1 of 51

How to successfully implement a

Computerized Maintenance System (CMMS)

By:

Kris Bagadia

PEAK Industrial Solutions, LLC Phone: 262-783-6260

Email: Krisb@PEAKIS.com

2 of 51

About the Author: Kishan (Kris) Bagadia PEAK Industrial Solutions, LLC PO Box 774 Brookfield, WI 53008 Phone: 262-783-6260 Fax: 262-781-9972 Email: Kris@PEAKIS.com

Education: B.S. (M.E.), M.S. (I.E.), PE, CPE Certification/Licenses:

Professional Engineer (PE) Certified Plant Engineer (CPE)

Experience:

After eight years of experience as a Plant Engineer and Project Manager for three different manufacturing companies, Mr. Bagadia founded a firm specializing in Maintenance consulting and training. He is the owner and CEO of PEAK Industrial Solutions, LLC. Mr. Bagadia worked as a Maintenance Supervisor for about four years. He has been involved with every aspect of CMMS for over two decades, including, designing, developing, testing, selling and marketing CMMS. He understands maintenance functionality and how a CMMS can accomplish them. Mr. Bagadia authored several books on Computerized Maintenance and has been a contributing author of several handbooks. He published numerous articles in technical and trade journals, has conducted dozens of seminars on Maintenance Management since 1982, and is a frequent speaker for organizations such as Society of Manufacturing Engineers (SME), Institute of Industrial Engineers (IIE), National Manufacturing Week, and a wide variety of universities. Hes an accomplished speaker who makes complex, technical information easy to understand and apply. Publications:

Authored a book Computerized Maintenance Management System made easy published by McGraw-Hill

3 of 51

Authored a book entitled Microcomputer Aided Maintenance Management System published by Marcel Dekker, Inc.

Authored a book entitled How to Select and Justify Manufacturing Software Authored a chapter Evolution of Computerized Maintenance Management in

the Encyclopedia of Microcomputers, published by Marcel Dekker, Inc. Authored a chapter in Materials Handling Handbook published by John Wiley

and Sons. Authored many technical articles published by various journals.

4 of 51

Table of contents

1. Introduction 2. Why so many CMMS projects fail

3. Step by step process

Form a team Management Commitment Order software / hardware Training Define scope of project Data gathering Data entry Follow up / Monitor

v Key Performance Indicator (KPI) v Upgrading your CMMS

Appendix A: Overview of CMMS Appendix B: Bibliography

How to successfully implement a Computerized Maintenance System (CMMS)

5 of 51

1. Introduction

A well-planned and executed Computerized Maintenance Management System (CMMS) project can yield a maximum return on your investment. Your return on investment (ROI) will be realized through increased efficiency, increased productivity, and increased profits. However, a poorly planned and executed CMMS project can result in a loss of revenue. These losses can be measured in terms of the overall investment in the computerization project, as well as losses from wasted time, and lost projected revenue forecast upon the successful installation and implementation of a CMMS.

How to successfully implement a Computerized Maintenance System (CMMS)

6 of 51

2. Why so many CMMS projects fail

Many CMMS projects fail to reach their full potential. Many projects of this sort just plain fail. Here are some of the factors:

Not Having Management Support for the CMMS

The major element necessary to the success of any large undertaking is commitment to the project and support by upper level management. Any ambivalence about the project, or direct lack of interest on the part of upper level management will doom it from the start. If upper level management is fully committed to the success of the project and approaches it from a rational, reasonable perspective, success is almost assured.

Employee turnover

CMMS projects fail because of employee turnover for one of three reasons: a key member, or members of a project team may resign, be terminated, or transferred. With a sophisticated project like the CMMS, continuity is a key factor in its success. In order to establish that continuity, and maintain it in the event of personnel changes, each step of the project should be fully and accurately documented.

Employee resistance

Often, employee resistance to computers is not considered when management decides to acquire a CMMS. This problem can be even more devastating than losing key members of the project team. Employee reactions to computers can range from enthusiastic, to acceptance, to indifference, down to almost phobic hostility. Management may look at the CMMS as a tool to help employees in their work, and in turn enhance the bottom-line. Employees, on the other hand, may view the computer as an intrusion, threatening their professional and personal security. Employee resistance to the computer does not have to prevent or delay your project. Thoroughly plan your implementation phase. Be familiar with the new system. Actively lead your employees. Make it clear you would not ask them to do something you would not do yourself. Reinforce the importance of their support and the overall commitment to the project. Emphasize that the CMMS will be a helpful tool and should not be considered a threat either personally or professionally. Make sure your employees know they have a receptive place to turn if there are problems. If you take these steps, the chances are

7 of 51

overwhelmingly in favor of your system living up to or in fact, passing your expectations, goals, and objectives.

Wrong selection of the CMMS

Being Locked In to Restrictive Hardware / Software

Lack of Adequate Training During Implementation

Lack or absence of follow up and monitoring

Not Having Adequate Supplier Support for the CMMS

8 of 51

3. Step by step process for implementing a CMMS project

Form a team

Establish a team

The first step is to establish a team. The team should consist of the plant engineer, maintenance manager, maintenance employees, and representatives from MIS (IT), purchasing, and accounting departments. Marketing, Sales and Human resources should also be included. You should get every one involved that has any impact on this project. You might get the software vendor on the team also. Software vendor will prove to be an asset on the team as they work with hundreds of companies. Involving your employees in the implementation process enables you to break down their resistance to computers and build enthusiasm for CMMS as a tool to facilitate their work. Systematic, periodic reports should be submitted to upper level management keeping them informed of progress, or lack of it. If it is necessary to replace members of the project team, new team members can be introduced with a minimum of disruption or lapses in the projects continuity.

Project Leader

The maintenance manager should assign one person the responsibility of implementing the CMMS. Along with obvious commitment and enthusiasm for the new project, it is important that the project leader knows as much about the hardware and system as possible. The project leader should know the company structure, understand maintenance functionalities, and should be able to work with other departments. The team needs definite direction. Confidence in the project and its objectives comes from a thorough knowledge of the hardware and the application. If the leader can display such a knowledge and confidence to team, they will be motivated to learn as much as possible. The team should know what to expect from the system and what is expected from them. It should be understood there will be problems in the beginning stages of the new system, but those problems will be worked out. One of the project leaders roles is to keep all activities coordinated. As an example, an integrated CMMS will use Inventory part numbers for

9 of 51

constructing equipment parts list that will be used in planning the part numbers to be used on work orders. If some independent individual in the purchasing or stock room

decides to change their numbering system, all of the parts numbers and equipment parts list in the CMMS will be invalidated and useless. Work-order and inventory activities will not function properly. The presence of a project leader would avoid these kind of problems. The other role is to keep the team motivated. One method of motivating and preparing the team for the change is to get them directly involved in the project from the start. Make it clear that changes are going to occur, and that they have a direct role and input into those changes. If they feel that they not only have a stake in the program, but have some say in it as well, they will more likely take an active interest in the new system. Reward their initiative, and attempt to establish open lines of communication. Solicit ideas and feedback on a regular or open door basis. Following are some points for encouraging communications with the team:

Ask for suggestions concerning needs and desires for the new system.

Allow your employees to help design custom input screens for the

new system; this will give them some say in what they are going to be dealing with.

Give your employees a forum to air their feelings and concerns

about the new system. They are sure to have questions about their place in any reorganization that may occur as a result of the new system. Remember, communications is a two-way street. Listen carefully to what they have to say. Consider all of their suggestions, concerns, and complaints.

Periodically call your staff together to discuss training, progress,

and any problem areas that may arise during the implementation stage and after.

Management commitment

As stated earlier, upper level management must be totally committed to the CMMS project. This commitment must include allocation of manpower and resources needed to complete the project successfully. When providing for resources, it is extremely important that upper level management understands that the purchase and operation costs of the project may sometimes be less than the cost of implementing it. It is crucial that you do not attempt to squeeze your manpower, or attempt to cut corners in the data-gathering and training phases of your project. If the data-gathering portion of your project

10 of 51

requires more personnel, there should be contingency plans to provide the personnel in a timely and efficient fashion. Placing unrealistic expectations on your project team

will only prove counter productive. Although the early stages of the project are time consuming and expensive, it is important to understand that patience and investment will pay off in the long run.

The Role of upper level management: During the implementation, plant engineers or middle managers will inevitably reach a hurdle that can only be cleared with the support of a senior manager. Other departments will have their own agendas and priorities and they will not see things your way. In these circumstances conflicts of interest are common. These disputes may only be resolved with the support of a senior manager. He/she also has to make decisions on the release of resources to work on the project.

Order Software/Hardware

During the justification process, you justified a CMMS and any hardware needed to support the project. During the evaluation/selection process you selected a CMMS package suitable for your organization. At this time you should issue purchase orders for CMMS and hardware (if required).

Training

Training is a multiple phase process. Make sure people who will operate the CMMS are familiar with computer basics and operating system. If not, provide them with basic training so they are ready for CMMS application. CMMS application can also be done in 2 different phases, initial training to get the system up and running and advanced training after spending a period of time with implementing CMMS. Be sure that every trainee is given enough help to become comfortable and confident in what he or she is doing. Even a small shortage of needed training can cause an employee to backslide, lose confidence and eventually cause project failure. The new system cannot afford that. All personnel who will use the CMMS, or maintain it or oversee its operation should be included in the training process. Knowledge builds confidence. The better trained your staff is; the better your system will run. Adequate training is one of the most important elements in reducing employee resistance to a new system. Therefore at the time of choosing the CMMS and the vendor, you looked for those who offer thorough training and implementation support.

11 of 51

Accept any and all training support from your vendor. You may wish to contract with your vendor for additional training support or follow-up training programs or services.

Remember, while the training may initially seem an expensive proposition, in the long run it will not only prove beneficial, but overwhelmingly cost effective. Training should be an on-going process to promise new users in your company with the full course while current users take refreshers as needed or desired. This continuity will accommodate the inevitable personnel changes and system evolutions that will occur over the life of the system. As users leave, their replacements must be trained as thoroughly as if they had been original users. This need is frequently overlooked! During the training process, the newly installed CMMS can be checked thoroughly to assure that it works as planned. Feedback from trainees should be recorded and analyzed to assist in evaluating system performance and potential modification. Action on trainee responses will not only result in system refinements, but will improve the general acceptance of the CMMS.

Define scope of project

You first need to determine which CMMS module to implement. For example, you might implement Equipment, PM, Work Order, and Inventory modules first and Purchasing module at a later date. In some cases, you might want to implement all of them simultaneously. Next you should decide which equipment to implement first; all of them or the critical ones first to start with. Same concept applies to Inventory parts. It basically depends upon kind of manpower you have available.

Data Gathering

Data collection and entry are critical to a successful implementation. A computer system cant live on software alone, but must have data to work on as well. Thus, the same care and attention given to planning the training effort also must be given to locating data sources and determining how to collect needed data for entry into the CMMS. Let us take inventory as a typical example. The first step in implementing a software project is gathering information on all the parts. Most likely, a manual system exits, with cards providing the part number and other limited bits of information. This is where you start. The information-gathering activity requires considerable time and numerous calls to vendors to obtain all the detailed information essential for maintaining

12 of 51

a maintenance inventory. Remember, one reason many companies fail in implementing a software package is difficulties they experience at this point. A major shortcoming is

failure to commit sufficient manpower How many people are needed? That depends on how fast you want to implement the system and how good your records are. For a system of 20,000 parts, you should have a full-time person collecting information. Depending on how good the manual records are, it may take two to six months. The other area of data collection is equipment and preventive maintenance. Many sources of data may be used in the collection and entry process. The current crew of mechanics probably will have the best knowledge of what specific preventive maintenance work is needed to keep the equipment operating. Manufacturer specifications are valuable as well and some CMMS suppliers offer their own databases of equipment performance history as both starting point and continuing reference. The current crews and supervisors will be able to contribute good knowledge of what equipment items are present in what areas and accounting department records may help as well in developing the list of equipment items.

Mass data requirements

This area in particular is becoming easier to facilitate in a rapid manner. Large data libraries are becoming more and more accessible. For example:

Parts Lists Creation

Many vendors are beginning to create online parts listings for their equipment. These can easily be transferred to the CMMS systems. Some CMMS systems can even support live linking, further reducing the workload for this task. A database of such materials will cut short the implementation time significantly.

Equipment Data

This is another area where there is starting to develop large libraries of information. Many vendors have this information online. So initial data can easily be created.

Work Order Templates

Again there are a number of databases on this topic already in existence. And there will be many sources for information on these including trouble shooting guides from manufacturers and an initial library of corrective actions either from manufacturers or from employee knowledge and skills.

13 of 51

Data Entry

You have to decide who is going to enter the data, your own employees or outside temporary help. Either way, develop a prototype before entering all the data. Enter a few records into your CMMS and go through the whole cycle of generating work orders, completing work orders, generating work histories etc. Enter all the data when you are fully satisfied the CMMS is working adequately.

Follow up/Monitoring

Merely keeping the system running smoothly is not enough to justify its continuing existence. It also must produce something useful. To assure that goal, make sure that the CMMS continues to serve the purpose for which it was purchased. There are many different indices available for evaluating maintenance costs. Among them are maintenance dollars per pound of product, maintenance cost per company employee and equipment maintenance hours per production hour. There is no consensus among maintenance managers or consultants as to the relative importance to be given to these or any of the other quick measures of maintenance effectiveness. All of these indices contribute to the general measures of maintenance effectiveness, but no one index tells the whole story.

Key Performance Indicators (KPI)

During the justification process, you had developed a list of KPIs for your application. Now is the time to monitor those to ensure you are meeting or exceeding the goals. As an example, the total of maintenance hours completed must be compiled (probably normal outputs for most CMMS). The totals for each category (PM, repair etc.) as a percentage of the total maintenance hours may then be compared. Monitoring of how well the system and the maintenance effort, in general, are performing. If the unplanned work rises, two possibilities exist: there may be more breakdowns in general, or there may have been single large problem. Whatever the reason, the increase in unplanned work means less total maintenance work done by the work force due to the lower productivity of unplanned time. A closer look at the CMMS summary reports and work orders will provide initial answers as to where the problem lies. If the problem stemmed from a single large failure, the maintenance effort may still be performing as needed. The failure should still be investigated to find its cause. This is how CMMS acts as a valuable tool in enhancing your productivity.

14 of 51

If breakdowns have indeed been increasing, the condition of the equipment may be

deteriorating. The effectiveness of maintenance work or productions handling of the equipment may also have deteriorated. These possibilities must be explored. Slacking off on PM results in an increase in the breakdowns that cause emergency or unplanned work. With lower PM, fewer problems can be found before they mature into large disasters. Equipment is not kept in proper adjustment and lubrication and regular item replacements are not kept up. Failures result with increasing frequency. Therefore, monitoring of PM work is also a most sensitive barometer of current maintenance system effectiveness and future equipment breakdown expectations.

Upgrading your CMMS

As system usage settles in and experience is developed, however, possibilities for improving the system become apparent. Discussions occur with suppliers and other users on how to make the improvements. The upgrade/ replace process should follow the same general path as the original purchase process. First establish the need, next develop support for the change, find the system upgrade or replacement to accomplish the change and then implement and operate it. Change for changes sake makes little sense in the case of a CMMS. But change to develop or add a needed function or capability does. Therefore the time to consider an upgrade or replacement of yours CMMS is when you become aware of the need for additional capabilities, which can be cost-justified. This may occur, for example, through the persistent lack of data needed for making specific decisions or producing needed reports. One or two data deficiencies do not make a trend. However, frequent gaps in needed data are a sign that the system needs were not fully understood during system selection, system usage has grown beyond original expectations, or some combination of the two. Whichever is true, system improvement or replacement is indicated. Most systems have a great deal of growth potential built into them. Much of that potential can remain unused throughout the life of the system because the users are not aware, or have forgotten it is there. In some cases, using that untapped resources can avert the need to upgrade or replace. The trick is to know what your systems true capabilities are and use them as required. If the full job of putting in a new system must be done, at least the full benefits of using the system will come with it. Upgrade or replacement

15 of 51

would not be done if the benefits have not been proven with the existing system.

16 of 51

Appendix A CMMS Overview

Table of Contents:

I. Maintenance Management

II. Computerized Maintenance Management System (CMMS)

III. CMMS Modules

A. Equipment Management B. Preventive Maintenance

Introduction Aspects of PM How to start a computerized PM Developing a priority list for PM Preparing and scheduling a PM PM Module

C. Labor D. Work Order System

Introduction Overview of computerized WO WO module WO reports

E. Scheduling/Planning Introduction Maintenance Backlog Role of maintenance planner

F. Vendor Introduction Vendor reports

G. Inventory Control Introduction Understanding Inventory terms Inventory module Inventory reports

H. Purchasing Introduction PO module PO reports

I. Budgeting Introduction Reports

J. Additional Features Bar Coding

17 of 51

Security User Customizable reports User customizable screens User defined macros

18 of 51

I. Maintenance Management

Maintenance can be defined as the orderly control of activities required to keep a facility in an as-built condition, with the ability to maintain its original productive capacity. Maintenance management simply involves managing the control of maintenance activities.

A good maintenance management system makes equipment and facilities available. What does this availability mean? It means the production can demand and receive any item, such as light, power, air, gas, heating, cooling, or machine tools, when it is needed. If the required equipment or service is down, or if the machine stops short of a job completion, time and money are wasted. It is obvious that downtime must stay at a minimum, and a good maintenance management system helps accomplish minimal downtime.

The fundamentals of maintenance management are not complicated. The basic steps of maintenance management are request, approve, plan, schedule, perform work, record data, account for costs, develop management information, update equipment history, and provide management control reports. The following is a brief review of the events that occur during each of these steps:

Request: Requests to perform maintenance work may be transmitted in different waysverbal, written, electronic, etc.

Approve: Maintenance supervisors often handle simple jobs (small expenditures); however, large expenditures require approvals from several levels of management.

Plan: Ensuring resources availability (material, labor, tools, equipment etc.). The planning step can take many forms. For example, the maintenance supervisor can give verbal orders to craftspeople, and if a planner is used, he/she will prepare a work order.

Schedule: Scheduling involves three factors v Prioritiespriority codes are based on established criteria or on the

importance of the equipment and the type of work. v Job Assignment v Follow-up

Perform work: This step involves craftspeople working from little or no

instructions or from detailed procedures.

Record data: The data recording may vary from simply listing the actual hours to keeping comprehensive records of material charges, equipment

19 of 51

identification, work assigned and performed, and other pertinent data.

Account for costs: It is important to know where your money is used, and what you purchase with the money.

Develop management information: This may involve providing facts on current work including costs, accumulated data, equipment identification, productivity, budgets, and scheduling.

Update equipment history: History records might include little or no data, or might show updating of all equipment, records, equipment use, downtime, maintenance labor, and material costs.

Management control reports: As management information is developed, control reports covering expenditures, performance, backlog, equipment data, etc, are generated regularly to summarize the results of the maintenance function. These reports are very important for plant managers to make appropriate and intelligent decisions.

20 of 51

II. Computerized Maintenance Management System (CMMS)

A Computerized Maintenance Management System (CMMS) is a computer software programs designed to assist in the planning, management and administrative functions required for effective maintenance. These functions include the generating, planning, and reporting of work orders; the development of a traceable history; and the recording of parts transactions.

CMMS is now used as a means to assure the high quality of both equipment condition and output. CMMS is not just a means of controlling maintenance.

21 of 51

III. CMMS Modules

A basic CMMS includes:

A. Equipment Data Management B. Preventive Maintenance C. Labor D. Work Order System E. Scheduling/Planning F. Vendor G. Inventory Control H. Purchasing I. Budgeting

These or other modules may work independently or may be integrated. For example,

a CMMS that links the equipment data and work order modules can automatically insert equipment information into a work order as soon as you enter the equipment ID. The result is a quicker, more accurate work order containing consistent data.

The need and use of a CMMS is not specific to any one industry or type of application. Any industry requiring equipment and/or asset maintenance is a potential candidate for using a CMMS. A CMMS is becoming more attractive as more maintenance personnel become computer literate and price of hardware and software have dropped significantly. Companies are also investing in a CMMS as they are designed to support the requirements of ISO 9000, other regulatory agencies, and are a key part of the TPM and other modern maintenance philosophies.

The following pages display a number of screens to give you better understanding of

how a CMMS should appear and function. This document is written without reference to any particular CMMS and may be used as an impartial guide to assist you in determining your CMMS requirements.

A. Equipment Management Introduction

This module is used to define all pieces of equipment, spare parts, run time, safety procedures, and set up schedules for preventive maintenance. Equipment data screen:

Most of the fields are self-explanatory. Few of them are discussed here:

22 of 51

Equipment No:

Each piece of equipment is assigned a unique ID (or equipment number).

Priority:

This indicates the criticality of this equipment. This is an important field because it is used to determine which equipment to fix first in case of a problem. For example, each equipment is assigned a number from 1-10 (1 being least critical), so in the case of an emergency, a equipment that has a #10 priority, will be scheduled for repair before others. Run Time:

This stores information regarding run time in units of miles, hours, etc. This is useful in cases where you schedule the preventive maintenance

Figure 1: Equipment data screen

23 of 51

(PM) functions based on the run time rather than calendar time. For example, change oil every 3000 miles.

The run time reading requires periodic updates. The frequency at which you update the reading depends on the level of activity. This could vary from real time to a few times a day to once a week. The PM scheduling is completed based on this reading. Also, the reading can be updated manually, semi-automatically or fully automatically. Full automation is obtained by using handheld devices such as bar code readers, PDAs etc. and RF (radio frequency) technology.

Spare Parts:

This contains information on all spare parts recommended to be stored for this equipment.

Figure 2: Runtime Information

Figure 3: Spare Parts Information

24 of 51

Aux. Equipment:

Motor, Pump, Generator, etc. There should be provision for multiple units.

Procedures: Used to define PM, safety or any other procedures. Each procedure is just typed up once and assigned a code. These codes eliminate the need to repeatedly type the information in other sections, i.e. in situation where many different equipments use the same procedure.

Equipment Reports:

Most CMMS packages provide a number of standard reports. This module generates reports such as:

Cost (equipment no., date installed, original cost, LTD cost) Location (equipment no., description, location, department) Summary (equipment no., description) Master (all fields)

B. Preventive Maintenance (PM) Introduction

Figure 4: Auxiliary Equipment

25 of 51

Do you have a preventive maintenance program? Plant Engineers might say yes, we have a PM program; however, each plant engineer may have a completely different

idea of what qualifies a PM program, the important ingredients of a good PM system, and the results that can be expected from a well-planned PM program.

Preventive maintenance means different things to different people. Management frequently sees it as overhead that may or may not be of value. Production people usually consider it as something that prohibits scheduled product delivery. Line mechanics place it somewhere between corporal punishment and management stupidity. In general, their attitudes are summed up with: the machine is working fine, why work on it?

Management must review the overall facility operating procedures and conditions, analyze company goals, and then decide whether to: a) continually operate all facilities and equipment at maximum capability, shutting down only for emergency repairs, or b) employ a PM program on a firm, regular schedule, perhaps reducing daily plant output, but practically eliminating costly plant shutdowns.

Management must consider PM in the same light as an insurance

policy. Companies regularly buy thousands and even millions of dollars of protection against fire, explosion, wind, and other natural disasters. The major difference between PM and insurance is that insurance only pays off after the damage is done, while PM protects a company against unexpected and unwanted events before they happen.

Aspects of PM Importance

1. Increased mechanization: With increased automation, it is

uneconomical to maintain large emergency maintenance staffs when planning and systematic inspection can eliminate this staff.

2. Failure to deliver on time: Serious consequences and possibly

loss of business may result from interruptions in operations. 3. Correction of defective conditions: Decreases cost of repairs and

maintains performance efficiency of equipment and buildings. 4. Planning of maintenance operations: A well-planned preventive

maintenance program will ensure availability of spare parts and reduce inventory costs.

Objectives

26 of 51

1. Increase reliability of machines: The primary objective of a PM program is to ensure that the machinery is functional and in

good working order to ensure maximum productivity. 2. Reduce downtime to a minimum: Productivity and profit

decrease in direct proportion to the increase in downtime. 3. Decrease maintenance costs: Maintenance costs are reduced with

the installation of a good PM program. Although the savings in maintenance hours and overtime are substantial, it pales in comparison to the savings realized by a reduction in the number of equipment failures. For many plants, having a process line down for only a few hours can cost more in lost revenues than the entire annual maintenance budget.

4. Increase productivity (profit): If the first three objectives are

met, it is a foregone conclusion that there will be an increase in production with a corresponding increase in profits.

Benefits

1. Reduces number of emergency breakdowns 2. Keeps optimum (low) ratio of emergency vs. planned work 3. Provides information for replacement consideration 4. Improves customer service (e.g. more reliable delivery) 5. Reduces inventory cost by reducing inventory size, yet ensuring

availability of spare parts 6. Decreases maintenance costs. 7. Increases overall productivity and profits

How to start a Computerized PM Program

The first step is to compile the data for each piece of equipment. In compiling data, make maximum use of free information or services from equipment vendors and lubrication suppliers.

When custom equipment is purchased, the vendor will provide information on the PM requirements. Strive for maximum involvement of company personnel. An obvious benefit to this concept is to minimize spending on outside services. Whatever can be accomplished internally without disrupting the overall operation helps plant personnel to claim ownership of the system. If they feel their input is needed, the chances for success are enhanced. A PM program should not be viewed as a static entity, but rather as a dynamic entity. As new techniques are learned, they should be added to the system.

27 of 51

Many PM programs fail unless they are reviewed periodically, and changes are made to update procedures or eliminate unnecessary steps.

Use clerical help for information gathering and record keeping. It is necessary to transfer information from manuals, specifications, and blueprints to equipment data and PM work order files. The person who works on the machine everyday knows it the best. Consolidate practical experience data from mechanics, supervisors, and so on. Every maintenance department is always solving problems and developing new techniques to make equipment more efficient. It is important to identify and use those techniques in the formal PM program.

Developing a Priority List for PM

Identify crucial equipment in the following order: (a) failure of the unit would endanger health or safety of personnel, (b) failure would stop significant part of production and (c) the repair cost of breakdown is high. Setting priorities is a problem that should be discussed with the production people since this concerns their operations.

Preparing and scheduling a PM work program

The following steps must occur before the computer can schedule PM. Develop check sheets and inspection guides Develop PM frequencies for each task Assign crafts Assign parts Develop a master schedule

Once all of these steps are taken, the necessary information is entered into the computer. CMMS can then generate work orders for PM work to be accomplished.

28 of 51

PM Module

Frequency: How often PM is scheduled by calendar days (weekly, monthly, etc.) or run time (miles, hours, etc). Priority: Priority assigned to this PM function. This priority should be automatically transferred to the work order generated for this PM function. Parts: Enter parts required to perform this PM job including quantity of each part. This list should be automatically transferred to the work order for this PM function. Labor: Enter craft categories assigned to this PM job (e.g. mechanic, electrician etc.) and their corresponding estimated hours to complete this job. This list should be automatically transferred to the work order for this PM function. When the work order is generated, individual employees within that craft category will be assigned to the job.

Figure 5: Preventive Maintenance

29 of 51

Procedures

Entering PM procedures could be very time consuming. Pre-define PM codes and corresponding procedures (labor, parts, and tool information). Simply enter a PM code and the rest of the information should automatically transfer. This saves a tremendous amount of data entry time.

PM Reports

Allows data inquiry capability to allow information to be selected based on data fields.

Prints reports that can be presented and sorted by data fields. Prints equipment cost histories for any time period. Permits user-defined reports, which can be reproduced by report name. Produces cost reports to show the expense of using outside contractors

and renting equipment. Tracks equipment downtime. Provides a work load graph by craft code to aid in resource leveling.

C. Labor

Introduction

This module keeps track of maintenance employees, and provides the hourly wage information for cost calculations upon closing or updating a work order.

Labor Module

Figure 6: Employee Information

30 of 51

Craft Code

This represents the type of craft category like plumber, mechanic, carpenter, etc. For example, ELEC Electrician MECH Mechanic CARP Carpenter

Hourly Rate

The employees hourly wage rate. Software should accommodate overtime, double time, call in or other applicable rates.

Labor Reports

Labor overtime (Employee ID, name, OT taken, OT refused) Labor vacation (Employee ID, name, hours earned, hours scheduled, hours used) Labor skill (Emloyee ID, name, craft code, skill level) Labor master (all fields)

D. Work Order System (WO)

Introduction

When a work order system (WO) is put into effect the maintenance manager or plant engineer obtains the control necessary to genuinely manage maintenance. Without a well-structured, carefully adhered-to system, the maintenance organization will find that the incoming work controls the organization, rather than the organization properly managing the work. With a well-established work order system and management commitment to its use, a maintenance department will realize rewards of higher productivity, reduced costs, and increased pride in the maintenance function.

A work order system should produce quantifiable feedback on overall maintenance performance, job and plant costs, and equipment history. Maintenance should be able to give its customers accurate cost information on anticipated maintenance needs, so they can plan for maintenance expenses. The positive results achieved from a manual work order system are further enhanced by computerization, provided the computer system meets clearly defined objectives, and adequate planning is done for its installation and use.

31 of 51

Computerization should increase the efficiency of the maintenance operation. The

largest cost savings usually comes from improved craft productivity, increased production uptime, and a reduction in inventory. Planned maintenance increases equipment life and minimizes unexpected breakdowns. Information stored by the computer allows a faster and more accurate estimation of labor and required materials. Better resource management results in a reduction in idle time and tool costs. Improved inventory control assures adequate quantities of essential spare parts and other materials. Quick access to accurate information speeds the maintenance organizations response to customer needs.

Overview of Computerized Work Order System

This module would allow you to generate, print, and complete work orders. It stores all preventive and corrective maintenance work orders while work is either going on, or planned for in the future. It can also serve as a powerful tool for cost estimating. Enter the labor, and material information for a planned project (job). You may also enter outside cost information if you are planning to use outside contractors. The program will show you the estimated cost of the project.

It is divided into two modules: active and history. All the work requests are generated through the active WO module. The information stays in there until the work is finished. Upon completion, the record is transferred into the work history module.

32 of 51

WO Module

Category

Work category for this job. Examples: PM, repair, project, etc.

Failure Code

Failure code suitable for this job. Explain what is wrong with the equipment.

Priority

Priority code for this job. Assign the importance of the job (you may use a number from 1 to 10).

Action Action code for this job explains the action to be taken.

Figure 7: Work order

33 of 51

Outside Cost Any outside cost incurred for this job. This provides the ability to track maintenance costs performed by subcontractors. This cost is added to the material and labor cost when calculating the total cost.

Labor

Allows you to enter the ID of the person who is scheduled to perform this job, and the estimated hours required to complete the job. You can enter multiple crafts. For example, a machine installation job might require an electrician, mechanic, and a carpenter. Once the job is completed, you can record actual labor time spent.

Figure 8: Workorder labor hours

34 of 51

Material

Allows you to enter material required for each work order.

Material Cost

Based on the material used for this work order and the unit cost information entered in the inventory file, the program computes the total cost of materials.

Labor Cost

Based on the actual time spent by each craft and the corresponding hourly rate entered in the labor file, the program computes the total cost of labor. Total Estimated Cost

This is sum of estimated material, labor, and outside costs. Total Cost

This is the sum of actual material, labor, and outside costs. This field is computed after the job is completed.

Work order reports

Active WO reports

WO parts shortage (WO #, part #, qty required, qty on hand, qty on order, qty short)

Active WO (all work orders pending during a specified time period)

Overdue WO (all work orders that are overdue at a specified date)

Figure 9: Workorder Material

35 of 51

WO material requirement (Part #, WO #s, qty required, qty on hand, qty on order)

WO labor requirements (craft categories, wo numbers, required and available hours)

WO history reports:

Downtime summary (WO#, lost operation hours, cost) Account history (Account #, WO #s, category, failure code, cost) Activity (Category, # of WOs, % of WOs by categories) Performance (WO #, date required, date completed, difference

(days), % completed in time) Cost summary (WO #, labor cost, material cost, outside cost, total

cost) Some of these reports can be generated in Graphics format such as

bar chart and pie chart.

E. Scheduling / Planning

Introduction

The greatest potential for improvements in maintenance productivity, quality, costs and responsiveness is to determine: What work is required to satisfy a request? How can the work be performed in the most efficient manner? What resources are required to accomplish the required work? When should the work be scheduled for execution based on work

priority and the availability of resources?

Someone plans all maintenance work in some way. Unfortunately when it is not formally planned at the appropriate level, results are unfavorable. Breakdown maintenance modes consistently produce:

Low labor productivity Excessive work delays Overtime work Continuous crises Unmanageable backlog Inventory high in value but low in turnover and service levels Employee frustration Customer dissatisfaction Production downtime which leads to uncertain order promising and

delivery

36 of 51

In contrast, when maintenance work is predetermined, accurately prioritized, and

aligned with required resources, maintenance work control and customer service are within specification. Over a 2-3 year period, the company will incur improved achievements in planned work, reductions of inventory value, equipment uptime, and craft productivity. Keep in mind that maintenance exists to serve customers. Its service level in the new era of maintenance must include responsiveness. Effective backlog management is one key process activity of planning and scheduling.

Maintenance Backlog

Backlog is the estimated hours required to complete the approved work orders. Jobs are estimated in hours for each craft that is to perform work on the work order. Total Hours for each craft become backlog hours for that particular craft. Definitions of backlog may vary, but usually work orders are not considered backlog until they are available for scheduling. Each operation will have a different desired level of backlog. Most plants use a minimum of 80 hours of work per craftsman.

Maintenance organization can use backlog as an important tool to identify the following:

Workload distribution by area, priority, etc. Balance of personnel to workload Determine if work should be contracted Determine which work should be deferred Need for resource adjustment within the maintenance organization

Priority System and Backlog

Priorities affect backlog. Priorities are essential for objectivity in assigning order of execution. Otherwise, the department head or line supervisor with the loudest or meanest expression, or the maintenance supervisors fishing buddy will consistently get their work done first. Priority of a work order can be determined by multiplying the equipment criticality by the task urgency. This is called Relative importance factor (RIF). Jobs will be scheduled from higher to lower RIF.

Role of Maintenance Planner

Typical planner job duties that fit the natural order of maintenance work management include:

Review of work requests

37 of 51

Estimation of resource requirements for approved major jobs, including site visits and coordination with requestor(s)

Securing resources (labor capacity by craft/skill, stock and non-stock materials, tooling, equipment) required before job execution

Developing job plans Preparing long range and weekly schedules Tracking work execution to completion Establishing historical files and upgrading them as work is

completed Coordinating with engineering in establishing and upgrading

preventive/predictive maintenance programs Managing craft/crew backlogs Reviewing completed work files and incorporating learning for

future work The list could go on with more details, but the above items cover the bulk of what maintenance planners do on a daily basis. When one stops and realizes that 90% of maintenance costs are labor and materials (50% and 40% respectively), the maintenance planners role becomes extremely significant. CMMS allows you to plan and schedule work orders based on available resources such as manpower, parts and equipment. A typical scheduling report is shown below:

Figure 10: Work Order Scheduling

38 of 51

F. Vendor Introduction

This module stores information about your suppliers. These are companies from which you purchase parts, equipment, or services (such as maintenance or outside contractors). It contains information such as name, address, phone, fax, email, payment terms etc. for each vendor. It also allows you to print mailing labels for the vendors.

Vendor Reports

Address Labels (Print address labels for all or selected vendors) Contact reports (Vendor ID, name, contact, address)

G. Inventory Control

Introduction

Figure 11: Vendor Information

39 of 51

Maintenance cannot keep machines running and facilities in good condition if the company does not provide a good spare-parts inventory system. A spare-parts system

should provide pertinent data for developing work order costs and machine history records.

Materials typically represent 50% of the total cost of maintenance. Even with this high percentage level, the importance of properly managing this valuable asset is overlooked in most organizations. Industry can realize significant savings by controlling inventories of maintenance materials. Management is becoming more aware of the importance of a well-maintained storeroom in reducing breakdowns and eliminating plant shutdowns. This section will offer proven methods for better managing materials with full utilization of a CMMS.

Understanding Inventory Terms

Annual Usage

The number of items withdrawn from stores over a period of 1 year. The plant engineer needs to know the exact amount so he can decide when to reorder, allow time to order, receive, and place items in the storeroom. Possible fluctuations in item usage must also be analyzed, because the more stable the use rate, the less likelihood of a stock outage.

Unit Cost

The price per unit of a particular item.

Lead-Time

The time it takes to obtain an item. Lead-time includes the time to process an order, the time to ship it, and the time to stock it. Lead-time is not, as commonly believed, the time from issuance of the purchase order to receipt of goods.

Order Cost

The cost of issuing a purchase order for a certain quantity. It includes the cost of labor and overhead, paper, office machines, issuing the requisition, receiving the material, and delivering it to the storeroom.

Carrying Cost

40 of 51

The cost of storing an item in the storeroom. It includes the charge for floor space, depreciation, taxes, interest, storeroom operating charges, etc.

Space

The cost of storage space is determined in a variety of ways. The cost of constructing the storehouse may be debited according to the square footage or cubic footage used for storage of material, and this cost might be depreciated over a period of time.

Special Conditions

Many items require a specialized atmosphere (i.e. air conditioning, humidity control, heat, or ventilation) in order to prevent their deterioration.

Operating Cost

Operation of the stores function involves cost of maintaining a CMMS.

Materials Handling

The cost of the entire handling system often from the suppliers factory to the point of usage in the plant.

Obsolescence and the like

Some portion of stored material will become obsolete, misplaced, lost, or stolen; the equipment for which spares were purchased may be scrapped all of which adds to the cost of storage. Many items have a finite shelf life and deterioration adds to the other costs.

Taxes and Insurance

The average value of the storehouse is used to compute both taxes and insurance.

Interest

Interest, or cost of money, is probably the largest of these charges. Safety stock level

This is the stock of an item on hand for protection against unavailability when delivery is delayed or usage is higher than normal. This is an insurance stock. To determine the quantity of safety stock, the plant engineer must consider the cost of not having the item. The cost is considered with regards to lost production and lowered craft

41 of 51

productivity vs. the cost of carrying the added inventory. This amount depends on lead-time for that item, its use rate, and its importance to the production effort.

For example, if the lead-time is very short, the material is readily available from several sources, and it is not critical to operations, you might opt for a zero safety stock level. If the lead-time is longer, there are a few alternative sources, and the material is of some degree of criticality, then the level should be set at some minimum figure. If the lead-time is relatively long, the material has a single source, and it is critical to plant operations, a maximum safety stock level should be established.

Expedite Point

The point in the inventory level at which the safety stock is used. At this point, it is important to follow up on an order to be sure it is received before zero inventories are reached. If the expedite point is zero, then the item is not critical to the production effort and no safety stock is really needed.

Reorder Level

The lower limit for the sum of the in-stock and on-order balances, calculated to determine when to order another lot.

Economic Order Quantity

The quantity that will result in the lowest total costs of ordering, making, or procuring the item.

Maximum Level

The sum of the stock on hand at the safety level (expedite point) plus the order quantity.

Stock out Cost

The cost of a stock-out ranges from only a few dollars to thousands of dollars if a production line or the plant goes down. A part may be ordered and received before it is needed again. In this case the only extra cost is the expediting cost to get the part into stock before it is needed.

42 of 51

Inventory Module

Figure 12: Inventory parts Information

43 of 51

Where used:

Enter all equipment numbers where this part is used. This is very useful information in case there is a machine breakdown and the part is not in stock.

Description

A brief description of the alternate part number.

Reorder Level

Quantity that represents the reorder point for this part number. When the quantity on hand falls at or below the reorder level, you should order more parts.

Unit of Measure

The unit of measurement (e.g. each, gallon, feet, rolls etc.)

Quantity Allocated

The quantity reserved for various jobs.

Location

Identifies part location. Allows tracking of inventory stocked at multiple locations.

Figure 13: Where Used

44 of 51

Vendor

Stores useful information for each vendor associated with this part. For example, lead-time, manufacturer part number, unit price, reorder quantity, etc.

Inventory Reports

Below ROP (Part #, description, qty on hand, ROP, qty on order) Location (Part #, description, location, shelf/bin) Inventory on hand (Part #, description, qty, unit cost, extended cost) Part cost (Part #, description, vendor, cost) Obsolescence (Part #, description, date last used, date last received) Summary (Part #, description,) Parts usage history (Part #, description, number of transactions, qty

used, qty on hand, extended cost)

H. Purchasing Introduction

There are two steps to purchasing with CMMS

Requisition Actual issuing of the purchase orders

Figure 14: Parts Location

45 of 51

First, a requisition is generated for all parts below ROP (When quantity on hand + quantity on order is less than the re-order point, the program sends a flag requesting

that the item be re-ordered). This becomes a request for purchasing items. Someone must then approve this request. Once approved, the purchase order is issued. With one key command, a CMMS should be able to issue all purchase orders that are due and approved.

Purchasing Module

Most of the fields in PO file are self-explanatory.

PO reports

Open PO (PO #, PO date, vendor, required date, promised date, cost) Parts received (PO #, PO date, part #, qty ordered, qty received)

Figure 15: Purchase order Information

46 of 51

I. Budgeting

This module allows you to setup various budget accounts and allocate funds to each account (e.g. repairs, preventive maintenance, projects). Every time a transaction takes place (work order, parts issue, etc.), the cost is charged to the appropriate account number. CMMS keeps track of money spent toward each account. It serves at least 2 purposes:

1. To control the expenditure 2. To help setup budget for the following year

Budget Reports Budget cost Labor variance Material variance Budget variance

J. Additional Features

Bar Coding

Barcode technology improves the speed and accuracy of data input in the purchasing, inventory and work order application areas. Statistics show that data entry errors occur less frequently when a barcode system is used. Information to be scanned can be printed in barcode format on various forms, i.e. work orders, purchase orders and others.

A portable data collection device is used to collect equipment meter readings, physical inventory cycle counts, stock issue and return information and parts receipt information. The collected data can be uploaded into CMMS application and processed at a later time.

Figure 16: Budget Accounts

47 of 51

Equipment Meter Update

Equipment meter update allows equipment meter reading to be collected using a hand-held remote data entry device. Bar-coded labels are placed on each piece of equipment and the remote device is used to scan the label and enter readings for each meter. When the data is uploaded to CMMS, all equipment meters will be updated with the new readings. PM work orders will be generated for any piece of equipment requiring service due to a meter that has accumulated a specified number of hours or miles.

Stock Issue/Return

Parts can be issued and/or returned using a handheld device. This is particularly useful when the computer system is not accessible or the network is down. If workers do not have access to a computer terminal, the handheld device can be used to issue or return parts. The parts, or the bins in which the parts are stored, should have bar-coded labels. The barcode label is scanned by the handheld device and the user enters the number of parts to be issued or returned and the purpose (work order, etc.). At a later time, the data can be uploaded to CMMS and processed.

Receiving

Receiving allows stocked materials to be received using the handheld device. This is particularly useful for receiving docks or stockrooms that do not have access to a computer terminal. Purchase order and stock numbers are required by the handheld device. Purchase orders can be printed with bar-coded purchase order and stock numbers. When desired, the collected information can be uploaded to CMMS and processed. Work orders waiting for parts will be removed from hold status on a priority basis when stock is received into inventory.

Physical Inventory Cycle Count

Inventory cycle count allows workers to use a handheld device to count inventory stock. The stock or the bins containing the stock should have bar-coded labels to simplify data collection. Cycle count sheets can be printed with bar-coded stock numbers to simplify data entry using the handheld device.

Once the counting process is complete, the data is uploaded to CMMS and all appropriate inventory cycles are updated. Inventory is adjusted to match the quantities counted when the cycle is reconciled. All of the above functions can operate in real time mode using Radio Frequency (RF) technology.

48 of 51

Security

Security is a very important function of a CMMS package. A multilevel password protected security system can define exactly what each user is permitted to access, edit or run. A good security system allows the following:

Make different screens for different users (e.g. a person just making a work request would view a very simple work order screen, as opposed to the maintenance supervisor who will view the whole work order screen).

Make fields visible or hidden (you dont want everyone to view

employees pay rates).

Make fields editable or non-editable (this provides database security).

Make fields mandatory.

Validate data entry against predefined criteria.

User Customizable Reports

This option allows you to customize reports without any programming knowledge. You are not dependent on the vendor for report modifications, in turn saving you time and money. With this option you can:

Modify reports and forms Create new reports just the way you want them Interface with other programs such as accounting and purchasing,

even if they are running on a different operating system Create ASCII file formats for universal data import/export

User Customizable Screens

This option allows you to customize screens without any programming knowledge. With this option you can:

Modify a screen Change name (legend) of a field Change the size of a field Change the position of a field Add or delete fields Modify context sensitive help (this is very important since you are

allowed to modify fields. If you modify a field and cant change corresponding Help, it could create major problems)

49 of 51

User defined macro capability

A Macro captures keystrokes. Procedures like generating work orders; purchase orders or printing reports can be saved as a Macro. Macros can automate procedures so a novice could perform sophisticated tasks. Macros can also be set to run at a predetermined time.

50 of 51

Appendix B

Bibliography Microcomputer-Aided Maintenance Management, by Kishan Bagadia, Marcel Dekker, Inc. Talking Shop with Software Suppliers, by Kishan Bagadia, PIMA, Nov. 1988 Selecting CIMM, by Kishan Bagadia, Manufacturing System, Dec. 1985 Deciding what you want your systems to do, by Kishan Bagadia, PIMA, September, 1988 Justifying the cost to your boss, by Kishan Bagadia How Reliability Affects Earnings per share, by Keith Burress Reaping the benefits of CMMS, by Derold Davis and Joe Mikes, Maintenance World, August 2003 Eat an elephant-Implement a CMMS, by Ronald J. Hemming and Daniel L. Davis, Maintenance World, July 2003 Managing Spare Parts, by Sheila Kennedy, Maintenance World, March 2004 Ownership, Accountability Give Employees Power, by Norm Koslow, Maintenance Technology Internships: An under-utilized maintenance resource, by Joel A. Leonard, Maintenance World. Justifying Maintenance Projects, by Edward R. Mason, Maintenance Technology, August 1989 Backlog Management, by Daryl Mather, Maintenance World Developing CMMS implementation templates, by Daryl Mather, Maintenance World, September, 2003 Did you control the chaos?, by Arne Oas, Maintenance World, September 2003 CMMS User Handbook, published by Thomas Publishing Company Maintenance-Business Center Approach, by Chris Thomas A six-step work process to increase profitability with reliability improvements, by Carol Vesier Failure Codes, by Brian Weir, Maintenance World Profit or Cost Center Mentality: Is the difference important by John Mitchell, Maintenance technology

51 of 51

PEAK Industrial Solutions, LLC

Consulting Services

v How to Successfully Implement a CMMS/EAM v MRO (Spare Parts) Data Cleansing v How to Achieve Maintenance Excellence v CMMS/EAM Utilization Assessment v

Maintenance Seminars

Visit WWW.PEAKIS.COM

PEAK Industrial Solutions, LLC PO Box 774 l Brookfield l Wisconsin 53008

Phone: 262 783 6260 Fax: 262 781 9972

v We conduct In-house seminars o Maintenance Planning and Scheduling o How to successfully implement a Computerized Maintenance

Management System o Maintenance Inventory Control