WEM Report Final JB

$399
WEM
WORK EXECUTION MANAGEMENT
Project Manager’s
Guide
WEM
WEM
Work Execution Management Project Manager’s Guide
WORK EXECUTION MANAGEMENT
Project Manager’s
Guide
Netexpress, Inc. d/b/a Reliabilityweb.com (“Reliabilityweb.com”) subscribes to the concept of fair use of this
copyrighted information. If text, images and/or data is excerpted, please use the following attribution:
Attribution: You must give Reliabilityweb.com credit by listing it as the copyright owner and adding a
web link (URL) to http://www.reliabilityweb.com.
You are free to copy, distribute, display and perform the information contained in this guide under the
following conditions:
Commercial: You may not use this work as part of a commercial product or service that will be resold.
No Derivative Works: You may not alter, transform, or build upon this guide.
Any Reuse or Distribution: You must make clear to others the license terms of this guide.
Any of these conditions can be waived if you get written permission from the copyright holder.
Your fair use and other rights are in no way affected by the above.
Reliabilityweb.com reviews this document from time to time, at which time it may be reaffirmed, revised,
or canceled. Reliabilityweb.com invites your written comments and suggestions.
Comments, criticisms and suggestions are invited year-round by sending an
e-mail to: crm@reliabilityweb.com
QUESTIONS REGARDING THIS DOCUMENT:
PHONE:(888) 575-1245
POSTAL: Reliabilityweb.com, 8991 Daniels Center Dr., Suite 105, Fort Myers, FL 33912 USA
WEB ADDRESS: http://www.reliabilityweb.com
E-MAIL: crm@reliabilityweb.com
© 2016 Reliabilityweb.com. No use without attribution.

Contents
Insights into WEM 5
Introduction 6
WEM Process Overview 8
Preventive Maintenance 8
Preventive Maintenance: Today's Manufacturing Game Changer 8
Defect Elimination 9
MRO-Spares Management 9
Planning and Scheduling 9
Computerized Maintenance Management System 10
Operator Driven Reliability 10
Criteria for WEM Improvement 10
WEM Organizational Readiness 10
Convincing the Organization 10
Developing and Implementing a WEM Improvement Process 14
Implementation Flow 14
Developing a Preventive Maintenance Process 14
Defect Elimination, Zero Breakdowns 16
Why Defect Elimination Is Effective 16

MRO Inventory and Purchasing 17
Planning and Scheduling 19

More Bang for the Money with Planning and Scheduling 21
CMMS/EAM Systems 22
The New Generation of Maintenance Management 24
Operator Driven Reliability 26
Measuring Baseline Performance 28
Developing a Maintenance Organization 30

Goals and Objectives of Maintenance Organizations 30
Organization Structures 34
How to Learn to Cycle 38
Roles and Responsibilities 40
Maintenance Staffing Options 47
Maintenance Organizational Staffing 48

Performance Indicators 52
The Maintenance Business 54
Terms and Definitions 55
Authors and Contributors 63
Sponsors 66
Insights into Work Execution Management
"Planning is bringing the future

into the present so that you can
do something about it now."
Alan Lakein
Back in 2005, Reliabilityweb.com facilitated a dedicated team of reliability leaders
who created the original Reliability Centered Maintenance (RCM) Project Manager’s
Guide. This document was updated in 2014 by another team of dedicated reliability
leaders. The objective of the document was to reduce all of the typical barriers to
effective implementation of an RCM-based strategy.
The RCM Project Manager’s Guide accomplished its objective and is now one of the most important publications
related to RCM and Maintenance Strategy Development. The people who have read and used the RCM Project
Manager’s Guide report saving lots of time and wasted energy. More importantly, they avoid many of the factors
that diminish the fantastic return on investment that is available from the use of RCM.
As a result, Reliabilityweb.com has been inspired to apply effort to a new series of Project Manager’s Guides
beginning with this publication focused on Work Execution Management (WEM). We hope that the WEM Project
Manager’s Guide becomes the companion to the RCM Project Manager’s Guide as they are codependent on each
other. You can use the RCM Project Manager’s Guide to determine the right work strategy to execute, and you can
use the WEM Project Manager’s Guide to create a managing system to deliver that strategy.
I am thrilled to have had an opportunity to work with two of the most influential subject matter experts on WEM
to create this document. Terry Wireman was generous with his knowledge and experience, and did much of the
heavy lifting. In addition, Joel Levitt added just the right touches to put this work into perspective.
I am also appreciative of the publishing and support team at Reliabilityweb.com, who worked with integrity, au-
thenticity and accountability. They utilized their own reliability leadership as natural self-expression in creating
this document.
Please post links to this document on LinkedIn, Facebook, Twitter or on your own blog. so we can share this work
with the asset managers, reliability leaders and maintenance professionals we have yet to meet.
Thank you for your continued support of our work at Reliabilityweb.com.
Warm regards, "Being busy does not always mean real work. The object of
all work is production or accomplishment and to either of
Terrence O’Hanlon
CEO and Publisher these ends there must be forethought, system, planning,
Reliabilityweb.com intelligence, and honest purpose, as well as perspiration.
Uptime® Magazine Seeming to do is not doing."
Thomas A. Edison
5
Introduction
The Key to True Asset Management
If one considers asset management as caring for the assets of an organization, then it is true that work
execution management enables asset management. If one considers that reliability engineering for
maintenance and asset condition management generates the work to be performed, then work execu-
tion management is the process in which the work is accomplished. If the work is not accomplished, then
reliability engineering for maintenance and asset condition management for maintenance both become
academic exercises.
The Body of Knowledge

The body of knowledge for WEM is comprised of books and articles that deal with work execution. This
includes books and articles on preventive maintenance, maintenance organizational design, planning and
scheduling, operator driven reliability and maintenance, repair and overhaul (MRO)-spares management.
Adopters of work execution management are advised to read publications dealing with each of the ele-
ments that comprise WEM before beginning implementation.
Creating an Asset Management Culture

So much of what is accomplished in WEM relates to the culture of the organization. It relates to the
organization being reactive or proactive. In a reactive organization, WEM best practices seldom exist; the
culture is “fix it when it breaks.” This leads to excessive maintenance costs and high equipment downtime.
In a proactive organization, work activities are planned, scheduled and executed at the lowest possible
maintenance costs and minimum equipment downtime. While there is no organization that is purely reac-
tive or proactive, most will tend to focus on reactive work. Moving from a reactive to a proactive culture
is one of the most challenging missions in developing a work execution management culture.
Its Place in the Uptime Elements

Regardless of how good your maintenance strategy is, it is your organizational culture that will determine
its performance. Culture is built from within and is cultivated by leaders who are trying to engage em-
ployees in developing and enhancing the performance of the organization.
The Uptime Elements framework, shown in Figure 1, provides a map of tools and techniques for under-
standing asset leadership and creating a culture of reliability. WEM provides powerful culture building
tools, such as defect elimination and planning and scheduling. In addition to the obvious tangible asset
performance benefits delivered, the Uptime Elements framework begins to change the organizational cul-
ture from reactive to proactive. The proven approaches to successful work execution management pro-
vided in this guide are represented by the work execution management elements pictured in blue on the
Uptime Elements chart in Figure 1. The combination of technical excellence and empowered leadership at
all levels is by far the most significant indicator of a successful work execution management process and
an organization that delivers significant results.
6
Rcm
reliability
A Reliability Framework for Asset Per formance
Elements ™
Opx
Work Execution Management
operational
centered excellence
maintenance
Fmea Ca Aci Vib Oa Pm Ps Kpi Pam key

failure mode criticality asset vibration oil preventive planning and physical asset
effects analysis analysis condition analysis analysis maintenance scheduling performance management
information indicators
Pmo Rca Ut Ir infrared

Mt motor
Odr Mro
operator mro-spares
Hcm Int
human capital integrity
pm root cause ultrasound
optimization analysis testing thermal testing driven management management
imaging reliability
Re Cp Ab Ndt Lu
alignment and non
De Cmms
defect computerized
Cbl Es
competency executive
reliability capital machinery
engineering project balancing destructive lubrication elimination maintenance based sponsorship
management testing management learning
system
Reliability Engineering Asset Condition Work Execution Leadership

REM for Maintenance ACM Management WEM Management LER for Reliability
Reliabilityweb.com’s Asset Management Timeline
Business Operate Modify/Upgrade

AM Asset Management Needs Analysis Asset Plan Design Create
Maintain Dispose
Asset Lifecycle
Uptime Elements are a trademark of Uptime Magazine • ©2012-2014 Reliabilityweb.com • uptimemagazine.com • reliabilityweb.com • maintenance.org
Figure 1: WEM’s placement in the Uptime Elements framework
The Uptime Elements framework works seamlessly with the International Organization for Standardiza-
tion’s (ISO’s) asset management standard. According to the ISO55000 asset management standard, an
asset is a thing that has potential or actual value to an organization. Asset management is a coordinated
set of activities to realize that value. Uptime Elements work execution management enables asset man-
agement by assuring the reliability and full function of the assets when value is demanded.
This guide aligns with the ISO standard and Uptime Elements framework. The guide’s recipe for success
is derived from industry best practices learned and communicated by dozens of practitioners involved in
creating the body of knowledge behind them. Reliabilityweb.com has hosted several industry conference
forums that contributed content to this guide and many authors have contributed examples and sections
to this work.
Most recently, Reliabilityweb.com convened a working group to develop this guide and reflect best prac-
tices common to all major work execution management approaches and capture lessons learned from
organizations deeply involved with WEM.
7
WEM Process Overview

The work execution management domain of Uptime Elements consists of six major elements:
1. Preventive maintenance;
2. Defect elimination;
3. MRO-spares management;
4. Planning and scheduling;
5. Computerized maintenance management system;
6. Operator driven reliability.
Preventive Maintenance
Preventive maintenance forms the foundation for the WEM domain and focuses on basic inspections and
services of the equipment. This is to ensure that work can be identified, planned, scheduled and executed
in a proactive mode. If an organization is good with conducting basic inspections and routine services,
equipment problems are greatly reduced. The goal of a preventive maintenance program is to reduce
the amount of reactive maintenance work to less than 20 percent of all activities. Organizations that are
successful with their preventive maintenance programs easily achieve this objective.
Preventive Maintenance:
Today’s Manufacturing Game Changer
W hen it comes to maintenance in manufac-

turing today, the industry is rapidly evolving
from a reactive approach to a proactive one. Times
Changing the safety game
Preventive maintenance changes the way safety is
viewed in the organization. Too often, some safety
of run to failure for equipment are ending. Guided by measures are seen as time-consuming, tedious ac-
evolving technology, many manufacturers have either tions and protocols that are barely tolerated and of-
implemented or are in the process of implementing ten circumvented. Preventive maintenance turns that
a preventive maintenance plan. At its most evolved, thinking on its head; when equipment isn’t working in
maintenance morphs from preventive to predictive in optimal condition, it creates hazards, unsafe working
nature, with sophisticated analytics functionality that conditions and even emergency situations where
significantly impacts output, efficiencies and perfor- workers can be injured. By improving the safety of
mance for the business organization as a whole. equipment, preventive maintenance also improves
the safety of company workers, resulting in fewer on-
Preventive maintenance is a game changer and, with- the-job injuries and accidents.
out a doubt, a good preventive maintenance program
will have a significant impact on equipment efficiencies, Positive change in people
downtime and overall manufacturing costs. But there The vast majority of a company’s workforce sincerely
are many other areas where a well managed mainte- wants to contribute to their employer’s success. Spo-
nance program can turn the tables -- for the better -- radically productive, poorly maintained and unreliable
in your manufacturing facility. Here are just a few. equipment is frustrating for management and the
8
production workforce alike. Well managed preven- So where does one begin? If you’re entirely new to
tive maintenance programs address the root cause preventive maintenance, the first step is to honestly
of that frustration and promote a positive change in evaluate where you are today and where you want to
and for the entire workforce, from top to bottom. take your maintenance strategy in the future.
The switch from reactive caretaker of breakdowns
to empowered preventive analyst produces a worker If you have a preventive maintenance plan up and
that’s more engaged, happy and secure. Employees running, take it a step further by studying the latest
will quickly realize that the plan’s success helps them technologies and industry leaders. Analyze which
reap personal rewards, including more productive equipment and brands have a history of superior
hours and, in some cases, better paychecks. performance for you. Then, work closely with experts
in the field to formulate preventive and predictive
Real productivity improvements maintenance plans to boost your output and produc-
Positive changes in safety and engagement add up to tivity even more.
big boosts in productivity. Preventive maintenance
minimizes and, in some cases, even eliminates down- When you do, you’ll be that much further ahead of
time. Less downtime adds up to production increases the competition in terms of changing the game for
and cost savings that positively impact the bottom the better in your facility.
line in both the short and long term.
Insight by Mark Cox
Advanced Technology Services, Inc.
Defect Elimination
Defect elimination can be conducted as part of the preventive maintenance
program or as a separate activity where the entire organization focuses on
elimination of defects. What are these defects? They result from basic activ-
ities that operations and maintenance personnel perform on the equipment
to eliminate breakdowns or equipment capacity reductions. If these activities
are not performed at a precision level, small defects are introduced into the
equipment. Helping everyone who interacts with the equipment to perform
their activities at a precision level contributes to defect elimination. A prop-
erly implemented defect elimination program should reduce the amount of
reactive work in an organization to less than 10 percent of all activities.
MRO-Spares Management
MRO-spares management is the management of all spare parts for plant equipment. MRO-spares man-
agement includes activities, such as ordering spare parts, receiving spare parts, binning spare parts, and
issuing and returning spare parts. It is necessary to have documented process flows for these activities to
ensure the organization consistently completes them. It is also necessary for MRO-spares management
to provide 95 to 97 percent service levels for spare parts in order to begin planning and scheduling.
Planning and Scheduling

Planning and scheduling is the coordination of maintenance activities to ensure there are no work delays
due to logistics. These delays include equipment not properly shut down, no spare parts, or wrong skills
9
sent to the job. Planning and scheduling should be performed for at least 80 percent of all maintenance
activities, with schedule compliance greater than 90 percent. One of the major enablers to successful
planning and scheduling is a correctly structured maintenance organization, which will be covered later in
this guide.
Computerized Maintenance Management System

A computerized maintenance management system (CMMS) is an electronic system utilized to manage all
maintenance activities. This computerized system is used to generate preventive maintenance tasks, man-
age materials, and plan and schedule all maintenance activities. If used correctly, a complete history of all
activities performed on the equipment in the plant is readily available for analysis.
Operator Driven Reliability

Operator driven reliability (ODR) is a process whereby the operators are involved in some activities on
their equipment that enhance reliability. ODR also may involve transferring some tasks typically per-
formed by maintenance to the operators. ODR eliminates equipment downtime and frees up mainte-
nance resources so they can be redeployed in higher level predictive or reliability activities. ODR involves
operators in 10 to 40 percent of all preventive maintenance activities.
Plans are nothing;

Criteria for WEM Improvement planning is everything.
Dwight D. Eisenhower
WEM Organizational Readiness
Through a step-by-step process, virtually any organization can improve in work execution management.
To properly structure WEM improvement, it is necessary to know the current status of the organization.
Numerous analysis tools are available for this purpose; some very extensive, others too basic to provide a
valid analysis. One of the best analysis tools is offered at:
http://reliabilityweb.com/best-practices-maintenance
The 16-part survey provided on the site has been completed by hundreds of organizations. The results
allow you to evaluate your organization against the average compiled in the database. This will help you
identify both strong areas and weak areas in work execution management.
Once you have completed a WEM survey, using either the 16-part survey or one of your choosing, it is
essential to examine the results. If the results can be compared to a database, such as with the 16-part
survey, an implementation plan will be easier to develop.
Convincing the Organization

Once the strengths and weaknesses of the organization are highlighted, the next step is to discuss how to
convince the organization to invest in and implement a work execution management process. This step is
divided into four primary topics:
10
1. Financial impact;
2. Senior executives;
3. Peers within the organization;
4. Subordinates.
Financial Impact
The four areas of financial impact are:
Maintenance labor;
Maintenance materials;
Maintenance shutdowns, turnarounds and outages;
Asset downtime.
Maintenance Labor
Maintenance productivity in most U.S. companies averages between 20 and 30 percent. This trans-
lates into approximately two hours per eight hour shift of hands-on activities. Most of the lost
productivity can be attributed to these reasons:
Waiting on parts;
Waiting on information, drawings, instructions, etc.;
Waiting for the equipment to be shut down;
Waiting on rental equipment to arrive;
Waiting on other crafts to finish their part of the job;
Running from emergency to emergency.
While 100 percent productivity is an unrealistic goal for any maintenance organization, a more real-
istic percentage of 60 percent is achievable.
Productivity of maintenance technicians can be improved by concentrating on basic management

techniques, such as:
Planning jobs in advance;

Scheduling jobs and coordinating schedules with operations;
Arranging for parts to be ready;
Coordinating tools, rental equipment, etc.;
Reducing emergency work below the 50 percent level through preventive maintenance.
With computer assistance, planning time per job can be reduced, resulting in more jobs planned
and coordinated. This allows more time for preventive maintenance activities, which, in turn, help
reduce the amount of emergency and breakdown activities. This results in fewer schedule changes
and helps increase productivity by reducing travel and waiting times. Successful organizations im-
plementing WEM have indicated an increase in productivity of up to 28 percent.
11
Maintenance Materials
Material costs are related to the frequency and size of the repairs made to the
company’s equipment. The sheer number of parts, in addition to stores policies,
purchasing policies and overall inventory management practices, contribute to
the overall maintenance materials cost. Since little attention is paid to mainte-
nance materials in some companies, inventories may be higher than necessary
by some 20 to 30 percent. This increases inventory holding costs and makes
materials unnecessarily expensive. The inability of stores to service the mainte-
nance department’s needs results in “pirate” or “squirrel” storage depots for just
in case spares. This practice also drives up the cost of maintenance materials.
With materials making up 50 percent of the total maintenance costs, this is an
area where improvement is necessary.
Good inventory controls enable companies to lower the value of their inventory while still maintain-
ing a service level of at least 95 percent. This allows the maintenance department to be responsive
to the operations group, while still increasing its own personal productivity. Successful WEM imple-
mentations have averaged 19 percent in lower material costs and an overall 18 percent reduction in
total inventory.
Maintenance Shutdowns, Turnarounds and Outages

In many companies, maintenance is involved in project, shutdown, outage, or refurbishing activities.
These activities, if not properly controlled, can have a dramatic impact on the company’s produc-
tion capacity. That’s because these activities are usually performed with the equipment in a down
condition, meaning no production during this time. For this reason, any amount of time that can be
eliminated from the project, outage, or refurbishing can be converted to production time. In the
refining and power generation business, the cost of a prolonged outage is prohibitive.
Improved planning and coordination can be achieved with a robust WEM process. This will often
help shorten the downtime, even if the company is currently using a project management system.
Successful WEM processes have allowed companies to achieve up to a five percent reduction in
outage time.
Asset Downtime
Reduced downtime costs are the true savings for a company determined to improve maintenance
policies and practices. The downtime cost for equipment may vary from several thousands of
dollars per hour to literally hundreds of thousands of dollars per hour. One company with several
production lines in its plant had downtime on each worth $1 million for 24 hours.
In some companies, levels of downtime can run as high as 30 percent or more. This results in lost sales
opportunities and unnecessary expenditures for capital equipment generally put the company in a
weak competitive position. By dedicating the company to enforcing good maintenance policies and
practices and utilizing the CMMS as a tracking tool, equipment downtime can be reduced dramatically.
Successful WEM processes have allowed companies to achieve a 20 percent reduction in equipment
downtime losses.
12
Executive Sponsorship
Successful communications with senior executives must be done in the language of finance. At this level,
they tend to be very bottom-line oriented. Problems develop because maintenance executives tend to
communicate in a technical language. It is necessary to convert all technical benefits of WEM to financial
terms to obtain senior executive sponsorship. This is extremely important since without senior executive
sponsorship, WEM improvements have very little chance of success. Using the aforementioned four areas
to financially justify all WEM improvements is a first step in communicating with senior executives. When
senior executives see the possible savings that could come from the WEM improvement program, they
then tend to view any expenses in setting up the improvement program as a return on investment. They
realize that by spending some money up front, they have the potential to have large returns in the future.
The return on investment time frame is important to understand. It is not a matter of seeing the return
in a few weeks, rather executives must be willing to invest for three to six months to see the necessary
changes that will produce long-term savings.
Successful communications with senior executives

must be done in the language of finance.
Peers Within the Organization
Communicating with your peers in the organization is also important. For them to understand WEM
processes, they must be related to their existing processes. For example, if the communication is with
the maintenance manager’s operational peer, the communication is likely to revolve around equipment
downtime and throughput. By showing the operational manager the increased throughput that will be
achieved by downtime reductions, the WEM process is more attractive.
With the other mentioned measures, the reduction in downtime should be something to communicate
with the operations manager. If communication is with the engineering manager who is concerned about
projects, the ability for maintenance to support projects through better planning and scheduling would
be a key point in the communications.
Subordinates
When trying to develop bottom-up implementation support, selling WEM processes to subordinates is
also important. This level of communication should revolve around how WEM will make their job as-
signments easier and more fulfilling. By increasing their productivity and eliminating work delays, those
closest to the work will be able to take more pride in their activities.
If WEM processes are going to be successfully implemented, communication with the four groups iden-
tified in this section is extremely important. Without this level of successful communication, it is highly
unlikely that any work execution management will ever be successful.
13
Developing and Implementing a WEM

Improvement Process
Implementation Flow
There is a logical flow to implementing work execution management. This flow depends on the previous
element being effective before implementing the next element. This relationship is highlighted in Figure 2.
Figure 2: Typical implementation flow for WEM
The flow depicted in Figure 2 helps to emphasize the necessity for reducing the amount of reactive
work as an organization implements work execution management. A preventive maintenance program
should help an organization reach the threshold of less than 20 percent reactive work. The defect
elimination process helps to further reduce the amount of reactive work and continues to reinforce
precision maintenance.
With the amount of reactive work continuously decreasing, MRO inventory and purchasing can then be
implemented successfully. Once MRO inventory and purchasing controls and processes are properly
implemented, the organization can focus on effective planning and scheduling. While this will be covered
in more depth later in the guide, clearly understanding the processes and communicating them to the
organization is essential for effective planning and scheduling. Somewhere in the process of getting to
planning and scheduling, a CMMS is required to process all the data that will be generated for the assets
being maintained. The CMMS is a relational database that stores and processes this data. When an orga-
nization has achieved this level of maturity, it is likely that operators will be involved in some basic mainte-
nance activities.
The implementation sequence of the WEM elements is critical to avoid excessive costs and a high prob-
ability of failure. For example, if an organization tries to plan and schedule maintenance activities while
50 percent of its work is reactive, it would not achieve a high level of benefit from this practice. However,
once the amount of reactive work is below 20 percent, then the productivity gains from planning and
scheduling can be realized.
Developing a Preventive Maintenance Process

When an organization decides to develop a preventive maintenance (PM) program, it is usually in re-
sponse to a high rate of equipment failures. It is essential to avoid the trap of trying to develop a PM pro-
gram for every piece of equipment in a plant or facility. That is why the first step should be to determine
the critical equipment in the plant or facility. It is likely this information has already been gathered by one
of the reliability engineers for maintenance exercises. Once the critical equipment has been identified
through a process, such as ISO14224, it is necessary to develop a component listing for each critical piece
of equipment.
14
While some critical equipment may seem very complex, it eventually will break down into a series of basic
components. These may be things like electrical or electronic control systems, mechanical drives, fluid
power systems, or a combination of them. Once the complex systems are broken down into their basic
components, it is easy to determine the maintenance requirements for these components. For example,
what maintenance is required for a V-belt drive? Or a chain drive? Or for an electronic control system?
Once these basic PM requirements are identified, it is a matter of putting them in detail in a PM task.
This leads to developing a detailed job procedure for all maintenance tasks. This requires step-by-step in-
structions on how to perform the maintenance. While this may seem a time-consuming and tedious task,
it is essential to have the details to ensure the PM is performed correctly. This level of detail may include
items, such as torque specifications, normal operating pressures, normal operating temperatures, etc.
Once the detailed procedures are developed, the next step is to schedule the PM tasks. A task can be
scheduled on some type of time basis, such as daily, weekly, monthly, etc. Some tasks may be able to be
scheduled on a usage basis. This could be run hours, machine cycles, product produced, etc., to ensure
the equipment will be serviced at the appropriate frequency.
• New equipment
• EHS requirements
Develop/change
• Recommendations from
PM program
maintenance/reliability
engineering
Is it Get manufactured
new
Yes or OEM
equipment? recommended
PM program
No
Is
All current tasks for all Assemble all there a
technicians current program Yes present PM
information program?
Consult with:
No 1. Supervisors
2. Technicians
Using historical data, the Maintenance/ Gather 3. Similar equipment
Reliability Engineer can determine the equipment history records
following requirements: history
• PM
• PdM
Determine
• RTF requirement
• CBM
Create task
descriptions Calendar
The following should be Time-based
included as estimates on Planning Condition-based
the task: Set performance
Labor frequencies
Materials
Special Equipment
Link to appropriate
equipment
Figure 3: Process flow for developing a PM program To scheduling

process 15
Figure 3 provides a process flow for developing a PM program. While this example may not apply to all
organizations, it can be used as a guideline for developing company specific PM development flows.
Defect Elimination, Zero Breakdowns

Under defect elimination, defects are generally classified into five categories:
Operations Design
Workmanship Raw materials
Failure events
Defects caused by operations are typically generated by the way operations utilizes an asset or piece
of equipment. When standard procedures are not followed, the equipment is subjected to misuse not
planned for in the equipment design.
Defects caused by workmanship are typically generated by poor maintenance procedures, lack of techni-
cal training, or a skills gap that has developed.
Why
Defects resulting from failure events are also Defect Elimination
referred to as collateral damage after a failure.
For example, a bearing may lock out, causing Is Effective
A
damage to a shaft or coupling. Without a good lthough the business of asset management in
inspection and analysis process after a failure, today’s terminology has a complexity that serves
this damage may not be detected for a period to solve numerous challenges faced by facility man-
of time. This will contribute to poor operation agers, this complexity is borne out of simplicity. Thus,
of the equipment during this time. the key to effective asset management is a more
simplistic approach that, in turn, eliminates the need
Design defects are created when equipment for more complex solutions. Your business, after all, is
is used differently than its original specifica- to keep your machines healthier for a longer period
tions. Operating equipment beyond its design of time. By doing so, you enable higher availability and
parameters shortens its expected life, while lower costs for both operating and maintaining, as
operating equipment at less than its design well as capital reinvestment.
parameters does not produce a good return
on investment. Defect elimination (DE) is one of the more straight-
forward factors that can render immediate and signif-
Raw materials defects are from the quality of icant savings. To effectively apply DE in an industrial
materials, which can be process related. How- setting, it’s important to fully understand the nature
ever, poor quality MRO spares also can create of the failures impacting your machines. The two
defects. How MRO spares are stored methods for analyzing and mitigating machinery fail-
or handled also can contribute to defects. ures are: a proactive approach, such as reliability-cen-
tered maintenance (RCM) or failure mode and effects
By carefully considering these items, the analysis (FMEA), and a reactive approach, such as DE
amount of defects that are introduced into or root cause failure analysis. As RCM practitioners,
the company’s equipment can be your team fully understands the value of using RCM
significantly diminished. for analyzing critical and complex systems, but there
16
is a similar understanding that RCM spends a great deal
of time and resources anticipating failures that may
never happen in the life of the machine.
MRO Inventory and Purchasing
Through extensive analysis of work history across
MRO-spares management is balancing the
numerous industries, a few basic truths bolster the use
cost of inventory with the cost of downtime
of a method that focuses on what has happened rath-
to deliver an optimal spare parts strategy.
er than what might happen. For example, in process
Organizations need to give attention to
industries, such as power generation, water treatment,
MRO-spares management because it com-
chemical manufacturing and so forth, 80 percent of
prises somewhere between 40 to 60 per-
corrective maintenance labor hours are typically spent
cent of the company’s total maintenance
on less than five percent of the assets. In industries
budget. It is necessary to balance spare
that are more facilities based, such as manufacturing
parts costs against the cost of unavailability.
lines, airports, universities and such, the percentage
Unavailability means the equipment process
increases to approximately 15 percent based on indus-
is disrupted and unnecessary downtime
try research. Additionally, patterns show that the same
incurs while waiting for a spare part. Bal-
equipment receives consistent levels of attention year
ancing the cost of this downtime versus the
after year, indicating the same problems repeat them-
cost of keeping the spare part in stock can
selves over and over again unless the defect is identi-
have a significant impact on the profitability
fied and eliminated.
of the organization.
Thus, based on this knowledge, it’s safe to conclude

In most organizations today, poor service
that a very large percentage of problems and their
levels from the storeroom are typical. Poor
associated costs are driven by a very small number of
service levels are defined as lower than 95
failure modes. By identifying these failures through
percent. With these service levels, stock
proper use of failure codes, careful documentation
out percentages are high, resulting in lower
of corrective work and simple Pareto analysis of work
maintenance productivity. This creates a
history, one can quickly dedicate resources to fully
culture of “hoarding” and “pirating” spare
analyze, identify the causes and then minimize or com-
parts, which drives inventory levels higher
pletely eliminate their occurrence, or in the worst case,
than necessary and creates unnecessary
facilitate the proper direction to prepare for a subse-
maintenance costs.
quent occurrence.
There is also a tendency in most organi-
Of course, identification of the issues faced is only
zations to incorrectly staff the storeroom.
part of the defect elimination process. The plant must
This self-service attitude results in missing
develop mitigation actions that are cost-effective
spare parts due to improper documenta-
and quickly implemented, with impacts of the efforts
tion of transactions. This practice results in
tracked and reported. Thus, DE can be the most
inaccuracies in stock outs, causing delays
impactful and defensible approach to keeping your
in work execution. The situation is usu-
machines running at the lowest possible cost through
ally remedied when an annual inventory
a simple solution. After all, if you don’t make the effort
reconciliation is taken and the inventory
to understand history, you’re almost sure to repeat it.
write-down is calculated. The amount will
typically pay for the salary of the necessary
storeroom personnel. Insight by Jim Oldach, CH2M
17
MRO-spares management is necessary to deliver

savings in the areas of overall spare parts costs,
maintenance labor productivity costs, purchasing
costs and equipment downtime costs. MRO-spares
management is an essential component to any WEM
system.
MRO-spares management should have an organiza-

tional structure that eliminates wasted maintenance
productivity, standardized work processes for receiv-
ing, issuing and returning stock items, appropriate
numbering systems for stock inventory and key
performance indicators for measuring the service
level and total valuation trend.
MRO spares and purchasing typically make up 40 to

60 percent of the overall maintenance cost. Howev-
er, holding costs for spare parts are typically around
30 percent of the purchase price. Balancing inven-
tory costs against downtime costs requires an MRO
organization to collect data while following best
practice processes.
Some MRO management system components

include:
Location identification and structure that match the maintenance structure;

Storeroom organization
• by part type for larger storerooms,
• by equipment for smaller storerooms;
Securing spare parts;

Item master identification;
Development of stocking policies and calculations, including:
• reorder points – safety stock plus minimum quantity;
• reorder quantities;
• service levels – part availability 95 to 97 percent.
In addition, it is necessary to develop the appropriate work process flows for an MRO inventory and pur-
chasing organization. This allows the entire organization to understand how MRO inventory and purchas-
ing business is transacted. A sample flow of how to request spare parts is highlighted in Figure 4.
18
Planning
Process
Parts Need
Identified Requesting Spare
Parts Process
Create a Create a
Is the Part a Yes Request
Purchase No
Stock Item?
Requisition for Part
Requisition Pick List Is

Approval Printed
Purchase
Part Is Issued
Part
Parts Pickup,
Receive Scheduled
Delivery or
Part Process
Stocking
Figure 4: Process flow for requesting spare parts
At a minimum, these processes should be documented:
Material/spare part ordering process;

Expediting process;
Delivery acceptance process;
Receipt and binning process;
Spare parts issuing process.
Depending on the size of the MRO storeroom and purchasing organization, there may be additional pro-
cess flows that need to be documented. This is necessary to ensure that the MRO inventory and purchas-
ing department is truly run as a business.

Once the basic controls and disciplines for maintenance are in place, improving maintenance effective-
ness begins by understanding the impact planning and scheduling have on maintenance costs. The gener-
al rule is that proactive work can be performed for 1/4 to 1/2 of the cost of reactive work. The three main
areas of savings are: maintenance labor, maintenance materials and maintenance contractors.
The goal of maintenance planning and scheduling is to improve maintenance labor productivity, thus
eliminating waste from the maintenance work processes. In a reactive maintenance environment, where
greater than 20 percent of maintenance resources are deployed on unplanned and unscheduled work,
19
maintenance labor productivity is typically less than

30 percent. With an effective planning and sched-
uling process, maintenance labor productivity can
possibly reach the 60 percent level. This basically
doubles the amount of work that can be performed
with the same resources.
Maintenance material costs are also reduced by

maintenance planning and scheduling. With better
maintenance controls in place, including forecasted
demands, material costs are reduced by these activities:
With a forecasted demand available from good planning and scheduling, it is possible to obtain
better pricing from vendors.
With planning and scheduling in place and, again, having forecasted demands, optimum stocking
levels can be decided, with resulting optimized service levels.
With closer tracking of the inventory, there is less loss due to expired shelf life of spares and/or supplies.
With less reactive work and utilizing forecasted demands, there are lower expediting costs.
With enhanced inventory spare parts tracking, there are fewer storage locations, which contrib-
utes to just-in-time spare parts delivery and usage.
With enhance planning and scheduling, kitting and staging become viable, thus further increasing
the efficiency of maintenance resources.
These cost savings can be substantial, further reducing material costs for an organization with effective
maintenance stores and purchasing processes.
In addition, where internal maintenance labor productivity and material costs are reduced by planning
and scheduling, contractor costs are also reduced. Contractor costs are reduced in the same way as in-
ternal maintenance resources – through more effective and efficient deployment of resources.
In developing the maintenance reliability organization, the maintenance organizational structure plays
a key role. To be effective with planning and scheduling, it is essential to have an efficient and effective
maintenance organization in place. It is truly one of the hidden “enablers” in work execution manage-
ment. Without this, there is no opportunity to standardize maintenance reliability processes sufficiently
enough to produce professional business results.
The components of an efficient and effective maintenance organization are:
Maintenance Organizations: Geographical and Reporting:

• Goals and objectives • Roles and responsibilities;
• Organizational structure; • Staffing levels.
20
More Bang for the Money

with Planning and Scheduling
W ith effective planning and
scheduling, significant cost
savings are realized with reduced
job plan library reduces costs associ-
ated with job planning from a “devel-
op once, reuse many times” perspec-
As planning and scheduling take hold
in a reactive organization, a trans-
formation in culture also occurs
maintenance labor, maintenance tive. Integrating an effective feedback across the maintenance organization.
materials and maintenance con- process provides for continuous im- Technicians find that they have the
provement to the individual job plans. time to do the job right the first time,
tractors. You can dig deeper to ex-
The accepted span of control for the and they have the right materials
pand on the planning and schedul-
planner is 20 to 30 technicians. For an and parts. The job gets easier and
ing benefits, both internally within
organization beginning the planning they can plan their lives as well. The
maintenance and externally with
and scheduling process, 20 techni- human costs driven from the previous
your organizational partners. cians per planner allows time for job reactive maintenance approach are
plan library development. As the orga- reduced. People can realize a work-life
With an experienced craftsperson in nization matures in the planning and balance they may never have known
the planning role, you can accurately scheduling process with job plans, less in their career. Employee engagement
estimate job durations and define planner time is required to plan future and morale are increased.
the steps required for tasks. Properly work, enabling a greater technician to
planned and coordinated activities planner ratio, such as 30 to 1. The planning and scheduling process
reduce the amount of time required
brings order to what may have been
for work execution by upwards of 50 The use of precision task steps in the utter chaos previously. Done right, the
percent compared to reactive work. job plan includes specifications, such impact of planning and scheduling is
As mentioned, this provides a main- as torque settings, clearances, gaps, far-reaching. The benefits go beyond
tenance labor cost reduction. It also fits, belt tension and so on. Coupling reducing maintenance labor, materials
provides an equipment availability in- these with the enforcement of the and contractor costs. The reality is
crease for your production partners. procedure steps ensure standardized that maintenance planning and sched-
This availability increase may reduce work from one technician to the uling is the central hub to effective
the need for additional production next. These precision steps drive a work execution management (WEM).
labor at overtime rates or additional significant reduction in self-induced ecution management (WEM).
shifts to meet production targets. failure rates, which according to John
By eliminating the avoidable delays, Moubray in the book, “Reliability-Cen-
the productivity of the maintenance tered Maintenance Second Edition,” Insight by Jeff Shiver
technician workforce can show a 50
to 100 percent increase or more for
approach 70 percent. Upwards of People and Processes, Inc.
40 percent of the 70 percent value
many maintenance organizations. This is attributed to human error, where
enables the maintenance function to the technician simply made a mistake.
accomplish more work in the same This reduction in self-induced failures
window of time. corresponds to a reduction in the re-
work that drives reduced equipment
Since much maintenance work is downtime and maintenance costs.
repetitive, the planner’s creation of a
21
CMMS / EAM Systems

One key business process that many industries are currently focusing their attention on is the maintenance
business function. While this business function is often viewed as a necessary evil, with a continual focus on
cost reduction, it is now being seen as an untapped opportunity for increased revenue generation.
Cost reduction in maintenance does not mean a reduction in the level of service or the quality of service.
It means a better control of the maintenance organization and related areas. The concept of lean main-
tenance is to drive the waste out of the maintenance process. To properly control maintenance in any
facility, information is required to analyze what is occurring. Manually, this requires a tremendous amount
of effort and time.
In recognition of this, many progressive companies are developing and using computer programs geared
toward control of the maintenance organization. These systems are referred to as a computerized main-
tenance management system (CMMS) or an enterprise asset management system (EAM). The CMMS or
EAM system is designed to focus on gathering all maintenance-related data and filing it in the history of
the proper asset, whether it is a piece of equipment, location, or the building-floor-room locator typically
used in facilities. Figure 5 shows the flow diagram for a typical CMMS or EAM system.
Equipment
History Files
Building
Predictive
Work Rebuild
Preventive
Inside/Contract
Order
Inventory
Labor and Contract Rental
and Stores Equipment and Misc.
Personnel Costs and Info
Figure 5: An example of a flow diagram

for a CMMS/EAM system Purchasing
Astute observers of the market for computerized maintenance management systems may have noticed
that software vendors are beginning to call their products enterprise asset management systems instead
of computerized maintenance management systems. To understand the reason for this change, one must
be aware that many companies use enterprise resource planning (ERP) systems to manage all resources
22
required to produce a product or provide a service. These systems are connected with businesses from
order entry to order fulfillment. The majority of ERP systems contain an EAM system as a module.
By contrast, a CMMS is used by the maintenance department to manage the maintenance function.
Typically, a CMMS is independent of the main business system (usually an ERP system), requiring manual
schedule integration to avoid conflicts.
When there are conflicts between ERP systems and a CMMS, it is often because of the failure to give
sufficient emphasis to the maintenance function. In general, a company cannot successfully plan and
schedule resources (assets) at an enterprise level without managing assets at that level. Most companies
still manage assets at a department, or at best, a plant level.
Conflicts also develop due to poor equipment availability, when excess assets are purchased to ensure
enough capacity to meet market demands. This strategy is uncontrolled, often resulting in excessive
maintenance, repair and operating costs, as well as lower asset utilization. Excess (underutilized) assets
lower the return on assets (ROA), signaling to investors that this is a poor investment.
The solution is to move beyond ERP and CMMS to an integrated EAM solution. EAM systems seek to
manage a company’s assets at an enterprise level to optimize their utilization, thereby maximizing the
return on investment (ROI) in the assets. EAM includes using real-time information from all parts of
the company to balance the maintenance and operational needs in a financial equation to maximize the
shareholder’s investment in the assets. In other words, EAM takes a process or asset focused view of the
entire business, as opposed to a product focused view.
In summary, ERP systems entail plan-

ning based on capacity. EAM enables
or delivers that capacity. Thus, EAM
is more than maintenance manage-
ment and EAM software aims to be
more than maintenance management
software.
Another way to determine the

differences between any CMMS and
EAM system is to review the busi-
ness functions each includes. The
basic outline for a CMMS focuses on
managing maintenance and MRO inventory and purchasing. To have a full EAM system, items like compa-
ny financials, human resources, time and payroll, and material requirements planning must be integrated.
In addition, there are technical modules, such as radio-frequency identification (RFID), mobile devices,
calibration devices and real-time asset health monitoring devices, that must be integrated. When all these
are included with a focus on properly managing the assets, full EAM is achievable.
23
The New Generation of

Maintenance Management
Work execution management (WEM) manages the tenance departments spend 20 to 30 times more
thousands of details that make up maintenance. hours with the transaction part of the system than
Anyone of those details could cause downtime, ex- any other part of the system. To help ensure good
cessive repair costs or, in the worst case, a death or data comes from the tradespeople, try the following:
environmental disaster. The stakes are high and the
Be sure each tradesperson is fully trained
amount of detail is enormous.
on what goes in each field, why it is there
and how it is used to improve the company’s
In today’s world, the treasure chest where the
achievement of its aim.
details live and are managed is called the computer-
ized maintenance management system (CMMS) or Set up a feedback system that returns incom-
enterprise asset management (EAM) system. The plete or incorrect work orders to the trades-
challenge of WEM is fourfold: person with the deficiencies highlighted. This
is done non-punitively.
1. Collecting the details necessary to
make decisions about and manage the Enroll the tradespeople who have an interest
maintenance effort; in using the data to improve their mainte-
2. Disseminating the details to the nance decisions, for example, reviewing a unit
individuals who need them when they need history before performing preventive mainte-
them; nance (PM).
3. Ensuring the integrity of the details, for
example, they are accurate and complete; Proper dissemination is essential. People need the
4. Making sure all the details from other right information to make decisions at a particular
parts of the organization find their way to time and place. Having operation and maintenance
the CMMS/EAM from wherever they are (O&M) manuals, drawings, specification sheets, orig-
stored or generated. inal equipment manufacturer (OEM) maintenance
bulletins and such available can avoid mistakes. Ide-
The fourfold challenge is made even more interest- ally, available means as hyperlinks on tablets so the
ing because there is very little funding to achieve tradesperson or planner can easily and immediately
these important goals. So, you must do all these get the details they need.
things and, by the way, don’t spend any money!
Often times, it seems like the fixed data in the mas-
The primary generator of data within maintenance ter file gets infected by “bugs” (data that dilutes the
is the work order. It serves to build, one incident at accuracy of the big picture) and becomes less accu-
a time, the maintenance history for each machine, rate each month. To remedy this, every time some-
department and the plant as a whole. Typical main- one touches an asset, that person should verify the
24
master file data. You want your tradespeople to check is they run the whole business, so getting payroll,
the machine ID and other information in the same purchasing, or production data should be relatively
manner medical staff check your wrist ID band before straightforward. Other systems, such as supervisory
giving you medication or performing a procedure. control and data acquisition (SCADA) or predictive
maintenance (PdM) data, might require custom de-
Campaigns to fill the master files with useful infor- signed interfaces.
mation, such as belt sizes, bills of material and power
requirements, are run by the maintenance personnel. The days of the grizzled old maintenance guy who
Other departments develop data that is essential remembers everything he or she needed to know
feed stock for maintenance decisions. One advan- about all the equipment are gone. Welcome to the
tage of enterprise resource planning (ERP) packages new generation of maintenance management.
Insight by Joel Levitt, Reliabilityweb.com
25
Operator Driven Reliability

Operator driven reliability (ODR) means different things to different organizations. There is no right or
wrong way to involve operations in maintenance or asset management activities on the company’s equip-
ment or assets.
The focus should be on using operations personnel in a way that accomplishes the goals of ODR within
the company. This puts in place a solid foundation, which is necessary for any operations involvement to
be sustainable. It is also necessary for the organizational culture to have matured.
In outlining the ODR process, there are many different steps that show maturity levels in training op-
erators about how to take care of their equipment. Equipment operator inspection and maintenance
training steps can be sequential, depending on the level of involvement the company sets as a goal. For
example:
Basic cleaning (cleaning is inspecting);
Developing permanent solutions to the sources of problems and/or contamination;
Improve the mean time to repair (MTTR) or time to perform inspection/service on the equipment;
Develop cleaning and maintenance standards; (It should be noted that these four are considered
the foundation for any ODR effort.)
Develop training for the operators to be competent when servicing/inspecting the equipment;
Plan, schedule and follow up on all operator duties, such as cleaning, inspecting and lubricating;
Organize the workplace for maximum efficiency and effectiveness;
Perform team-based maintenance and equipment management.
Communicating the intent of the key elements of ODR is critical. Too often, ODR is started without clear
goals. This leads to management desiring a reduction in the number of maintenance technicians, which
ultimately results in the failure of the ODR effort.
The levels of organizational maturity for ODR should be viewed as a journey to maturity. The organization
should value a proactive maintenance and reliability mentality. The key measure at this point is mainte-
nance resource usage. If ODR is to be successful, at least 80 percent of all maintenance resources should
be planned and scheduled each week. In addition, all equipment repair information must be recorded in
a CMMS or EAM system. This means instead of waiting for equipment-related problems to develop, the
organization is proactively eliminating or mitigating these problems. This has a dramatic impact on the
reliability and, ultimately, the capacity of the company’s assets.
26
For assets to produce efficiently, they depend on both operations and maintenance. However, in imma-
ture organizations, the relationship between operators and maintenance personnel is often adversarial.
No matter how hard maintenance personnel work, they make very little progress in maintenance and
equipment improvement because the operator’s attitude is: “I operate it – you fix it.”
If, on the other hand, operators participate in the maintenance function by becoming responsible for
some activities, maintenance goals and objectives are more likely to be achieved. This cooperative effort
allows maintenance personnel to focus their energies on technologically advanced tasks, which produce
more efficient and effective maintenance.
27
Measuring Baseline Performance

Prior to starting the WEM elements, you should identify and baseline a series of performance measures.
Potential measures are listed in Table 1. During the implementation and benefits phases of WEM, repeat-
ed measurements will allow an organization to compare its initial baseline performance with ongoing
WEM element results to gather helpful feedback on the improvements generated during the implementa-
tion and execution of WEM processes.
WEM is all about results; baseline measures compared with ongoing measures are the surest way to
demonstrate benefits clearly to management and staff. Developing and trending key performance indica-
tors (KPIs), which are key measures of performance, maintain the support necessary to be successful.
The time to collect KPIs will vary from organization to organization and differ between industries and var-
ious types of facilities and their activities, services, or missions. However, it is key to track KPIs for a given
time period to provide a representative baseline for later comparison. Trending a KPI over time is a pow-
erful way to communicate performance improvement. It is important, however, to ensure the metrics
collected are for the same process or WEM element before and after the implementation of the process
improvements. Organizations should be able to limit the number of KPIs to five or less per WEM element.
Table 1: Potential Performance Measures
WEM Metric Desire Trend Target

Preventive Maintenance (PM)
PM Schedule Compliance Increasing 100%
PM Estimate Compliance Increasing 100%
PM Cost Compliance Increasing 100%
Overdue PMs Decreasing 0%
Percentage of Reactive Work Decreasing <20%
Defect Elimination
Number of Defect Elimination
Increasing 100%
Projects Identified
Number of Defect Elimination Teams
Increasing 100%
Activated
Don't Just Fix It - Improve It Work Orders Stable 1% (1 out of 100)
Percentage of Lubrication Related
Decreasing 0%
Breakdowns
Percentage of Fastening Related
Decreasing 0%
Breakdowns
Percentage of Operator Error
Decreasing 0%
Breakdowns
Percentage of Part Error Breakdowns Decreasing 0%
Percentage of Procedure Error
Decreasing 0%
Breakdowns
28
WEM Metric Desire Trend Target

Percentage of Maintenance Labor
Increasing 100%
Costs Reported to a Work Order
Percentage of MRO Costs Reported
Increasing 100%
to a Work Order
Reactive – Decreasing Reactive <20%
Percentage of Work Distribution
Proactive - Increasing Proactive >100%
Percentage of Work Orders Planned Increasing >80%
Percentage of Schedule Compliance Increasing 95% +
Computerized Maintenance Management System (CMMS)
Percentage of Labor Hours Reported
Increasing 100%
to a Work Order
Percentage of MRO Reported to a
Increasing 100%
Work Order
Percentage of Work Orders Written
Decreasing <5%
to a Standing/Blanket Work Order
Planner to Technician Ratios Steady 1 to 15-20
Percentage of Maintenance Support
Steady 30%
to Direct Maintenance Costs
MRO-Spares Management
Service Level Steady (within range) 95% to 97%
Stock Out Percentage Steady (within range) 3% to 5%
1% of Estimated Replace-
Valuation (trending) Steady
ment Value of Asset Base
Percentage of Cost Charged to a
Steady to Decreasing <5%
Credit Card
1% to 3% of Total Inventory
Inventory Reconciliation Steady (within range)
Costs
Operator Driven Reliability (ODR)
Percentage of PMs Performed by
Steady (within range) 10% to 40%
Operators
Percentage of Operators Certified to Steady (once all tasks have
100% of All Required Tasks
Perform Maintenance Tasks been transferred)
Percentage of Work Orders Written Varies Depending on Tasks
Steady
by Operators Assigned to ODR
Dependent on Type and
Capacity Improvement Due to ODR Trending Upward to Steady
Level of ODR Activities
10% to 40% of Maintenance
Maintenance Resources Redeployed
Trending Resources Involved in PM
Due to ODR
Program
29
Developing a Maintenance Organization

Goals and Objectives of Maintenance Organizations
The goals and objectives of a maintenance organization determine the type of maintenance organization
that will be established. If the goals and objectives are progressive and the maintenance organization is
recognized as a contributor to the corporation’s bottom line, variations on some of the more conven-
tional organizational structures can be used.
These are the typical goals and objectives for a maintenance organization.
Maximize Production or Operational Throughput

Maximize production at the lowest cost, the highest quality and within the optimum safety standards. This
statement is very broad, yet maintenance must have a proactive vision to help focus its activities. The state-
ment should be tied to any corporate objectives. It can be broken down into smaller components.
Maintaining existing equipment and facilities – This activity is the primary reason for the existence
of the maintenance organization. The organization gains no advantage from owning equipment or
facilities that are not operating or functional. This component is the "keep it running" charter of
maintenance.
30
Equipment and facilities inspections and services – These programs are generally referred to as
preventive and predictive maintenance (PM and PdM, respectively). These activities increase the
availability of the equipment and facilities by reducing the number of unexpected breakdown or
service interruptions.
Equipment installations or alterations – Installing and altering equipment are generally not the
charge of the maintenance organization; they are usually performed by outside contract person-
nel. However, maintenance personnel must still maintain the equipment, so they should be in-
volved in any equipment installations or alterations.
Identify and Implement Cost Reductions

Reducing costs is sometimes an overlooked aspect of maintenance. However, a maintenance organiza-
tion can help a company reduce costs in many ways. For example, a change in a maintenance policy may
lengthen production run times without damaging the equipment. This change reduces maintenance costs
while increasing production capacity at the same time. By examining its practices, maintenance can usu-
ally make adjustments in tools, training, repair procedures and work planning, all of which can reduce the
amount of labor or materials that may be required to perform a specific job. Any amount of time gained
while making repairs translates into reduced downtime or increased availability. Downtime is more costly
than maintenance expenditures. Before making adjustments to reduce costs, studies should be conduct-
ed to show the before and after results. This quantifying of improvements builds management support
for maintenance activities.
Provide Accurate Equipment Maintenance Records

Providing accurate equipment maintenance records enables a company to accurately track equipment in
engineering terms, such as mean time between failures or mean time to repair. Success in this endeavor,
however, requires accurate records of each maintenance repair, the duration of the repair and the run
time between repairs. Larger organizations, for whom this activity produces a tremendous amount of
paperwork, typically use some form of a computerized maintenance management system or enterprise
asset management system to track this information. Nevertheless, whether or not a computer is used, all
maintenance data must be accurately tracked.
This objective seems almost impossible to achieve at times. Maintenance records are generally collected
as work orders and then must be compiled into reports showing meaningful information or trends. The
problem is finding enough time to put valuable information on each individual work order. Because exces-
sive amounts of maintenance are performed in a reactive mode, it is difficult to record events after the
fact. For example, recording how many times a circuit breaker for a drive motor was reset in one week
might seem somewhat insignificant to put on a work order. But, if the overload was due to an increased
load on the motor by a bearing wearing inside the drive, it could be analyzed and repaired before the
equipment experienced a catastrophic failure. Accurate record-keeping is mandatory if maintenance is
going to fully meet its responsibilities.
31
Collect Necessary Maintenance Cost Infor-

mation
Collecting necessary maintenance cost information en-
ables companies to track engineering information. For
example, by using lifecycle costing information, compa-
nies can purchase assets with the lowest lifecycle costs,
rather than lowest initial costs. In order to track overall
lifecycle costs accurately, all labor, material, contracting
and other miscellaneous costs must be tracked accu-
rately at the equipment level. This tracking is primarily
an activity for the maintenance department.
In addition to lifecycle costing, there is the need for maintenance budgeting. If accurate cost histories
are not collected, how can the manager budget know what next year's expenses will or should be? Main-
tenance managers cannot simply say to plant management, "We want to reduce maintenance labor by
10 percent next year," when they don't really know how labor resources were allocated this year. Also, if
labor figures are only available in dollar amounts, the differences in pay scales may make it difficult to de-
termine how much labor was used in total hours by craft. Therefore, the information must be collected
both in dollars and in hours by craft.
Where is this information collected? Collecting the cost information is again tied to work order control.
Knowing the hours spent on the work order multiplied by the labor rates of the individuals performing
the work gives a more accurate calculation of the labor used for the work order. Adding up these charges
over a given time period for all work orders provides the total labor used. Adding up the hours spent
by each craft provides an even clearer picture of the labor resources needed. Material costs also can be
determined by tracking to each work order the parts used on the job. Multiplying the number of parts
by their dollar value obtained from stores or purchasing calculates the total material dollars spent for a
given time period. Contractor and other cost information also must be collected at a work order level.
Each work order form should have the necessary sections for filling in this information. Only by tracking
the information at the work order level can you roll up costs from equipment to line to department to
area and, finally, to total plant. Collecting the information at this level also provides cost information for
equipment types, maintenance crafts and cost centers. By utilizing the data gathered through the work
order, detailed maintenance performance indicators can be developed.
Optimize Maintenance Resources

Optimizing maintenance resources includes eliminating waste through effective planning and scheduling
techniques. In reactive maintenance organizations, up to one third of maintenance expenditures are often
wasted. By optimizing maintenance resources, organizations improve their effectiveness in eliminating
this waste. For example, if an organization has a maintenance budget of $1 million and operates in a reac-
tive mode, it is possible that the organization is wasting $300,000. When 80 to 90 percent of all mainte-
nance activities are planned and scheduled on a weekly basis, there is very little waste to the maintenance
process. The goal for a reactive organization is to achieve this level of proficiency.
32
Optimizing maintenance resources also has an effect on maintenance manpower. For example, with good
planning and scheduling practices, a reactive maintenance organization may increase the wrench time of
their craft technicians from 25 percent to as much as 60 percent. This reduces the amount of overtime
or outside contracting that an organization currently utilizes, reducing the overall maintenance cost.
These types of reductions, while improving service, are essential for optimizing the present resources.
Optimizing maintenance resources can only be achieved by good planning and scheduling practices.
Minimize MRO Inventory On Hand

Minimizing inventory on hand helps maintenance organizations eliminate waste. Approximately 50 percent
of a maintenance budget is spent on spare parts and material consumption. In reactive organizations, up to
20 percent of spare parts costs may be waste.
As organizations become more planned and
controlled, this waste is eliminated. Typical
areas of waste in the inventory and purchasing
function include:
Stocking too many spare parts;
Expediting spare part delivery;
Allowing shelf life to expire;
Single line item purchase orders;
Vanished spare parts.
It is important for the maintenance organization to focus on controlling spare parts and their costs.
Optimize Capital Equipment Life

Optimizing the life of capital equipment means maintaining it so it lasts 30 to 40 percent longer than
poorly maintained equipment. The maintenance department's goal is to keep the equipment properly
maintained to achieve the longest lifecycle. A preventive maintenance program designed for the life of
the equipment is key to obtaining a maximum lifecycle. The maintenance department then needs to
perform the correct level of preventive maintenance, performing enough maintenance, but without per-
forming excessive maintenance.
One way to identify problems in this area is to examine new equipment purchases. Are equipment purchas-
es used to replace equipment in kind? If so, could the equipment purchase have been deferred if proper
maintenance had been performed on the older equipment? If long lifecycles are not being achieved, then
the proper level of maintenance is not being performed and maintenance tasks should be revised.
Minimize Energy Usage

Minimizing energy usage is a natural result of well maintained equipment, which requires six to 11 percent
less energy to operate than poorly maintained equipment. These percentages, established by interna-
33
tional studies, indicate that maintenance organizations would benefit from constantly monitoring energy
consumption in a plant.
Most plants and facilities have equipment that consumes considerable energy if not properly maintained.
For example, heat exchangers and coolers that are not cleaned at the proper frequency consume more
energy. HVAC systems that are not properly maintained require more energy to provide proper venti-
lation to a plant or facility. Even small things can have a dramatic impact on energy consumption. For
example, equipment with a poor maintenance schedule will have bearings without proper lubrication or
adjustment, couplings not properly aligned, or gears misaligned, all of which contribute to poor perfor-
mance and require more energy to operate. The key to achieving this objective is having good preventive
and predictive maintenance schedules.
Environment, Health and Safety Compliance

Environment, health and safety (EH&S) compliance is an ever growing and changing part of a mainte-
nance reliability department’s responsibility. A well designed, properly managed maintenance reliability
organization helps assure compliance with U.S. regulatory agencies, such as the Occupational Safety and
Health Administration (OSHA), the Environmental Protection Agency (EPA) and the Food and Drug Ad-
ministration (FDA). The preventive maintenance and equipment history tracking functions are critical to
achieving regulatory compliance.
While the goals presented thus far do not form a comprehensive, all-inclusive list, they highlight the
impact a proactive maintenance organization can have on a company. Maintenance is more than a “fix it
when it breaks” function. Unless the maintenance organization works with a proactive list of goals and
objectives, it will always be suboptimized.
Organization Structures
The second phase of developing a maintenance business is proper organizational structures. The two
aspects to proper organizational structures are:
Geographical,
Reporting.
Geographical Organizational Structures

Maintenance organizations may be organized geographically in three basic ways: centralized, area and
combination.
" The rule of thumb is that central organizations are more

effective in smaller, geographically compact plants, area
organizations usually perform well in midsize plants and
combination organizations are best for large plants. "
34
Centralized Organization
In a centralized organization, all personnel report to one central location from which they are
directed to work locations. A central organization provides the benefit of more extensive use of
personnel. Better utilization is realized because technicians can be directed to the highest priority
work no matter where its location in a plant or facility. If properly controlled, a central maintenance
organization reduces the amount of nonproductive time for maintenance.
However, the disadvantage of a central orga-

nization becomes more noticeable in large
plants. The disadvantage is slower response
time caused by increased travel time. If there is a
problem in one area of the plant and workers are
in other areas of the plant, it takes time to find
them, redeploy them, correct the problem and
then return them to their original assignments.
Organization by Area
The second organizational scheme focuses on
area. With this structure, maintenance person-
nel are assigned to specific areas within a plant or facility. However, a small group of maintenance
personnel is always kept in a central location for data collection, analysis, crew scheduling, work
planning, etc. In an area configuration, organizations usually respond in a timely manner because
maintenance personnel are close to the equipment.
The disadvantage of an area organization is finding enough work to keep all maintenance personnel
in each area busy. The opposite problem can occur when excessive equipment breakdowns exceed
the capabilities of the labor pool within an area. Thus, at one time, one area may have people engaged
in low-level activities, while other areas have equipment breakdowns waiting for personnel. The area
concept makes it difficult to move people from one area location to another due to specialty skills or
distance.
One of the biggest advantages of area organizations is they help instill in maintenance workers a sense
of ownership of the equipment. In area organizations, maintenance personnel usually work the same
schedule as operations and production personnel. This schedule allows maintenance to develop bet-
ter lines of communication with operations and production. Maintenance and production personnel
come to understand each other’s strengths and weaknesses, and these are taken into consideration
during the work cycle. Because both maintenance and production want the equipment to run, they
tend to work more closely together to ensure the equipment continues to run. The equipment is
more likely to be operated correctly and maintained at higher levels than typically found when mainte-
nance is a centralized organization.
35
Combination Organization
In a combination organization, some maintenance personnel are assigned to areas and the remaining
personnel are kept in a central location. The area personnel care for routine maintenance activities,
build relationships with operations personnel and develop ownership. The central group supports the
area groups during shutdowns, outages, major maintenance, etc.
Which is the best arrangement? The rule of thumb is that central organizations are more effective in
smaller, geographically compact plants, area organizations usually perform well in midsize plants and
combination organizations are best for large plants. When developing any maintenance organization,
one must give the plant’s size and organization’s geographical structure careful consideration. If one uses
the wrong geographical structure, excessive staffing may be required to properly service the equipment.
If a central organization is used to service a large plant, the travel time to get to the equipment and the
resulting downtime may create havoc, with production schedules constantly disrupted.
Some organizations will find this organizational overview too basic. Yet, these are the same organiza-
tions that are continually changing structures and redeploying resources. If an organization is changing
structures frequently, then it should be able to show the business plan for the restructuring, including
projected labor savings and projected inventory savings. These savings should be plotted against the cost
of restructuring, including shop remodeling, new tools and equipment costs, to obtain a return on invest-
ment for the restructuring. If this type of return on investment analysis cannot be performed, it is likely
geographical restructuring is unnecessary.
Reporting Structures
Another way to look at maintenance organizations is to consider their reporting structures. Maintenance
organizations can use a variety of structures, including the production-centric model, the engineer-
ing-centric model and the maintenance-centric model.
The Production-Centric Model

In the production- or operations-centric organization, maintenance resources are deployed by the
production or operations managers. At first glance, this arrangement might seem to be a good idea.
In reality, it rarely works because very few production or operations managers have the necessary
technical skills to deploy maintenance resources properly. These cases usually lead to less use of
the maintenance workforce and, in turn, more equipment downtime. When maintenance resources
report to production or operations, maintenance generally deteriorates into the role of “putting out
fires” or “fix it when it breaks.”
Another consideration when assessing a production-centric reporting structure is the compen-

sation structure for supervisors. In most cases, production or operations supervisors are reward-
ed for meeting some level of production throughput or a capacity target number. Because their
compensation is based on output, they have little incentive to perform good maintenance on their
equipment. In most cases, good maintenance practices are sacrificed to meet production targets
36
under a production-centric reporting structure. However, if equipment availability or lifecycle

costing numbers are included as part of their compensation, then maintenance personnel may be
properly managed in this kind of environment.
The Engineering-Centric Model

Commonly found today, the engineering-centric organization has maintenance reporting to engi-
neering. Thus, construction engineering, project engineering and maintenance all have the same
supervision, typically the plant engineer. On the surface, this arrangement appears workable. How-
ever, it typically leads to problems, with the main ones associated with projects.
Typically, the performance of engineering supervisors is assessed based on their completing projects
on time and under budget. If a project gets behind, maintenance resources are often diverted from
preventive maintenance and other routine tasks to project work. Although assigning maintenance
resources to a project may help complete the project on time, existing equipment may suffer from a
lack of maintenance.
Then, a more long-term problem develops. The attitude of the workforce is affected. Maintenance
personnel enjoy working on projects because all the equipment is new. Over time, they tend to
develop less of a maintenance attitude and more of a project attitude. This shift in attitude leads to
their wanting to perform less maintenance work and more replacement work. Maintenance per-
sonnel become, in effect, parts replacement specialists, rather than maintainers or repairers. This
situation can lead to excessive inventory and new equipment purchases.
37
The Maintenance-Centric Model

In the maintenance-centric model, maintenance reports to a plant or facilities manager at the same
level as production and engineering. This model provides a balanced approach, with the concerns
of all three organizations weighed equally by the plant manager.
All maintenance personnel in the plant report through a maintenance manager. If the organization
is larger, there may be levels of supervisors reporting to the maintenance manager. Maintenance
staff functions, including planners and maintenance engineers, also report to the maintenance
manager. Construction and project engineers report to the engineering manager, but no mainte-
nance resources are deployed by engineering. Also, all production and operations personnel report
through the production and operations manager, respectively, but no maintenance resources are
under the control of the production or operations manager. This structure is optimum for organi-
zations learning maintenance controls and philosophies. It is a good structure to start with and can
be developed to support world-class initiatives, such as cross-functional teams and operator-based
maintenance activities.
Whatever the structure of a maintenance organization — and structure does vary from organization
to organization — it must have the proper focus. Maintenance is a technical discipline and mainte-
nance personnel are the stewards of the technology in a plant or facility. If the maintenance organi-
zation does not have a technical focus, the assets and equipment will be suboptimized. Therefore,
if maintenance is sacrificed to achieve short-term production goals or to support engineering con-
struction projects, the maximum return on investment in the existing assets is never achieved. This
situation weakens a company’s competitive position in its marketplace. If any organizational redesign is
proposed for maintenance, both short-term and long-term issues must be examined.
How to Learn to Cycle

R emember as a young child when you wanted to ride your bicycle without training wheels just like
the other children your age? Despite falling a bunch of times, you persevered until you eventually
succeeded. As an adult, you probably still feel the same intrinsic motivation you felt as a child when
achieving an expected outcome. It’s a feeling you’ll experience as you improve your asset man-
agement process.
This document provides you with valuable best practices on planning and scheduling.
The planning, scheduling and execution process is the engine of the asset manage-
ment process. It is the only place in the process where people actually “touch” the
installation and where they influence its performance. So, it is important to have
an efficient and effective maintenance execution engine since it is the basis for
starting any asset performance improvement.
But how can you actually put these into practice?

38
People-Centered Approach lem that needs to be solved. In other words, it’s

Regardless of the common belief among the in- a cure for a disease people don’t feel they have.
dustry of operating in standardized organizations, This is why the concept of a shared problem/chal-
the reality is that standards, models and tools are lenge is crucial to start a change. Therefore, any
applied differently in each line of business and change approach needs to start by tapping into
function across the country, region and global people’s intrinsic motivation.
boundaries.
A people-centered approach is started by tapping
Just asking staff to replicate or adopt best prac- into one or more factors (blue boxes) shown in
tices is no guarantee for success and often gener- the model in Figure 1. Unfortunately, this, in itself,
ates wrong behaviors or leads to applying wrong is not sufficient to be successful. More enabling
solutions to problems. It implies there is a prob- factors (gray boxes) also play an important role.
Powerful team
Active support Working

from management systematically
People see People understand

the benefits the importance
Figure 1: People-centered
People-centered approach model Strong urgency
approach for change
People using
tools & methods
Learning-oriented All people in the

approach process involved
Here’s how the best practice or change you want to implement from the blue boxes in the model can
convince people of the enabling factors in the gray boxes:
If you don’t start, you don’t know – People start using the tools and apply the methods.
What’s in it for me, my team, my organization – People see and experience the benefits.
Why do we need to do things differently – People understand the importance.
These methods can help asset owners continuously improve their asset performance.
Insight by Harm-Jan Smit, Stork Asset Management Consultancy

39
Roles and Responsibilities

In order for maintenance organizations to be effective, certain roles and responsibilities must be defined
and assigned. While it is beyond the scope of this guide to consider all possibilities, there are general
guidelines that can be used. Although an organization may not use each of the individual job titles listed
in this section, each of the task lines must be assigned. Thus, an organization may not specifically have
a first-line maintenance foreperson or supervisor who has a responsibility for each individual line item.
Nevertheless, the line item task descriptions are essential if maintenance is to be managed and, ultimate-
ly, the company’s assets cared for.
First-Line Maintenance Foreperson, Supervisor, or Coach
These tasks are typically the responsibility of a first-line or frontline maintenance foreperson, supervisor,
or coach.
1. Directs the maintenance work force and provides on-site expertise.

When maintenance craft workers are working on an assignment and have questions or need clarifica-
tion about how to perform a task, the first-line maintenance foreperson, supervisor, or coach should
be able to provide the guidance. These first-line maintenance personnel are also responsible for mak-
ing individual job assignments and tracking the progress of individual craft assignments.
2. Ensures work is accomplished in a safe and efficient manner.

The first-line maintenance foreperson, supervisor, or coach makes sure each craft worker under his or
her responsibility works safely and is provided the information, tools and direction to work efficiently.
3. Reviews work planning and scheduling with the planner.

Another responsibility of the first-line maintenance foreperson, supervisor, or coach is providing
feedback to the maintenance planner to ensure job plans are efficient and effective and that schedul-
ing is accurate.
4. Ensures quality of work.

While most maintenance craft workers will perform quality work, on occasion they are pressured to
take shortcuts. The first-line maintenance foreperson, supervisor, or coach is there to ensure workers
have the proper time to do a quality job the first time.
5. Ensures equipment availability is adequate to meet the profit plan.

Quite simply, this task assigns responsibility for the uptime of equipment or assets to the first-line
maintenance personnel.
6. Works with plant or production supervision to ensure first-line maintenance is be-

ing performed by operators.
If the production or operations group is performing first-line maintenance on their equipment, the
first-line maintenance foreperson, supervisor, or coach has a responsibility to ensure the work is real-
ly being performed and is being performed safely and to the appropriate standards.
40
7. Verifies the qualifications of hourly personnel and recommends training as needed.

When making individual work assignments and observing craft workers performing those assign-
ments, the first-line maintenance foreperson, supervisor, or coach should be able to recognize train-
ing needs. As these training needs are identified, first-line maintenance personnel ensure the appro-
priate training is provided as required.
8. Enforces environmental regulations.

As part of the management team, the first-line maintenance foreperson or supervisor ensures all
maintenance craft workers observe all environmental regulations. This includes following appropriate
documentation, work practices and procedures.
9. Focuses downward and is highly visible in the field.

The first-line maintenance foreperson or supervisor is required to manage maintenance craft work-
ers at least six hours per day, with no more than two hours per day spent on paperwork or meetings.
This is known as the 6/2 rule. It is not cost-effective to have the first-line maintenance foreperson or
supervisor performing clerical paperwork as the major part of his or her work.
10. Champions proactive maintenance versus reactive maintenance.

The first-line maintenance foreperson or supervisor encourages all production or operations per-
sonnel to turn in work to be planned and scheduled. Doing this is designed to prevent production
or operations personnel from requesting work in a “do it now” or reactive mode and helps ensure
maintenance is planned, scheduled and performed in the most cost-effective manner.
11. Administers the union’s collective bargaining agreement.

As a management representative, the first-line maintenance foreperson or supervisor is responsible
for seeing that the components of any collective bargaining agreement are carried out.
12. Monitors the CMMS.

The first-line maintenance foreperson or supervisor confirms all data collected by assigned hourly
employees is accurate and complete when being entered into the CMMS, if the company uses one.
13. Implements preventive and predictive maintenance programs.

The first-line maintenance foreperson or supervisor is responsible for ensuring craft workers are
qualified and the crew has the skills necessary to perform the appropriate preventive and predictive
maintenance tasks. In addition, first-line maintenance personnel and the crew have a responsibility to
improve the preventive and predictive maintenance program constantly. This responsibility may range
from improving the individual steps on a preventive maintenance task to implementing new technol-
ogy for predictive maintenance.
Each of these 13 task items must be assigned and performed if maintenance is to be properly supervised.
The question each organization must ask is: Who has the responsibility for each of these task items?
41
The Maintenance Planner
Another individual in a maintenance organization is the maintenance planner. The maintenance planner
is different from a supervisor or foreperson. A supervisor manages the maintenance craft workers,
whereas the planner provides logistic support to them. Here are the typical responsibilities for a main-
tenance planner:
1. Plans, schedules and coordinates corrective and preventive maintenance activities.

A planner accomplishes this task by studying and managing work requests; analyzing job require-
ments; and determining materials, equipment, and labor needs, such as blueprints, tools, parts and
craft workers’ skill requirements, in order to complete the main-
tenance economically and efficiently. The maintenance planner is
the logistics person, responsible for removing nonproductive time
from the maintenance workforce. The planner’s basic responsibil-
ity is to ensure that when maintenance work is ready to be per-
formed, there will be no delays during the execution of the work.
2. Develops a weekly schedule and assists the first-line

maintenance foreperson or supervisor in determining job
priorities.
The planner is the one who makes changes and adjustments to the schedule and work package after
reviewing them with the first-line maintenance foreperson or supervisor. The planner maintains a
complete and current backlog of work orders and as work is requested, the request is given to the
planner. The planner examines the request, plans the job and reviews the job with the foreperson or
craft workers. Once the job is planned and approved, it is placed on the schedule. The planner re-
views the weekly schedule with the first-line maintenance foreperson or supervisor before the start
of the work week. Change recommendations from the first-line maintenance foreperson or supervi-
sor are incorporated into the schedule, which is then published by the planner.
3. Ensures CMMS software data files are complete and current.

The planner does this task by gathering equipment and associated stores information for the entire
plant or facility. The planner develops standardized codes for the equipment, stores and task craft
assignments for all maintenance activities. In short, the planner is the keeper of the CMMS software
data files. This individual constantly reviews information being inputted into the CMMS for accuracy
and completeness.
4. Assists with stores and purchasing functions, where needed.

At smaller sites, where the planner does not have a full-time workload — typically planning for 15 to
20 craft workers — the planner may assist with stores and purchasing functions. For example, this in-
dividual may be involved in controlling inventory by ordering, issuing, returning, adjusting and receiv-
ing stores items.
42
5. Identifies, analyzes and reviews equipment maintenance problems with mainte-

nance engineering.
The planner revises the maintenance management program as necessary to improve and enhance
plant and facilities operations. Since the planner maintains the work order system, any repetitive
problems should be apparent. The planner then reviews repetitive problems with maintenance engi-
neering to find a resolution. At this level, the resolution typically will be adjustments in the preventive
or predictive maintenance program. By adjusting these programs, the planner provides a solution to
the problem. If the problem is not related to the preventive or predictive maintenance program, then
the planner refers it to the maintenance engineer for resolution.
6. Assists in educating operations or facilities personnel in maintenance management.

Because the planner is so well versed in maintenance tools and techniques, this individual should par-
ticipate in training other company employees in maintenance management fundamentals.
If an organization does not have a planner, one has to ask: Who, then, is responsible for each of these task
items? If maintenance is to be performed economically and efficiently, each of these task items must be
assigned. In many organizations, a common mistake is to have the first-line maintenance foreperson or
supervisor supervise and plan. However, when a first-line maintenance foreperson or supervisor has a
full load (typically eight to 12 craft workers), that person will not be able to properly supervise and plan.
Because a first-line maintenance foreperson or supervisor cannot do both jobs correctly, maintenance
will not be performed as efficiently and effectively as it could be.
Up to this point, the focus has been on managing the maintenance workforce and providing the support
needed to make them efficient and effective. Next, the focus is on managing assets or equipment. If the
first two task lists are properly assigned and completed, then the organization is collecting data through
the work order system and the CMMS. The next task list entails making this data effective in the mainte-
nance of management.
Maintenance Reliability Engineer
These tasks are typically the responsibility of the maintenance reliability engineer.
1. Ensures equipment is properly designed, selected and installed based on a lifecycle

philosophy.
Many companies today consistently purchase equipment based on the low bid. Quite simply, if they
are not performing the tasks listed for the maintenance foreperson and maintenance planner, the
company lacks the data to purchase equipment based on the lifecycle philosophy. Without the data,
the purchasing and accounting departments will purchase the lowest cost items, which may or may
not be the best long-term decision. Thus, collecting maintenance cost data is important.
2. Ensures equipment is performing effectively and efficiently.

This task is different from tracking uptime. It means ensuring the equipment, when running, is at
design speed and capacity. When focusing only on maintenance, many companies set goals in terms
43
of uptime. However, these companies do not

realize the equipment may be running at only
50 to 60 percent of capacity in the realm of
maintenance. Thus, understanding design ca-
pacity and speed ultimately is more important
than measuring uptime.
3. Establishes and monitors programs

for critical equipment analysis and condition monitoring techniques.
The maintenance engineer is responsible for ensuring appropriate monitoring techniques are used
for determining equipment condition. This information is then given to the planner so effective
overhaul schedules can be determined. These techniques also help eliminate unplanned maintenance
downtime.
4. Reviews deficiencies noted during corrective maintenance.

As mentioned in Task #5 for the maintenance planner, the maintenance engineer and planner periodi-
cally review equipment maintenance records. If they observe continual problems with the equipment
that do not fall under the preventive or predictive maintenance programs, then the maintenance
engineer is responsible for finding solutions to the problems.
5. Provides technical guidance for the CMMS.

The maintenance engineer also reviews the data in the CMMS and makes recommendations about
the types and amount of data being collected. The maintenance engineer may recommend problem,
cause and action codes for properly tracking maintenance activities.
6. Maintains and advises on the use and disposal of stock items, surplus items and
rental equipment.
The maintenance engineer reviews spare parts policies for plant equipment to ensure the right parts
are in stock and in the right amounts.
7. Promotes equipment standardization.

The maintenance engineer helps ensure the company is purchasing standardized equipment. Equip-
ment standardization reduces the number of spare parts required and the amount of training neces-
sary. It also reduces the overall maintenance budget. Standardization requires data from the CMMS. If
the organization is not collecting data via the maintenance foreperson and maintenance planner, then
the maintenance engineer will not have the data required to implement equipment standardization.
8. Consults with maintenance technicians on technical problems.

The maintenance engineer consults at a technical level with maintenance craft workers concerning
equipment or work-related problems. This consultation may be about advanced troubleshooting or
even equipment redesigns.
44
9. Monitors new tools and technology.

The maintenance engineer is responsible for staying abreast of all the tools and technology available
in the maintenance marketplace. This is done by reading books and magazines, attending conferences
and networking with other maintenance engineers to gather this data.
10. Monitors shop qualifications and quality standards for outside contractors.
The maintenance engineer ensures that all outside contractors are qualified and the work performed
by them is of the proper quality.
11. Develops standards for major maintenance overhauls and outages.

The engineer is responsible for examining outage and overhaul plans for completeness and accuracy.
This individual then makes appropriate recommendations to the planner for adjustments in the plans
or schedules.
12. Makes cost-benefit reviews of the maintenance programs.

Periodically, the maintenance engineer reviews maintenance programs for his or her areas of respon-
sibility and determines whether the work should be performed by operators, maintenance craft work-
ers, or outside contractors. In addition, the engineer reviews what work needs to be done, what work
can be eliminated and what new work needs to be identified and added to the maintenance plan.
13. Provides technical guidance for the preventive and predictive maintenance programs.
The engineer periodically reviews the preventive and predictive maintenance programs to ensure the
proper tools and technologies are being applied. This review is typically done in conjunction with the
maintenance planner.
14. Monitors the competition’s activities in maintenance management.

The engineer is responsible for gathering information about competitors’ maintenance programs.
This information may come from conferences, magazine articles, or peer-to-peer discussions and
should be reviewed for ideas on potential improvements in the company’s maintenance program.
15. Serves as the focal point for monitoring performance indicators for maintenance
management.
In addition to developing performance indicators for maintenance, the engineer is responsible for
reviewing them with the maintenance manager.
16. Optimizes maintenance strategies.

The maintenance engineer examines maintenance strategies to ensure they are all cost-effective.
17. Responsible for analyzing equipment operating data.

The maintenance engineer ensures equipment is operating as close to design parameters as possible.
Doing so makes certain that there is no wasted production from less than optimal equipment capacity.
45
The engineer is a key individual if a company is going to maximize asset utilization. A maintenance engi-
neer is different from a project engineer. Whereas a project engineer concentrates on new construction
and new equipment, a maintenance engineer concentrates on optimizing existing equipment or assets.
Ultimately, it is the maintenance engineer’s goal to ensure the company gets as much or more production
from its assets than any other company with the same kinds of assets.
Maintenance Manager
Next, is a description of the tasks for the maintenance manager or the individual responsible for manag-
ing all the maintenance functions of a company.
1. Manages the entire maintenance function, including the planning, supervising and
engineering staffs.
This one individual has the responsibility for all maintenance activities within the company. The main-
tenance planners, supervisors and maintenance engineers report directly to the maintenance manag-
er. This structure produces one-point accountability for the entire maintenance program.
2. Coordinates closely with counterparts in other in-house organizations.

The maintenance manager coordinates and communicates closely with other organizations to ensure
company objectives are being met. These include production or operations, project or construction
engineering, accounting, purchasing and other organizations. As a result, the organization maintains
its focus on optimizing the company’s assets.
3. Promotes proper understanding of the maintenance function to other organizations.

The maintenance manager educates other organizations within the company regarding the value of
maintenance management. This education is intended to help other organizations understand the
impact their functions have on the maintenance organization’s efforts to properly maintain the com-
pany’s assets.
4. Ensures all supervisors, planners, technicians and maintenance engineers are prop-
erly educated and trained.
To be able to fulfill their responsibilities, other maintenance personnel need to be educated and
trained. Making sure education and training take place is one of the most overlooked responsibilities
of the maintenance manager. Technology is constantly changing, so the skills of the entire mainte-
nance organization must be kept up-to-date if it is to fulfill its responsibilities correctly.
5. Takes responsibility for planning, cost control, union activities, vacation planning, etc.
The maintenance manager is responsible for all the logistics and personnel activities of the mainte-
nance organization. This individual also administers the maintenance budget and ensures the mainte-
nance function meets its budgetary requirements.
46
6. Has responsibility for delegating assignments to the appropriate personnel.

The maintenance manager is responsible for making sure the appropriate personnel are in the proper
staff positions within the organization. In other words, the manager has the responsibility to see that
the organization is staffed correctly and operates smoothly.
In many cases, the maintenance manager starts out as a maintenance technician. As the technician's skills
increase, the next level up is technical lead. As a technical lead, the individual works with other technicians
to help improve their skills and manages certain work activities under the direction of the supervisor.
As skills continue to mature, the technical lead progresses to either maintenance supervisor or main-
tenance planner. As a maintenance planner, managerial and technical skills are of primary importance,
while as a supervisor, managerial and leadership skills are of primary importance. After promotion to the
supervisor level, progression continues upward in management to a superintendent or even maintenance
manager.
In the progression to management, technical skills become less and less important and managerial and
business skills become increasingly important. This progression highlights a typical problem. In many
organizations, the maintenance manager is evaluated based on technical skills. Instead, the maintenance
manager should be evaluated on business skills. As a manager of maintenance, the individual is respon-
sible for an extremely large and important business. This requires managerial and business skills to a
greater degree than technical skills. For this reason, it is extremely important for an individual making the
progression toward a maintenance manager's role to receive managerial and business skills training. Only
with that training can the individual be successful as a maintenance manager and truly capable of running
a maintenance business.
Maintenance Staffing Options

Staffing is an important component of any maintenance organization. Four methods are commonly used
to staff a maintenance organization.
Complete In-House Staff

Having a complete in-house staff is the tradition-
al approach in most U.S. companies. Under this
approach, the craft technicians who perform
maintenance are direct employees of the compa-
ny. All administrative functions for each employ-
ee, as well as salary and benefits, are the respon-
sibility of the company.
Combined In-House/Contract Staff

A combined in-house/contract staff became a more common approach to maintenance in the 1980s.
The in-house staff performs most of the maintenance, while contractors perform certain maintenance
tasks, such as service on air conditioners, equipment rebuilds and insulation. This method can reduce the
amount of staff required for specific skill functions. If contract personnel are not required full time, this
approach can contribute even further savings.
47
Contract Maintenance Staff

A contract maintenance staff approach combines the company’s supervisors with contract employees.
This method, common in Japan, is gaining popularity in the United States. The contractor provides prop-
erly skilled individuals, removing the burden of training and personnel administration from the company.
The downside of this approach is not having the same employees all the time. Contract employees may
have less familiarity with the equipment, but the interaction between in-house supervision and contract
personnel can help to compensate.
Complete Contract Maintenance

A complete contract maintenance staff includes all crafts personnel, planners and supervisors. Super-
visors generally report to a plant engineer or plant manager. This approach eliminates the need for any
in-house maintenance personnel. Although not yet popular in the United States, this program, coupled
with an operator-based PM program, can be cost-effective and a valid alternative to a conventional main-
tenance organization.
In reality, any of these staffing options can work. In most companies, however, it is difficult to manage
a contract work force. While some companies claim financial benefits from contracting out all mainte-
nance activities, those benefits are often imaginary. The perceived benefits occur because the contractor
can manage its maintenance workforce, whereas the company cannot manage its own. When compa-
nies claim large savings from contracting maintenance, it is typically because they were not efficient and
effective in the way they managed their maintenance. After all, the same work gets done. But how can a
contractor be cheaper and more cost-effective than in-house? Only by planning, scheduling and removing
waste from the maintenance process. Could not the company then, with an internal or in-house work-
force, achieve the same cost levels?
Another problem comes to light when one considers the typical attitudes companies have toward con-
tractors. Most companies do not partner well with their contractors, treating them as disposable enti-
ties. If a contractor makes a mistake, the company cancels the contract and hires a new contractor. This
attitude makes it difficult for a contractor to partner with a company. If companies today are going to
use contractors for maintenance, they must learn to work closely with them and develop a partnering
arrangement.
A partnering arrangement must be developed to a point where the contractor feels valued. Many con-
tract firms today believe their technical input to a client company is not valued. In many cases when
doing a maintenance repair, contract personnel discover other problems. The client company too often
assumes the contractor is just trying to create work and disregards the contractor’s input. In reality, the
contractor is trying to save the company money. This example shows why poor collaboration with a con-
tractor is an expensive way to do maintenance.
Maintenance Organizational Staffing

Staffing of a maintenance organization should be divided into two separate groups: craft technicians and
support personnel.
48
Craft Technicians
Craft technician staffing is determined strictly by the backlog of work for each craft. In a multi-skilled en-
vironment, the backlog may be the total maintenance workload. The craft backlog is the amount of work
documented on the work order form as needing to be performed by the craft. The only work counted in
the backlog is work that is ready to be scheduled or can be performed at the present time. This removes
work that is waiting on engineering support, spare parts, approval, shutdowns, outages, or rebuilds.
The formula for calculating the backlog is:
Total planned hours ready to schedule

Backlog (in weeks) =
True craft capacity
True craft capacity is the total hours scheduled for the craft for a week minus schedule interruptions.
Schedule interruptions include average hours spent on emergencies, absenteeism, vacations and routine
or, in some cases, preventive maintenance work. This leaves the total hours the craft will actually deduct
from the backlog. Here is an example of this process:
Total employee hours scheduled for next week (10 techs x 40 hours) 400 hours
Total overtime to be worked (average for last 3 months) 40 hours
Total contractor labor (2 techs x 40 hours) 80 hours
Gross labor hours available 520 hours
Average emergency work (50% for the last 3 months) 260 hours
Average absenteeism/week 10 hours
Average vacation hours/week 10 hours
Average routine (non-backlog) hours/week 40 hours
Total deductions 320 hours
Gross minus deductions = 200 hours
These 200 hours represent what can realistically be expected to be completed from backlog work for the
week. This is the number that should be used to determine the true backlog. Assuming 2,000 hours in
the backlog, the calculation would be:
Example 1 Example 2
Backlog in weeks = 2,000 hours 2,000 hours

520 hours 200 hours
49
In Example 1, the craft backlog is 3.8 weeks. But, it is impossible to complete the work in backlog given the
constraints placed on the gross craft time available.
In Example 2, the craft backlog is 10 weeks, which is a realistic time period to complete the work. Normal
maintenance backlogs are optimized when they are kept in the two to four week range. Some companies
will allow a two to eight week backlog for a craft. But, the greater the number of weeks in backlog, the
longer the requesting department has to wait on its work request. If the backlog gets too large, the temp-
tation is to request the work on an emergency basis, circumventing the planning and scheduling process,
and thereby increasing the cost to do the work.
If a backlog is kept in the two to four week range, the maintenance organization is easier to manage and
considered “right-sized.” The craft backlog can best be illustrated using a tank as an example. The tank
has an inlet and an outlet. The inlet represents the work coming into the backlog, while the outlet is the
work being completed from the backlog. The backlog is raised when more work is generated than work
completed. The backlog is lowered when more work is completed than is generated. From a managerial
perspective, the control of the backlog level is achieved by the work being completed (the outlet). The
maintenance department has no control over the amount of work that is incoming (inlet). The incoming
work is generated by preventive and predictive inspections, operational requests, project activities, etc.
The level of the backlog (tank) is controlled by the outlet or the applied resources. If the backlog begins
to increase, additional resources in the form of overtime or additional contract labor can be applied
(similar to opening the tank outlet). If the backlog begins to decrease, then resources can be decreased
(similar to closing the valve on the tank). By proper management of resources, the backlog (tank) level
can be controlled.
If backlogs begin to increase, overtime and contract labor may be used to determine if the increase is
temporary. This is the same as opening the valve on the outlet of the tank. If the increase is a permanent
trend, new craft technicians may have to be hired. If the backlog decreases within two weeks, the over-
time should be eliminated and, perhaps, contract labor decreased or eliminated. If the backlog contin-
ues to decline, staffing may need to be examined and employees repositioned. Under no circumstances
should maintenance labor be increased or decreased without accurate backlog figures. Changes made
independently of the backlog are arbitrary and dangerous to the effectiveness of the maintenance orga-
nization and, ultimately, to the corporation.
Backlog Problems
The first problem with using backlogs to manage maintenance department staffing is proper iden-
tification of work that needs to be performed by the maintenance organization. The maintenance
department is staffed based on identified, not actual, work. For example, if someone today per-
formed an equipment walk down throughout your entire plant, how much work could be identified
that needs to be done, but is not yet recorded? Hundreds, if not thousands, of hours of work may
need to be performed. This unrecorded work, along with the previously described factors, leads to
underestimating the backlog and, ultimately, insufficient staffing of the maintenance department.
50
The organization would revert to a reactive condition because current staff can never accomplish
the required work in a proactive mode.
Another common practice in industry further compounds the backlog problem. This practice,
which is identified by many companies as a backlog purge, occurs when all small jobs are removed
from the backlog or deferred to another time. The jobs are those perceived as noncritical that can
be done at another time. This is a mistake! Work should be identified and performed before it be-
comes critical. Although the attitude is, "It's only a small job, don’t worry about it," over time, small
jobs become big jobs. In reality, then, the organization is saying, “We only want to work on big jobs,”
or “We will wait until it becomes a critical problem before we address it.”
Backlog purges are used by companies to justify downsizing or reductions in staff. It would be quite
unusual for any company to defer or cancel small orders from customers or make them wait until
after the company fills the big orders before accepting and running the small orders. The parallel
with maintenance is clear. If a work order is turned in, approved and put in the backlog, then it is a
legitimate request. It should never be canceled or deferred until it becomes an emergency.
The goal should be to maintain the backlog in a two to four week range. If the backlog begins to
increase or trend above four weeks, then more resources should be added. From the formula, one
can see that there are three options for resources: a company can contract out more work, its em-
ployees can work more overtime, or it can hire more employees. Conversely, if the backlog begins
to trend or drop below two weeks, the company has three options to reduce resources: reduce the
amount of outside contract work, reduce the amount of craft overtime, or ultimately, reduce the
size of the maintenance workforce. If the backlog is calculated weekly and tracked annually, season-
al trends and other spikes can be clearly seen. By reviewing these types of records, a manager can
ensure the department is properly staffed.
"Even in an organization that's doing some-

thing big and bold, there's the mundane,
day-to-day execution work of keeping it go- Peter
ing. But people need to stay connected to the Diamandis
boldness, to the vision, and stay plugged in
to the main vein of the dream."
Support Personnel
The proper level for maintenance staff support is one of the most debated topics in maintenance. The cor-
rect method for determining staff levels begins with the correct determination of the craft staffing. Once
the total number of craft technicians is determined, the correct level of first-line supervisors and planners
51
can be determined. The normal ratios are one planner for every 15 to 20 craft technicians and one supervi-
sor for every 10 craft technicians. Therefore, an organization of 40 craft technicians would require:
4 supervisors,
2 planners,
1 manager.
The number of clerks is determined by the amount of data the organization is required to keep to meet
its information management objectives. Care must be exercised to not overstaff in this area. In some cas-
es, the number of clerks increases because the planners treat them as their secretaries. Planners should
handle most of their own paperwork. Clerks are supposed to help manage the information flow, such as
reporting, filing and timekeeping. If everyone is doing their job accordingly, the clerical load may be one,
or at most two.
As a rule of thumb, staff levels for a maintenance organization should never exceed 25 percent of the
craft workforce, assuming the number of craft technicians is correct. The level of clerical staff support is
ultimately determined by the amount of data the organization is required to keep. If a company requires
maintenance to perform asset tracking, then the clerical function should be staffed at a higher level
because data tracking requirements are much higher. Geographic layout of the plant, skill levels, sophisti-
cation of the equipment and other factors prevent any firm rules for staffing to be specified. Each plant,
even within the same company, should be studied to determine correct staffing levels.
Performance Indicators
At this point, performance indicators can be developed to manage the maintenance business. If perfor-
mance indicators had been developed prior to this stage, what performance would they really be measur-
ing? Proper development of performance indicators occurs only after:
The goals and objectives are set.
The organizational structure is implemented.
The roles and responsibilities are defined.
The staffing and skill requirements are determined.
Properly utilized, performance indicators highlight opportunities for improvement within the mainte-
nance business. Performance measures should be used to highlight a “soft spot” in maintenance, then
be further analyzed to find the problem causing the indicator to be low, and then ultimately point to a
solution to the problem. This implies that there should be multi-level indicators.
52
Corporate Strategic Level
Financial Performance Indicator

for the Maintenance Business
Efficiency and Effectiveness Indicator

Highlights What Part of the Maintenance
Business Impacts the Financial Indicator
Tactical Indicator
Highlighting the Maintenance
Departmental Functions
Measurement of the Actual

Strategy Component itself
While a pyramid shape provides the hierarchical relationship of performance indicators, the indicators
are determined not from bottom-up, but top-down. The corporate indicators are measuring what is
important to senior management to achieve the corporate vision. Corporate level indicators require the
entire organization to focus their efforts on achieving the corporate vision.
Corporate indicators vary from company to company, depending on current market condition, business
lifecycle and financial standing. Even different parts of a corporation may be measured with different
indicators. For example, in oil and gas exploration and production, a particular field is measured based
on where it is in its lifecycle. A new field tends to have higher spending levels for operations and mainte-
nance, while a field nearing the end of its lifecycle typically operates with lower operational and mainte-
nance expenses.
Since corporate indicators focus on achieving the long-term vision, all subsequent indicators must focus
the organizational levels on supporting the corporate direction. If the indicators are not connected, the
overall organizational effort is suboptimized, endangering the corporation’s survival when faced with
competitors who have greater focus.
53
Rule # 1
All performance indicators
must be tied to the long
range corporate vision.
If a corporate indicator highlights a weakness, then the next lower level of indicators should give further
definition and clarification to the cause of the weakness. When the functional performance indicator level
is reached, the particular problem function should be highlighted. It is then up to the maintenance manager
to take action to correct the problem. Once the problem is corrected, the indicators should be monitored
for improvement at the next vertical level to ensure the appropriate action was taken. If it was, the improve-
ment should be noticed as it impacts the hierarchical indicators up to the original corporate indicator.
The advantages of utilizing hierarchical performance indicators are clear when examining the improve-
ment process. If changes made at the functional level do not result in a change in the tactical perfor-
mance indicator, then it is obvious the changes made were incorrect. This should be apparent quickly, so
the maintenance organization does not have to wait to the end of the month or quarter to evaluate the
effect on the corporate indicator.
The Maintenance Business

It is important that the maintenance business needs are clearly defined to make it possible for an orga-
nization to map out its business processes. Even if a company has clearly defined a work management
process within the maintenance reliability organization, without the maintenance business being clearly
understood, the company will not be disciplined enough to follow the process flows. If an organization is
not disciplined enough to follow the process flows, then reading and trying to apply the information in
this guide becomes nothing more than an academic exercise. In itself, this is not all bad since academic
exercises can be learning experiences. However, to be completely successful implementing business pro-
cess flows for a maintenance reliability organization, all the materials in this chapter must be applied and
fully utilized.
Developing the maintenance business is a fundamental step in developing a work management process.
If the maintenance business is not clearly defined, the work processes become subjective. If the mainte-
nance business is not clearly understood, then how can the work processes be clearly defined?
Companies need to dedicate proper resources to ensure that the maintenance business is clearly defined
and understood before any attempt is made to develop work processes for the maintenance business.
54
Terms and Definitions

5S – a Japanese workplace organization technique to reduce waste of resources and space while increas-
ing operational efficiency; includes 5 elements that start with “S” – Sort (Seiri), Set in Order (Seiton),
Shine (Seiso), Standardize (Seiketsu) and Sustain (Shitsuke)
A
absenteeism – the act of missing work; being absent from a scheduled work shift
accounting – a functional department within a company tasked with compiling and analyzing all financial
records for the company
asset management – an organizational process to maximize value from an asset during its life; man-
agement of the life of an asset to achieve the lowest lifecycle cost with the maximum availability, perfor-
mance efficiency and highest quality
B
benchmarking – a process of identifying, learning, and adapting outstanding practices and processes
from any organization, anywhere in the world, to help an organization to improve its performance
best practice – a technique, method, or process that is more effective at delivering a desired outcome
than any other technique, method, or process
breakdown – an unexpected interruption in the service of a particular asset
breakdown maintenance – performed in response to a breakdown; typically costs two to four times as
much than the same maintenance performed in a planned mode
C
cleaning – the act of removing contamination or other materials from an asset
competitive analysis – a comparison of a company’s process with a specific competitor or group

of competitors
computerized maintenance management system (CMMS) – a software system that keeps records
and tracks all maintenances activities; integrated with support systems, such as inventory control, pur-
chasing, accounting and manufacturing, and controls maintenance and warehouse activities
55
computerized maintenance management system usage – the utilization of a CMMS; many compa-
nies achieve only a 50 percent utilization rate, preventing the realization of a full return on investment in
the software
continuous improvement – the act of constantly making a company’s business processes better
contractor – an individual or company that has a legal agreement to provide a specific service or task
corporate indicators – measures used to determine how successful a corporation is in its particular business
credit cards – ordinary credit cards, such as Visa®, MasterCard®, or American Express®, used to pur-
chase small items for a plant or facility, usually for maintenance activities
critical spares – key parts and/or components of an asset that need to be in stock or readily available
because unavailability can cause major production or service interruptions
D
data collection – obtaining asset and facility information to develop and support performance improve-
ment efforts
downsizing – the reduction of a company’s workforce due to a department closure or market share
reduction, but is commonly used incorrectly as a quick method for reducing company expenses
downtime – the amount of time when the assets/machines in a plant or facility are not producing be-
cause of failure, down for maintenance, or other reasons
E
early equipment management – a management philosophy that closely examines how equipment or
assets will be required to perform during their lifecycle to ensure design specifications are adequate
early equipment management and design – a management philosophy that gathers data from
existing equipment performance and feeds the data to the design process for the next generation of
equipment being developed
emergency – a type of equipment problem, usually involving safety, health, or process integrity, where a
breakdown has occurred and immediate attention is required
enterprise asset management (EAM) – an information system that integrates all asset related ap-
plications for an entire enterprise; focuses on standardizing information, policies and practices for the
corporation, unlike the CMMS, which manages maintenance at the departmental level
56
enterprise resource planning (ERP) – an information system that integrates all operations/produc-
tion related applications for an entire enterprise
environmental protection agency (EPA) – a U.S. government agency charged with enforcing govern-
mental environmental regulations
equipment capacity – the ability of equipment to produce a product or provide a service at a given
rate over a specified time period
equipment uptime – the time period during which an equipment item is performing at design specifi-
cation; the inverse of downtime
F
failure mode and effects analysis (FMEA) – a technique to examine an asset, process, or design to
determine potential ways it can fail and its potential effects on required functions, and to identify appro-
priate mitigation tasks for highest priority risks
financial indicators – measures that connect the business process with the overall corporate goals; the
structure of the indicators allows analysis for continuous improvement
financial optimization – an analysis technique that compares the total cost of an activity to a company
with the goal of achieving optimum financial balance for the company; includes factors, such as profit
generated, cost of maintenance, cost of production, quality costs and energy costs
functional maintenance indicators – measures that examine individual functions of maintenance

processes, which then support the tactical indicators
I
idling and minor stoppage – a type of equipment loss caused by small interruptions of the equipment;
causes that are usually small, requiring little effort to repair or reset, however, losses can become signifi-
cant when accumulated over time
inventory – the value (quantity) of goods or material on hand; classified into four categories: 1) Finished
goods, 2) Work-in-Process, 3) Raw material, 4) Maintenance and operating items, such as spare parts and
operating supplies
inventory and procurement – a function within an organization responsible for obtaining and storing
spare parts, equipment and, in some cases, raw materials; required to support the maintenance function
if maintenance activities are to be carried out effectively and efficiently
57
ISO9000 – a series of standard from ISO management and leadership standards family
to improve quality of any process
J
just-in-time (JIT) – a method of inventory management in which the right items/parts are delivered at
the right time in the right quantity as soon as they are needed
L
lean manufacturing – a methodology designed to provide increased value for equal or lesser inputs by
eliminating waste (activities)
lifecycle costing – a technique that examines all costs associated with assets/items during
their lifecycle, including design, development, build, operate, maintain and disposal
lubricant condition – a technique that examines the condition of the lubricant to ensure it is capable of
performing its designated function
M
maintenance management implementation decision tree – a methodology for improving maintenance
maintenance performance – comparing the results of the maintenance function to the goals and
objectives set for it
maintenance prevention – a design change or activity focusing on reducing or eliminating the mainte-
nance needs of an asset
mean time between failures (MTBF) – a basic measure of asset reliability calculated by dividing total
operating time of the asset by the number of failures over a period of time
mean time to repair (MTTR) – the average time needed to restore an asset to full operation after a
failure
mechanical fastening – some form of device that joins or fastens two components together, such as
bolts, studs, screws and locking devices
minor maintenance – small maintenance activities that are low cost and of short duration
58
N
NASCAR – a racing circuit in the United States that focuses on maximizing equipment utilization through
structured teamwork and discipline
O
occupational safety and health administration (OSHA) – A U.S. agency focused on providing a
safe and healthy workplace for all employees
oil analysis – the sampling and laboratory analysis of a lubricant’s properties, suspended contaminants
and wear debris
operational involvement – the use of operations personnel in some aspect of maintaining equipment
or assets
operations personnel – employees who work in the operations department
operator involvement – the extent to which employees who run equipment are also engaged in some
aspect of maintenance for their equipment or asset
overall equipment effectiveness (OEE) – a measure of equipment or process effectiveness based on

actual availability, performance and quality of product or output
P
pareto - an analysis performed to show which 20 percent of the equipment or assets creates or contrib-
utes to 80 percent of the problems the company is experiencing
performance indicators – measures to determine the performance of a function within a company;

also known as performance measures
performance measurement – a quantifiable indicator used to assess how well an organization or

business is achieving its desired objectives
planned and scheduled – maintenance activities for which resources are determined in advance and
time is estimated to carry out the work; estimates built into a weekly schedule for the maintenance staff
planner – a dedicated role with the single function of planning work tasks and activities
predictive maintenance (PdM) – an advanced maintenance technique focused on using technology

to determine the condition of assets and then taking appropriate actions to avoid failures
59
preventive maintenance – a maintenance strategy based on inspection, component replacement and

overhauling at a fixed interval, regardless of its condition at the time
process safety management (PSM) – a special regulation designed to increase the safety and envi-
ronmental control of a process system
programmable logic controller (PLC) – an electronic control system used in facilities and plants to
control assets
purchase orders – forms produced by the purchasing department to obtain materials for the company
purchasing – the functional department responsible for securing the materials necessary for the com-
pany to produce its product or provide its service; often called procurement
Q
QS9000 – quality management standards for the U.S. automotive industry; similar to ISO9000 standards
quality defects or rework – products that are not usable or need additional work to be usable
R
reactive maintenance – maintenance repair work done as an immediate response to an asset failure,
normally without planning and scheduling
reduced speed or capacity losses – losses incurred when equipment or assets are allowed to per-
form at less than design speed or capacity
reliability – the probability that an asset, item, or system will perform its required functions
satisfactorily under specific conditions within a certain time period
reliability-centered maintenance (RCM) – a systematic, disciplined process for establishing the ap-
propriate maintenance plan (requirements) for an asset/system to minimize the probability of failures
return on fixed assets (ROFA) – the profit a company generates factored by the value of the fixed
assets that produced the profit
return on investment (ROI) – a performance measure used to determine the financial viability of a
project (asset) and expressed as a percentage of the earnings (savings) produced by the project to the
amount invested in the project
60
return on net assets (RONA) – a measure of an organization’s asset performance measured by net in-
come divided by value of the total assets (plant equipment/machinery/ buildings) and net working capital
root cause analysis (RCA) – a technique used to discover the true cause of an equipment or asset
problem, malfunction, or breakdown
routine lubrication – the act of carrying out lubrication on an equipment or asset on a regular schedule
routine spares – spare parts that are used on a regular basis to maintain equipment or assets
S
service level – the level of inventory at which demand for an item can be met from the on hand stock;
expressed as percentage of order satisfied
setup and adjustment – the process of changing from running one product to running another
sonics – the use of ultrasound to detect thickness of materials or to use in other applications, such
as leak detection
start-up and shutdown losses – equipment losses occurring when equipment is shut down and then
started up; losses that occur when the process is destabilized and then stabilized
start-up inspections – inspections that are typically carried out by operational personnel while starting
up the equipment
statistical financial optimization – a technique that blends financial controls and reliability statistics
to forecast the lowest total cost for various maintenance decisions
stock out – a situation where required materials/parts are not available from the store inventory or
within an agreed upon time
stores – the function within a company responsible for maintaining the inventory of spare parts; also
referred to as inventory
stores and procurement – the function in a company responsible for ordering, purchasing and main-
taining spare parts; also called inventory and purchasing
supervisor – a first-line manager usually responsible for a group of eight to 12 employees in a traditional
organization
61
T
tactical indicators – measures that highlight weaknesses in an organization and require the merging of
functional processes within the maintenance function to improve
technical and interpersonal training – training programs that address the technical skills of the per-
sonnel and soft skills, such as team building and diversity training; both types of training are required to
produce a workforce capable of performing at world-class levels
technical training – training in trades areas, such as electrical, mechanical, fluid power
thermography – a predictive technology that detects infrared energy emitted from an object, converts
it to temperature and displays an image of temperature distribution
total productive maintenance (TPM) – a maintenance strategy that originated in Japan and empha-
sizes operations and maintenance cooperation
U
ultrasonic – the use of sonics technology to discover equipment and asset problems
uptime – the time during which an asset or system is either fully operational or is ready to perform its
intended function
V
vibration analysis – a widely used predictive maintenance technology for evaluating rotating equip-
ment to determine if any undesirable changes are present that might give an early indication of immi-
nent failure
visual systems – a technique utilized to highlight operating conditions, such as pressure, flow and fluid
levels; makes inspection and tracking equipment conditions easier and lessens the risk of a wrong reading
W
wear particles – a type of lubricant analysis that examines particulates suspended in the lubricant and
allows wear to be identified and corrected before a failure occurs
workflow – the process of requesting, planning, scheduling and tracking all maintenance activities
work order – a paper or electronic document specifying the work needed on an asset; unique control
document that comprehensively describes the job to be done
62
AUTHORS
Terry Wireman
Terry is the senior vice president of strategic development for Vesta. He leads
Vesta’s maintenance and reliability seminars and training, and provides strategic
guidance to help the firm shape its market strategy and long-term direction. For
over four decades, Terry has been specializing in the improvement of maintenance
management and reliability. He helps customers develop “best-in-class” maintenance
and reliability policies and practices. In addition, he has authored twenty-four
textbooks and scores of white papers and articles related to maintenance
management process and technology. Terry served as a member of the US Technical Advisory Group who
produced the ISO55000 standard.
Terry Wireman is the author of the Maintenance Strategy Series,

Volume 1-6, which was an inspiration behind this guide.
ISBN: 978-1-941872-27-7
reliabilityweb.com/bookstore
Terrence O'Hanlon
Terrence O’Hanlon, Chief Executive Officer of Reliabilityweb.com and Publisher
for Uptime® Magazine, is an asset management leader specializing in reliability and
operational excellence. He is certified in Asset Management by the Institute of
Asset Management and is a SMRP Certified Maintenance & Reliability Professional.
Terrence is a popular keynote presenter with the ability to deliver awareness about
the business advantages of asset management to top management.
www.reliabilityweb.com
63
CONTRIBUTORS
Mark Cox
With over 40 years of experience in manufacturing engineering, CNC programming,
Sales and Plant leadership, Mark brings a breadth of knowledge in nearly all areas of
manufacturing, management, and business within small, midsize, and Fortune 500
companies. His current duties include overall responsibilities for ATS’ eFactory and
OEM Services and SkillPoint™ technical training.
www.advancedtech.com
Harm-Jan Smit
Harm-Jan Smit brings 17 years of experience working for Stork Asset Management
Consultancy in various integrated services contracts in the Dutch Oil & Gas sector. In
the last 2 ½ years, he facilitated a strategic improvement program called “Groningen
2015” in the NAM (Shell/ExxonMobil) Groningen Asset. Harm-Jan’s primary areas of
expertise are Maintenance, SAP, Lean, Operational Excellence, Change Management
and Continuous Improvement.
www.stork.com/en
Joel Levitt
Joel Levitt is director of leadership projects for Reliabilityweb.com’s Reliability
Leadership Institute and is president of Springfield Resources, a management
consulting firm. Joel has extensive experience as a trainer and facilitator, and is
recognized as an expert in competency-based learning.
www.reliabilityweb.com
64
CONTRIBUTORS
Jim Oldach
Jim Oldach, senior reliability and asset manager for CH2M, has over 25 years
experience in asset management, reliability engineering, condition assessment,
maintenance management systems and risk management. Jim started his career
as an operator/maintenance professional in the U.S. Merchant Marine, and then
as a shoreside engineer, providing him the unique blend of “hands-on” O&M and
engineering knowledge needed to help clients achieve their asset management goals
and objectives.
www.ch2m.com
Jeff Shiver
With over 25 years of practitioner experience, Jeff Shiver founded People and
Processes, Inc. in 2006. Jeff is a trusted advisor for the maintenance and reliability
community with a passion to help organizations improve beyond the status quo
with respect to culture, business results, and most importantly, people. He is a
regular conference speaker, thought leader, publication author, and co-author of
the book, “Kitting in Maintenance Made Simple.”
www.peopleandprocesses.com
65
Thank You
Sponsors
66
Elements
A Reliability System For Asset Performance Management
™
Reliabilityweb.com® and Uptime® Magazine Mission: To make the people we serve safer and more successful.
One way we support this mission is to suggest a reliability system for asset performance management as pictured above.
Our use of the Uptime Elements is designed to assist you in categorizing and organizing your own Body of Knowledge (BoK),
whether it be through training, articles, books, or webinars. Our hope is to make YOU safer and more successful.
67
About Reliabilityweb.com
Created in 1999, Reliabilityweb.com provides educational information and peer-to-peer networking opportunities
that enable safe and effective maintenance reliability and asset management for organizations around the world.
Activities Include:
Reliabilityweb.com (www.reliabilityweb.com) includes educational articles, tips, video presentations, an industry
event calendar and industry news. Updates are available through free email subscriptions and RSS feeds.
Confiabilidad.net (www.confiabilidad.net) is a mirror site that is available in Spanish.
Uptime Magazine (www.uptimemagazine.com) is a bi-monthly magazine launched in 2005 that is highly

prized by the maintenance reliability and asset management community. Editions are obtainable in both
print and digital.
Reliability Leadership Institute Conferences and Training Events

(www.reliabilityweb.com/events) offer events that range from unique, focused-training workshops and seminars
to small focused conferences to large industry-wide events, including the International Maintenance Conference
and The RELIABILITY® Conference.
MRO-Zone Bookstore (www.reliabilityweb.com/bookstore) is an online bookstore offering a maintenance

reliability and asset management focused library of books, DVDs and CDs published by Reliabilityweb.com.
Association of Asset Management Professionals (www.maintenance.org) is a member

organization and online community that encourages professional development and certification and
supports information exchange and learning with 50,000+ members worldwide.
A Word About Social Good

Reliabilityweb.com is mission driven to deliver value and social good to the maintenance reliability and
asset management communities. Doing good work and making profit is not inconsistent, and as a result of
Reliabilityweb.com’s mission-driven focus, financial stability and success has been the outcome. For over a
decade, Reliabilityweb.com’s positive contributions and commitment to the maintenance reliability and asset
management communities have been unmatched.
Other Causes
Reliabilityweb.com has financially contributed to include industry associations, such as SMRP, AFE, STLE, ASME
and ASTM, and community charities, including the Salvation Army, American Red Cross, Wounded Warrior
Project, Paralyzed Veterans of America and the Autism Society of America. In addition, we are proud supporters
of our U.S. Troops and first responders who protect our freedoms and way of life. That is only possible by being
a for-profit company that pays taxes.
I hope you will get involved with and explore the many resources that are available to you through the
Reliabilityweb.com network.
Warmest regards,
Terrence O’Hanlon
CEO, Reliabilityweb.com
68

WEM Report Final JB

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

WEM Report Final JB

Diunggah oleh

Hak Cipta:

Format Tersedia

$399

WORK EXECUTION MANAGEMENT

QUESTIONS REGARDING THIS DOCUMENT:

© 2016 Reliabilityweb.com. No use without attribution.

Why Defect Elimination Is Effective 16

Planning and Scheduling 19

Measuring Baseline Performance 28

Developing a Maintenance Organization 30

How to Learn to Cycle 38

Roles and Responsibilities 40

Maintenance Staffing Options 47

Maintenance Organizational Staffing 48

Terms and Definitions 55

Authors and Contributors 63

"Planning is bringing the future

Thank you for your continued support of our work at Reliabilityweb.com.

The Body of Knowledge

Creating an Asset Management Culture

Its Place in the Uptime Elements

Fmea Ca Aci Vib Oa Pm Ps Kpi Pam key

Pmo Rca Ut Ir infrared

Reliability Engineering Asset Condition Work Execution Leadership

Reliabilityweb.com’s Asset Management Timeline

Business Operate Modify/Upgrade

WEM Process Overview

W hen it comes to maintenance in manufac-

Planning and Scheduling

Computerized Maintenance Management System

Operator Driven Reliability

Plans are nothing;

Convincing the Organization

Productivity of maintenance technicians can be improved by concentrating on basic management

Planning jobs in advance;

Maintenance Shutdowns, Turnarounds and Outages

Successful communications with senior executives

Developing and Implementing a WEM

Figure 2: Typical implementation flow for WEM

Developing a Preventive Maintenance Process

Figure 3: Process flow for developing a PM program To scheduling

Defect Elimination, Zero Breakdowns

Thus, based on this knowledge, it’s safe to conclude

MRO-spares management is necessary to deliver

MRO-spares management should have an organiza-

MRO spares and purchasing typically make up 40 to

Some MRO management system components

Location identification and structure that match the maintenance structure;

Securing spare parts;

Requisition Pick List Is

Figure 4: Process flow for requesting spare parts

At a minimum, these processes should be documented:

Material/spare part ordering process;

Planning and Scheduling

maintenance labor productivity is typically less than

Maintenance material costs are also reduced by

The components of an efficient and effective maintenance organization are:

Maintenance Organizations: Geographical and Reporting:

More Bang for the Money

CMMS / EAM Systems

Figure 5: An example of a flow diagram

In summary, ERP systems entail plan-

Another way to determine the

The New Generation of

Insight by Joel Levitt, Reliabilityweb.com