Maintenance Engineering & Asset Management

Module M02
MAINTENANCE ORGANISATION

SHORT/IN UNIT ASSESSMENT

Name: Quiroz Hernn

Company: Ternium Siderar

1. Organisation
The resource structure for Ternium Siderar Steel Workshop (Appendix 1) is
mostly conforms to the Traditional Structure
1st line maintenance provided by the 4 shift team plant base. Each group
has a supervisor and work in coordination with the operators. They are
the responsible of the reactive work. If there is a major problem the
cascade through 2nd and 3rd lines occurs.
2nd line is also plant base. They work dayshift. They are responsible of
the Preventive maintenance and Testing/Inspection.
3rd line: We have local workshop and Central workshop. The local
workshop is plant base and manages the specific Steel Workshop
contracts. But when there is a major shutdown, a major refurnish or a
contract that is common for the others production units the cascade
trough the Central Workshop occurs.
Issues
High level of decision making.
Quick reaction at firs and second line.
Clear visibility at high level of workload and long term problems
Production and maintenance department run as separate departments.
Tendency to cause us and them attitude between production and
maintenance teams.
a tendency to man the first line crew for the maximum workload peak,
leading to under-utilisation most of the time.

2. Which Technicians are responsible for the 1st, 2nd and 3rd line
activities?
1st line: The Steel Shop Maintenance Manager is the main responsible of the firs
line activity. The first line also works in coordination with the operators
and the 2nd line.
nd
2 line: The second line reports to the mechanical and electrical assistance
respectively.
3rd line: The local 3rd line reports to the mechanical assistance. In addition to this
it works in coordination with the Central Workshop Department.
Furthermore the Central Workshop Department fixes the politics for the
whole Siderar Workshops. This department is the responsible of the
outsourcing workshops and has the decision of insourcing or outsourcing a
work.

3. Who is responsible for planning? How is good co-operation with

production planning achieve
The planer supervisor is the responsible for the planning of the Steel Workshop.
He reports to the Logistic department. He works for the steel workshop
maintenance manager in matrix way.
The planer supervisor, the steel workshop maintenance manager and the
operator manager work together in order to optimize the production windows in
coordination with the work labour demand for the whole plant.

4. How does the organisation ensure that the engineer standards are
preserved? Who is responsible for this?
In the Ternium Siderar Maintenance Organisation the Reliability Department, The
Reliability Engineer and the Mechanical and Electrical assistance are the
responsible to preserve the engineer standards.
In the SAP system, the 2nd line supervisor has to choose between simple or
complex work. In the case that the work is Complex the responsible for

coordinate that work is the Mechanical or Electrical assistance respectively. They

are the responsible for the security and technical matters.
Furthermore when there is a necessity of modifications of any engineering draw,
new drawing, new material or a new design; the 2nd line make the solicitation to
the reliability engineer who is the responsible to implement it. The reliability
engineer depends from the Reliability Department who fixes the reliability politics
for the whole plant. This department contracts the calculation or new design to
the foreign suppliers.
5. What is the flexibility between production and maintenance?
Ternium Siderar is a steel factory of 5000 direct workers and 2500 in-direct
workers (contract labour). Because of this the Trade Union is a very important
stakeholder and has a big influence in the labour politics. Appear from that there
are some adjustments that the production workers make like the changes or
calibration. These kinds of work are always related with the set up of the line.
Related to lubrications activities, they are all performed by maintenance people.
In general we can consider that production has a little flexibility and carry out a
very little part of the maintenance activities. (less than 2%)
6. Do you have multi-disciplined maintenance supervisors?
The shift supervisor is multi-disciplined maintenance supervisor. They coordinate
the fitters, electrical and instrument people.
Depending on the process the 2nd line supervisor could be multi-discipline
supervisor like is the case of the Ladle Furnace (LF) line.
7. How many different trade groups do you have?
In our company we have only two trade union group. One for the Supervisors
and the rest of the people associated with the UOM trade union group.
8. How are the key interfaces with other departments covered?
In our organisation the official interface is the maintenance manager of every
department. They have frequently meeting with the others manager department
which is coordinated by the Ternium Siderar Maintenance Manager.
In addition to this, every maintenance manager department has a weekly
meeting with the production managers.
What is more, nowadays with the e-mail, the blackberry and different kind of
communications there are no barriers to make interfaces at different levels with
other departments. This is the real and informal interface. As we learnt in M01,
The formal organisation has no being design to the actual situation in which the
communication pass trough different levels without permission.
9. What routine meetings take place between maintenance and other
groups?
Monday Production-Maintenance Meeting: Every Monday morning there is a
meeting between the production manager, production department managers and
the maintenance manager. In this meeting they review the most important
events that happened during the previews weekend. They also coordinate the
future production windows timetable and if is necessary to make some changes.
Friday Production-Maintenance Meeting: Every Friday afternoon there is a
meeting in which all of the maintenance and production responsible has to assist.
In this meeting the production manager informs the news of the plant, the future
production programs. At the end of the meeting every 2nd line maintenance
responsible explain how is the plant for the weekend.
Monthly Production-Maintenance Meeting: Once a month there is a meeting
between all the production responsible, the 2nd line maintenance responsible and
the maintenance and production managers. In this meeting we review the major

downtime for each production unit and the continuous improvement modification
in order to avoid this problem for the future. We also review the KPIs for every
business unit (production and maintenance)
Diary Planning Meeting: we have a diary planning meeting between
maintenance and production in which we analyse the diary plant downtime and
we accord the plan work.
10.Are any routine maintenance reports produced? Are any routine
production reports produced?
Nowadays we have all of our reports in the intranet system. This is the official
place for all reports of the company (It also include the production and
maintenance reports). All of them are daily actualized.
11.What ad-hoc or on-demand meetings take place between
maintenance and other groups?
We have project meeting, security meeting, cost meeting, predictive meeting,
quality meeting, store meeting, reliability improvement meeting, etc.
12.What computer systems are in use within the maintenance
department?
For the whole company we have SAP system (store, purchasing, cost, finance,
human resource and maintenance department). In the case of production they
have a ad-hoc programme in order to program and control the production.
13.What are the maintenance objectives? Do the key performance
indicators align with these objectives?

Effectiveness Measures
-

Direct Maintenance Cost - Cost vs Budget (long term control)

Diary Plant Downtime (short term control)
Six Month Pareto Downtime (long term control)

Efficiency Measures
- N Job Completed / Month or day (long / short term control)
- Workshop Backlog (short term control)
- Turnover of spare parts (long term control)

Safety Measures
- Frequency Index (FI), Gravity Index (GI) (long term control)
- Frequency Index Benchmark (long term control)

Consideration
In Ternium Siderar we have a diary planning meeting between maintenance and
production in which we analyse the diary plant downtime. Apart from this, in the
workshop, the maintenance department reviews the N Job completed/day and
the backlog. The rest of KPIs are being monthly analysed between maintenance
and production department.
Each KPIs has standard, targets and it is automatically obtain from the systems.
(SAP, QNX).
Everybody into Ternium Siderar could access to maintenance KPIs (Free Public
Access).

Appendix 1: Ternium and Steel Shop Maintenance Organisation

Ternium
Maintenance
Manager

Blast Furnace
Maintenance
Manager

Steel Shop
Maintenance
Manager

Rolling Mills
Maintenance
Manager

Central
Workshop
Department

Logistic
Department

Reliability
Department

Steel Shop
Maintenance
Manager

Operators
Manager

First Line
Maintenance Shift

Operators
(4 x Shift)

4 Supervisors
24 Fitters
20 Elec.

Mechanical
Assistance

Local Workshop

1 Engineer
6 Supervisors
50 Fitters
10 Elec.

Electrical
Assistance

Converters
Mechanical
Supervisor

Planer Supervisor

Reliability
Engineer

Converters
Electrical
Supervisor

6 Fitters

4 Electrics