Dr Willie de Beer, Chief Operations Officer,
EDI Holdings, Gauteng, South Africa
18 - 22 May 2009CTICC, Cape Town,
SOUTH AFRICA
Smart power choicesfor Africa
Presentation Overview
• Maintenance in Context
• Approach to Maintenance
• Invest or Not to Invest
• Critical Success Drivers
• Electricity Distribution Industry (EDI) Reality Check
• Conclusion
Maintenance in Context
Maintenance is not:
•Simply the activities related to the repair of equipment
when they failed or
•A reactive action by default
Maintenance is:
•An integral part of the execution of an integrated asset
management philosophy
•The execution of well planned activities to keep plant
and equipment in a sound and reliable state of
performance
Approach to Maintenance
• It is essential for any asset centric organisation to
have a well defined asset management strategy,
underpinned by a clearly defined maintenance
philosophy and execution strategy
• Various maintenance programs are available, amongst
others:
– Reactive Maintenance
– Preventative Maintenance
– Predictive Maintenance
– Reliability Centered Maintenance
Invest or Not to Invest
• Maintenance is measurable
• Effective Maintenance will improve plant performance
and reliability
• Effective maintenance program will contribute to
resource optimisation
• Good plant performance will contribute to customer
satisfaction
• Effective maintenance will enhance the business
sustainability
Critical Success Drivers …1
Best in class organisations look well beyond just
compliance from a maintenance perspective:
• Maintenance costs as % of gross margin: 4% to 5%
• Plant/equipment availability: SAIDI = 53 min
• ( > 99%)
• Customer satisfaction: > 80%
• Backlog compliance > 95%
• Work allocation analysis 80/20 rule or better
Preventative Maintenance
• Overall Equipment Effectiveness >90%
• Spare parts availability > 90%
Critical Success Drivers …2
• Expected function identification of equipment
• System component classification
• Failure mode and effect analysis
• Defined operating regime and protocol
• Effective system design
• Correct equipment procurement
• Correct installation
• Condition based monitoring
• Root cause failure analysis
• Regular process and practice review
• Competent maintenance practitioners
EDI Reality Check …1
• Asset management strategies/plans and appropriate
systems do not exist across the industry, which
supports the November 2003 NERSA survey that only
2% of their surveyed respondents were able to
indicate what corrective actions they were taking
while 45% failed to even identify areas requiring
corrective action
• Municipalities and Eskom are not providing for
sufficient investment in existing and planned
distribution networks which resulted in an estimated
backlog of R27.4 billion
EDI Reality Check …2• Demand growth exceeds the loading capacity of the
networks which will amongst others pose a significant
risk to the effective introduction of Energy Efficiency
Strategies.
• While the industry suffers from a lack of reliable data
and appropriate measurement, all indications are that
network reliability is decreasing which is evident in the
increase in the number of outages due to poor
performing networks and incidents related to electric
cable and associated equipment theft
• NERSA survey of 110 electricity distribution entities
indicated that only 33% of these entities had sufficient
competent staff
Entity Total Backlog Maintenance RefurbishmentShort term
StrengtheningRED ONE R 3,851,578,245 R 385,157,825 R 1,155,473,474 R 2,310,946,947RED TWO R 5,132,373,764 R 513,237,376 R 1,539,712,129 R 3,079,424,259RED THREE R 2,186,296,025 R 218,629,602 R 655,888,807 R 1,311,777,615RED FOUR R 6,413,148,398 R 641,314,840 R 1,923,944,519 R 3,847,889,039RED FIVE R 4,158,350,649 R 415,835,065 R 1,247,505,195 R 2,495,010,389RED SIX R 5,627,399,914 R 562,739,991 R 1,688,219,974 R 3,376,439,948
Total R 27,369,146,995 R 2,736,914,699 R 8,210,744,098 R 16,421,488,197
EDI Reality Check …2Summary of EDI Backlog
Conclusion …1
• Maintenance is not a “coincidence”
• To ensure business sustainability and customer
satisfaction, all asset centric organizations must have a
well integrated asset management strategy
• You might get away with insufficient or ineffective
maintenance, refurbishment and strengthening in the
short term; however it is guaranteed, it will catch up
with you and you will pay the price
Conclusion …2
• Not to effectively invest in maintenance,
refurbishment and strengthening is a well defined
recipe for business disaster
• If you do not understand the fundamentals of asset
management, get out of an asset centric business or
find competent people who can carry you, before you
are embarrassed
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