This document outlines issues facing an oil and gas facility such as declining output, aging assets, skills shortages, and increasing maintenance backlogs. It proposes that the company hire ARM & Associates to implement a risk-free program focused on preventative maintenance optimization and reliability engineering. This program would analyze work order history to identify failure modes, improve maintenance plans and schedules, and validate work. It claims this approach could significantly reduce costs and man-hours compared to the status quo.

1. ARM & Associates Ltd
Bernard Redmond (Director) Mob: +353 873104712
Email: bredmond@armandassociates.co.uk
Web: www.armandassociates.co.uk

2. Bernard Redmond (Director) Tel: +353 873104712
40% reduction in Output in the past 3 years.
Asset approaching End of Design life.
Skills decline.
Increased labour costs.
Un-reliable or Obsolete equipment.
Oil price down.
Annual Turnarounds being extended to 2 or even 3 Years.
etc

3. Offshore Resources constrained by limited bed space
Backlog continues to increase despite Turnarounds, Campaign Maintenance, 5Ys, Reliability and PM Optimisation teams
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Human Resources
PM/CM Backlog
Bernard Redmond (Director) Tel: +353 873104712
Backlog is increasing faster than available resources can liquidate it!

4. 1.Carry out Work Order History Analysis & PM Optimisation
2.Where possible we close PM Work Orders in response to Genuine Process Trips
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
(1)= Optimises Maintenance Effectiveness (doing the right maintenance) to Prevent Equipment Failure
(2)= Maximises Maintenance Efficiency (Cost of doing maintenance / Productivity) to make the best use of scarce resources
Bernard Redmond (Director) Tel: +353 873104712
Prevention is better than cure!

5. Priorities Preventative & Breakdown Work
Prepare Work Instructions. Allocate Resources and Materials
Schedule Work for Execution
Execute Work & Record History
Validate Work History
Analyse History
Improve Preventative Maintenance Plans
Reliability Eng
PM Optimisation Team
Supervisors
Work Preparator
Bernard Redmond (Director) Tel: +353 873104712

6. Identify
Prep
Schedule
Execute
Validate History
Analyse
Improve
Responsibility
Put together work instructions to restore equipment function as
quickly and efficiently as possible
Typical Activity
IF repeat failure: - Copy / Paste last set of operations
Result
Does not necessarily address underlying Failure Mode
Can end up simply being a Band-Aid Solution, requiring Re-Work
Bernard Redmond (Director) Tel: +353 873104712

7. Validate Work Order History
Costs
Man-hours
Materials
Activities
Work carried out matches what was called for on the Work Order
◦Improvement are limited to obvious errors or omissions in the Work Order instructions
Supervisors are not responsible for identifying the underlying “Failure Mode” and making sure it’s addressed on the next PM
“Isn’t that what the Reliability Eng is supposed to do!”
Identify
Prep
Schedule
Execute
Validate History
Analyse
Improve
Bernard Redmond (Director) Tel: +353 873104712

8. Identify
Prep
Schedule
Execute
Validate History
Analyse
Improve
Primary
Carry out 5Ys and Root Cause Analysis (RCA)
◦Get started but are not always completed
Other failures come along
Take up too much offshore time
etc
Secondary
Identify Top 10 Bad Actors for input to the PM Optimisation process
◦Often not even started
Not even enough time to complete Primary Responsibilities (5Ys and RCA)
Effective WO History Analysis is very Time Consuming, Boring, Laborious and has a very Low Profile within the organisation
“As a Professional Engineer it’s not something I would want to do on a day to day basis “
Lack of Good Quality Maintenance History e.g. Mismatches between “Long Text” and “Fault Codes”
Etc
Bernard Redmond (Director) Tel: +353 873104712

9. Man Vs Machine?
CMMS
Rubbish in Rubbish out!
Fault Code reader, Not a data Analysis tool
Only capable of reporting Fault Code
Statistics
Not capable of identifying the underlying failure
information needed to prevent repeat failures
Fault Codes
Often proven to be Un-Reliable, and even misleading when compared to what is known to be actually happening with Equipment
Not capable of Interpreting WO “Long Text” history in the same way as a human to produce Reliable Useful Information
Identify
Prep
Schedule
Execute
Validate History
Analyse
Improve
Bernard Redmond (Director) Tel: +353 873104712

10. Improve
Team Effort
Very Expensive to conduct
Can take up to 5 Year to complete
Compromised by Inadequate Analysis
on which to Prioritise PMO efforts
PMO team can be forced into conducting
simple “Feel Good”, “Slash & Burn” PMR reviews, simply to reduce
costs or the size of the Maintenance Backlog
◦The may result is even more Un-reliable Equipment and increased maintenance Costs and Re-work
The Process is designed to Output Generic PMs for Equipment Types, Not Equipment Specific Maintenance
Even when Offshore suggests equipment specific improvement, the PMO team can end up defaulting back to Generic non equipment specific PMS which are little more than the original OEM maintenance plans
Identify
Prep
Schedule
Execute
Validate History
Analyse
Improve
Bernard Redmond (Director) Tel: +353 873104712

11. Repeat Failure Frequency
Total Failures in 5 Years
Mean Time To Repair (Hours)
Hourly Labour Cost
Similar Pieces of Equipment Effected
(e.g. Gas Detectors)
Cost Savings
£
Man-hours Savings
Monthly
60
5
98
60
1,764,000
18000
3 Monthly
20
5
98
50
490,000
5000
6 Monthly
10
5
98
40
196,000
2000
Yearly
5
5
98
30
73,500
750
2 Yearly
2.5
5
98
20
24,500
250
Total
£ 2,548,000
26,000
Does not include associated Production Gains
Identify
Prep
Schedule
Execute
Validate History
Analyse
Improve
Bernard Redmond (Director) Tel: +353 873104712

12. At Work Order close out stage we perform a
combination of Reliability and PM Optimisation activities
We Data Mine, Collate, Read, and Analyse
 Work Request “Long Text”
 Work Order “Long Text”
 Technical history “Long Text”
 And Existing PM tasks
 We identify the “Failure Mode”
 check if the Failure Mode is addressed on an existing PM
 raise PM change requests where necessary to update PM tasks and
frequencies
Identify
Prep
Schedule
Execute
Validate
History
Analyse
Improve
Bernard Redmond (Director) Tel: +353 873104712

13. ARM & Associates has developed a unique software program
(SCE Assurance™ ) which uses PI data to take Credit for Genuine Process Trips
SCE Assurance™ enables us to close Preventative Maintenance (PM) routines for SCE equipment and systems in response to Genuine Process Trips
Before closure PMs are Validated against their Performance Standards
Applicable to Detection, Protection and Shutdown System PMs
Bernard Redmond (Director) Tel: +353 873104712

14. Additional Man-hour savings include: Operator Isolation/De-Isolations, Scaffolding, Work Prepping etc and Production Deferment
Bernard Redmond (Director) Tel: +353 873104712
Typical North Sea Installation
PMs = 407
PM Frequency/Year = 3
Hours/PM = 5
Men/PM = 2
E.g. If credit could be taken for 35% of PMs, that would require ½ an Instrument Tech less per year
% of PMs that Credit can be taken for
Annual Man-hour Savings
Annual # Men Savings
10%
1,221
0.1
20%
2,442
0.3
30%
3,663
0.4
40%
4,884
0.6
50%
6,105
0.7
60%
7,326
0.8
70%
8,547
1.0
80%
9,768
1.1
90%
10,989
1.3
100%
12,210
1.4

15. What are you really paying for?
Are you actually getting what you think you are paying for?
OPTIONS
1.Do Nothing
2.Encourage the people you have to do more
Work Preparator
Supervisors
Reliability Engineer
PM Optimisation Team
3.Add more internal resources
The process isn’t working effectively at the moment, so adding more
internal resources will only produce more of the same results, faster, at a higher price
4.Change the Process + Add more internal resources
Changing the process will make the entire process even more laborious, repetitive and low profile within the organisation, and will make it very difficult to retain the necessary technically competent and experienced people you need to do the work
5.ARM & Associates Ltd
Our services are delivered external to your offices, so they are Ringed Fenced, which means we cannot be treated like just another pair of hands and get dragged into the kinds of reactive day to day “Fire Fighting” activities you are wanting to avoid
Being independent means we have no vested interest in changes we make to manning levels for example (Unlike Integrated Service Contracts (ISC) providers)
“Nothing Changes if Nothing Changes”
Identify
Prep
Schedule
Execute
Validate History
Analyse
Improve
Bernard Redmond (Director) Tel: +353 873104712

16. The Smart Choice
Over 20 years experience working in the North Sea
Customer focused, Risk Free services i.e.
No fixed duration contract
No minimum hours per week
Satisfaction Guaranteed
Reimbursement is based on the improvements we make (if we don’t deliver we don’t get paid)
Satisfaction and Recognition you deserve for having had the initiative and forte of delivering a World Class Maintenance Execution Program that;
Ensures sustained improvements in both maintenance Effectiveness & Efficiency
Asset Integrity
Equipment Reliability
Safer, more Reliable Process Plant
Fit for Purpose Maintenance at a lower cost
A Proactive maintenance program capable of reducing the burden of Maintenance Backlog
Bernard Redmond (Director) Tel: +353 873104712