Fundamentals of Asset Management

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Fundamentals of Asset Management

  1. 1. Fundamentals of Asset Management Step 7. Optimize Operations & Maintenance (O&M) Investment A Hands-On Approach
  2. 2. Tom’s bad day… Fundamentals of Asset Management 2
  3. 3. Fourth of 5 core questions 4. What are my best O&M and CIP investment strategies? What alternative management options exist? Which are the most feasible for my organization? Fundamentals of Asset Management 3
  4. 4. AM plan 10-step process Determine Develop Assess Determine Set Target Live Cycle & Asset Condition, Residual Levels of Replacement Registry Failure Modes Life Service (LOS) Costs Determine Optimize Optimize Determine Build AM Business Risk O&M Capital Funding Plan (“Criticality”) Investment Investment Strategy 4. What are my best O&M and CIP investment strategies? Root Cause; RCM; PdM; ORDM Fundamentals of Asset Management 4
  5. 5. Recall view 4: Management framework Asset Management Business Processes Asset Management Plans Strategic Initiatives Annual Budgets Operating Budget Capital Budget Fundamentals of Asset Management 5
  6. 6. Definition Maintenance - normal support, periodic and minor in nature, required to sustain performance and functionality of an asset consistent with design, manufacturer, and operational requirements Fundamentals of Asset Management 6
  7. 7. What triggers a work order? Computerized Maintenance Management System (CMMS) Through Input put Output Citizen complaints Work order generation Supervisor “drive-bys” Crew scheduling Field crew Crew outfitting observations Crew performance ● PdM/condition-based Job costing maintenance Materials management System architecture & integration Database architecture Field interface Spatial interface Fundamentals of Asset Management 7
  8. 8. Importance Of The Work Order: Asset Level Tells us planned (PM) or unplanned WORK ORDER (UM) maintenance costs Type: PM or UM Builds life cycle cost history; ties to • Estimated bill of quantities warehouse management • Actual Tells us actual direct costs of activity • Labor • Plant Tells us the activity used; necessary for • Materials activity analysis • Procedure followed • Failure mode noted Useful in failure mode analysis • Primary cause of failure Necessary for causal analysis Memos • Impact on customers Indirect costs on business; impact on • Unproductive time customers (consequence analysis) • Other issues Used in efficiency analysis Data feedback enables substantive analysis Fundamentals of Asset Management
  9. 9. Bottom-line maintenance “KPIs” from an AM perspective Metric Definition Target Availability The portion of time that a plant or major system is 95 – 99% available for producing output of the required quality and quantity % Failure analysis The portion of equipment downtime events that 85 – undergo a thorough analysis of failure modes, effects, 100% and root causes % Planned work The portion of corrective maintenance work hours that 85 – 95% are planned and scheduled in advance (not unplanned breakdowns) % Overtime The portion of maintenance work hours that are 5 – 8% performed at an overtime rate Relative maintenance Annual maintenance spending as a percentage of 1.5 – asset replacement value of the plant being maintained 2.5% cost Technician productivity The percent of work hours spent on productive 70 – 85% activities versus nonproductive (rework, waiting for parts, etc) % Rework The portion of maintenance work that has to be 2 - 5% redone due to poor installation, shoddy workmanship or incorrect diagnosis Fundamentals of Asset Management 9
  10. 10. Importance of the work order: Portfolio level WORK ORDER Asset-linked costs enable significant analysis… Asset details Asset details Type 1. What type of sewer suffers Type the greatest number of Category Category blockages caused by tree Size Size roots? Condition Condition 2. How many failures are Performance history Performance history experienced by water mains Failure modes Failure modes of different ages in different ground conditions? Fundamentals of Asset Management 10
  11. 11. What Distinguishes EAMS from CMMS? CMMS Asset Registry + Work Asset 1 Order 1 Work Asset 2 Order 2 Work Asset N Order N Focus is on the maintenance Focus is on an asset’s performance work order and maintenance over its life cycle and on aggregate performance for a defined period performance of asset groups Fundamentals of Asset Management 11
  12. 12. The asset portfolio view - 1 Fundamentals of Asset Management 12
  13. 13. The asset portfolio view - 2 Fundamentals of Asset Management 13
  14. 14. The asset portfolio view - 3 Fundamentals of Asset Management 14
  15. 15. The Cost of Maintenance Rule of thumb Roughly speaking, planned maintenance costs one-third less than unplanned maintenance for the same task Fundamentals of Asset Management 15
  16. 16. Transition to Planned Maintenance Mapping Total Cost – Mapping total cost—the practical side Unplanned costs - + Planned costs Total cost $ Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Time/Usage Fundamentals of Asset Management 16
  17. 17. Evolution of maintenance techniques Unplanned (reactive) maintenance Proactive strategies Preventive maintenance Predictive maintenance Condition-based Usage-based Run to failure (Redesign) Fundamentals of Asset Management 17
  18. 18. Fitting maintenance strategies to failure curve 3 2 Corrective maintenance Predictive maintenance reactive-based strategies condition-based strategies Failure Repair Repair scheduled initiated Performance occurs Failure Parts, manuals X reported & tools Vibration located X Oil X X Noise X 1 Preventive maintenance Heat time- and usage- X based strategies Time Fundamentals of Asset Management 18
  19. 19. Cost comparison strategies & tactics—the maintenance toolbox Core strategies Total Reliability Zero productive centered breakdown maintenance maintenance maintenance Operational tactics Design Asset Early Maintenance reliability condition equipment prevention analysis assessment management Accelerated Infrastructure, equip- Commodity Design deterioration ment, & component configuration for elimination standardization management serviceability Failure Demand Location Standardized lead-time criticality failure failure analysis classification analysis codes Fundamentals of Asset Management 19
  20. 20. Total productive maintenance Embraces both asset design and maintenance Goal is to maximize Overall Equipment Effectiveness (OEE), where OEE = availability x performance efficiency x “first-time-through” quality Focuses on developing a comprehensive asset management plan for each asset for the life of the asset Ties maintenance objectives to the value chain (set-up time, lack of materials, poor quality, equipment functional failures, etc.) Fundamentals of Asset Management 20
  21. 21. Zero breakdown maintenance Comprised of six core strategies 1. Eliminate continuing deterioration by establishing basic equipment conditions 2. Eliminate continuing deterioration by complying with conditions of use 3. Restore equipment to its optimal condition by restoring deterioration 4. Restore processes to their optimal condition by abolishing conditions that cause accelerated deterioration 5. Lengthen equipment lifetimes by correcting design weaknesses 6. Eliminate unexpected failures by improving operating and maintenance skills Fundamentals of Asset Management 21
  22. 22. Zero breakdown maintenance Strategies are deployed in four steps 1. Reduce variation in failure intervals 2. Lengthen equipment life 3. Periodically restore deterioration 4. Predict equipment life from its condition Fundamentals of Asset Management 22
  23. 23. Reliability-centered maintenance—the seven fundamental questions 1. What are the functions and associated performance standards of the asset in its Techniques present operating context? Function and 2. In what ways does it fail to fulfill its performance functions? standards 3. What causes each functional failure? Functional failures 4. What happens mechanically when each Failure modes failure occurs? Failure effects 5. In what way does each failure matter? Failure 6. What can be done to predict or prevent consequences each failure? Proactive tasks 7. What should be done if a suitable proactive task cannot be found? Fundamentals of Asset Management 23
  24. 24. Intervention action—RCM Fundamentals of Asset Management 24
  25. 25. Intervention action—RCM, cont. Fundamentals of Asset Management 25
  26. 26. Alignment of routine O&M activities with organizational strategies Organizational strategies Routine O&M and capital activity cycle LOS performance targets: strategic (customer) and Schedule tactical (asset unit) levels Plan Agency-wide asset Control Execute performance targets Eval. Fundamentals of Asset Management 26
  27. 27. Using failure modes to determine probability of failure Decision Issues Failure Mode Is capacity Yes Likely before Yes Start Capacity an issue? other modes? No Has LOS Yes Yes Likely before changed LOS from design? other modes? No Is physical Yes Yes Likely before reliability Mortality an issue? other modes? No Redo—it has No Is cost Yes Yes Likely before to fail to operate Efficiency somehow an issue? other modes? Fundamentals of Asset Management 27
  28. 28. Tactical-level failure modes Is there a Treat as Yes cost-effective Activate mortality non-asset solution mode solution? No Is operator Yes Activate error the cause? solution No Is proactive Yes Test Yes Activate maintenance proactive an option? solution maintenance No Run to failure, refurbish, or replace (ORDM) Fundamentals of Asset Management 28
  29. 29. Failure mode-based management logic Failures Are Are Not Significant Significant Cannot Be Prevented Can Be Prevented Prevention by Maintenance by Maintenance Effective? Yes No Redesign, Replace, Schedule for Repair & Monitor Overhaul Maintenance Run to Failure, Repair Fundamentals of Asset Management 29
  30. 30. Mortality failure mode: Determining appropriate maintenance tactics Consider run-to- Test proactive Is failure No failure with planned maintenance predictable? corrective failure response Yes Is prediction No feasible? Yes Yes Yes Consider Based on Cost condition-based condition? effective? maintenance (CBM) No Consider Yes usage-based Based on Yes Cost maintenance (UBM) usage? effective? No Fundamentals of Asset Management 30
  31. 31. Predictive maintenance and the monitoring interval Monitoring Interval Too late! P X Performance “P to F” interval F Failure X Time Can the progression of the failure be detected? Is there typically enough time to respond? Does consequence exceed cost of cure? Fundamentals of Asset Management 31
  32. 32. Cause and effect diagram—what to monitor Effect Effect-Cause Root Cause Main breaker Breaker Motor Bearing Grease cap thrown overload overload dry failed Bearing Misaligned stressed Pump Impeller overload jammed Breaker Not fully Defective Effect failure seated breaker case Cause Effect Defective Defective Cause Effect Cause Fundamentals of Asset Management 32
  33. 33. Condition-based maintenance: Vibration analysis Fundamentals of Asset Management 33
  34. 34. Power evaluation Fundamentals of Asset Management 34
  35. 35. Most condition indicators are not visible to the unaided eye Visual inspection Infrared view Fundamentals of Asset Management 35
  36. 36. Alignment of inspection and correction data Coupling & bearing failure Inspection Fundamentals of Asset Management 36
  37. 37. Baseline machine performance tests Baseline at handover sets life cycle benchmark. Conforms to factory test curves? Fundamentals of Asset Management 37
  38. 38. Status sheet (summary) Overall condition Picture of machine Description All nameplate data Electrical data Vibration data Alignment data Fundamentals of Asset Management 38
  39. 39. Equipment status list Severity color code Fundamentals of Asset Management 39
  40. 40. Failure codes Use cause-effect diagrams Failure Code to create codes Coupling failure Define codes by class of Lube fault asset Misaligned Use “drop-down” list Operator error Overloaded Water damage Worn Fundamentals of Asset Management 40
  41. 41. Condition-based maintenance “Nameplate” Data ++ Electro- Vibration Sonic Thermal Electrical Performance Oil Residue magnetic Signature Signature Signature Signature Signature Signature Signature Some failures Are Are not significant significant Some of 3 these 2 Is preventive Corrective Maintenance maintenance Predictive Maintenance Reactive Based Strategies effective? Condition Based Strategies Failure Repair Repair Performance Cannot be Can be Yes Occurs No Scheduled Initiated prevented by prevented by maintenance maintenance Failure Parts, Manuals Service X Reported & Tools Restored Vibration Located X X Oil Program these Repair Redesign, replace Run to failure,XAudible Noise for failures & overhaul repair X maintenance monitor 1 Preventive Maintenance Tactical Heat Time and Usage X Based Strategies Time Fundamentals of Asset Management 41
  42. 42. Toward a maintenance strategy business case Table 6.6 Mitigation Strategies: Reuse Scheme Only Failure Modes Maintenance Scenario A Maintenance Scenario B Maintenance Scenario C Maintenance Budget Maintenance Budget Maintenance Budget $7,000 Maintenance Budget $3,500 $15,000 Probability Improvement 0.5 Reduction Same Probability 1.3 Increase cause by maintenance Improved Business Risk Improved Business Improved Business Risk System / sub-system / Probability Exposure ($) Probability of Risk Probability of Exposure ($) component of Failure Failure Exposure ($) Failure Delivery Channel 0.010 $ 302 0.010 $ 302 0.010 $ 302 Pump Station 1 pump fails 0.150 $ 648 0.300 $ 1,296 0.390 $ 1,685 2 pumps fail 0.050 $ 684 0.100 $ 1,368 0.130 $ 1,778 3 pumps fail 0.025 $ 761 0.050 $ 1,523 0.065 $ 1,980 All pumps fail 0.005 $ 302 0.010 $ 605 0.013 $ 786 Control System Power supply / sub-station 0.050 $ 1,512 0.050 $ 1,512 0.050 $ 1,512 Rising Main Pressure or pipe deflection 0.030 $ 907 0.030 $ 907 0.030 $ 907 Adjacent construction work 0.050 $ 1,512 0.050 $ 1,512 0.050 $ 1,512 Massive earth movement 0.050 $ 2,268 0.050 $ 2,268 0.050 $ 2,268 Ground movement 0.050 $ 2,268 0.050 $ 2,268 0.050 $ 2,268 HOR Storage HORS structure 0.050 $ 1,368 0.050 $ 1,368 0.050 $ 1,368 Variable Gate - Outlet 5W 0.050 $ 342 0.100 $ 684 0.130 $ 889 Variable Gate - Outlet to eastern carrier 0.050 $ 342 0.100 $ 684 0.130 $ 889 Penstocks - Actuator Fail 0.050 $ 342 0.100 $ 684 0.130 $ 889 Penstocks - Manual Overide 0.050 $ 342 0.100 $ 684 0.130 $ 889 External Factors Power Failure 0.200 $ 3,024 0.200 $ 3,024 0.200 $ 3,024 Total $ 16,925 $ 20,689 $ 22,947 Sum of Maximum Value $ 8,474 $ 8,485 $ 8,942 Conclusion Justifiable maintenance between $1,500 and $3,500 per annum. Fundamentals of Asset Management 42
  43. 43. Major components of asset data Used to create an asset ID… Physical attributes Geo-reference O&M manuals Drawings and photos Life cycle costs Knowledge and strategy Fundamentals of Asset Management 43
  44. 44. Tying together failure, reliability, and design Military Handbook 189, Reliability Growth Management 1981 Fundamentals of Asset Management 44
  45. 45. Linking maintenance and design Prepare operational specifications and Evaluate development procedures, develop maintenance and Maintainability checks options inspection strategies, prepare input to asset RCM reference plan, develop facility data Prepare and Development consolidate plans Design & and budgets design Plan construction Review and update maintenance strategies, Decide on remedy or Improve performance, estimates, Schedule reference plan, FEMCA improvement (or abandonment) Schedule asset related work Abandonment Analyze Identify and ORDM Execute define Analysis of asset unforseen performance and work maintenance system effectiveness Fundamentals of Asset Management 45
  46. 46. Key points from this session Given my system, what are my best O&M strategies? Key Points:· Associated Techniques: Reactive emergency maintenance can be Condition-based monitoring plans and the most expensive type of maintenance deployment and should typically make up no more than 20% to 25% of total maintenance Reliability Centered Management effort Root cause analysis Preventive and predictive-based pro-active Asset maintenance strategies (zero strategies should comprise the bulk of the breakdown, total productivity, reliability effort centered maintenance) Assets, especially dynamic assets, leave Failure response plans discernable clues as to their capacity to perform. The most cost effective maintenance strategy for a given asset is determined by the likelihood of failure and the consequence of failure. “Run to failure” may well be the most cost- effective maintenance strategy for a given asset, but only when coupled with a carefully developed failure response plan. Fundamentals of Asset Management 46
  47. 47. Tom’s spreadsheet Fundamentals of Asset Management 47

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