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DuPont spent more on maintenance than competitors but got less value in terms of uptime and reliability. A simulation model found this was due to reactive maintenance practices and cost-cutting mental models throughout the organization. To address this, DuPont held workshops using a simulation game to help employees experience the benefits of preventative maintenance strategies over 2 days instead of months. Over 1,200 employees participated, and preventative practices were successfully implemented, though new challenges later emerged around incentives and resistance to change.
DuPont spent more on maintenance than competitors but got less value in terms of uptime and reliability. A simulation model found this was due to reactive maintenance practices and cost-cutting mental models throughout the organization. To address this, DuPont held workshops using a simulation game to help employees experience the benefits of preventative maintenance strategies over 2 days instead of months. Over 1,200 employees participated, and preventative practices were successfully implemented, though new challenges later emerged around incentives and resistance to change.
DuPont spent more on maintenance than competitors but got less value in terms of uptime and reliability. A simulation model found this was due to reactive maintenance practices and cost-cutting mental models throughout the organization. To address this, DuPont held workshops using a simulation game to help employees experience the benefits of preventative maintenance strategies over 2 days instead of months. Over 1,200 employees participated, and preventative practices were successfully implemented, though new challenges later emerged around incentives and resistance to change.
2.4 PLAYING THE MAINTENANCE GAME BACKGROUND Du Pont 1991 sales $38 million profit $1.4 million after tax profit Largest U.S chemical manufacturer Benchmarking study revealed apparent paradox: du pont spend more on maintenance than industry leaders but less for it. The mental models found the results of the benchmarking study to be counterintuitive. How could du pont spending more and getting less? Suggestive ideas of reasons: Difficult competitive environment, since there is only little product differentiation for commodity feedstock, so other dimensions like cost and delivery reliability are challenged. Severe energy crises wreaked havoc with input and operating cost. Environmental concerns and regulation were growing. Wilson ledet as the manager knew all this as he lived 25 years with du pont. The problems are not in the outside pressure the company had faced, but in its response to those pressures. Internal aspects.
Proposed plan: Explore the ways in which different parts of the maintenance system interacted. Explain why past attempts to improve had failed. Assist in the design of new polices. Explain the complex dynamics to the experienced plant operations and maintenance people who had to take actions. Ledet and his team began the development of a simulation model to capture the systemwide, dynamic benefits, and cost of different maintenance initiatives. Help came from Mark Paich as coach and facilitator with full participation and hands-on workshop from Ledet and team. DYNAMIC HYPOTHESIS 2.4.1 The dynamic hypothesis they developed explained the paradox that du pont spent more on maintenance and got less for it in terms of uptime and equipment reliability. Prior to modeling work: Maintenance seen as: 1. process of defect correction. 2. cost to be minimized.
The first conceptual shift: Change the focus from defect correction to defect prevention and defect elimination.
The model therefore centered on the physics of breakdowns rather than the cost minimization mentality that prevailed throughout the organization. Figure 2-8. Defect Creation and Elimination Figure 2-9. Positive Feedbacks undercutting planned maintenance. Figure 2-10. Additional positive feedbacks leading to a reactive maintenance culture .
Once the model was adequately calibrated to the historical data, the next step was to design high leverage policies to escape from the reactive regime. The team simulated the impact of different policies, including those that had been tried and failed in the past. THE IMPLEMENTATION CHALLENGE 2.4.2 Challenge: to implement the needed changes from top management to down staffs which number in thousand whose nothing in mind about system dynamics nor computer modeling. Fortunately, Ledet was familiar with beer distribution game, a role-playing management flight simulator of a manufacturing supply chain developed by the MIT System Dynamics Group as an introduction of systems thinking. Working with his son, Ledet transformed the maintenance game into a 2-days workshop or learning laboratory designed to be highly interactive, to put people at ease, and to create environment for learning that addressed emotional as well as cognitive issues. There are 3 roles: operations managers: charged with meeting demand and has equipment, represented by chips. As production proceeds, red markers representing latent defects are placed on the equipment chips. When enough red markers accumulate, the equipment breaks equipment chips. maintenance manager: must allocate mechanics to repair the equipment and go to the spare parts store to see if the needed parts (determined by a roll of the dice) are available. If parts are in stock, the equipment is repaired. If not, the mechanics must wait until they are available or pay to have delivery expedited. ALTERNATIVELY, the maintenance manager can schedule planned work ordering the needed parts and allocating mechanics in advance. spare part stores managers: check availability and serve mechanics needs. Planned maintenance can only be done if the operations managers agrees to take operating equipment out of service.
Team A: Cost minimization, reactive maintenance, Team B: Planned maintenance strategy, By compressing time the game allows people to experience the worse-before-better dynamic in a few hours instead of months. The game became popular throughout the company. The surge in demand stressed the lagged number of skilled facilitators. By the end of 1992, 1200 people has participated in the workshop and more than 50 facilitators has been certified. RESULTS 2.4.3 Success creates its own challenges. 1. persistence of the cost-cutting mentality. 2. Rewarding the modeling team. Ledet acquired the rights to the game from Du Pont, took early retirement, and became entrepreneur, working with other companies to implement the approach. TRANSFERRING THE LEARNING: THE BRITISH PETROLEUMS LIMA EXPERIENCE 2.4.4
LESSONS LEARNED Summary Mental Model Preventive maintenance practices versus immediate production and cost-cutting efficiencies pressure. Exacerbated by the mental models of employee from top to bottom of the organization. Conceptualize highly-interdependent, dynamic processes as if they can be decomposed into separable functions and discrete events. Lesson learned: When things go wrong, do not penetrate the mental models, but associate with a particular person who made an error or leadership efficiency in the abstract. Rational and Irrational Decisions Information is available in order to design better strategies and practices. The strategic and operational levels of the organization do not easily integrate their concerns and feedback to improve. Du Pont and BP Lima have organizational structures and incentives that made it individually rational at least in the short run and accepted logic within the organization. Lesson learned: Aligning individual and organizational rationality is to change mental models so as to create understanding of longer-term global issues and to change work practices and organizations based on these new understanding. Changing Mental Models Successful problem solving at Du Pont did not stop only at technical experts analysis, but also the effort to change the way maintenance was understood from top to bottom of the organization. They have succeeded at changing mental models through an experiential game that provides a complex, dynamic learning environment in which employees enact old and new practices and receive feedback in a form and context that encourages learning. Lesson learned: Game simulation is not sufficient to change mental models. It has to be accompanied by opportunities to share experiences and develop skills in legitimized ways. Changing Work Practices and Organizations
A resistance to change in maintenance emerge after initial success from employee motivations, career paths, power structures, and complacency.
Lesson learned: New mental models are only groundwork fro the seeds of change. However it needs to be transformed into work practice that produce operational improvements. And it is the most difficult process. Ultimately implementation success required the modeling team to embed their insights into a learning environment that involved the active participation of the people on the front lines, that enabled people to discover those insights for themselves, and that spoke not only to their heads but also to their hearts.