Costs – Top performers begin with some form of gap analysis to understand the current state of relevant practices and to measure gaps that exist between current state and top performance. From that point, calculating costs to close gaps is objective and fairly accurate. Major investment categories typically include:
- Development of Corporate Standards for work management, materials management, configuration change management and reliability excellence
- Development of a Roll-out and Implementation Strategy taking advantage of work done at one plant as appropriate for other plants
- Creation or Improvement of Foundational Information (Functional Location Hierarchy, Master Equipment List, Spares Materials Catalog, Bills of Material/Parts Lists)
- Objective Criticality Ranking of Equipment
- Methodical Analysis of Failure Modes, using combination of Reliability Centered Maintenance Analysis (RCM), Failure Modes and Effects Analysis (FMEA), and templating where appropriate, to determine the optimum PM and PdM activities that need to be deployed for your population of equipment
- Based on methodical analysis, perform PM Optimization, eliminating unnecessary PMs, deploying recommended PdM, and creating the PM/PdM work orders in the CMMS system to automatically schedule these activities
- Creation of Balanced Metrics Measurement system
- Training and Awareness
- Culture Change and Rewards System Alignment
- Compliance Monitoring and Continuous Improvement
There is a lot of guidance that can be used to estimate the costs of closing gaps, but for purposes of this article, suffice to say that while these costs are not insignificant, in the context of the benefits and the financial business case, they are almost always easily justifiable, with typical Returns on Investment (ROI) from 8:1 to 16:1 and higher, and with Internal Rates of Return (IRR) from 50% to 250% or higher.
Summary:
Well, in summary, what do we know and what do we believe?
- We know what good looks like, and a big part of that picture can be summed up with the phrase “More Predictive and Less Preventive”. We know that Predictive Maintenance is driving a large percentage of work on a daily basis at the top performing plants, and this, of course, is good news for the readers of this magazine. Our time has come!
- We know that the top performers achieved their success using remarkably similar practices – regardless of their industry, so we shouldn’t spend a lot of time debating what good looks like.
- We know that you can’t piecemeal your way to prosperity - the top performers attacked the opportunity holistically – weaving all of the aspects of a top-level practice carefully together to unlock the hidden benefits.
- We know that even the top performers have been unable to uniformly elevate their maintenance and reliability practices across the entire enterprise, and we believe there are good business reasons for trying to do so, including reduced cost of implementation company-wide (vs. taking a plant-by-plant approach) and increased ROI.
- We believe the size of the opportunity is three quarters of one Trillion dollars annually in the U.S. alone, and could exceed $2 Trillion world-wide!
- We know the direct benefits will come from maintenance spend reduction, spare parts inventory reduction, reduced energy consumption, improved quality, reduced scrap and increased throughput/asset utilization.
- We believe there is a correlation between success of any corporate improvement initiative – whatever it is - and improved reliability practices. The indirect benefits come from unlocking hidden benefits in other parts of the business previously thought to be unrelated to reliability, and they can be substantial.
Finally, we know that the financial business case for reliability – including predictive maintenance - is here, and the awareness in your executive suite is emerging. If you are involved in predictive maintenance, I urge you to be confident in what you are doing because the role you are playing is essential for your corporation to achieve success – and the executives in your company are figuring that out!
Robert S. DiStefano
Chairman and CEO
Management Resources Group, Inc.
Southbury, Connecticut
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ReplyDeleteRCM also offers specific criteria to use when selecting a risk management strategy for a system that presents a specific risk when it fails. Some are technical in nature (can the proposed task detect the condition it needs to detect? does the equipment actually wear out, with use?). Others are goal-oriented (is it reasonably likely that the proposed task-and-task-frequency will reduce the risk to a tolerable level?). The criteria are often presented in the form of a decision-logic diagram, though this is not intrinsic to the nature of the process.
The fastest and most efficient way to facilitate the analysis uses two fully certified co-facilitators to lead the analysis. Co-facilitation RCM Service combines the expertise of our most experienced RCM Blitz™ facilitators with the experience of our PM/PdM program managers.
Reliability Centered Maintenance services
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