Workshop A Quality Costs Support Maintenance

Preventive, Predictive and Proactive MaintenanceSteven Cooke, MChE, FAICSenior Quality Management EngineerADGAS

24 November 25 November 2013Abu Dhabi, United Arab Emirates Plant Maintenance and HSE Middle East 6th Annual MeetingMoving From Preventive To Predictive Maintenance To Enhance Efficiency

Maintenance Activities are the only controllable factor in risk reduction for the facility and thus the personnel.

The Cost of Maintenance activities can be compared to an amortized cost of risk to demonstrate the cost/ benefit of predictive maintenance activities with respect to risk reduction.

Preventive To Predictive MaintenanceLate 1960sLate 1970s2000sMaintenance StrategyBreakdownPreventiveReliability-BasedMaintenance EnvironmentScheduled OverhaulStandby capacityMaximum Capacity DemandSkill RequiredSkilled CraftsmenTrained Technicians, Time-based activityPredictive TechnologiesFailure ManagementOperate to Failure,Frequent RebuildsScheduled OverhaulsRegardless of Actual Need, Large CrewsRoot Cause Analysis of failureIdentification Using Condition Monitoring ToolsReliabilityHighly Over-designed. Wearout Types FailuresDual Standby UnitsHigh Spare InventoryCondition Monitoring facilitating a Predictive/proactive ApproachDesign ConceptOver-DesignedHighly RobustSlow developmentUnsophisticated ControlBuilt In ObsolescenceStandby capabilityDesign for maximum availability while operating at capacity. Higher Precision, Less robust components, operating in much more demanding Applications. Highly Sophisticated Control SystemsEnvironment ConcernsNoneEmergingAn increasingly Important Aspect of Concerns. Zero Emission targets, Hazards, Extended Oil LifeMaintenance Management System EvolutionPreventive To Predictive Maintenance3Reliability Strategy DevelopmentPreventive To Predictive Maintenance

Preventive To Predictive Maintenance Whats wrong with Preventive Maintenance?It is the role of Maintenance to maximize equipment availability and reliability. The business metrics of maintenance are man-hours and costs.

The basic functions are corrective and preventive actions. Corrective actions may be planned or reactive. Preventive actions are always planned.Preventive To Predictive MaintenancePreventive maintenance improves the safety factor for critical equipment, but may be more expensive than reactive maintenance from the maintenance departments perspective alone.Reactive maintenance is known to be more expensive for a plant overall, and much more dangerous in hazardous industries. Unplanned Downtime is the result of system failures.

Whats wrong with Preventive Maintenance?Preventive To Predictive Maintenance

Whats wrong with Preventive Maintenance?Preventive To Predictive MaintenancePredictive maintenance offers an optimization mechanism to allocate funds and activities according to risk.

This is a more complex process requiring better equipment condition information and computational abilities. Whats wrong with Preventive Maintenance?Preventive To Predictive Maintenance Whats wrong with Preventive Maintenance?

Review the overall Risk Matrix - it is the CONSEQUENCES that are most important!

Consequence x Probability = Risk LevelProbability is a direct result of the Maintenance activities.

Preventive To Predictive Maintenance

Will this function without THESE parts?A critical piece of equipment requires reliability and availability of all critical components in order to continue to be reliable.Preventive To Predictive Maintenance

Preventive To Predictive Maintenance

Preventive To Predictive MaintenanceIntervene at the best time, not just at any time!

Preventive To Predictive MaintenanceMaintenance actions can be seen as the difference between the protected and unprotected incident probabilities times the event consequence cost.

Preventive To Predictive MaintenanceThe impact of predictive and preventive maintenance can also be shown against the realized cost of reactive repair that includes the opportunity losses of production interruption as well as the direct repair costs.The calculation of Safety Integrity Levels (SIL) in calculating the reduction in risk due to actions can be used to show the cost savings due to maintenance.

Bow-Tie DiagramPRIMARY Maintenance FocusPreventive To Predictive Maintenance

Preventive To Predictive Maintenance

Planned UnplannedPreventive To Predictive Maintenance Benefits of Predictive Risk-Based MaintenanceThere are useful parallels to training programs for predictive maintenance: both require current expenditures to avoid future errors or faults.

A survey in 2007 by the Aberdeen Group highlighted some key management factors for a successful program, including the key cost factors, which in our context may be considered the Cost of Risk Reduction through maintenance.Preventive To Predictive MaintenanceCommitment and involvement are required from plant, production and maintenance management. there are no overnight results. they must contribute to the success of the program

Plant Manager: Money spent on the training program (possible overtime, labor cost, development & instructor costs, material cost).

Production Manager: Longer down time to repair machines properly (MTTR).

Maintenance Manager: Trying to juggle breakdowns, scheduling work and training with personnel. Preventive To Predictive Maintenance Benefits of Predictive Risk-Based MaintenanceLong-term rewards of the program:

Plant Manager: Decreased downtime, reduced operating and maintenance costs, increased employee morale, better safety performance.

Production Manager: Increased production uptime and equipment efficiency.

Maintenance Manager: Reduced breakdowns, more scheduled and less reactive maintenance, less panic, less stress, better employee morale, better safety performance.Preventive To Predictive Maintenance Benefits of Predictive Risk-Based Maintenance

Unplanned Breakdown Maintenance (BK)Planned Corrective Maintenance (CM) Preventive Maintenance (PM):Calendar Time BasedRunning Hours Based

Predictive Maintenance (PdM) Condition MonitoringCondition Based Maintenance

Preventive To Predictive MaintenanceFormulate the Correct Mix Benefits of Predictive Risk-Based MaintenanceTo Build Optimal Sustainable ProductionMMS10. Set KPI11. Audit6. Identify Tasks & Recourses5. Review and Update Equipments Job Plans4. Select Maintenance Type Based on equipment Criticality Assessment3. Carry-out FMEA2. Review Equipment History8. Failures after implementing RCM7. Amend in CMMS1. Equipment Criticality9. - What are the failure modes?RCMFMEA CYCLEPreventive To Predictive MaintenanceMoving to Proactive MaintenanceReliability is the responsibility of all employees, not just maintenance.

Unreliability or failure, and thus downtime and potential Process Safety Incidents, are the consequence of poor processes, not events.

Therefore, considerable effort must be devoted to eliminating defects that cause failure - this is basically Reliability-Centered Maintenance. Preventive To Predictive MaintenanceMeasurements, or KPIs (Key performance indicators), are used to convey strategic direction. They allow organizations to select and evaluate tactics needed for direction and monitoring of operational performance.The Avantis Solution to Asset Performance and Reliability - Reliability Centered Maintenance Enablements of Avantis, 2006 Invensys Systems, Inc

Preventive To Predictive Maintenance

Moving to Proactive Maintenance25Benchmarks provide a specific comparison of relevant KPIs against known standards of performance or complementary processes or companies considered as good examples of achievement.

15Preventive To Predictive MaintenanceMoving to Proactive MaintenanceA survey done by the Aberdeen Group in 2007 provided a great deal of support to the importance of integrated, proactive maintenance activities in Best-in-Class manufacturers.Best-in-Class manufacturers see significant reduction in year-over-year maintenance costs (more than twice as likely as Industry Average and Laggards to see >10% reduction) while enjoying improved OEE, OTD, and throughput.5Preventive To Predictive MaintenanceMoving to Proactive MaintenancePreventive To Predictive Maintenance

Moving to Proactive MaintenancePreventive To Predictive MaintenanceCollaborative Asset Maintenance Strategies, Source: Aberdeen Group, December 2006Maintenance Strategies Employed% of RespondentsPreventive Maintenance88%Predictive Maintenance58%Reliability Centered Maintenance28%Table 1: Preventive Maintenance (PM) Most Commonly Used Strategy

Preventive Maintenance (PM) Most Commonly Used Strategy

Best-in-Class Use Proactive Maintenance Strategies More FrequentlyMoving to Proactive MaintenancePreventive To Predictive MaintenanceCollaborative Asset Maintenance Strategies, Source: Aberdeen Group, December 2006Maintenance ProcessAverage PerformanceStandardized, enterprise-wide proactivemaintenance processes such as predictivemaintenance, reliability centeredmaintenance, total productive maintenance,and root cause analysisAsset uptime and availability = 88.8%Asset productivity (as a % of capacity) = 84.2%Service & maintenance cost (as a % of revenue) = 17.2%None or ad hoc and limited use of proactivemaintenance processes. Routinepreventive maintenance the most widelyaccepted approach to service assets andequipmentAsset uptime and availability = 87.2%Asset productivity (as a % of capacity) = 81.9%Service & maintenance cost (as a % of revenue) = 20.8%Reactive break/fix work is the primaryapproach with little to no preventive orother proactive maintenanceAsset uptime and availability = 81.8%Asset productivity (as a % of capacity) = 79.2%Service & maintenance cost (as a % of revenue) = 23.5%Table 7: Proactive Maintenance Processes Boost Performance MetricsProactive Maintenance Processes Boost Performance MetricsMoving to Proactive MaintenancePreventive To Predictive MaintenanceCollaborative Asset Maintenance Strategies, Source: Aberdeen Group, December 2006Table 7: Proactive Maintenance Processes Boost Performance MetricsBest-in-Class Reap Significant BenefitsKey Performance Indicator (Change over past two years)Performance (% of respondents in class reporting improvement)LaggardAverageBest-in-classIncreases in Asset Reliability18%62%91%Greater Asset Uptime and Availability27%67%91%Reduction in Cost of Servicing Assets3%21%39%Fewer Unexpected Downtimes or Outages12%48%77%Growth in Return on Invested Capital7%21%66%Greater Asset Productivity39%54%79%Higher Yields of Quality Goods Produced19%36%62%Reduction in Cost of Spare Parts (MRO Inventory)3%13%14%Longer Usable Asset Life11%29%58%Fewer Safety Related Incidents29%54%77%Return on Assets (ROA)3%22%50%Moving to Proactive MaintenanceStrategic actions implemented by the Best-in-Class tend to be focused on optimizing asset availability and utilization. Implementing advanced APM and analytical capabilities was the top strategic action of the Best-in-Class (46%), followed by implementation of continuous improvement initiatives and continuous improvement teams. (Note: APM includes Reliability Centered Maintenance (RCM), Condition Based Monitoring (CBM), APM, and optimization capabilities.)Preventive To Predictive MaintenanceCollaborative Asset Maintenance Strategies, Source: Aberdeen Group, December 2006Moving to Proactive MaintenanceThis is followed by improving effectiveness of maintenance operations, which is intrinsically tied to continuous improvement programs.

Specifically, the Best-in-Class are 77% more likely than the Industry Average and 84% more likely than Laggards to invest in APM capabilities such as CBM, RCM, performance monitoring, and Statistical Process Control (SPC) tools.Preventive To Predictive MaintenanceCollaborative Asset Maintenance Strategies, Source: Aberdeen Group, December 2006Moving to Proactive Maintenance

Preventive To Predictive MaintenanceMoving to Proactive MaintenancePreventive maintenance covers the range of periodic tasks (from inspections and adjustments to component replacement) that are performed on assets on an elapsed time, or preferably, a usage basis in order to keep assets functioning.

Preventive To Predictive MaintenanceMoving to Proactive MaintenancePredictive maintenance goes a step further by using non-destructive testing methods and condition monitoring to uncover hidden or pending failures in their primary mode.

Preventive To Predictive MaintenanceMoving to Proactive MaintenanceWith the fundamental elements in place, the organization is empowered to truly influence asset performance and reliability. The proactive level includes:

Condition monitoring involves tapping directly into control data sources for statistics to manage preventive maintenance and enable instant reaction to failures when they occur, or preferably, before they occur.

Preventive To Predictive MaintenanceMoving to Proactive MaintenanceReliability-centered MaintenanceRCM is defined as A process used to determine what must be done to ensure that any physical asset continues to do what its users want it to do in its present operating context. 2Failure modes and effects analysis (FMEA) is a structured analysis based on experience and what if.Decision algorithm determines the maintenance action plan and its execution.3. Age exploration - The continuous analysis, revision and upgrade process2 Reliability-centered Maintenance by F. Stanley Nolan and Howard F. Heap, 1978

Preventive To Predictive MaintenanceMoving to Proactive Maintenance39Demonstrate safety achievements through Maintenance Performance.Fewer breakdown or trip events = Reduced risk due to hazardous conditions.

Fewer reactive jobs = Less personal exposure to dangerous activities.

Preventive To Predictive Maintenance3940Fewer/ smaller leaks = Less personal exposure risk and greatly reduced fire risk.

Planned work = More alert, less stressed workforce.

Make Safety a key driver for performance.Preventive To Predictive Maintenance4041We will not have a safe plant unless it is a well-maintained plantConclusion

Preventive To Predictive Maintenance41The importance of Maintenance is not about keeping a plant running well.

It is that keeping it running well means that it is running safely.

It is improving the employees workplace safety through preventive and predictive maintenance of safety-critical equipment.Preventive To Predictive MaintenanceDo the Right Thing at the Right Time in the Right Way with the Right People.Preventive To Predictive MaintenanceADGAS Asset Integrity and Reliability Management System can be summed up with a simple sequence:Steven J. Cooke, MChE, CQE, CQASenior Quality Management Engineer

Thank you!

Questions?

Email: scooke@adgas.com

WINNER of theGOLD AWARD - 2012

Plan on 25-min. presentation and 5-10 minutes questions.44