Asset management developing a reliability culture

Analytical Process Technologies
1
Minneapolis, MN and Houston, TX
RockwoodAPTHQ@msn.com
763-458-0988
Senior Advisor in:
Maintenance,
Manufacturing
And Reliability
Excellence
“Developing a Reliability-based
Culture”

What We Do
• Mission:
– Deliver measurable results that drive out maintenance and
manufacturing cost and complexity which optimizes reliability
and performance that transforms your facilities, assets and
workforce.
• Our subject matter expertise:
– Asset Strategy Development and Management
– Detection – Prediction – Prevention – Inspection – Correction – Protection
and Defect Elimination strategies
– Work management execution, prioritization, planning and scheduling
– CMMS, ERP, EAM optimization
– Predictive Analytics…collect information to predict and act
– Organizational effectiveness, cultural and behavioral transformation
– Human error reduction in maintenance and manufacturing
– Front line and management coaching
2

Where We Work - Clients –Domestic
Consumer Manufacturing
• Best Buy
• Kimberly Clark
• Miller brewing (7 locations) for 3 years)
• Anheuser-Busch (5 locations for 1.5
years)
Engineering/Construction
• Apache
• Bechtel (multi locations, 2.5 years)
• Fluor (multi locations, 1.5 years)
• Murietta Development
• KBR (multiple)
• Kiewit
Energy
• Amoco
• Arco Chemicals
• Cheniere
• Cognis
• Chevron (refining and chemicals) (global,
2 years)
• Henkel Chemical (3 years)
• Shell Exploration and Production (5
locations, 2 years)
• Western Drilling
• Dow Chemical U.S.A.
• Flint Hills
Aero System Manufacturing
• Spirit
• Boeing
Food Manufacturing
• American Home Foods
• Western Sugar
• Smuckers Jam
• Con Agra
• Perdue Foods
• Gold-N-Plump
Recycling
• American Ref-Fuel
Healthcare
• Blue Cross-Blue Shield
• Methodist Hospital
• United Healthcare
• Fort Dodge Animal Health
Power Generation
• Detroit Edison
3

Where We Work - Clients –Domestic
Mining
• Cleveland-Cliffs (multiple, 3 + years)
• Empire
• FMC
• Hibbing Taconite (2.5 years)
• LTV Steel (2.5 years)
• Northshore Mining
• North American Coal Corporation
• Scully
• Tilden
• Taconite Harbor
Consulting (SME Alliance)
• ABB (numerous, 3 years)
• Accenture (numerous)
• Petrofac
• KBC
• HSBRT (numerous, 3 years)
• Intertek (numerous, 2 years)
• NES Global (2 years)
• Bureau Veritas (numerous, 3.5 years)
• Pinnacle ART
• IDCON (numerous, 3+ years)
• Woodhouse Partnership
• Sinclair Associates
• MRG
• MTG (now Emerson Process Mgmt.)
Pulp and Paper
• Blandin
• Fraser Papers
• James River
• Mead Paper
• Bell Fibers
• Bell Packaging
• Wausau Papers
• Willamette Industries
Manufacturing and Bio Medical
• Herman Miller
• Uponor
• Telecris Biomedical
• B.F. Goodrich
• Donaldson
• St. Jude Medical
Educational Institutions
• University of Minnesota – Carlson School
of Business (3+ years)
• Dakota County Technical Institute (3
years)
4

Where We Work - Clients –International
Consumer Manufacturing
• Kimberly Clark (U.K.)
• Lamay Chocolate (U.K.)
Engineering/Construction
• ABB (U.K.)
• Fluor (Canada)
• JGC (Japan)
Energy
• Braskem Chemical (Brazil, multiple)
• Irving Oil (Canada)
• Chevron Kitimat (Canada)
• MEGA (Argentina)
• Neste (Finland, Lithuania)
• Petronas (Brazil)
• Petrofac (KSA)
• Shell Exploration and Production (U.K.,
Netherlands, KSA, Oman, New Zealand,
Australia, Brunei, Malaysia, 3+years)
• Shell Global Solutions (multiple)
• SABIC Petrochemicals (China)
• ADCO (Abu Dhabi)
• ADGAS (Abu Dhabi)
• Saudi Aramco (KSA, multiple locations,
multiple years))
• Aramco Gulf Operations (Kuwait)
• Khalda Petroleum Company (Egypt)
Energy
• Saudi Petrochemical Company (KSA)
• Qarun Petroleum Company (Egypt)
• Fertil (U.A.E.)
• ADNOC (U.A.E.)
• Qatar Fuels (Qatar)
• RasGas (Qatar)
• ZADCO Development Company (U.A.E.)
• Maresk Oil (Multiple locations, multiple
years, Denmark, North Sea, KSA)
• Nafta Energy (Lithuania)
• Chevron Wheatstone (Australia)
Transportation
• Cairo Metro (Egypt)
• Panama Canal (multiple locations)
• S.E. Johnson
Mining
• Iron Ore of Canada (Labador
• Mines Wabush (Canada)
• Wabush Mines (Newfoundland)
Pulp and Paper
• Avenor (Canada)
• Chapelle Darblay (France)
• Himont (Canada)5

Richard Miles Rockwood
Management Advisory Services
Maintenance – Manufacturing – Reliability - Asset Management
BA Behavioral Sciences
BA Industrial Relations
University of Minnesota
MA Industrial Mgmt/HRM
University of Houston
English
Maintenance, Manufacturing
Engineering and Construction
Assurance, Reliability, Skill-
based Competency and
Capabilities, Lean, Total
Productive Maintenance .
Led multi-national, international
development and implementation of
Total Reliability initiative propelling
client to #2 Best-In-Class among
global peers in reliability, cost
competiveness, and manufacturing
acclaim and recognition.
 For a global organization provided
technical assurance and oversight to
client technical team resulting in
saving over $20MUSD in engineering
CAPEX construction costs. Achieved
in less than 4 months.
For domestic transportation and
construction client performed Kaizen
and 5S resulting in OPEX cost-
avoidance exceeding $1.5MUSD.
Played pivotal role in successful
$750MUSD acquisition of global
inspection service provider.
Led integrity and assurance
oversight of CAPEX productivity
improvement initiative saving
$2.7MUSD in productivity and
operating cost reduction.
For North American refining and
petrochemical leader implemented
Lean practices that reduced OPEX
maintenance and reliability work
management process cycle time by
87% within 3 months.
Education
Languages
Functional Expertise
Recent Achievements of NoteRick advises organizations in making unique, lasting and
substantial improvements in performance with a professional
focus on strategic, operational, organizational and technological
solutions. A strategic mindset and business perspective
coupled with in-depth expertise and operational insights
translates into exceptional organizational performance. His
approach is value-driven, comprehensive, collaborative, and
holistic involving client-driven teams to ensure long-term client
ownership, reinforcement, and sustainability.
Industry Experience
ISO 55000 – Certified Asset
Management #1016924
API 580 – RBI #600157
Reliability Centered Maintenance
- RCM
CMRP – Certified Maintenance
Reliability Professional #152058
CLSSBB – Certified Lean Six
Sigma Black Belt
PMP – Chevron Project
Management Academy
Technical Certifications
Oil, Gas, Petrochemical and LNG , Manufacturing, Medical
Device, Capital Equipment, Consumer Packaged Goods, Food
& Beverage, Mining & Steel, Engineering and Construction
Rick takes pride in delivering over 30 years of common-
sense, practical CAPEX and OPEX solutions that result in
improved operational transformation, capital efficiency,
excellence across the value chain, and organization design
and effectiveness. Rick has earned accolades from the
diverse clients he serves for his experience and objective-
based straight-talk, “know how” of what to look for and “where
to look” for improvement solutions. He is unique in the fact
that he involves client organizational levels in becoming part
of the solution which results in transfer-of-ownership and
sustainability.
From his beginnings as an hourly employee to accomplished
speaker, published author in 5 languages, international
consultant, and recognized authority in maintenance,
reliability, and manufacturing, he actively coaches and shares
his methodology and accomplishments which transfers over
to the clients he serves delivering value-based consulting in a
Lean Engagement model for 10X improvement.
Our Approach

Industry Conference Leadership and Keynote
Participation
• Speaker - American Fuel and Petrochemical Manufacturers Reliability and Maintenance
Conference May 20 – 23, 2014, “Risk-based Methodology Applied to Spares Criticality”
• Conference Chair, Speaker, Panel Moderator – Asset Integrity Canada 2014 June 22 –
26, 2014, “Crossing the CAPEX Divide for Reliability Improvement”
• Speaker and Panel Moderator – Oil and Gas Asset Integrity and Inspection Conference
July 28 – 30, 2014, “Crossing the CAPEX Divide for Reliability Improvement”
• Speaker and Session Moderator, MaRS Maintenance and Reliability Symposium
Conference August 14-15, 2014, “Crossing the CAPEX Divide for Reliability
Improvement”
• Conference Chair, Speaker, Panel Moderator - Tank and Terminal Conference August
19-21, 2014, “Crossing the CAPEX Divide for Reliability Improvement”
• Conference Chair, Speaker and Workshop Leader, Offshore Safety Conference –
September 23-25, 2014, “Crossing the CAPEX Divide for Reliability Improvement”
• Speaker, International Maintenance Conference December 8 – 12, 2014, “Crossing the
CAPEX Divide for Reliability Improvement”
7

Example of Recent Engagements
Project Client Solution Investment
Cost of
Solution
Est. Cost of
Failure
ROI/Savings
or Loss
Avoidance
Vetting, verification
and asset integrity
validation of EPC
LNG Maintenance and
engineering
verification of 3rd
party inspection,
surveillance
$150,000 N/A Vetting of technical
capabilities
prevented project
over-spending by
$20MUSD
Maintenance and
Production error
reduction
Refinery Improve 3rd party
inspector on-
boarding by focusing
on skills,
competency, and
verification
$30,000 Potential loss of
$56MUSD technical
inspection and
surveillance contract
Resulted in A)
receiving contract
worth $56MUSD and
2) increased billing at
another contract
worth $63,000
Owner oversight of
EPC
Global owner of
refining and
petrochemical energy
Oversee through
contractual vetting
and verification of
compliance on EPC
and sub-contractor
performance for early
works
$30,000 Oversight confirmed
sub-contractor
project performance
was acceptable.
Report issued for gap
closure.
EPC was not
providing proper
over-sight on sub-
contractors. EPC
contract awarded to
competitor valued at
$19BUSD
Construction
productivity
Owner - Refinery Low construction site
productivity requiring
“gap closure:
strategies between
VOWD vs. Work
Claimed
$50,000 Owner realized
improved site
productivity resulting
in labor netback
without adding
additional resources
Productivity loss est.
at $3.0MUSD
Improved productivity
resulted in netback
valued at $1.7MUSD
Assurance
verification of
Global owner -
Energy
Design and
implement
$20,000 Est. to exceed $multi-
million USD
Est. capturing of
value at $3.8MUSD

Example of Recent Engagements
Project Client Solution Investment
Cost of
Solution
Est. Cost of
Failure
ROI/Savings
or Loss
Avoidance
Improved material
management and
supply chain…loss
prevention and
mechanical integrity
Global Energy Owner Technical verification
at fabrication and
construction site.
Implemented RFID
and material site
preservation
practices
$30,000USD Loss of material and
poor equipment
preservation
practices estimated
at $multi-MUSD
$1.5MUSD
recovery/loss
prevention
Idle/low utilization of
heavy equipment at
construction site
Owner management
of EPC Construction
site
Improve data
collection on hour
and usage combined
with improved
scheduling
$80,000USD Poor record audit trail
and management
practices placed est.
loss at several
$KUSD
Loss avoidance est.
at several $MUSD
Contract review Representation of
Owner in contractual
verification and
validation of EPC
performance and
compliance in
Construction Early
Works
EPC oversight on
early works
$90,000USD EPC not awarded
EPC continuation
due to sub-standard
performance on
$19BUSD contract
Contract awarded to
competitor valued at
$19BUSD
Owner oversight of
EPC documentation
Owner retained EPC Improve oversight on
EPC to improves
quality, accuracy,
and deliver on
contractual
commitments and
deliverables being
reworked
$50,000USD Contract was
reimbursable which
let EPC have a free
rein regarding rework
charges
Exact charges due to
rework were kept
confidential but est.
were in the several
$KUSD

…”Root Cause Analysis:
Detection to Implementation”
…”The Ultimate Maintenance
Strategy: Failure Prevention”
…”Moving from a Repair-
Focused to a Reliability-focused
Culture”
…”Remedies for a Bad
Maintenance Culture”
…”How to Create a Global
Reliability Program”
…”What Does Good Look Like”
…”Making the Transition from
Reactive to Proactive
Maintenance”
…”Building Partnership
Practices between Maintenance
and Manufacturing”
10
Examples of Recent
Presentations…Lunch-N-Learn… Workshops
…”Creating a High Reliability
Performance Partnership
Culture”
…”Understanding the P-F Curve”
…”Strategies for Planning and
Scheduling Effectiveness”
…”Breaking the Reactive Circle
of Despair”
…”Determining the Appropriate
PM and Inspection Frequency”
…“How to Drive Sustainability in
your Change and Transformation
Improvement Initiatives”
…”Preventive Maintenance
Optimization Execution
Strategies”
…Engaging Operators in Driving
Reliability”

Business Model and Value Proposition
“Value-nique”
11
Our Competitors…
• Business development and sales
overhead
• “NVA” over-head, remote “back
office” administrative support
• Sr. Executive “Howdy calls”
• “Big Box” consulting firms that “Bait
and Switch” with rookie consultants
• Bloated parade of project team
members
• Executive project oversight drains
resources away from value-added
activities
• Driven to sell software as “the
solution” while ignoring the
operational aspects behind making
real improvement
APT…
• Our business model delivers
expertise without the “upcharge”,
mark-up, hidden fees and NVA frills
• Our pledge…We will meet and beat
the competition…anytime, any where
on: cost…expertise…value…results
• We deliver value-added expertise at
a minimum of 50% or more LESS
INVESTMENT than what the
competition charges
• We don’t sell software…write code or
program
• Our focus is:
 Execution
 Coaching
 Reinforcement
 Sustainability

12
Are you working in a Circle of Despair?
Work notification is written
Goes to the “yet to be
done” graveyard or the
Land That Time Forgot
No activity or
communication…
Originator writes another
work notification
Work notification priority is
“emotionally Inflated” to get
attention and response
Meanwhile…equipment or situation
continues to deteriorate
Circle
Of
Despair
Equipment eventually
Speaks…
“I’m failing…fix me”
Now we enter the
“Fire-fighting Zone”
Work notification is “lost” in
The system
Frustration, panic, shortcuts,
and high costs, lost profits
enter in
Then…onto the next failure…
no time to discuss root cause
or lessons learned
Model courtesy of Analytical Process Technologies

Why Do Assets Deteriorate?

Physical
Hard to access
Poor or No Inspection
Skipped or infrequent
inspections
Poor housekeeping
No Condition Recognition
Training
Psychological
Equipment Condition Blindness
No or poor basic understanding
of Deterioration Failure
Mechanisms and Failure Modes
No Reliability Culture
Why Does Deterioration
Go Unaddressed?
Understaffed
No skills or not the right skills
Expectations not set nor reinforced
No prioritization practices
Reactive Culture
Plagued by the “Manana Mentality”

Understanding Failure Prevention Thinking
15
IOW Detect Predict Prevent Correct Protect/EliminateInspect
Operating
Performance
Standards
Breakdown Condition and
Deterioration Rate
Restoration Failure
Mode
And RCA
Remaining LifeDeterioration
Partnership Practices
Prioritization
Planning
Scheduling
Stores/Materials

Our Professional Beliefs and Culture
• Zero breakdowns should be the expected goal
• The ultimate objective for maintenance and manufacturing
is…”No Unplanned Downtime”
• Cost cutting does not improve reliability. Only improved
reliability results in lower costs
• People is your #1 asset…but they must be the “right” people
• First…work on the right things (effectiveness)…then do those
things right (efficiency)
• You must create “partnership practices” between maintenance
and manufacturing
16

• Majority of failures are the result of a “process of
deterioration”…not a single event
• Execution of the basic fundamentals is the key to success
• Success is 90% about people…establishing culture…reinforcing
behaviors…and setting expectations
• Managers focus on costs…Leaders focus on what drives costs
• The Reliability Closed Loop Model…defect elimination - detect –
predict – prevent – inspect - correct – protect – defect elimination
• Joint ownership of the “kit”…at the kit…is vital to success
17

• Maintenance is managed at the failure mode level
• Keep things simple…”make common sense common practice”
• The improvement roadmap is: Think Big…Start Small…Execute
and follow through…Stay the course
• The key to productivity is to First get the system and the process
right…people can’t succeed in broken and dysfunctional systems
and processes
• Ultimate success has more to do with the “people side”…
engagement…transformation…culture…and behavior rather than
an “engineering only” perspective
• STOP…wrench time studies18

Creating a High Performance Culture
• High Performance
• Low Values
• High Performance
• High Values
• Low Performance
• Low Values
• Low Performance
• High Values
19
Performance
Values
Q1
Q2
Q4Q3
(Low)
(High)

Changing Behavior and
Developing Culture
• Ownership of the Kit in and at the field level
– Partnership Practices
• Education on Equipment Care and Condition Recognition
– Basic equipment focused “know why” and “know how”
• Deterioration Prevention Practices
– Damage Mechanism…Failure Mode…Inspection…PM’s…PdM
• Defect Elimination
– Small area teams…RCA…EIT’s…Bad Actor Elimination
• Implementation of the Work Management Fundamentals
– Planning, Scheduling, Execution, Close out, Analysis,
– Cost Management
• Support Systems Developed and Integrated
– CMMS + Work Process Management + ERP + EAM
– Predictive/Analytical Support Systems
Ownership of
the Kit
Basic Education
on Equipment
Care and Condition
Deterioration
Prevention
Practices
Defect
Elimination
Work Management
Fundamentals
Support System
Integration

Start Here!
Acknowledge your
Current reality - Assessment
Business Case 10X
Vision - Mission
Gain Team Support Culture – Behaviors - Expectations
Build or Review Asset Equipment Register
Understand Asset Risk
and Criticality
Build your Work
Management System
Build maintenance Strategy
RCM - RBI
Predict – Prevent – Condition
Lubrication
Org. Design
Planning and
Scheduling
Detect – Predict – Inspect –
Correct – Protect = Reliability
Continuous Improvement
Defect Elimination
Build Workforce
Capability And
Capacity
Spares Management
Gain Executive Leadership, Sponsor and Stakeholder
Engagement – Engaging the Hearts and Minds
The Maintenance Excellence Roadmap
Houston, Texas – Minneapolis, Minnesota
Rockwoodapthq@msn.com
763-458-0988
Gain Management Support

22
Concluding Remarks…
I hope you found my introduction helpful in paving the way in the
maintenance and manufacturing journey toward excellence.
My professional focus is delivering common sense, straight-forward,
practical solutions to help clients prosper in an ever-competitive
world.
In my global experiences over the last 30 years I have found that the
major challenge to achieving maintenance and manufacturing
excellence lies creating a reliability based culture supported by
execution, coaching, and sustainability. Most organizations have
some elements of strategy that is workable. Yet, most strategies
remain “on the shelf” and never executed.
Additionally, most organizations declare victory too early and then move on to the next
“new thing” without ever fully realizing the untapped potential that can be gained
focusing on execution, coaching and sustainability garnered from implementing
maintenance and manufacturing continuous improvement initiatives. The striking
difference between average and world class is that world class organizations execute
the fundamentals in a consistent and integrated holistic manner.
As Deming observed, “Your system is perfectly designed to give you the results that
you get.” Focusing on getting the right processes in place, then getting the right people
engaged in a sense of ownership creates a culture of pride, respect, and mutual
trust…that will put your chances for realizing excellence within reach.
I trust that I provided some measure of insight from my experiences and extend my
support and encouragement to you on your journey to Maintenance
and Manufacturing Excellence. Rick Rockwood 2016

23
Contact Information
• Richard M. Rockwood
• Analytical Process Technologies
• Cell: 763-458-0988
• Email: RockwoodAPTHQ@MSN.Com

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