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RELIABILITY
EXCELLENCE
THE POWER TO IMPROVE ASSET PERFORMANCE
INTRODUCTION TO
The Business Case for Reliability
Reliability Excellence has helped manufacturers:
Increase capacity
Increase product availability
Reduce cost of goods sold
Improve overall equipment effectiveness (OEE)
Reduce maintenance costs and spending
+
+
+
-
-
Implementing Reliability Excellence
Examples of Business Results:
CLIENT RESULTS ROI
Pharma Products Increased capacity 15%
Reduced COGS 5%
ROI > 20:1 (18 months)
Healthcare Products Increased availability >15%
Improved OEE 10%
Reduced maintenance costs 20%
ROI > 15:1 (3 years)
Primary Metals (34 Plants) Reduced maintenance spending 10%
Increased capacity (% confidential)
ROI 5:1 to 16:1 (3 years)
Metals Processing Reduced maintenance spending 20%
Increased anode capacity 10%
Increased aluminum capacity 4%
ROI 16:1 (3 years)
Steel Increased capacity through OEE
Improvements of greater than 2%
ROI > 11:1 (3 years)
Beverage Increased capacity of high speed
process >25%
Reduced COGS 10%
ROI > 20:1 (24 months to date)
By designing reliability into daily plant operations and creating a culture of prevention and improvement, plants can
operate as safer, more productive and more profitable businesses.
The Reliability Excellence Journey
The Reliability Excellence journey
requires building the foundation of
principles and culture, establishing and
optimizing the processes and procedures
that create reliability, and putting in place
the management and reporting elements
that drive sustainability and continuous
improvement.
A Three-Wave Approach to the Rx Journey
Wave 1: Education and Communication
Activities Include:
• Conducting initial strategic planning workshops
• Executive-level introduction to the principles of Rx
• Integrating reliability improvement initiative with the overall business plan
• Developing manufacturing objectives, goals and targets
• Establishing a cross-functional leadership team to sponsor the Rx
program
Wave 2: Assessment, Master Planning and Business
Case Development
Activities Include:
• Identifying key opportunities using Rx assessment methodologies
• Developing the Master Plan for Rx implementation
• Quantifying the business case for Rx implementation
• Establishing the change management structure required to support
implementation
Wave 2: Assessment Using the Reliability Excellence Model
The objective of the assessment is to
examine and evaluate current reliability
processes and practices as compared to
industry-accepted best practices. This
analysis is used to build an Rx
implementation Master Plan and a
business case that supports the plan.
Reliability Excellence Model
Founded on the values and tools of Six Sigma and incorporates the principles and strengths of Lean Manufacturing, Total Productive Maintenance, Total
Quality Management, Maintenance Excellence™ and similar programs that define best practices, into a single, holistic, continuous improvement process.
.
Wave 2: Benefits of Performing an Rx Assessment
In addition to building organizational awareness, alignment and buy-in,
the process delivers:
• Widespread understanding of the current state of operations and the
gaps that exist between the current state and Rx best practices
• Leadership commitment to the initiative
• A defined roadmap – the Master Plan – that will lead to the future state
• A cost/benefit business case that supports the financial justification to
undertake the initiative
• The identification of prospective change agents who will actively drive
and sustain the new organizational culture
Wave 3: Master Plan Implementation, Measurement
and Follow-up
Activities Include:
• Establishing leadership and focus team structure to execute the
Master Plan
• Providing Rx subject matter and leading change training to
accelerate the design process
• Supporting development of business processes with dedicated
subject-matter coaching
• Continually monitoring project progress against agreed-upon
deliverables and timeline
• Proactively managing culture change to ensure early adoption of
new business processes
Visit PoweredByRx.com to learn more about Reliability Excellence
and access more than 400 resources related to reducing risk,
improving performance and engaging employees.

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Introduction to Reliability Excellence

  • 1. RELIABILITY EXCELLENCE THE POWER TO IMPROVE ASSET PERFORMANCE INTRODUCTION TO
  • 2. The Business Case for Reliability Reliability Excellence has helped manufacturers: Increase capacity Increase product availability Reduce cost of goods sold Improve overall equipment effectiveness (OEE) Reduce maintenance costs and spending + + + - -
  • 3. Implementing Reliability Excellence Examples of Business Results: CLIENT RESULTS ROI Pharma Products Increased capacity 15% Reduced COGS 5% ROI > 20:1 (18 months) Healthcare Products Increased availability >15% Improved OEE 10% Reduced maintenance costs 20% ROI > 15:1 (3 years) Primary Metals (34 Plants) Reduced maintenance spending 10% Increased capacity (% confidential) ROI 5:1 to 16:1 (3 years) Metals Processing Reduced maintenance spending 20% Increased anode capacity 10% Increased aluminum capacity 4% ROI 16:1 (3 years) Steel Increased capacity through OEE Improvements of greater than 2% ROI > 11:1 (3 years) Beverage Increased capacity of high speed process >25% Reduced COGS 10% ROI > 20:1 (24 months to date) By designing reliability into daily plant operations and creating a culture of prevention and improvement, plants can operate as safer, more productive and more profitable businesses.
  • 4. The Reliability Excellence Journey The Reliability Excellence journey requires building the foundation of principles and culture, establishing and optimizing the processes and procedures that create reliability, and putting in place the management and reporting elements that drive sustainability and continuous improvement.
  • 5. A Three-Wave Approach to the Rx Journey
  • 6. Wave 1: Education and Communication Activities Include: • Conducting initial strategic planning workshops • Executive-level introduction to the principles of Rx • Integrating reliability improvement initiative with the overall business plan • Developing manufacturing objectives, goals and targets • Establishing a cross-functional leadership team to sponsor the Rx program
  • 7. Wave 2: Assessment, Master Planning and Business Case Development Activities Include: • Identifying key opportunities using Rx assessment methodologies • Developing the Master Plan for Rx implementation • Quantifying the business case for Rx implementation • Establishing the change management structure required to support implementation
  • 8. Wave 2: Assessment Using the Reliability Excellence Model The objective of the assessment is to examine and evaluate current reliability processes and practices as compared to industry-accepted best practices. This analysis is used to build an Rx implementation Master Plan and a business case that supports the plan. Reliability Excellence Model Founded on the values and tools of Six Sigma and incorporates the principles and strengths of Lean Manufacturing, Total Productive Maintenance, Total Quality Management, Maintenance Excellence™ and similar programs that define best practices, into a single, holistic, continuous improvement process. .
  • 9. Wave 2: Benefits of Performing an Rx Assessment In addition to building organizational awareness, alignment and buy-in, the process delivers: • Widespread understanding of the current state of operations and the gaps that exist between the current state and Rx best practices • Leadership commitment to the initiative • A defined roadmap – the Master Plan – that will lead to the future state • A cost/benefit business case that supports the financial justification to undertake the initiative • The identification of prospective change agents who will actively drive and sustain the new organizational culture
  • 10. Wave 3: Master Plan Implementation, Measurement and Follow-up Activities Include: • Establishing leadership and focus team structure to execute the Master Plan • Providing Rx subject matter and leading change training to accelerate the design process • Supporting development of business processes with dedicated subject-matter coaching • Continually monitoring project progress against agreed-upon deliverables and timeline • Proactively managing culture change to ensure early adoption of new business processes
  • 11. Visit PoweredByRx.com to learn more about Reliability Excellence and access more than 400 resources related to reducing risk, improving performance and engaging employees.