Results from Optimized Reliability




Presented by: Ricky Smith, CMRP
February 2013




                                  Copyright 2013 GPAllied©
“A Proactive Reliability Process is a supply chain. If a step
in the process is skipped, or performed at a substandard
level, the process creates defects known as failures. The
output of a healthy reliability process is optimal asset
reliability at optimal cost.”

― Ron Thomas, former Reliability Director,
  Dofasco Steel, Hamilton, ON




                                                  Copyright 2013 GPAllied©
Maintenance
 • To Maintain
 • Preserve, and Protect from Degradation
 • Maintain Asset Reliability




                                            Copyright 2013 GPAllied©
Reliability
    Meeting the functional requirements of the end user




                                                Copyright 2013 GPAllied©
Reactive Maintenance Attributes
 • Ineffective or No Planning and Scheduling
 • PM Compliance has a wide variance
 • Performing PM on Equipment that continues to breakdown
 • Overnight deliveries sit for weeks, months
 • Everyone works as hard as they can with little if any
   movement seen toward proactive
 • Storeroom is Chaos (people standing in line at 7:00am
   waiting on parts)
 • Contractor replacing equipment with no one validating if the
   defect was eliminated or work was completed accurately




                                                 Copyright 2013 GPAllied©
Variation is Your Enemy - Causes
 •   No Repeatable/Effective Procedures
 •   Lack of Discipline in maintenance execution
 •   The wrong maintenance approach to reliability
 •   Production not operating the equipment to standard
 •   PM Compliance is Too Wide
 •   Doing Too Much PM
 •   No standards or specifications




                                                 Copyright 2013 GPAllied©
Dr. Deming:
“Your system is perfectly designed to give you the results
                     you are getting.”


                 Electric Motors – Plant Wide (Mean Time Between Failures)
            80
            75
            70
            65
            60
            55
            50
            45
    Hours




            40
            35
            30
            25
            20
            15
            10
             5
             0




                                                                     7       Copyright 2013 GPAllied©
World Class Standards – Where are you?
•   PM Execution – 15%
•   PM Results – 15%
•   PdM Execution – 15%
•   PdM Results – 35%
•   Total Work “Planned” – 90%
•   Reactive Work – Less than 2%
•   Stock-outs – less than 2%
•   Scheduled compliance by day/week – 85 to 90%
•   Failure Elimination is a key focus of all (FRACAS)
•   Work orders are closed out with ALL Codes ID



                                                  Copyright 2013 GPAllied©
Alcoa Mt Holly vs. World Class Standards




                                      Copyright 2013 GPAllied©
Cost Comparison of Maintenance Programs

   ($ per Horsepower)
    Maintenance Cost




                        Run to          Preventive                Predictive   Precision
                        Failure


                                  Source: EPRI Power Generation Study          Copyright 2013 GPAllied©
Safety and Reliability

     Injury Rate (% of Base)

                               135                                                        120




                                                                                                  OEE (% of Base)
                               115                                                        115

                               95                                                         110

                               75                                                         105

                               55                                                         100

                               35                                                         95

                               15                                                         90
                                             13
                                                   17
                                                   21
                                                           25
                                                           28
                                                                   33
                                                                   37
                                                                          41
                                                                          45
                                                                                   48
                                                                                   53
                                     1
                                         5
                                              9




                                                                                    OEE
                                                         Month                      Injury Rate




                                             Source: The RM Group, Knoxville, TN
                                                                                        Copyright 2013 GPAllied©
Maintenance Costs vs. Vibration Analysis


          Maintenance Costs ($) %RAV




                                          Vibration Analysis (%)
     Source: 1997 Benchmarking Study in Chemical Processing industry, John Schultz to be featured in
     Ron Moore’s new book What Tool? When? Selecting the Right Manufacturing Improvement Strategies and Tools



                                        Source: John Schultz, RM Group
                                                                                                Copyright 2013 GPAllied©
Maintenance Costs vs. Equipment on PM


        Maintenance Costs ($) %RAV




                                              Equipment on PM (%)
    Source: 1997 Benchmarking Study in Chemical Processing industry, John Schultz to be featured in
    Ron Moore’s new book What Tool? When? Selecting the Right Manufacturing Improvement Strategies and Tools



                                       Source: John Schultz, RM Group
                                                                                               Copyright 2013 GPAllied©
Why does it all matter?




                          Copyright 2013 GPAllied©
Maintenance Cost % of RAV




                            Copyright 2013 GPAllied©
Questions/Comments?




                      Copyright 2013 GPAllied©

Results from Optimized Asset Reliability

  • 1.
    Results from OptimizedReliability Presented by: Ricky Smith, CMRP February 2013 Copyright 2013 GPAllied©
  • 2.
    “A Proactive ReliabilityProcess is a supply chain. If a step in the process is skipped, or performed at a substandard level, the process creates defects known as failures. The output of a healthy reliability process is optimal asset reliability at optimal cost.” ― Ron Thomas, former Reliability Director, Dofasco Steel, Hamilton, ON Copyright 2013 GPAllied©
  • 3.
    Maintenance • ToMaintain • Preserve, and Protect from Degradation • Maintain Asset Reliability Copyright 2013 GPAllied©
  • 4.
    Reliability Meeting the functional requirements of the end user Copyright 2013 GPAllied©
  • 5.
    Reactive Maintenance Attributes • Ineffective or No Planning and Scheduling • PM Compliance has a wide variance • Performing PM on Equipment that continues to breakdown • Overnight deliveries sit for weeks, months • Everyone works as hard as they can with little if any movement seen toward proactive • Storeroom is Chaos (people standing in line at 7:00am waiting on parts) • Contractor replacing equipment with no one validating if the defect was eliminated or work was completed accurately Copyright 2013 GPAllied©
  • 6.
    Variation is YourEnemy - Causes • No Repeatable/Effective Procedures • Lack of Discipline in maintenance execution • The wrong maintenance approach to reliability • Production not operating the equipment to standard • PM Compliance is Too Wide • Doing Too Much PM • No standards or specifications Copyright 2013 GPAllied©
  • 7.
    Dr. Deming: “Your systemis perfectly designed to give you the results you are getting.” Electric Motors – Plant Wide (Mean Time Between Failures) 80 75 70 65 60 55 50 45 Hours 40 35 30 25 20 15 10 5 0 7 Copyright 2013 GPAllied©
  • 8.
    World Class Standards– Where are you? • PM Execution – 15% • PM Results – 15% • PdM Execution – 15% • PdM Results – 35% • Total Work “Planned” – 90% • Reactive Work – Less than 2% • Stock-outs – less than 2% • Scheduled compliance by day/week – 85 to 90% • Failure Elimination is a key focus of all (FRACAS) • Work orders are closed out with ALL Codes ID Copyright 2013 GPAllied©
  • 9.
    Alcoa Mt Hollyvs. World Class Standards Copyright 2013 GPAllied©
  • 10.
    Cost Comparison ofMaintenance Programs ($ per Horsepower) Maintenance Cost Run to Preventive Predictive Precision Failure Source: EPRI Power Generation Study Copyright 2013 GPAllied©
  • 11.
    Safety and Reliability Injury Rate (% of Base) 135 120 OEE (% of Base) 115 115 95 110 75 105 55 100 35 95 15 90 13 17 21 25 28 33 37 41 45 48 53 1 5 9 OEE Month Injury Rate Source: The RM Group, Knoxville, TN Copyright 2013 GPAllied©
  • 12.
    Maintenance Costs vs.Vibration Analysis Maintenance Costs ($) %RAV Vibration Analysis (%) Source: 1997 Benchmarking Study in Chemical Processing industry, John Schultz to be featured in Ron Moore’s new book What Tool? When? Selecting the Right Manufacturing Improvement Strategies and Tools Source: John Schultz, RM Group Copyright 2013 GPAllied©
  • 13.
    Maintenance Costs vs.Equipment on PM Maintenance Costs ($) %RAV Equipment on PM (%) Source: 1997 Benchmarking Study in Chemical Processing industry, John Schultz to be featured in Ron Moore’s new book What Tool? When? Selecting the Right Manufacturing Improvement Strategies and Tools Source: John Schultz, RM Group Copyright 2013 GPAllied©
  • 14.
    Why does itall matter? Copyright 2013 GPAllied©
  • 15.
    Maintenance Cost %of RAV Copyright 2013 GPAllied©
  • 16.
    Questions/Comments? Copyright 2013 GPAllied©