Demonstrate PdM Program Value
Prior to implementing any new PdM technology, be sure to perform some CMMS data mining activities first. Attempt to capture historical statistics on the types of failures you're trying to prevent with the particular technology you're implementing.
For example, if you're starting a rotating equipment vibration program, review CMMS WO history/failure codes for bearing-related failures and document these (numbers of failures & associated costs) in some form of chart/graph. This historical failure information will serve as your program baseline.
Keep this documentation up to date and, as the PdM program matures, you should see a steady decline in the number of bearing-related failures caused by vibration. Communicate this positive information throughout the entire facility in order to demonstrate the value of your PdM activities.
Tuesday, May 10, 2011
Tuesday, April 19, 2011
Take Control of your New Assets with a Maintenance and Reliability Readiness Plan
Have an Advanced Sneak Peek at MRG's May Article in BIC Magazine!
Take Control of your New Assets with a Maintenance and Reliability Readiness Plan
Having spent more than 25 years in the engineering, maintenance and construction industry, I have found that applying well thought out maintenance and reliability plans early in the design and construction phase is "cheap insurance" for quickly attaining availability and throughput targets while lowering the costs of maintenance for the remainder of the asset lifecycle. In fact, investing just 0.1% to 1% of the project costs on maintenance and reliability readiness yields:
See the full article in the May Issue of BIC Magazine!
Take Control of your New Assets with a Maintenance and Reliability Readiness Plan
Having spent more than 25 years in the engineering, maintenance and construction industry, I have found that applying well thought out maintenance and reliability plans early in the design and construction phase is "cheap insurance" for quickly attaining availability and throughput targets while lowering the costs of maintenance for the remainder of the asset lifecycle. In fact, investing just 0.1% to 1% of the project costs on maintenance and reliability readiness yields:
- Faster, safer more reliable start ups
- Sustainable availability and throughput targets
- 10-20% reduction in overall maintenance costs
- 20% reduction in the costs of spares
- Engaged workforce
See the full article in the May Issue of BIC Magazine!
Tuesday, April 12, 2011
Reliability Tip
Reliability Tip
In Conjunction to Your Maintenance Activities, Populate your CMMS with Current and Accurate Foundational Asset Data
All too often, basic asset information such as manufacturer, model, serial number and additional characteristics are not included in a plant's CMMS. In addition, spare parts lists for these assets are typically non-existent or are sparsely populated. Upon completion of maintenance activities, take a few minutes to capture asset nameplate information as well as any spare parts used during the repair and add the information to the hardcopy work order.
In Conjunction to Your Maintenance Activities, Populate your CMMS with Current and Accurate Foundational Asset Data
All too often, basic asset information such as manufacturer, model, serial number and additional characteristics are not included in a plant's CMMS. In addition, spare parts lists for these assets are typically non-existent or are sparsely populated. Upon completion of maintenance activities, take a few minutes to capture asset nameplate information as well as any spare parts used during the repair and add the information to the hardcopy work order.
Tuesday, March 1, 2011
Remote Risk?
Remote Risk?
When the impact is large, it only takes one.
Protect yourself with asset reliability solutions.
We take risks in virtually everything that we do - even in everyday events like crossing the street. In business, risks are events that could prevent achievement of an objective. Asset intensive companies take risks that the physical assets they invest in may not provide the returns they planned. In some industries, companies also take the risk that their physical assets may expose them to costs that are far greater than the value of their investment. Generally, markets recognize these risks and demand high returns for risky investments. Nevertheless, the past few years have shown us that companies that do not actively manage their risks imperil themselves, their industries and their communities.
The science of managing risk has advanced considerably in the last decade, driven by the occurrence of events that were thought to be only remotely possible but that had enormous impact. This excerpt from "Enterprise Risk Management - Integrated Framework" (COSO, 2004) provides a description of the role of risk management:
Operational Risk Management is the subset of Enterprise Risk Management that covers the uncertainty and risk associated with running physical assets.
The COSO framework meshes very well with reliability best practices but starts at a more strategic level, focusing on securing the organization's objectives rather than preserving system function. Applying the framework to an organization progresses through a series of analytical steps that should seem familiar to a reliability centered maintenance (RCM) practitioner:
1) Identify events that could affect an organization's ability to achieve its objectives, either positively or negatively.
2) Characterize the risk associated with these events by evaluating their potential severity of impact and their
likelihood of occurrence.
3) Define how the organization will respond to an occurrence.
4) Specify the controls that will be used to mitigate the impact of an event.
5) Establish how event-related information will be disseminated and how communications will be managed.
6) Monitor changes to the likelihood or potential impact of an event.
Because historical data is scarce on many events, evaluations are generally qualitative, resulting in relative values for severity of impact and likelihood of occurrence. A robust operational risk assessment evaluates the impact of events from the perspective of safety, environment, production, quality and maintenance cost. Once the organization's risk profile is understood, RCM and Failure Modes and Effects Analysis techniques are very effective at identifying needed controls.
Most companies have the system capabilities needed to properly monitor and manage operational risks but do not effectively use these capabilities for this purpose. A number of condition monitoring systems are on the market today and are widely used within asset intensive businesses. Additionally, EAM systems like IBM's Maximo and or SAP's PM module are designed specifically to manage and track the work that is vital to regulatory compliance. Financial benefits may be significant. Companies that actively manage operational risk should enjoy significantly lower cost of capital from increasingly savvy investors.
When the impact is large, it only takes one.
Protect yourself with asset reliability solutions.
We take risks in virtually everything that we do - even in everyday events like crossing the street. In business, risks are events that could prevent achievement of an objective. Asset intensive companies take risks that the physical assets they invest in may not provide the returns they planned. In some industries, companies also take the risk that their physical assets may expose them to costs that are far greater than the value of their investment. Generally, markets recognize these risks and demand high returns for risky investments. Nevertheless, the past few years have shown us that companies that do not actively manage their risks imperil themselves, their industries and their communities.
The science of managing risk has advanced considerably in the last decade, driven by the occurrence of events that were thought to be only remotely possible but that had enormous impact. This excerpt from "Enterprise Risk Management - Integrated Framework" (COSO, 2004) provides a description of the role of risk management:
- All entities face uncertainty and the challenge for management is to determine how much uncertainty to accept as it strives to grow stakeholder value. Uncertainty presents both risk and opportunity, with the potential to erode or enhance value. Enterprise risk management enables management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value.
Operational Risk Management is the subset of Enterprise Risk Management that covers the uncertainty and risk associated with running physical assets.
The COSO framework meshes very well with reliability best practices but starts at a more strategic level, focusing on securing the organization's objectives rather than preserving system function. Applying the framework to an organization progresses through a series of analytical steps that should seem familiar to a reliability centered maintenance (RCM) practitioner:
1) Identify events that could affect an organization's ability to achieve its objectives, either positively or negatively.
2) Characterize the risk associated with these events by evaluating their potential severity of impact and their
likelihood of occurrence.
3) Define how the organization will respond to an occurrence.
4) Specify the controls that will be used to mitigate the impact of an event.
5) Establish how event-related information will be disseminated and how communications will be managed.
6) Monitor changes to the likelihood or potential impact of an event.
Because historical data is scarce on many events, evaluations are generally qualitative, resulting in relative values for severity of impact and likelihood of occurrence. A robust operational risk assessment evaluates the impact of events from the perspective of safety, environment, production, quality and maintenance cost. Once the organization's risk profile is understood, RCM and Failure Modes and Effects Analysis techniques are very effective at identifying needed controls.
Most companies have the system capabilities needed to properly monitor and manage operational risks but do not effectively use these capabilities for this purpose. A number of condition monitoring systems are on the market today and are widely used within asset intensive businesses. Additionally, EAM systems like IBM's Maximo and or SAP's PM module are designed specifically to manage and track the work that is vital to regulatory compliance. Financial benefits may be significant. Companies that actively manage operational risk should enjoy significantly lower cost of capital from increasingly savvy investors.
Wednesday, February 23, 2011
Maintenance Tip: Tracking the Origin of Corrective Maintenance Work
Maintenance Tip: Tracking the Origin of Corrective Maintenance Work
Track the origin of your corrective maintenance work. Proactive organizations with good control of equipment condition find that the majority of their corrective work - work that is needed to remedy a substandard condition - comes from the results of structured preventive and predictive maintenance activities. These are usually reported by the Maintenance organization. Reactive organizations typically wait until there is a noticeable problem or loss of function until a work order is generated. This work is typically reported by Operations.
The best way to get this information is to create separate work types in your CMMS for corrective work from PM and PdM and classify the work accordingly. A simple query of hours by work type will show the source. If you don't have separate codes for this work, however, you can run a query of corrective work orders by requestor. If the requestors of most of the work are from Operations, you know you have a problem!
Track the origin of your corrective maintenance work. Proactive organizations with good control of equipment condition find that the majority of their corrective work - work that is needed to remedy a substandard condition - comes from the results of structured preventive and predictive maintenance activities. These are usually reported by the Maintenance organization. Reactive organizations typically wait until there is a noticeable problem or loss of function until a work order is generated. This work is typically reported by Operations.
The best way to get this information is to create separate work types in your CMMS for corrective work from PM and PdM and classify the work accordingly. A simple query of hours by work type will show the source. If you don't have separate codes for this work, however, you can run a query of corrective work orders by requestor. If the requestors of most of the work are from Operations, you know you have a problem!
Wednesday, February 16, 2011
Leveraging the “Visibility of your IR/T PdM Program” at the Corporate Level: Part 6
Leveraging the “Visibility of your IR/T PdM Program” at the Corporate Level: Part 6
Recognition can equal rewards and more!
Effort = Recognition
A great deal of time and effort is spent in becoming an expert at thermography. Now take those efforts and make them “visible”, not just with great thermal images. Take the trend data from the inspections and make it available for everyone in the organization to see. Data such as the type seen in the graph below can provide valuable evidence to support the efforts and further illustrate program effectiveness as it is showing positive business results. There are a number of ways to present the value-add benefits which are not limited to this one graph. The power of this graph, is that it shows, not only how many problems were found at each plant, but also how the continued improvement in the thermography program contributed to fewer problems found each subsequent year the thermography program continued.
Working From the TOP, Where You Want to Be
When approaching the corporate decision-makers in the organization, they view what a thermographer does and what is accomplished from a much different view point. Their view of these efforts is rooted from an economic standpoint. Again, not typically what might be expected. As a thermographer, you are accustomed to dealing with the replacement value or economic impact of the problem, but how does that contribute to the corporate “bottom line”? The corporate level is more interested in Return on Asset (ROA), Return on Investment (ROI), maximum equipment availability, regulatory compliance, minimum maintenance spend, reduced maintenance repair and overhaul (MRO) inventory, risk mitigation, alignment to corporate goals and objectives and alignment to maintenance objectives with ALL key plant functions. Learning to speak in financial benefits language will help allow corporate leaders to buy into thermography and apply that technology to drive Reliability throughout the organization.
Typically, corporate managers will be interested in the potential ROI of a program. The benchmarking data points below provide some interesting opportunities for analyzing this ROI. For instance, the illustrations below highlight maintenance savings for the paper industry. While the paper industry as a whole, credits thermography with only an 8% credit for ROI, imagine the improved results if management was aware of the entire value of a thermography program throughout the organization. It is the technicians’ job to make them aware and “sell it”. What the CEO and managers are truly interested in,
of course, is what are the potential savings.
Here is one more example to look at from the steel industry. Note the increase in technology credit for thermography.
Top performers maintain asset Reliability based on statistical criticality, usage and network analysis. Benchmarking shows the large difference between top quartile performers and the rest of competitive organizations. For example, top quartile steel manufactures will utilize thermography on approximately 80% of their mechanical equipment and 100% of their electrical equipment; fourth quartile performers utilize thermography on 0% mechanical equipment and 55% (or less) electrical equipment. This is typical across the market vertical. Some quick calculations can easily provide a business case for taking steps to move from one level to another. This benchmarking also proves how important a coordinated approach to improving enterprise asset Reliability is to achieving the results top performers have achieved. Maintaining equilibrium in all asset management practices is critical to success.
The illustration below is presented to show why managers of the organization look at Reliability and PdM programs the way they do, including thermography, from a financial viewpoint. This is an example of how even a small change in the reliable operation of a facility can have a dramatic impact on the overall financial performance of the organization. It is from a financial standpoint that corporate decision-makers review and evaluate every aspect of the thermography and PdM programs.
In conclusion, the visibility of a thermography program effort is paramount to each and every effort in the Reliability initiative. However, it is not just the thermal images from an infrared camera that tell the entire story. It is the visibility of the thermography program throughout the entire process and how it is ultimately sold throughout the organization and presented to the corporate decision-makers that will drive the overall success of Reliability initiatives. As thermographers, it is important not to get caught up in the quality and message of the thermal image because the thermal image is only part of the visibility of the thermography program.
Building standardized foundational data, starting with a master equipment list (MEL) and incorporating this MEL into an enterprise asset management configuration for use within the Planning and Scheduling efforts is the linkage to successful Reliability initiatives. Once these systems and tools are implemented, they bring together all of the thermal images, report data and inspection information to build and create a complete Reliability program. Finally increased awareness, program value, and organizational buy-in is encouraged and achievable by communicating across all levels of the organization. This includes communicating to management and understanding how corporate managers equate efforts in financial language. Thermography can assist in driving successful Reliability programs from the plant floor to the corporate suite when properly leveraged.
Recognition can equal rewards and more!
Effort = Recognition
A great deal of time and effort is spent in becoming an expert at thermography. Now take those efforts and make them “visible”, not just with great thermal images. Take the trend data from the inspections and make it available for everyone in the organization to see. Data such as the type seen in the graph below can provide valuable evidence to support the efforts and further illustrate program effectiveness as it is showing positive business results. There are a number of ways to present the value-add benefits which are not limited to this one graph. The power of this graph, is that it shows, not only how many problems were found at each plant, but also how the continued improvement in the thermography program contributed to fewer problems found each subsequent year the thermography program continued.
Working From the TOP, Where You Want to Be
When approaching the corporate decision-makers in the organization, they view what a thermographer does and what is accomplished from a much different view point. Their view of these efforts is rooted from an economic standpoint. Again, not typically what might be expected. As a thermographer, you are accustomed to dealing with the replacement value or economic impact of the problem, but how does that contribute to the corporate “bottom line”? The corporate level is more interested in Return on Asset (ROA), Return on Investment (ROI), maximum equipment availability, regulatory compliance, minimum maintenance spend, reduced maintenance repair and overhaul (MRO) inventory, risk mitigation, alignment to corporate goals and objectives and alignment to maintenance objectives with ALL key plant functions. Learning to speak in financial benefits language will help allow corporate leaders to buy into thermography and apply that technology to drive Reliability throughout the organization.
Typically, corporate managers will be interested in the potential ROI of a program. The benchmarking data points below provide some interesting opportunities for analyzing this ROI. For instance, the illustrations below highlight maintenance savings for the paper industry. While the paper industry as a whole, credits thermography with only an 8% credit for ROI, imagine the improved results if management was aware of the entire value of a thermography program throughout the organization. It is the technicians’ job to make them aware and “sell it”. What the CEO and managers are truly interested in,
of course, is what are the potential savings.
Here is one more example to look at from the steel industry. Note the increase in technology credit for thermography.
Top performers maintain asset Reliability based on statistical criticality, usage and network analysis. Benchmarking shows the large difference between top quartile performers and the rest of competitive organizations. For example, top quartile steel manufactures will utilize thermography on approximately 80% of their mechanical equipment and 100% of their electrical equipment; fourth quartile performers utilize thermography on 0% mechanical equipment and 55% (or less) electrical equipment. This is typical across the market vertical. Some quick calculations can easily provide a business case for taking steps to move from one level to another. This benchmarking also proves how important a coordinated approach to improving enterprise asset Reliability is to achieving the results top performers have achieved. Maintaining equilibrium in all asset management practices is critical to success.
The illustration below is presented to show why managers of the organization look at Reliability and PdM programs the way they do, including thermography, from a financial viewpoint. This is an example of how even a small change in the reliable operation of a facility can have a dramatic impact on the overall financial performance of the organization. It is from a financial standpoint that corporate decision-makers review and evaluate every aspect of the thermography and PdM programs.
In conclusion, the visibility of a thermography program effort is paramount to each and every effort in the Reliability initiative. However, it is not just the thermal images from an infrared camera that tell the entire story. It is the visibility of the thermography program throughout the entire process and how it is ultimately sold throughout the organization and presented to the corporate decision-makers that will drive the overall success of Reliability initiatives. As thermographers, it is important not to get caught up in the quality and message of the thermal image because the thermal image is only part of the visibility of the thermography program.
Building standardized foundational data, starting with a master equipment list (MEL) and incorporating this MEL into an enterprise asset management configuration for use within the Planning and Scheduling efforts is the linkage to successful Reliability initiatives. Once these systems and tools are implemented, they bring together all of the thermal images, report data and inspection information to build and create a complete Reliability program. Finally increased awareness, program value, and organizational buy-in is encouraged and achievable by communicating across all levels of the organization. This includes communicating to management and understanding how corporate managers equate efforts in financial language. Thermography can assist in driving successful Reliability programs from the plant floor to the corporate suite when properly leveraged.
Wednesday, February 9, 2011
Leveraging the “Visibility of your IR/T PdM Program” at the Corporate Level: Part 5
Leveraging the “Visibility of your IR/T PdM Program” at the Corporate Level: Part 5
Planning and Scheduling
Within the Computerized Maintenance Management System (CMMS) component of the EAM is where the Planning and Scheduling for the organization begins. Effective Planning and Scheduling is another contributor to the successful thermography program. An organized planning & scheduling process makes a significant difference for organizations looking to improve operating efficiency, thus impacting the bottom line through improved process efficiencies. Planning and Scheduling is one of the foundational bricks that is held in place by the PdM cornerstone and thermography contributes significantly to the program’s success through the interpretation of the temperature related data contained within the thermal image.
Data Is Not Static and Its Integrity Affects Business Performance
Technicians must ensure that all data and reports are in a standardized process function in order to facilitate an EAM focused approach to Reliability vs. a reactive maintenance management approach.
“Many companies simply think business intelligence tools will solve all their problems without thinking about the quality of the data the tools will draw upon.”
The average middle manager spends about 2hrs a day looking for data they need, according to a study by Accenture. “Managers have too much information, do too little sharing,” says Study.
Many corporations will make large initial investments in starting a PdM program, including: Infrared cameras, vibration data collection machines, other PdM technology tools, training, and more. What happens after the jump start of these programs is, unfortunately, significantly less impressive than their initial intent. Without having quality foundational data as the bedrock to grow the program, the initial enthusiasm of any PdM or thermography program will soon falter.
Reliability Programs should be “Owned” by All
It is as important to have a channel of communication within the maintenance and operations groups as it is across all other departments in an organization. Clarity is certainly a component as well as illustrating the benefits of new technologies by applying them to specific tasks. By showing everyone the performance gains and “what’s in it for me” the grumbling of those in doubt of the value demonstrated by new technology will remain at a minimum. Once a technician crosses this bridge, they will find them self in the enviable position of being looked at as a true helping hand. Technical experts need to understand that the new technologies, information and methods have a tendency to intimidate long time employees of an organization. Many plant personnel may consider the newly introduced technology a threat to the work habits that have developed over the years.
The key to this communication is the sharing of as much information with everyone who will be involved with, or affected by, the introduction of the new technology. Take them along on the inspections. Teach them about the technology. Let them have a view through the infrared camera so it is not a mystery. Make sure to follow-up on the information that is provided. Even if the reports created don’t directly involve them, include all departments that may benefit from the implementation of the new technology, i.e. Planning and Scheduling. Follow-up with them and ensure that the reports are physically available in the field for the repair. Often, it is assumed that the reports are being viewed by the end user, the skilled repair craft, only to find out too late, they didn’t even see what it was they were trying to repair. Remember, visibility is the ultimate bonus in everything a thermographer produces. Almost every other PdM technology involves numbers, graphs or data in some form other than a picture. As a thermographer, the thermal image tells the story. It is significantly easier for a craft person to “see” where the problem is with a thermal image. Make certain they are, in fact, seeing those thermal images.
Planning and Scheduling
Within the Computerized Maintenance Management System (CMMS) component of the EAM is where the Planning and Scheduling for the organization begins. Effective Planning and Scheduling is another contributor to the successful thermography program. An organized planning & scheduling process makes a significant difference for organizations looking to improve operating efficiency, thus impacting the bottom line through improved process efficiencies. Planning and Scheduling is one of the foundational bricks that is held in place by the PdM cornerstone and thermography contributes significantly to the program’s success through the interpretation of the temperature related data contained within the thermal image.
Data Is Not Static and Its Integrity Affects Business Performance
Technicians must ensure that all data and reports are in a standardized process function in order to facilitate an EAM focused approach to Reliability vs. a reactive maintenance management approach.
“Many companies simply think business intelligence tools will solve all their problems without thinking about the quality of the data the tools will draw upon.”
The average middle manager spends about 2hrs a day looking for data they need, according to a study by Accenture. “Managers have too much information, do too little sharing,” says Study.
Many corporations will make large initial investments in starting a PdM program, including: Infrared cameras, vibration data collection machines, other PdM technology tools, training, and more. What happens after the jump start of these programs is, unfortunately, significantly less impressive than their initial intent. Without having quality foundational data as the bedrock to grow the program, the initial enthusiasm of any PdM or thermography program will soon falter.
Reliability Programs should be “Owned” by All
It is as important to have a channel of communication within the maintenance and operations groups as it is across all other departments in an organization. Clarity is certainly a component as well as illustrating the benefits of new technologies by applying them to specific tasks. By showing everyone the performance gains and “what’s in it for me” the grumbling of those in doubt of the value demonstrated by new technology will remain at a minimum. Once a technician crosses this bridge, they will find them self in the enviable position of being looked at as a true helping hand. Technical experts need to understand that the new technologies, information and methods have a tendency to intimidate long time employees of an organization. Many plant personnel may consider the newly introduced technology a threat to the work habits that have developed over the years.
The key to this communication is the sharing of as much information with everyone who will be involved with, or affected by, the introduction of the new technology. Take them along on the inspections. Teach them about the technology. Let them have a view through the infrared camera so it is not a mystery. Make sure to follow-up on the information that is provided. Even if the reports created don’t directly involve them, include all departments that may benefit from the implementation of the new technology, i.e. Planning and Scheduling. Follow-up with them and ensure that the reports are physically available in the field for the repair. Often, it is assumed that the reports are being viewed by the end user, the skilled repair craft, only to find out too late, they didn’t even see what it was they were trying to repair. Remember, visibility is the ultimate bonus in everything a thermographer produces. Almost every other PdM technology involves numbers, graphs or data in some form other than a picture. As a thermographer, the thermal image tells the story. It is significantly easier for a craft person to “see” where the problem is with a thermal image. Make certain they are, in fact, seeing those thermal images.
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