100% MORE EFFICIENT · experts beyond myself and our company) speak for themselves. MAINTENANCE...

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100% MORE EFFICIENTA Manufacturer’s Guide to Preventive Maintenance

TABLE OF CONTENTS

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I N T R O

The Continual State of Innovation in Manufacturing Technology

S E C T I O N I

Preventive Maintenance (PM) for Manufacturers

S E C T I O N I I

Top 15 KPIs Monitoring by Leading Manufacturers

S E C T I O N I I I

How L’Oreal Uses CMMS (Case Study)

S E C T I O N I V

Sample CMMS Report for Manufacturers

M C

About Maintenance Connection

A U T H O R

About the Author

How Top Manufacturers Use Data to Double Uptime & Efficiency

The Continual State of Innovation in Manufacturing Technology

M A I N T E N A N C E C O N N E C T I O N M A N U FAC T U R I N G P. 02

As developing and advanced markets mature, preventive maintenance remains critical to a competitive, lasting manufacturing industry. But as economies develop, so does demand for more sophisticated manufacturing processes.

M A I N T E N A N C E C O N N E C T I O N P. 0 3

In advanced markets, competitive manufacturers face a challenging

environment: wages are on the rise, resource prices are volatile, consumer

demand for custom goods with add-on services is increasing,

manufacturing demand grows alongside it. and production level efficiency

matters more than ever. And as the future majority consumer class emerges

across developing markets,

So, what’s next in the innovative manufacturing industry?

As sophisticated manufacturing processes evolve, expect greater

productivity, asset and inventory management, and machines with

“as-a-service” components incorporated.

M A N U FAC T U R I N G

“A rich pipeline of innovation in materials and processes—from nano-materials to 3D printing to advanced

robotics—creates demand and drives productivity gains across manufacturing industries and geographies.”

2 0 1 2 | M C K I N S E Y G L O B A L I N S T I T U T E

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READ ONfor details about how companies like these

achieve PM program success.

Simultaneously, the IoT revolution has hit manufacturing tech,

smart buildings, machinery, and more. With it comes the need for

capabilities to track assets down to individual components and

parts. Connected asset and resource management throughout the

global supply chain enables information flow, insights and analysis

(at large and on a micro scale).

So how do organizations pave the way for manufacturing

advancement? Enter the innovative CMMS—your preventive

maintenance (PM) advantage.

Leverage industry best manufacturing technology in a way that

makes your operations more efficient, informed, preventive

and lasting. At Maintenance Connection, we work with leaders

and innovators across discrete and process manufacturing and

warehouse management. Manufacturers like Bridgestone, Cree,

HP, Kellogg’s, L’Oreal, Mary Kay, Mercedes Benz, Nissan, Proctor

and Gamble, Toshiba, and more have partnered with Maintenance

Connection to successfully implement CMMS, and in doing so,

stay ahead of market competition.

TH E G OA L

Preventive Maintenance (PM) for Manufacturers

M A I N T E N A N C E C O N N E C T I O N P. 0 6M A N U FAC T U R I N G

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CHECK OUT A DEMO OF MAINTENANCE CONNECTION

H E R E

To stay relevant and competitive in the age of Amazon-style warehouse, inventory and manufacturing management, organizations have to transition from reactive to preventive maintenance management.

WHY?

Greater productivity efficiencies across maintenance

teams, processes and technologies translate to bottom-line

savings. Think hard and soft costs, such as personnel, machinery

unit costs, increased asset lifetime, resources, and so on.

Plus, in the information age, insights are everything. If you can

anticipate trends across team and technology, then proactively

address them, you lessen the risk of costly downtime in the

process. Information management, insight, and access—from

management to maintenance technicians to subcontractors—

is key to achieving sophisticated manufacturing process and

productivity.

http://www.maintenanceconnection.com/website/watch-demo-page/

Translate big-picture benefits of preventive maintenance to the everyday savings of individual technicians to realize the more tangible grasp on what’s possible. Let’s allow the benefits (and research from experts beyond myself and our company) speak for themselves.


DAY IN THE LIFE OF A MAINTENANCE TECHNICIAN(With and without planning and scheduling.)

CATEGORY

RECEIVING INSTRUCTIONS

OBTAINING TOOLS & MATERIALS

TRAVEL TO AND FROM JOJB

COORDINATION DELAYS

IDLE AT JOB SITE

L ATE STARTS AND EARLY QUITS

AUTHORIZED BREAKS AND RELIEFS

EXCESS PERSONAL TIME

SUBTOTAL

DIRECT ACTUAL WORK ACCOMPLISHED

REACTIVE

5%

12%

15%

8%

5%

5%

10%

5%

65%

35%

PROACTIVE

3%

5

10%

3%

2%

1%

10%

1%

35%

65%

SOURCE: Maintenance Planning, Scheduling

and Coordination by Nyman and Levitt


So how do we get from point A to point B? How do manufacturers realize massive gains in maintenance management efficiency?

M A I N T E N A N C E C O N N E C T I O N

Maintenance managers need an easy way to monitor every component

involved in the production process, in both discrete and process

manufacturing plants. This solution reports macro and micro-level

insights—those your executive team needs to inform process goals and

decision making, as well as those your maintenance manager needs to

manage an aefficient team of maintenance techs.

A CMMS solution is imperative to keep track of schedules, equipment, and warehouse facilities—as well as inform overall plant efficiencies, productivity and uptime.

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R E A LIZE YO U R PM G OA L S

Top 15 KPIs Monitoredby Leading Manufacturers


Remember the adage, “What gets measured gets done.”

The first step toward achieving reliable PM efficiencies is setting and measuring against benchmark data and goals that aim to drive effectiveness and efficiency. Enter CMMS, and you’re on your way to tracking those KPIs that matter most to bottom-line manufacturing performance.


“A useful maintenance KPI lets you identify the issues causing your maintenance effects and helps you select the right

strategy to either support or correct the actions producing the results. It is important that when you select a range

of maintenance KPI you pick those that let you improve both equipment reliability and maintenance performance and

not simply tell you that you have problems in your business.”

L I F E T I M E R E L I A B I L I T Y S O L U T I O N S


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Total Annual Maintenance Time

Total Unplanned Downtime

Total Annual Preventive Maintenance vs. Corrective

Emergency Work Order

Average Annual Maintenance Cost

Average Annual Downtime

Annual Number of Failures

Mean-Time-Between-Failure (MTBF)

Inventory Stock Out Percent

Average Inventory Stock Investment

Percent of Work Orders by Type

Average Work Order Duration

Work Order Backlog Percentage

Percent of Overtime, Preventive & Corrective Labor

Maintenance Cost Per Headcount

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Maintenance Connection deploys hundreds of CMMS

implementations for manufacturers across the globe. The

following are the 15 top-tracked KPIs monitored across our

manufacturing customers:

R E A D O Nfor more information on each KPI, including a

general definition, why this particular KPI matters

for manufacturing maintenance, and in some cases,

sample Maintenance Connection CMMS reports.

M A I N T E N A N C E C O N N E C T I O N M A N U FAC T U R I N G P. 1 4

Total Annual Maintenance Time

Total annual maintenance time is the number of hours spent by

technicians repairing machine failures.

Note the difference between another commonly used KPI,

Average Annual Maintenance Time, which tracks average labor

hours per year— often divvied per asset, site or organization-wide.

When tracking average annual maintenance time, consider

reactive and preventive maintenance time, as well. Ideally,

preventive maintenance time is more efficient in terms of labor

hours—and overall labor hours decrease over time as preventive

ratios improve.

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Total Unplanned Downtime

Track all hours maintenance systems and assets cannot be used

for normal productive operations—due to unforeseen failure in

components or operator mistakes.

Unplanned downtime has a trickle-down effect on overall

maintenance scheduling and production. An increase in

unplanned downtime can also be indicative of a failing overall PM

strategy.

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Total Annual Preventive Maintenance vs. Corrective Maintenance

PM work is condition- or usage-based, whereas corrective or

reactive maintenance is the “fix it when it breaks” mentality.

Record hours and assign a preventive or corrective maintenance

label to each work order, so that this report is easy to pull in the

future.

Organizations with a 90% PM rate are operating under best-inclass

maintenance standards. Continually track your organizations

planned maintenance percentage to see progress toward more

preventive maintenance operations.unplanned downtime can also

be indicative of a failing overall PM strategy.


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Emergency Work Order Percent

To determine emergency work orders as a percentage of total

work orders, organizations must first define what exactly will

classify into the “emergency” work category. Maintenance

Connection commonly will classify as breakdown jobs, where

production stops or is reduced drastically due to an equipment

failure.

Emergencies happen—even to the most preventive maintenance

teams. While emerging work order percentage of overall jobs is

a lagging KPI, versus an indicator of more efficient process, it’s

still worthwhile to measure. Those who do can better anticipate

emergencies, and make the time for this work category, by moving

as many other work orders into the preventive process.


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Average Annual Maintenance Cost

Average annual maintenance cost helps manufacturers determine

total cost of asset ownership, as well as total cost of site-wide and

organization-wide operations.

To calculate cost per instance, consider repair parts as well as

labor costs. Factor in how many instances occur annually, then

repeat the process across all assets to total a complete average

annual maintenance cost.


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Average Annual Downtime

As it’s name indicates, average annual downtime is the number of

hours of downtime occurred or expected.

For maintenance managers, knowing just how much machine

downtime occurs annually is critical. Armed with that knowledge—

and broken down into downtime cost per hours—maintenance

managers can better predict downtime, costs of repair, of how to

scale up to greater PM.

—

Related Read: See the Maintenance Connection blog for a helpful

post, A Simple Tool for Calculating Machine Downtime, by Ben

Lasher.

Within the post is an interactive tool that calculates average cost

of downtime per hour as well as estimated revenue loss per hour of

downtime.


M A I N T E N A N C E C O N N E C T I O N M A N U FAC T U R I N G P. 2 0

Annual Number of Failures

In measuring asset reliability and risk, data related to failures is

critical—and it includes many elements. Consider overall number

of failures, and whether you have the supporting failure data

broken down into the following cause and solution fields:

— FAILURE CODE HIERARCHY

— COMPONENT PART, PROBLEM AND CAUSE CODE

— MAINTENANCE TACTICS

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Mean Time Between Failure (MTBF)

MTBF is the predicted elapsed time between inherent failures of a

system during operation. (Source: Wikipedia)

This KPI helps maintenance managers predict machine reliability

and availability basics. For instance, if an organization can predict

when a machine will fail along with how long it will be until uptime

resumes, it can more likely ensure another system is operational

at that time.strategy.


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Inventory Stock Out Percent

Stock out occurs when inventory is exhausted. The global average

of retail stock out is 8.3%. (Source: Wikipedia)

Recent innovations in the store-to-supplier logistics chain,

including efficient consumer response (ECR), radio-frequency

identification (RFID), and point-of-sales (POS) analytics, signal

opportunity for better supply chain management for the

manufacturers of consumer goods. When more intelligent retail

response meets smarter CMMS processes at the manufacturer

level, organizations have the potential for real-time inventory

capacity planning and true logistical advantage.


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Average Inventory Stock Investment

Effective manufacturing performance demands regular

management of one of the organization’s largest investments:

inventory. Depending on the quantity of inventory managed,

companies with less can monitor inventory investments

annually, or those with high value inventory may monitor

monthly or weekly.

Time spent managing inventory stock investment can

be managed more effectively when assets and parts are

maintained in a CMMS.


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Percent of Work Orders by Type

Categorize all work orders by type (corrective, preventive,

emergency), and track those percentages often.

Of all work orders, what percentage is preventive? Amount

of preventive maintenance requests are the number of work

orders generated for routine maintenance tasks, with the goal to

anticipate and prevent a failure or corrective job. These can be

scheduled per recommended asset specifications (every 90 days

or 5,000 miles, for example). You’ll be aiming for the 90% PM for

best-in-class operations.

Tracking different types of work orders, specifically preventive,

corrective and emergency, helps organizations set benchmarks

and move toward more preventive practices.

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Average Work Order Duration

Average work order duration tracks hours from work order

creation to completion.

Work order duration reports maintained individually are ideal

for planning purposes— should a similar asset need maintained,

you’ll have a reference for expected downtime. And maintenance

managers and techs can flag those jobs with unusually high hours.

But the true value in tracking average work order duration as a

KPI toward more PM practices is when maintenance managers are

able to group reports by tech, asset type, asset brand or model,

site, season, and more.


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Work Order Backlog Percentage

Work order backlogs consist of work that has yet to be completed

for any number of reasons. Work orders in backlog can be sorted

by days in queue or past due (current, 30 days past due, 90 days

past due, etc.) and by priority level of the job (think mission-

critical, preventive, and wish-list or rainy-day items).

This KPI is critical to maintenance managers as it shows how

resources are, or are not, being effectively allocated. A high

quantity of top priority work orders in the backlog can also signal

the need for overtime labor.

Those manufacturers committed to reliable PM want to see a low

percentage of work orders in the backlog. And of those in the

backlog, it’s better to see lower-priority work orders in the queue.


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Percent of Overtime, Preventiveand Corrective Labor

Track overall labor hours—as this is one of your most important

resources. Categorize labor hours by work order type (preventive,

corrective and emergency or overtime) as well as regular vs.

overtime. In terms of percentage overtime, aim for less than 5% of

overall labor hours.

Noting spikes in overtime can indicate inaccurate overall labor

forecasts or flag potential problem assets or techs.

“Consistently underestimating the time it takes to complete

a job can lead to the company paying too much in overtime

labor costs—and potentially burning employees out.”


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Maintenance Cost Per Headcount

Cost per headcount factors in employees’ gross salary, the

overtime pay, and the company’s contributions for the employee’s

benefits. Divide the total cost per headcount by total annual hours

worked to arrive at an hourly cost per headcount—then compare

to overall maintenance costs (annually and per hour).

For maintenance managers, this KPI should indicate whether

operating costs in the maintenance division are balanced with

outputs within the department.


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Given the complexities of modern maintenancemanagement, all of these KPIs are best measured using a computerized maintenance management system (CMMS). A CMMS makes it organized, logical and easy to track any and all assets within a manufacturing facility.

—

Keep reading to see exactly how L’Oréal, a globalcosemetics manufacturer, improved performance reporting and asset organization using Maintenance Connection’s CMMS.

S EC TI O N I I I

How L’Oréal Diminished Asset Downtime and Increased Mechanic Utilization with CMMS Implementation


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Since implementing a CMMS, L’Oréal documents these benefits:

— The ability to pull executive reports for a snapshot of maintenance performance and health.

— A platform to update asset information in real-time with work order status.

— A way to pinpoint how and why downtime occurs across the plant.

— An increase of mechanic utilization on the floor.

For more than 100 years, L’Oréal has been known as the

world’s largest cosmetics company. Headquartered in

Clichy, Hauts-de-Seine, France, the company also has five

major manufacturing facilities in the U.S, as well as 15

distribution centers across the country.

CL I CK TO R E A D TH E FU L L C A S E S T U DY

H E R E

http://www.maintenanceconnection.com/website/profile-success-loreal/

“We chose Maintenance Connection due to its ease of use— Ease of use was critical for us because we needed the team to recognize the value of the software and how it could help us.

More importantly, we had to get people to use it.”

H A R R Y S I LV E R M A N | A S S I S TA N T V I C E P R E S I D E N T O F E N G I N E E R I N G AT L’ O R E A L

Watch the video or

CL I CK H E R E

to learn more about L’Oréal benefits from CMMS.



S EC TI O N I V

Maintenance Connection’s Sample CMMS Manufacturing KPIs



% NON-PM (Reactive) WORK ORDERSCurrent Value: 85%

TARGET: 15% | VARIANCE: -3

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200

300400 500 600

0

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1000

100

200

300400 500 600

0

900

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1000

100

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300400 500 600

0

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700

1000

MEAN TIME BETWEEN FAILURECurrent Value: 0.0 Days

TARGET: 90 | VARIANCE: 90.0

WORK ORDERS OVERDUE (PM)Current Value: 176,800 PM Work Orders

TARGET: 25% | VARIANCE: 176,775

% OVERTIME VS. REGUL AR HOURS Current Value: 5%

TARGET: 5% | VARIANCE: -5


Maintenance Connection is the sole provider of a CMMS/EAM solution uniquely positioned to manage all aspects of a maintenance operation, right at the fingertips of maintenance personnel. Maintenance Connection provides solutions in all aspects of maintenance, all packaged in an intuitive and easy-to-use interface that allows you to manage maintenance, not software.


Since 1999, Maintenance Connection has emerged as one of the dominant solutions providers. And our customers keep coming back again and again as a result. Our unique blend of customer focus and leading-edge technology makes up an or-ganization you will want to partner with.

Maintenance Connection


MORE ON MAINTENANCE CONNECTION

Our unique blend of technology and personalized service is a critical component of our client satisfaction. Whether it’s accuracy, reliability, response time, attitude, expertise, support or follow-up, our attention to service is evident in the people we hire, the systems we develop and the way we interact with our clients.


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Brian Kincaid joined the Maintenance Connection team in

2004, and is now the company’s chief customer officer.

Since joining the team, Brian’s top priority has always

remained simple: ensure customers are using Maintenance

Connection to its fullest—from onboarding, through our

annual user group summit, daily support, and everything in

between. His work is a testament to the company’s overall

culture and commitment to customer success. Proof lies with

loyal 10+ year customers, and an overall 98% satisfaction

rating.

Brian continues to lead the charge on MC User Connect,

a portal that houses forums, news, documents, product

suggestions and more, exclusively for our customers. Brian

is a graduate of the University of California, Santa Barbara,

and California State University, Sacramento. Outside of

Maintenance Connection, Brian enjoys volleyball, adventures

and a good steak.To learn more about Brian

CONNECT WITH HIM ON

L I N KE D I N

https://www.linkedin.com/in/brian-kincaid-12518b6?authType=NAME_SEA

READY TO TRY MAINTENANCECONNECTION’S CMMS?

Want to see how a CMMS can supercharge your performance and ROI?

WATCH A DEMO OF MAINTENANCE CONNECTION!

http://www.maintenanceconnection.com/website/watch-demo-page/

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