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Strategies for Excellence inMaintenance Management
INTRODUCTION
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In most companies, bsiness sffers becase !e "on#t
pa$ enog% attention to maintenance&
'%at "o !e gain b$ maintaining or p%$sical assets !it%
t%e same care as or %man an" financial resorces(
)irst an" foremost, !e gain Uptime* t%e capacit$ to pro"ce an"
pro+i"e goo"s an" ser+ices&
lso, !e expan" or process capabilit$, or t%e abilit$ to pro"ce
goo"s an" ser+ices to t%e cstomer#s satisfaction, consistentl$&
)inall$, more t%an e+er, !e can pre"ictabl$ pro+i"e a safe an"
controlle" !or- or ser+ice en+ironment, !it% a minimm of ris-&
Man$ senior execti+es an" managers are srprise" at t%e
total cost of maintenance& )ig&.
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)igre .&)igre .& Ratio of Direct maintenance Cost to TotalRatio of Direct maintenance Cost to Total/ale0""e" Costs/ale0""e" Costs
SectorSector
MiningMining
1rimar$ metal1rimar$ metal
ManfactringManfactring
1rocessing1rocessing
)abrication 2 assembl$)abrication 2 assembl$
1ercentage1ercentage
34 to 5434 to 54
.5 to 35.5 to 35
5 to .55 to .56 to .56 to .5
6 to 56 to 5
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Se+eral -e$ concerns impact t%e cost of assetSe+eral -e$ concerns impact t%e cost of asset
maintenance& Some of t%em are "ifficlt, in"ee", tomaintenance& Some of t%em are "ifficlt, in"ee", to
7antit$87antit$8 9o! "o !e attract an" -eep capable people to maintain9o! "o !e attract an" -eep capable people to maintain
sop%isticate" e7ipment s$stems(sop%isticate" e7ipment s$stems(
'%at is t%e optimm le+el of in+entor$ of maintenance'%at is t%e optimm le+el of in+entor$ of maintenance
parts, materials, an" consmables(parts, materials, an" consmables(
Do !e nee" specialist maintenance engineeringDo !e nee" specialist maintenance engineeringspport(spport(
'%at organi:ation arrangements are appropriate('%at organi:ation arrangements are appropriate(
9o! mc% an" !%at s%ol" !e contract ot(9o! mc% an" !%at s%ol" !e contract ot(
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IGN ;siness is n"er enormos pressre to be financiall$;siness is n"er enormos pressre to be financiall$
pro"cti+e&pro"cti+e&
E+er$!%ere, t%e "ictm is t%e same * maximi:e otpt ofE+er$!%ere, t%e "ictm is t%e same * maximi:e otpt of
goo"s an" ser+ices an" minimi:e inpt of resorces *goo"s an" ser+ices an" minimi:e inpt of resorces *
financial, %man, an" p%$sical& 1ro+i"e t%e best +ale tofinancial, %man, an" p%$sical& 1ro+i"e t%e best +ale to
bot% t%e cstomer an" t%e s%are%ol"er, bt at t%e samebot% t%e cstomer an" t%e s%are%ol"er, bt at t%e sametime be en+ironmentall$ conscios&time be en+ironmentall$ conscios&
1ro+i"ing +ale clearl$ %as to "o !it% gi+ing t%e best1ro+i"ing +ale clearl$ %as to "o !it% gi+ing t%e best
7alit$, at t%e least price& To satisf$ cstomers, an7alit$, at t%e least price& To satisf$ cstomers, an
enterprise mst respon" 7ic-l$ to ser+ice goo"senterprise mst respon" 7ic-l$ to ser+ice goo"s
t%rog%ot t%eir life c$cle& It follo!s, t%en8t%rog%ot t%eir life c$cle& It follo!s, t%en8
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/ale to t%e cstomer/ale to t%e cstomer
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IGN 'orl" class enterprises are respon"ing to t%is +ale'orl" class enterprises are respon"ing to t%is +ale
e7ation&e7ation&
Maintenance management is important to all bsinessMaintenance management is important to all bsiness
sectors * an" critical to t%ose t%at are capital intensi+e§ors * an" critical to t%ose t%at are capital intensi+e&
UptimeUptimeis a "iscssion of some of t%e latest t%in-ing an"is a "iscssion of some of t%e latest t%in-ing an"practices for maintenance management&practices for maintenance management&
UptimeUptimeis strctre" in for parts8 beginning !it% effecti+eis strctre" in for parts8 beginning !it% effecti+e
lea"ers%ip, t%en gaining control of t%e maintenance fnctiolea"ers%ip, t%en gaining control of t%e maintenance fnctio
a"+ancing to continos impro+ement acti+ities, !%ic% seta"+ancing to continos impro+ement acti+ities, !%ic% sett%e stage for 7antm leaps in asset pro"cti+it$& )ig&3t%e stage for 7antm leaps in asset pro"cti+it$& )ig&3
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1lan an"
Sc%e"leTacticsMeasres
Data
Management
T1MRCM
Strateg$ Management
1rocessReengineering
Continos
Impro+ement
=antm
Leaps
Control
Lea"ers%ip
Figure 2. World Class Maintenance
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Building a Maintenance
Strategy
Section 1
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INTRODUCTION 1/2
In larger enterprises, sc% as manfactring an"
processing plants, most emplo$ees an" specialist
managers "o not -no! t%eir cstomers or n"erstan"
t%eir real nee"s&
T%is crcial information is lift to t%e sales staff or
mar-eting "epartment&
T%e$, in trn, pass along !%at t%e$ learn to t%e corporate
"e+elopment "epartment&
>eep in min" t%at !%at !or-s for maintenance is not
mc% "ifferent t%an for t%e bsiness generall$&
?o %a+e to -no! !%ere $o are, %o! !ell $o are "oing,
an" !%ere $o are going&
/
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t$pical bsiness strateg$ %as t%e follo!ing elements8
"escription of t%e crrent pro"cts an" ser+ices, an" of
t%e -e$ cstomers an" t%eir "egree of satisfaction&
n anal$sis of t%e financial performance
re+ie! of t%e competiti+e en+ironment an" state of t%e
mar-et place&
T%e strengt%s, !ea-nesses, an" -e$ competiti+e
"imensions of t%e bsiness
"escription of t%e bsiness +ision in, sa$, fi+e $ears
statement of t%e mission, gi"ing principles, an" ma@or
ob@ecti+es to be accomplis%e" an" t%e bsiness plan to
ac%ie+e t%em&
Once t%e$ compan$ "efines an" commnicate its
bsiness strateg$, t%e same approac% can be applie" to
maintenance&
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MAINTENANCE MANAGEMENT IN CONTEXT 1/3
Simpl$ state", maintenance -eeps an asset performing to
t%e stan"ar" t%at is re7ire"&
Maintenance management "eals !it% t%e planning,
organi:ing, an" controlling it ta-es to accomplis% t%at&
;t man$ 7estions remain nans!ere"&
Can !e "esign for better maintainabilit$(
Can operating proce"res affect asset performance(
9o! "oes maintenance impact asset life0c$cle costs(
Clearl$, maintenance is onl$ part of t%e asset life c$cle&
Maintenance is one step in a nine0step asset management
process, "escribe" in )ig& .&.&
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Dispose Asset
Strategy
Plan
EvaluateDesign
Operate
MaintainModiy
!reate"Pro#ure
Figure 1-1. Optimizing Life-C!"e In#e$tment %&"ue
MAINTENANCE MANAGEMENT IN CONTEXT 2/3
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IGN 'e are also programme" to t%in- an" act in fnctional
silos AI "esign, $o operate, an" someone else fixesB *
t%at !e often miss t%e o+erall bsiness process&
sset management begins b$ as-ing !%$ t%e asset is
re7ire" an" %o! it relates to t%e bsiness plan&
fter t%at a closer loo- sets t%e prposes, fnction, an"
stan"ar"s or performance&
Reaping t%e cost0benefits of an assets rests on all nine
steps&
I"eall$, maintenance, operations, engineering, materials,
acconting, an" an$ ot%er rele+ant "epartment !ill be
in+ol+e" eac% step of t%e !a$&
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)RME'OR> )OR T9E STRTEG? .
;il"ing a maintenance strateg$ follo!s t%e mo"el
"escribe" in )ig&.&3&
)oremost in an$ bsiness plan are t%e nee"s an" !ants
of t%e cstomers, s%are%ol"ers, an" ot%er sta-e%ol"ers&
T%e -e$ ob@ecti+es for eac% fnction an" element in t%e
bsiness strateg$ are "rafte" !it% t%em in min"&
Maintenance is li-el$ to %a+e t%e follo!ing targets8
Maximi:e t%e pro"ction rate of a particlar pro"ct&
1%ase ot t%e operation of a plant or pro"ct line&
"" pro"cti+e capabilit$ assetsF for anot%er plant&
Eliminate store in+entories t%rog% +en"or partering&
FAMEWO! FO T"E #TATEG$ 2/%
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sset
En+ironment
1erformance Gap
Global Ob@ecti+es for 1lant
engineering 2 Maintenance
1erformance Dri+ers
/isionCrrent Stats
Concepts
Mission, Man"ate
Gi"ing 1rinciples
;siness
Strateg$
Tactics
Organi:ationrrangements
E"cation,
Training
S$stems,1roce"res
Met%o"s
Tools
Figure $%&' Maintenan#e Strategy Model
FAMEWO! FO T"E #TATEG$ 2/%
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IGN maintenance strateg$ is li-e an$ ot%er tool of bsiness
0it is not meant to %ammer a!a$ in onl$ one "irection&
If t%e compan$#s sitation c%anges, so mst t%e
maintenance mo"el&
One organi:ation restrctre" so ra"icall$ t%at e+er$ @ob
!as altere"& )ormer emplo$ees col" appl$ for t%e fe!er
positions t%at reslte"&
FAMEWO! FO T"E #TATEG$ 3/%
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T%e ne! maintenance engineering manager set -e$ t%ree0
$ear ob@ecti+es&
.& To0re0engineer t%e entire maintenance managementprocess, !it% particlar emp%asis on pre+enti+e an"
planne" correcti+e !or-&
3& To set t%e terms for, select, an" implement a
compteri:e" maintenance an" in+entor$ management
s$stem&
6& To intro"ce a mlti0s-illing pilot pro@ect in con@nction
!it% t%e nion local&
& To agment t%e s%ort * me"im 0, an" long0range
maintenance planning capabilities&
T%ese for ob@ecti+es !ere t%e fon"ation of t%e
maintenance +ision&
To implement t%em, t%ere is a nee" to e+alate t%e crrent
FAMEWO! FO T"E #TATEG$ %/%
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T"E MAINTENANCE &IAGNO#TIC 1/'
Maintenance impro+ement fails !%en t%ere#s little
n"erstan"ing of t%e sitation at %an"&
;efore embar-ing on an impro+ement program, assess
t%orog%l$ t%e strengt%s an" !ea-nesses of t%e present
s$stem an" !%ic% areas s%ol" %ea" t%e list foren%ancements&
It s%ol" be compre%ensi+e an" co+er strategic,
proce"ral, tec%nical, a"ministrati+e, an" cltral isses
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ppen"ix is t%e table of contents of a maintenance
management "iagnostic re+ie!& Ma@or areas of t%is re+ie!
are8 ;siness c%aracteristics
Maintenance en+ironment an" strateg$
Organi:ation arrangements an" %man resorcemanagem6ent
Maintenance a"ministration
1lanning, sc%e"ling, an" !or- or"er management
1re+enti+e an" pre"icti+e maintenance tacticsF
E7ipment recor"s an" %istories
1rc%asing, storage, an" parts in+entor$ control
1erformance measrement an" cstomer satisfaction&
tomation an" information tec%nolog$
T"E MAINTENANCE &IAGNO#TIC 2/'
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IGN not%er !a$ to perform assessment is to "istribte a self0
a"ministere" 7estionnaire& 1articipants are as-e" to rate
+arios aspects of plant engineering an" maintenance&
Eac% response is score" an" plotte" eit%er on a
%istogram )igre .&6F or on a ;ell0Mason t$pe spi"er
"iagram )igre .&F&
In )igre .&6, t%is example %as ten categories& T%e areas
re7iring t%e greatest attention are performance
monitoring an" reporting, an" t%e !or- or"er s$stem&
T"E MAINTENANCE &IAGNO#TIC 3/'
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(
$(
&(
)(
*(
+(
,(
-(
Satisfactio
I II III IV V VI VII VIII I. .
Categor$
I.I. MaintenanceMaintenance
II.II. Organization & AdministrationOrganization & Administration
III.III. Work Order SystemWork Order System
IV.IV. M & !ailure AnalysisM & !ailure Analysis
V.V. er"ormance Monitoring and #eportinger"ormance Monitoring and #eporting
VI.VI. Stores and urc$asingStores and urc$asing
VII.VII. %ost control%ost control
VIII.VIII. Sa"ety and ousekeepingSa"ety and ousekeeping
I'.I'. Maintenance (ngineeringMaintenance (ngineering
'.'. )raining)raining
(
Figure 1)3. #el*)E+aluation o* Maintenance Manage,ent #u,,ar- esults
T"E MAINTENANCE &IAGNO#TIC %/'
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MaterialsMaterials
Manage/entManage/ent
Inor/ationInor/ation
Te#0nologyTe#0nology
Peror/an#ePeror/an#eMeasuresMeasures
Relia1ilityRelia1ilityAnalysisAnalysis
Maintenan#eMaintenan#e
Ta#ti#sTa#ti#s
E/ployeeE/ployee
E/po2er/entE/po2er/ent
3u/an Resour#es3u/an Resour#es
StrategyStrategyMaintenan#e Pro#essMaintenan#e Pro#ess
ReengineeringReengineering
Planning andPlanning andS#0edulingS#0eduling
&(&($(($(( $(($((4(4(4(4( ,(,(,(,( *(*(*(*( &(&(
)igre .0&)igre .0& Maintenance Self0ssessment ResltsMaintenance Self0ssessment Reslts
T"E MAINTENANCE &IAGNO#TIC /'
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IGN )inall$, maintenance management is percei+e" "ifferentl$
t%rog%ot an organi:ation& 1ro"ction, engineering, senior management, an area or
tra"es groping * all %a+e t%eir o!n nee"s& simple gri",
measring nine broa" areas against t%e crrent stats, can
gi+e a 7alitati+e score, from Innocence to Excellence&
)igre .&5 pro+i"es an example&
T"E MAINTENANCE &IAGNO#TIC /'
T"E MAINTENANCE &IAGNO#TIC /'
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MAINTENANCE EXCE00ENCE GI&
Strateg$Strateg$ 9man9manresorcesresorces
ManagementManagement
1lanning 21lanning 2Sc%e"lingSc%e"ling
MaintenanceMaintenanceTacticsTactics
ECELLENCEECELLENCE
Set #orporateSet #orporate/aintenan#e/aintenan#estrategy"assetstrategy"assetstrategystrategy
Multi%s5illedMulti%s5illedindependent tradesindependent trades
Long%ter/ and /a6orLong%ter/ and /a6orpro6e#t planning 7pro6e#t planning 7engineeringengineering
All ta#ti#s e/ployee%All ta#ti#s e/ployee%1ased on analysis1ased on analysis
COM1ETENCECOM1ETENCE
Long%ter/Long%ter/I/prove/ent planI/prove/ent plan
So/e /ulti%s5illedSo/e /ulti%s5illed Good 6o1 planningGood 6o1 plannings#0eduling8 engineerings#0eduling8 engineeringsupportsupport
So/e !9M: so/eSo/e !9M: so/ePM: e2 surprisesPM: e2 surprises
UNDERSTNDINGUNDERSTNDING
Annual i/prove/entAnnual i/prove/entplanplan
De#entrali;ed /i
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1erformance1erformance
measresmeasres
InformationInformation
Tec%nolog$Tec%nolog$
Emplo$eeEmplo$ee
In+ol+ementIn+ol+ement
Reliabilit$Reliabilit$
nal$sisnal$sis
1rocess1rocess
nal$sisnal$sis
ECELLENCEECELLENCE
E=uip/entE=uip/entee#tiveness:ee#tiveness:1en#0/ar5ing: ull1en#0/ar5ing: ull#ost data1ase#ost data1ase
Fully integrated:Fully integrated:#o//on data1ase#o//on data1ase
Autono/ousAutono/ous2or5 tea/s2or5 tea/s
Full value%ris5Full value%ris5progra/progra/
Regular revie2Regular revie2 pro#ess #ost8pro#ess #ost8ti/e8 =ualityti/e8 =uality
COM1ETENCECOM1ETENCE
MT9F"MTTRMT9F"MTTRavaila1ility: separateavaila1ility: separate/aintenan#e #osts/aintenan#e #osts
Fully un#tional:Fully un#tional:lin5ed tolin5ed toinan#ials"inan#ials"
/aterials/aterials
!ontinuous!ontinuousi/prove/enti/prove/enttea/stea/s
So/eSo/eFME!AFME!Aappliedapplied
So/e revie2 oSo/e revie2 oad/inistration8ad/inistration8engineering 7engineering 7
trades pro#esstrades pro#ess
UNDERSTNDINGUNDERSTNDING
Do2nti/e 1y #ause:Do2nti/e 1y #ause:/aintenan#e #ost/aintenan#e #ostavaila1leavaila1le
Fully un#tional: noFully un#tional: nolin5 to ot0erlin5 to ot0ersyste/ssyste/s
For/alFor/al2or5pla#e2or5pla#ei/prove/enti/prove/ent#o//ittees#o//ittees
Good ailureGood ailuredata1ase: selldata1ase: sellusedused
So/e revie2s oSo/e revie2s otradestradespro#esses8pro#esses8ta#ti#sta#ti#s
'RENESS'RENESS
So/e do2nti/eSo/e do2nti/ere#ords8re#ords8/aintenan#e #osts/aintenan#e #ostsnot segregatednot segregated
9asi#9asi#/aintenan#e/aintenan#es#0eduling: so/es#0eduling: so/eparts re#ordsparts re#ords
So/eSo/ei/prove/ent8i/prove/ent8saety /eetingssaety /eetings
!olle#t t0e!olle#t t0edata: littledata: littleusedused
A one%ti/eA one%ti/erevie2 orevie2 o/aintenan#e/aintenan#epro#esspro#ess
INNOCENCEINNOCENCE
No syste/ati#No syste/ati#approa#0:approa#0:/aintenan#e #osts/aintenan#e #ostsnot availa1lenot availa1le
Manual or ad 0o#Manual or ad 0o#spe#ialty syste/sspe#ialty syste/s
Only union%staOnly union%sta/andated/andated/eetings/eetings
No ailureNo ailurere#ordsre#ords
Never revie2edNever revie2ed
MAINTENANCE EXCE00ENCE GI& 'CONTINU(D)
T"E MAINTENANCE &IAGNO#TIC '/'
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&EE0OING T"E I#ION 1/3
Once $o n"erstan" !%ere maintenance managementstan"s, a s%are" +ision mst be "e+elope"&
)$e di""erence *et+een t$e current reality and t$e ,ision
is- in essence- your maintenance impro,ement plan.
Goals mst be base" on t%e o+erall bsiness plan, an"t%e ma@or "ifferences bet!een Abest practiceB an" crrent
realit$ mst be n"erstoo"& T!o steps remain8
Ensring Abest practiceB is a realistic +ision for $or
in"str$ sector an" $or particlar operation&
Setting priorities for t%e +arios factors assesse"&
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IGN ;enc%mar-ing is an excellent !a$ to start& T%is tec%ni7e
in+ol+es loo-ing at %o! t%e lea"ers in t%e fiel" ac%ie+e$or o!n performance targets&
pblis%e" re+ie! of maintenance engineering ma$ be
t%e best option& Tec%nolog$ an" management perio"icals
an" ne!sletters often pblis% featres on inno+ation an"
best practice&
Un"erstan" $or o!n strengt%s an" !ea-ness before
st"$ing %o! ot%ers manage maintenance&
T%ere is a significant "ifference bet!een stating a +ision
an" %a+ing all concerne" accept&
T%ose !%o !ill be responsible for ac%ie+ing t%e +ision
s%ol" be in+ol+e" in t%e maintenance plan&
&EE0OING T"E I#ION 2/3
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Gi+ing t%em t%e c%ance to %elp create t%e plan !illencorage t%e participants to pll toget%er& T%e$#ll feel
responsible for ma-ing it !or-&
Someone to facilitate t%is grop session s%ol" %a+e no
"irect sta-e in t%e otcome&
T%at !a$, $o#ll get ob@ecti+e lea"ers%ip an" more
in"i+i"al in+ol+ement&
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'it% t%e maintenance re+ie! an" +ision "etermine", $o
mst "e+ise a plan for ac%ie+ing t%e +ision& Consi"er
H T%e tas- an" its -e$ acti+ities& )or example,
1lanning an" Sc%e"ling incl"es i"entification,
prioriti:ation, materials, labors-ills, !or-steps,
safet$ consi"erations, @stification, etc&
H T%e priorit$ of t%e initiati+e& H Estimate" resorces an" le+el of effort re7ire"&
H T%e AC%ampion,B or person responsible for ensring
sccessfl completion, an" t%e Asponsor4 to5ro+ide t6e resources.
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H T%e start "ate, completion "ate, an" milestones along
t%e !a$&
H T%e goal to be ac%ie+e" on sccessfl completion,
an" !%at $o#re going to measre to "etermine if
$o#re on t%e rig%t trac-&
Example8 One bsiness !it% a soli" %istor$ of reliabilit$an" profitabilit$ "e+elope" an o+erall p%$sical asset
management strateg$, !%ic% "ealt !it% most of t%e asset
management process "escribe" in )igre .03&
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T%e mission * ATo maintain asset to meet cstomers#
nee"s cost effecti+el$ to continosl$ impro+e s-ills an"
process to optimi:e asset life, sing best0fit met%o"s an"tec%nologies to !or- safel$ an" be en+ironmentall$
responsible&
O*ecti,es* )i+e long0term ob@ecti+es !ere selecte" to fill
t%e gaps bet!een t%e realit$ an" +ision& T%e focs !as on
%a+ing %ig%er e7ipment effecti+eness t%an t%e in"str$a+erage at a lo!er maintenance cost base" on t%e
replacement +ale of assets emplo$e"&
Action* Eac% ob@ecti+e !as Ao!ne"B b$ a c%ampion, !%o
committe" resorces, "e+elope" a timetable, an"
strctre" a "etaile" implementation plan&
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OFENVIRONMENTALDESIGN Contracting maintenance acti+ities is strategicall$ important&
Most bsiness contract ot some form of maintenance&
In Nort% merica, abot .5 percent of maintenance is
sbcontracte" to a t%ir" part$ in Japan an" Erope, it is
abot "oble t%at&
Somet%ing t%at allo!s $o to compete an" !in in t%e
mar-etplace&
Ensre t%at performance stan"ar"s are set an" monitore"
closel$& T%ere s%ol" be clear lines "ra!n bet!een in0%ose
an" contract in+ol+ement&
Despite a clear strateg$, t%e best0lai" plans can go astra$&?o %a+e to -no! $or cstomers, t%en "e"icate $orself to
satisf$ing t%eir nee"s&
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THANK YOU