I doesn't matter what you can do. What matters is what you can get funded.

1. JUSTIFY YOUR RELIABILITY BUDGET
Thomas R. Clawser, Director of Reliability Services
Delta Reliability | div. Brown Transmission and Bearing Co.
“We the willing, led by the unknowing, are
doing the impossible for the ungrateful. We
have done so much, with so little, for so
long, we are now qualified to do anything,
with nothing”.
Konstantin Josef Jireček (1854-1918) Czech historian, diplomat and slavist

2. TEN WAYS PdM IMPROVES ROI
① Avoid late shipments/lost opportunity
② Be safer – planned work is safer than
emergency or breakdown stops and
restarts
③ Prevent environmental
damage/regulatory violations - risk
mitigation
④ Mitigate the experienced worker
shortage - you don’t need as many of
those guys around all the time in case of
a breakdown
⑤ Avoid downtime/lost production
⑥ Catch degradation in output level or
quality before it drops too far
⑦ Reduce repair time – have skills, parts,
tools and information planned and
ready, avoid overtime
⑧ Reduce consequential damages to other
things that get wrecked when you run to
failure
⑨ Avoid utility penalty charges
⑩ Eliminate distractions to production
workers – unplanned breakdowns result
in confusion, tension, loss of morale, lost
productivity
Source: Ten Ways PdM Improves ROI: Examples of Cost-Benefit
Analysis for Condition Monitoring, Plant Services Magazine

3. UNDERSTANDING THE P-f INTERVAL
11
P-F Curve
avings based on:
Cost differential
between
– PdM Save
– Run to Failure
Ability to detect
problem as early
as possible & fix it! Cost of Failure
$
Source – ©TBR Strategies, LLC
The interval between the point at
which potential failure becomes
detectable and the point at which
it degrades into a functional
failure. Synonymous with lead
time to failure.
As asset condition degrades (left
to right), cost of failure increases
exponentially.
P-F Curve
Savings based on:
• Cost differential
between
– PdM Save
– Run to Failure
• Ability to detect
problem as early
as possible & fix it! Cost of Failure
$
Source – ©TBR Strategies, LLC

4. F O
E
Failure Avoidance Costs
What does machine failure really cost?
Parts, maintenance hours, idled workers,
damage to customer confidence, etc.
Revenue Gains
New customer orders
Increases in volume for existing clients
Productivity-based revenues
M&R Labor Effectiveness
Rework avoidance costs
Increase in wrench time
This is an example text.R
Optimization of Assets
What will a 1% increase in availability
equate to in dollars? (this will surprise you)
Reduction in capital funds necessary to
maintain system throughput
FORE-WARD THINKING

5. F RO E
Failure
Avoidance Costs
Range from
correcting a loss of
system
efficiency—typical
of air and steam
systems—to
partial or complete
functional failures.
Some failures have
the potential to
incur huge costs
related to capital,
labor, services,
product materials
and equipment.
FORE CONTRIBUTORS TO ROI NUMBERS
M&R Labor
Effectiveness
Also known as
Wrench Time (in
%); a measure of
the Hands-on
Work in Hours by
Craft employees
divided by the
Total Work in
Hours.
MRLE increases
contribute
significantly to ROI
calculations, as
direct and indirect
savings to the
plant.
Revenue
Increases
Any increase in
revenue potential
gained through an
improvement in
machine
availability,
performance,
labor effectiveness
or other
contributors to
system reliability in
the plant(s).
Asset
Optimization
Comprehensive,
fully integrated
strategic plan
directed to gaining
and sustaining
greatest lifetime
value, utilization,
productivity,
effectiveness,
value, profitability
and ROI from
manufacturing
production,
operation and
infrastructure
assets.

6. SIMPLE ROI CALCULATOR
F RO E

7. Questions?
More Information?
Thomas R. Clawser, Director
P: (800) 366-9201 M: (717) 278-8097
tom.clawser@deltareliability.us
www.linkedin.com/in/tomclawser