1 assets management at arcelormittal - french cto | operational excellence september 20 th, 2009

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Assets Management at ArcelorMittal - French

CTO | Operational Excellence September 20th, 2009

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CTO | Operational Excellence

Une bonne cinquantaine de sociétés autonomes il ya dix ans

La formation d’ArcelorMittal

2008

2006

2002

1999

Mi 2008:350 000 salariés100 000 ss ttsdans 60 pays

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De World Class à bon • Europe de l’ouest• Canada anglais• Brésil

Passable• Ukraine• Mexique • Argentine• Canada français• Kazakhstan • mines en général

Très dégradé • Europe de l’est en général• USA • Afrique du sud

Catastrophique • Roumanie• Algérie

Technologie: l’état des équipements

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De World Class à bon: exemple du Brésil

Timoteo Cold Rolling mill

Vega do Sul Galvanising line

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Bonne pratique: éviter de salir pour ne pas nettoyer

De World Class à bon: exemple du Brésil

Maintenance day at Vega do Sul – paper rolls covering walking lanes to avoid excess of dirt on the ground

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Passable: exemple de l’Ukraine

Kryvyi Rih roll shop

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Très dégradé: exemple des USA et de la RSA

Cleveland Blast Furnaces area

Newcastle shipping bay

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Catastrophique, ex. de la Roumanie et de l’Algérie

Annaba, sinter plant ground floor

Roman tube mill

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ComportementEnthousiastes et prêts à tout pour améliorer: les brésiliens

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ComportementTellement sûrs d’être les meilleurs… beaucoup et partout

PS : You could add on this slide: USA – management vision limited to the next 24 hours, avoiding commitment, personal tactics, and non-US processes politely disregarded… Bernard PLUMIERContinuous Improvement ManagerArcelorMittal USA Heavy PlatesCoatesville Plant

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• Commencer par un succès rapide (16 semaines) sur un sujet sensible avec une méthode très élaborée (Prong 1)

• Démarrer WCM en parallèle, de sorte qu’il y ait des équipes pour prendre le relais en fin de vagues Prong 1 et continuer à améliorer. Exemple: 2 vagues pour réduire la consommation d’huile au train à chaud de Vanderbijlpark (-50% d’avril à juillet 2009, et à nouveau -50% d’août à novembre). En //, réduction des pannes de 60% sur le dégrossisseur par la maintenance autonome.

Obtenir de la crédibilité: Prong 1 puis Prong 2

Appoint the team Communicate Data collection Plan Diagnosis Identify specificities

Vision Planning Implementation SustainabilityPreparation Diagnosis

Implement action plan according to identified levers

Ensure changes and improvements sustainability

Team building, communication, data collection

Operating SystemOperating System

Management InfrastructureManagement Infrastructure

Mindset and BehaviorMindset and Behavior

Operating System

Management Infrastructure

Mindset and Behavior

Levers Implementation

4 weeks 1 week 9 weeks 1 week1 week

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Développement de WCM

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• Etat catastrophique:– On détache des experts quelques mois pour faire apprendre les

basiques (standards de process et de maintenance p. ex.) et cela prend du temps (comportement)

• Etat très dégradé ou passable:– On démarre par du 5S, sauf en Afrique du Sud où les dirigeants ont

considéré que WCM est “must-have”. Aux USA, quelques mois après le démarrage du WCM, les dirigeants on changé pour RCM.

• Etat bon ou excellent:– Le WCM est habituellement en place. Sinon, nous proposons un

modèle de maintenance ainsi qu’un questionnaire d’auto évaluation sur 6 familles d’activité de maintenance.

Là où on ne peut développer WCM

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Man

agem

ent &

Lea

ders

hip

Health & Safety - Environment - Competency - Discipline

Maintenance

Excellence

Strategic

Maintenance

Proactive

Maintenance

Planned

Maintenance

Reliable Assets

Risk Analysis

Certification Emerging Technology Evaluation

Equipment Standardization / Spares Strategy

Maintenance Task Analysis

TCO Analysis

Maintenance Engineering

Support

Optimum Local / Central

Resources

Strategic Use of Third Parties

Maintenance / Operation

Partnership

External Benchmarking

Training & Certification Program

Predictive Maintenance Abnormality Reporting System

Condition Monitoring (online / offline)

Professional Qualification

Equipment History

Failure Analysis &Action plans

Periodic maintenance & Inspection CMMS

Process Information Monitoring

Performance Tracking & Reporting (KPIs)

Work Identification /Prioritization

Planning &Scheduling

Work OrderExecution & Follow-up

Maintenance by Sets

Maintenance Standards

Safety Procedures

Asset Ranking

Operations Involvement

RCM

Guaranteed Performance of Repaired Equipment

Life Cycle Analysis

Role Clarity

House Keeping

Regular Review of Maintenance Plans

ArcelorMittal Asset Reliability Management System

Practices

Infrastructure

Asset Reliability Process

Implementation Approach

Practices

Infrastructure

Asset Reliability Process

Implementation Approach

Implementation Approach Sustained

CapabilityLoop

ContinuousImprovement

Loop

Planning

ExecutionFollow-up

Confirm Manufacturing

ProcessPerformance

Requirements

AssessAsset

Capability

Establish AssetReliability

Targets

Review Asset Hierarchy and

Ranking

Performance Analysis

Work Identification

Scheduling

Asset ReliabilityAsset ReliabilityProcessProcess

Sustained Capability

Loop

ContinuousImprovement

Loop

PlanningPlanning

ExecutionExecutionFollow-upFollow-up


ProcessPerformance

Requirements


ProcessPerformance

Requirements

AssessAsset

Capability

AssessAsset

Capability


Targets


Targets


Ranking


Ranking



Work Identification

Work Identification

SchedulingScheduling

Asset ReliabilityAsset ReliabilityProcessProcess

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Questionnaire d’auto évaluation PROBLEM DIAGNOSIS AND REPAIR EXECUTIONLEVER Category and scoring4 POOR: 1 AVERAGE: 4 GOOD: 7 WORLD-CLASS: 10

Problem communication

Communication between Operations and Maintenance

Little or no operations

involvement in problem

reporting

Operations usually report

problems with some

description

Operations provide f airly

detailed problem

descriptions before many

repairs (planned and

unplanned)

Operations systematically

provide detailed problem

descriptions before repairs

(planned and unplanned) and

communicate with

maintenance during and

af ter repairs

Complete instructions for craftsmen

Craf tsmen receive

incomplete job instructions

Craf tsmen receive complete

description of tasks with

little supporting detail (e.g.:

parts needed)


description of tasks and

parts


information and work order

details (estimated labour

hours, task, materials,

equipment history)

Root cause problem solving

Root cause analysis

Little or no root cause

analysis is made, and

problems reoccur.

I nformal/ ad hoc analysis on

repeat problems and

equipment.

Some countermeasures are

locked up, e.g. by Standard

Operating Procedures.

All equipment are ranked

af ter their criticality. Root

cause analysis is done on

critical equipment (all AA

and selected A machines*)

All countermeasures are

locked up.

Due to thorough root cause

analysis, zero breakdown is

achieved on all critical and

important equipment (all AA

lines and A machines*).

All countermeasures are

locked up.

Engineering support

Maintenance has little or no

engineering support

Maintenance has occasional

engineering support

Engineers do most project

work and are regularly

involved in root cause

analysis

Engineers fully support and

contribute to root cause

analysis

Repair execution

Operation's involvement

Operators don't perform any

activity to maintain basic

conditions of their

equipment. Autonomous

maintenance** does not

exist.

Operators perform some

simple maintenance tasks and

are aware of and maintain

basic conditions of their

equipment.

Step 3 of Autonomous

maintenance** (Standards

and checking routes initial

f ormalization) in progress.

Operators assist

maintenance on major tasks

and do some minor

adjustments and repairs but

are not trained.

Autonomous maintenance**

is well implemented and step

4 achieved (Widening &

deepening checking skills,

general inspection).

Operators are trained to

assist maintenance on major

tasks and to execute simple

routine equipment

adjustments and repairs.

Autonomous maintenance**

is stable and all standards

are improved and step 6 is in

progress (I ntegration of :

machine operation, product

quality, maintenance

conditions)

Maintenance craftsmen's involvement

Craf tsmen only do assigned

tasks

Craf tsmen look at problem

and plan on the spot

Craf tsmen plan simple repair

work and participate in

planning major repair tasks.

Craf tsmen plan simple repair

work and participate in

planning major repair tasks.

They gather data to f eed

formal diagnostic post

repair.

Feedback on repairs

There is little or no log of

f eedback on repairs

Only information on repair

duration and major

incidences is recorded. No

f ormal analysis of repair

inf ormation.

Complete f eedback on

repairs is available (duration,

materials consumed,

incidences, etc.). Rough

diagnosis made on major

repair. Some modification of

SOPs.

Complete f eedback on

repairs and improvement

ideas. Systematic and

comprehensive diagnostic on

repairs is made. SOPs

modified accordingly.

Managerial issues Total points achievable: 70 Total points achieved: 43 SCORE IN %: 61,4

Technical issuesBehavioural issues AA and A machines*: see in Annex how to proceed to rank machines

Autonomous maintenance**: see in Annex what are the 7 steps of Autonomous Maintenance

INFRASTRUCTURE SUPPORTLEVER Category and scoring4 POOR: 1 AVERAGE: 4 GOOD: 7 WORLD-CLASS: 10

Catalogue

Stores catalogue is not permanently

updated, and many items are not

encoded.

Stores catalogue permanently updated

f or major items. Most items are

encoded.


f or all items. All items are encoded.


f or all items. Finding any part in the

catalogue is simple and quick.

Housekeeping

Stores are in a clutter. Little or no

method to store parts. Finding the

right parts require of ten time, and

some are missing.

A visible eff ort to store parts is made.

Time to fi nd parts and to physically de-

stock is still variable, and errors still

occur. Some parts are missing, and still

not all are f ound on fi rst try.

Stores are orderly. Places and storage

conditions are defi ned according to

parts and use-by dates, but there is no

f ormal and systematic method to do

that. Few parts are missing, and not

fi nding a part on fi rst try is an

exception.

Stores are orderly. A method to defi ne

places and storage conditions according

to parts nature, turnover, use-by date,

volume and weight is systematically

applied. All parts are available, and all

of them quickly f ound on fi rst try.

Storage units and boxes are adapted to

parts.

No parts mix-up, poka-yoke are of

common use.

Zero de-stocking error.

Stock management

No sound and f ormal method to decide

what to store and defi ne what are the

required levels. Stockoutages occur.

Minimum/ maximum levels set and

maintained f or some items. Practices

are based on experience, including

critical parts identifi cation. Some

stockoutages still occur.

Standards defi ne categories (normal,

critical), level of stock and restock

methods. What has to be put in store is

usually defi ned based on the

experience of suppliers or own people.

For AA and selected A machines*, their

critical parts are clearly defi ned, and

special attention is given to them.

Stockoutages are unusual. Stocks are

optimized, including working capital

considerations.

Standards defi ne what has to be put in

store, categories (normal, critical) and

what is the required level. A standard

defi nes how to restock according to

consumption and stock level. This

system is reviewed on a yearly basis at

minimum. Zero stockoutage is

maintained. Stocks are systematically

optimized, including working capital

considerations.

Under supervision of an ad hoc

committee, some parts are managed in

common with other plants with the

same above procedures.

Spares quality

During the past year, some problems

occurred due to spares quality and/ or

usability in whole plant.

There is no systematic incoming

inspection of spares.

A f ew problems still occurred during

the past year involving AA and selected

A machines.

I ncoming inspection of spares is

systematic f or the above machines.

Not a single problem with spares

quality and/ or usability f or the past

year involving AA and selected A

machines.

Systematic incoming inspection f or all

parts.

Not a single problem with spares

quality and/ or usability f or the past 2

years involving AA lines and all A

machines.

Inventory control

I nventories are not made on a regular

(yearly) basis. Signifi cant discrepancies

between real and expected occur.

Periodic inventory system. Signifi cant

discrepancies still occur in some cases.

Periodic or rolling inventory system

according to parts. Some discrepancies

still occur, with no major consequences.

Rolling inventories show that there is

no diff erence between real and

expected.

Contractor strategy

There is no f ormal strategy. Some

orders are made made orally and

settled af terwards.

There is some f ormal strategy. Open

orders are quite common.

There is a f ormal and agreed upon

strategy. All subcontracted activities

have written orders or contract. Most

contracts are quantifi ed in terms of

results to achieve, or improvement to

be made ("Progress contracts").

Activities to be subcontracted are

defi ned based on defi ned criteria, in

line with company Policy and Strategy.

Choice of contractors is transparent

and made based upon multi criteria

requirements. All subcontracted

activities have written and quantifi ed

requirements.

Trade-off evaluation

Trade-off between internal and

contract resources are not evaluated

Trade-off evaluated f or some jobs

based on price only

Trade-off between internal and

contract resources only done f or major

jobs based on quality, availability,

perf ormance, pricing, and internal

resource constraints

Continued use of contractors is

evaluated based on quality, availability,

perf ormance, pricing, and internal

resource constrains

Managerial issues Total points achievable:

Contractor management

Stores

0

20

40

60

80

100

EQUIPMENT STRATEGY AND MAINTENANCEAPPROACHES

PROBLEM DIAGNOSTIC AND REPAIR EXECUTION

ORGANIZATIONAL CAPABILITIES

PLANNING AND SCHEDULING

INFRASTRUCTURE SUPPORT

SYSTEM SUPPORT

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• Europe de l’Ouest, Brésil, Canada: participatifs ou neutres.• Ukraine: le bon coté du système soviétique s’applique.• USA: vivement pour dans les usines qui sont passées par Chapter 11,

méfiants dans celles qui n’ont connu que Chapter 7 • Afrique du Sud, réticents au départ, en progrès. Communication

particulière pour tuer le mythe que WCM consiste à transférer des activités de maintenance aux opérateurs à court terme, voir p. suivante.

Attitude des syndicats face au WCM

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Content Usual duration Who was in charge of it previously?

Step 1

Initial cleaning, anomalies identification and eliminationCleaning of dirt, dust and stains, mainly on machines. Lubricating, retightening loose bolts. Identifying dirt sources and hard to access areas. Put tags where anomalies are detected (blue or red). Blue tags: no need of special skills, the operator can correct himself; red tag: maintenance skills are needed and the tag is transferred to Maintenance. Example of anomalies: scrap and rubbish, abandoned parts, leaks, spatter, machine deterioration, overheating, vibrations, loose parts, poor fittings, missing parts, bent parts, rust, strange noise, strange smell, off centre, poor alignment...The deliverable of this step is a list of pollution and dirt sources, and of hard to access areas. Also, a

On the model machines, 1 to 2 months. On a whole plant of ~1000 people, 15 months for most AA (super critical) machines.

Actually nobody was clearly in charge, otherwise the situation would not have been like the one we usually find. It is nobody's fault, just the result of years of familiarization to rampant degradation and poor working environment. Normally, everyone should having been taking care of its own area, including Maintenance tidying up after intervention. It is hardly the case.

Step 2

Countermeasures against sources of dirt and improvement of poor access areas.Poor access areas are time consuming places to clean or inspect, tasks are difficult to carry out and safety issues are plenty.Improvement proposals come either from Autonomous Maintenance teams or from Focused Improvement working groups, depending the difficulty. During this step, first elements for provisional inspection standards and standard operating procedures improvements are gathered.Visible impact on people's safety and health.The deliverable of this step is a shop where pollution sources are either eliminated or contained, and

On the model machines, 1 to 2 months. On a whole plant of ~1000 people, 15 months for most AA (super critical) machines.

Usually, same as above. In some countries, the safety side (related to difficult to access areas for instance) in partially in charge of Safety Commissions, with participation of Unions'reps.

Step 3

Standards and checking routes initial formalizationThe operators establish which standards they must comply with in order to achieve and maintain line basic conditions: cleanliness, integrity, lubrication… They develop inspection standards to check that everything is as it should be ("agreed basic standard condition") and they regularly apply them. It is during this step that Visual Management is being developed (cf. ArcelorMittal Visual Management Handbook).The deliverable of this step is to permanently ensure good line basic conditions.A valuable side effect is a far better knowledge of line machines, functions, cinematics etc. that has a clear impact on safety conditions.

On the model machines, it starts 3 to 4 months after the beginning of AM and may last 1 to 3 years.

In some cases, lubrification inspection was more or less done by maintenance people, in the general frame of preventive maintenance activities. But there are few examples where it was systematically done to such an extent. It could compare to checking you car monthly in a garage, and checking all levels (gas, oil, tyre pressure...) every time before driving it. Until step 3 is completed, there is no real or significant transfer of tasks systematically performed by maintenance professionals.

Step 4

Widening & deepening checking skills, general inspectionThe purpose of this step is:- to achieve a deep understanding of structures, functions, operating principles;- to acquire proper skills to inspect main functions and parts of the lines;- to identify and repair latent and hidden defects.During the development of Step 4, a comprehensive lists of maintenance task will be drawn up. All the tasks that are transferable to production people will be listed. Among this list, the ones that are desirable to really tranfer will be extracted.This final list is highly variable. It actually depends on the skills acquisition potential of the local team of production people. The ideal is to transfer as much as possible, for the most skilled people are, the more the company is able to ensure reliability and productivity. Then, a training plan is set up at individual level, and tasks are gradually transferred after thorough checking that operational skills are in place. Following that, all inspection standards are reviewed according to new knowledge, and teams enter a virtuous circle Inspection / result analysis / training

Some plants are happy with good Step 3 activities and never implement Step 4. Some other want to go further. In this case, to fully implement this step takes usually 1 to 2 additional years. It may substantially vary depending on the initial education of the workforce. The depth may also greatly vary for the same reasons.

The content of tranferred task is usually made of first level maintenance activities:- inspections, - small repair,- parts replacements- participation to overhauls under supervision of professionals.

The main effect of good AM practices is that breakdowns due to lack of basic conditions have virtually disappeared. Usually, Maintenance department has implemented in parallel a zero breakdown approach on critical and important machines. There is no significant reduction of maintenance workforce, but a radical change of work content: most activities are preventive (time-based or condition-based) and targeted at improvement.

Maintenance professionals keep specialised task: as incidents are now unusual, only skilled professionals have the proper background and experience to act, it is kind of a paradox.

AUTONOMOUS MAINTENANCE, THE 4 FIRST STEPS

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Thanks for attention!

1 assets management at arcelormittal - french cto | operational excellence september 20 th, 2009

Documents

maintenance autonome

ground page

week page

quipements page

brsil maintenance day

usa et

ne peut dvelopper wcm

sul galvanising line