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Copyright 2009 GPAllied©
Best Practice Benchmarking
“Best Practice Plants have Best Practice Behaviors and those
  behaviors drive Best Practice Results”

•   Focused on 35 Companies that have known corporate reliability
    initiatives in 8 verticals
    – Automotive, Chemical Processing, Food & Beverage, Metals &
      Mining, Petro-Chemical, Pharmaceutical, Power
                    C
      Generation/Transmission Pulp & Paper
•   Focused on 35 Best Practice Elements Across 4 Primary Areas
    –   Leadership
    –   Work Management
    –   Reliability Engineering
    –   Asset Health Management
                           g
•   Results represent performance at 633 sites in over 20 countries
•   Additional 250 sites in overall database



                                                        Copyright 2009 GPAllied©
Best Practice Benchmarking
    “I could agree with you, but then we’d both be wrong”




           1. Chemical Processing                  522
           2. Petro-Chem                           498
           3.
           3 Pulp & Paper                  468
           4. Automotive                           465
           5. Pharmaceutical                       431
           6. Metals & Mining                      430
           7. Power                                373
           8. Food & Beverage                      369

                                                      Copyright 2009 GPAllied©
Case Study Results
Pharmaceuticals Industry
Ph        ti l I d t
• Prior to Reliability Initiative
   – Patented product going off patent
• After Reliability Initiative
                  y
   – Reactive Maintenance 71%                7%
   – Overtime 22%        5%
   – Maintenance Employees
     (FTEs) 350      250
   – Added 9 Planners, 7 PdM
             Planners
     Technicians and 8 Reliability
     Engineers…

                      Source: John Schultz        Copyright 2009 GPAllied©
Case Study Results (continued)
Pharmaceuticals Industry
Ph        ti l I d t

• After Reliability Initiative
   – Availability increased 12%
   – Healthy Assets 35%
           y            %     85%
                                %
   – Production Deviations to 1/10th of
     previous levels
   – Maintenance Budget reduced 40%
   – Inventory reduced 33%
   – Insurance Premiums reduced 30%




                      Source: John Schultz   Copyright 2009 GPAllied©
Case Study Results - Steel Industry

• Prior to Reliability Initiative
                     y
   – On verge of bankruptcy


• After Reliability Initiative
   –   Reactive Maintenance 70%           20%
   –   Availability 78%      91% (based on 8,760 hours)
   –   Product Q lit (Yield)
       P d t Quality (Yi ld) 76%          91%
   –   Inventory reduction of $40 million
   –   Maintenance Costs reduction of 50%
   –   Most P fit bl Steel Producer 1999
       M t Profitable St l P d
   –   Ranked as #1 Steel Maker in the World by Dow Jones



                              Source: Dofasco           Copyright 2009 GPAllied©
Case Study Results - Food Processing

• Operational Asset Utilization increased 4%
  for each of 21 flourmills
   – Equivalent to adding an additional plant to the
     system
   – Significant savings also realized by not having to
     ship out of position




                         Source:             Copyright 2009 GPAllied©
Case Study Results - Food Processing

• Two of a business unit’s largest food
  processing plants increased their OEE 9% in
  4 years
   – Reduced maintenance spend by 28%
                            p     y
   – Reduced parts inventory by nearly 30%




                        Source:              Copyright 2009 GPAllied©
Case Study Results - Food Processing

• Meat Processing
   – Doubled head/day production over the past 3
     years
   – $45 million swing in P&L




                        Source:            Copyright 2009 GPAllied©
Case Study Results - Food Processing

• European Food Oils
   – A business unit consisting of 16 plants dropped
     maintenance costs by 27% and improved RAV by
     1.4% in 3 years
   – At the same time, realized a 20% increase in OEE




                        Source:             Copyright 2009 GPAllied©
Case Study Results - Salt
 • A facility has reduced Maintenance cost to
   RAV ratio by 3% over the last 3 years
   – Equates to $2 million maintenance cost savings
     from baseline year while increasing plant
     reliability
   – Facility had a history of missed shipments to key
     clients prior to initiative




                         Source:             Copyright 2009 GPAllied©
Case Study Results - Chemical Processing
and Mining
  d Mi i
• Increase OEE by nearly 30% in 2 years
   – 22% reduction in their annual maintenance
     expenditure
   – $15 million per year on the bottom line




                        Source:            Copyright 2009 GPAllied©
Case Study Results - Power Generation

• Successfully extended time between planned
  turnarounds by 30%
   – Reduce time in turnaround by 20%
   – 23% reduction in maintenance costs




                       Source:            Copyright 2009 GPAllied©