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MAINTENANCE

STRATEGY
OPTIMIZATION
BUILDING A
COMPELLING
BUSINESS CASE
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YOU SAY YOU WANT


WORLD-CLASS
MAINTENANCE
PERFORMANCE?
You cant get there without a strong maintenance strategy. But all too
often, the decision-makers within the organization dont want to invest in
undertaking a review and optimization project they simply dont see the
point.

How do you raise awareness within the organization and get support for
what you need to do? You have to build a business case that can overcome
the primary objections, illuminate the need and demonstrate the real,
tangible value that your project will provide to the organization.
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WHY DOES IT MATTER?


A maintenance strategy defines the approach you will
take to maintaining equipment across a given facility
or company. Ultimately, your maintenance strategy
gets converted into tasks that will then be driven
by your computerized maintenance management
system (CMMS).
Optimizing your maintenance strategy helps Equipment availability the percentage
you align maintenance with overall business of time that the equipment is available
objectives. For example, if you need to get when needed
100k units out of a piece of equipment,
your approach to maintaining it would be Lifecycle costs the sum of costs to
very different than with an asset thats 100% design, install, operate, maintain, and
redundant. decommission a piece of equipment

By reviewing and optimizing your strategy, you Ultimately, an optimized maintenance strategy
can also maintain an ideal balance among: can help you maximize production, quality, and
safety at the lowest cost while remaining
Maintenance costs the cost of labor, within your companys risk threshold.
materials and services necessary to
maintain the current functionality of the
equipment
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10 SIGNS YOU NEED A BETTER


MAINTENANCE STRATEGY
1. High production downtime

2. Maintenance staff in fire-fighting mode

3. Some spare parts collecting dust, yet key spares are not available when needed

4. Maintenance instructions consist of little more than a title or some generic text, e.g., check
and lube as necessary

5. Very little, if any, information captured on maintenance work orders

6. Scheduled maintenance tasks generally only created after equipment has failed

7. Costly equipment failures creating budget overruns

8. Higher risk of catastrophic failure, equipment damage and major events due to potential (or
actual) equipment failures

9. Maintenance KPIs are not in place or are trending towards lower performance

10. Maintenance group isnt highly valued by the rest of the organization

Looking for more detail? Download 5 Symptoms Your


Maintenance Strategy Needs Optimizing.
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POTENTIAL RESISTANCE AND


FEAR OF CHANGE
Maintenance? Production
Will my job be eliminated? Were here to make product, not some
elaborate maintenance plan.
Will I able to do the new job or
responsibility? The changes could make things worse,
so we are better off staying with what we
Will I be questioned for doing things have
wrong for so many years?

We have been maintaining these assets Site management


for years, we know what we are doing!
I want this equipment to run and if
We just need to get back to basics somethings on fire, I want you to take
care of it, but other than that dont talk to
me
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IN REALITY, OPTIMIZING YOUR


MAINTENANCE STRATEGY CAN DIRECTLY
BENEFIT ALL STAKEHOLDERS.
Mechanic or hands-on Maintenance manager or
maintenance staff supervisor
Fewer surprises and less stress All of the above, plus

More predictable work hours Improved site reputation within the


corporation
Greater understanding of and control over
equipment
Production and site
Increased job security
management
Better productivity and more reliably run
equipment

Higher throughput without additional


capital investments
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ULTIMATELY, AN OPTIMIZED MAINTENANCE STRATEGY WILL


TRANSFORM THE PERCEPTION OF MAINTENANCE
ACROSS THE ENTIRE ORGANIZATION.

CURRENT VIEW: DESIRED VIEW:


Maintenance is... Maintenance is

An expense center A profit center


A drain on my resources A strategic resource
Fixers They look after the Failure eliminators They manage
equipment the reliability of our processes.
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HOW DO YOU BUILD A CASE FOR


AN OPTIMIZATION PROJECT?

1. Show the decision-makers whats wrong and


demonstrate the current status

2. Explain and quantify how each problem affects


the business

3. Tell them what youre going to do

4. Quantify the additional cost savings to be realized


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1. SHOW THE DECISION-


MAKERS WHATS
WRONG.
Its important to fully illustrate the current state of maintenance in the
organization. Gather as much information as you can, using any past Root
Cause Analysis (RCA) investigations as well as the work order history in
your CMMS.

Past RCAs You can often identify systemic maintenance problems


by finding issues that show up multiple times in an event investigation
or in multiple investigations, at a single site or enterprise-wide. Using
classification tags in your RCAs can make it easier to spot these recurring
issues. Common examples include: spare parts not available, scheduled
maintenance not set up, scheduled maintenance not performed,
operating & maintenance manual not available, etc.
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Work order history


Start by comparing work order types to get a 1000-foot view. If most
of your work is reacting to a failure after it has occurred instead
of addressing potential failures before they have occurred this is
concrete evidence that you need a stronger maintenance strategy.

Next, identify the specific types of equipment that have the greatest
negative impact. Review the work order history using criteria such as
highest downtime, number of failures, highest maintenance costs, etc.
Many times the same assets will be at or near the top of the list for each
of these queries.

NOTE: Work order data isnt always accurate. For example, a work order
type might be noted as scheduled maintenance but was actually an
emergency repair, or an inspection turned into a major rebuild. Obtaining
accurate data might require combing through each work order to ensure
accuracy.

Finally, it might be helpful to perform Pareto analysis against the RCA and/
or work order data to further illustrate the current situation.
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2. EXPLAIN HOW EACH


PROBLEM AFFECTS
THE BUSINESS.
Paint a picture of what is wrong with the present situation and how it may
affect the company or already has. Use numbers as much as possible.
Where you cant, be as specific and descriptive as you can.

First, capture the scope of each event. This can include the number of
times the event occurred, its duration, and its frequency. (Frequency can be
especially key. A small problem might turn into death by a thousand paper
cuts if it happens fairly often.) Second, explain its effect on maintenance,
production, environmental health and safety, and the business as a whole.
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Maintenance impact each year More complex operations may


require a deeper level of analysis, but
Environmental impact Quantify
any actual or potential releases to the
Staff overtime Hours and overtime pay this is a good place to start. For further environment due to maintenance-related
insights, check out our blog, Is It the issues. Also put numbers to actual or
Spare-parts logistics costs This can Reliability Department's Job to Determine potential visits by the EPA and associated
include shipping, expediting, and storage the Cost of Downtime?" fines.
fees; as well as the cost of any parts
Product shipment delays The number
damaged or stolen in storage.
and duration of events, plus resulting Business impact
Equipment damage due to lack of proper freight costs or financial penalties from
Lost revenue How many dollars
maintenance Include any hours lost to the customer
arent coming into the company due to
repair time as well as outside expenses
Product stock depletion or out-of-stock maintenance-related events? (This might
for repair services and/or replacement.
situations This can include expedited be a roll-up of many other costs above.)
Lower labor utilization Inefficient shipping charges, fines or fees from
Brand damage How are maintenance-
maintenance strategies can lead to missing deliveries, outside costs to
related events affecting your PR or
wasted hours spent on lower-value replace stock, and even lost business
customer relations efforts? Consider
activities; such as waiting for parts or
Rejected/re-worked product This pulling reports from your customer
equipment, or traveling to and from the
could include lost productivity, additional service team showing the number of
work site to retrieve spare parts, tools and
parts or supplies, even outside expenses. calls or social posts received related
instructions
to maintenance issues, plus any other
relevant KPIs. Collect any relevant press
Production impact Environmental Health & or Internet commentary as well.

Downtime This can be tricky to pin Safety (EHS) impact Regulatory issues Have you received
down (and sometimes operations or any regulatory visits or fines due to
Safety Quantify any injuries according
accounting might be reluctant to do so). maintenance related events? Are you
to level (near miss, first aid, require
However, you can get a general idea of running a risk of regulatory oversight or
medical attention, lost time, fatality) and
the $/hour cost of downtime by taking fines?
the resulting impact on your business.
the annual profit that the equipment
Be sure to include potential injuries as
is responsible for and dividing by the
well. Quantify the risk of various injuries
number of hours the equipment runs
occurring as well as the resulting impact.
3. TELL THEM WHAT
YOURE GOING TO DO.
Present a project proposal for
optimizing your maintenance strategy.
Be sure to include the following:

Deliverables

Project team, including roles and responsibilities

Required resources (i.e., personnel and hours needed)

Budget

Schedule (a high-level Gantt chart )

Metrics and reporting

Estimated ROI
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4. QUANTIFY THE
ADDITIONAL COST
SAVINGS TO BE
REALIZED
The reality is, your current maintenance practices are still saving money
over a Run To Failure (RTF) strategy. Its important to acknowledge this in
your discussions, as it helps assure Maintenance that their hard work is
valued and has already contributed to savings for the organization. That
said, by optimizing the maintenance strategy further, more can be achieved.

Compare the average annual costs associated with a RTF strategy, your
current practice, and an optimized approach. This analysis can be done in
spreadsheets or using a reliability simulation tool such as the RCMCost
module of Isographs Availability Workbench.
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To help bring your point home, illustrate the potential additional cost savings with
a graphic like the one shown below.
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At this point, you would have convinced


leadership that an optimization project
is both necessary and beneficial for the
organization.
NOTE: Many of our new clients start with a pilot project to optimize one or a few
pieces of equipment. This allows them to demonstrate the value of optimizing
maintenance strategies with a smaller investment, creates the business case,
and helps leadership make an informed decision about expanding the project to
more equipment. These pilots generally range from 10 to 50 days in duration, and
yield cost savings nearly every time.
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LETS GET STARTED!


Once youve obtained buy-in, youre ready to embark
on your project.
Before you go too far, however, keep in mind that After the project is complete, be sure to circle
an optimized strategy must be well-planned and back with the ultimate ROI and final outcomes.
organized into your CMMS system. A strategy that Demonstrate any savings realized, minus the cost of
could save multiple thousands or even millions of your optimization project. NOTE: Future year costs
dollars annually is no good if it sits in a binder on and savings need to be discounted to reflect the
the office shelf. Make sure you have a system in present value of future cash flows.
place for getting the new optimized strategies into
your CMMS whether thats through direct manual To learn more about optimizing maintenance

entry, load sheets, or CMMS integration with your strategies, please contact us at the office location

reliability simulation software. Additional effort nearest you. You can also make an inquiry at

may be required to establish appropriate business armsreliability.com.

processes and train those who will be responsible


for planning and scheduling the work.
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ARMS Reliability is a leading global provider of reliability engineering to companies


operating fixed plant, rotating equipment, mobile fleets, power supplies and other
infrastructure assets.

Offering reliability engineering consulting, training and software services using


the flagship Isograph Ltd Reliability Software and the Apollo Root Cause Analysis
methodology, we will help you analyse and improve the reliability of new or
existing equipment, and find effective solutions that eliminate repetitive failures.

To learn more visit


www.armsreliability.com
Availability Workbench and its modules are trademarks owned by Isograph Ltd. ARMS Reliability are licensed implementers, trainers and resellers.

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