JR Dickens - IWCS 2007


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Presentation to the 2007 International Wood Composite Symposium in Seattle, WA

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JR Dickens - IWCS 2007

  1. 1. Reliability: Next Generation Asset Management James Robert Dickens, Ph.D. Temple-Inland Inc. Forest Products Group Diboll, Texas
  2. 2. What is “Reliability”? <ul><li>Let’s define reliability as the readiness of a machine to produce first-run quality at design capacity for the expected lifetime of the asset. </li></ul><ul><li>Unreliability is easy to spot: </li></ul><ul><ul><li>Machines broken down </li></ul></ul><ul><ul><li>Machines running below design capacity </li></ul></ul><ul><ul><li>Machines not producing first-run quality </li></ul></ul><ul><ul><li>Machines running below design capacity and not producing first-run quality </li></ul></ul>
  3. 3. Functional Failure <ul><li>“Functional failure” occurs when the machine is still operating, but at reduced capacity or quality. </li></ul>
  4. 4. What is the Purpose of Maintenance? <ul><li>There are two basic ways to approach maintenance: </li></ul><ul><ul><li>Fix what’s broke </li></ul></ul><ul><ul><ul><li>Reactive – restore capacity </li></ul></ul></ul><ul><ul><ul><li>Every day is full of surprises </li></ul></ul></ul><ul><ul><ul><li>Lots of “What happened?” </li></ul></ul></ul><ul><ul><ul><li>Improvement means reacting faster </li></ul></ul></ul><ul><ul><li>Keep equipment in like-new condition </li></ul></ul><ul><ul><ul><li>Proactive – preserve capacity </li></ul></ul></ul><ul><ul><ul><li>Work is planned days or weeks ahead of time </li></ul></ul></ul><ul><ul><ul><li>Lots of “What if?” </li></ul></ul></ul><ul><ul><ul><li>Improvement means avoiding breakdown </li></ul></ul></ul>
  5. 5. Maintenance as Culture <ul><li>Maintenance reflects the culture of the organization. </li></ul><ul><li>And, maintenance is part of the culture of the organization. </li></ul><ul><li>In order to fundamentally change maintenance, there must be a culture change. </li></ul>
  6. 6. Maintenance as Culture <ul><li>The journey toward reliability is more than implementing a set of tools. </li></ul><ul><li>In other words, reliability is more than just a program. </li></ul>
  7. 7. Management of Change <ul><li>Three important points about change: </li></ul><ul><ul><li>Change always takes time </li></ul></ul><ul><ul><li>Change is always difficult </li></ul></ul><ul><ul><li>Change takes commitment and leadership at all levels </li></ul></ul><ul><li>Leadership requires vision – a clear picture of the destination – and the ability to effectively transmit that vision to others. </li></ul>
  8. 8. Topics of Discussion <ul><li>Maintenance progresses from reactive to proactive </li></ul><ul><li>Culture change is driven in part by metrics </li></ul><ul><li>The maintenance organization forms a cohesive system </li></ul><ul><li>Roles and responsibilities are clearly defined </li></ul><ul><li>Improvement requires an ongoing investment in capabilities </li></ul><ul><li>Case studies illustrate the value of condition monitoring </li></ul>
  9. 9. Stages of Progress
  10. 10. Stages of Progress <ul><li>The journey toward reliability tends to progress in several identifiable stages: </li></ul><ul><ul><li>Reactive </li></ul></ul><ul><ul><li>Preventive </li></ul></ul><ul><ul><li>Predictive </li></ul></ul><ul><ul><li>Proactive </li></ul></ul>
  11. 11. Reactive <ul><li>Run-to-failure* </li></ul><ul><li>Git-R-Dun: </li></ul><ul><ul><li>If it’s broke, fix it quick and fix it cheap. </li></ul></ul><ul><ul><li>If it ain’t broke, don’t fix it. </li></ul></ul><ul><ul><li>If it’s broke but still runs, fix it later. </li></ul></ul><ul><ul><li>If it’s making a funny noise, don’t worry about it. </li></ul></ul><ul><li>* Run-to-failure may be considered cost-effective for non-critical items with non-hazardous failure modes. </li></ul>
  12. 12. Preventive <ul><li>Preventive Maintenance (PM) </li></ul><ul><li>Time-based </li></ul><ul><li>Maintenance carried out at predetermined intervals, or to other prescribed criteria, and intended to reduce the likelihood of a functional failure. </li></ul><ul><li>PM is not a silver bullet </li></ul><ul><li>Excessive PM is not cost-effective </li></ul>
  13. 13. Predictive <ul><li>Predictive Maintenance (PdM) </li></ul><ul><li>Condition-based (trending) </li></ul><ul><li>Use of measured physical parameters against known engineering limits for detecting, analyzing, and optimizing the resolution of equipment problems before a failure occurs. </li></ul><ul><li>Monitor while running </li></ul><ul><li>Best-suited for critical equipment </li></ul>
  14. 14. Proactive <ul><li>Prevention of failures prior to and during the service life of the equipment </li></ul><ul><ul><li>Alignment </li></ul></ul><ul><ul><li>Balancing </li></ul></ul><ul><ul><li>Lubrication </li></ul></ul><ul><ul><li>Cleanliness </li></ul></ul><ul><ul><li>Root cause failure analysis (RCA) </li></ul></ul><ul><ul><li>Failure Modes and Effects Analysis (FMEA) </li></ul></ul>
  15. 15. Metrics
  16. 16. Importance of Metrics <ul><li>In any organization, the tendency is to measure what’s important, and then to manage what’s measured. </li></ul><ul><li>Both inputs and outputs can be measured. </li></ul><ul><li>Many “management” measures are outputs (e.g., cost, productivity, quality, downtime). </li></ul>
  17. 17. The Danger Zone <ul><li>Measurements can make one nearsighted </li></ul><ul><ul><li>Tend to focus on one thing at a time, rather than the whole system (suboptimize) </li></ul></ul><ul><ul><li>Try to manage today based on what happened yesterday (react) </li></ul></ul><ul><ul><li>Tend to look at things on a surface level and may not realize the impact of things that are not being measured (fight fires) </li></ul></ul>
  18. 18. Metrics <ul><li>One of the key metrics is OEE </li></ul><ul><li>Overall Equipment Effectiveness (%) </li></ul><ul><ul><li>= Uptime x Throughput x Quality </li></ul></ul><ul><li>OEE balances three important measures of success – can’t focus on one to the exclusion of the others </li></ul><ul><li>OEE is an “output” measure – after-the-fact </li></ul>
  19. 19. Metrics <ul><li>Additional metrics focus more attention on “inputs” - activities that reduce failures over time </li></ul><ul><li>Examples: </li></ul><ul><ul><li>% PM completed on time </li></ul></ul><ul><ul><li>% work orders generated by PM </li></ul></ul><ul><ul><li>% OT hours of total maintenance hours </li></ul></ul><ul><ul><li>% PM hours of total maintenance hours </li></ul></ul><ul><ul><li>% critical equipment monitored by PdM </li></ul></ul>
  20. 20. Elements of Maintenance
  21. 21. Elements of Maintenance <ul><li>Maintenance is an integrated system that includes numerous functional responsibilities </li></ul>
  22. 22. Elements of Maintenance <ul><li>Preventive Maintenance </li></ul><ul><li>Predictive Maintenance </li></ul><ul><li>Reliability Engineering </li></ul><ul><li>Planning & Scheduling </li></ul><ul><li>Storeroom Management </li></ul><ul><li>Standard Maintenance Procedures </li></ul><ul><li>Equipment Standards </li></ul><ul><li>Asset Criticality </li></ul><ul><li>Computerized Maintenance Management System (CMMS) </li></ul>
  23. 23. Roles and Responsibilities
  24. 24. Roles and Responsibilities <ul><li>Within the mill environment, the contribution of each employee must be clearly defined. </li></ul>
  25. 25. Key Roles <ul><li>Maintenance Manager </li></ul><ul><ul><li>Maintenance Supervisor </li></ul></ul><ul><ul><ul><li>Mechanical Technicians </li></ul></ul></ul><ul><ul><ul><li>Electrical Technicians </li></ul></ul></ul><ul><ul><li>Planner </li></ul></ul><ul><ul><li>Scheduler </li></ul></ul><ul><ul><li>Storeroom Manager </li></ul></ul><ul><ul><li>Control System Engineer </li></ul></ul><ul><ul><li>Reliability Engineer </li></ul></ul><ul><li>Production workers </li></ul>
  26. 26. Ongoing Investment
  27. 27. Ongoing Investment <ul><li>Enhancing the effectiveness of reliability requires an ongoing investment in capabilities: </li></ul><ul><ul><li>Personnel </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Equipment </li></ul></ul>
  28. 28. Predictive Capabilities <ul><li>Investment in predictive capabilities may include the following techniques: </li></ul><ul><ul><li>Vibration testing </li></ul></ul><ul><ul><li>Thermography </li></ul></ul><ul><ul><li>Motor circuit evaluation </li></ul></ul><ul><ul><li>Ultrasonic testing </li></ul></ul><ul><ul><li>Oil analysis </li></ul></ul>
  29. 29. Case Studies
  30. 30. Refiner Motor <ul><li>An unusual vibration on the refiner deck led to further investigation of a 1,250 HP refiner motor. </li></ul><ul><li>The motor was monitored closely until preparations were made to remove the rotor. </li></ul><ul><li>Vibration testing had detected broken rotor bars. </li></ul><ul><li>The motor was rebuilt with no unscheduled downtime and with a cost avoidance of about $50k compared to catastrophic failure. </li></ul>
  31. 31. Press Servo Pump <ul><li>Routine vibration monitoring detected an anomaly near one of the servo pump bearings. </li></ul><ul><li>The anomaly was monitored closely over the next several months. </li></ul><ul><li>After two significant increases, management was notified of a potentially critical condition. </li></ul><ul><li>During the next routine shutdown, a worn motor coupling was determined to be the source of the vibration. </li></ul><ul><li>The coupling was replaced and the motor and pump were laser-aligned without further loss of production. </li></ul>
  32. 32. Conclusion
  33. 33. The Reliability Journey <ul><li>As illustrated in this presentation, the ongoing application of reliability concepts has the potential for creating a competitive advantage by maintaining equipment in good operating condition. </li></ul>
  34. 35. Appendix: The Economic Cost of Poor Reliability
  35. 36. Measuring the Cost of Maintenance <ul><li>Direct cost of maintenance is easy to measure based on the P&L. </li></ul><ul><ul><li>Cost of labor & burden </li></ul></ul><ul><ul><li>Cost of materials, parts, equipment, services </li></ul></ul><ul><li>Direct cost of maintenance is only the tip of the iceberg. </li></ul><ul><li>Indirect cost of maintenance is hidden out of sight. </li></ul>
  36. 37. Cause and Effect <ul><li>One of the big challenges for managing maintenance is the extended time between actions and consequences . </li></ul><ul><li>All failures have a cause, but the cause and effect may be separated by weeks, months, or years. </li></ul><ul><li>E.g., failure to properly align and balance a newly installed machine may be the “event” that led to the machine’s breakdown two years later. </li></ul>
  37. 38. Cause and Effect <ul><li>In order to gain the long-term benefits of proactive maintenance, the short-term tasks must be carried out with discipline – even though there are daily pressures to the contrary. </li></ul>
  38. 39. Downtime <ul><li>Downtime occurs when the plant is not producing new product. </li></ul><ul><li>What is the direct cost of lost sales due to downtime? </li></ul><ul><li>For a typical medium-sized board plant in a good market, lost sales alone will account for several million dollars per year. This is probably the biggest loss component. </li></ul><ul><li>Downtime should be measured against the total available hours (24/7/365). </li></ul>
  39. 40. Productivity Losses <ul><li>Functional failure occurs when the plant is running, but at reduced capacity or diminished quality. </li></ul><ul><li>Uptime can be a misleading metric when we’re running slow. </li></ul><ul><li>OEE reflects losses from a functional failure. </li></ul>
  40. 41. Downgrade <ul><li>Run-time downgrade may result from equipment operating outside of tolerances. </li></ul><ul><li>Start-stop downgrade occurs each time there is a line stop. </li></ul>
  41. 42. Transition Losses <ul><li>Transition losses occur during changeovers. </li></ul><ul><ul><li>Lost production </li></ul></ul><ul><ul><li>Scrap and seconds </li></ul></ul><ul><li>Transition losses become more critical as product runs shorten. </li></ul>
  42. 43. Production Scheduling <ul><li>In a produce-to-order system, expected process losses are offset by increasing the scheduled production output. </li></ul><ul><ul><li>Increases lead time </li></ul></ul><ul><ul><li>Increases inventory (on-grade and downgrade) </li></ul></ul>
  43. 44. Excess Inventory <ul><li>Inventory tends to pile up around machines with poor reliability. </li></ul><ul><ul><li>bottlenecking </li></ul></ul><ul><ul><li>quality problems </li></ul></ul><ul><li>Spare parts inventory is managed according to the JIC model – keeping one of everything “just-in-case.” </li></ul><ul><li>The carrying cost of excess inventory can easily be in the hundreds of thousands of dollars every year. </li></ul><ul><li>The higher the inventory, the greater the risk of damage and obsolescence. </li></ul>
  44. 45. Excess Shipping Costs <ul><li>In a reactive maintenance culture, spare parts will inevitably have to be expedited. </li></ul>
  45. 46. Safety & Environmental Impact <ul><li>Poor reliability has the potential to affect safe operation of equipment and compliance with environmental requirements. </li></ul>
  46. 47. Excess Capital Requirements <ul><li>In a reactive maintenance culture, reliability may be boosted by: </li></ul><ul><ul><li>Over-design of equipment </li></ul></ul><ul><ul><li>Redundant systems </li></ul></ul><ul><ul><li>Surge capacity (to mitigate short outages) </li></ul></ul><ul><ul><li>Increased warehouse capacity </li></ul></ul>
  47. 48. Rework <ul><li>Repairs not done right the first time will lead to rework. </li></ul><ul><ul><li>How many of your equipment problems are new problems? </li></ul></ul><ul><li>Management may be inclined to compensate for excessive unscheduled downtime by cutting back on scheduled maintenance . . . in turn leading to more unscheduled downtime. </li></ul>
  48. 49. Cycle Time Inflation <ul><li>Unscheduled line stops and operating below design capacity add to the process cycle time. </li></ul><ul><ul><li>Increased downgrade, higher work-in-process, longer lead time </li></ul></ul>
  49. 50. Can you afford it? <ul><li>The total cost of poor reliability may be many times in excess of the annual maintenance budget. </li></ul>