Nikolovski egaf8

Plant performance improvement using a
total asset strategy and defect
elimination
Dr. Nik Nikolovski, Hatch

LOGO
VIII Encuentro en Gestión de Activos Físicos
Centro de Minería
Campus San Joaquín, 18 de junio de 2010
Pontificia Universidad Católica
www.egaf.cl de Chile

n s
gio
Africa Europe
Re
Americas
Introduction - Hatch
Australasia

metals energy infrastructure
SAMS
MINING & MINERAL

THERMAL/NUCLEAR

INFRASTRUCTURE
TRANSMISSION &

CONNELL HATCH
WATER / WIND
NON-FERROUS

DISTRIBUTION
LIGHT METALS

MACDONALD
HATCH MOTT
IRON & STEEL
PROCESSING

INDUSTRIAL

INDUSTRIAL

AAMHATCH
OIL & GAS
MINERALS

IRON ORE
•Op. Improvement

OTHER
•Learning and
development
Operations

•Specialized
Inspection Services
PROJECT MANAGEMENT (EPCM)
•Operational
HATCH PRACTISES

HATCH OPERATIONAL SERVICES (Hatch OS) Readiness
AND SERVICES

TECHNOLOGY •Maintenance and
SYSTEMS AND PROCESS CONTROL (S&PC) Operations Support
ENVIRONMENTAL & COMMUNITY INTERFACE (E&CI) •Sustained Capital
CONSULTING Management
•Engineering ad
Group Shared Services Technical Support

© Hatch 2010 Copyright

Centro de Minería

Asset management (as per PAS 55)

PAS 55:2008 - Asset management is defined as:
systematic and coordinated activities and practices through which an
organization optimally and sustainably manages its assets and asset systems,
their associated performance, risks and expenditures over their life cycles for
the purpose of achieving its organizational strategic plan.

Operational Asset Strategy Development
Readiness and Operational Improvement

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Failures do not just happen
The “Gateway” concept
Operating / Producing Maintaining

Machine “genetic code”
Machine “genetic code”
determines life under ideal
determines life under ideal
conditions
conditions

External Linkages
Environment

• Machines should last the best part of their design life if they are operated under design
conditions.
• We destroy these conditions by letting defects enter through the Gateways
• Keep the Gateways closed to eliminate those defects

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Concern that methods have not evolved sufficiently
The Popular
story behind
RCM

• This
research is
not “new”
anymore!

The updated story:
More recent research (JIPM / DuPont - 1990’s) showed that the random failure patterns
are driven by accelerated deterioration which in turn is caused by the defects we
allow into our production processes and equipment systems.
• Most strategy development is designed to cope with random failure patterns.

• Gateway™ is designed to identify andActivos Físicos root causes of de Minería thereby
VIII Encuentro en Gestión de
address the
Centro failure,
eliminating defects, reducing deterioration rates and avoiding premature failures.

Developing Asset
Strategy - Five Step Step 1 Map Process Flow and Define Scope
Step 1 Map Process Flow and Define Scope

Process
Process step (not Maintainable item)
Step 2 Define Functions and Functional Failures
Step 2 Define Functions and Functional Failures
Process Step 1.1

Focus on process step functions Function
Functional Caused Caused
Action
Failure by by

Step 3 Conduct Root Cause Analysis and rank
Step 3 Conduct Root Cause Analysis and rank
Root Cause and gates identified Operating / Producing Maintaining

and prioritised (not cause /
symptoms) External Linkages
Environment

Step 4 Develop Actions to Manage Root Causes
Step 4 Develop Actions to Manage Root Causes
Actions to manage Critical Root Causes:
Failure Characteristics

Sudden and Premature failure Gradual and Deferred failure
unpredictable Accelerated
Detect detectable Life Exten sion
deterioration
failure failure

Duty

Duty
Duty

Duty
Repair

Actions to manage Root causes (not just
Time Time Time Time

Be prepared for Prevent through effective Early Detection and Very Early Detection
when this happens “Failure Avoidance” Planned Correction and Planned Prevention

OTF Preventive Maintenance Inspection Strategy

Equipment Failure Characteristics and Control Strategies

inspections)
A root cause is critical if it is likely to occur and causes the associated functional failure with
significant consequences (Losses). For more critical root causes, our actions should
include:
• quality assurance in our repair and refit interventions (precision maintenance), plus
• failure avoidance in our operating practices (careful operation), plus
• properly considered condition monitoring to detect any onset of failure that might slip
through our other defences.

Step 5 Implement Actions in the Workplace
Step 5 Implement Actions in the Workplace
Opportunity Windows: Work Instructions:
The life characteristics of each item of Effective implementation of an asset
equipment largely dictate how and management strategy requires the
when we should maintain it. However, development of work instructions on
when we look at the whole production how to carry out tasks. This ensures
system, we commonly find that the work quality requirements are
“opportunity windows” that arise due clear and there are detailed
to the operating nature of the specifications provided for technical
manufacturing process. and procedural work (Quality

Actions implemented and result These windows provide opportunities to
carry out maintenance activities without
causing unnecessary production
Assurance) requirements – link to ITPs.
And finally:
The effort required in developing and implementing effective work
specifications should not be underestimated – or skimped.

monitored stoppages. Our Asset Strategy should
consider taking advantage of these
opportunity windows.
Remember, no strategy is effective until it becomes standard
practice in the workplace, with the results being monitored and
continuously improved.


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The evolutionary path or choice?
l Lean Manufacturing
l Whole system view &
integration
Choice l
l
Careful Operation
Lubrication management
l Designing reliable &
maintainable equipment
l Reduced l Life cycle maintenance of
variation equipment
l Statistical
l Review of process
equipment control
strategies l Quality
l Data analysis work
& root cause Defect
analysis Elimination
l Pro-active l Review
detection of corrective 6σ Integrated manufacturing/
Maturity

losses work Improved work team for optimum
l Planned
l Detecting some corrective Precision process performance
losses work Planned
l Trouble Proactive
shooting the
problem Maintenance Reduced maintenance work
l Fixing it! Right sized inventory
Planned Achieve full component life
Maintenance Horizon of 3 mths
Planning horizon of
Reactive 1 week to 1 month
Maintenance High ability
to repair

1st Generation 2nd Generation 3rd Generation 4th Generation time
Responsive Planned Disciplined Integrated Learning
Organization


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Gateway Process Implementation

Gateway Applications Completed / In Progress
# Causes
# Root Gateways # Repair # Causes # Causes # Causes
In Failure
Application Causes Opn Mnt Env Ext Strategies In Repair
Avoidance
OTF RCM

U/G Crusher 654 150 388 53 72 9 160 293 69 132

O/S Crusher 219 20 143 23 30 7 138 64 15 2

Foundry - Various Machines 205 40 128 28 9 40 76 133 19 -

Steel fabrication No data
available
Walking Beam Furnace (Rolling) 1426 176 1026 37 188 9 1147 228

Variable Depth Caster 435 203 135 42 51 11 169 423 1 9

Coke Ovens Fuel Gas 133 42 43 15 53 6 125 8

3,072 379 (12%)
88%

© Hatch 2010 Copyright Agreed team Actions Success
Stories
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Where the defects come from?

Experience so far:


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Results
Aluminium Rolling plant

Downtime Thrughoutput

MTBF No of Problems


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Achieving the results
Iron Ore Smelting Plant
Preheater Utilisation HMD Utilisation

100%
Preheat
24 - Ore Preheat/Pre Reduction Target Linear (24 - Ore Preheat/Pre Reduction)

100%
34,35 - HMD/Ladle Cars/Induction Furnace
HMD Target Linear (34,35 - HMD/Ladle Cars/Induction Furnace)

95%
er 95%
90% Utilisa
90% 85%

85% Utilisati 80%
75%
tion
80%

75%
on 70%
65%
60%
70%
55%

Nov-08
50%

Nov-07
Nov-08
65%

Jan-08

Feb-08

Mar-08

Jun-08

Aug-08

Sep-08

Dec-08
Jun-07

Sep-07
Aug-07

Dec-07

May-08
Nov-07

Apr-08

Jul-08
Jul-07
Jun-08
Mar-08

Aug-08

Dec-08

Oct-08
Sep-08
Feb-08

Oct-07
Jan-08

Apr-08

May-08

Jul-08
Jun-07

Dec-07
Aug-07

Sep-07

Oct-08
Jul-07

Oct-07

HRU Utilisation Caster Utilisation

WHRU
71 - WHRU Target Linear (71 - WHRU) 35E - Pig Caster 2 EAST 35W - Pig Caster 1 WEST
Pig Target Linear (35E - Pig Caster 2 EAST) Linear (35W - Pig Caster 1 WEST)

100% 100%

95% Utilisat 99%
Caster
Utilisatio
90%

85% ion 98%

80%

75%
97% n
70%
96%
65%

60% 95%

Nov-08
Jun-08
Nov-08

Sep-08

Dec-08
Nov-07

Mar-08
Feb-08

May-08

Aug-08
Nov-07

Apr-08

Jul-08

Oct-08
Jun-08

Sep-08

Dec-08
Aug-08
Jun-07

Jan-08

Jan-08
Aug-07

Dec-07

Feb-08

Mar-08

Jul-08

Dec-07
Jun-07
Sep-07

May-08
Jul-07

Apr-08

Aug-07

Sep-07
Jul-07
Oct-08
Oct-07

Oct-07

Centro de Minería

Asset Management School
Fundamentals Defect Elimination Learning for sustainability of results
Defect Elimination
in Design

Asset Strategy Assess Criticality

Develop Asset Strategy

Management
Monitor for Defects

Work
Condition Monitoring

Problem Solving

Life Cycle Costing

Defect Elimination Practices
Operating Rotating Equipment Lubrication
Discipline Care
Bearing Care
Structural Assets
etc Care Gearbox Care

Electrical Equipment Assembly Care
Care

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Questions?

For more info Contact:
nnikolovski@hatch.com.au
www.hatch.ca


Centro de Minería

Nikolovski egaf8

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