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Maintenance and
Reliability
Best Practices
Mohsin Murtaza
Course no: ___________
Revision: 01
Revision date: 14 Nov, 2018
Page: ___out of ___
WP-003/ MRO-48 Slide Template #

FAISAL ALI KHAN
• Current role: (DM FG Learning And Development Center)
• Education: B.Sc Mechanical from
• Experience: 16 years (Project handling, commissioning,
Static and Rotary equipment maintenance)
• Trained on ISO-29993 methodology to deliver learning services
INTRODUCTION
COURSE FACILITATORS

MOHSIN MURTAZA
• Certifications: CMRP, CRL, CSSGB, VA-Cat II
• Education: B.Sc Mechanical from UET Taxila (2010)
• Experience: 08 years
• Current role: Rotating equipment Engineer (Ammonia / NA)
• Membership: SMRP, AMP, ASQ
• Trained on ISO-29993 methodology to deliver learning services
• Number of training courses
INTRODUCTION
COURSE FACILITATORS

Knowing a little about each other improves class
performance.
Lets know about each other…
• Name
• Current position / title
• Years with the organization
• If you could change one thing at workplace, it would be…..
• Experience about M&R
INTRODUCTION
PARTICIPANTS INTRODUCTIONS

Be on time
Breaks are planned
Emergency Response
Restrooms
No Smoking
Eat or drink
Avoid phone calls
Ask questions
Mutual Respect Add knowledge
INTRODUCTION
CLASSROOM NORMS

2 minutes
INTRODUCTION
COURSE OBJECTIVES

INTRODUCTION
COURSE OBJECTIVES

• What is best practice
• Understanding Maintenance
• Introduction to Reliability
M&R best practices
• What makes organizational culture
• Mapping existing culture
• Sample reliability organization
Culture and Organization
• Management of change
• MRO store management
• Risk management
Business Process
Management
• Study Manufacturing processes
• OEE and TEEP
• Total productive maintenance
Manufacturing Process
Reliability
• Identification & Prioritization
• Planning & Scheduling
• Wrench time estimation
Work Management
• Building a maintenance strategy
• Managing lubrication program
• Build condition monitoring program
• Root cause analysis
• Reliability centered maintenance
Equipment Reliability
INTRODUCTION
COURSE CONTENTS

Understand what is a best Practice
Explain how M&R best Practices are related to results
Understand advantages of following M&R best practices
Identify hurdles and barriers for implementing best practices
Evaluate how we can compare our M&R performance to World Leaders
WHAT IS BEST PRACTICE
LEARNING OBJECTIVES

“Among the various methods and
implements used in each element of each
trade, there is always one method and one
implement which is quicker and better than
any of the rest.
Frederick Taylor
An idea, a technique, practice, method
or process which produces superior
results compared to the alternatives.
“what is possible” and not “what is
somebody else doing”
Standard way to achieve better results
1. INTRODUCTION

M&R best practices are practices that have been
demonstrated by organizations who are leaders in their industry.
SMRP and EN have developed more than 70 metrics to
evaluate M&R performance… Result oriented approach
These metrics are put into five categories to form a balanced
score card for M&R performance.
If metrics (results) are good and consistent, it indicates the
organization is demonstrating best practices in that area.
2. M&R BEST PRACTICES

Select metric with Desired outcome…
What results are important in the organizational context
Determine required information
Set up data collection system
Identify resources required
What is required… Manpower, tools, training, infrastructure, systems
Define benchmark results
Assurance
Measure performance against benchmark and determine the gap
Continuous improvement
PDCA cycle… How others have achieved outstanding results
3. ELEMENTS OF M&R BEST PRACTICES

2. M&R BEST PRACTICES BENCHMARKS
Business and
Management
Maintenance cost as
%RAV
MRO inventory as %RAV
Manufacturing
Process Reliability
Uptime
Utilization
OEE
TEEP
Equipment
Reliability
MTBF / MTTF
MTTR
Total downtime
Scheduled Downtime
Leadership and
Organization
Training hours
Rework
Work Management
Planned work
Backlog
PM to CM ratio
Schedule compliance

Increase output with the same assets
Reduce the need for capital replacement
Reduce maintenance cost per unit
Reduce total cost per unit
Improve performance — cost, productivity, and safety
Increase competitiveness
Increase market share
4. ADVANTAGES OF M&R BEST PRACTICES

Leadership… Executive Sponsorship
Knowledge and Competency
Knowledge of what are best practices
Competency to implement best practices
Organizational culture
Traditional Culture – Failures are inevitable
Focus on being good at REACTING
Competing objectives – Group competition
Production targets versus maintenance budgets
Uptime versus PM compliance
Stakeholder’s buy-in
5. HURDLES TO IMPLEMENT M&R BEST PRACTICES

• Is maintenance costs below 2.5% of plant replacement value
• Is mechanical availability above 97%
• Is schedule compliance more than 90%
• Is 100% man-hours of crew in maintenance team planned
• Remember, We are what we repeatedly do.
Excellence is not an act, but a habit
6. ARE WE FOLLOWING M&R BEST PRACTICES

QUESTIONS

Maintenance and Reliability best practices are defined
by;
Corporate Companies
Any organization, based on proven results
Maintenance Managers
Society of Maintenance and Reliability Professionals
LEARNING POINTS

SMRP has divided M&R metrics into how many
groups;
Three
Four
Five
Six
LEARNING POINTS

Mean time between failure is a M&R metric which
belongs to _______________ category
Equipment Reliability
Leadership and Organization
Work Management
Business and Management
LEARNING POINTS

For world class performance, compliance of
maintenance schedule should be;
75% or higher
30% to 50%
100%
More than 90%
LEARNING POINTS

Which of following is not a hurdle for implementing
maintenance and reliability best practices?
Contemporary Culture
Management commitment and support
Buy in of concerned people
Competing group objectives
LEARNING POINTS

For world class performance, maintenance cost should
not be more than ______ % of plant RAV
90%
10%
5%
2%
LEARNING POINTS

Exercise - I
You are given a number of placards with some
scenarios of persons performing certain tasks.
Segregate these placards in following categories
after discussion within your teams
Maintenance work
Routine Operation / activity
Reliability work
10 minutes

Understand how modern demand from maintenance is
different from the historical context
Understand definition of key maintenance terms
Classify different types of maintenance tasks depending on
their basis and timing related to functional failures of assets
Understand the role of CMMS in maintenance organization
Understand how maintenance metrics help maintenance
manager to effectively run the maintenance organization
UNDERSTANDING MAINTENANCE
LEARNING OBJECTIVES

1. WHAT IS MAINTENANCE

The traditional concept
Production gives us the
profits
Maintenance costs us
money and is a burden
to the organization

What is MAINTENANCE
Tasks performed to fix an asset after it is damaged

In 1970s, the concept somewhat changed
Maintenance which is
not carried out timely,
costs even more

Revised definition of MAINTENANCE
Restore an asset to its original condition
Keep in designed or acceptable condition
Keep from losing partial or full functional capabilities
Preserve
Protect

Maintenance is now a strategic task
Competition and ever increasing costs of raw
materials and energy have put maintenance
into a leading role in the organizations.
Angry
customer
Work
Environment
Lost Market
share
Quality
losses
Energy
losses
Capacity
losses
Capital
costs
Production
loss
Legal
implications
Customer
Bad Repute

Modern definition of MAINTENANCE
New paradigm is related to Capacity Assurance.
What defines the acceptable level of capacity?
Management
Design capacity
Business objectives

Maintenance organization is typically responsible for following tasks.
Design the policies and procedures at an early stage.
Identify organizational activities pertaining to maintenance function.
Determine maintenance workload and organizational chart
Uniformly distribute work to all the personal in the department
Identify, prioritize and assign essential works to various sections
Understand available knowledge, technical skills and competence
Properly train the staff to meet the growing demands of the industry
Maintain document record for repairs and replacements
Technical and economic analysis of availability and performance
Efficient work performance and failure prevention
Ensuring personnel and asset safety
Ensuring proper and timely supply of spare parts

Types of MAINTENANCE ORGANIZATIONS
Decentralized
Centralized
Partially centralized - Hybrid

Asset, Physical
Component
Failure / Failure mode
Maintenance backlog
Maintenance quality
Maintenance costs
Computerized Maintenance Management System
Maintenance key performance indicators
2. DEFINITIONS OF KEY MAINTENANCE TERMS

TBM – Age related
RBM – Usage related
CBM – Health related
OBM – Operations related
Maintenance done BEFORE a
functional failure
CM – Breakdown
CM – Emergency
CM – Run to failure
Maintenance done AFTER a
functional failure
Area Surveillance
Condition monitoring
Risk based inspections
Online data analysis - IIOT
Failure finding tasks / Health
Monitoring
CPM – TA maintenance
Opportunity based maint.
Design out maintenance
PERCUSSIVE MAINTENANCE
Special category maintenance
tasks
3. MAINTENANCE TASKS

Is PERCUSSIVE MAINTENANCE a strategy!
Try at your own risk
3. MAINTENANCE TASKS

4. MAINTENANCE OBJECTIVES

5. MAINTENANCE CHALLENGES

6. ROLE OF CMMS IN MAINTENANCE (USES)
Scheduling
module
Inventory
Management
Training
management
Contractors
management
Asset database and
maintenance history
Reliability data records
Work order management
Preventive
maintenance
Checklists /
Safety tips

Enable maintenance processes
Facilitate record keeping
Improve work efficiency
Eliminate manual paper work
Customized reports / analysis
Fact based asset management
Centralized asset history
Integration with other
organizational systems
6. ROLE OF CMMS IN MAINTENANCE (BENEFITS)

Poor quality of input data… Garbage in – garbage out
1
Limited understanding and use of features
2
Too much customization
3
No decision making based on data… No data analysis
4
No periodic follow-up reviews
5
Trouble with failure mode entries
6
Employee complacency
7
6. ROLE OF CMMS IN MAINTENANCE (CHALLENGES)

7. MAINTENANCE METRICS
KPIs, also called metrics, are an important management tool to
measure performance and help us make improvement actions.
Should encourage the right behavior
Should be difficult to manipulate
Should be easy to measure — data collection and reporting

7. MAINTENANCE METRICS
What are the right M&R KPIs
Meaningful Measurable Achievable Aligned Determining
Maintenance delivery KPIs
Maintenance cost KPIs
Equipment reliability KPIs
Work quality KPIs
Risk reduction KPIs
Resource utilization KPIs

7. MAINTENANCE METRICS (SMRP GUIDELINES)
Metric Typical World class
Maintenance cost % RAV 3% - 9% 2.5% – 3.5%
Breakdowns - Production loss 5% – 10% <1%
Unscheduled CM - Reactive 40% - 55% <10%
Planned maintenance 40% - 70% 85% - 90%
Overtime 10% - 20% <5%
Rework – Maintenance quality ~ 10% <1%
Schedule compliance 40% - 60% >90%

7. MAINTENANCE METRICS (DUPONT GUIDELINES)

QUESTIONS

Which of the following is least desired function of
maintenance within a production organization;
Efficiently restoring failed asset to working condition
Capacity assurance
Zero failures
Prevent partial or full loss of function
LEARNING POINTS

An asset breakdown occurs unexpectedly in your area
of responsibility. Which of the following is the most
likely consequence of such failure
Quality defects
Speed reduction
Unsafe working environment
Production loss
LEARNING POINTS

The highest percentage of failures occurs in which of
the following phases;
During off hours and weekends
Shortly after a plant outage
During normal plant operation
During shutdown
LEARNING POINTS

Which of the following maintenance strategies is
reactive in nature;
Operator based maintenance
Emergency maintenance
Condition based maintenance
Opportunity based maintenance
LEARNING POINTS

Maintenance scheduling and resource allocation
feature of a CMMS system is ________________;
Optional feature
Essential feature
Good to have feature
Defined on basis of organizational context
LEARNING POINTS

For world class performance, rework rate will be
typically ______ .
Less than 5% of total maintenance hours
Less than 1% jobs
2% to 5% of total work orders
Less than 1% of total maintenance hours
LEARNING POINTS

Which of the following traits of a maintenance metric
indicates its usefulness for making decision (initiate
PDCA cycle).
Achievable
Determining
Meaningful
Aligned
LEARNING POINTS

UNDERSTANDING RELIABILITY
LEARNING OBJECTIVES
Understand terms Reliability, availability and maintainability
Explain why is reliability important in equipment lifecycle
Develop bathtub curve and reliability distribution
Construct reliability block diagrams for complex systems and
determine reliability in series or parallel.

1. WHAT IS RELIABILITY

Reliability is the buzzword for maintenance
departments around the world.
So,
What is Reliability

It's a probability
Mission Time
Defined Conditions
It is the probability that a system
will perform its intended function
satisfactorily for a specified period
of time under stated conditions.
(MIL-STD-721C)
Functioning asset

Engine Starter
motor
There shall be a 90% probability (of success)
that the cranking speed is more than 85 rpm
after 5 seconds of cranking (function)
at — 20 ◦F of (environment)
for a period of 10 years or 100,000 miles
(mission time).

Reliability
Inherent
Reliability
Operating
Habits
Maintenance
Habits
Leadership & Culture
What determines the
reliability of an asset

It is usually expressed as a percentage and measured by
mean time between failures (MTBF) or Failure rate (FR)
Mean time
between failure
Operating time
Number of failures
Compressor running hours
100 152 191 287 491 512 637 785 860 957
Failure Rate
Number of failures
Operating time

Construction and Installation
Raw material quality
Skills and abilities of operators
Quality of maintenance work
Preventive maintenance
Quality of materials
Age
Supporting services
MTBF depends on following factors
Design
Overloading
Environment
Quality of spares
Operating conditions
Interlocking systems
Redundancy
Modifications

Mathematical expression for reliability
where;
R (t) : Reliability for given time
e : Natural log base (2.718)
λ : Failure rate
t : Mission time
Decaying exponential
curve

A hydraulic system, which supports a machining center,
has operated 3600 hours in the last two years. The
plant’s CMMS system indicated that there were 12
failures during this period. What is the reliability of this
Hydraulic system if it is required to operate for 20 hours
or for 100 hours?

2. WHY IS RELIABILITY IMPORTANT
Customer
Satisfaction
Reputation
Lower O&M
costs
Repeat
Business
Competitive
Advantage

3. RELIABILITY AND ASSET LIFECYCLE

Fabrycky &
Blanchard
curves
Reliability is a design attribute
No amount of maintenance can
improve inherent reliability
THE GOLDEN RULES
OF RELIABILITY
The sooner you think of
reliability, the cheaper it is

Reliability Approach in Design
It has been found that as much as 60% of failures and safety issues
can be prevented by making changes in design.
The following analyses are recommended to be performed during the
design phase — from conceptual design to final design
Reliability Analysis
Maintainability Analysis
System Safety and Hazard Analysis
Human Factors Engineering Analysis
Logistics Analysis

4. WHAT IS MAINTAINABILITY
Mean time to
repair (MTTR)
Average time in hours
to repair an asset
(Wrench time)
Mean Down time
(MDT)
Repair time +
Waiting Delays

Failure
Occurs
Failure
Notification
time Diagnosis Delay time
Repair
Starts
Repair time Testing
Return to
normal
operation
Resume
Service
Time to repair (MTTR)
Time to recovery (MDT)

Workshop facilities
Right personal management
Handling of equipment
Spare-part management
Infrastructure
Work environment
Proper and special tools
Skill and experience of people
Cooperation between departments
Location and layout
Good communication
Access to spares
Technical documentation
Access & simplicity
Planning
Ease of trouble shooting
Information systems
Manpower availability
MTTR depends on following factors

5. WHAT IS AVAILABILITY
Availability
MTBF
MTBF + MTTR
Failure
Occurs
Downtime
Resume
Service
Uptime
Failure
occurs
Availability
Uptime
Uptime + Downtime

6. RELIABILITY DISTRIBUTION PATTERNS
The Bathtub Curve
Age Related Failures
Random Failures

Age Related Failures
Random Failures
Do you think PM is
useful strategy

Problems with MTBF
t=1000hrs
Item C
t=1000hrs
Item B
t=1000hrs
Item A
MTBF = Operating time / Number of failures
MTBF = 1000 / 4 = 250
Do these items have same reliability???

Problems with MTBF
It assumes that item is in random
failure zone
It can not be used to estimate
time to next failure
Can not be used to estimate
system reliability.
Cumulative probability of failure
at MTBF is only 50%.

Reliability Growth – A better measure of reliability
If β <1: Reliability is increasing (failure rate going down)
If β =1: Reliability is constant (failure rate constant)
If β <1: Reliability is decreasing (failure rate going up)

Reliability Growth – A better measure of reliability

7. RELIABILITY BLOCK DIAGRAM
Schematic representation or model
Shows reliability structure (logic) of a system
Can be used to determine
If the system is operating or failed
Given the information whether each block is in operating or
failed state
A block can be viewed as a “switch” that is “closed” when the block
is operating and “open” when the block is failed
System is operational if a path of “closed switches” is found from
the input to the output of the diagram
Switch
(On/Off)
Input Output

R1
Probability of system functioning;
= p (component 1 functional)
= R1
R1 R2
= p (component 1 & 2 functional)
= R1 x R2
R1 R3
R2
= p (component 1 & 2 & 3 functional)
= R1 x R2 x R3

= p (component 1 or 2 functional)
= R1 + R2 – R1.R2
= 1 – (1 - R1) . (1 - R2)
= p (component 1 or 2 or 3 functional)
= 1 – (1 - R1) . (1 - R2) . (1 - R3)
R1
R2
R1
R3
R2

Exercise - III
1-(1-0.5)(1-0.5) = 0.75
1-(1-0.3)(1-0.3) = 0.51
1-(1-0.6)(1-0.6) = 0.84
1-(1-0.4) (1-0.4) (1-0.4) = 0.784
0.88

Exercise - III
0.84
0.784
0.88
.95 * .88 * .8 * .99 = 0.66
.84 * .9 * .784 = 0.592

Exercise - III
0.66
0.592
1-(1-0.66)(1-0.59)
= 0.85

8. RELATIONSHIP BETWEEN M&R
Reliability and Maintenance Are Inextricably Linked
Reliability
Maintenance
Cannot cost cut your way
to improved reliability
Maintenance costs are
driven by reliability…or
the lack thereof
Best performers achieve high reliability at low cost!
Poor performers have high cost with low reliability!
Each 1% increase in mechanical availability can
translate into a 10% reduction in maintenance cost!

Pressure Applied Here
Reliability
(Margin)
Maintenance
Costs
The Traditional Approach

Initial Traditional Result
Pressure Applied Here
Lower
Reliability
(Margin)
Lower
Maintenance
Costs

Long time Traditional Result
Lower
Reliability
(Margin)
Higher
Maintenance
Costs

Contemporary Approach
Reliability
(Margin)
Maintenance
Costs
Apply Pressure Here

Progressive Result
Higher
Reliability
(Margin)
Lower
Maintenance
Costs
Apply Pressure Here

Path to first quartile
High Mechanical Availability
and Low Cost
Low Mechanical Availability
and High Cost
<95
95
95
96
96
97
97
98
>98
1 1.4 >10
Maintenance Cost, % (US $/PRV)
Mechanical
Availability,
%
Not Sustainable
Effectiveness
Efficiency and Cost
Industry Leaders
Facility
Sustainable

QUESTIONS

Which of the following is not a key element of reliability
specification for an asset
Mission or usage time
Operating environment or conditions
Required rate of infant mortality
Skill level of the operator
LEARNING POINTS

The most common probability distribution shape
followed by asset failures is
Exponential distribution
Binomial distribution
Bimodal distribution
Chi square distribution with two degrees of freedom
LEARNING POINTS

Reliability of an asset is a direct function of
MTBF and MTTR
Failure rate and mission time
Mission time, required duty and maintainability
Uptime and downtime
LEARNING POINTS

A maintenance technician is arranging tools and spare
parts to replace a bearing which has failed accidently.
The time consumed in this activity is best represented in
MTBF
MTTF
MDT
MTTR
LEARNING POINTS

Which of the following is best representation of reliability
improvement action in a manufacturing facility
A mechanic replaces lube oil filter every three months without
any consideration to condition of filters
Thermal imaging of all electric motors is done weekly
Operating procedures clearly define safe operating range of
assets and operation is restricted to design limits at all times.
Non critical assets are allowed to run-to-fail to maintain focus on
critical assets and avoid un-necessary maintenance cost
LEARNING POINTS

Reliability of a system will ____________ if two
components are installed in parallel
Increase
Decrease
Not be changed
Change conditionally
LEARNING POINTS

In an industrial system, approx. _____________ of
system reliability is fixed by the end of design phase
10% to 20%
20% to 30%
40% to 50%
70% to 80%
LEARNING POINTS

Reliability Organization and
Leadership

ORGANIZATION & LEADERSHIP
LEARNING OBJECTIVES
After reading this chapter, you will be able to:
Understand what constitutes an organizational culture
Understand the required attributes of reliability leadership
Develop a strategic framework for reliability organization
Developing sample M&R organization structure

1. WHAT IS ORGANIZATIONAL CULTURE

Reliability
Inherent
Reliability
Operating
Habits
Maintenance
Habits
Leadership & Culture
What determines the
reliability of an asset
ROLE OF OPERATIONS IN RELIABILITY
1. OPERATING HABITS DRIVE RELIABILITY

1. WHAT IS ORGANIZATIONAL CULTURE
Organizational culture is a pattern
of shared basic assumptions that
the group learned as it solved its
problems of external adaptation
and internal integration that has
worked well enough to be
considered valid, and therefore, to
be taught to new members as the
correct way to perceive, think
and feel in relation to those
problems. (E. Schein)

1.1 COMPONENTS OF ORGANIZATIONAL CULTURE
Culture
Values
Rites
and
Rituals
Role
Models
Cultural
Infrast-
ructure
- Ingrained behaviors
- How we act out of habit
- Way of thinking
- Preach to members
- People considered “champs”
- Success for others to copy
- What are the things we do?
- The way we do them
- Systems, procedures
- Storytellers
- Keepers of faith
- Gossips
- Spies
- Whisperers
- Symbols
- Language

1.2 CAUSES OF ORGANIZATIONAL CULTURE
Acts of
individuals Culture

2.1 RELIABILITY LEADERSHIP FUNDAMENTALS
• Build strong alliances.
• Persuade rather than coerce.
• Honesty and integrity.
• Never act out of vengeance.
• Be decisive.
• Be authentic.
• Encourage innovations.
• Get out of the office and circulate among the troops.
• Set goals and be results-oriented.
• Preach a VISION and continually reaffirm it.

2.2 RELIABILITY LEADERSHIP RESPONSIBILITIES
Identify the vision and communicate it
Identify the need
Identify the impact
Identify the people
Identify roadblocks
Communicate and teach the fundamentals
Identify successes
Identify more opportunities

2.3 RELIABILITY LEADERSHIP ATTRIBUTES
Charisma
Vision
Competence
Inspirational
Communication
Charisma
Vision
Competence
Inspirational
Communication
33%
31%
21%
8%
7%

• SMART targets
• Review periodically
• Routine activities & plans
• “How to” elements
• Long range aim for 3 ~ 5 yr
• Means for achieving vision
• Approach used to achieve mission
• Focuses competition and customer
• Reason for existence
• Leader’s perception of vision
3.1 RELIABILITY STRATEGIC FRAMEWORK
• Picture of successful future
Vision
Mission
Strategies
Goals
Objectives
Tactics and plans

3.2 RELIABILITY GOALS AND CONSTRAINTS
Reliability
Performance
Constraints
Strategies
and Plans
• Culture
• People
• Resources
• Asset condition
• Existing policies and practices
• Strategic direction
• Capital upgrades
• Acquisitions
• Benchmarks
• HSE and PSM requirements
• Improved policies and practices

Exercise - IV
 List your organizations reliability vision and mission
statements
 List your organizations goals for the coming year in terms
of the items we have discussed here
 List any major constraints that might get in the way of
achieving these goal
20 minutes

3.3 GOALS ACHIEVEMENT MODEL
V G
G
I
I
I
A
A
A
M
O Im
Vision
Goals
Initiatives
/
Programs
Activities
/
Tasks
Outcomes
Measures
Impacts

3. RELIABILITY ORGANIZATION STRUCTURE
1. Define the future state of the organization
2. Design organizational structure to achieve future state
3. Define job objectives, responsibilities and performance
criteria (Roles-Goals-Responsibilities)
4. Assign staff and communicate organization plans
5. Evaluate performance and take corrective action
Every organization is perfectly designed to get the results it achieves

3.1 THE FUTURE STATE
To correct deficiencies
To assure highest priority work is done
To enable change and improvement
To maximize flexibility or workforce
To achieve common goals.

3.2 DESIGN NEW ORGANIZATIONAL STRUCTURE

3.3 DEFINE NEW SYSTEMS
Goals and objectives
Action plans
Job Responsibilities
Work procedures, processes and systems
Tools and facilities
Audits and reviews

3.4 COMMUNICATE ORGANIZATION PLANS
Group learning
Use of technology
Communication plans
Inter relationships
Common language
Rewards

3.5 EVALUATE ORGANIZATION PERFORMANCE
Define
Goals
Select
KPIs
Collect
data
Analyze
Results
Generate
actions

4. RELIABILITY CULTURE MODEL
Scenario:
Operations reported that “Valve
MOV-139” would not close.
An Operations workaround was used
to divert the process temporarily.
The breakdown was reported to the
Maintenance Department with an
urgent request in the CMMS/EAM
system to fix the valve.

The following events happened:
 Maintenance dispatched a mechanic to evaluate & fix the valve.
 Mechanic noticed “a burning smell” upon arrival, and suspected
the electric motor on a hydraulic pump had burned up.
 He called an electrician to help.
 Electrician determined that the motor had failed. He asked his
supervisor to find a replacement motor.
 Supervisor called the Storekeeper, who found that no spare
motor was available.
 Supervisor called Operations to report that the motor had failed
and would take a couple of days to repair

The following events happened (contd…):
 Operations demanded the repair immediately, so the supervisor
called the Plant Engineer to help locate a spare motor.
 Plant Engineer and Supervisor found the same type of motor on
a similar system not being used. Supervisor sent another crew to
remove this motor while the first crew removed the failed motor.
 Maintenance replaced the motor and adjusted linkages due to
sluggish operation. The valve was released to Operations.
 The work order was closed with comment “valve was fixed.”
 Operations were so happy with a four-hour repair time (rather
than two days) that they sent an e-mail thanking the
maintenance crew for a job well done.

Is this the reliability culture?
Reactive Culture

A second type of response:
 Maintenance Supervisor/Scheduler visited the site and assessed
the failure, finding that the valve linkage was tight and dry,
along with a failed electric motor on a hydraulic system.
 Supervisor/Scheduler assigned a mechanic and an electrician,
and requested both a 6-month chronological history report and
a recommended parts list. He also alerted the plant engineer of
the problem.
 Electrician determined that the motor had failed (burned). The
overload relays didn’t function properly.
 Mechanic found that linkage was tight due to inadequate
lubrication.

A second type of response (contd…):
 The repair history (attached to the Work Order) showed the
following problem — a few months ago: Problem with valve
closing. Mechanic had adjusted and greased the linkage. The
hydraulic pressure on the system had been raised from 1500 psi
to 1800 psi to make the actuator and linkage work smoothly.
 Repair plan included replacement of the motor and overload
relays, restoration of hydraulic pressure to system design, and
greasing/ adjustment of linkage. A spare motor was available as
a part of the repairable program.
 Work was completed as planned. Operator was supporting the
repair and helped in testing the system. The valve returned to
operation.

A second type of response (contd…):
 The WO was closed and repair details documented.
 Operations were pleased with a two-hour repair.
 The maintenance manager personally thanked the maintenance
crew for a job well done and for finding the root cause. He then
asked them for a plan of further action needed to improve the
reliability for review in 10 days.
Is this the reliability culture?
Proactive Culture

A third type of response:
 Motor current data on operations panel indicated a higher-than
normal current. The visual inspection and site visit indicated that
the valve actuator was running sluggish. Maintenance was
alerted by the operator.
 Maintenance evaluated the situation with the help of the
operator and planned the repair on a scheduled downtime
period.
 The repair was completed and there was no unscheduled down
time. All repairs were documented in the CMMS/EAM system for
asset history.

A third type of response (contd…):
 PM tasks were reviewed and root cause analysis performed.
Based on this analysis, PM tasks were updated.
 A work order to redesign the linkage based on root cause
analysis was also issued to design / engineering.
 Operators were thanked for watching the asset/system closely
Is this the reliability culture
Reliability Culture

Remember:
Reliability is a Culture
It is not a Program,
Not an initiative,
and worse, not a fad

Which of the following sets list down the most
important attribute of leadership in decreasing order of
priority;
Competence, communication and creating vision
Charisma, creating vision, motivating people
Creating vision, motivating people, communication
Communication, motivating people, creating vision
LEARNING POINTS

Which of the following is not an element of reliability
organizational culture;
Relations with subordinates
Rituals
Role models
Rites
LEARNING POINTS

In order to enforce better administrative control of human
resource, management at beta corporation have decided to
follow a functional organizational hierarchy. Staff employees
in each function have been trained to perform their own
specific jobs only. The employees prefer to stick to their own
roles and not bothered by “somebody else’s job”. What type
of culture is the organization demonstrating?
Reliability culture
Proactive culture
Reactive culture
Defensive culture
LEARNING POINTS

Which of the following is the most important factor
needed to foster a reliability culture in an organization;
Knowledge of team on reliability techniques and tools
Sponsorship by one of company’s top level managers
Approval of HR manager to create new hierarchical
positions for dedicated reliability organization
Existence of a “Management by objectives” program
LEARNING POINTS

Which of the following sets only includes the
constraints to enforce reliability culture at a company;
Culture, Benchmarks, People and capital asset upgrades
Existing practices, policies, culture, people and current
performance level of assets
Budget, strategic plans, competency, desire to change
People, culture, goals and objectives
LEARNING POINTS

ABC company hired a reliability consultant to advice the top
management for improving asset reliability. The consultant pointed
out that there should be a reliability vision and mission statement in
place to strategically drive all decisions related to reliability. How
should the reliability vision and mission statements be developed
The top management should develop it as they are the one’s
who determine strategic direction of the organization
A team team covering all functions of the company should
develop it based on feedback from worker level employees
There is no need for a vision and mission statement
The consultant should be engaged to develop it as he has good
experience of working in the field of reliability
LEARNING POINTS

MRO STORE MANAGEMENT
LEARNING OBJECTIVES
After reading this chapter, you will be able to:
Understand Maintenance store operations
Classify different types of inventory based on its value and
turnover ratio.
Determine criticality of
Evaluate your MRO standing with reference to world class

1. MRO STORE OPERATIONS

Spare parts
Inventory
Volume of
maintenance work
Volume of
maintenance work
Spare parts
Inventory
1 Efficient Spare Parts Management

2 Spares Identification & Tracking

3
Manage Replenishments and
determine the safety stock levels

4 Provide input for maintenance cost

5 Find Redundant Items and…

6
Make Sure parts and materials are
stored properly

7 Explore Spares Interchangeability

8 Periodically review all Inventory Items

9 Collaborate with vendors and SCF

10 Generate customized reports

2. INVENTORY CLASSIFICATION
Inventory Stratification (ABC analysis)

3. CRITICALITY EVALUATION
• Effects of
failure
• Risk levels
• Consequences
of unavailability
• Delivery time
• Repairability
• Technical
alternatives
• Part lifespan
• Failure
probability
• Failure
characteristics
• Failure
anticipation
• Price
• % cost of
capital
Inventory
Holding
cost
Failure
Probability
Impact of
spare un-
availability
Lead time
and other
parameters

3. CRITICALITY EVALUATION
Inventory Holding
10,000 Euro * 10%
1,000 Euro
Unavailability
100 Euro / day
Lead time
100 days
Failure Rate
1 per 2 years
5000 Euro
<

Metric Typical World class
Store’s inventory turns >1.0 >2.0
Stock outs <5% <2%
Inactive Stock 2% ~ 5% <1%
Storeroom transactions >75 100 ~ 140
Vendor managed inventory - -
Service level >95% >98%
Inventory accuracy 98% ~ 99% >99%
MRO value as % of RAV <3% 0.3% ~ 1.5%
4. MRO STORE METRICS

QUESTIONS

The supply chain manager at Beta corporation has been
tasked to set up a new MRO facility to serve two
neighboring plants. Which of the following best describes
the item categories to be considered for deciding the
storage capacity
Insurance spares, lubrication oil, finished product inventory,
welding gases, phased out capital items and catalysts
Capital spares, consumables, raw materials, emergency spares,
turnaround spares, OEM recommended spares
Raw materials, finished product inventory, consumable items, OEM
recommended spares
Critical spares, lubrication oils and gases, capital items, emergency
spares, turnaround spares, redundant items
LEARNING POINTS

John’s manager has asked him to develop a business case
for installing new facility (expansion project) to improve
energy efficiency of the plant. Which of the following best
describes the information he should obtain from MRO store
manager to comprehensively cover all aspects;
Inventory holding cost per unit floor space, Number of available
SKUs, Item catalog, List of OEMs for similar equipment
Inventory stratification details, types of storage equipment
available, item catalog, Number of active SKUs
Available floor space in the store, safety stock levels, service level,
VMI details, inventory turns, item catalog, List of similar equipment
ABC analysis of inventory, safety stocks, inventory turns, number
of transactions per operator per day, item catalog
LEARNING POINTS

Which of the following is not a primary function of MRO
store;
Ensure adequate supplies of raw material and spare parts are
available at all time to avoid costly production interruptions
Perform periodic inspections and PMs of items requiring in-storage
care.
Ensure availability of right spares, service parts, and supplies at the
right time in the right quantities.
Perform parts kitting process as per WO needs from CMMS.
LEARNING POINTS

The metric which measures how quickly inventory is
flowing through the storeroom inventory system is ;
Service level
Inventory shrinkage rate
Number of inventory turns
Inventory accuracy
LEARNING POINTS

Peter is a financial analyst who has pointed out to the CEO
that inventory volume and value of two manufacturing
plants owned by the company are significantly different.
Which of the following metrics you would recommend to
the management to improve confidence level in Peter’s
observation
Percentage of inactive inventory
Inventory variance or inaccuracy
Vendor managed inventory
Inventory value as percent of RAV
LEARNING POINTS

Do you consider today’s workshop as a good utilization of
your time and energy?
No, it was a waste of my time
I was expecting something more valuable
There were some minor learning points
It was useful and will help me to improve my performance at work
LEARNING POINTS

What three things you have
learnt today?

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