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Contents
A journal for all those interested in the maintenance, monitoring, servicing and management of plant, equipment, buildings and facilities.
February 2004
6 10 14 18 24 32 36 42 50 69
Something Loose Inside Your Machine? The February 2004 Cover Shot shows a Recovery Tool attachment which may be used with Olympus videoscopes or fibrescobes. For more information see: www.olympusindustrial.com
Regular Features
72 78 79 80
Maintenance News
Current Maintenance and Product News
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February
Editorial
Welcome to the first edition of the Maintenance Journal for 2004. This edition of the Maintenance Journal has a broad range of topics that includes articles on RCM, TPM, RBI, EAM, CMMS, ERP and to conclude our line up of acronyms what about SMCMM? To learn more read the articles. The major item in this issue is an Enterprise Asset Management Benchmark survey that looks at maintenance of plant, equipment, facilities and assets. The survey confirms that a fix it when it is broken attitude is still prevalent among many organisations, costing millions of dollars annually. The organisations surveyed acknowledge that preventative maintenance adds true economic value to the bottom-line, yet they still are not investing in an integrated, preventative maintenance strategy to maximize this profitability. Just how dramatically Maintenance can impact profitability is illustrated by reports in the Australian press regarding a major mineral processing plant. Recent failures at the plant have caused a 4% slump in the company share price. A failure lasting weeks in November 2003 wiped $1.5 million a day off the companys pre-tax profit and also required $3 million to repair. For the first time in the MJ we have included an article on the Maintenance of Software. It is interesting that much of the maintenance terminology used is very familiar. However one new term used in the article, which has a nice sound to it, is Perfective maintenance! Those of you using CMMS on a regular basis will appreciate what Ashraf Labib has to say on the Black Hole problem associated with many organisations usage of computerised maintenance management systems
Special Feature
MJ Survey
Computerised Maintenance Management Systems
If your organisation wishes to be included in the survey, then you may obtain the appropriate survey form by contacting Ian Bradshaw at:
mail@maintenancejournal.com Completed survey forms must be returned by: 20 Feb 2004
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5:55pm: light bulb blows in reception. 5:58pm: maintenance persons mobile phone receives SMS notification. 6:15pm: light bulb changed. job logged, costed and closed The scenario above demonstrates how BEIMS can automate the day-to-day operations that, if left unchecked, can easily swamp you - leaving you free to get on with the real business of facility management. adhoc breakdowns or requests logged directly into the system via intranet or the internet. Work orders are then automatically created and dispatched at the appropriate time - with costs and labour charges tracked and recorded. Going Beyond standard asset management software, it is the only software that fully integrates the facility management process. For this reason, it has been adopted by more than 130 organisations, including the University of Melbourne, the Victorian Arts Centre, Darling Harbour Authority and the Crown Casino.
Abstract
In this paper an investigation of the characteristics of Computerised Maintenance Management Systems (CMMSs) is carried out. The objectives are to highlight the need for them in industry and to identify their current deficiencies. Evidences of the existence of a term coined as "black holes" are presented.
It can support CBM (Condition Based Monitoring) of machines and assets, to offer insight into wear and imminent failures; It can track the movement of spare parts and requisition replacements when necessary; It allows operators to report faults faster, thus enabling maintenance staff to respond to problems more quickly; It can facilitate improvement in the communication between operations and maintenance personnel, and is influential in ameliorating the consistency of information passed between these two departments; It provides maintenance planners with historical information necessary for developing PM schedules; It provides maintenance managers with information in a form that allows for more effective control of their department's activities; It offers accountants information on machines to enable capital expenditure decisions to be taken; It affords senior management a crucial insight into the state of asset healthcare within their organisation. Indeed, Labib (1998) comments that ideally a CMMS is a means to achieving world-class maintenance, by offering a platform for decision analysis and thereby acting as a guide to management. CMMS packages are able to provide management with reports and statistics, detailing performance in key areas and highlighting problematic
A BLACK HOLE
1k + 10k + 30k +
issues. Maintenance activities are consequently more visible and open to scrutiny. Managers can rapidly discover which policies work, which machines are causing problems, where overspend is taking place, and so on, thereby revealing information that can be used as the basis for the systematic management of maintenance. Thus, by tracking asset 'health' in an organised and systematic manner, maintenance management can start to see how to improve the current state of affairs. However, the majority of CMMSs in the market suffer from serious drawbacks as will be shown in the following section.
A Black Hole
70
75
80
85
90
95
100
Conclusion
The main idea is based on the fact that the 'black hole' or missing functionality in conventional CMMSs is intelligent decision analysis tools. In PART 2 we demonstrate how maintenance system can be transferred from being a black hole to a black box where the input to that box are data and the outputs produced are decisions. We will present an industrial application of holonic concepts in manufacturing maintenance. The proposed model provides combination features of both fixed rules and flexible strategies. PART 2 will be published in the May 2004 issue of the Maintenance Journal
References
[1]. Ben-Daya, M., S.O. Duffuaa, A. Raouf (eds), (2001) Maintenance modelling and Optimisation, Kluwer Academic Publishers. [2]. Boznos, Dimitrios, "The Use of CMMSs to Support Team-Based Maintenance", MPhil Thesis, Cranfield University, 1998. [3]. Exton, T. and Labib, A.W., Spare Parts Decision Analysis - The Missing Link in CMMSs (Part II), Journal of Maintenance & Asset Management, ISSN 0952-2110, Vol 17 No1, 2002. [4]. Labib, A.W., and T. Exton, Spare Parts Decision Analysis - The Missing Link in CMMSs (Part I), Journal of Maintenance & Asset Management, ISSN 0952-2110, Vol 16 No 3, pp 10-17, 2001. [5]. Labib, A.W., "World Class Maintenance Using a Computerised Maintenance Management System"; Journal of Quality in Maintenance Engineering (JQME); MCB Press; Vol 4, No 1.; pp 66-75; April 1998. [6]. Sherwin, D. (2000) A review of overall models for maintenance management, Journal of Quality in Maintenance Engineering, Vol. 6 No. 3. [7]. Shorrocks, P., and A.W. Labib, "Towards A Multimedia-based Decision Support System for Word Class Maintenance", Proceedings of the 14th ARTS (Advances in Reliability Technology Symposium), IMechE, University of Manchester, November, 2000. [8]. Shorrocks, P, "Selection of the most appropriate maintenance model using a decision support framework", unpublished report UMIST, 2000. [9]. Swanson, L. (1997) Computerized Maintenance Management Systems: A study of system design and use, Production and Inventory Management Journal, Second Quarter pp. 11-14.
10
Reiner R. Dumke
Otto von Guericke University of Magdeburg, Germany, dumke@ivs.cs.uni-magdeburg.de
Software accounts now for a increasing share of the content of modern equipment and tools, and must similarly be maintained to ensure its continuous operational efficiency. Although the maintenance of equipment is discussed extensively, very little is published about software maintenance and how it affects us. This paper presents an overview of key topics of software engineering maintenance.
Software Maintenance. This ISO standard, although as well known as ISO900: 2000, is important to the software maintainers and to general management for understanding better the services provided on the software you own and that you are about to service or modify. The ISO/IEC standard recognizes four categories of maintenance work (see figure 1): Corrective maintenance: Reactive modification to a software product, performed after delivery to correct the problems identified. Adaptive maintenance: Modification to a software product, performed after delivery to keep a software product usable in a changed or changing environment. Perfective maintenance: Modification to a software product, after delivery to improve performance or maintainability. Preventive maintenance: Modification to a software product, after delivery to detect and cor rect latent faults in the software product before they become effective faults. In well-managed software organizations, most of the changes to software are carried out to adapt such software to the changing business or technology environment. Because the business context now moves very quickly the equipments must also improve constantly, new and better functionality need to be inserted in the existing software. The software does not deteriorate physically with time and does not age when it operates. However, due to continuous additions or modifications, it gets more complex and patched with the numerous changes and progressively becomes more difficult to maintain. These are some of the issues that have to be recognized and understood for maintaining management control over the maintenance budget of both the software and of the related equipment. So next time you look into the list of software problems try to separate them and identify the real % of corrections. Youll see that it does not account to so much. Its the changes that take the most out of your budgets. And changes, by definition, have more to do with maintenance projects than routine maintenance. It becomes evident that some of those requests will take longer because they are not routine work!
Proactive Reactive
12
Internal software maintenance organizations. Some of the activities unique to software maintainers are: Transition: Is a controlled and coordinated sequence of activities during which a system is transferred progressively from the developer to the maintainer; Service Level Agreement (SLAs) & specialized maintenance contracts: Maintainers negotiate SLAs and domain specific contracts; Help Desk handling of modification requests (MRs) and problem reports (PRs): Maintainers use a problem handling process to prioritize, document and route the requests they receive; Acceptance/rejection of MRs: Maintainers will not accept modification requests work over a certain size/effort/complexity and will reroute these requests to a developer; Impact Analysis Regression Testing: Maintainers need to perform regression tests on the software so that the new changes do not introduce errors into the parts of the software that were not altered. The SMCMM has been developed from a customer perspective. The ultimate objective of software maintenance improvement programs initiated as a result of a SMCMM assessment is increased customer (and shareholder) satisfaction, rather than rigid conformance to such a model. A higher capability level, in the SMCMM context, means, for customer organizations: a)Reaching the target service levels and delivering on customer priorities; b)Implementation of the best practices available to software maintainers; c)Obtain transparent software maintenance services and at costs that are competitive; d)The shortest possible software maintenance service lead times. For a software maintenance organization, achieving a higher capability can result in: a)Lower maintenance and support costs; b)Shorter cycle time and intervals; c)Increased ability to achieve service levels; and d)Increasing ability to meet quantifiable quality objectives at all stages of the maintenance process and services. In the SMCMM model, the key software maintenance processes have been grouped into three classes (Figure 2). a)Primary processes (operational); b)Support processes (supporting the primary processes); and c)Organizational processes offered by the IT unit or by other departments of the organization (for example: finance, human resources, purchasing, etc.). The key operational processes (also called primary processes) that a software maintenance organization uses must be initiated at the start of software project development and then maintained subsequently, beginning with the transition process. The Transition process ensures that the software project is controlled and that a structured and coordinated approach is used to transfer the software to the maintainer. In this process, the maintainer will focus on the maintainability of this new software. Once the software has become the responsibility of the maintainer, the Issue and Service Request Management process handles all the daily issues, problem reports, change requests and support requests. These are the daily services that must be managed efficiently. The first step in this process is to assess whether a request is to be addressed, re-routed or rejected (on the basis of the service-level
14
Transition
Corrective Service
Production Surveillance
Evolutive Services
Maintenance Planning
Maintenance Training
Review Process
Measurement
Process Improvement
15
In continuous manufacturing 90 percent of all potential failures are likely to be caused by just 10 per cent of the installed equipment. When planning preventive maintenance, it therefore makes good business sense to focus on this high-risk group. Risk Based Inspection (RBI) lets you do exactly that.
ABB Eutech1 has developed a Risk Based Inspection (RBI) method that enables companies to substantially increase plant reliability, reduce the number of plant failures and cut the time required for regular inspection/maintenance. Recent results with four customers in the chemical and petrochemical industry provide compelling evidence of major savings. The total cost of Iinspection costs, for example, could be reduced by 49 to 80 percent. Average inspection intervals were increased by between 35 and 57 percent, with an average increase of 44 per cent. And more than half the plant equipment could be removed from the invasive inspection programs.The bottom line is that RBI reduces downtime, planned or unplanned, for a saving in maintenance costs. The time and capacity/availability that is released as a result has a direct, positive effect on a plants output.
and maintenance effort on those areas where the risk and its potential effects are greatest. The prime objectives of an RBI program are to: Focus effort on identifying and reducing the safety and business risks. Achieve increased plant availability by ensuring that outages only take place for essential inspections. Reduce the maintenance costs associated with necessary or excessive dismantling and preparation. Improve safety by getting rid of hazards associated with preparing for inspections. RBI is becoming the preferred tool by which good engineering practice is measured. Its predictive approach is designed to eliminate excess and inadequacy by concentrating inspection effort on real risks (Figure 1). Use of RBI has shown to be effective in reducing the number of unforeseen breakdowns.
1 ABB Eutech is the process solutions center of excellence within ABBs petroleum, chemical, life science and consumer goods industries business area.
16
RBI risk matrix moving the operating risk envelope to a safer region
A B C D
Consequence
No special care required Hazard study Periodic inspection Full registration procedure
normal and abnormal excursions. The review identifies all failure mechanisms and associated risks. This accumulated knowledge and experience helps engineers to decide what equipment needs to be inspected and when, as well as to establish where failure would be least acceptable and cause the most problems. This makes it easier to see where effort has to be focused in order to maximize the return. It facilitates the optimization of examination intervals whilst at the same time identifying equipment for which non-invasive examinations would be equally effective. ABB has refined its proven RBI approach into an efficient, streamlined solution called Risk Based Inspection(Figure 2) An example of the success of Risk Based Inspection+ implemented in close partnership with a customer is a project ABB undertook recently for Victrex plc, a UK polymer producer.
For both ABB and Victrex there were some essential steps in ensuring that RBI delivered the desired benefits. Above all else there was the need to harness all existing in-house knowledge and experience and link it to ABB expertise. As a starting point, the inhouse team members were to pool all their knowledge and experience. This data, both qualitative and quantitative, together with historical records of previous inspections and a thorough analysis of the causes of lost output in the last 12 months, provided the basis for the knowledge base on which the RBI plan would be developed. A full understanding of the results of past inspections of pressure vessels during shutdowns was vital, since preparing for and carrying out invasive inspections accounts for much of the time and effort involved in a shutdown. Knowing and understanding the failure mechanisms each item is susceptible to, and where to look for them, helped the team decide on the adequacy of non-invasive inspection. This proved to be a major benefit. Thoroughly gathering and assessing salient historical data, plus the use of ABB advanced software tools, enabled the team to develop an inspection routine that prioritizes and responds to risks and foreseen failure scenarios. It also minimizes the risk of unexpected failure. Having carried out the full review and created an RBI program, the results have proved immediate and impressive. The first shutdown period to be affected, in October 2001, required only nine days. The necessary engineering and maintenance work was completed in four days. The total cost of the exercise was half the amount budgeted. The next shutdown period, a little less than a year later, was cut from 35 days to 20 days. The team expects shutdowns to be kept to this level in future years as some of the equipment gets older and wear and tear increases. Besides the welcome time saving it provides, RBI has met and exceeded expectations. During a recent period of high demand, the gross margin has been improved by more than $9 million over eighteen months of operation and other savings on capital investment and associated depreciation exceed $3 million. Year on year shutdown savings are running at almost $100,000. Victrex engineers admit that their initial desire to apply RBI was an act of faith. They saw the opportunity and believed that the goals would be achieved, but they had no previous experience to refer to. As Andrew Anderson, Engineering Manager of Victrex says, The past experience, professionalism and expertise of ABB were vital elements in steering the work forward and in providing the confidence in the achievability of our objectives. The Victrex experience shows quite clearly that Risk Based Inspections can provide the benefits businesses need to save on preventive maintenance while minimizing the risks of failure.
18
ABB RBI+
Identify deterioration mechanisms
Auditing
New assets
Data collection & analysis
Materials/NDT expertise
Training
Risk analysis
Defect assessment
Design expertise
Existing assets
Inspection technology
Execution of inspection
19
Introduction
This article describes the application of Reliability-centred Maintenance (RCM) to Naval assets and the revolutionary changes being made through its' application. Over the years, several myths and misunderstandings have arisen about RCM: what it is; whether it consumes too much resource, whether it can be applied to all types of naval assets including structures; whether the ends justify the means. Following the recent visit to Australia by Commander Nigel Morris RN, Head of the Royal Navy's Warship Support Agency RCM Group it is apparent that the RN has made enormous progress over the past five to six years in implementing RCM-based maintenance programmes to the Hunt Class MCMVs, Type 23 Frigates and other platforms and that the benefits of RCM no longer need justification in the naval context. The RAN (through ANZAC) and the US Navy's Naval Air Warfare Center have also started using RCM to review maintenance policies across a range of systems. Against a background of having to do more with less, RCM offers a proven and robust means for the Navy to obtain maintenance 'value for money' and, in parallel, improve operating safety, system reliability and platform availability.
As the new generation of aircraft entered service, aviation accidents associated with equipment failure were becoming more frequent to the point at which the US Federal Aviation Authority undertook a fundamental review of aircraft maintenance and safety. A major finding was that failure was considerably more complex than had previously been thought. There were in fact not one, but six patterns governing equipment failure, as we see in Figure 2.
Pattern A: The Bathtub Curve High infant mortality, then a low level of random failure, then a wear out zone. Pattern B: The Traditional View A low level of random failure, then a wear out zone. Pattern C: A steady increase in the probability of failure. Pattern D: A sharp increase in the probability of failure settling down to random failure. Pattern E: The Random Failure No relationship at all between how old it is and how likely it is to fail. Pattern F: The Reversed J curve High infant mortality, then random failure.
Fig 2: The six failure patterns Recognition of these patterns heralded a revolution in the world of aviation maintenance and equipment design. Patterns A, B and C supported the existence of age-related failure, but only in a relatively small percentage of cases (11%), whereas Patterns D, E and F were not age related and constituted the vast majority of failures (89%). In the case of Pattern F, scheduled overhaul activities associated with the traditional Pattern B introduced infant mortality and contributed to early life failures and the appalling accident rate at the time of 60 crashes per million take-offs (approximately 40 of these being due to equipment failure). The low percentage of age-related failures (Patterns A, B and C) and the preponderance of failure patterns D, E and F in automated systems shifted the aviation world towards an emphasis on conditionbased maintenance with a corresponding move away from scheduled
overhaul activity as the primary means of asset care. This shift in maintenance focus has been at the root of a 120-fold improvement in aircraft safety due to equipment failure since the mid 1960s.
complex item unless there was a dominant age related failure mode; the intrusive nature of the overhaul activity itself was the cause of unreliability; and there are many items and failures for which there is no effective form of scheduled preventive and/or predictive maintenance. Over the subsequent decade, the rudimentary MSG-1 approach was further developed and towards the end of the 1970s, both commercial airline and defence aviation safety and reliability had been
So what is RCM?
RCM is a process used to determine the maintenance requirements of any physical asset so that it fulfils its intended functions over the life cycle and in its' operating context. The RCM process must therefore start by defining user requirements or 'functions'. This in itself is usually something of a challenge for most organisations. Unless this user requirement is understood, it is hardly surprising that operators and maintainers have difficulty agreeing and communicating on when equipment failure has occur red. SAE JA 1011 compliant RCM asks the following seven questions from which a comprehensive approach to failure for the asset can be developed: What are the functions of the asset in its present operating context? How can the asset fail to fulfil each function? What would cause each functional failure? What happens when each failure occurs? In what way does each failure matter? What can be done to predict or prevent each failure? What should be done if no suitable proactive task can be found? The first four questions develop a functional Failure Modes and Effects Analysis (FMEA) and the last two define the appropriate failure management policy. The vitally important fifth question determines how we should react to the failure in relation to whether the failure is 'Hidden' or 'Evident' and whether Safety, the Environment or Operations (Mission in the naval sense) are affected. These seven questions can only sensibly be answered by people who know the asset best; this includes maintainers and operators, supplemented by representatives from OEMs. The group (a typical example of which is shown in Figure 4) is guided through the RCM process by a competent 'Facilitator' who is an expert in the RCM process and its application FACILITATOR Operator Operations Supervisor Technical Specialist
Maintainer
Maintenance Supervisor
22
Fig 6:
Type 23 Frigate
Vanguard SSBN
HMS Ocean
24
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25
Abstract
This is a Case Study on the successful introduction of TPM (Total Productive Maintenance) to an Australian underground zinc mine. The paper is about the experiences of a small group of miners taking their first steps on their TPM3 Journey to Excellence. It is not just about maintenance; it is about leadership, empowerment, learning by doing, ownership, performance measurement, working together and culture change.
3
What is TPM 3?
TPM is not a new concept, it was developed by Toyota in the 1970's to lift equipment reliability to the higher levels required by the introduction of the Toyota Production System and Lean Production. It has evolved over the years from just being equipment focused (1s t Generation), to process focused (2nd Generation), and then company focused (3rd Generation). TPM3 is an enhanced and expanded Australasian version of 3rd Generation TPM. It is a company wide equipment management improvement strategy involving all employees aimed at significantly improving capacity, productivity, quality, delivery, safety, morale and bottom-line results. TPM3 is not a simple maintenance program and it cannot be implemented by a handful of people. It requires the co-operation and involvement of all levels of the company, the breaking down of traditional attitudes towards specialization (I operate, you fix) and the establishment of educational systems designed to upgrade skill levels of all employees, especially maintenance and production personnel. The Centre for TPM (Australasia) is a membership-based organisation providing companies with TPM3 Training, Navigation, Research and Networking. Since it's inception in 1996, the Centre has developed TPM3, an enhanced and expanded Australasian version of 3rd Generation TPM. TPM3 is now being introduced throughout Australasia at over 40 sites involving some 14 industry groups.
26
Target Zero
Availability
Set-up and Repositioning
Minimise
Performance Rate
Reduced Speed Idling and Minor Stoppage Downgrade and Reprocessing Yield Loss
Zero
Zero
Quality Rate
Zero
Minimize
Total Elapsed Time Scheduled Production Time Available Run Time Reported Operating Time Net Operating Time
Efficient Net Operating Time Value Adding Time Rejects and Rework Reduced Speed Minor Unrecorded Stoppages Unplanned Recorded Stoppages Set-up Time Planned Downtime
Value Adding Time Elapsed Time Value Adding Time Scheduled Production Time
27
Phone ...................................Fax.......................................Email .................................................. Address.......................................................................................................................................... State .....................................Country ...............................Postcode.............................................. I am interested in attending. Please send me more information & training dates; K Root Cause Analysis 2 Day Practitioners Course K Root Cause Analysis 1 Day Participant Course K Understanding Reliability K Introduction to RCM K Advanced RCM Skill Building Using RAMS Analysis K QRA studies using Faultree Plus K Lifecycle Costing K System Availability Modeling K Weibull Analysis K Performing Hazard and Operability Studies with Hazop Plus K Reliability 2004 K On-site training (Please specify area of interest) K MELBOURNE K ADELAIDE K BRISBANE K GOLD COAST K PERTH K AUCKLAND K GLADSTONE K NEW PLYMOUTH K NEWCASTLE K SYDNEY
K OTHER PLEASE INDICATE SUGGESTED DATES ........................................................................................................................... SUGGESTED NUMBER OF ATTENDEES .............................................................................................
RELIABILITY 2004 - The Must Attend event on your 2004 Reliability Calendar This annual event is designed around the needs of our users. Hear about the latest developments in RAMS software and learn how others are getting results. Knowledge sharing is a focus each year with case studies presented by users of RAMS software and ARMS methodology. Listen and learn from other national & international organisations from a large range of industries about the challenges and benefits of Reliability Engineering. Round table sessions, discussion forums and social activities ensure an interactive networking program. APOLLO ROOT CAUSE ANALYSIS - Finding effective solutions that prevent recurrence and remove blame Apollo RCA at any level is suitable for anyone whose job includes problem solving. There are 3 Apollo courses to choose from: The Half Day Managers course: 1 Day (Participants Course); or 2 Day (Practitioners Course). The one-day participants course provides attendees with the skills necessary to find effective solution and understand the benefits of problem definition, creating a cause and effect chart and finding a range of possible solutions before deciding which are the best. The two day program looks further into what makes a successful program, and focuses on facilitation of Root Cause Analysis sessions. The half day managers program deals with what is necessary to manage a successful Apollo RCA program and institutionalize it in an organization. UNDERSTANDING RELIABILITY Using Powerful Technology and Simple Methodology to achieve world class Reliability Practices This 2 day seminar is aimed at Managers, Planners and Practitioners who are involved in managing the reliable performance of assets. The objective is to provide attendees with an awareness of how to improve asset performance using Reliability Engineering Methods. Background theory is combined with workshops using the latest RAMS technology to enhance skill levels. Case studies will also be presented using RCMCost and AVSIM Plus for Maintenance Optimization and System Availability Analysis. All attendees will gain an appreciation and understanding of the benefits of using reliability methods including, reduction in cost of capital for new projects, improved quality and safety, increased equipment reliability, reduced maintenance and operating costs and proactive maintenance management. RCM SKILL BUILDING USING RCMCOST Maintenance Optimisation for Reliability Engineers, Planners or Personnel involved in improving their RCM Program RCM Skill Building Using RCMCost is a 2 day workshop, designed to provide an understanding of the RCMCost method of maintenance task optimization. The workshop will be of practical benefit to technicians, engineers, planners and managers, providing the information that allows them to assess the cost effectiveness of existing maintenance plans, and know how to select optimum tasks and frequency of maintenance tasks for both new and existing equipment. This course also covers the essential data analysis skills necessary to be able to utilise failure records and equipment history. Instruction is through a series of targeted exercises to ensure all participants leave with practical hands on knowledge. PLANT AVAILABILITY MODELING Evaluating & Improving System Performance through Availability Simulation This course provides the knowledge and skills necessary to perform system analysis using Reliability Block Diagrams and Availability Simulation. This is a skill building course designed for those wishing to improve the availability of systems and reduce plant downtime. Practical examples will be worked on using AvSim+ availability simulation program. PERFORMING HAZOP Studies Identifying hazards for New and Existing Plant Identifying hazards through HAZOP studies is the first step in many risk management programs. This course teaches the basics involved in understanding Risk and how to use the Hazop Technique to identify Hazards, rate the hazard and identify which hazards need to be addressed to reduce unacceptable exposure. A systematic approach is essential for an efficient Hazard identification and risk reduction program. This course introduces both spreadsheet and database applications that can be employed. QRA STUDIES USING FAULTREE PLUS Quantified Risk Analysis can be used to identify the critical events carrying the highest risk and evaluate the effectiveness of risk reduction options. Used for Risk Management, Level of Protection Analysis, Safety Integrity Level Determination, Isographs Faultree program is a world leader. This day is a familiarization day with one of the worlds leading programs to perform Faultree and Event Tree analysis.
Going Solo
For a number of team members this was a major learning experience wrestling with issues such as how to be a team leader / team member, how to plan meetings around shift work, how to carry out surveys and how to analyse data with the added pressure of a 12 week time limit to achieve a significant improvement in performance (25% increase in OEE). The team followed a 9-step process, with each step clearly outlined in their TPM 3 Team Member Manuals.
Plan Do
Presentation
6. Pilot Proposed Solutions
30
Objectives
To more fully understand current Equipment & Process loss and its impact on Overall Equipment Effectiveness and the Counter-Balance Measures
Figure 4
Strategic Analysis
As - Is Situation
Baseline Analysis OEE Loss Analysis Equipment Analysis (Operator Survey) Technical Data Analysis Preventive/Predictive Maintenance Capability Analysis
Team Reviews
reported stoppages. Most team members start with the belief that all inefficiencies are caused by maintenance problems. TPM3 Teams discover what maintenance people already know, that losses from other operational causes are as big, if not bigger than the losses due to equipment failure. So the team was surprised to find that the drilling rig breakdowns made up only 37% of the reported losses affecting the rate of development. This proved to be another turning point for the team, further breaking down the barriers between operations and maintenance. Armed with this valuable information the team set about looking deeper into these issues to determine the root causes.
31
Figure 5
Figure 6
30%
20%
10%
0%
32
Results
Initial results were extremely good, but the improvement quickly fell away. This was for a number of reasons including the inability to always have a face ready for drilling (planning issue), and mechanical failures resulting from the increased working hours of the face drilling rig. After the scheduling changes were made and equipment failure issues addressed, the OEE improved dramatically. The OEE improvement was reflected in the development advance metres, with an increase from 100 to 125m per week being achieved.
33
Daryl Mather
Management Consultant (UK) darylm@klaron.net
Defining EAM
Enterprise Asset Management systems (EAM) continue to point the way into the future for capital intensive industries. The combination of functionalities, asset focussed business intelligence and advanced management consulting have allowed some vendors to provide consistently high results to those industries whose operating model involves the management of large numbers of physical assets. This specifically refers to industries in the areas of Mining, Oil and Gas, Defence, Utilities and Transport although it does also offer positive benefits for companies in some areas of manufacturing. The Gartner Group defines EAM as the following: "EAM consists of asset management, materials management, HRMS and financials"
The focus and structure of an EAM system recognises the strategic importance of asset management and provides a structure and depth of functionality dedicated to providing clear strategic advantages in these areas. It is for this reason that it is directed at the central role played by maintenance and includes the three additional functional areas in capital intensive industries that have a synergistic relationship with asset management. They have truly evolved into solutions for enterprise performance management in this industry sector. It represents a key strategy to increase plant capacity, using information technology in lieu of new construction in large, assetintensive enterprises. It integrates key plant control systems (PCS) and ERP with maintenance activities and functions to reduce downtime and minimize maintenance spending
Confusion in E.A.M
The emergence of EAM as the solution for this style of industry has at times been confused both by clients, as well as by vendors.
Financials
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PRUFTECHNIK
When combined with the added benefits available in applying EAM systems this adds potential areas of strategic advantage in: Utilization and development of human resources Financial optimization of the maintenance function Reduced inventory holdings Better vendor selection and management Human Capital Management
This requires a truly proactive approach to asset management. An approach that involve looking forward to take decisions instead of looking back. Proactivity, when expressed in terms of EAM, means: Use of "what if scenarios" and forecasting. This is a vastly under used area of all implementations. The ability of a company to be able to forecast differing scenarios when analysing the asset management function can add substantial value to a company. Accommodation of RCM style analyses Extensive use of Business Intelligence as a strategic asset for managers Providing for the creation of asset specific decision support
Business intelligence and Analytics The use of business intelligence is a means of extending EAM systems in order to accommodate the Total requirements of capital intensive industries. This has been a part of the solutions EAM providers have offered for the past decade and, importantly, works from the information already contained in the EAM system. Provision of key performance indicator monitoring in a manner
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Advanced Management Consultancy The last step in the application of the Total EAM Vision is that of the provision of Managerial Consultancy. This goes way beyond the standard implementation function of EAM vendors and needs to include a high level approach to optimizing a companies processes based on: Acknowledged best practices Knowledge of areas of critical importance in the industry sector The interrelation between functional areas for greater ROI achievement While there is no doubt regarding the ability of EAM systems to achieve results, this can be greatly leveraged via focussed management consultancy. Particularly with respect to the correct usage of powerful "what if" functionality, risk and reliability management, advanced inventory management and the creation of a structured KPI regime.
Conclusion
Physical asset management contributes greatly to the achievement of competitive advantages in capital intensive companies. Particularly in the areas of productivity, quality, cost effectiveness, and risk management. If your company has a need to manage physical assets it can benefit from a proven Total EAM solution provided by one of the top level systems vendors. A key issue however in the selection and implementation of an EAM system is ensuring that the underlying processes and management functions support the goals of achieving strategic advantages in Asset Management. This goes beyond the implementation project and should include a degree of true managerial consultancy assistance to truly provide a quantum leap in corporate performance.
Public Workshops 2004 Mar 16,17 Jul 13,14 Mar 23,24 Jul 27,28 Mar 9,10 Jul 20,21 May 13,14 Aug 3,4 Feb 17,18 Mar 18,19 Sep 28,29
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The quest for improvement in asset maintenance is a core responsibility of any modern maintenance manager. The procedures and systems that could equip today's maintenance professional to successfully follow this quest are many and varied. It is easy to place our faith in, and adopt one, or a number, of defined programs or processes aimed at reducing plant downtime and increasing maintenance group effectiveness and efficiency. But has an adequate foundation been laid to ensure that maximum advantage can be gained from an improvement project that will often require a significant commitment in money, time and employee involvement? This article explores this question and attempts to offer some suggestions for making sure some of the basics of sound maintenance practice are in place.
4. Its Not My Problem - The focus of business management has also become especially complex, with business managers devolving various areas of responsibility, including asset maintenance, to specialists who are often expected to pull rabbits out of a hat to make their area work. It would make life much easier if we could magically reverse, or at least arrest these trends, but I doubt if that will happen. No surprises there either.
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And So?
If you are happy in the situation that presently surrounds you then you need do nothing, and life will go on potentially for a long time without any major problem. The only hitch is that a major problem will certainly be waiting down the road somewhere, without any forewarning, and it will not be a pretty sight when you hit it. So which mega-dollar process do you buy to forestall this cataclysmic inevitability? I suggest none. Instead I suggest you consider what is set out below.
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environment where the employees who will ultimately be expected to work with it, or at least its outcomes, are attuned to the notion of maintenance being a worthwhile discipline in its own right, and that their role as practitioners is important and valued.
Conclusion
In summary, what this article has endeavoured to do is to promote a concept that improvement in maintenance functions needs to be approached from the basis of building upon a solid foundation. That foundation involves turning your personnel into maintainers over and above their core expertise as engineers, technicians and trades people. In this article we have referred to this transformation process as acquiring Maintenance Literacy and liken it to language literacy in that it serves a basis for ongoing development of competence and success in the control and use of maintenance practices and techniques. We have further suggested that reaching this Maintenance Literate state is best achieved under natural conditions for development, akin to the non-structured processes used in developing the capability of speech with children. It was contended that a Maintenance Literate workforce would be more capable and receptive to the implementation of higher level structured or packaged improvement programs aimed at ongoing process improvement in the maintenance function, because of the expanded skill and knowledge base, there heightened level of confidence in there own capability as maintainers, and their increased desire to be part of improvement and success.
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MEX operates on all current Windows platforms including 95 98 00 NT & XP. It also allows the user to report directly into Word, Excel and Access. It is recommended that you have at least 32 Mb Ram, 152 Mb Hard Disk space and an 800 x 600 display option with 256 colours.
Other solutions available from Maintenance Experts include: FLEETMEX, MEX OPS, MEX STORES, EASYTIME, FUEL MEX, MEX LINKS & MEX INSPECTIONS.
Equipment Register
View add and update all details from within a selected record Record and report on details of supplier, costs, purchases date etc Equipment movement tracking Location hierarchy to any branch of equipment Region/department hierarchy Inclusion of all equipment details including graphics/pictures Security and User access levels
MEX
Equipment Register A complete asset register, accurately tracking the value and status of all of your equipment. Work Orders Increase efficiency and profits, know who did what work, what it cost and when it was completed. Schedule and utilize your resources effectively. Equipment Usage/Performance Condition reporting. Record and monitor readings by any type including hours used, Kpa, km etc Maintenance Policies Reduce breakdowns and control routine preventive maintenance with automatic work orders and standard jobs. Reporting Essential and accurate information immediately. Customise your reports and graphs, and export to third party applications.
Work Orders
Multiple jobs for a work order Resource and plan Labour, Materials and time Prioritise, report on and control work in progress Estimated and actual job costs Internet and Intranet Work Requesting Graphical schedules & tracking of work
Reduce Costs, Improve efficiency and help harness the full potential of your maintenance operation. MEX gives companies all the power to take
control of their maintenance operation. Whether you are managing the maintenance of a Processing Plant, Factory, Building Facility or even providing Contract Maintenance services, MEX has the flexibility to accommodate any situation. Let MEX launch your operation towards significant improvements in efficiency and productivity.
Readings
Monitor plant readings Track plant usage times Graph results
Equipment usage/Performance
Record and report on any reading type Calculate average usage rates for equipment Report on equipment performance
Maintenance Policies
Schedule work by conditions, hours used, km, months etc Automatic work order creation Standard jobs Allocation and management of job spares, people and costs Attach files to Policies
Invoicing
Invoicing of work completed Create invoices directly from Work Orders Complete breakdown of costs, labour and parts Invoice matching to line item level Customer specific pricing
Drawings
Complete Drawings register Store equipment listing for each drawing
Just fax this form to Maintenance Experts +61 7 3392 4888 or mail to: MEX Maintenance Experts PO BOX 6118 Buranda Qld Australia 4102
Name/Position: Company: Address:
History
Life cycle of costing and comparative analysis Failure analysis codes Full work details including description, labour parts Account code charges Down time/Repair time
Reports
Fax:
Phone:
Ease of data capture User customizable reports Export data quickly and accurately
Introduction
Rapid advances in technology in manufacturing of mining machinery have led to more opportunity for mining industry to procure sophisticated, automated, high capacity and complex mining equipment in production of ore/coal for meeting the market demand, profitability and competitive threat. Though the machines are easy to operate due to built-in automated control, maintenance of these types of complex equipment is difficult, and requires costly resources, high level of knowledge and skill for fault diagnosis and subsequent pertaining action[1]. As a result, in most mining operations today, maintenance-related costs for a typical surface mining operation accounts for about 40-50% of operating cost. For an underground mining operation, it is about 30-45%. On average, mining machinery maintenance cost is 30-40% of total production cost and 5060% of total equipment operation cost [1,2,3]. The direct cost of maintenance is about 4% of the cost of fixed assets and 30% of all maintenance expenditure is wasted [4]. Downtime cost or loss of production of such capital intensive machine due to unnecessary machine downtime resulting from breakdown for poor design/ manufacturing/ operation/ maintenance of machine plays an important role for profitability of the mine [5]. This increasing need of reviewing equipment in terms of acquisition, operation, maintenance and cost has led to the concept of terotechnology.
Prior Art
In and around the year 1967, it was felt that industry in United Kingdom was not facing upto its maintenance problems and consequently there was wastage of a lot of money. The British Ministry of Industry became aware of the situations and a Working Party on Maintenance Engineering was set up in 1968 to investigate keenly into the matter. The Working Party carried out a survey of 515 companies of Maintenance Engineering practices and costs. The conclusion was reached that Maintenance is part of a much wider technology, embracing design, manufacturing, installation, commissioning and replacement of plant and machinery. This led to the term Terotechnology
Concept Of Terotechnology
The term of terotechnology has been derived from the Greek word "terein" which means in several ways such as "to take care of", " to guard over", to watch over", "to look after" or "to monitor". Terotechnology has been defined in BS 3811(1984) as : A combination of management, financial, engineering, building and other practices applied to physical assets in pursuit of economic life cycle costs. Its practice is concerned with the specification and design for reliability and maintainability of plant, machinery, equipment, buildings and structures, with their installation, commissioning, operation, maintenance, modification and replacement and with feedback of information on design, performance and costs [7]. So it is said that the practice of terotechnology is concerned with the objective of pursuit of economic life cycle cost through building in of reliability and maintainability of equipment during the stages of development of equipment specification and design, effective maintenance and the feedback of information on design, operational performance and costs. The concept of absolute inherent reliability of a piece of equipment is a myth. All machines are likely to fail. Failure of machine is inevitable. Kumar'96 highlighted that the design reliability of machine, methods of use and types of maintenance strategies being practised in mine generally influence the failure of machine. Contribution of machine breakdown due to poor design, misuse or wrong operation and poor maintenance strategy is 50-70%, 25-35% and 15-25% respectively[3]. So it indicates the need to take total care of equipment in its life-time for optimising machine availability. It involves a cradle to grave approach that recognises every aspect of the equipment through out its life with the organisation[8]. It considers all aspects of machine from 'design to discard' or ' womb to tomb' or from selection of equipment for the mine/plant to disposal / replacement. The total equipment management from user perspective as shown in figure 1.
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Terotechnology Model
A Model of terotechnology has been outlined by Weigel, Evan, Rappini and Finniston [9,10,11,12]. Weigel[9] in his 'cyclic model of functional maintenance' stressed the need for feedback from the maintenance department to the design office. Evan [10] in his ' circular model of terotechnology' advocated the need for feedback of information gathered during the stage of installation and commissioning and also during use from the operation to the designer. The model also includes the feed-forward of information from the installation and commissioning stages to the operation. However, both the models do not indicate any interaction between the equipment manufacturers and the equipment user. Rappini[11] emphasised the analysis of past failure related data of equipment for its modification and improvement. Finniston[12] highlighted the necessity of detailed planning of the installation and commissioning jobs. By applying the concept of terotechnology in capital intensive steel industry, Weigel, Finniston and Rappini achieved considerable saving in the cost of maintenance or loss of production resulting from machine breakdown[4]. However, the practices of terotechnology could not be fully developed without any interaction between the equipment manufacturers and the mines. In the case of mining equipment, the designer and manufacturer of equipment are hardly ever the user of equipment. Generally, the manufacturer knows his design and equipment the best and gets feedback from the mines. The mine has the best knowledge of equipment operation, its constraints and its application. Therefore, above interaction or symbiosis between manufacturer and mine is essential for equipment modification, improvement with the objective of design-out maintenance or maximising availability. This symbiosis acts like synergy between above two sides of the coin and both the manufacturer and mine get a competitive advantage in business. Because mine can produce more ore/coal from improved, reliable and maintainable equipment and manufacturer can increase his market share. Again, for the above interaction, existing equipment in mine is hardly benefited. So there should be a system of feedback of information from maintenance department to inhouse design and planning office in mine for modification/ continuous improvement of equipment. Therefore a retrofitting is required among operation, maintenance and in-house design and planning office. Keeping with the above objective and discussion, a modified terotechnology model has been developed and presented in figure 2.
Make the most intelligent purchase in term of manufacturer & specific model
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Design equipment
Commission
Operation
Maintenance
Replacement /Disposal
Manufacturers Domain
Users Domain
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Implementation
It has been reported that considerable reduction in the cost of maintenance or loss of production has been achieved by Weigel, Finniston and Rappini through the practice of terotechnoloty in steel industry. The mining industry can practise the terotechnology without changing their organisational set up. For implementation, there is no need to create a new department or specialist. The only thing that is required for its full implementation is the proper co-ordination between operation and maintenance functions and department, proper appreciation about the importance of maintenance, cost analysis, top management support, interaction between mine and machine manufacturer and control of cost and machine. For this all concerned or all aspects of equipment whole life should be considered to be a single platform under one shelter or umbrella.
Case Study
Business is all about time, money, production and alternatives. Life cycle cost( LCC) of mining equipment is of great importance for mine since maintenance costs may be more significant than capital costs over the equipment lifetime. Thus the 'cost' of equipment should not be assessed by purely on the capital cost but by the total costs which will be incurred during equipment lifetime- hence LCC. LCC is the sum of all costs incurred during the lifetime of equipment. It plays an important role in maintainability analysis particularly with respect to operation and maintenance cost. LCC uses the well-proven concept of ' time value of money'. This is very useful in the context of LCC, allowing us to discount future costs back into' present value' terms, giving a truly meaningful comparison of machines and options with different cash flow pattern.
Strategic Corporate Assessment Systems Pty Ltd P.O. Box 427, Heidelberg Ph: 03 9455 2211 www.strategicorp.com 47
Acquisition cost
Operation cost
Maintenance cost
Maintenance cost Fixed operation cost Failure & consequence cost Reliability
Figure 4 Machine reliability, LCC and LCP
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Where LCC = life cycle cost of a dumper machine, FC = Failure cost, IC = Initial / acquisition cost The failure cost, FC, is represented by FC =T ( RC + SC ) /MTBF (2) Where RC = repair costs, SC = spares cost, T = expected life of the machine. For presentation of uniform periodic payments, the present value will be Present value = PV = P[ 1-( 1 + i) -n ] /i. and for calculating present value of single payment we have used PV = F.W./ ( 1 + i.) n Where P = F.W.= future worth, i. = interest rate, n = year From the above expression we have estimated LCC of dumper machines. The result is presented in figure 5. From the figure 5, it can be concluded the following: (i)lowest LCC is $ 534011.5 for machines D2 and highest LCC is $869082 for machines D8 (ii)machines D8 gives the interesting result: its failure cost( $387457.8) and spare cost ($ 156585.2)are high whereas its operating cost($172689.9) is low.
Concluding Remarks
From what has been described it is clear that terotechnology is a concept. Good co-ordination and communication between design, manufacturing, installation, commissioning, operation and costs, maintenance and management is absolutely essential for improvement of machine. The main objective of terotechnology is the minimisation of LCC of equipment through optimising of machine availability, minimisation of maintenance cost over its useful life. Mine management can use the LCC concept of equipment as a decision making tool for investment appraisal. Within the existing set up mine can practice terotechnology.
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10
11
Dumper No
1050000 900000
Cost Comparison
750000 Spare cost 600000 450000 300000 150000 0 1 2 3 4 5 6 7 8 9 10 11 156585.2 Repair cost PV of FC PV of DC Total life cycle cost
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Introduction
The management of plant, equipment, facilities and other assets to maintain peak performance is vital to productivity and profit. Organizations continue to strive for best practices by deploying advanced management software, cutting edge management practices and the latest equipment. When it comes to enterprise asset management, how do organizations measure and judge their performance? The Intentia Enterprise Asset Management Survey is the first survey of its kind to examine and detail the issues and factors that affect the management of plant, equipment, facilities and other assets. As one of the worlds leading providers of collaborative enterprise solutions, Intentia takes great interest in helping establish industry best practices and assisting its customers in achieving success. To help all stakeholders in plant management and maintenance, Intentia has pioneered this new international survey of enterprise asset management and benchmarks. The survey was carried out during 2003 and responses were received from over 470 manufacturing and operations-related organizations based in Europe and Australasia. We hope that the results of the first Intentia Enterprise Asset Management Survey will encourage you to review your maintenance procedures and systems, as well as help you improve, where possible, the effect that enterprise asset management has on your business.
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Progress at last
...thought Greg. After the initial diagnostic review conducted by Assetivity, they had worked together to develop a practical implementation plan, focused on the high priority areas that would give them the greatest benefits, with the least effort. The review had shown that they needed to regain control of their plant and equipment. They had been operating in a reactive manner, and while they had become very good at responding to breakdowns, the number of breakdowns had increased to the point that they were no longer able to effectively complete all of the PM program. This was resulting in even more breakdowns, and as a result, Maintenance expenditure was well over budget. Equipment availability was suffering, and production targets were not being met. In addition, frequently recurring breakdowns had led to intense criticism from the Production Department, and the skills and capabilities of the Maintenance Department were being called into question. Greg had had to spend far too many unproductive hours defending himself and his team from unwarranted criticism. It was all getting to be very draining. Greg had suspected that their PM program needed updating, and had read about Reliability Centred Maintenance (RCM), and thought that applying these principles might help - but enquiries had revealed that it was going to be simply too expensive, and too time-consuming for them. Assetivity, however, had introduced them to the PM Optimisation approach, which used the core principles of RCM, but applied them in a more time-efficient and focused manner. They had completed the initial training, and the first team was working on its pilot analysis. Greg was looking forward to the outcomes with great anticipation - he was confident that this was the first step towards regaining control of his plant - and his time.
FIGURE 1
Organization Size 1-250 251-500 501-1000 1000+ Total
Just under half (49.8%) of all survey respondents indicated that they were of the view that maintenance was an investment. This relatively low figure indicates a lack of awareness of the potential return on investment from enterprise asset management. On the whole, large organizations (over 1000 employees) were the most likely to view maintenance as an investment, with 56.4% holding that view. A similar percentage of organizations with 5011000 employees were of the same opinion (56.4%). Small organizations (under 250 employees) were the most likely to view maintenance as a cost (41.8%). The high percentage of small organizations viewing maintenance as a cost indicates that smaller organizations are more likely to work in breakdown mode rather than in a preventive/predictive mode.
This relatively low figure indicates a lack of awareness of the potential return on investment from enterprise asset management
FIGURE 2
Industry Sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total
Strongly agree - cost 10.3% 9.1% 16.1% 6.9% 2.9% 10.1% 10.6%
Generally agree - cost 32.8% 9.1% 21.4% 32.8% 25.7% 29.3% 27.5%
Generally agree - investment 27.6% 36.4% 25.0% 25.9% 45.7% 34.8% 31.4%
Strongly agree - investment 22.4% 45.5% 23.2% 19.0% 11.4% 14.1% 18.4%
Food/beverage manufacturers were most likely to view their maintenance program as an investment, with 57.1% having this attitude. This may underscore the concern in this industry sector for product quality and food safety. Interestingly, considering their essential service nature, 43.1% of utilities/ infrastructure businesses viewed maintenance as a cost. However, this was offset by 22.4% of the businesses in the same industry who strongly agreed that maintenance was an investment. It is fair to say that the high percentage of utilities/infrastructure organizations that see maintenance as a cost shows why situations like the blackout that occurred in the northeastern United States in August 2003 arise. Equally, the high number that view maintenance as an investment shows that some organizations have understood the dangers of cost driven maintenance or perhaps have even experienced those dangers themselves.
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Of your total maintenance costs, what percentage is spent on preventative maintenance as opposed to corrective maintenance?
The response to this question provides an important benchmark for organizations on how to plan and allocate their preventative and corrective maintenance budgets. The graph (left) most clearly demonstrates a heavy bias away from funding preventative maintenance, with the bulk of expenditure going to corrective maintenance. In fact, 65.9% of respondents indicated that less than half of their maintenance budget is spent on prevention rather than cure. The lack of investment in preventative maintenance indicates the continuing dominance of the breakdown maintenance mentality and the probable lack of awareness of the potential benefits of a preventive/predictive maintenance approach. It also indicates that there is a significant opportunity to improve preventative/predictive maintenance strategies with techniques such as reliability centered maintenance and improved preventive/predictive maintenance systems.
FIGURE 3
Organization Size 1-250 251-500 501-1000 1000+ Total
The lack of investment in preventative maintenance indicates the continuing dominance of the breakdown maintenance mentality
The bias toward corrective maintenance was more prevalent among smaller organizations with 70.7% of 1-250 employee organizations spending less than half of their budget on preventive work, while 66.1% of 251-500 employee organizations reported the same expenditure. This is in contrast to 500-1000 employee organizations, where only 52.4% spent less than half of the maintenance budget on preventative work. Mining/processing and utilities/infrastructure companies were most
FIGURE 4
Industry Sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total
likely to spend more than half of their maintenance budget on preventative maintenance, with 36.6% and 36.2% respectively allocating the majority of their budget to preventative work. The increased funding of preventative maintenance in mining/ processing and utilities/infrastructure indicates the importance of enterprise asset management in asset-intensive companies. For food/beverage organizations, 71.4% indicated that they allocated less than half of their total maintenance budget to preventative maintenance. This makes them the least likely to invest in preventative work, and raises a concern in regard to issues such as food safety. Food/beverage organizations were only marginally behind oil/chemical firms, of whom 70.7% indicated that they spent less than half of their budget on preventative work.
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30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
0% 0.12.5% 2.65.0% 5.17.5% 7.610% 1120% 2130% 3140% 4150% 6180%
FIGURE 5
Organization Size 1-250 251-500 501-1000 1000+ Total 0% 6.3% 2.6% 1.6% 3.6% 4.4%
The majority of firms experience between 0.1% and 5% of their month in downtime, whereas 84.3% of organizations are able to keep their monthly downtime at 10% or less. Of organizations surveyed 3.0% suffer more than 20% of their month being plagued by downtime. The large number of respondents in the 5%-20% bracket indicates that there is a major opportunity for companies to achieve significant financial benefits from improved enterprise asset management and preventative maintenance strategies. Organizations reporting average downtime of over 30% raise concerns about their ability to survive, or concerns about the impact that this is having on consumer prices since these inefficiencies must eventually be passed on to customers.
The majority of firms experience between 0.1% and 5% of their month in downtime
FIGURE 6
Industry Sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total 0% 6.9% 0.0% 2.7% 8.6% 0.0% 4.5% 4.4%
Utilities/infrastructure organizations indicated that they have the best record for keeping downtime to a minimum with more than half of the firms surveyed reporting 2.5% or less of their month in shutdown. Of mining/processing firms, 17.0% spent more than 10% of their month in shutdown, while 16.2% of general manufacturing firms also suffered from more than 10% of the potential production time each month being offline. These responses, and indeed the percentage of organizations reporting zero downtime, could also reflect that downtime recording is poor in many companies.
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Do you believe that a fix it when it is broken approach is still predominant amongst managers not directly responsible for manufacturing?
Historically, professional maintenance managers have had to lobby their organizations for funds to carry out preventative work. In a tight fiscal environment, it often proves a challenge to convince other managers that money should be spent to fix something that isnt broken. Nearly half (49.6%) of all respondents indicated that they agree with the notion that a fix it when it is broken approach is still predominant among managers who are not directly responsible for manufacturing. The strong fix it when broken attitude, and consequent lack of funds for preventative maintenance, again emphasizes the need for companies to do return on investment calculations for enterprise asset management and then to internally promote the benefits of enterprise asset management.
FIGURE 7
Organization Size 1-250 251-500 501-1000 1000+ Total
emphasizes the need for companies to do return-on-investment calculations for enterprise asset management
Of small organizations (1-250 employees), 15.5% report that this attitude is still strongly agreed with in their business, with a further 38.9% saying they generally agree with the notion. Almost half (49.2%) of medium-large sized organizations (501-1000 employees) disagreed with the statement that a fix it when it is broken approach is still predominant.
FIGURE 8
Industry Sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total
The fix it when it is broken attitude seems to remain most prevalent in the mining/processing industry with 18.8% of respondents strongly agreeing that the attitude continues to exist. Overall, 60.0% of food/beverage industry respondents indicated that this attitude exists within their organizations. On the other hand, utilities/infrastructure firms were the most likely to view this attitude as less likely to exist - 44.8% of those in the utilities/infrastructure sector indicated that they either generally or strongly disagreed with the premise.
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Do you believe that maintenance is given sufficient weight in your organisations planning decisions?
If maintenance is the oil that keeps productivity flowing, then the results of this question must be encouraging. Only 28.8% of survey respondents indicated that their organization was not giving sufficient weight to maintenance in planning decisions. Overall, 19.3% of respondents indicated that they strongly agreed with the suggestion that maintenance is given sufficient weight in their organizations planning decisions. A further 43.4% generally agreed with the view. From these results, there would appear to be a very relaxed attitude towards maintenance. This indicates a need to demonstrate the true effect of poor enterprise asset management. This is especially so when other data from this survey indicates that more could be done in maintenance.
50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
Strongly agreeGenerally agreeIndifferent Generally disagreeStrongly disagree-
FIGURE 9
Organization Size 1-250 251-500 501-1000 1000+ Total
Large organizations (1000+ employees) were the least likely to be burdened with their organizations management giving insufficient weight to maintenance in planning decisions-only 3.6% strongly agreed that the organization gave insufficient weight to maintenance, and only an additional 21.8% generally agreed.
data from this survey indicates that more could be done in maintenance
FIGURE 10
Industry Sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total
Almost 4 out of 5 utilities/infrastructure respondents indicated that their organization either strongly (36.2%) or generally (43.1%) supported maintenance as part of their planning process. By contrast, only 5.7% of food/beverage industry organizations reported that they strongly agreed with the statement that maintenance is given sufficient weight in their organizations planning decisions.
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Strongly agree-
Generally agree-
Indifferent
Generally disagree-
Strongly disagree-
FIGURE 11
Organization Size 1-250 251-500 501-1000 1000+ Total
The strongest support for the view that better maintenance improves plant safety came from the oil/chemical industry
The strongest support for the view that better maintenance improves plant safety came from the oil/chemical industry sector with 77.6% strongly agreeing with the statement and a further 20.7% generally agreeing, for a total of 98.3%. This extraordinary level of support goes hand in hand with the fact that, as a relatively dangerous manufacturing and handling process, the oil/chemical sector is well aware of safe working practices. From a similar standpoint, the mining/processing sector also gave nearly total support to the assertion.
FIGURE 12
Industry Sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total
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50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
Strongly agreeGenerally agreeIndifferent Generally disagreeStrongly disagree-
FIGURE 13
Organization Size 1-250 251-500 501-1000 1000+ Total
Support for preventative maintenance increasing capacity was strongest among large organizations with 50.9% of 1000+ employee organizations strongly agreeing with the notion and 49.2% of 5011000 employee organizations also strongly agreeing. This compares with only 33.9% of small (1-250 employees) organizations taking the same position.
40.5% strongly agreed with the proposition that preventative maintenance increases plant production/operations capacity
FIGURE 14
Industry Sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total
Only minor variations to the consensus that preventative maintenance enhanced capacity were found when looking across different industries. The oil/chemical industry lagged slightly behind the all-industry average in supporting the notion, with a total of 81.0% agreeing compared to the overall average of 86.5%.
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What weight is given to occupational health & safety factors in your maintenance planning?
Occupational health and safety factors have been given increasing importance at all levels of business in recent years. Both the moral and legal expectation of providing employees with a safe working environment has, in many ways, changed the way that businesses operate-particularly in the manufacturing and operations environment where safety threats are often highest. Of all organizations surveyed, 62.3% indicated that occupational health and safety received the highest importance in their maintenance planning, with a further 27.3% reporting it received moderate importance.
FIGURE 15
Organization Size 1-250 251-500 501-1000 1000+ Total
62.3% indicated that OH&S recieved the highest importance in their maintenance planning
Support for occupational health and safety being given the highest importance was strongest among the medium-large organizations (501-1000 employees) with 79.4% giving it the highest importance in their planning. Although clearly still committed to occupational health and safety , support for its importance was lowest among medium-sized companies (251-500 employees) with a comparatively low 54.8% giving it the highest importance. Many preferred instead to rate it of moderate importance (35.7% for these organizations as opposed to the all-industry average of 27.3%).
FIGURE 16
Organization Size Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total
Among utilities/infrastructure organizations, there was overwhelming support for occupational health and safety being given the highest importance in planning, with over three-quarters (77.6%) supporting this stance. A further 20.7% gave it at least moderate importance. A similar level of importance was given to occupational health and safety among the food/beverage industry with 74.3% rating it of highest importance. General manufacturing was the least supportive of occupational health and safety with only 51.0% rating it as having the highest importance in their planning decisions.
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Do you believe that your preventative maintenance program gives you a competitive advantage over others in your industry?
Given the support for preventative maintenance in other areas of the survey, it is interesting to see how others measure themselves against their competitors on the success of their preventative work in delivering a competitive advantage. Just under one-quarter (24.2%) of all organizations surveyed indicated that they were of the view that their preventative maintenance work gave them a significant advantage over their competitors. A further 38.1% were of the view that their preventative work gave them a slight advantage. In total, 62.3% of those surveyed believed that a competitive advantage was achieved as a result of their maintenance programs. This is important for maintenance managers to emphasize internally, particularly at the board level in their organizations, since it clearly demonstrates the value of enterprise asset management and the importance of funding such programs adequately.
45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
Significant advantage Slight advantage Indifferent Slight disadvantage Significant disadvantage
FIGURE 17
Organization Size 1-250 251-500 501-1000 1000+ Total
The larger organizations were most likely to be of the view that they held a significant competitive advantage as a result of their preventative maintenance work with 27.3% of 1000+ employee organizations and 27.0% of 501-1000 employee organizations holding that belief. A further 49.1% and 47.6%, respectively, believed that it gave them at least a slight advantage. This compares with 23.0% of 1-250 employee organizations and 23.5% of 251-500 employee organizations that were of the belief that it gave them a significant advantage. This may indicate that some economies of scale exist in preventative maintenance work, creating a competite advantage for larger organizations.
62.3% of those surveyed believed that a competitive advantage was achieved as a result of their maintenance programs
FIGURE 18
Industry Sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total
Oil/chemical organizations were the most likely to believe that their preventative maintenance work gave them a significant advantage over their competitors, with 31.0% having this perception. Utilities/ infrastructure organizations were not far behind with 29.3% believing that they also gained a significant competitive advantage. On the downside, a total of 9.0% of mining/processing firms believed that they were at a competitive disadvantage as a result of their preventative work, and 8.6% of food/beverage organizations believed that they were suffering at least a slight disadvantage. Presumably these organizations felt that their preventative maintenance programs were, in some way, substandard by industry best practices.
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25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Poor capital purchasing decisions Poor Poor Lack of compre. mngment. funding of maint techniques problems by other line mgrs. Staffing shortages Other
FIGURE 19
Organization size 1-250 251-500 501-1000 1000+ Total
Poor comprehension of maintenance problems by other line managers 19.7% 25.2% 31.7% 34.5% 24.4%
Poor management techniques were cited as the greatest problem faced by 19.5% of all survey respondents
Poor comprehension of maintenance problems by other line managers was most prevalent in large organizations with 34.5% of 1000+ employee organizations citing this as their main problem. Among 501-1000 employee organizations, 31.7% cited the same issue. However, for small (1-250 employees) organizations, it was declared as the major problem by only 19.7% of respondents. For small organizations, the most significant problem was poor management techniques (20.9% of all 1-250 employee organizations).
FIGURE 20
Industry sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total
Poor capital purchasing decisions 6.9% 18.2% 8.0% 8.6% 11.4% 9.6% 9.1%
Poor comprehension of maintenance problems by other line managers 22.4% 36.4% 25.0% 27.6% 25.7% 22.7% 24.4%
Poor management techniques 20.7% 9.1% 19.6% 20.7% 14.3% 20.2% 19.5%
Lack of funding was the most significant problem for 28.6% of the food/beverage companies surveyed-compared with 15.7% as the allindustry average. The food/beverage sector was also more likely to be affected by poor capital purchasing decisions than other industries (11.4% compared to an average of 9.1%). Staffing shortages was listed as the major problem for 16.1% of all mining/processing firms, compared to the average of only 10.8%. Compared to other industries, a poor comprehension of maintenance problems by other line managers was less of a problem in the utilities/infrastructure sector- although, at 22.4%, it remained the primary cause for concern in that industry.
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How strongly do you rely on redundancy systems as opposed to preventative or repair based maintenance to maintain continuous plant operations?
This question also provides an important benchmark for organizations that have a maintenance requirement of any type. The responses to this question show how industry maintains productivity for operational equipment. The responses could also indicate the need to consider the use of reliability centered maintenance to evaluate the correct maintenance approach. The majority of organizations indicated that they have a general reliance on preventative maintenance to maintain continuous operations with 28.2% indicating this to be their main strategy. An additional 22.2% of all organizations said that they placed a high reliance on preventative maintenance-in total indicating that a preventative program was the backbone for over half of all organizations. Of the organizations surveyed, 12.9% indicated a general reliance on repair-based maintenance and 11.0% indicated a high reliance on the same strategy-making corrective maintenance the routine approach for 23.9% of the organizations surveyed. 22.0% of organizations placed their faith in redundancy systems to maintain continuous plant operations, with 4.0% placing a high reliance on this strategy.
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
High reliance on redundancy systems General Reliance on redundancy systems High relian. General High Relian. on Reliance on on repair preventativepreventativebased maint. maint. maint. General Reliance on repair based maint.
FIGURE 21
Organization size 1-250 251-500 501-1000 1000+ Total
General reliance on repair based maintenance 12.6% 10.4% 7.9% 9.1% 11.0%
General reliance on repair based maintenance 15.9% 15.7% 4.8% 3.6% 12.9%
Notably, smaller organizations were more likely to rely on repairbased maintenance than larger organizations-28.5% of 1-250 employee organizations and 26.1% of 251-500 employee organizations placed their faith in repair-based work as compared to 12.7% of both 501-1000 and 1000+ employee organizations. The larger organizations were much more likely to employ preventative maintenance as their strategy than smaller organizations- 58.2% of 1000+ and 60.3% of 501-1000 employee organizations relied on preventative maintenance, as opposed to 47.3% of 1-250 employee organizations and 47.8% of 251-500 employee organizations.
The majority of organisations indicated that they have a general reliance on preventative maintenance
FIGURE 22
Industry sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total
High reliance on redundancy systems 6.9% 9.1% 5.4% 3.4% 5.7% 2.0% 4.0%
General reliance on redundancy systems 32.8% 9.1% 16.1% 20.7% 20.0% 14.1% 18.0%
High reliance on preventative maintenance 22.4% 18.2% 27.7% 20.7% 25.7% 19.2% 22.2%
General reliance on preventative Maintenance 17.2% 27.3% 25.0% 29.3% 22.9% 33.8% 28.2%
High reliance on repair based maintenance 8.6% 9.1% 12.5% 10.3% 14.3% 10.6% 11.0%
General reliance on repair based maintenance 10.3% 18.2% 10.7% 6.9% 11.4% 16.7% 12.9%
Reflecting their essential service nature, 39.7% of utilities/infrastructure organizations relied on redundancy systems to maintain continuous operations, making them by far the most likely to use this approach. Food/beverage organizations were also more likely than normal to rely on redundancy systems with a total of 25.7% choosing this approach. Preventative maintenance was most likely to be adopted by general manufacturing firms (a total of 53.0%) and by mining/processing firms (total of 52.7%). Repair-based maintenance was most likely to be relied upon by general manufacturing firms (27.3%).
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Do you believe that maintenance software has enhanced the capacity of your maintenance program in preventing downtime?
Maintenance management software has become an increasingly important tool in contemporary production and operations environments. Software integration of the variety of systems and practices that are required to effectively manage particularly large organizations has revolutionized maintenance. Of the organizations surveyed, 60.6% believe that maintenance software has enhanced the capacity of their maintenance program in preventing downtime. More than 1 in 5 organizations surveyed strongly believe that it has enhanced their capacity. It should be noted that a relatively high percentage (15.7%) of organizations still do not have maintenance software to assist in plant and equipment management. The relatively high number of firms that do not agree with the statement may also indicate system failures and, thus, the need for better implementation techniques.
FIGURE 23
Organization Size 1-250 251-500 501-1000 1000+ Total Strongly agree 16.7% 20.9% 25.4% 30.9% 20.6% Generally agree 34.7% 39.1% 58.7% 43.6% 40.0% Indifferent 13.4% 16.5% 4.8% 14.5% 13.1% Generally disagree 9.6% 3.5% 4.8% 5.5% 7.0% Strongly disagree 2.1% 6.1% 3.2% 1.8% 3.2%
60.6% believe that maintenance software has enhanced the capacity of their maintenance program in preventing downtime
The lack of maintenance software was most evident among small organizations (1-250 employees) where 23.0% indicated that they had no maintenance software to assist them. This decreases to only 3.6% of 1000+ employee organizations facing the same problem. Given the convincing support for maintenance software in reducing downtime, this clearly places smaller organizations at a competitive disadvantage to their larger counterparts. While still supporting the value of maintenance software, small organizations were the least likely to agree with the idea that maintenance software had enhanced the capacity of their maintenance program in preventing downtime. Among 1-250 employee organizations, a total of 51.5% reported that they either strongly or generally agreed with the proposition, while 60.0% of 251-500 employee organizations reported the same view. This compares with 84.1% of 501-100 employee organizations and 74.5% of 1000+ employee organizations.
FIGURE 24
Industry sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total
Only 5.2% of utilities/infrastructure organizations indicated that they had no maintenance software. They were also the most likely (27.6%) to strongly agree that maintenance software helps prevent downtime. In total, 65.5% of utilities/infrastructure companies agreed that maintenance software helped them prevent downtime. In mining/processing organizations, 65.2% agreed that maintenance software had prevented downtime.
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50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
0hrs 1-10 hrs 11-20 hrs 21-30 31-40 hrs hrs 41-50 51-60 61-70 hrs hrs hrs 71-80 hrs 81-90 hrs
FIGURE 25
Organization Size 1-250 251-500 501-1000 1000+ Total 0 hrs 7.9% 5.2% 4.8% 9.1% 7.0%
Interestingly, organization size seems to play little role in explaining the level of unscheduled downtime-no clear pattern emerges in comparing small and large plant operators.
11.2% indicated that they lost more then 40 hours per month in unscheduled downtime
FIGURE 26
Industry sector Utilities/Infrastruct. Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufact. Total 0 hrs 19.0% 18.2% 0.9% 6.9% 8.6% 6.1% 7.0%
Utilities/infrastructure firms were the most likely to boast zero hours of unscheduled downtime each month with19.0% of respondents claiming this enviable achievement. This is in stark contrast to the mining/processing sector in which less than 1% of respondents could claim zero hours of unscheduled downtime. In fact, 17.9% of firms in the mining/processing sector lost more than 40 hours per month to unscheduled downtime. Of general manufacturing firms, 12.1% were in the same position of losing more than 40 hours per month to unscheduled downtime.
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20.0%
What is your average annual cost (USD) for lost production due to plant equipment failure?
Putting a cost on lost production is intimidating for maintenance managers. While the cause of these plant equipment failures may well be beyond the realistic control of a maintenance manager, it nevertheless underscores the lost income potential that may have been avoided through better maintenance. This question also demonstrates the need for good enterprise asset management systems to highlight the consequential financial effects of ineffective maintenance. 22.0% of respondents indicated that their average annual cost for lost production due to plant shutdown was between $0-$10,000. A further 20.1% were able to limit their lost production costs to between $10,001 and $50,000, while 1 in 8 respondents indicated that their annual loss of production exceeds $500,000.
15.0%
10.0%
5.0%
0.0%
$0-$10,000 $10,001$50,000 $50,001 $100,000 $100,001$500,000 $500,001 $1 mill $1 mill$10 mill
FIGURE 27
Organization Size 1-250 251-500 501-1000 1000+ Total $0-$10,000 29.3% 17.4% 11.1% 14.5% 22.2%
Considering their generally smaller level of total revenue, it is not surprising that 29.3% of small employers (1-250 employees) were able to keep their losses to beneath $10,000 per year. This is in contrast to only 14.5% of 1000+ employee organizations. On the other hand, 30.9% of 1000+ employee organizations experienced annual lost production of more than $500,000.
FIGURE 28
Industry sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total $0-$10,000 25.9% 45.5% 8.0% 22.4% 20.0% 28.3% 22.2%
The industry sectors likely to see the biggest financial losses due to plant equipment failure were the mining/processing and utilities/infrastructure sectors with over one-third (36.6% and 34.5% respectively) reporting that their annual losses exceeded $100,000. Of general manufacturing firms, 51.0% reported that they were able to manage their plant equipment to keep their annual cost of lost production below $50,000.
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How many times in the last year did you have a breakdown that stopped plant production in more than half of your plant?
Part of effective operations planning is to attempt to minimize the extent of shutdowns that occur when equipment fails. Containing the impact of the failure to a small area of a plant may allow other areas to maintain productivity until the failure is corrected and full production can resume. Major shutdowns-more than half of a planttend to have the most significant impact on productivity. The possibility of major shutdowns will, of course, depend on the nature of the plant. Naturally, plants with few production/process lines, such as those found in the oil/chemical industries, will be more prone to total plant stoppages. Of the organizations surveyed, over half (54.9%) were able to claim that they did not have a single breakdown that shut down more than half of their plant. An additional 22.1% were able to state that they only had one or two instances of major shutdowns. Almost 1 in 5 organizations reported having 3 or more major shutdowns in the last year. The response to this question clearly emphasizes the need to carry out proper cost-based reliability centered maintenance to identify potential bottleneck processes and ensure that the plant has the correct maintenance strategy.
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Zero Once Twice 3-5 times 5-10 times 11-20 times
FIGURE 29
Organization Size 1-250 251-500 501-1000 1000+ Total Zero 56.9% 52.2% 61.9% 43.6% 54.9% Once 17.2% 14.8% 6.3% 7.3% 14.0% Twice 7.1% 6.1% 6.3% 18.2% 8.1%
Medium-large organizations (employing 501-1000 people) were able to claim the best record in avoiding major plant shutdowns-61.9% stated that they experienced no failures that led to production being stopped in more than half of the plant. Small organizations (employing 1-250 people) were the second most likely to have no major shutdowns with 56.9% being able to claim such a success. On the downside, 9.1% of large companies (1000+ employees) reported that they experienced more than 20 major shutdowns in the last year.
The response to this question clearly emphasizes the need to carry out proper cost-based reliability centered maintenance
FIGURE 30
Industry sector Utilities/Infrastructure Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufacturing Total Zero 69.0% 63.6% 50.0% 55.2% 42.9% 55.1% 54.9% Once 8.6% 9.1% 12.5% 13.8% 14.3% 16.7% 14.0% Twice 6.9% 9.1% 8.0% 10.3% 11.4% 7.1% 8.1%
Leading the way was the utilities/infrastructure sector with 69.0% claiming zero major shutdowns. Food/beverage companies were the most likely to have had 20 or more major shutdowns in the last year. The high percentage of total stoppages in food/beverage organizations is surprising since they usually have a relatively large number of production lines. Among general manufacturing companies, 78.8% had no more than two major shutdowns in the last year.
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What was the most downtime caused by a single breakdown this year?
Breakdowns are all too often unavoidable. Good maintenance programming recognizes this fact. Even the most effective preventative maintenance cannot prevent every failure. How quickly an organization is able to get systems and equipment back online after a failure is the true sign of effective maintenance planning. Of the organizations surveyed, 7.4% were able to claim zero hours of downtime caused by breakdowns in the last year. Impressively, more than one-third were able to keep their maximum downtime to between 1 and 10 hours. Over half of all organizations surveyed were able to keep the maximum downtime for any one plant failure to 20 hours or less. Unfortunately, 1 in 8 companies experienced more than 90 hours of downtime from a single breakdown this year. Again, this question emphasizes the need for proper cost-based reliability centered maintenance in order to set not only the correct preventative maintenance strategy, but also the correct holding of spare parts.
FIGURE 31
Organization Size 1-250 251-500 501-1000 1000+ Total 0 hrs 10.0% 6.1% 1.6% 5.5% 7.4%
How quickly an organisation is able to get systems and equipment back online after a failure is the true sign of effective maintenance planning
Small organizations (1-250 employees) were the most likely to be able to claim zero hours lost due to a breakdown (10.0% of 1-250 employee respondents). Only 1.6% of 501-1000 employee organizations were able to match this. Indeed, 501-1000 employee organizations were also the most likely to have a breakdown of more than 90 hours (15.9%).
FIGURE 32
Industry sector Utilities/Infrastruct. Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufact. Total 0 hrs 10.3% 9.1% 3.6% 10.3% 8.6% 7.6% 7.4%
Utilities/infrastructure and oil/chemical firms were both equally likely to be able to claim zero hours lost (10.3%), while mining/processing were the least likely to make the same claim (only 3.6%). An extraordinary 22.3% of mining/processing organizations reported having breakdowns of more than 90 hours. Despite having a strong record at the positive end of the scale, utilities/infrastructure firms also reported a significant likelihood of experiencing shutdowns of more than 90 hours.
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FIGURE 33
Organization size 1-250 251-500 501-1000 1000+ Total
Intergrated maintenance & production systems 24.3% 27.8% 38.1% 45.5% 29.4%
Paper-based systems remained prevalent among 20.6% of organizations, as did informal word of mouth (20.3%). Both of these techniques were much more prevalent among smaller organizations. Of the organizations surveyed, 18.2% used management intervention to resolve conflict between production and maintenance planning.
The most popular method of achieving this coordination was through integrated maintenance and production systems
FIGURE 34
Industry sector Utilities/Infrastruct. Transport/Storage Mining/Processing Oil/Chemicals Food/Beverage General Manufact. Total
Intergrated maintenance & production systems 50.0% 9.1% 30.4% 29.3% 22.9% 25.3% 29.4%
Management intervention to resolve conflict 12.1% 27.3% 16.1% 20.7% 22.9% 19.2% 18.2%
Paper based systems 17.2% 27.3% 17.9% 19.0% 22.9% 22.7% 20.6%
Informal word of mouth 8.6% 18.2% 24.1% 22.4% 31.4% 19.2% 20.3%
No requirement for this 6.9% 18.2% 2.7% 3.4% 0.0% 5.6% 4.7%
Integrated maintenance and production systems were used by half of all utilities/infrastructure organizations, yet were used by roughly only one-quarter of all general manufacturing businesses. Informal word of mouth was most likely to be used in the food/beverage sector (31.4%), while paper-based systems were used by a further 22.9% of organizations in that sector as well.
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A small number of responses have been received but to contact more of the direct providers of such systems it is suggested that you visit the following web sites:
www.aimglobal.org/buyersguide/default.asp
AIM Inc. is the global trade association for the Automatic Identification and Data Capture (AIDC) industry. The members are manufacturers or service providers of technologies such as radio frequency identification (RFID), bar code, card technologies (magnetic stripe, smart card, contactless card, optical card), biometrics, and electronic article surveillance (EAS). This is a very large contact database for data collection systems throughout the World.
www.gpsworld.com
A site dedicated to Global Positioning Systems. Download a pdf copy of their 2003 buyers guide.
www.adca.com.au
The Automatic Data Capture Association (ADCA) is the Australian trade association of supplier and solution providers that are involved in the process of automatically collecting and integrating data to information management systems. Check out their 2003-2004 Data Capture Suppliers Guide.
AQUIP SYSTEMS
Company Information Email: sales@aquip.com.au Australia Web Page: www.aquip.com.au Countries Supported:
The PRUFTECHNIK VIBSCANNER is a popular hand-held condition monitoring system for predictive maintenance. The VIBSCANNER is capable of collecting vibration data, temperature, speed and process parameters. PRUFTECHNIK have also created the unique Vibcode technology as part of the
VIBSCANNER, where specially encoded measurement studs allow 100% reliable and repeatable identification of measure points, as well as optimal signal transmission. This provides maximum flexibility in terms of resourcing for data collection and is a proven solution for condition based vibration monitoring and lubrication regimes.
AssetPoint
Email: sales@assetpoint.com Worldwide Web Page: www.AssetPoint.com Countries Supported:
TabAnyWare from AssetPoint combines the power of CMMS/EAM TabWare with the convenience and portability of hand-held computing. With TabAnyWare users have the ability to remotely initiate, view and complete transactions related to work orders, preventive maintenance work and inventory management. Maintenance labor and productivity workflow efficiencies are improved by having work performed at the equipment or job location. By synching to TabWare through a wireless, dial-up or docking station, time consuming paperwork and data entry is essentially eliminated.
71
Survey 2004
Ezijobz Software
Company Information Web Page: www.ezijobz.com Countries Supported: Australia, Canada, Ireland, New Zealand, Singapore, South Africa, United Kingdom, USA
Web Page: www.cogz.com Countries Supported: over the world that are serviced and supported from our office in the US.
From SAP to MYOB users, organisations find integrating ATT into their management regime allows significantly faster and accurate feedback regarding their asset tracking and stock control. Armed with a PDA style device, barcoding, RFid or touch memory technologies, assets, stock, plant equipment and documents are effortlessly tracked while virtually eliminating labour updating host systems. ATT benefits organisations to meet depreciation and accounting standards, cost centre allocation, accountability and theft management while negating the requirement for paper-based processes.
COGZ is an integrated maintenance system consisting of: Equipment Management Work Order Management Preventive Maintenance Inventory Management Purchasing The barcode collects inventory, work order and purchase order data.
Ezijobz SME software offers complete service management functionality, including service jobs, asset maintenance, and customer help desk support. It is built on a SQL database that can scale up to 100+ users. Maintenance features include: Multiple Predictive, Preventive and Reactive Maintenance Events per Asset by date, frequency, usage and units. Hierarchical Asset and Event processing to exclude sub-level Events and update multiple Asset actuals Ezijobz supports barcoding Synchronises with PDA Devices using the Palm OS.
Barron GJM
Company Information Email: info@barron.com.au Web Page: www.barron.com.au Countries Supported: Australia
DRACAS - rcm2
Company Information Email: sales@rcm2.co.uk UK, Europe and USA
Pruftechnik Alignment Explorer is a data communication software package for the storing of Pruftechnik laser alignment files. Pruftechnik Rotalign PRO, Boralign, smartALIGN and Optalign PLUS all communicate with Alignment Explorer. Alignment files can be stored in a structured filing system for easy retrieval. As data is collected and stored it can be used for generating alignment reports. Alignment Explorer is also used to create machine templates. Machine templates speed up alignments and improve the quality control of alignment work.
Date Reporting Analysis and Corrective Action System (DRACAS) is a recent product from rcm2 limited, an innovative safety and reliability solution provider. DRACAS is a database used primarily to enter faults/failures collected from a working system as well as required improvements for procedures and processes. Based on this data, DRACAS produces a history of faults/failures of the system components in both textual and graphical formats. For more information please contact md@rcm2.co.uk.
HandiMEX is a portable information collection point used in conjunction with MEX, Australias leading computerised maintenance management system. HandiMEX is a simple application that works by transferring your required data from MEX into your handheld device. This data is then taken into the field and actioned. Once you have completed your work you then take your handheld device back to its cradle and transfer all of the updated data back into MEX, eliminating the need for data entry. There are four programs available and these include: Store Issues, Equipment Readings, Ad Hoc Work Order, Stocktake.
The Bearing Expert Interchange and Vibration Frequency Database has over 1 million bearings in interchange and 250,000 base bearing frequencies for 120+ manufacturers worldwide. Database reports include Interchange, Vibration for multiple manufacturers, Harmonics, Contact Angle, Prefix and Suffix and Diagrams. Our Internet Application offers Manufacturers Links to catalogs for additional information. Available on CD-ROM and Internet Subscription. Or place TBEXREF link on your website. Customers can access the database while increasing website activity. Lead Report generated daily for follow up.
Data Storage, Transfer and Reporting (DSTAR) system is a new productfrom rcm2 limited, an innovative safety and reliability solution provider. DSTAR allows predictive maintenance of railway signaling equipment based on data collected from its components in real-time. It keeps a record of all controls on signals, indicates signal aspects to be replaced and gives warning of abnormalities in railway points/switching movements. For more information please contact md@rcm2.co.uk.
e-Inspector from Hatch Associates is part of Hatch Strategic Asset Management Support Toolset and provides maintenance practitioners with the facility to download/upload, chart and report on the results and history of their inspection regimes. The concept is based on using PDA for data collection and performing customised PC assisted data analysis. Multiple inspections are easily imported in the PDA from a CMMS or maintenance strategy databases or created from pre-existing hard copy inspection sheets. An inspector is able to electronically record the inspection by entering the measurement values, a free text feedback or comment or selecting from pre-determined responses. The application is suitable for both Pocket PC and Palm based units.
72
Survey 2004
Matrix - COGNICA
Van Inventory
Company Information Email: info@cognica.com Web Page: www.cognica.com Countries Supported: UK
Time Recording Proof of Delivery Custom Designed Forms Technically Serviceware Supports devices running Microsoft Pocket PC Can integrate with existing corporate systems. Support communications methods such as GSM, GPRS and CMDA.
Matrix is a service offered by COGNICA to define the information (e.g. Health and Safety, Operation and Maintenance) that members of the supply chain sub-contractors, manufacturers and suppliers - must provide as part of a project. It provides a specification over the internet or extranets and allows the supply chain to upload information directly into a database. It provides flexible publication routes to IT systems (e.g. maintenance management, asset management, O&M), CD-ROM or paper.
PMA is a fully automated solution for gaining extra performance from valuable maintenance engineers by eliminating laborious paper-based reporting processes. Armed with a PDA style device and barcoding, RFid or touch memory technologies users access job information, special instructions and execute multi-tiered planned and unplanned maintenance tasks while recording consumption of materials, date and time and status of tasks. On completion of the maintenance session the updated data is communicated back to the host maintenance system.
NaniGo - COGNICA
Company Information Email: info@cognica.com Web Page: www.cognica.com Countries Supported: UK
Teroconsulting
Email: sales@teroconsulting.com Canada, USA Web Page: www.teroconsulting.com Countries Supported:
MMT is a sophisticated front end application that gives existing ERP and inventory systems a virtual consolidation of multiple pick lists, purchase orders, stock takes and internal movements presented in real time. Designed with shop-floor operators in mind, MMT removes traditional paper-based processes and replaces them with RF and barcoding efficiencies. Features include support for mobile RF terminals, off-line capability, multiple product identifiers, hardware vendor independence, EAN-128 complaint, SAP certified, and Pick-toLight support.
NaviGo is a software suite to store and retrieve asset-related information, including the Health and Safety file and Operation and Maintenance manual. It has a fast, accurate and easy to use navigational system, which helps different groups of users access information in ways which correspond to their job functions. These may include site plans, process schematics, CDM view, assets grouped by manufacturer etc. NaviGo helps the Client, or FM contractor, to reduce operational expenditure and respond quicker to emergencies.
Web Work 100% Web Based CMMS/EAM solution. Enter data using a standard web browser or on site using a Palm PDA device for Work Orders, Inventory Data collection via Bar Codes and detailed Readings and Rounds information including meter readings. Interfaces to SCADA systems, GIS data, Accounting Data. Data input is easy, and the powerful built in report writer allows you to write detailed reports to better manage your entire operations.
Mobileware is a suite of mobile productivity applications designed to improve the sales and service capabilities of organisations. If your business depends upon service technicians and maintenance crews then our Serviceware application can electronically deliver
National Reliability Systems offers vibration monitoring systems for predictive maintenance requirements and vibration analysis services. The NRS3600 system is a user-friendly online vibration monitoring and software system. National is also the Americas supplier of the award-winning VB Series line of vibration analysis products. National Reliability Systems offers a unique vibration analysis service, National Remote Diagnostics (NRD), available 24-7 via the internet. For more information, visit our website at www.nationalremotediagnostics.com.
WorkTech Time helps you reduce the cost of time entries, while giving you the tools to track time on a work order basis. WorkTech Time provides an easy-to-use time and attendance system that, at the same time, handles all your different kinds of employee with their distinct rules, skills, shifts, assignments, sick, and leave time agreements. WorkTech Time customers are freed from the hassles of time management and are delivered information that allows them to better manage people and assets.
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maintenancenews
Avexus Receives 2003 Frost & Sullivan Entrepreneurial Company Award for Initiatives in Power Industry Segment
Avexus Inc., a leading provider of software solutions for the lifecycle management of complex assets, was awarded the Frost & Sullivan 2003 Entrepreneurial Company Award for delivering a unique services solution to the power systems services market. Avexus' Impresa(tm) software was originally designed to handle the service management of complex assets in the aviation industry. The unique business requirements to overhaul aircraft engines, landing gears and other parts have traditionally driven the functionality within Impresa. Realizing that the power systems services industry has similar service management requirements, Avexus has aggressively worked with clients and industry experts to capitalize on this emerging market opportunity. Frost & Sullivan projects that revenue for total world asset management solutions will steadily grow, increasing to $356.2 million by 2010 with nearly $120.0 million sales coming from the services category. "Asset owners, OEMs and third-party service providers, be they in the aviation or power markets, continue to wrestle with the inherent problems of contract management, resource allocation, profitable execution and business performance analysis," said Andrew Dumke, chairman and CEO of Avexus. "Impresa helps firms streamline services operations, providing power systems services companies with greater equipment uptime and faster maintenance turnaround times. We thank Frost & Sullivan for recognizing our efforts in addressing this market need." This Frost & Sullivan Entrepreneurial Company Award is given each year to an emerging company that demonstrates superior entrepreneurial ability in its industry. This award signifies Avexus' identification of a unique and revolutionary product solution with significant market potential.
www.avexus.com
Rockwell Automation, in the region and throughout the world. According to Rockwell Automation Asia Pacific TSC manager, Philip Greetham, the internationally recognised SCP certification has been a primary goal of the centre since its inception, three years ago. "SCP goes beyond the standards that just define the process," he said. "It requires that the support centre meet a range of performance criteria to pass the accreditation audit, including performance metrics such as 'speed of response', 'direct call connection to engineers' and 'customer satisfaction'. It amounts to the world's best practice for technical telephone support centres." Greetham adds that the development has further international implications. The coincident achievement by the company's TSC in Brazil means that now all of the company's support operations worldwide are SCP accredited. "Rockwell Automation is now the only company in the factory automation industry to have achieved this standard globally," he said.
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yes, and immediately started scrambling our resources." The PRO Shop first called Buffalo Pump, the pump manufacturer and asked if they had any spare parts. Unfortunately, the answer was no, "because it was a specialized pump - a horizontal split-case pump that was mounted vertically," said Coryell. With on-site help from a PRO Shop representative, the pump was pulled out from below deck. Brown recalls that "it was pretty hairy getting it up at night from below deck on the ship. The big problem with these older pumps is that the bearing housings that hold the bearings got wiped out. That's not something that we could just go and get off the shelf." The pump rolled into the PRO Shop in Greensboro at 9:00 p.m. on Saturday night. Jim Coryell and Eric Wilson, one of the top mechanics at the Greensboro PRO Shop, had come in and opened up the shop. The objective was to have the pump back on board the ship by Tuesday morning - operational. "We knew that we would have to make a whole bunch of parts for it and we knew we had to protect the bearings," said Coryell. While the pump was being shipped to Greensboro, Coryell placed a call to Inpro/Seals, letting them know that while they were not sure exactly what size seal would be required, a seal would be needed as soon as possible. With the pump in the shop, the work on Saturday night consisted of a complete disassembly and determination of what was needed to fix the pump. As it turned out, there was a need for custom fabrication of new parts for the pump. The PRO Shop went into action with two-man teams around the clock. The list of custom fabrications included the case wear rings, impeller wear rings, and mechanical seal glands. The PRO Shop engineers also had to modify the shaft sleeves to accept the new mechanical seals. Once the dimensions of the new seal were known, Coryell called Inpro/Seals on Sunday at 7 a.m. "They manufactured the seals and had them flow to Greensboro by special courier where I picked them up on Sunday night at 8 p.m.," said Coryell. Brown noted, "New mechanical bearings are not something that we could just go and get off the shelf. PRO Services actually manufactured and machined a bearing housing from scratch. That's a pretty nice thing to get done at 3 a.m. on a Saturday night." Coryell said that, "We basically got into the process of manufacturing all of these components. The pump was too big for us to sandblast here, so we go out some power tools and we wire brushed the whole thing inside and out." The refurbished pump left the PRO Shop on Tuesday morning at 2 a.m. and installed. According to Coryell, after the Buffalo pump was working properly again, the Navy was so pleased with our work that they put a failed screw pump that was being used in a high-pressure propulsion hydraulic system service on the truck to take back to Greensboro for refurbishment. Wilson took that pump back to the PRO Shop where it was fixed within 24 hours and then turned around again and brought it back to the ship for installation.
For more information: www.gouldspumps.com
Here is a great new product that contains all the Precision Maintenance and Vibration Analysis Procedures, Standards, Tolerances and Specifications you require. All the documentation you always intended to write and implement set out in a single CD ready for implementation to your QA system. Vibration Analysis "tricks of the trade" for accurate confirmation set out step by step. Reliability Toolbox InterActive CD ROM has been selected as a finalist in Plant Engineering Magazine 2003 Product of the Year Competition. The Reliability Toolbox(tm) CD ROM is an organization-wide solution to improving and enhancing the weakest link in your CMMS program, maintenance procedures and documentation. Gain control of your maintenance and reliability programs, by capturing valuable machinery information and creating job aids for current and future employees. The value of machinery knowledge is immeasurable and is essential to a successful implementation of reliability programs. The Reliability Toolbox(tm) is an enhancement program that will help your company to obtain and secure this valuable information, provide consistency in job performance and training of employees. The Reliability Toolbox(tm) CD ROM program offers a reliability knowledge assessment and several live multimedia training modules that explain and demonstrate the use of various maintenance forms and procedures. This program also provides a collection of over 50 generic maintenance forms, procedures and job aids in MSWord format that can be used as is, or modified to meet the procedural requirements of an existing reliability improvement program.
For more information contact Asset Reliability Services on info@assetreliability.com.au or visit us on-line at www.assetreliability.com.au
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Think about the ramifications - lost money; tighter deadlines; and the very real possibility of being kicked off site and loosing the contract - and maybe many more in the future if you don't come through in time. Plus you'll probably have to spend a fortune on emergency repairs or a replacement machine in an effort to catch up on lost time. Now think about why this happened. Sure, at face value the compressor let you down. But why did it fail? Could it have been prevented? What steps would you take to avoid such a situation? The reality is that the less stringent your routine maintenance standards are, the greater your chances of experiencing machine failure. We have identified five key areas where small steps will help any user ensure they get the longest life, greatest
environments. It is therefore imperative that preventive maintenance is carried out at the interval that occurs first (either running hours or the recommended period). It is also important to remember that the service intervals recommended by the manufacturer are based on the product operation under normal working conditions. If your compressor or generator is operated under extreme conditions (high dust or high ambient temperature for example) the manufacturer should be consulted for adjustment of the intervals accordingly. 3. Incorrect maintenance or repairs With many of our customers based in remote locations - such as those involved in drilling and construction, we often hear that it is more cost effective to have the operators or fitters perform all the maintenance work on the site's compressors and generators rather than getting it serviced by the manufacturer. However, not all fitters or operators have been trained specifically by the manufacturer on every piece of equipment on site. Also, they are often not up to date with the latest technical information on these products and consequently maintenance may be inadvertently carried out incorrectly. Therefore, when selecting a product for a remote location, ensure you buy from a manufacturer that has an extensive after sales service support coverage. When a company has a large number of service centres in regional areas and has technicians on the road, the cost of on-site maintenance and repairs will be greatly reduced through reduced travel time. 4. Use of non-genuine parts Do you buy the spare parts for your compressor or generator from the original equipment manufacturer of your machine? That is, are they backed by the service, support and warranty that only the OEM can provide? Parts supplied by anyone other than the OEM may appear to fit but chances are that they are incompatible with the machines they are used on or may be unsuitable for that particular application as the examples clearly show. They may also be of an inferior quality. Next time you buy spares, stop and think - is this a genuine part, will it protect my warranty and give me the best performance from my compressor and generator? Or is it a dangerous liability on site? 5. The issue of product quality To minimise your risk of being stuck with faulty or poor equipment, ensure you purchase from a reputable manufacturer that will offer aftermarket support and service for your equipment and a comprehensive warranty if something should go wrong. With new features being included on compressors all the time, maintenance is getting easier to manage. For example, a unique feature included on Atlas Copco's new Xsize 2 compressor range is an automatic notification function to indicate when routine maintenance is due. To make maintenance fast and easy and to save frustration, this automatic function indicates faults, their details and precise location for easy access and attention.
performance and highest reliability from their compressors and generators. 1. Preventative Maintenance Preventative maintenance on compressors and generators is often perceived to be expensive and unnecessary. Why? Because it is never compared to the cost impact of a break-down failure. When a breakdown failure occurs, the cost in terms of productivity and down-time are never calculated as the focus is always on getting the machine operational again. We recently surveyed the costs of break-down repairs versus preventative maintenance plan pricing and found that in most cases the customer would have been far better off if there had been routine maintenance according to the recommended schedule. If the intention is to save money by not carrying out routine maintenance, it could very well prove false economy to do so. In fact, you may want to check with your OEM about the service plans they can offer you. 2. Service Intervals As with a motor vehicle, compressors and generators need to be maintained at regular intervals regardless of the running hours. Typical maintenance intervals would be 500 hrs OR 6 months, Which ever occurs first. This is due to the fact that certain elements in the machine degrade, like the oxidation of oil, over time regardless of whether the machine is running or not. Compressors and generators used in applications such as construction, abrasive blasting, concrete pumping, stand-by power, etc. don't clock up the same quantity of hours as similar machines operating in production
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Hanson Aggregates Marine also commissioned Marine Software to construct each vessel's database using the hull & machinery class master lists, together with importing all existing maintenance history directly into MPMWin prior to installation. Marine Software's Office Planned Maintenance system will be used by Hanson to receive regular data transfers from each vessel via email or floppy disk. Shore-based technical superintendents can seamlessly review any ships database to ensure all maintenance schedules are strictly adhered to. In other news, Stena Line purchased Windows upgrades to Marine Software's DOS based Planned Maintenance system on board Stena Transfer, Stena Transporter & Stena Partner, all operating on the Harwich/Europort route. Stena Line also purchased a new office based system to monitor fleet maintenance ashore for these vessels. Marine Software modified the standard office based OPMWin software to manage Stena Line's approved suppliers list.
Marine Software web site http://www.marinesoftware.co.uk Email address info@marinesoftware.co.uk.
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Maintenance in Australia, 2003 to 2018 values the maintenance of Australia's infrastructure, nonresidential buildings and industrial facilities at $24 billion in 2002/03, with an estimated 50 per cent of this work outsourced ($12 billion in 2002/03). This represents a very important sector for the broader construction and maintenance industry and many of its major companies. Mr Hatcher says the biggest sectors in terms of maintenance activity are non-residential buildings, heavy manufacturing, roads, light manufacturing and mining. The annual value of maintenance in these sectors ranges from $2.6 billion in the mining sector up to $4.8 billion for non-residential buildings. Study leader and Senior Economist, Nigel Hatcher, believes all sectors of maintenance activity will move through a cyclical pattern this decade, with industrial sector maintenance (particularly mining), commercial building, roads, railways and other infrastructure all tied to movements in the Australian economy. With improved State Government revenues expected mid-decade, public infrastructure maintenance programs are expected to benefit from improved funding availability. Industrial maintenance will also rise, as companies gear up for the coming boom in demand, as their profitability surges and, ultimately, as new investments come onstream. Commercial building maintenance will also increase substantially as occupancy improves and incomes to building owners surge. But Mr Hatcher expects a downturn for most maintenance sectors to follow, starting in 2007/08. Maintenance in Australia, 2003 to 2018 has identified a trend in maintenance activity towards outsourcing within the framework of the Alliance model, which involves open-book, joint responsibility arrangements. BIS Shrapnel predicts that most major maintenance projects in Australia likely to converge around this model in the next five to ten years. Alliance contracts are estimated to currently represent 21 per cent of all outsourced maintenance work. The Alliance model will continue to address some of the problems evident in outsourcing in the 1990s, such as loss of control, cost blow-outs, difficulty in monitoring and contractual disputes, and will ultimately encourage increased outsourcing of maintenance. Maintenance in Australia, 2003 to 2018 reports that the proportion of work contracted-out has plateaud in most sectors, in most states. In the Government sector, New South Wales and Queensland are unlikely to increase their proportion of outsourcing much further, and local government is expected to continue to retain most of its maintenance in-house. Prospects for further expansion of out-sourcing of maintenance in the industrial sector will also be hampered by the concern of some companies with using contractors. Looking ahead, Maintenance in Australia 2003 to 2018, forecasts the next period of government spending growth to focus to some degree on maintenance activities. This follows stagnant, and in some cases declining, maintenance funding in recent years, especially in areas such as education, hospitals, railways and defence facilities. The industrial sector is expected to experience especially strong growth in maintenance activity over the next four years, with growth in mining sector maintenance forecast to average 8 per cent per annum in the four years to 2006/07. The key to strong growth in the industrial sector is the expected booming
market conditions that will see increased capacity utilisation, and therefore an increased maintenance requirement.
The Sectors
Roads Road maintenance activity is forecast to continue its growth (following flat activity in 2001/02) and peak in 2005/06. Growth in this sector will be driven primarily by increased State Government expenditure on arterial roads. The expected end of the Roads to Recovery program after 2005/06 and decreased State Government spending on arterial roads during the economic downturn will cause roads maintenance activity to decline in 2006/07 and in 2007/08. Railways Spending on railways maintenance has begun a slow increase following more than a decade of decline. BIS Shrapnel expects rail maintenance activity to once again pick-up in 2005/06, following a slowdown in 2003/04. Ports With new construction expected in East Arm Port (Northern Territory), Harriet Pt Port Facility (Western Australia), Newcastle (New South Wales), Westgate (Victoria) and possibly Port Botany, maintenance expenditure in the ports sector is forecast to increase significantly in the coming five years. Water and Wastewater Renewals expenditure has picked up strongly since the lows of the 1990s, but is still considered to be quite weak compared to the requirements across the water sector. BIS Shrapnel is forecasting growth to accelerate during the coming four years, peaking in 2006/07 before suffering a setback in 2007/08. Electricity Maintenance spending in the electricity sector suffered a major downturn in the early 1980s. During the past four years, BIS Shrapnel estimates that the maintenance market has begun to expand again. Additions to the underlying asset base, the ageing of assets and a major round of periodic maintenance in the coming five years will encourage further expansion in the market. Gas Pipelines BIS Shrapnel estimates that maintenance spending in the gas pipelines sector has picked up in the past five years due to substantial investment in new pipeline infrastructure. During the coming five years, continued strong growth in maintenance is expected with ongoing additions to the asset base and the increasing use of gas as a fuel source being the drivers. Telecommunications Australia's telecommunications sector has grown rapidly over the past decade. A major slump in the world economies and technology sectors has directly impacted on investment and maintenance spending in the telecommunications sector, with a further decline
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forecast for 2003/04. A tentative upturn is then expected in the three years to 2006/07 before another deterioration in 2007/08. Defence The impact of a declining facilities allocation from the Federal Government and falling levels of transfers from other programs, will see a significant decline in defence facilities maintenance expenditure in 2003/04 and 2004/05. Modest increases in maintenance funding are expected as the economy improves mid-decade. Mining A decline in maintenance activity occurred in the late 1990s and early 2000s, coinciding with a surge in new mining investment, the closure of some old mines and weakening demand. Maintenance activity levels are slowly rising, with stronger growth expected through 2004/05 to 2006/07. Heavy Manufacturing Maintenance expenditure in this sector grew strongly in 2001/02 before contracting slightly in 2002/03, with a strong year of output growth allowing less downtime for maintenance. The heavy manufacturing sector will continue to experience strong growth in 2003/04 before entering a slowdown between 2004/05 to 2006/07 and dropping further in 2007/08. Light Manufacturing BIS Shrapnel believes maintenance expenditure in the light manufacturing sector slowed in 2002/03 due to the impact of the drought on the Food, Beverages and Tobacco sub-sector, and tariff reductions on the Textiles, Clothing and Footwear sub-sector. A slight increase in maintenance is forecast for 2003/04, accelerating in 2004/05 and 2005/06. Non-Residential Buildings BIS Shrapnel expects maintenance expenditure growth across all sub-sectors of non-residential building to be fairly well aligned over the next few years. Maintenance expenditure is forecast to increase in the three years to 2005/06 before declining modestly in 2006/07 and 2007/08.
www.bis.com.au
He said IFS Applications would replace the company's existing systems and serve as the new platform for Hawker Pacific's future growth, integrating all core business processes into one system. "To stay competitive in the rapidly changing aerospace market you've got to constantly identify new opportunities for increasing operational efficiency and providing superior customer services," Mr Bisson said. "IFS Applications provides us with an integrated MRO and product sales solution that will help us to become more efficient and competitive by managing three critical business areas - customers, products and resources," he said. Mr Bisson said Hawker Pacific had been attracted to the IFS Applications solution because of its proven track-record in handling MRO processes for customers such as the Joint Strike Fighter project, the Eurofighter consortium, BAE Systems and Saab Aerospace. IFS Applications is also in service with the UK Ministry of Defence and the Royal Norwegian Air Force. The company has alliances and partnerships including GE Engine Services, Northrop Grumman. With 13% of the world market for services and maintenance systems, IFS is the market leader, according to the US analyst, ARC.
www.ifsworld.com
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Presented by Len Bradshaw, EIT, Australia. Following the very successful earlier planned maintenance seminars we are pleased to announce the seminars will be conducted again in 2004. The seminars include the following 1 day courses:
Covers the life cycle phases: design, development, production, test, operation and support. The methodology basically consists of the following tasks:
PLANNED MAINTENANCE & MAINTENANCE PEOPLE ADVANCES IN MAINTENANCE PLANNING MAINTENANCE MANAGEMENT & ASSET MANAGEMENT
Venues for the Australian 2004 PM seminars are as follows: Perth 29 5 9 26 23 31 March 2004 7 May 2004 28 May 2004 11 August 2004 25 August 2004 Gold Coast Melbourne Gladstone Sydney -
Conduct the necessary reliability and safety analyses Collect and analyze existing failure data Build-up the maintenance trees with failure rates and distributions Determine the (initial) maintenance concept using the above data and optimize:
info@bqr.com www.bqr.com Web Page:
Email:
- Machinery Health Management Conference RW2004 will help you improve machine reliability and increase production capacity at your plant. Structured for both CSI and nonCSI users. 26th - 28th May 2004, Novotel St. Kilda, Melbourne, Australia Email: Web Page: info@maintsys.com.au www.maintsys.com.au
For further information contact mail@maintenancejournal.com or see our web site at www.maintenancejournal.com
DIY Asset Condition Assessment workshop. Topics are strategic lifecycle and maintenance planning, asset compliance, conformance and condition. ACA Software licence. Sydney Brisbane Adelaide Auckland Email: Web Page: 4th and 5th of May 2004 11th and 12th May 2004 18th and 19th May 2004 25th and 26th May 2004 16th and 17th June 2004 npaul@mcp-cg.com www.assetconditionassessment.com Melbourne -
MARCON 2004
Impacting Your Business with Maintenance and Reliability International Conference for all - specialists, practitioners, educators, students, uninitiated. Three parallel tracks: New Technology; Best Practices/Case Studies; Asset Management May Email: Web Page: 2 - 5, 2004 Knoxville, USA mrc@utk.edu www.engr.utk.edu/mrc
Carlton Crest Hotel, Melbourne, Australia 26th & 27th February 2004 This conference outlines the best tools and strategies that can assist you to manage your people in the quest for World Class Maintenance. It focuses primarily on maintenance workforce and partner relationships development to attain your organisation's corporate productivity goals. Maintenance Journal subscribers receive a 10% discount. www.marcusevans.com.au/conference_companion/384e.pdf email marketing@marcusevansau.com call Chris Low at marcus evans on tel: 61 (2) 9223 2137.
This is another annual favorite amongst KDR Creative Softwares clients, where KDR staff provide formal training on recent software updates and enhancements. 16th, 17th December 2004 Email: Web Page: www.kdrinc.com www.kdr.com.au Melbourne Australia gmontgomery@kdrinc.com
Introduction to TPM3
4 & 5 March 2004 9 & 10 March 2004 11 & 12 March 2004 18 & 19 March 2004 25 & 26 March 2004 1 & 2 April 2004 ctpm@ctpm.org.au www.ctpm.org.au 21 & 22 July 2004 10 & 11 August 2004 12 &13 August 2004 28 & 29 July 2004 4 & 5 August 2004 18 & 19 August 2004
Learn how to use Equipment Performance (OEE) as the driver for all employees to achieve World Class Performance Auckland Adelaide Perth Brisbane Sydney Melbourne Email: Web Page:
Off campus learning programs, full year units, using web-enhanced delivery. Four qualifications, including Masters degree. Open to graduates and non-graduates. Residential Schools: Melbourne, 29 Feb; Churchill, 27 September (Australia); Knoxville (USA) 22 August.
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ray.beebe@eng.monash.edu www.gippsland.monash.edu/gse/postgrad.shtml
Invest in RCA methodology for in-house sustainability - PROACT RCA in Train-the-Trainer format for frontline operators. Throughout the year at Hopewell, Virginia, USA Email: Web Page: info@reliability.com www.reliability.com
Reliability 2004.
ARMS Reliability Engineers Annual Reliability Seminar. Radisson Resort on the Gold Coast Australia Mon 27th Sept - Fri 1st Oct 2004 ARMS Reliability Engineers Ph 61 0 3 5255 5357 Fx 61 0 3 5255 5778 mbell@reliability.com.au
Maintenance and reliability practitioners are welcome to attend Strategic Corporate Assessment Systems Pty Ltd's annual Reliability Conference, to be held at the Manly Pacific, Sydney, Australia 24th 25th February 2004. Strategic's conference represents an ideal opportunity to meet and exchange ideas with a large number of reliability professionals from a range of industries. Attendance is not limited to RCM Turbo or SOS users. www.strategicorp.com or contact Strategic on 03 9455 2211.
In depth PROACT workshop for Principal Analysts seeking factual RCA methodology to eliminate chronic failures in process and/or equipment. Throughout the year at Hopewell, Virginia, USA and also at September 14-15, 2004 Email: Web Page: Dallas, Texas USA info@reliability.com www.reliability.com
Aquip Systems and Blakers Pump Engineers will be running their successful pump reliability workshop with new ideas to share on condition based monitoring. Perth, Western Australia, March 2004 (Further dates TBC) Email: Web Page: sales@aquip.com.au www.aquip.com.au
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Maintenance
2004 Seminars
Course One Course Two
Maintenance Planning
[Advertiser] [Advertiser] Maintenance Management Success & Excellence in Advertisement Full Page Full &Page Advertisement Maintenance Asset Management 83 83
Course Three
Attend just one, two or all three of these one-day courses.
Venues
Perth
29-31 Mar 2004
Gold Coast
5-7 May 2004
G Major Revisions & Updates for the 2004 Maintenance Seminars G Detailed Seminar Notes in Hard Copy G Plus a CD of Hundreds of Pages of Case Studies and Maintenance Related Facts (400mb of Information) G Each seminar provides opportunities to discuss with other practitioners improved ways of managing and performing maintenance activities
PRESENTED BY
Melbourne
26-28 May 2004
Len Bradsha w
ORGANISED BY ENGINEERING INFORMATION TRANSFER PTY LTD AND THE MAINTENANCE JOURNAL
Gladstone
9-11 Aug 2004
Sydney
23-25 Aug 2004
For more information see: www.maintenancejournal.com Or Email: mail@maintenancejournal.com Phone: 03 5975 0083