Sie sind auf Seite 1von 58

Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013

Workshop

LESSON OUTLINE

Defining Benchmarking
Defining Core Competencies
Types of Benchmarking
BENCHMARKING- Developing a Maintenance Strategy
BEST PRACTICES Conducting a Benchmarking Project

Terry Wireman
Vesta Partners, LLC
vestapartners.com

USA
+1 203 517 0400
CANADA
+1 289 337 1793
EUROPE
+31 0 70 220 9720
AUSTRALIA
+61 3 8676 0672
SOUTHEAST ASIA
+65 6622 5643
Real. World. Experience.

BENCHMARKING BENCHMARKING...

The search for industry Best Practices which lead to Superior


Performance
An ongoing process of measuring and improving practices and
processes against the best that can be identified worldwide
Keys:
Must not accept constraints
• Best Practices
Must “Think outside the box”
• Superior Performance
The more innovative the ideas - the greater the potential
rewards

Xerox Corporation
Real. World. Experience. Real. World. Experience.

1
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

Benchmarking Benchmarking
a Definition
It is the process of continuously Benchmarking,compared with
competitive analysis, provides
comparing and measuring an organization
a DEEP understanding of the
with business leaders anywhere in the processes and skills that
create superior performance.
world to gain information that will

help the organization take action to

improve its performance.

Real. World. Experience. Real. World. Experience.


WSJ - 8/26/91

BENCHMARKING
Benchmarking
A Definition Benchmarking sources “Best Practices” to feed continuous
improvement

) The search for BEST Research findings show that major innovations in any sector
PRACTICES that will come from outside the industry sector
lead to superior
performance. The need to develop an external perspective has never been
more crucial

Real. World. Experience. Real. World. Experience.


Robert Camp

2
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BENCHMARKING COMPETITIVE ANALYSIS

During the past decade, competitive analysis has helped


companies improve their market positions Shows how firms compare with their competitors
Benchmarking takes over where this ends
From Parity to Superiority The technique does not show HOW to improve performance
Learning from the Best can help your company
Note that there is a definite difference between a competitive
analysis and a benchmarking project…

Real. World. Experience. Real. World. Experience.

COMPETITIVE ANALYSIS... WHAT IS YOUR GOAL???

…unlikely to lead to or highlight significant breakthrough If the goal is only to meet some industry standard, then there is
opportunities that could change long entrenched paradigms of little to gain from investing to be superior...
the vertical market

Paradigms are similar for look-alike businesses in similar


markets

Real. World. Experience. Real. World. Experience.

3
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

DOCUMENTATION... ENABLERS...

Most organizations are hesitant to document their findings


Enablers and Critical Success Factors must be understood for any
permanent improvement to be achieved Although hard processes are compared, an essential part of of the
approach is the necessity to analyze the management skills and
This requires internal data collection, as well as data collection from attitudes that combine to make the systems operate effectively.
the benchmarking partners This hidden narrative is as important during the benchmarking
exercise as are the visible factors

Real. World. Experience. Real. World. Experience.


Best Practice Benchmarking - Codling

ENABLERS…
Enablers
These are behind the scenes or hidden factors (enablers..) that
allow the development or continuation of best practices.
Leadership – Motivated workforces – Management vision and focus
A broad set of activities or are examples of enablers.
conditions that help to enhance
the implementation of a best
practice

Real. World. Experience. Real. World. Experience.

4
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

Best Practices Best Practices

) Leadership, management, or ) They know no border of


operational methods or political, industrial,
approaches that lead to or geographical dimensions
exceptional performance

) NOTE:
Relative, not absolute

Real. World. Experience. Real. World. Experience.

Critical Success Factors INTERNAL ANALYSIS...

You must have a thorough understanding of your internal processes


Characteristics, conditions, for it to be possible to recognize and integrate the differences and
innovations that will be found in “Best Practice” companies.
or variables that have a direct
) influence on the customer's
satisfaction with a specific
business process.

CSF's represent the few areas in


which satisfactory performance is
) essential for a business to be
successful and flourish.

Real. World. Experience. Real. World. Experience.

5
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

LESSON OUTLINE BENCHMARKING…

Defining Benchmarking Used to improve Core Competencies


Defining Core Competencies So…
Types of Benchmarking Is Maintenance Considered a Core Competency?
Developing a Maintenance Strategy Is it “Core” to your business?
Conducting a Benchmarking Project

Real. World. Experience. Real. World. Experience.

BENCHMARKING - BENCHMARKING -
CORE COMPETENCIES CORE COMPETENCIES

Core Competencies:
• Key Business outputs or processes through which an organization Key business processes represent core functional efforts and are
distinguishes itself positively usually characterized by transactions that directly or indirectly
• Distinctive - A strength that sets an organization apart from its influence the external customer’s perception of the company.
competition • Procure and Support Capital Equipment
• Examples are expert maintenance, low operating costs, and cross- • Manage and Support Facilities
trained labor

Operations Management - R. Schonberger - 1997 The Benchmarking Workbook - G. Hines - 1992


Real. World. Experience. Real. World. Experience.

6
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BENCHMARKING -
CORE COMPETENCIES
Benchmarking Focus
Core Competencies

) Must have a wide application


Core Competencies should impact business measures:
in the company's business
• Return on Net Assets
• Customer Satisfaction
• Revenue per Employee ) Should make a significant
• Quality contribution to the benefits
• Asset Utilization perceived by the customer
• Capacity
) It should be difficult for
a competitor to quickly
imitate

Real. World. Experience. Real. World. Experience.


The Benchmarking Management Guide - APQC - 1993

Core Competency?

I am using core competencies


to refer to any aspect of the
business operation that results
in a strategic market advantage.

Developing Performance Indicators for Managing Maintenance – 2cd ed.


Real. World. Experience. Real. World. Experience.
Harvard Business Review (5/6- 90)

7
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

Expense Reduction SAMPLE MAINTENANCE SAVINGS


Efficiency Improvement

Expenses Throughput/
Throughput/ Availability
Availability Expenses Labor Materials
• $2M per year • $4M per Year
• Reactive • No Controls
• Estimated 20% red. • Estimated 20% Red.
• Potential = $400K • Potential = $800K

But what if we could do both?

Real. World. Experience. Real. World. Experience.

FINANCIAL OPTIMIZATION -
SAMPLE ASSET MANAGEMENT SAVINGS
THE ULTIMATE ROI

Lost Production/
Increased Uptime Increased Efficiency Availability
• $38M lost production • Compressors
• Reduction Possible o 57% & 65%
o 50% • Lost Production
Savings = $19M o $5.4M / Yr..

X
• Overhaul cost $450K Maintenance
• Payback 21.8 Days Cost
• Verified by accounting

Real. World. Experience. Real. World. Experience.

8
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

LESSON OUTLINE

Defining Benchmarking
SINCE... Defining Core Competencies
Types of Benchmarking
Developing a Maintenance Strategy
Conducting a Benchmarking Project

It is a CORE
Competency…..

Real. World. Experience. Real. World. Experience.

TYPES OF BENCHMARKING... TYPES OF BENCHMARKING...

Internal Internal
Interplant • Data collected easily
Divisional • Similar culture
Multinational • Similar organizations+
• Unlikely to result in major breakthroughs, but, should result in quick
Similar Industry
results and adequate ROI
Competitors • Can fuel the desire for more extensive benchmarking
Best Practice

Real. World. Experience. Real. World. Experience.

9
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

Process Benchmarking
Types of Benchmarking
Internal Studies
Compares similar operations
Competitive Benchmarking
for different units within an
Measures organizational performance organization
Focuses on Competitors
Select set of measures
Competitive Studies
Process Benchmarking
Compares specific processes
Measures discreet process performance used by direct competitors
Focuses on "Best of Best"
Uses "Best Practice" for process
Must Understand practice Functional or Industry Studies
Must adapt and apply to organization Compares similar processes
within the same broad industry

Generic Benchmarking
Compares similar processes
Real. World. Experience. Real. World. Experience.
independent of industry

TYPES OF BENCHMARKING... TYPES OF BENCHMARKING...

“Best Practice” Best Practice - (cont.)


• Must find the unarguable leader in the process being benchmarked • No single Best Practice company will be found
- regardless of industry sector or location
• Since reasons for benchmarking and practices being benchmarked
• Define “BEST”… will vary, “Best” companies will vary
Most Efficient?
o
• Insuring the “Best” requires systematic and thorough planning and
o Most Cost Effective? data collection
o Most Customer Service Oriented?
• Must determine criteria for “BEST”

Real. World. Experience. Real. World. Experience.

10
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

TYPES OF BENCHMARKING... BENCHMARKING - THE PROCESS

Conduct Internal Analysis


Of the Various types of Benchmarking… Identify Areas for Improvement
Find Partners
• Best Practice is Superior Make Contact, Develop Questionnaire, Perform Site Visits
o Provides the opportunity to make the most significant improvement Compile Results
o Provides the opportunity for the highest Returns On the Investment Develop and Implement Improvements
Provides the greatest potential for major breakthroughs
o
Do it again...

Real. World. Experience. Real. World. Experience.

BENCHMARKING EVOLUTION
Benchmarking
Step 1
• Practice with Internal Partners 4 Steps
Step 2 )
1. Plan the project
• Progress to “Better Practice” internal/external partners
Step 3 ) 2. Collect the Data
• Gradually move to benchmarking with the “Best”
) 3. Analyze the data for
performance gaps and
process enablers

) 4. Improve by adopting the


process enablers

Real. World. Experience. Real. World. Experience.

11
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BENCHMARKING EVOLUTION... Identifying Partners


Secondary Research
Early “Best Practice” benchmarking requires finding a partner who is Reliability Web - www.reliabilityweb.com
measurably better in the process
Plant Engineering and Maintenance
Once parity is achieved, begin searching for a still “Better” partner
Plant Services
Continued Steps lead to the ultimate “Best”
THERE ARE NO SHORTCUTS!! Maintenance Technology
Society of Maintenance
and Reliability Professionals

Association for Facilities


Engineering
Plant Engineering

Society of Manufacturing
Engineers
Institute of Industrial
Engineers
Productivity Press
Real. World. Experience. Real. World. Experience.

BENCHMARKING... LESSON OUTLINE

Successful benchmarking depends on cooperation between partners Defining Benchmarking


to be successful. Defining Core Competencies
Types of Benchmarking
Developing a Maintenance Strategy
Conducting a Benchmarking Project

Real. World. Experience. Real. World. Experience.

12
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BUSINESS DEVELOPMENT CASE DEVELOPING A VISION -

Most Companies Struggle with developing a vision of what


Develop the Business maintenance is, what it should be and how it contributes to the
• Mission – Vision Statements organization.

Organize to Execute the Business Plan


• Geographical and Reporting Structures
• Roles and Responsibilities
• Determine Staffing Levels
Develop a Performance Management System
• Determine Linkage necessary to connect the
maintenance and reliability business to corporate
business objectives (Profitability)

Real. World. Experience. Real. World. Experience.

MAINTENANCE ... LIFE CYCLE MANAGEMENT


1
Investment
2
Planning Project
Definition

What is it? Decommissioning

7 3
Supplier
Selection
Asset 8
Performance
Management

Project
4 Execution

6
MRO
Procurement 5
Asset
Real. World. Experience. Real. World. Experience. Maintenance

13
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

ASSET MANAGEMENT OVERVIEW ASSET MANAGEMENT OVERVIEW

SUPPORT THE ENTIRE LIFECYCLE OF THE ASSET

HQ

Plan

V.P. Operations
Maintenance Audit/
Retire
Engineering
Design/ Operations
Engineer

Acquire Maintain

Operate
Construct
Commission

Real. World. Experience. Real. World. Experience.

ASSET MANAGEMENT OVERVIEW

LINE OF SIGHT AND LIFE CYCLE COSTS


Determined

Incurred
$447 B

Real. World. Experience. Real. World. Experience.

14
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

Equipment
Life Cycle
Phases ASSET MANAGEMENT LINE OF SIGHT

Operations and Decommissioning


Design Phase Project Phase
Maintenance Phase and Disposal Phase

Production/ Elimination of
System/ Product
Construction Operations Equipment Specific
Management
Management Spares

Equipment
Product/ System Engineering and
Maintenance Retirement –
Design-Research Operations Analysis
Disposal

Manufacturing and
Engineering Design Spares and Regulatory
Construction
And Documentation Materials Requirements
Logistics

Documentation and
System/ Product Project Quality Final Documentation
Equipment Specific
Test and Evaluation Control And Storage
Training

Based on Life-Cycle Cost And Economic Analysis –


Benjamin S. Blanchard
(Professor of Engineering-Emeritus
at Virginia Polytechnic Institute and State University)

Real. World. Experience.

LIFE CYCLE DECISIONS TIMELINE STATUS

Does Finance What was it


Decommission
know that we Specify and designed to
and Disposal do? Oct/ Nov
deactivated the Design Mar 2011 Oct 2011 Feb 2012 Jun 2012 April 2013 2014 Feb 2014
equipment?

Details
on start
What are
the up issues May 2011 Sep 2011 CD2 DIS

operating Operate and Procure and Distribute WD2


For Ballot
February
WD2 Comments
conditions? Maintain
Build RCVD
2014?
CD1
For Comment

Real. World. Experience. Real. World. Experience. 60

15
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

STRATEGY PYRAMID

Vision

Mission

Goals

Strategies

Tactics

Action Plans
Developing Performance Indicators for Managing Maintenance – 2cd ed.

Real. World. Experience. Real. World. Experience.


62

DISCUSSION POINTS
VISION

How do you challenge a maintenance/ reliability organization?


A Vision must be compelling to the employees.
• How to challenge the employees??
• It should be “worthy”
Management speaking the vision
• It should challenge them to grow
• How?
Management must not only speak the vision, but must also live the
Maintenance
vision. o
o Operations
• Communicate it
o Executives
• Nurture and support it
• Empower employees to fulfill it Management living the vision
• How?
o Maintenance
o Operations
o Executives

Strategic Thinking – a Four Piece Puzzle


Real. World. Experience. Real. World. Experience.
63 64

16
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

VISION VS. MISSION – STRATEGY PYRAMID


THE DIFFERENCE

Vision:
• Vision is the big picture statement. It must be
powerful, summarized in one memorable or motivating Vision
sentence or phrase. It should be general in scope, not
Mission
restricting
Mission: Goals
• Mission is the answer to “What an I going to do about
my vision?” This is more general than specific. The Strategies
mission must inspire you and your customers. It
Tactics
points to the direction you are heading. It is not the
map, just the compass heading
Action Plans

Secrets of Power
Real. World. Experience. Marketing – George Torok Real. World. Experience.
65 66

BEST PRACTICES
WHAT ARE “BEST PRACTICES” IN MAINTENANCE? EVOLUTIONARY - NOT REVOLUTIONARY
Best Practices are critical success factors that enable a
company to achieve an optimum and effective Asset
Care Management process focusing on their Return on
Investment. Reactive
Preventive
Operator
Best Practices include, but are not limited to, areas such as Involved
Preventive Maintenance
Predictive
Inventory and Purchasing
Work Management T.P.M.
Predictive Technologies
Reliability Techniques
Total Productive Maintenance
Real. World. Experience. Real. World. Experience.

17
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

WE ARE SO DIFFERENT: BEST PRACTICES IN MAINTENANCE MANAGEMENT

Conventional Techniques don’t Apply to US!


Why Do Companies have Problems
Translation: Understanding Maintenance?
• NOT INVENTED HERE!  They don’t see the value of the maintenance function due
to the fact they have never learned to measure it.
 Since they don’t measure it, they can not manage it.
 Without this understanding, they can not comprehend
how their future hinges on maintenance / asset
management

Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Past Attempts… Atrocities…


 Many of these attempts to improve were
 Changing Organizational Structures
unsuccessful, simply because they were more of a
 Changing Reporting Structures
knee-jerk reaction to a problem.
 Upsizing
 Downsizing  They were never implemented as part of a long
 Contracting Out range strategic plan.
 Centralization  How to Start Developing a Strategic Plan??
 Decentralization
 Team structures

Real. World. Experience. Real. World. Experience.

18
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Strategic Business Planning Equipment or Asset


 Primary Steps for Maintenance Management:
Maintenance Management
 The Goals and Objectives are set A typical definition of Maintenance (Asset)
 The organizational structure is implemented Management is “the management of all assets
 The roles and responsibilities are defined owned by a company, based on maximizing
 The staffing and skill requirements are determined the return on investment in the asset”.
 Develop Performance Indicators
This encompasses the philosophies contained in
many of the more popular techniques currently
being utilized by companies today.

Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

The Maintenance Management Pyramid


The Maintenance Management Pyramid
Continuous
Improvement

Total
Financial
Productive
Optimization
Maintenance

Reliability
Predictive Operations
Centered
Maintenance Involvement
Maintenance

Technical and
Stores and Work Flow
CMMS Interpersonal
Procurement System
Training
Preventive Maintenance
Preventive Maintenance
Real. World. Experience. Real. World. Experience.

19
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

P.M. PROGRAMS
Preventive
Maintenance EFFECTIVE
is the heart of TPM
and the core of
every maintenance
strategy.

TPM for America, page 95 NOT EFFECTIVE

Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

PM Program Development The Maintenance Management Pyramid

 Basics - Inspections, Lubrications, & Adjustments


 Must be “Owned” by the maintenance, operations,facilities,
& engineering departments
 PM Program must be flexible
 All data must be recorded
Stores and
Procurement

Preventive Maintenance

Real. World. Experience. Real. World. Experience.

20
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Current Conditions
Best Practices
 Poor Service Levels  95 - 97% Service Levels
 100% accuracy of data
 Results in “Hoarding & Pirating”
 > 1 turn per year on inventory value
 Inaccuracies in Stock Counts  Elimination of non-moving spares
 Delays in Work Execution
 Reduction of slow moving spares
 Controlled Access
 No Tracking of Remote Stores  Consignment arrangements
 Results in excessive inventory  Strategic Partnering with suppliers

Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

The Maintenance Management Pyramid Work Order System Analysis

NOT SATISFIED

NOT USING W.O.

Stores and Work Flow


Procurement System

Preventive Maintenance SATISFIED

Real. World. Experience. Real. World. Experience.

21
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Maintenance Planners Craft Backlogs

USE PLANNERS KNOW BY CRAFT


“Correctly”

NO PLANNERS DON'T KNOW BY CRAFT


Or “Incorrectly”
Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

The Maintenance Management Pyramid Percent of CMMS Usage

160

140

120

100

% Utilization
80

60

Stores and Work Flow


CMMS
Procurement System 40

20

Preventive Maintenance 0

Real. World. Experience. Real. World. Experience.

22
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT SERVICE LIFE VS. DESIGN LIFE

Why is this important to a Maintenance Professional?

Without Data:
Everything is just
someone else’s
opinion.
Discussions are
when people have
facts.
Arguments are
when emotions
and opinions are
involved. ISO 15686

Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

The Maintenance Management Pyramid Education

If you think education is expensive;

Try to count the cost of ignorance.

Technical and
Stores and Work Flow
CMMS Interpersonal
Procurement System
Training

Preventive Maintenance
Real. World. Experience. Real. World. Experience.

23
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Importance of Training Training Value

80% of the skills of those With a good crew one would make
now working in technical the inspections; with a poor crew,
one would rather take a calculated
areas will be obsolete in risk of a failure up to a certain
three to five years. level of severity.

TPM for America, page 52

Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

The Maintenance Management Pyramid


Training Statistics
 Expenditures per employee - $649.00
 $607 – Low to $1,956.00 – High

 Percentage of payroll – 1.81%


 1.65% - Low to 4.39% High

 Employees per Trainer – 312 Operations


Involvement
 97 to 1 – Low to 396 to 1 – High

 Percentage of Expenditures to Outside Firms Stores and Work Flow


Technical and
CMMS Interpersonal
 25% was average – 31% was high
Procurement System
Training
 Classroom Training – 60% of time
 Technology Training vs. Total – 22% Preventive Maintenance
Real. World. Experience. Real. World. Experience.

24
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Operations Involvement The Maintenance Management Pyramid


 This aspect varies dramatically between companies
 Union Agreements, Skill Levels, Types of Industry, Age of
Equipment, and Staffing all impact the level of involvement
 Facilities will utilize “Occupant Involvement”
 Motive should not be “Downsizing”
 Focus on relieving maintenance personnel to perform higher Predictive Operations
level activities Maintenance Involvement

Technical and
Stores and Work Flow
CMMS Interpersonal
Procurement System
Training

Preventive Maintenance
Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Predictive Maintenance Cost of Maintenance


 Focus on eliminating all  Breakdown Maintenance
critical equipment
breakdowns  $17 - $18 per installed HP / YR
 Use the right techniques and  Preventive Maintenance
tools for the right equipment
 $11 - $13 per installed HP / YR
 Common tools include:
 Predictive / Condition Monitoring
Vibration Analysis
 $7 - $9 per installed HP /YR
Oil Analysis
Thermography
 Must capture data in CMMS
Real. World. Experience. Real. World. Experience.

25
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

The Maintenance Management Pyramid RCM Consists of …


Functions
Identify the potential
Functional failures problems
Root causes
Failure effects
Reliability
Predictive Operations
Centered
Maintenance Involvement
Maintenance
Based on the type of failure
Technical and Apply the
Stores and Work Flow
CMMS Interpersonal Develop an appropriate
Procurement System RCM
Training maintenance strategy
decision process
Preventive Maintenance
Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

RCM The Maintenance Management Pyramid

 RCM will help optimize the preventive and predictive


maintenance programs Total
 This insures companies optimize their investment in the Productive
Maintenance
PM/PDM programs
Reliability
 In addition to optimizing the maintenance resources, the Predictive Operations
Centered
Maintenance Involvement
equipment uptime increases and a corresponding increase Maintenance
in production occurs Technical and
Stores and Work Flow
CMMS Interpersonal
Procurement System
Training

Preventive Maintenance
Real. World. Experience. Real. World. Experience.

26
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Total Productive Maintenance TPM Definition

Operations Maintenance Design TPM merges total employee


Engineering
involvement, quality
improvement, and state of the
art maintenance technology to
Production
improve the equipment
Purchasing Equipment capacity utilization of a plant
Engineering
and the quality of the product.

Project
Inventory Management Engineering
TPM for America, Herb Stienbecker

Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

The Maintenance Management Pyramid Financial Optimization


 Once the maintenance and production
components of the organization are controlled
Total
Productive
Financial and focused, the next step is to optimize the
Optimization
Maintenance financial impact on all parts of the company.
Predictive Operations
Reliability  Since the data is available, the consideration of
Centered
Maintenance Involvement
Maintenance
all of the costs allow for an optimal financial
decision to be derived.
Technical and
Stores and Work Flow
CMMS Interpersonal
Procurement System
Training

Preventive Maintenance
Real. World. Experience. Real. World. Experience.

27
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Quality Costs MAXIMUM PROFITS


How Can Total Costs Assist in Maximizing Profits?

Costs Consider the Following Areas:


1. Whether to Perform PM or Run to Failure
Total Cost Energy Costs 2. When to Perform Maintenance on Equipment
3. Whether to use Predictive Maintenance on Equipment
and How Much to Invest
4. Whether to Replace or Repair Capital Assets
Lost Per. Cost 5. Which Type of Equipment to Purchase
6. How Many Units of a Critical Spare to Keep in Stock
Maint. Cost 7. How to Set the Reorder Level and Reorder Quantities
for a Stock Item

Real. World. Experience. Time Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

The Maintenance Management Pyramid Continuous Improvement –


Continuous
The Key to Competitiveness
Improvement

Total
Productive
Maintenance
Financial
Optimization
“Best is the
Reliability
Predictive
Maintenance
Operations
Involvement
Centered
Maintenance enemy of
Better”
Technical and
Stores and Work Flow
CMMS Interpersonal
Procurement System
Training

Preventive Maintenance
Real. World. Experience. Real. World. Experience.

28
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Benchmarking Definition Types of Benchmarking…


Of the Types of Benchmarking…
 “It is the process of continuously comparing and
measuring and organization with business leaders  Best Practice is Superior
anywhere in the world to gain information that will  Provides the opportunity to make the most
help the organization take action to improve it’s
significant improvement
performance.”
 Provides the opportunity for the highest

Returns On the Investment


 Provides the greatest potential for major

breakthroughs

Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Attitude? Approach #1
 It appears that each refinery’s performance reflects  Repair Focused Organizations
the collective attitude and spirit of the refinery
 This organizational style embraces the
personnel more than any other single factor examined.
philosophy that equipment will fail and the
mission of the maintenance force is to
respond quickly to equipment in distress.
 No opportunity to examine failure causes

 When not fire fighting, focus on low priority

work to stay busy.

Real. World. Experience. Real. World. Experience.

29
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BEST PRACTICES IN MAINTENANCE MANAGEMENT BEST PRACTICES IN MAINTENANCE MANAGEMENT

Approach #2 Hierarchical Performance Indicators


Corporate
 Reliability Focused Organizations Indicators
 Maintenance repairs in this style are viewed
Financial
differently. They are not expected to happen Performance Indicators
but viewed rather as exceptional and resulting Efficiency and Effectiveness
from some flaw of maintenance policy and Performance Indicators
management focus. Tactical
Performance Indicators
 The specter of a recurring failure and its

incumbent cost is unacceptable. Functional


Performance Indicators

Real. World. Experience. Real. World. Experience.

BEST PRACTICES IN MAINTENANCE MANAGEMENT BUSINESS DEVELOPMENT CASE

Conclusion
Develop the Business
 Achieving “Best Practice” is being the best in your • Mission – Vision Statements
business. Organize to Execute the Business Plan
• Geographical and Reporting Structures
 It is the ability to compete with any other company in
• Roles and Responsibilities
your business in product/service price, quality, and • Determine Staffing Levels
timeliness of service. Develop a Performance Management System
 It is an attitude accompanied by business results. • Determine Linkage necessary to connect the maintenance and
reliability business to corporate business objectives (Profitability)
 Maintenance is a big business –
 Are you striving for “Best Practice” Status???

Real. World. Experience. Real. World. Experience.

30
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

OPTIMIZED BUSINESS ORGANIZATIONS BUSINESS DEVELOPMENT - STEP 1

To properly enable an organization, all of the following must be Determining what the organization has for goals and objectives
understood:
• Business Objectives
• Organizational structures
• Roles and responsibilities
• Staffing levels
This methodology will insure an organization will be optimized

Real. World. Experience. Real. World. Experience.

GOALS & OBJECTIVES WHAT IS THE OBJECTIVE FOR THE


MAINTENANCE/ RELIABILITY BUSINESS?

“FIX IT When It Breaks” - - Is not a goal for the maintenance


department
“If it Ain’t Broke Don’t Fix It” is not the Departmental Philosophy for The objective is to maintain the capability of the
Maintenance. company’s assets to perform their designed function
thereby maximizing the Company’s Return on
Investment in the asset(s)

With this in mind, “Who is the “Real Customer” for the


Maintenance Business within any Company?

Real. World. Experience. Real. World. Experience.

31
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

WHAT IS THE OBJECTIVE FOR THE MAINTENANCE/ WHAT IS THE OBJECTIVE FOR THE MAINTENANCE/
RELIABILITY BUSINESS? RELIABILITY BUSINESS?

2. Maintenance should be performed utilizing methodologies that 3. Reduce energy consumption to as low as level as possible.
make it as efficient and effective as possible.
• Lean
• Low Cost

Real. World. Experience. Real. World. Experience.

OBJECTIVES FOR THE


MAINTENANCE/ RELIABILITY BUSINESS
Maximum throughput/ availability at the lowest cost, the highest quality, and
the optimum safety standards
Identify and implement cost reductions
Provide accurate equipment maintenance records
Collect necessary maintenance cost information
Optimize maintenance resources
Optimize capital equipment life
Minimize energy usage
Minimize inventory on hand
Responsibility for Environmental, Safety and Health.

Real. World. Experience. Real. World. Experience.

32
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BUSINESS DEVELOPMENT -STEP 2 MAINTENANCE ORGANIZATIONS

Determine the correct organizational structure for the function


Geographical and Functional
Centralized Area Combination

Higher Lower Optimum


Utilization Utilization Utilization
Slower More Rapid Optimum
Response Response Response
Labor Pool Equipment Optimized
Ownership Resources

Real. World. Experience.

WHEN TO USE??? TYPICAL PRODUCTION


CENTRIC ORGANIZATIONAL STRUCTURE

Central - Geographically compact sites


Area - Geographically dispersed
Combination - Large sites where areas cannot cost effectively utilize
all skilled labor resources required

Real. World. Experience.

33
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

TYPICAL ENGINEERING THE “SHOT GUN” ORGANIZATION (SBU)


CENTRIC ORGANIZATIONAL STRUCTURE

BUSINESS DEVELOPMENT -STEP 3


TYPICAL
MAINTENANCE CENTRIC ORGANIZATIONAL STRUCTURE
Determine the roles and responsibilities that must be developed to
meet the goals and objectives based on the organizational structure.

Real. World. Experience.

34
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

MAINTENANCE SUPERVISOR OR COACH MAINTENANCE PLANNER

Directs maintenance work force providing on-site expertise Plans, Schedules and Coordinates corrective and preventive maintenance
activities by studying and managing work requests, analyzing job
Ensures work is accomplished in safe, efficient manner requirements, and determining materials, equipment and labor needs (i.e.
Coordinates work planning and scheduling with the planner blueprints, tools, parts, craftsmen) in order to complete maintenance
ensures quality assurance of work economically and efficiently.
Develops a weekly maintenance schedule and ASSISTS the Maintenance
Ensures equipment availability is adequate to meet profit plan
Foreman in determining job priorities. Makes changes and adjustments to the
Works with Plant/Production foreman to ensure first line maintenance is schedule and work plans after a review with the Foreman. Maintains a
being done by operators complete and current backlog of work orders.
Verifies the qualifications of hourly personnel and recommends training Assures CMMS software data files are complete and current by gathering
as needed equipment and associated stores information of the entire Plant/Lease and
developing standardized codes for equipment, stores, and task/craft
Enforces Environmental Convenant
assignments for all maintenance activities.
Focuses downward and is highly visible in the field Controls inventory by ordering, issuing, returning, adjusting, and receiving
Champions proactive maintenance verses reactive maintenance stores.
Administers the Union Collective Bargaining Agreement Identifies, analyzes, and reviews maintenance problems with Maintenance
Engineering and revises the maintenance management program as necessary
Monitors CMMS to improve and enhance plant and field operations. Assists in the education
Implements P.M. & P.D.M. Programs of maintenance management to operations personnel.
Real. World. Experience. Real. World. Experience.

THE MAINTENANCE BUSINESS


MAINTENANCE/ RELIABILITY ENGINEER

These two pages of bullet items are required to start a maintenance


business
However, to fully develop the business more is required Insures that equipment is properly designed, selected and installed
based on life cycle philosophy.
The following is required to develop a competitive maintenance
business-- Ensures that equipment is performing effectively and efficiently.
Establishes and monitors programs for engine/compressor analysis and
vibration and other condition monitoring techniques.
Reviews deficiencies noted during corrective maintenance.
Provides technical guidance for CMMS.
Maintains and advises on use and disposition of stock, surplus, and/or
rental rotating equipment.
Promotes equipment standardization, recommends spare parts levels
and coordinates sharing of spare parts with other asset teams.
Available for consultation with maintenance technicians.
Monitors new technology and keeps management/staff appraised on the
new developments.

Real. World. Experience. Real. World. Experience.

35
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

MAINTENANCE/ RELIABILITY ENGINEER-2 MAINTENANCE MANAGER

Champions quality assurance services including shop qualifications


for outside services.
Responsible for the entire maintenance function, including the
Develops standards and procedures for major maintenance jobs. planning, supervising, and engineering staffs.
Periodically makes cost/benefit review of maintenance Coordinates closely with counterparts in other in-house
management programs for areas of responsibility and exchanges organizations.
information across asset teams.
Promotes proper understanding of the maintenance function to
Provides technical guidance for PM and PDM programs. other organizations.
Monitors competitors activities in the field of Maintenance Ensures that all supervisors, planners, technicians, and
Management. maintenance engineers are properly educated and trained.
Focal point for monitoring performance indicators for maintenance Takes responsibility for planning, cost control, union activities,
management program. vacation planning, etc.
Optimizes maintenance strategies. Has responsibility for delegating assignments to the appropriate
Focal point for analyzing equipment operating data. personnel.

Real. World. Experience. Real. World. Experience.

GOLDSMITH’S LAW BUSINESS DEVELOPMENT - STEP 4

Silence gives consent Building a business ultimately must address the issue of number
of employees in the organization.
However, this is a later event - after the other decisions are
made….

Real. World. Experience. Real. World. Experience.

36
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

MAINTENANCE STAFFING HISTORY…

Levels of skills required are also a deciding factor.


Traditional craft skills For the past decade, American business has been in denial about long term
Multi-craft skills workforce development and instead, has fixated on short term profit strategies such
as global repositioning, outsourcing, or importing temporary workers.
Super Craft Skills
Operator Based Maintenance
Maintenance Based Operations

The 2010 Meltdown - Gordon

Real. World. Experience. Real. World. Experience.

MAINTENANCE STAFFING
TRAINING
OPTIONS
“Training less to save money is like stopping the clock to save time.”

Complete In-House Staff


John Tobin
CEO
Siemens Corporation

Combined In-House/Contract Staff

Contract Maintenance Staff

Complete Contracting Maintenance Staff

Real. World. Experience. Real. World. Experience.

37
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

MAINTENANCE STAFFING TANK ILLUSTRATION

Maintenance staffing levels should


be determined by craft backlogs using
the following formula. In

Open work orders ready to schedule 4 Weeks


Craft backlog = (total hours)
(in weeks) ----------------------------------
Craft Capacity
(weekly) 2 Weeks

Out

Real. World. Experience. Real. World. Experience.

BUSINESS DEVELOPMENT STEP 5


BACKLOGS AND TEAMS
- PERFORMANCE INDICATORS
Teams still have a maintenance workload for their equipment.
They must allocate enough team resources to accomplish their work After:
in a timely fashion. • The goals and Objectives are set
Team backlogs should also be in a two to four week window… • The organizational structure is implemented
Resource allocation • The roles and responsibilities are defined
• The staffing and skill requirements are determined
Performance Measures are developed that deal with the
functions, the tactics, the efficiency and effectiveness, and
the financial metrics to insure the organization is managed
correctly.

Real. World. Experience. Real. World. Experience.

38
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

Performance Management and KPI’s

Total Cost to Produce


Corporate
Indicators

Maintenance Cost to Produce Financial


Performance Indicators

Productivity (Wrench Time)


Efficiency and Effectiveness
Performance Indicators
Planner to
Technician Tactical
Ratio
Performance Indicators
Developing Performance Indicators for Managing Maintenance – 2cd ed.
PM
Compliance
Functional
Real. World. Experience. Real. World. Experience.
Performance Indicators

ASSET MANAGEMENT INDICATORS


THE MAINTENANCE/ RELIABILITY
BUSINESS -
Return on Assets
Overall Equipment Effectiveness
• Measured at the “equipment” level
Is it a “business” in your Company?
• All initiatives to improve must be financially justified

The challenge is whether or not you can use this information


or adapt this information to insure that your company will
develop and optimize your Maintenance/ Reliability Business

Real. World. Experience. Real. World. Experience.

39
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

CASE STUDY VIDEO EXCUSES

In almost every industry, under the same rules and with the same
players, the successes of a few companies rebut the excuses of the
many.

Reengineering the Corporation – Hammer and Champy

Real. World. Experience. Real. World. Experience.

LESSON OUTLINE
Benefiting from Benchmarking
Defining Benchmarking
Provides a measure for the
Defining Core Competencies
benchmarked process among the
Types of Benchmarking target organizations
Developing a Maintenance Strategy
Conducting a Benchmarking Project Describes the organization's
gap in performance as compared
to the measure

Identifies best practices and


enablers that produced the
results observed during the
study

Sets performance goals for the


process and identifies actions
that can be taken to improve
Real. World. Experience. Real. World. Experience.
performance

40
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

Management S-M-A-R-T

) Specific
If) you don't measure it,

You don't manage it! ) Measurable

) Achievable

) Realistic

) Timeframed

Real. World. Experience. Real. World. Experience.


Dr. Juran

Benchmarking Gap Analysis


Gap Analysis Measurement
Baseline
The foundation
Where we are now
Performance
Best Practice
Entitlement
The best we can achieve Our Company
by effective utilization
of current resources
Today

Benchmark
Best-in-class performance
Real. World. Experience.
for a truly optimized process Real. World. Experience.
1

41
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

Gap Analysis Gap Analysis

Performance Performance
The parity goal is
Best Practice
Focused on achieving
Parity Goal
The level of performance
Benchmark Gap
They are currently achieving.
Your Performance
T-1 T-1 is the time to
Today Achieve this level of
Today
performance

Real. World. Experience.1 Real. World. Experience.


1

Leadership Position Warfare


Gap Analysis (T-3) is when you have
Exceeded your partner’s
Performance.
) Become the Enemy
Performance Best in Class Leadership Goal ) Think yourself in the
Parity Goal enemy's position
Gap

Your Performance

Today

This parity goal (T-2)


Is the time to achieve
A real time parity
Real. World. Experience. With the partner Real. World. Experience.Miyamoto Musashi
1

42
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

Code of Conduct for Benchmarking


Keep it legal
Benchmarks
Be willing to give
what you get Too Fluid?
Respect Confidentiality

Keep information internal


A benchmark performance
Use benchmarking contacts
does not remain a
Don't refer without permission
standard for long.
Be prepared from the start Continuous Improvement
Understand expectations Must be the goal.
Act in accordance with expectations

Be Honest
Real. World. Experience. Real. World. Experience.
Follow through with commitments

Benchmarking Checklist
Competition
) Plan

) Search
) Just as water retains
no constant shape,
so in warfare there ) Observe
are no constant conditions.
) Analyze
The same applies in business
) Adapt

) Improve

Real. World. Experience. Real. World. Experience.


Sun Tzu G. Watson - Modified

43
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

CHECKLIST Plan
What is our maintenance mission?

This checklist is modified from a quality benchmarking checklist What is our maintenance process?
developed by Gregory Watson –
How do we measure it?
• Considered one of the original Benchmarking Gurus
This list is modified to reflect maintenance parameters in a How well is our maintenance
benchmarking project. performing today?

Who is the customer for


maintenance?

What services does maintenance


deliver?

What services do the customers for


maintenance expect or require?

What is the performance goal?


How was this goal established?

Real. World. Experience. Real. World. Experience.


How does our maintenance compare
with our competitors?

Observe
Search What is their maintenance
mission?

What companies do better What are their performance


with their maintenance? goals?

Which company is considered How well does their maintenance


Strategies perform over time and/or
to be the best at maintenance? at multiple locations?

What can we learn from this How do they measure maintenance


company? performance?

What enables the performance


Who should we contact to determine of maintenance?
if they are willing to participate
in out benchmarking study? What factors could prevent us from
adopting their maintenance policies
Real. World. Experience. Real. World. Experience.
and practices into our organization?

44
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

Adapt
Analyze
How does the knowledge about
their maintenance process
What is the nature of
enable us to change our
the performance gap?
maintenance process?
What is the magnitude of
Should we redefine or reset
the performance gap?
our performance measures
based on this benchmark?
What characteristics distinguish
their process as superior?
What parts of their maintenance
process would have to be
What activities within our
changed or modified to be
process are candidates for change?
adapted into our business
Real. World. Experience. Real. World. Experience.
environment?

Traps to Benchmarking
Improve The fear of being seen
as copying

What have we learned that The fear of losing


competitive advantage
would allow us to improve by sharing information
upon a "Superior" maintenance Arrogance
process? "We are the Best"
But, How do you know?
Convenient Benchmarking
How can we implement these
Impatience
changes into our maintenance "Action without Planning"
process? "Industrial Tourism"

Real. World. Experience. Real. World. Experience.


Not doing it at all

45
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BENCHMARKING...
Benchmarking Projects
7 step procedural review
It is necessary to explore the tangible and intangible factors that
combine to produce a superior performance and to involve those
people most directly concerned in the activity being examined.
Expose management to the
concepts of benchmarking
Develop a project cost estimate
Conduct the project in a way
that insures its success – (planning)
Ensure the project follows
a disciplined process
Report interim and final results
to management
Facilitate the changes recommended by the
study
Monitor the results of the
implementation

Real. World. Experience. Best


Real. Practice Benchmarking - Codling
World. Experience.

SURVEY OVERVIEW

The following slides will provide an interesting comparison.


• The first slide is the Reliability Web Survey
• The second overlays the University database
o 200 additional companies

Real. World. Experience.

46
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

COMPARATIVE ANALYSIS

Reliability Web Survey


• Very Strong in PDM
University Database
• Inventory Strong
• General maintenance practices strong

Real. World. Experience.

COMPARATIVE ANALYSIS

Waste Water Database


• Followed General trends of University Database
• Slightly above average in basics

Real. World. Experience.

47
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

OBSERVATIONS FROM THE


ORGANIZATIONS
INTERNATIONAL SURVEY
The following observations are derived from analysis of the data
collected during the Reliability Web Benchmarking Survey.
These results will reflect a blend of almost 50% US companies along Strengths Weaknesses
with 50% of International respondents • Organizational Charts • Organization Effort
• Roles & and Attitude
Responsibilities o 32% Above Average
• Supervisor Rations – o 46% Average
o 22% Below Average
o 80% less than 16:1
o Majority at 8-12:1 • Planners
• Planners o 37% with Acceptable
Ratios
o 64% used planners
• Incentive Plan
o 19% Were Tied to a
plan

Real. World. Experience. Real. World. Experience.

TRAINING WORK ORDER/ WORK FLOW

Strengths Weaknesses Strengths Weaknesses


• 47% use a mix of • Only 19% of salaried • 63% close over 3/4ths • Only 30% report
classroom and lab supervisors have a of all work orders 100% of their labor
training for technicians career training within 8 weeks of the hours to work orders
• 43% use a mix of in- program original request • Only 32% report
house and contract • 70% do not train their • 25% generate over ½ 100% of their material
training instructors planners of all work orders from issues to work orders
• 50% rate the skill of their preventive or • Only 35% report
their technicians as predictive 100% coverage of
fair or poor maintenance maintenance work by
inspections work orders

Real. World. Experience. Real. World. Experience.

48
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

PLANNING AND SCHEDULING


Equipment History Files
Building
L.C.C. – M.T.B.F.
Predictive Strengths Weaknesses
M.T.T.R. • 31% report less than 10% • 98% did not include tools
of all their plans experience in their work order plans
a delay in work execution
Work due to a poor plan
• Only 34% tracked a
backlog of work by craft
Preventive Rebuild • 55% schedule maintenance • Only 20% tracked their
Order Inside / Contract weekly work by date needed by
• 45% have weekly • Almost ½ of all
maintenance/ production respondents checked less
schedule meetings than 50% of the estimates
Labor Inventory o 30% daily versus actuals for work
Contractor order planning and
& & • 63% have their craft
Personnel Stores Rental Equipment technicians fill out work execution performance
Misc. costs & info order completion data

Real. World. Experience. Purchasing Real. World. Experience.

PREVENTIVE MAINTENANCE INVENTORY AND PURCHASING

Strengths Weaknesses Strengths Weaknesses


• 84% have detailed • 66% include some • 70% of the respondents • Only 20% have an
allowed maintenance to inventory service level of
inspection checklists form of PDM technique specify spare parts and 95%+
• 79% have detailed in their asset care stocking levels • Over 20% of the
lubrication checklists program • 57% had aisle and bin respondents had less than
• Over 50% fail to audit locations for 90%+ of the 50% of all of their spare
• 17% use operations
inventory parts in the inventory
personnel to perform their PM program
system
their PM tasks annually for coverage
• 1/3rd of all respondents
• 57% Still use only time tracked less than 70% of
based PM’s all material issues to a
work order

Real. World. Experience. Real. World. Experience.

49
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

CMMS/ EAM SYSTEMS


Equipment History Files
Building
L.C.C. – M.T.B.F.
Strengths Weaknesses Predictive M.T.T.R.
• 53% of respondents have • Integration to:
involved more than 90% of o Production Scheduling
their organization in CMMS/
EAM Usage
 17% (yes) 63% (no) Work
o Payroll/ Timekeeping Preventive Rebuild
• 33% used the data in the
system to make cost based
 14% (yes) 65% (no)
o Financial/ Accounting
Order Inside / Contract
management decisions  31% (yes) 38% (No)
• 29% used the data in the • Only 37% felt 3/4ths or
system to track progressive more of their personnel Labor Inventory
return on investment were proficient using their Contractor
& &
system Personnel Stores Rental Equipment
Misc. costs & info

Real. World. Experience. Real. World. Experience. Purchasing

MAINTENANCE REPORTING

Strengths Weaknesses
• 35% distribute 90% of • While 51% reviewed
their reports on a timely equipment by downtime –
basis only 24% examined
equipment by Downtime LATEST ADDITIONS TO SURVEY
Cost
• Only 44% examined PM as
% of total Activities
• Less than 1/3 compared
actuals to plan
• Only 40% had an inventory
valuation report
• Only 14% had a Buyer
performance report

Real. World. Experience. Real. World. Experience.

50
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

PREDICTIVE MAINTENANCE RELIABILITY ENGINEERING

Strengths Weaknesses Strengths Weaknesses


• 67% of the organizations • 56% of the organizations
• 92% some form of • 59% have no are developing a reliability do not use RCM
Vibration Analysis connection between work culture methodologies to adjust/
their PDM system and refine their PM/PDM
• 87% some form of programs
thermography their CMMS/EAM • Over 50% of the
• 92% some form of oil companies say their work
order system is inaccurate
analysis when it come to tracking
• 70% some form of causes of failures
ultrasonics • 52% of the organizations
have no measures to track
the effectiveness of their
reliability efforts

Real. World. Experience. Real. World. Experience.

MAINTENANCE – GENERAL FINANCIAL OPTIMIZATION


PRACTICES

Strengths Weaknesses Strengths Weaknesses


• 58% calculate and track • 64% do not communicate • 84% track downtime • 28% track all related
equipment availability on the financial effects of duration for their key impact costs (energy,
the majority of the equipment availability/ assets quality, contracting)
equipment reliability within the • 86% track downtime • 22% examine all cost
• 47% have a total organization causes for their key assets factors when making
organization focus on • 17% do not have their • 78% track maintenance decisions concerning their
equipment reliability/ equipment/ process costs for their key assets assets
availability meeting regulatory • Over 50% do not examine
• 72% have some form of requirements efficiency losses on the
operator involvement in • Over ½ are not conducting majority of their equipment
maintenance technical training for the • 29% do not accurately
organization track material costs

Real. World. Experience. Real. World. Experience.

51
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

ASSET CARE – MAINTENANCE CONTRACTING


CONTINUOUS IMPROVEMENT

Strengths Weaknesses Strengths Weaknesses


• 58% management • 46% do not track ROI • 78% have joint • Only 24% have an
shows visible support on the C.I. efforts responsibilities for individual dedicated to
for C.I. efforts • 63% do not link C.I. to safety between the the contracting
• 62% entire reliability engineering company and process
organization supports • 27% have poor contractor • 28% have no
C.I. efforts relations between • Over 50% have the electronic system to
• 71% Management plant management contracting system track contracts
supports on-going and labor linked electronically
training to improve with their CMMS/ EAM
employee skills

Real. World. Experience. Real. World. Experience.

DOCUMENT MANAGEMENT

Strengths Weaknesses
• 40% have their • 59% have less than ½
document of their drawings in
management system the system
interfaced with other • 21% have poor
systems version control
• 42% have established procedures
document control • Only 44% allow
procedures maintenance
technicians direct
access to the system

Real. World. Experience.

52
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BENCHMARKING SURVEY?? BENCHMARKING AND CHANGE...

Why is this important? The gap between present and Best Practice
What does it mean to your company?
promotes dissatisfaction and desire for change
Seeing, understanding, and learning from Best
Practice helps to identify what and how to
change
Witnessing Best Practice provides a realistic,
achievable picture of the desired future

Real. World. Experience. Real. World. Experience.

CHANGE?? BENCHMARKING...

Why should “We have always done it this way” be a reason for It is necessary to explore the tangible and intangible factors that
continuing to do something? combine to produce a superior performance and to involve those
Annual objectives based on past performance plus or minus 10% people most directly concerned in the activity being examined.
are meaningless in a period of rapid change!!

Real. World. Experience. Best


Real. Practice Benchmarking - Codling
World. Experience.

53
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

BENCHMARK CAUTIONS Benefiting from


Benchmarking
To fluid because world standards are rapidly improving
Provides a measure for the
benchmarked process among the
To modest for corporate goals
target organizations

Describes the organization's


gap in performance as compared
to the measure

Identifies best practices and


enablers that produced the
results observed during the
study

Sets performance goals for the


process and identifies actions
that can be taken to improve
Real. World. Experience. Real. World. Experience.
performance

BENCHMARKS TOO FLUID ? BENCHMARKS ARE GOOD FOR ?

A benchmark performance does not remain a standard for long Finding process improvements

Continuous improvement Arousing people to the challenge

Setting milestone targets

Real. World. Experience. Real. World. Experience.

54
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

MAINTENANCE/ ASSET
ASSET VALUE BASED BENCHMARKS
BENCHMARKS
The following are a series of maintenance and asset benchmarks.
These are not specific to an industry, but represent a cross-section
of industries.
These numbers should never be used as an end-goal, but are only Indicator Low Range High Range Best Practice
presented as a general guideline.

Maintenance
Cost/ ERV 2% 5% 2%

Stores
Investment/ ERV .8% 1.2% 1%
ERV/
Maintenance
Technician $4M $10M $7M
Real. World. Experience. Real. World. Experience.
Figure 12-1

STAFFING BENCHMARKS MAINTENANCE COSTS COMPARED


TO TOTAL COST OF SALES

Indicator Low Range High Range Best Practice Indicator Low Range High Range Best Practice
Total
Technicians to
Supervisor 8:1 15:1 10:1 Maintenance
Costs/Sales Cost 1% 5% 2%
Maintenance
Technicians to Labor
Planner 15:1 25:1 20:1 Costs/Sales
Costs .6% 2.5% 1%
ERV/
Maintenance Maintenance
Engineer $50M $250M $100M Stores Costs/
Sales Costs .4% 2.5% 1%
Figure 12-2
Real. World. Experience.
Figure 12-3

55
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

MAINTENANCE PERFORMANCE MAINTENANCE PERFORMANCE - 2

Best Indicator Low Range High Range Best Practice


Indicator Low Range High Range Practice Planned
Maintenance
Work Order Work 35% 95% 80+%
Coverage 60% 100% 100%
Preventive Operator
Maintenance Involvement in PM 10% 40% Varies
Compliance 65% 100% 100%
Contractor Costs/
Maintenance Total Maintenance
Schedule Costs 10% 100% Varies
Compliance 35% 95% 95%
Figure 12-4 Figure 12-5

MAINTENANCE PERFORMANCE -3 EQUIPMENT PERFORMANCE

Best Best
Indicator Low Range High Range Practice Indicator Low Range High Range Practice

PM/PDM Hours/ Equipment


Total Hours 20% 50% 50% Availability 65% 99.9% Varies
Reactive Hours/ Equipment
Total Hours 5% 50% <10% Efficiency 75% 95% 95+%
Productivity Overall
Rates (Wrench Equipment
Time) 20% 60% 60% Effectiveness <20% 85+% Varies
Figure 12-6 Figure 12-7

56
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

MAINTENANCE STORES TRAINING

Indicator Low Range High Range Best Practice


Best
Indicator Low Range High Range Practice Training
Expenditure per
Employee $607 $2000 Varies
Spare Parts
Inventory Turns .5 1.4 Varies Training as a
Percentage of
95- Payroll 1.65% 4.39% Varies
Stores Service
Level 80% 99% 97% Technology
Training / Total
Value of stores Training Expense <20% 50+% Varies
transactions per
store
Figurepersonnel
12-8 $350K $600K+ Varies Figure 12-9

RELIABILITYWEB BENCHMARKS
EXTENSIVE ANALYSIS
http://www.reliabilityweb.com/excerpts/excerpts/maintenance_benc
hmarking.htm

For the chapter text for this workshop

An extensive up front http://www.maintenancebenchmarking.com/best_practices_maintenan


ce.htm
audit is a way people
postpone doing On-Line Survey
something
useful.

vestapartners.com

USA
+1 203 517 0400
CANADA
+1 289 337 1793
EUROPE
+31 0 70 220 9720
AUSTRALIA
+61 3 8676 0672
SOUTHEAST ASIA
+65 6622 5643
Real. World. Experience.
P. Crosby “Let’s Talk Quality”

57
Benchmarking Maintenance Management – SMRP Terry Wireman, CMRP Vesta Partners 10/8/2013
Workshop

WILL YOU…. THANK YOU FOR VIEWING THIS I-PRESENTATION

Help your company achieve the benefits available by improving


maintenance?? If you would like additional information about Benchmarking or
Utilize Benchmarking as a tool for continuous improvement?? would like to discuss how we can help your company’s
Benchmark for the right reasons benchmarking initiative, please contact us at:
• Not tourism or ego gratification • twireman@vestapartners.com
If so- then you will be increasing your company’s competitive • (203) 517-0400
position!!!
Or visit our website at:
• www.vestapartners.com

Real. World. Experience. Real. World. Experience.

58