Achieving World Class Reliability @ ARC's 2011 Industry Forum by Paula Hollywood. Process and Manufacturing Industries Utilize and Extensive Asset Base Majority of process company’s assets are in manufacturing •Manufacturing assets account for 75% of total assets •Raw material, energy, and conversion costs account for 65% of total expenditures •Business Performance ~ Asset Performance •Small improvements can have big impact Process and Mfg Industries are All About Assets Asset Reliability is Vital to Business Performance

1. Achieving World Class Reliability
Paula Hollywood
Sr. Analyst
ARC Advisory Group
phollywood@arcweb.com

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Priorities in Manufacturing
What is Reliability?

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 Process and Manufacturing Industries Utilize
and Extensive Asset Base
 Majority of process company’s assets are in
manufacturing
• Manufacturing assets account for 75% of total
assets
• Raw material, energy, and conversion costs
account for 65% of total expenditures
• Business Performance ~ Asset Performance
• Small improvements can have big impact
Process and Mfg Industries are All About Assets
Asset Reliability is Vital to Business Performance

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Rate the importance of the following risks
to your organization

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The Maintenance Spend
Industry
Maintenance Costs as
% of Total Costs
Oil & Gas Extraction 27 – 49 %
Power Generation 9 – 67 %
Mining 25 – 40 %
Food Production 25 – 40 %
Wood & Paper Products 1 – 34 %
Chemical &
Petrochemical
0 – 53 %
Source: Plant Maintenance Resource Center

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What are the drivers behind your
reliability initiative? (Check all that apply)

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What Is Reliability?
 Ability of an system/asset to perform a required
function under a stated set of conditions for a
specific time period
The Belief that an Asset Will Operate
as it Should When Required

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What is World Class Reliability?
Objectives Communicated & Understood
Defined Roles & Responsibilities
Work Planned & Scheduled
Strategic Maintenance
Continuous Improvement
LCC Analysis
Effective Asset Management
Balance Workload & Resources
Education/Training
Empowered Workers
Overall Equipment Effectiveness
Asset Information Management
Best Practice Implementation
Risk Management
Meaningful Metrics
Change Management
Work is Prioritized
It is a Culture Based on Organization’s Objectives
C-Level Commitment
Cross-functional Teams
Reliability Based Maintenance
Environmental, Health & Safety Management
Sustainability

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What do you consider to be the most important factors
contributing to the success of your reliability initiative?
(Select top 3)

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What is the single greatest area of overall improvement
your reliability program has achieved for your facility?
(Select one)

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Thank You.
For more information, contact the author at
phollywood@arcweb.com or visit our web pages at
www.arcweb.com