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WORLD CLASS
MAINTENANCE
By
Durga Prasad Mishra, Bhaskar Ku. Gupta, Gurvinder Singh
PGD in Project Management | Batch 2016-18,
NITIE – Mumbai
World Class Maintenance
About WCM
 It is the result of achieving benchmarks that others don’t.
 It is about the way the entire organization uses all the means to protect its
ability to produce exceptional value for its customers.
 It is a journey, not a destination — a process, not a product.
The AssetManagementPyramid
Key Parameters:
 PlannedMaintenance Work  Maintenance Overtime
 Breakdown/CrisisWork  Maintenance DirectWork
 Maintenance Schedule Compliance  MRO InventoryTurns
 CraftsmenperPlanner  Accurate CMMS Data
Continuous
Improvement
TPM
Financial
Optimisation
Predictive
Maintenance
Operations
Improvement
`
RCM
Stores &
Procurement
Work Flow
System
CMMS
 Annual Maintenance Cost
History:
Strategies inMaintenance:
 TPM (Total Productive Maintenance):
 A paradigm shift that focuses every one in the organisation towards
improved equipment efficiency.
 It is not a short term fix.
5 pillars of TPM:
 Increase Equipment Effectiveness:
Overall equipment effectiveness can be increased by targeting the major
losses like
• Planned shutdown losses: no production, breaks and/or shift changes;
planned maintenance
• Downtime losses: equipment failure or breakdowns, setups and
changeovers, tooling or part changes, startup and adjustment
• Performance efficiency losses: minor stops or delays, reduced speed or cycle
time
• Quality losses: scrap product/output, defects or rework, yield or process
transition losses
 Training:
•Wiremanin his booktitled World-class maintenancemanagement referredto maintenanceplanning as thelast
frontier fororganizations.it is vital formaintenance management tobeintegratedwith corporatestrategy to
ensure equipment availability,quality products, on-timedeliveries, and competitivepricing.
1990
•Norman (1995)defined that an organizationaspiring to achieveworld-classmaintenanceorganizationwill perform
the following activities,focusing in teamwork,implementing CMMS, installing preventive maintenance (PM)
and predictivemaintenance(PdM) etc.
1995
•Labibdescribedthat implementationof computerizedmaintenance managementsystems (CMMS) will
be an effective tool to support decisionmakinginanorganization withthe objective ofachieving
world-class manufacturing status, where the systemwas usedtoanalyze the trends andperformance
levels, basedon whichtechniques were formulatedtoeliminate losses.
1998
•Smith (2000) has emphasizedthat following a reliabilitycenteredmaintenance canlead
theorganizationto achieve the world-class status in maintenance.2000
•Ingalls (2002) definedworld-class maintenance organizations as those that consistentlydemonstrate
industrybest practicesandproduce bottom-line result as well.2002
•A training needs analysis should be performed for the different people
working in the plant. •Each pillar, such as planned maintenance, should be
trained on maintenance-related courses, while a focused improvement group
should be well versed on different analytical tools and techniques.
•Likewise, operators should be trained with proper operation and safety on
their equipment. Education and training is a continuous process and should be
provided to all employees
 Autonomous Maintenance:
•Operator involvement must be defined in ways that make sense in the work
culture.
•There are tasks that operators can do without using any tools: clean and
inspect equipment. The thing that they get the most return on investment in
the early stages of TPM is operators learning how to inspect their equipment
and pay attention to key things. It doesn’t take any tools or special skills; you
just have to know what to look for. Maintenance people can teach the
operators what to look and listen for.
 Early Equipment Management:
•Early equipment management is a system for dealing with problems that
surface during test-running, commissioning, and start-up of new equipment.
•Basically production and maintenance engineering people must correct
problems caused by poor selection of materials at the design stage, errors
occurring during fabrication of the equipment, or installation errors. In an
ideal world, early equipment management should not be very complicated
(particularly if maintenance prevention design is properly applied at the
design stage).
 Planned & Preventive Maintenance:
•Planned maintenance is planning and scheduling of maintenance activities,
as opposed to reacting to breakdowns and emergencies.
•A maintenance department that uses TPM effectively generally devotes less
than 10% of its labour hours to such unplanned activities. Without TPM, it is
not unusual for 80%-90% of the labour to be unplanned. Unplanned
maintenance is a strong indicator that prevention and improvement programs
are non-existent or ineffective. In addition, high percentages of unplanned
maintenance create problems.
Challenges faced:
A. Inhibiting Factors
• “Resisting to change” by some employee.
• Non resident consultant.
• Lower education level of Workers.
• Worker’s apprehension that manpower will be reduced.
• Production worker feels extra work load.
• Reluctant to change work practice.
• Limited knowledge of world class maintenance.
• Less time for world class maintenance activities.
B. Facilitating Factors
• Massive Mental Preparation prior to kick off.
• Management support and priority.
• Allocate significant Monetary, human resource and time.
• Create understanding about world class maintenance at grass root levels,
in advance.
• Involvement of senior management is must.
• Be Unwavering and Unflinching in support of world class maintenance
 Reliability centred maintenance:
 Reliability centred maintenance (RCM) is a corporate-level maintenance strategy
that is implemented to optimize the maintenance program of a company or
facility.
 The final result of an RCM program is the implementation of a specific
maintenance strategy on each of the assets of the facility.
RCM offers five principal options among the risk management strategies:
 Predictive maintenance tasks,
 Preventive Restoration or Preventive Replacement maintenance tasks,
 Detective maintenance tasks,
 Run-to-Failure, and
 One-time changes to the "system" (changes to hardware design, to operations,
or to other things)
Challenges faced in RCM:
 To deal with each type of failure process in order to fulfill all the expectations of
the owners of the assets, the users of the assets and of society as a whole.
 Perform maintenance in the most cost-effective and enduring fashion
 Gain active support and co-operation of all the people involved.
 Effective Asset Management:
Effective Asset Management is a systematic process of deploying, operating,
maintaining, upgrading, and disposing of assets cost-effectively. Managing assets
effectively and maximizing asset effectiveness is the key to:
 Achieving production targets
 Controlling costs
 Meeting corporate and organizational goals
Types of asset management:
 Financial asset management
 Infrastructure asset management
 Enterprise asset management
 Public asset management
Steps in EAM:
 Create Asset Inventory
 Define asset management scope
 Prepare your organisation for asset management
 Develop the Transportation Asset Management Plan
 Use Tools and Techniques to Implement Asset Management
Challenges in EAM:
 A looming retiring workforce sometimes referred to as "the Great Crew
Change".
 Corporate strategy and operational reality are out of alignment; in other
words, what the corporation plans to happen frequently isn't what really happens.
 Organizational alignment issues: for example, maintenance management and
production management goals and targets may not be in sync.
 Corporate or organizational backing for technology investments may be
lacking
MAINTENANCE BENCHMARKING
*This chart is reprinted from "Physical Asset Management Handbook" by John S. Mitchell published by Clarion Technical
Publishers. This chart was originally developed by Kyoumars Bahrami in "A Maintenance Improvement Program
Benchmarking" presented at MARCON (University of Tennessee College of Engineering). Permission to use this form was
also granted from the University of Tennessee.
MAINTENANCE INFORMATION SYSTEM:
A modern approach to the maintenance problem requires an efficient support
operated by the information system. There are a lot of articulated data to be
taken into consideration. A system that collects and organizes this information is
a prerequisite for any further elaboration. Nowadays, information technology
provides to maintenance engineers and practitioners an automatic software
platform called a “computerized maintenance management system,” with some
advantages but also some omissions. Often engineers and practitioners cannot
wait for the implementation of the computerized maintenance management
system; their policies require robust information since from the phase-in of the
equipment or plant. They may wish to get reliability results more quickly than in
the case of data coming from products operating under normal conditions. This
situation is usually faced using the experience of the maintenance personnel but
several lacks of robustness of data occur. Alternative, more accurate approaches
are accelerated testing and failure data prediction using an existing database.
Information systems (IS) have been known to aid organizational management in
providing quality services to their customers. However, if the IS used in
organizations are not
properly maintained, the quality of the services provided may be regarded as
poor. In
contemplating how IS quality connects with IS maintenance, Dekleva (1992)
observed that the
amount of time invested in IS emergency error rectifications and system
malfunctions is most
likely to interfere with the application of contemporary systems. Proponents of
IS management
have also stressed the importance of considering IS strategy as an
organizational outlook on
operation and management
IS maintenance can be conducted through systems control, reliability, user
participation,
and training (CRUT). These elements are selected because they are
hypothetically and
practically significant in maintaining the IS quality used in organizations.
Sector wise analysis of spares and maintenance costs
Piddilite – Spending on maintenance and spares (Rs. In Million)
(FMCG)
Operating results YEAR
2010-11 2011-12 2012-13 2013-14 2014-15
Sales and other
income
25302 30174 36145 41688 47242
Expense on spares
and maintenance
2040 2110 2135 2170 2016.7
% Spending on
spares and
maintenance
8.06% 6.99% 5.91 % 5.20% 4.27%
Maruti Suzuki (In Rs. Million) (Automobile)
Operating results YEAR
2010-11 2011-12 2012-13 2013-14 2014-15
Net Revenue 371,272 364,139 444,003 445,235 508,022
Expense on spares
and maintenance
39,381 41,647 57,735 59,221 66,431
% Spending on
spares and
maintenance
10.6% 11.44 % 13% 13.3% 13.08%
Punj Lloyd Upstream Limited. (OIL and Gas)
Operating
results
YEAR
2010-11 2011-12 2012-13 2013-14 2014-15
Net Revenue 618,030,000 859,299,000 851,109,000 984,985,108 815,839,103
Expense on
spares and
maintenance
102909950 161967000 221328800
182481463 169976978
% Spending
on spares
and
maintenance
16.6% 18.84% 26% 18.5% 20.83%
Note: Expense on spares and maintenance has been taken as 55% of other
expenses.
References:
http://www.ceramicindustry.com/articles/92840-total-productive-
maintenance-a-strategy-for-your-lean-journey
http://www.automobileindustry.com/articles/92840-total-productive-
maintenance-a-strategy-for-your-lean-journey
http://www.academia.edu/5379968/A_ROADMAP_FOR_SUCCESSFUL_WORLD
_CLASS_MAINTENANCE_IMPLEMENTATION_IN_INDIAN_AUTOMOTIVE_INDUS
TRIES
http://www.plant-maintenance.com/RCM-intro.shtml
http://www.maintenanceresources.com/referencelibrary/rcm/rcm1.htm
https://en.wikipedia.org/wiki/Reliability-centered_maintenance
https://www.fhwa.dot.gov/planning/processes/tribal/planning_modules/ass
et_management/page02.cfm
https://en.wikipedia.org/wiki/Asset_management
https://marutistoragenew.blob.core.windows.net/msilintiwebpdf/Maruti_AR_
2014-15_Cover_to_cover_for_website_06-08-15.pdf

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World Class Maintenance_DurgaPrasadMishra

  • 1. WORLD CLASS MAINTENANCE By Durga Prasad Mishra, Bhaskar Ku. Gupta, Gurvinder Singh PGD in Project Management | Batch 2016-18, NITIE – Mumbai
  • 2. World Class Maintenance About WCM  It is the result of achieving benchmarks that others don’t.  It is about the way the entire organization uses all the means to protect its ability to produce exceptional value for its customers.  It is a journey, not a destination — a process, not a product. The AssetManagementPyramid Key Parameters:  PlannedMaintenance Work  Maintenance Overtime  Breakdown/CrisisWork  Maintenance DirectWork  Maintenance Schedule Compliance  MRO InventoryTurns  CraftsmenperPlanner  Accurate CMMS Data Continuous Improvement TPM Financial Optimisation Predictive Maintenance Operations Improvement ` RCM Stores & Procurement Work Flow System CMMS
  • 3.  Annual Maintenance Cost History: Strategies inMaintenance:  TPM (Total Productive Maintenance):  A paradigm shift that focuses every one in the organisation towards improved equipment efficiency.  It is not a short term fix. 5 pillars of TPM:  Increase Equipment Effectiveness: Overall equipment effectiveness can be increased by targeting the major losses like • Planned shutdown losses: no production, breaks and/or shift changes; planned maintenance • Downtime losses: equipment failure or breakdowns, setups and changeovers, tooling or part changes, startup and adjustment • Performance efficiency losses: minor stops or delays, reduced speed or cycle time • Quality losses: scrap product/output, defects or rework, yield or process transition losses  Training: •Wiremanin his booktitled World-class maintenancemanagement referredto maintenanceplanning as thelast frontier fororganizations.it is vital formaintenance management tobeintegratedwith corporatestrategy to ensure equipment availability,quality products, on-timedeliveries, and competitivepricing. 1990 •Norman (1995)defined that an organizationaspiring to achieveworld-classmaintenanceorganizationwill perform the following activities,focusing in teamwork,implementing CMMS, installing preventive maintenance (PM) and predictivemaintenance(PdM) etc. 1995 •Labibdescribedthat implementationof computerizedmaintenance managementsystems (CMMS) will be an effective tool to support decisionmakinginanorganization withthe objective ofachieving world-class manufacturing status, where the systemwas usedtoanalyze the trends andperformance levels, basedon whichtechniques were formulatedtoeliminate losses. 1998 •Smith (2000) has emphasizedthat following a reliabilitycenteredmaintenance canlead theorganizationto achieve the world-class status in maintenance.2000 •Ingalls (2002) definedworld-class maintenance organizations as those that consistentlydemonstrate industrybest practicesandproduce bottom-line result as well.2002
  • 4. •A training needs analysis should be performed for the different people working in the plant. •Each pillar, such as planned maintenance, should be trained on maintenance-related courses, while a focused improvement group should be well versed on different analytical tools and techniques. •Likewise, operators should be trained with proper operation and safety on their equipment. Education and training is a continuous process and should be provided to all employees  Autonomous Maintenance: •Operator involvement must be defined in ways that make sense in the work culture. •There are tasks that operators can do without using any tools: clean and inspect equipment. The thing that they get the most return on investment in the early stages of TPM is operators learning how to inspect their equipment and pay attention to key things. It doesn’t take any tools or special skills; you just have to know what to look for. Maintenance people can teach the operators what to look and listen for.  Early Equipment Management: •Early equipment management is a system for dealing with problems that surface during test-running, commissioning, and start-up of new equipment. •Basically production and maintenance engineering people must correct problems caused by poor selection of materials at the design stage, errors occurring during fabrication of the equipment, or installation errors. In an ideal world, early equipment management should not be very complicated (particularly if maintenance prevention design is properly applied at the design stage).  Planned & Preventive Maintenance: •Planned maintenance is planning and scheduling of maintenance activities, as opposed to reacting to breakdowns and emergencies. •A maintenance department that uses TPM effectively generally devotes less than 10% of its labour hours to such unplanned activities. Without TPM, it is not unusual for 80%-90% of the labour to be unplanned. Unplanned maintenance is a strong indicator that prevention and improvement programs are non-existent or ineffective. In addition, high percentages of unplanned maintenance create problems. Challenges faced: A. Inhibiting Factors • “Resisting to change” by some employee. • Non resident consultant. • Lower education level of Workers. • Worker’s apprehension that manpower will be reduced. • Production worker feels extra work load. • Reluctant to change work practice.
  • 5. • Limited knowledge of world class maintenance. • Less time for world class maintenance activities. B. Facilitating Factors • Massive Mental Preparation prior to kick off. • Management support and priority. • Allocate significant Monetary, human resource and time. • Create understanding about world class maintenance at grass root levels, in advance. • Involvement of senior management is must. • Be Unwavering and Unflinching in support of world class maintenance  Reliability centred maintenance:  Reliability centred maintenance (RCM) is a corporate-level maintenance strategy that is implemented to optimize the maintenance program of a company or facility.  The final result of an RCM program is the implementation of a specific maintenance strategy on each of the assets of the facility. RCM offers five principal options among the risk management strategies:  Predictive maintenance tasks,  Preventive Restoration or Preventive Replacement maintenance tasks,  Detective maintenance tasks,  Run-to-Failure, and  One-time changes to the "system" (changes to hardware design, to operations, or to other things) Challenges faced in RCM:  To deal with each type of failure process in order to fulfill all the expectations of the owners of the assets, the users of the assets and of society as a whole.  Perform maintenance in the most cost-effective and enduring fashion  Gain active support and co-operation of all the people involved.
  • 6.  Effective Asset Management: Effective Asset Management is a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively. Managing assets effectively and maximizing asset effectiveness is the key to:  Achieving production targets  Controlling costs  Meeting corporate and organizational goals Types of asset management:  Financial asset management  Infrastructure asset management  Enterprise asset management  Public asset management Steps in EAM:  Create Asset Inventory  Define asset management scope  Prepare your organisation for asset management  Develop the Transportation Asset Management Plan  Use Tools and Techniques to Implement Asset Management Challenges in EAM:  A looming retiring workforce sometimes referred to as "the Great Crew Change".  Corporate strategy and operational reality are out of alignment; in other words, what the corporation plans to happen frequently isn't what really happens.  Organizational alignment issues: for example, maintenance management and production management goals and targets may not be in sync.  Corporate or organizational backing for technology investments may be lacking
  • 7. MAINTENANCE BENCHMARKING *This chart is reprinted from "Physical Asset Management Handbook" by John S. Mitchell published by Clarion Technical Publishers. This chart was originally developed by Kyoumars Bahrami in "A Maintenance Improvement Program Benchmarking" presented at MARCON (University of Tennessee College of Engineering). Permission to use this form was also granted from the University of Tennessee.
  • 8. MAINTENANCE INFORMATION SYSTEM: A modern approach to the maintenance problem requires an efficient support operated by the information system. There are a lot of articulated data to be taken into consideration. A system that collects and organizes this information is a prerequisite for any further elaboration. Nowadays, information technology provides to maintenance engineers and practitioners an automatic software platform called a “computerized maintenance management system,” with some advantages but also some omissions. Often engineers and practitioners cannot wait for the implementation of the computerized maintenance management system; their policies require robust information since from the phase-in of the equipment or plant. They may wish to get reliability results more quickly than in the case of data coming from products operating under normal conditions. This situation is usually faced using the experience of the maintenance personnel but several lacks of robustness of data occur. Alternative, more accurate approaches are accelerated testing and failure data prediction using an existing database. Information systems (IS) have been known to aid organizational management in providing quality services to their customers. However, if the IS used in organizations are not properly maintained, the quality of the services provided may be regarded as poor. In contemplating how IS quality connects with IS maintenance, Dekleva (1992) observed that the amount of time invested in IS emergency error rectifications and system malfunctions is most
  • 9. likely to interfere with the application of contemporary systems. Proponents of IS management have also stressed the importance of considering IS strategy as an organizational outlook on operation and management IS maintenance can be conducted through systems control, reliability, user participation, and training (CRUT). These elements are selected because they are hypothetically and practically significant in maintaining the IS quality used in organizations. Sector wise analysis of spares and maintenance costs Piddilite – Spending on maintenance and spares (Rs. In Million) (FMCG) Operating results YEAR 2010-11 2011-12 2012-13 2013-14 2014-15 Sales and other income 25302 30174 36145 41688 47242 Expense on spares and maintenance 2040 2110 2135 2170 2016.7 % Spending on spares and maintenance 8.06% 6.99% 5.91 % 5.20% 4.27% Maruti Suzuki (In Rs. Million) (Automobile) Operating results YEAR 2010-11 2011-12 2012-13 2013-14 2014-15 Net Revenue 371,272 364,139 444,003 445,235 508,022 Expense on spares and maintenance 39,381 41,647 57,735 59,221 66,431 % Spending on spares and maintenance 10.6% 11.44 % 13% 13.3% 13.08% Punj Lloyd Upstream Limited. (OIL and Gas) Operating results YEAR 2010-11 2011-12 2012-13 2013-14 2014-15 Net Revenue 618,030,000 859,299,000 851,109,000 984,985,108 815,839,103 Expense on spares and maintenance 102909950 161967000 221328800 182481463 169976978 % Spending on spares and maintenance 16.6% 18.84% 26% 18.5% 20.83%
  • 10. Note: Expense on spares and maintenance has been taken as 55% of other expenses. References: http://www.ceramicindustry.com/articles/92840-total-productive- maintenance-a-strategy-for-your-lean-journey http://www.automobileindustry.com/articles/92840-total-productive- maintenance-a-strategy-for-your-lean-journey http://www.academia.edu/5379968/A_ROADMAP_FOR_SUCCESSFUL_WORLD _CLASS_MAINTENANCE_IMPLEMENTATION_IN_INDIAN_AUTOMOTIVE_INDUS TRIES http://www.plant-maintenance.com/RCM-intro.shtml http://www.maintenanceresources.com/referencelibrary/rcm/rcm1.htm https://en.wikipedia.org/wiki/Reliability-centered_maintenance https://www.fhwa.dot.gov/planning/processes/tribal/planning_modules/ass et_management/page02.cfm https://en.wikipedia.org/wiki/Asset_management https://marutistoragenew.blob.core.windows.net/msilintiwebpdf/Maruti_AR_ 2014-15_Cover_to_cover_for_website_06-08-15.pdf