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Results Oriented

Reliability and Maintenance

Consulting and Training

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Results Oriented Reliability and Maintenance

WWW.IDCON.COM© Copyright IDCON

IDCON Staff

• Oli Håkansson• Michael Lippig• Tor Idhammar

• Originated in Sweden 1972 as Idhammar Konsult AB.

• Established in USA 1985.

IDCON, INC.

To help our clients Improve Overall Reliability and Lower

Manufacturing and Maintenance Costs.

IDCON Mission

What Do We Do?

Open Training Seminars

In Plants

Reliability & Maintenancefor process industry•Advice•Leadership Organization•Assessments•Planning & Scheduling•Preventive Maintenance•Root Cause Problem Elimination•Spare parts Management•Technical Database

IDCON Books

Client CriticalPeriod

CommitmentOwnership

Outside Support Phases out as your Organization Takes over Ownership

Results Oriented

WWW.IDCON.COM

AwarenessCost Vs. Reliability

Reality for Plants

Which Cost is Most Importan?

Maintenance Cost?Maintenance Cost per Ton?

Total Cost per Ton?Total Cost?

Three ways to reduce maintenance costs

1. Cut the cost

2. Reduce the need for maintenance

3. Execute remaining maintenance more efficiently.

Deferred maintenance leads toshort term savings and long term higher costs.

Procurement based on Life Cycle Cost.Maintenance Prevention

Lubrication, Alignment, Balancing, Operating practices.

Inspect, Prioritize, Plan, Schedule, Record, Analyze, Improve.

CUT COSTNO OTHER

IMPROVEMENT

Wrong Turn

1. Cut Cost2. Less Repairs and

PM* are Executed3. Reliability will slowly

falter4. Reliability will falter

quicker5. Maintenance repairs

become reactive6. Cost of repairs, lost

production , and spares go up

7. Reliability become worse due to completely reactive work cycle

8. Cost go up even more*PM = Preventive Maintenance

Right Strategy 1. Inspect equipment better

2. Failures are identified before break down

3. More lead time to plan & schedule

4. Reliability improves

5. Cost may go up due to repairing more for a while

6. Reliability goes up

7. Cost follows due to fewer break downs

Case study 1 -Focusing on COST

Reduction.

Justifying Investment in Reliability

Year 0 Year 2 Year 4 Year 6 Year 8 Year 10

Maint. Cost Million $0000 tons prodReliability

Ten years effect of two years cost cutting focus

Maint. Cost Million $Lost Revenue Million $

Ten years effect of two years cost cutting focus

Case study 2Focusing on Reliability

Improvement

Justifying Investment in Reliability

Ten years effect of reliability improvement focus.

Maint. Cost Million $0000 tons prodReliability

Ten years effect of reliability improvement focus.

Maint. Cost Million $Increased Revenue Million $

Average Market Price: $595 per tonLess Variable Cost/ unit: $296 per tonContribution tocover fixed costs= $299 per ton.

Production 2006: 329,000 tons / year

One percent increase in output is 1% * 329,000 = 3290 tons

Additional PROFIT for 1% increase is: 3290 * 299 = $984,000 ANNUALLY!

Value of lost Production for your plant – Actual Example Product X

Profit (or lost profit) / Hour = 329,000 tons/ 8760 hrs = 37.55 tons/ hr299 * 11.76 = $11,229/ hr

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

0% 1% 2% 3% 4% 5% 6% 7%

Value of increasedReliability

Leverage of Increased Reliability andReduced Maintenance Costs Product X

Cost vs Reliability

• Your Maintenance and Storeroom cost is about 60 Millions Year.

• How would you reduce this cost?• What happens to that cost if reliability improves

Results Oriented

WWW.IDCON.COMProduction Reliability

Maintenance-Equipment Reliability

Operations-Process Reliability

Engineering-Life Cycle Cost

OVERALL PRODUCTION EFFICIENCY (OPE)

Q - % Prime Quality Volume

S - Operation Rate or Speed

Time Up x 100

Time Up + Time Down

Prime Quality Volume x 100

Prime Quality Volume + Rejects

Actual Capacity x 100

Actual Capacity + Speed Losses

OPE = %A x %Q x %S

A - % Availability or Time Up

Results Oriented

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Create & CommunicateVision – Where are we going? (Paint the picture)

Predictive maintenance

Planned maintenance

TPM AMCBM

Build up

Break throughIdentifyBest Practices*

* About 286 elements

Lean Maintenance

Do We Know Exactly Where We are Going?

Reliability Performance

CURRENT

Where Plant Wants to be

•Must Be CLEAR•SIMPLE•Well Communicated

Identify the Gap

Actual

• How good are we?

Best Practices in Reliability and Maintenance

• How good could we be?

IDCON Definition - Preventive Maintenance / Essential Care and Condition Monitoring ( PM/ECCM )

Essential Care/ FTMPrevents Failures

Condition MonitoringDetects Failures

•Lubrication•Alignment•Balancing•Detailed Cleaning•Operating Practices•Installation Practices•Filtration •Adjustments•Fixed Time Maintenance

LookListenFeelSmell

MeasuringPressureFlowCurrent, VoltageDistanceVibration TemperatureSound level

UsingInfrared CamerasVibration SensorsShock Pulse MeasurementUltrasonic Thickness TestUltrasonic Listening (leaks)Oil AnalysisGauges, etc

ObjectiveProvides a comparable reading

SubjectiveProvides no reading

How well you are doing is sometimes very visual

72” 1200 HP- Single Drive Raw Coal – The Gearbox

Proposed Gearbox Inspection (example)

Noise, Temperature, Bolts, Vibration, Oil Leaks, Oil Level, Breather, Base & Foundation

• CMS117R – Gear Reducer

Preventive Maintenance 72” 1200 HP- Single Drive Raw Coal -The Motor

Air Intake, Detailed Cleaning, Water/ Humidity, Temperature, Vibration, Noise, Base/ foundation/ hold down bolts, Electrical Cables and Junction Box

• CMS100R – AC Motor

CMS Overview

Basic Principle of Operation

Why this Task is Important

Describes the Inspection Task

Reference Key to Inspection

Centrifugal Fan – Example for Using CMS

CMS 142R Fan – Air Centrifugal

CMS129R Bearings

CMS 137R Belt Drive

CMS 100R Motor AC

Paper Route Example

Fahrenheit

Handheld Example

Where to Start Improving PM and Operator Involvement?Typical Priority – process industry?

1. Basic Lubrication (rotes & oil changes)2. Inspections: Mechanical, Electrical ,Instrumentation, Operations

On-the-run & off-line (incl. vibr/ infrared/ ultrasound/ NDT)3. Cleaning & Operator Practices4. Alignment (if you have a lot of rotating equipment)5. Precision Installation6. Improved Lubrication (oil analysis, cleanliness, storage etc)7. Balancing & Design

* Waiting for instructions ______min.

* Looking for supervisors for the next job ______min.

* Planning job ______min.

* Trips for material, tools, manpower ______min.

* Waiting on other trades ______min.

* Waiting for operations to release equipment ______min.

* Research for technical documentation ______min.

* Late starts / Early quits ______min.

* Personal ______min.

* Travel Time ______min.

* 480 minutes per day Total ______min.

Fill in Blanks: Planning & Scheduling Optimizes Time!

PLANNED REPAIR UNPLANNED REPAIR Comments

work order 37309 work order 44699

Price of Component $124,000.00 Price of Component $189,755.00 Repair and Return vs. Exchange cost

Additional repair cost $0.00 Additional repair cost $32,555.70 Additional damage from failure

Hot Shots 0 Hot Shots 3

Cost Of Hotshots 0 Cost Of Hotshots $750.00R&R Gearcase -Labor Hrs 68.5

R&R Gearcase - Labor Hrs 101.5

Maint Labor Cost $1,678.25 Maint Labor Cost $2,486.75

Down Time 0 Down Time 4.58 hrs Lost Production to swap out miners

Cost of Down Time $0.00 Cost Of Down Time $85,091.82

Total Cost of Repair $125,678.25 Total Cost of Repair $310,639.27

Exercise Definitions

• What is Planning?• What is Scheduling?

Planning – What, Why, Where, & How

Identification and documentationof work to be done including:

• Symptom description Initiating Work• Job duration & Job Work Steps• Cost Estimate for Job• Physical and environmental constraints• Lock Out Tag Out, Safety precautions, Permits• Resource Requirements

•People•Skills•Lifting equipment, tools, parts, material

• Impact on Production

Scheduling – When & Who

Identification and Documentationof:

•When Work Will Be Done• Who Will Do It• How Much Time Is Required

Work Request and Priority Guidelines

Priority Example of Failure or Incident Maximal time in backlog

Is the job necessary to do? Yes No On Hold

1 Immediate safety risk Immediate risk of environmental damage Immediate risk of quality losses. Critical equipment down Short failure developoing period

Immediately. Will break other less important ongoing work.

2 Critical equipment is running at reduced speed Critical equipment is running in manual mode Manageable safety risk PM activity Mandatory inspections Failure developing more than 1 week

1 day - 1 week

3 Critical equipment running on spare equipment Failures that need correction Spare equipment out of function Leaks Failure development more than 1 month

1 week – 1 month

4 Improvement work - expense. Improvement work - capital

> 1 month

Find the RightPeople

To Fix Prblm.

Find Parts andTools Repair

Down TimeUp Time

Find the RightPeople

To Fix Prblm.

Find Parts and

Repair

TestAndStart

INSPECTION

PLAN, SCHEDULE

RepairTestAndStart

Operate To Break Down

Only Plan

Inspect, Plan,Schedule

TestAndStart

Scheduled Shut Down

Inspect/Problem Found

Plan, Schedule

Execute

Coordinate Production and Maintenance Plans.Utilize all scheduled and Unscheduled Shut Downs

Collecting Failures for Shutdown

= Inspection Cut off time

•Equipment Number and Equipment Name•Bill of Materials•Inventory Record Accuracy (IRA)•Work Order History•Condition Monitoring History•Standard Job Plans

Technical Database & Spare Parts

Your Store Room?

Root Cause Failure Analysis

Root Cause Problem Elimination

Record and Analyze

Morning meeting: Motor tripped out causing production loss!

Maintenance Operations

Mechanical E / I

Electrical Instrumentation

Root Cause Problem Elimination – is not

Results Oriented Reliability and Maintenance

Most OrganizationsKNOW

What to do

Best OrganizationsDo it.

Do Work

Even with good skills, people can not be more productive than the system they work in allows them to be.

People’s performance is often limited -not so often by their skills - but more often by the system they work in.

Reliability and Maintenance Improvement Process

It is the responsibility ofMANAGEMENT

to develop, institute and continuously improve systems and

procedures.

PRODUCTIVE or NOT?

Busy people are not necessary PRODUCTIVE

PRODUCTIVE people are busy with the Right Thing.

- Maintenance Crafts People?- Spare Parts Management?- Project Engineers?- Maintenance Managers?- Operation Managers?

You do not get what you ask for.You get what you recognize.

How do you recognize (reward) work done by?

Recognition

Designate some of your resources to PM

Management team

Supervisor

Front Line Supervisor

We have created lubrication standards, alignment standards,

and inspection routes,But they aren’t used in the plant

5% creating documentation95% get people to use it

Many knows howBest performers do it

Engineers

Workforce

Workload?

“The Mountain” – Management team

$100$102

$79.00

313,893

299,000292,000281,209

347,085

0 2 5 8 11

185,000

235,000

285,000

335,000

385,000

Reactive- Run to failure- Fix when broke- Very unpredictable

Preventive Maintenance done at predetermined intervals to reduce likelihood of failure

Predictive Measured and monitored against standards i.e. - vib. analysis - thermography - tribology - ultrasonic

Condition Based Know equipment condition Focus on corrective actions Optimize economic life of equipment, tanks, vessels Information integration

Reliability Centered Optimize all maintenance, engineering, and operational techniques to meet predetermined equipment reliability goals and performance standards

Production Tons

Maintenance Cost per Ton

Manufacturing Reliability Evolution at Irving Pulp and PaperManufacturing Reliability Evolution at Irving Pulp and Paper

Results Oriented

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Selling Maintenance to Management

Reliability

Revenuefrom sales

-VariableCosts

Contribution

FixedCosts

- Results

•Sold and deliveredQuality Production

Volumex

•Raw Material•Energy•Media

•Contractors•Maintenance material?

•Salaries•Financial costs

•Depreciation•Rent/leasing

Revenue from sales$ 300.000,000

-Variable Costs$ 190,000,000

Contribution$ 110,000,000

Fixed Costs $ 92,000,000

-Operating

Results$ 18,000,000

•88% Overall Production Reliability

•500,000 tons/yearX $ 600/ton

•Depreciation•Rent/leasing$92,000,000

Revenuefrom sales

$300,000,000

-VariableCosts

$190,000,000

Contribution$110,000,000

FixedCosts

$92,000,000

-Operating

Results$18,000,000

/LiquidAssets

FixedAssets

+Total

Assets

ReturnOn Assets•Cash

•Account Receivable•Finished goods

•Buildings•Equipment•Material •Product in Process

Revenuefrom sales

$300,000,000

-VariableCosts

$190,000,000

FixedCosts

$92,000,000

-Operating

Results$18,000,000

/LiquidAssets

75,000,000

FixedAssets

280,000,000

+Total

Assets355,000,000

ReturnOn Assets

5.1%•Cash•Account Receivable•Finished goods

Revenue from sales$ 320,500,000

-Variable Costs$ 200,250,000

Fixed Costs $ 92,000,000

-Operating

Results$ 28,250,000

•94% Overall Production Reliability

•Depreciation•Rent/leasing$19,000,000

Maintenance costs reduced from $45 to $40/ton

Increase Reliability 6% from 88% to 94%

Revenuefrom sales

$320,500,000-

VariableCosts

$ 200,250,000

FixedCosts

$92,000,000

-Operating

Results$28,250,000

/Liquid Assets$ 75,000,000

Fixed Assets$ 280,000,000

+Total Assets$355,000,000

ReturnOn Assets

8.0%•Cash•Account Receivable - Debt•Finished goods

Increase Reliability 6% - ROI

Revenuefrom sales

$352,440,000

-VariableCosts

$200,250,000

FixedCosts

$92,000,000

-Operating

Results$60,190,000

/Liquid Assets$ 75,000,000

Fixed Assets$ 280,000,000

+Total Assets$355,000,000

ReturnOn Assets

17.0%•Cash•Account Receivable - Debt•Finished goods

Market price Increases 10% AND 6 % Reliability

Accounting

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