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What Does World Class Asset Management Look Like?

The term World Class is used frequently to describe a ‘high performing’ site, but what do we actually mean by this?” asks Richard Jones, managing director of MCP Consulting and Training*.

World Class is often – Described as being innovative, lean, efficient, cost-

effective and flexible. Seen as a collection of concepts, which set standards for

production and manufacturing for other organisations to follow. Japan is credited with pioneering the concept of world-class manufacturing, where it was introduced in the automobile, electronic and steel industry after the war.

A process driven approach where various techniques and philosophies are used in one combination or other.

To achieve world class status amongst a company’s peers demands the delivery of world class asset management with high plant reliability, both crucial components to improving operational performance, but that is not all. Richard again: “Too often we think of improved processes and technical techniques in terms of systems and equipment reliability. The overriding message for me is that improvements can only be fully achieved with the engagement in the process of all people together with a far reaching cultural change. What do we recognise as World Class Asset Management from global participants in the AMIS benchmarking system?”

A World Class team is proactive, not reactive A clear and documented asset care strategy, built on good foundations such as reliability analyses and effective planning, is needed to drive a step change improvement in plant performance and reliability.

A World Class asset management strategy should incorporate the following:

Organisation structure and roles Establish maintenance plans using reliability techni ques Workload planning and control Cost-effectiveness analyses Productivity and maintenance effectiveness Materials management Continuous improvement and failure analysis Early equipment management Training and safety Computerised maintenance management system

(CMMS) Motivation, culture and people management – however

many improvement processes are implemented you will still fall short of world class if you do not look at motivation, culture and people management

A World Class team analyses performance and sets targetsOperator asset care and continuous improvement are two specific work streams that build on the foundation to ensure processes are owned by local teams and the desired culture change takes place. Key performance indicators (KPIs) are selected for each process to enable the local teams to analyse performance and deliver improvements. The KPIs are developed and used as leading or lagging indicators depending on process delivery. Correct systems configuration is vital to produce these KPIs which can then be trended and visualised on team boards for use by local teams with ongoing sponsorship from senior management and team leaders.

Each role should be trained to be aware of their accountability and should have a minimum of one KPI to be able to claim they are involved with asset management. Targets should also be agreed with each individual in their regular performance assessments. Detailed training should then be provided with a method to demonstrate competences against each defined process

Once the processes are matured the overall business goals are delivered with exceptional targets agreed and delivered eg, profit, OEE, reliability, downtime, etc. A typical journey is depicted in Figure 1A large number of global companies have now participated in the AMIS process as part of their journey to World Class

Figure 1 – AMIS building stages

manufacturing across all their multi-sites around the world. The progress for one typical global multisite client in the food and drinks sector is shown in Figure 2.

The asset care excellence (ACE) journey also sets targets for exceptional plant targets by segment type within any sector eg, process, packaging, facilities, R&D, services, etc.

An example of KPIs and targets used to demonstrate delivery of performance for a packaging site includes: PM selection – balanced tasks between craft

PMs, operator checks, predictive tasks etc – eg, operator checks >20% PM completion – target 100% Work arising from PMs – notifications raised

with > 60% from operators

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Backlog < 1month Adherence to plan >95% Planning effectiveness to measure planned work and

utilisation >80% CI activities >20% (replace reactive work with agreed CI,

eg REM, RCA, etc) Annual upkeep cost = £/capital asset replacements value

(CARV) ~ 3% – sites seen as high as 10% of CARV spent on maintenance

annually with downtime at > 12% – £/M² targets used in facilities sector Downtime <1% engineering downtime (CMMS

history should have cause identified and matching manufacturing OEE analyses

Data quality >95% (ensures cost, spares, root cause properly booked and failure field trigger to provide MTBF

Figure 3 – Planning effectiveness

A World Class team inputs, collects and uses data from the CMMSData should be available from the manufacturing OEE system as well as the maintenance CMMS. The planner’s role should also include the data analyst function to provide quality information to each team/role. The local team board should then include the relevant performance trends for team ownership and regular team reviews.

A World Class team uses root cause analysis to eliminate reactive workFigure 3 indicates the AMIS journey with planning effectiveness showing how the craft weekly work profile has moved over 3 years from 10% proactive to 85% proactive with the elimination of failures and reactive work (through root cause analyses and operator asset care). Many packaging sites misuse 30% -50% of craft time on low tech tasks eg, handholding poor operations.

Figure 2 – Progressive overall scores for each site

and MTTR) Spares booking accuracy

>98% OEE > 75% Availability >90% (all

stoppages) Reliability (MTBF) and

maintainability (MTTR) compared by generic equipment type and shared with OEMs

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richard@mcpeurope.com

t: +44 (0)121 506 9036 m: +44 (0)7792 569 444

*An Institute of Asset Management’s endorsed trainer

Wish to Comment?Find this article at maintenanceonline.co.uk and at the end of the editorial there is the option to add a comment – eg Was it relevant?, Can you add to it?

For the last 25 years the asset management information system (AMIS) benchmarking process has been used globally with a large numbers of participating sites from each industrial sector ranging from nuclear, oil & gas through manufacturing to utilities and facilities, and as well benchmarking it is also an improvement journey to deliver World Class performance. AMIS was initially sponsored by the UK Government’s Department of Trade & Industry to reduce waste and improve the performance from the huge investment in industrial maintenance: it is now used globally in all sectors.

A World Class team considers the total life span of their assetsThe through-life approach is also covered with two separate work streams covering:1. Early equipment management (EEM) – defined vertical

ramp-up to agreed World Class OEE within target date, etc

a. EEM assessments show clients average at 40% against World Class at 75% (i.e. projects take sites back into reactive regime)

b. Projects usually delivered to time and cost but not to agreed plant performance eg, vertical ramp-up to World Class OEE

2. Asset replacement decisions using condition grading, system KPIs eg, MTBF, MTTR, £/CARV to decide whether to repair, refurbish or replace (i.e. annual 3R decisions to feed into 5 year budgets)

a. Annual condition grading surveys would measure against as-good-as-new (AGAN) standards

A World Class team establishes a holistic approach to improvementAll the above points show that a more holistic approach is required to deliver exceptional plant performance. Too many companies select one option e.g. RCM, planning or TPM and do not cover all processes. Similarly, high level sponsorship is often missing as the business driver has only been to produce a high level strategy document resulting in few processes owned at local level. Some companies chose Lean without addressing the reliability issues and often the craft team have to respond to leadership demands and resort to a reactive regime with increasing waste. Operator asset care is a fundamental pivot for exceptional plant performance linked with SOPs (standard operating procedures) and competences starting with the establishment of equipment competent operator skills.

A World Class team is engagedThe AMIS process looks at all the required aspects and the use of process maps provide a tool for local teams to be engaged. The benchmarking process measures the rate of change in terms of engagement and provides appropriate

Figure 4 – Asset care strategy structure

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training to empower each role with accountabilities defined. Targets for improvement can be established and triggers provided to get team leaders and sponsors involved – see Figure 4.

Competences are a key part of the overall programme and progress on training should be regularly reported alongside PMs Completion as per HSE guidelines in the UK. Awareness training of the intended ACE strategy is often missed and therefore the intended strategy is never fully applied by the relevant people.

Process conformance should then be regularly analysed and capabilities ensured. Visuality is a key

provision with each process owner defined and targets agreed per individual. Regular team reviews using the visual storyboards will provide engagement and ensure conformance as well as further enhancement eg, REM (review existing maintenance), SOPs amended, training, etc. One good example would be the craft technician analysing reactive work each month that did not require tools or spares and discuss with operating colleague whether the tasks should be included within the operator SOPs and skills profiles, etc.

Finally, benefits are regularly tracked to recognise the contributions and share success. Senior management need to regularly review performance and set challenging targets to sustain the performance. The loss analyses process should be visible and used to trigger the next improvements.Perhaps it would be interesting to measure your plant’s performance against these exceptional targets in your own sector?

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