ActControl Phase:Effective Job Plans55© Life Cycle Engineering 2013
  56. 56. The PM ProcessPlPlanDoActCheckCheck56© Life Cycle Engineering 2013
  57. 57. The PM ProgramHighOpTotal Maintenance CostBLost ProductionperatingBudgetProactiveMaintenanceBMaintenanceCostLost ProductionCaused by FailuresLack of PM AccessMtsCost of PMCost of RepairsMaintenanceBudgetLevel of MaintenanceLow HighLow57© Life Cycle Engineering 2013
  58. 58. Three Phases of PMDetectionDetection• The key elementAnalysis• Defines the specific problem fromhi h th t i i twhich the symptom originatesCorrection• The return of the PM/PdMinvestment58© Life Cycle Engineering 2013
  59. 59. Understand Degradation ProcessAvoid consequence of failureFunctional failure-System not meetingAll requirementsOnset of failureDetect potential failure-system meeting allrequirementsCondqequ e e tsditionMaintenanceWindowPending Failurenot detectedBrokenTimeWindow“PF interval" PerformanceLosses59© Life Cycle Engineering 2013Source: Ivara Corp, Hamilton, OntarioTime
  60. 60. P-F Interval Curve and DomainsChanges in Vibration P-F interval 1-9 monthsThermography ThermalAnomalies interval 1-3 monthsAcousticEmissionsUltrasoundWear Debris in oilinterval 1-6 monthsAudible noise P-F interval 1-4Ultrasoundinterval 1-10monthsP2P1weeksHeat by touch P-F interval 1-5daysP3P2daysPredictiveDomainProtectiveDomainFailure(bearing seizes)PLUS FEliminationProgramIdentificationprogram60© Life Cycle Engineering 2013Collateral DamageSource: Allied Services Group
  61. 61. PM Inspection Results• Inspection feedback is essential• Feedback should identify potentialequipment conditions needing correctiveequipment conditions needing correctiveactionTh b f ti k d• The number of corrective work ordershelps to refine the PM program• Rule of thumb: Every six inspectionsshould result in one corrective work order61© Life Cycle Engineering 2013
  62. 62. •Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment CriticalityFailure AnalysisRisk AnalysisRisk RankingStandard WorkOperating ProceduresPreventivePredictiveCondition MonitoringRemote MonitoringOperator CareOEETCOAsset UtilizationMTBFMTTROperator CareCritical SparesContinuous ImprovementPlan Do Check ActControl Phase:Maintenance Plan Task Modules62© Life Cycle Engineering 2013
  63. 63. Task Creation Guidelines• Step-through Task Creation Guidelines sheet inworkbook (pg. 19)• Review the Example Task Module on next slide(pg. 24)63© Life Cycle Engineering 2013
  64. 64. Example Task ModuleEQUIPMENT NUMBER DESCRIPTION LOCATION DOCUMENTATION VALIDATEDITEM#FREQUENCY(Days)CRAFTCRAFTSMENREQDEQUIPMENTCONDITIONTYPEEST.TIME(Hrs)ANNUAL(Hrs)01 1 ENG/RM 1 RUNNING PM 0DAILY SERVICING ROUTINES305-2-1 Disc Brake System Drill Floor Maintenance ManualSPECIAL TOOLS/MATERIALSREMARKS305-2-1 Drawworks, Dreco SSGD-750-GE Drill Floor General Service ManualMAINTENANCE TASK DESCRIPTIONPROCEDURE/TASK#01 1 ENG/RM 1 RUNNING PM 002 7 ENG/RM 1 SHUTDOWN PM 003 30 ENG/RM 1 SHUTDOWN PM 004 90 CE 1 SHUTDOWN PM 005 180 ENG/RM 1 SHUTDOWN PM 0CHECK DISC BRAKE FRICTION PADS, CHECK LUBE OIL PUMPS, CHECKHYDRAULIC OIL PUMPS AND ACCUMULATOR BOTTLES, LUBRICATE TORQUEARM AND INSPECT WIRE ROPEINSPECT LUBE OIL DISTRIBUTION LINES, CHECK GEAR OIL SPRAY NOZZLES,CHECK OPERATION OF HYDRAULIC PUMPS, INSPECT DRAWWORKS DRIVEGEARS, INSPECT THE TORQUE ARMS, OBTAIN LUBE OIL AND HYDRAULIC OILINSPECT INTEGRITY OF ELECTRICAL COMPONENTSDAILY SERVICING ROUTINESWEEKLY SERVICING ROUTINES06 360 ENG/RM 1 SHUTDOWN PM 0VERIFY OPERATION OF ISOLATION BARRIERS, CHECK PRESSURESAMPLE, REMOVE AND REPLACE LUBE OIL FILTER ELEMENT, REMOVE ANDREPLACE HYDRAULIC OIL FILTER ELEMENTINSPECT GEARS, CHECK HIGH SPEED GEAR WOBBLE, CHECK PINION GEARBACKLASH, CHECK PINION GEAR TOOTH CONTACT, INSPECT, DISASSEMBLEAND CLEAN LUBE OIL COOLING PLATE HEAT EXCHANGER, INSPECT PIPING,HOSES, CONNECTIONS AND FOUNDATION FASTENERS, DRAIN AND FLUSHHYDRAULIC POWER UNIT, CHECK BRAKE CALIPER DELAY SYSTEM, CHECKBRAKE DISK CONDITION AND NDE INSPECTION OF FOUNDATION BOLTS07 360 CE 1 SHUTDOWN PM 008 1800 ENG/RM 2 SHUTDOWN PM 009 1800 ENG/RM 5 SHUTDOWN PM 0PERFORM COMPLETE OVERHAUL AND NDE OF DRAWWORKS ASSEMBLY,REMOVE AND REPLACE HPU AND HYDRAULIC SYSTEM HOSES, REPLACEDRAWWORKS BRAKE CALIPER SPRING PACKS, NDE CALIPER PISTONS, NDECALIPER MOUNT AND GUIDE BARS CHECK BRAKE CALIPERS ALIGNMENTPERFORM CONDITION EVALUATION OF DRAWWORKS PRIOR TO SPS - TODETERMINE OVERHAUL REQUIREMENTSTRANSMITTERS, TEMPERATURE SWITCHES, LEVEL SWITCHES, DIFFERENTIALPRESSURE SWITCH, VALVE ON/OFF SOLENOID, HAND OPERATED SWITCH,ENCODER AND DEADLINE ANCHOR PRESSURE TRANSMITTER09 1800 ENG/RM 5 SHUTDOWN PM 00.00.00.00.0CALIPER MOUNT AND GUIDE BARS, CHECK BRAKE CALIPERS ALIGNMENT,INSPECT DRAWWORKS LUBRICATION SYSTEM, CHECK LUBE OIL PRESSURERELIEF AND FLOW CONTROL VALVES, AND NDE FOUNDATION BOLTS ANDSKID WELDSANNUAL SCHEDULED MAINTENANCE HRSANNUAL SHUTDOWN HRSANNUAL SENIOR TOOLPUSHER/DRILLING HRSANNUAL CHIEF ENGINEER/MECHANIC HRS64© Life Cycle Engineering 20130.00.0ANNUAL CHIEF ELECTRICIAN HRSANNUAL 3RD PARTY HRS
  65. 65. Task Module Activity• Join in groupsg p• Draft at least four maintenance tasks into theblank Task Module Worksheet (workbook,pg.25)• Resources:– Task Module Guidelines (workbook)– Compressor user guide– Example task module65© Life Cycle Engineering 2013
  66. 66. •Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment CriticalityFailure AnalysisRisk AnalysisRisk RankingStandard WorkOperating ProceduresPreventivePredictiveCondition MonitoringRemote MonitoringOperator CareOEETCOAsset UtilizationMTBFMTTROperator CareCritical SparesContinuous ImprovementPlan Do Check ActMeasure Phase:Key Performance Indicators66© Life Cycle Engineering 2013
  67. 67. Which Measures to Use?• Review the KPIdefinitions in o rKPIs for your RBAMdefinitions in yourworkbook as wedetail each KPI (pg.program:• OEE28)– Formula– Purpose• Maintenance costper RAVPurpose– Data source– Links to businessRASI• PM compliance– RASI– Frequency67© Life Cycle Engineering 2013
  68. 68. Maintenance Cost per RAVTotal Maintenance CostReplacement Asset Value (RAV)• Total Maintenance Cost: all labor, material,and contract services required to maintainfacility assets• Replacement Asset Value: value of replacingi ti t t t t ti texisting assets at current construction costs,using like technologies68© Life Cycle Engineering 2013
  69. 69. Review other KPI elementsMaintenance Cost per RAV:p– Data source– Links to businessLinks to business– RASI– FrequencyFrequency69© Life Cycle Engineering 2013
  70. 70. PM Compliance# of Scheduled PM Work Orders Completed# of Scheduled PM Work OrdersThe acceptance criteria should be within 10% ofthe scheduled frequency of the PM.For example, for a monthly (30 day) PM workorder to be considered an “on-timel ti ” it ld b li h d ithicompletion,” it would be accomplished within3 days (plus or minus) of the scheduled date.70© Life Cycle Engineering 2013
  71. 71. Review Other KPI ElementsPredictive Maintenance Compliance:p– Data source– Links to businessLinks to business– RASI– FrequencyFrequency71© Life Cycle Engineering 2013
  72. 72. •Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment CriticalityFailure AnalysisRisk AnalysisRisk RankingStandard WorkOperating ProceduresPreventivePredictiveCondition MonitoringRemote MonitoringOperator CareOEETCOAsset UtilizationMTBFMTTROperator CareCritical SparesContinuous ImprovementPlan Do Check ActMeasure Phase:Calculate OEE72© Life Cycle Engineering 2013
  73. 73. Measuring Losses from Ideal (Lean)PerformancePerformanceTheory Of Constraints10% 10%100%15%20%15%10%15%10% 10%20%25%80%90%Time Loss10%20%15%10%20%5%5%10%10%10%60%70%Time LossRate LossYield LossNo DemandAsset Utilization10%5%0%40%50%30%Step #1 Step #2 Step #3 Step #4 Step #5Manufacturing Process StepsCustomerRAW73© Life Cycle Engineering 2013Manufacturing Process Steps
  74. 74. Uptime (OEE)Operating TimeScheduled TimeUptime (%) =Note: Uptime only excludes “lack of sales/demand”Scheduled Timep y74© Life Cycle Engineering 2013
  75. 75. RateAverage RateR t (%)Best Demonstrated or DesignRateRate (%) =Note: The Best Demonstrated Rate or Design Rate,use the greater of the two. Best Demonstratedcorresponds to three highest consecutive days (1% ofannual time). If data is only available by week, thenuse best one week (2%).75© Life Cycle Engineering 2013
  76. 76. QualityFirst Pass Units*Q lit (%)First Pass UnitsTotal Units*Quality (%) =Note: The FPQ corresponds to the volume(Units) of product within specification when the(Units) of product within specification when thematerial leaves the production line or machine,compared to the total volume (Units) quantitycompared to the total volume (Units) quantityprocessed by the production line or machine.* Place holder term sometimes referred to as yield76© Life Cycle Engineering 2013Place holder term sometimes referred to as yield
  77. 77. Daily Logging OEEReview the OEE Daily Log sheet in your workbook forReview the OEE Daily Log sheet in your workbook foran example of how to calculate OEE on a dailybasis (pg. 31).77© Life Cycle Engineering 2013
  78. 78. OEE Calculator Activity• Calculate the business case potential for OEEpusing the OEE Calculator activity in yourworkbook (pg. 32).• What do the results tell you about how to useOEE to manage your program?78© Life Cycle Engineering 2013
  79. 79. OEE Scenario Activity1. Read the OEEscenario in yourscenario in yourworkbook (pg.33).2. Determine theOEE for thed ti liproduction line.3. Graph the assettili ation lossesutilization lossesper thescenario.79© Life Cycle Engineering 2013scenario.
  80. 80. Making OEE a Leading, Visual IndicatorngrandatorledmeuledmeoverofalctOperatiHourNoDemaNoOperaScheduDowntimUnschedDowntimChange-oLackoMateriaDefecUC1 X X X2 X X3 X4 X5 X X6 X7 X X8 X80© Life Cycle Engineering 20138 X
  81. 81. Total Cost of Ownershipp81© Life Cycle Engineering 2013
  82. 82. TTotalCCostoffOwnnershipp82© Life Cycle Engineering 2013
  83. 83. The Four Phase RBAM Model:R i d A ti PlReview and Action Plan83© Life Cycle Engineering 2013
  84. 84. RBAM Four Phase ReviewOPERATIONAL STABILITY•Learning toSee MeasureControlAnalyzeClassifyProcess Flow DiagramValue Stream MappingRelationship ModelsEquipment CriticalityFailure AnalysisStandard WorkOperating ProceduresPreventivePredictiveC diti M it iOEETCOAsset UtilizationRelationship ModelsyRisk AnalysisRisk RankingCondition MonitoringRemote MonitoringOperator CareCritical SparesAsset UtilizationMTBFMTTRContinuous ImprovementPlan Do Check Act84© Life Cycle Engineering 2013
  85. 85. RBAM Action Plan• Use the four-phase template in your workbook todevelop an action plan (pg.34). Include:– Activities to target in all four phases: classify,analyze control measureanalyze, control, measure– Specific actions you will take in the next 30days to support RBAMdays to support RBAM– Support you will need to build the RBAMprogram at your site• Debrief your plan to the class85© Life Cycle Engineering 2013
  86. 86. Congratulations!Celebrate learningg86© Life Cycle Engineering 2013
  87. 87. Thank You!Interested in learning more?Mike Poland CMRPMike Poland, CMRPDir., Asset Management ServicesMPoland@LCE.com@www.LCE.comVisit Life Cycle Engineering at Booth #90887© Life Cycle Engineering 2013

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