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Asset and Maintenance Management Strategy for Data-centers KPN B. Stoker June 2009

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Thesis Benjamin Stoker

Asset and Maintenance Management

Strategy for Data-centers KPN

B. Stoker June 2009

Thesis Benjamin Stoker ii

Asset and Maintenance Management

Strategy for data-centers KPN

THESIS REPORT Author : B. Stoker Submission Date : 2 June 2009

This report is submitted in partial fulfillment of the requirements for the

degree of Master of Engineering in Maintenance & Asset Management at the Hogeschool Utrecht, and the Master of Science in Asset Management

at the Robert Gordon University, Aberdeen.

Thesis Benjamin Stoker iii

Declaration This thesis is submitted to The Hogeschool Utrecht in accordance with the requirements of the degree of Master of Engineering at the faculty of natural Science & Technology of the Hogeschool Utrecht, and The Robert Gordon University in accordance with the degree of Master of Science in Asset Management in the school of engineering. I confirm that the material presented in this report is my own work. Where this is not the case, the source of material has been acknowledged. Student name B. Stoker Signed ……………………… Date 2 June 2009

Thesis Benjamin Stoker iv

Project Declaration

Mr B. Stoker is a matriculated student of The Hogeschool Utrecht, for the degree of MEng in Maintenance & Asset Management, and a student of The Robert Gorden University studying in distance mode for the degree of MSc in Asset management. A substantial part of the requirements of this degree is the completion of a project. I. B. Stoker, submitted a project topic close related to the business of his employer KPN. I. P.C. van Bochove, confirm that he project work undertaken by Mr. B. Stoker, on Asset and Maintenance Management Strategy for Data-centers KPN was performed with my knowledge. Signed ……………. Position in company Manager Asset & Maintenance Management Date 2 June 2009

Thesis Benjamin Stoker v

Abstract

KPN is themselves at an orienting stage how to manage their Asset and Maintenance Management, when they are entering the new world of multimedia. Entering this new world implies that the focus on core business is necessary to be decisive and innovative to handle the competition in the world of the multimedia. To survive and win the competition, it is important that a well-considered decision is taken which position and roll Asset and Maintenance Management takes in this new world.

Question is which type of contract for building and maintenance management of technical installations is most suitable for the KPN organization, and in specific for data centres. Furthermore, which conditions must be embedded to satisfy by means of which principles, methods and methodologies a suppliers contract must have to secure the interests and with respect to the primary process of KPN. Origin of the problem definition is that the maintenance management of the technical installations is outsourced to contract partners, and the appointments, specifications of the technically functions are not proper described. In the Asset and Maintenance Management segment are five known well known (Dutch) contract types, in which manner of managing building and maintaining of installations been fixed.

Determined must be which type of contract is most appropriate and suitable to the KPN organization and interests with respect to the primary process of KPN. The contract type must be weighted and substantive examined on their contents and merit, and if it is related to the primary process of KPN. By means of the outcomes can be determined from which principles; methods and methodologies the contract type must contain with as main point the primary process of KPN.

Summary: In which type of contract are Asset and Maintenance Management strategies embedded, in agreement with the primary process of KPN where the KPN policy condition is creative with respect to the highest possible (R) Reliability, (A) Availability, (M) Maintainability and (S) Safety.

Furthermore, this report provides; - A paradigm of Asset & Maintenance Management. - A tool to qualify Asset and Maintenance Management contracts. - A tool to give direction to design Maintenance Management Contracts. - A tool to manage maintenance contracts, by Critical Performance

Indicators and Service Level Agreements.

Thesis Benjamin Stoker vi

Dedication

To my father Kors Stoker. Benjamin Stoker De Bilt June 2009

Thesis Benjamin Stoker vii

Acknowledgement

I am grateful to my Supervisors, , Ir. T. Zaal of the Hogeschool Utrecht, C. van Rijn and G. Kidd of the Robert Gordon University for their guidance and help. Although the study wasn’t sponsored, I am grateful for the support and reflexion of my manager C. van Bochove and the AURA manager Bram Baan. I could not have fulfilled this study without the support of my wife Josja and my little Jet. There are no words to express how much they helped me. Thanks to my motivator, although we can’t share the satisfaction. Thanks to my conscience Ruud, more than once he stimulates me to carry on. It was more than an interesting study. The study contributed to my knowledge and skills. Jan Stoker De Bilt 2009

Thesis Benjamin Stoker viii

Cover i

Declaration iv Project declaration v Abstract vi Dedication vii

List of figures viii Acknowledgement ix Table of content x List of figures xi List of tables xii Nomenclature xiii

1 Introduction 1

1.1 Background 1 1.2 Problem definition and objectives 3 1.3 The deliveries in a production perspective 4

2 The research concept and approach 5

2.1 The empirical research type 5 2.2 The research domain 5 2.3 The research design 6 2.4 The research process 7

3 The results of the research 8

3.1 The results of the interviews 8 3.2 Design of the theory 8 3.3 Deduce the theory 9 3.4 Testing the theory 14 3.5 Interpretation of the theory 14 3.6 Feedback towards the interviews and theory 15 3.7 The best fitting contract type 15 3.8 Putting it all together 16

4 Put in operation the research results. 17

4.1 The eight aspects of a maintenance management contract 17

Thesis Benjamin Stoker ix

4.2 The Critical Performance Indicators & Service Level Agreements 18 4.3 The implementation plan 19

5 Conclusions and recommendations 20

5.1 Conclusion 20 5.2 Benefits 21 5.3 Recommendation 21

6 Appendix 1: The research concept and approach 22

6.1 Deduction 23 6.2 Induction 25 6.3 Combining qualitative and quantitative research types 27 6.4 The research concept 28 6.5 The research process in practice 30

7 Appendix 2: The results of phase one “Interview and deduce”. 41

7.1 Procedure step 3: Categorizing the results of the interviews. 41 7.2 Procedure step 4: Collecting the data and deduce in conclusions and make the useable for phase two. 47

8 Appendix 3 : The results of phase two “Theorize and Conceptualize” 49

8.1 Creating a theory 49 8.2 Conclusion 69

9 Appendix 4: Results of phase 3 “Interpretation and Apply“ 70

9.1 Design of the ideal maintenance management contract 70 9.2 The CPI’s and SLA’s further defined 98 9.3 The implementation plan 102 9.4 Feedback the theory of the deductive phase 104 9.5 Feedback to the inductive phase 104

10 Appendix 5: Validation of contract types. 105

10.1 Combine literaturere with the contract types in practice. 105 10.2 Defining the contract types 106 10.3 Summary contract type 107 10.4 The best fit 107

11 Appendix 6: Reverences 108

Thesis Benjamin Stoker x

List of figures

Figure 1.1 Survey telephone locations 1 Figure 1.2 Categories of locations 1 Figure 1.3 Basic principal of cooling and power 2 Figure 1.4 Control room KPN network 2 Figure 1.5 Mindmap problem definition 3 Figure 1.6 Basic principal of cooling and power 4 Figure 2.1 The research domain 5 Figure 2.2 The research design 6 Figure 2.3 The research procedure 7 Figure 3.1 The system approach of the eight aspects 9 Figure 3.2 The AMMIC model 11 Figure 3.3 The contract types 16 Figure 3.4 Simplification of the AMMIC model 20 Figure 3.5 Benefits of the AMMIC approach 21 Appendix Figure A1.1 The empirical circle 22 Figure A1.2 Deduction research design 23 Figure A1.3 Inductive research design 25 Figure A1.4 Combined research design 27 Figure A1.5 Executed research process 29 Figure A1.6 Combined research process 36 Figure A1.7 Control variables 37 Figure A3.1 The system approach (basic) of the eight aspects 54 Figure A3.2 The looping technique of the system approach 54 Figure A3.3 The system approach of the eight aspects 55 Figure A3.4 The AMMIC model 59 Figure A4.1 Example of a “house of quality” 70 Figure A4.2 The QFD of the annual report KPN 2008 72 Figure A4.3 The functional decomposition of cooling and power system 74 Figure A4.4 Interface cooling system 76 Figure A4.5 Breakdown interface cooling system 76 Figure A4.6 Functional breakdown power system 77 Figure A4.7 Corrective maintenance cycle 80 Figure A4.8 The PRINCE2 approach in time 103 Figure A5.1 Abstract of the contract types 107

Thesis Benjamin Stoker xi

List of tables

Table 1.1 Example questionnaire AMMIC scan 12 Table 1.2 Example results AMMIC scan 13 Table 1.3 Results AURA AMMIC scan 14 Table 1.4 CPI and SLA structure 19 Appendix Table A3.1 Results questionnaires AURA scan 60 Table A3.2 Spider results AURA scan 61 Table A4.1 Validity check questionnaire direction 1 73 Table A4.2 Validity check questionnaire direction 2 85 Table A4.3 Validity check questionnaire direction 3 88 Table A4.4 Validity check questionnaire direction 4 89 Table A4.5 Validity check questionnaire direction 5 91 Table A4.6 Validity check questionnaire direction 6 92 Table A4.7 Validity check questionnaire direction 7 95 Table A4.8 Validity check questionnaire direction 8 97 Table A4.9 CPI and SLA structure 98

Thesis Benjamin Stoker xii

Nomenclature

A AURA Amsterdam, Utrecht, Rotterdam, Arhem

ALARP As Low As Reasonably Practicable A&MM Asset & Maintenance management AMMIC Asset& Maintenance management Improvement Cycle ADT Administrative Delay Time

B BCM Business centred Maintenance C CPI Critical Performance Indicator

CM Corrective Maintenance CAPEX Capital Expenditures CDM Condition Directed Maintenance COR Corrective Maintenance Cv Condition number

E ERP Enterprise Resource Program F FDM Failure Directed Maintenance

FTA Function Tree Analyses FMEA Failure Mode and Effect Analyses

H HAZOP Hazard and Operability study I ISC Integrated Service Contract K KPN Koninlijke Posterijen Nederland (Dutch Telecom provider) L LDT Logistic Delay Time M MTBF Mean Time Between Failure

MTTF Mean Time To Failure MACMT Median Active Corrective Maintenance Time MTTR Mean Time To Repair MTCM Mean Time Corrective Maintenance MCMT Mean Corrective Maintenance Time MTBM Mean Time Between Maintenance MTBR Mean Time Between Replacements

O OEE Overall Equipment Effectiveness

OPEX Operational Expenditures P PDM Predictive Based Maintenance Q QFD Quality function deployment R RAMS Reliability, Availability, Maintainability and Safety

R&W Regel & Wetgeving RCM Reliability Centred Maintenance RPN Risk Priority Number RBI Risk Based Inspection

S SLA Service Level Agreement

Thesis Benjamin Stoker xiii

T TDM Time Directive Maintenance

TPM Total Productive Maintenance TQM Total Quality Maintenance TSM Technical System management

V VDM Value Driven Maintenance W WLC Whole Life Costing

Thesis Benjamin Stoker 1

1 Introduction The world of the ICT business is an aggressive world, dominated by fast changing techniques and also fast changing visions and perceptions. KPN is entering the new digital world of multimedia, and is orientating how they will step into that world. In their strategy “Back to growth”, all known concepts of the company must be revised to make the company ready to survive and win the competition.

1.1 Background KPN N&S CAPAC (Network and Services Capacity) is responsible for the continuity of the primarily company process. The primarily company process of the KPN is (after making profit) delivering the public services the digital communication

platforms in the Netherlands. N&S CAPAC is delivering housing and technical services. In total there are 1.500 technical locations, on strategically places in the Netherlands and the digital network connects all the location to each other. This distribution system is responsible for all the data communication and transport in the Netherlands. This means that all the e-mail, (mobile) telephone communication and internet communication is transported in the digital network. Non availability of the network is catastrophically for the public services, the financial,-and the commercial world. Part of the Asset & Maintenance Management is to control real time the temperature conditions, and power supply. There are in total 1.500 locations in control checked on their performance. If there are defects in power supplies or to high deviations in air

temperature, the maintenance supplier will be activated to repair or to prevent calamities. The 1.500 locations can be classified and rank in order of their place in the network. After ranking, there are six types of locations. Those locations are:

1. AURA 2. Cyber Centres 3. aBack-bone 4. Metro Core 5. Metro Bridge 6. Metro Access

In this configuration it means that if there is a non availability in a AURA location, the consequences are national catastrophic. In contrast when a local Metro Access location is going down, there are the same problems as mentioned but only local in terms of a small village. To prevent those kinds of

Figure 1.1 Survey telephone locations

Third Party Serv. (Ca. 40loc) ????

Third Party Serv. (Ca. 40loc) ????

HousingThird Party Serv. (Ca. 40loc) ????

Locaties en technische gebouwen

Doelarchitectuur ALL-IP maximaal 158 locaties met:- 35 bestaande gebouwen- ca 110 nieuwbouw / aangepaste gebouwen- ca 10 gebouwen nog ter discussie

Metro Bridgelocaties:

minimaliseren

Metro Access28.000

Metro Bridge700 – 1.200

Metro Core130

Backbone2 x 12

AURA4

Cybercentra>=2

Third Party Serv. (Ca. 40loc) ????

Third Party Serv. (Ca. 40loc) ????

HousingThird Party Serv. (Ca. 40loc) ????

Locaties en technische gebouwen

Doelarchitectuur ALL-IP maximaal 158 locaties met:- 35 bestaande gebouwen- ca 110 nieuwbouw / aangepaste gebouwen- ca 10 gebouwen nog ter discussie

Metro Bridgelocaties:

minimaliseren

Metro Access28.000

Metro Bridge700 – 1.200

Metro Core130

Backbone2 x 12

AURA4

Cybercentra>=2

Figure 1.2 Categories of locations

Thesis Benjamin Stoker 2

problems, there are several backup scenarios. In this case are the locations each other back-up location in the network structure. In the situation when a location is going down (by no power or cooling so the digital net work is not available because the server cannot function), another (similar) location in the network structure will take over the function. In this configuration, the network has a tremendous reliability and availability. An important aspect in the network system, are the power and cooling systems which provide in electrical energy and cooled air. The data and telecommunication

equipment are nowadays “servers”. Those servers are the elements that need the cooling and electrical power, to for fill their function. It also means that those servers are complete dependent in continuity of the power and cooling supply. In the figure 1.3 left side, is the principal

configuration represented of a power and cooling system. In this system, there are three electrical back-up systems and one cooling back-up system. The mentioned systems must be maintained to keep them in the right condition, and state of performance, so they can for-fill their function towards the data and telecommunication equipment. To control the technical systems of al the locations, all the operational alarms and dysfunctions are collected to a single control room. In the figure beneath, the control room of KPN is represented. About 15.000 system

calls a day are “soundly” solved. Another consideration is the fast changing techniques of the servers. Only a decade ago, the heat dissipation per square meter was less than 350 W. Nowadays the heat dissipation is about 2.000 W/M2. This increasing of heating dissipation per square meter is caused by the increasing functionality of the blade servers and their capacity. A decade ago

the conventional telephone equipment needs 500 M2 of data room to fulfil the function. Nowadays, there are a few square meters needed for the same functionality with a higher performance. Those improvement steps in the data and telecom industry have several consequences. The most dominant consequences are;

1. The heat dissipation per square meter is increasing.

~ 48 V DC

230 V AC

Power

Cooling

City-Cooling (Extern)

Cooling (Intern)

No-Break DynamicIntern

NSA PassiveIntern

ReCicle Unit

Power SupplyExtern Batteries

No-Break PassiveIntern

Power SupplyExtern

Figure 1.3 Basic principal of cooling and power

Figure 1.4 Control room KPN network

Thesis Benjamin Stoker 3

2. The unused square meter(s) data room isn’t used any more and redundant. 3. The temperature rate in a time perspective is increasing. 4. The power needed for the cooling production is extremely increasing. 5. The capacity of the resources is below the needed capacity.

Al those consequences has their influence on the nowadays traditional maintenance management on the KPN assets and power and cooling installation. The combination of the aggressive market, the changing telephone (data) equipment, the changing climate and electrical specifications and the changing function of the assets make it clearly that the concept of Asset & Maintenance Management for the ICT segment and especially for the KPN data centres must be reviewed and revised.

1.2 Problem definition and objectives Regarding paragraph 1.1 there are several objectives to determine. These objectives must be first considered and solved, before the problem definition can be handled. As already described in the introduction, the problem definition is formulated as;

Abstract; In which type of contract are Asset and Maintenance Management strategies embedded, in agreement with the primary process of KPN where the KPN policy condition is creative with respect to the highest possible (R) Reliability, (A) Availability, (M) Maintainability and (S) Safety.

In the context of the problem definition, the objectives to consider are.

1. A model that embraces Asset & Maintenance Management. 2. A referable concept that qualifies and quantifies Asset & Maintenance

Management. 3. Clear definitions of contract types. 4. A technical translation of the company’s strategy. 5. The relation and culture of the customer and supplier organization. 6. An inventory of the fundamentals to create CPI’s and SLA’s. 7. A Road-map to upgrade contract types in an abstract level.

When the objectives are defined, the problem definition can be considered and defined. The aim of the research project is not to describe and define a maintenance

Figure 1.5 Mindmap problem definition

Thesis Benjamin Stoker 4

management contract in detail for a specific data center, but achieve a generic method or approach which it made it possible to develop the ideal maintenance management contract for data centers.

1.3 The deliveries in a production perspective

In the abstract are the technical specifications named with respect to the highest (R) Reliability, (A) Availability, (M) Maintainability and (S) Safety. In this context are meant the technically functions which are a precondition to let the data,-and telecom equipment perform. To bring the whole concept in the right perspective, it is important to consider the precondition created by the technically functions as an industrial process. To consider the precondition of the technically function as an industrial process the mindset is changing into deliveries per unit in a time perspective, where the delivered units are specified in quantity and quality. With the approach to consider creating the preconditions with the technical functions as an industrial process implies that numerous of concepts and approaches that are used in this segment, can be applied and bring in practice. In figure 1.6 can be identifying the two dominating technical functions to realize the preconditions. The two dominating technically functions are cooling and power, where it is the objective to deliver the “units” of cooling and power with the highest quality, quantity and continuity. With the mindset and consideration that the power and cooling supply are actual production units, it creates the opportunity to apply well-known industrial methods, methodologies and techniques to produce the units of cooling and power for the lowest cost within agreed specifications. With the methods, methodologies and techniques are, for example, meant OEE (Overall Equipment Effectiveness). In the production industry is this technique frequently used to qualify the performance of a system, to identify or determine the “hidden-factory”. This technique can also been applied by the production of cooled air; when the production of cooled air is not optimal it will cost a few hundred thousands of euro’s a year more than predicted.

~ 48 V DC

230 V AC

Power

Cooling

City-Cooling (Extern)

Cooling (Intern)

No-Break DynamicIntern

NSA PassiveIntern

ReCicle Unit

Power SupplyExtern Batteries

No-Break PassiveIntern

Power SupplyExtern

Figure 1.6 Basic principal of cooling and power

Thesis Benjamin Stoker 5

2 The research concept and approach To perform a reliable empirical cycle in the context of the research project it is important to define the type of empirical cycle and the research process. In this chapter are the empirical cycle and the research process described.

2.1 The empirical research type The empirical research type can be classified as an exploration research type. This classification is embedded by the fact that there is no other comparative material was found specific for datacenters what can be used to fill in the problem definition.

2.2 The research domain The research domain is the technical service's domain. The technical services of the Asset & Maintenance Management domain can be executed by an own organization or by contractors. The KPN corporate policy and characterization are that maintenance management of assets is outsourced and embedded in contracts with professional organizations to fill in the activities. For the KPN organization are executing maintenance management tasks no core business. The maintenance management activities can be described as all the activities to maintain the assets, so the primarily process and objectives of the KPN can be achieved. In practice are the activities preventive and corrective maintenance generated by the power and cooling installations which providing the requirements to let the data and telecom equipment do their function within their specifications. Outsourcing of maintenance management tasks is moving the in-house activities to suppliers. Outsourcing can be implemented at five identifiable levels, as shown in figure 2.1. The range from supplying labour only thoroughly total responsibility for labour, work planning and scheduling, spare parts ordering and custody ownerships:

1. Specialized tasks 2. Labor and work process management, planning and scheduling 3. Parts management-ordering, ownership, and custody 4. Process redevelopment and implementation 5. Asset ownership with guarantee availability

Pressures to reduce cost are resulting in more outsourcing

Asset ownership

Proces Redevelopment and implementation

Spare parts Management, Replenishment and Custody

Work proces Management, Planning and Scheduling

Specialized Sevices(Pump, Motor, Valve repairs)

Technology(PM, CBM/PdM, RCM, TPM, Program

consulting and services)Labour

Figure 2.1 The research domain

Thesis Benjamin Stoker 6

2.3 The research design The chosen empirical cycle is a combined research method of induction and deduction. With the inductive approach have the researcher as starting point collecting information by studding literature to define the key-questions and issues to get more knowledge of the research domain. The fundamental attitude of the researcher in the inductive stage can be described as a non-expert of the maintenance management domain, and makes it possible for him consider the situation objectively. To get information about the reality the induction stage of observation is executed with interviews. The interviews and discussions are made with representative companies (internal and external KPN) and officials of those companies. With the results of the interviews can the researcher made up his mind and describe the real time situation. With this information is the research domain marked, and there be formulated a theory based on a specific literature study. At this moment, the fundamental attitude of the researcher is changing into an expert of the maintenance management business. With a specific literature study, the researcher defines a theory about the problem definition. This theory is made operational in the deductive stage as a hypothesis underpinned with a paradigm that represents the hypotheses. Whit the hypotheses which is made operational by a paradigm, the theory can be tested within a theoretical framework based on literature and mathematical designs. The testing result ends in an interpretation of the hypotheses and paradigm which can be reflected in a feedback to the theory of the deductive stage and the respondents of the interviews in the inductive stage. The final result is an objective maintenance management concept for data centers, in the situation that the maintenance management activities are outsourced and a responsibility of the contractor. Special attention (and the most important) question is what has to be defined, specified and described in a maintenance management contract for data centers.

Theory

Induction

Observation

Deduction

Testing

Interpertation

Figure 2.2 The research design

Thesis Benjamin Stoker 7

2.4 The research process Regarding the research design format, the research process can be divided into three process stages. These stages are:

1. Observation and deduce. 2. Theorize and conceptualize. 3. Inter operation and apply the knowledge.

These three stages (or phases) are appointed in the figure 2.3 alongside, so that the figure can be transformed into phased based figure where the process steps can be defined as represented in figure 2.3. This phasing result in the next process steps:

1. Phase 1 Gathering information of the problem definition by interview the reality in practice

2. Phase 2 Defining a theory and a conceptual model with the information obtained of phase 1

3. Phase 3 With the conceptual model can the deductive phase conducted and inter operated towards the theory (conceptual model) and the observations.

With the phasing it is possible to define the approach of each individual process step, which is individual described in detail in appendix 1.

Phase 2.0 Theory

Phase 1.0Induction

Phase 1.1Intervieuw

Phase 2.1 Deduction

Phase 2.2Testing

Phase 3.0Interpertation

Figure 2.3 The research procedure

Thesis Benjamin Stoker 8

3 The results of the research

After defining the research approach, objectives, process steps and process stages the actually research can be started up. In the next paragraphs are the results described, which are represented in appendix 2.

3.1 The results of the interviews

The objective of the interviews of phase 1.1 in the research process is to create an inventory of what are by experience or profession, the facts and applications of maintenance management contracts by data centers. To get representative and objective results, are several segments of the maintenance management business consulted in an open interview. The respondents are working in the segments:

- Purchasing of a maintenance contract (customer) - Contract Management of maintenance contract (customer) - Independent advisor of maintenance management - Contractor where the core business is maintenance management.

The results of the interviews are defined in the next five statements; 1. There are no standards or codes that describe the relation of the customer or

contractor in maintenance contracts. 2. Which basics aspect a maintenance contract has to contain as a minimum, is

not defined in standards or codes. 3. Although there is a perception of contract typologies in the maintenance world,

still there are a lot of miscommunication about the typologies of maintenance contracts, the difference between them and their function.

4. In maintenance contracts are no methodologies used or recognizable. In some cases are methods used but basically are maintenance contracts based on primarily techniques.

5. There are no methods, standards or codes to test maintenance contracts on their quality.

The reliability and availability of these statements are justified by initial reliability and validity check of this process as described in appendix 2. With the results of the interviews, it is obviously that for the maintenance management of data centers an approach and a solution for the maintenance management in the total outsourced situation has to be designed and developed. This result implies that the input and information for the next stage of the research process are minimal, and must be the design of the theory been found in the basics of maintenance management.

3.2 Design of the theory

With the results of the observation phase can be designed a theory. This theory is based on expertise of the researcher as an expert of the maintenance management domain and the accompanying literature. The theory is defined in the next quotation;

The theory can be described and defined that the concept of Asset & Maintenance Management is fundamental build up of eight aspects, and when all the eight aspects together performing theoretical optimal is the maximum level of asset & maintenance management achieved.

Thesis Benjamin Stoker 9

The eights aspects are that are named in the theory are:

1. The company strategy as a system in a time perspective. 2. The technical function as part of the system. 3. The impact by failure of a function or reaching a functional level. 4. The maintenance concept of the function. 5. The applied maintenance method on the function. 6. The efficiency of the functions. 7. The financial considerations of the asset(s) in a time perspective. 8. The organization that manages the asset(s).

The validity and reliability are based on triangulation of the literature study of each aspect. In appendix 2 is the underpinning of the validity and reliability described.

3.3 Deduce the theory

Deducing the theory implies according to the research process that the theory will be translated in a conceptual model and made operational. In figure 3.1 is the theory transformed in a conceptual model, and can be named as the AMMIC model (Asset & Maintenance Management Improvement Cycle). The conceptual model visualizes the theory and connects the eight aspects that represent the body of thoughts of Asset & Maintenance Management. The connection and relation of the eight aspects are based on the system approach. The system approach makes it possible to identify the connection between the aspects and with the looping technique it is possible to define the influences on the aspect. The influences can reinforce the aspects to make them act more profitable or less profitable when the aspects are against each other. This is an important conclusion in the context of maintenance management, because maintenance management can only function profitable when the system as a whole is in balance. Only when the system of maintenance management is in balance, the corporate level can take advantage of the system where is its depending of. For the validity and reliability of deduction of the theory is revered to appendix 2.

OptimalFunctioning

Assets

CorporateProfit

2.Functions

3.ImpactFailure

Function

4.Maintenance Concept

5.Maintenance Methods

6.Efficiency

7.Financial

8.Organisation

1.CorporateStrategy

R

S

S

S S

SS

S

S

S

S

S

S

S

S

S

S

S

S

S

S

B

B

Figure 3.1 The system approach of the eight aspects

Thesis Benjamin Stoker 10

To bring in operation the eight aspects as a whole, it is necessary to define propositions of each aspect. This propositions for the eights aspects are formulated in the next assertions;

Proposition 1 If the corporate strategy is adjusting, the technical performance and condition must be adjusted.

Proposition 2 If the reliability getting better, the availability is optimal and maintainability perfect, the products produced by the technically functions are at their maximum.

Proposition 3 If the performance of the maintenance organization is decreasing, the impact of failures is increasing. Proposition 4 If the maintenance concept F.D.M (Failure Directed Maintenance) is introduced, there are no calamities because they are allowed.

Proposition 5 If the maintenance method C.M. (Corrective Maintenance) is perfectly managed, the total costs of ownership will be decreasing.

Proposition 6 If the OEE (Overall Equipment Efficiency) is 100%, the energy balance is even 100%. Proposition 7 If the financial position of the company is devaluating, the investments in assets will be increasing.

Proposition 8 If the organization is questioning driven organized, the OPEX costs are on their optimum.

For the validity and plausibility of the propositions is revered to appendix 2. To complete the transformation of the conceptual model (AMMIC) into to a paradigm it is necessary to express the AMMIC in a more visualized acceptable reproduction. To make the AMMIC more manageable, the model must be simplified and made readable. To make the AMMIC paradigm more manageable and recognizable, are the techniques that an aspect characterized brought in. In the simplified model are the aspects expressed by their techniques and the technique contains the body of thought of Asset & Maintenance Management. In this context, the output must qualify a scaled judgment of the AMMIC process. This process contains the maintenance management activities realized by an own team. Even in the situation that all the services of A&MM is outsourced; the AMMIC model must be able to qualify the concept on a scale of 0 – 100%. As shown in figure 3.2 are the eight aspects represented, and each aspect contains the most common techniques ore concepts. Because the AMMIC contains the body of thoughts, the

Thesis Benjamin Stoker 11

model is spread out in 360o. In the paradigm can be an aspect interpret as a direction. In this context, the AMMIC has eight directions (aspects and variables

together), spread out in eight basic directions. The line of demarcation (system border and demarcation) of the aspect systems is represented with the red line. With the system approach is the connection connected by the system approach. Another important tool which supports qualitative the relations and connections, is the specific software, expressed with the pink line. The specific software must not be confused with the normally used ERP (Enterprise Resource Program) software. This software provides in specific information, which is needed to bring quality in reliability, availability etc analyses. Examples of that software are:

- QFD designer - FME(C)A software - Fault Tree Analyses software - RCM software - Financial software - Reliability engineering programs (SPARC) - Etc.

The second borderline (green line) embraces the aspects, but with the variables and parameters. The green system border line contains the “normal” ERP software. In this perspective, it contains the management information.

Conceptual model (paradigma phase deductive emeperical cycle) of the Asset & Maintenance Management Improvement Circle (AMMIC)

ERPTechnical Specific Software

Direction 1. Company Strategy v. Maintenance

Direction 2. Technically Functions

Direction 3. Impact Analyse

Direction 4. Maintenance Concept

System ApproachQuality Function Deployment

FME(C)AHAZOP

OPEXCAPEX

NEN 2767WLC

RAMSHEFTA

IDEF-0

FDMSGO

TDMTGO

CDMGGO

R&W CBM PDMCOR PM VDM RBI TPM TQM

OEE

Question or SupplyDriven

Direction 7. Financial

Direction 6. System Efficiency

Direction 5. Maintenance Methods

Direction 8. Organisation

Functional

ConditionAssets

Figure 3.2 The AMMIC model

Thesis Benjamin Stoker 12

To use and practice the AMMIC and asses the body of thoughts of Asset & Maintenance Management, the directions of the AMMIC model must be separate quantified and qualified. The quantification per direction and the qualification of al the directions (expressed in a percentage) can be realized with a scan. The scan contains the variables expressed by questions, which are extracted and based on the literature named in appendix 6.

In this situation, each direction has a total score of maximum of 12.5%. The total score (a addition) of the individual directions, qualifies the business unit or contractors. In the figure above is an example how after fill in the form in table 1.1. The total score of the table1.1 is table 1.2, and on a scale of 100% the overall scale is 50.5%. In this situation, there are several goals to improve.

Direction Aspect Question Variable Qualification Max pointDirection 1 Strategy 1 Is the costumers wish translated in aproper QFD 17Direction 1

Strategy2 Is the compagny proces transformed in a system

profile, related towards other aspects and variables 15 17Direction 1 Strategy 3 Are there long term objectives 15 17Direction 1 Strategy 4 Are there simple and agreed objectives 15 17Direction 1

Strategy 5Is there a profound understanding of the competive environment 10 17

Direction 1Strategy 6

Are there KPI's and SLA's omn corporate level, which can be transported in to the maintenance operations. 17

Direction 2 Technically functions 1 Is the reliability defined and agreed 0 17Direction 2 Technically functions 2 Is the avaiability defined and agreed. 10 17Direction 2 Technically functions 3 Is the maintainability defined and agreed 17 17Direction 2 Technically functions

4Are the Safety, Healht and environment isseus defined and agreed 10 17

Direction 2 Technically functions 5 Is there a Function Tree analyse 17Direction 2 Technically functions 6 Are the basis processes noted with I-DEF0 17Direction 3 Impact analyses 1 Is there a HAZOP analyse 50Direction 3 Impact analyses 2 Is there a FME(A) analyse 50 50Direction 4 Maintenace Concept 1 Is there a FDM concept 20 10Direction 4 Maintenace Concept 2 Is there a TDM concept 10Direction 4 Maintenace Concept 3 Is there a CDM concept 25Direction 4 Maintenace Concept 4 Is there a mixture of concept ? 55 55Direction 5 Maintenance Methods 1 Are the RW respected 5 5Direction 5 Maintenance Methods 2 Is the CBM method used 5 5Direction 5 Maintenance Methods 3 Is the PDM method used 5 5Direction 5 Maintenance Methods 4 Is the CORmethod used 5 5Direction 5 Maintenance Methods 5 Is the PM method used 5 5Direction 5 Maintenance Methods 6 Is the VDM method used 5Direction 5 Maintenance Methods 7 Is the RBI method used 5Direction 5 Maintenance Methods 8 Is the BCM method used 5Direction 5 Maintenance Methods 9 Is the TQM method used 5Direction 5 Maintenance Methods 10 Is there a mixture of methods ? 50 50Direction 6 System effcientie 1 Are al the energy flows measured 20 25Direction 6 System effcientie 2 Is the ideal energy flow agreed 25Direction 6 System effcientie 3 Is there a energy equation (balance) 25Direction 6 System effcientie 4 Are the results exported to other directions ? 25Direction 7 Finance 1 Are there compagny rules for interpertaion CAPEX 17Direction 7 Finance 2 Are there compagny rules for interpertaion OPEX 15 17Direction 7 Finance 3 Is the IRR related to the long term vision 17Direction 7 Finance 4 Is the A/P diagram agreed of the NEN 2767 17Direction 7 Finance 5 Is the condition (Cv) agreed 17 17Direction 7 Finance 6 Are WLC rules defined 0 17Direction 8 Organisation 1 Is the organisatio of the contractor Question driven ? 0 17Direction 8 Organisation

2Is the education level up to date by the customer and the contractor. 10 17

Direction 8 Organisation 3 Is the organisation capable for Question driven 5 17Direction 9 Organisation

4Are the KPI's and SLA of the compagny strategy connected with the maintenance organisation of the 15 17

Direction 8 Organisation 5 Is the organisation capble to handle the analyse data 20 17Direction 8 Organisation

6Is the organisation right positioned in the organisation structure 17

Table 1.1 Questionnaire AMMIC scan

Thesis Benjamin Stoker 13

As resumed in the thesis proposal, a scientific founded all- embraced paradigm or model of Asset Management & Maintenance Management (AMMIC) is not available in the present literature. The models that are been discussed or proven in the literature, are mostly specific and concrete aimed towards one aspect of Asset & Maintenance Management like reliability, availability, whole life costing, RCM, TPM etc. To come close to a paradigm that embraces the whole scope of asset and maintenance, the AMMIC provides to enclose all the basic aspects. The purpose of the AMMIC scan is to asses the whole system that embraces the maintenance management of assets, in quality and quantity for operational assets. The validity and reliability of the paradigm are based on the system approaches where the looping technique is used and the next steps are applied;

1. Of every individual aspect is chosen a variable. 2. The chosen individual variable must randomly of character 3. The cause and consequence must be reinforced (S) of character 4. The effect on the consequence must be positive 5. The Looping technique must have all a balanced feedback process

For the complete execution is referred to appendix 2.

AMMIC Scan

0

20

40

60

80

100Direction 1 Strategy

Direction 2 technically Functions

Direction 3 Impact Analyses

Direction 4 maintenace concept

Direction 5 Maintenance Methods

Direction 6 System efficiency

Direction 7 Finance

Direction 8 Organisatie

Table 1.2 Example results AMMIC scan

Thesis Benjamin Stoker 14

3.4 Testing the theory In line with the research procedure must be the theory tested to prove the reliability and validity of the designed approaches. For testing the theory and the approach is a real life data-center assessed with the AMMIC approach. The results of the

AMMIC approach must be a reflection of the reality and confirmed by the contract manager of the customer, the operational management of the data centre and the contractor. The results of the AMMIC scan as represented in table 1.3 gives a lack in the maintenance management contract on several aspects. Remarkable are the results for the directions maintenance concept and methods, with high scores. The test results are recognizable and with the explanation of the lacks in al the directions and the respondents of this assessment confirmed independently the noticed shortcomings. With this approach was a theoretical approach brought in operation and tested in a life situation. The results of the AMMIC scan and the scaling is corresponding what makes the AMMIC approach valid and reliable for this utilization. For the complete execution is referred to appendix 2.

3.5 Interpretation of the theory Now the AMMIC approach is valid and reliable, the AMMIC approach can be used to define the ideal maintenance management contract. The objective as a part of the research process is to define “virtually” the perfect maintenance contract. In this approach are al the individual directions described included their parameters and variables. This process step makes it possible to asses the validity and reliability for each individual direction. If the validity and the reliability are positive can be the results applied as feedback to the theory as part of the deductive phase, and to the respondents of the first interviews as part of the inductive stage.

AURA AMMIC Scan

0

25

50

75

100Direction 1 Strategy

Direction 2 Technically Functions

Direction 3 Impact Analyses

Direction 4 maintenace concept

Direction 5 Maintenance Methods

Direction 6 System efficiency

Direction 7 Finance

Direction 8 Organisatie

Table 1.3 Results AURA AMMIC Scan

Thesis Benjamin Stoker 15

Also can be derived with this assessment the key-issues for the final maintenance contract for data centers, although it must be location independent. This means that for every individual data-centre a new AMMIC assessment has to be executed. The results of the inter operation of the theory are valid and reliable. For the complete execution is referred to appendix 3.

3.6 Feedback towards the interviews and theory Regarding the procedure steps of the research process must be the results of the testing phase being compared with the defined theory in the deductive process step The theory was described as;

The theory can be marked as valid and correct. This pronouncement is based on the description of each direction of the AMMIC approach and the validity check. The description is of each direction of the AMMIC is based on a literature research as described in paragraph 8.1.1.1, and is brought in operation to define for every direction key questions. As well as the feedback towards the theory of the deductive phase, the same procedure step has to be made towards the inductive stage. The procedure steps of the research process must be the results of the testing stage being given back as feedback to the respondents which are interviewed. The feedback contains the results of the inductive stage, so the responsible management can make a well-considered decision to embrace the philosophy, the body of thoughts and the approach of the AMMIC. When the management is convinced of the operational and financial added value of the AMMIC approach are there two important initiatives; at first to set up a change management to execute the implementation plan and describe in juridical terms and language the maintenance management contract.

3.7 The best fitting contract type

To realize the objectives per direction determined with the AMMIC approach with a maximum score on the AMMIC scale, it is necessary to choose the right contract type between customer and supplier which contains by nature the preconditions to realize the objectives. There are six contract types, these contract types are;

1. Volume contract (Dutch translation : Regiecontract) 2. Effort contract (Dutch translation : Inspanningscontract) 3. Performance contract (Dutch translation :Resultaatscontract) 4. Guarantee contract (Dutch translation :Prestatiecontract) 5. ISC (Integrated Service contract) contract (Dutch translation :Lease

Contract) 6. A custom-made job contract specified to the hand of the customers

wish (Dutch translation : Maatwerk contract) With the results AMMIC approach as described in appendix two and three, is the guarantee contract type the best fitting contract type and suitable where the

The theory can be described and defined that the concept of Asset & Maintenance Management is fundamental build up of eight aspects, and when all the eight aspects together performing theoretical optimal is the maximum level of asset & maintenance management achieved.

Thesis Benjamin Stoker 16

preconditions between the customer and supplier can be in described. This type of contract will give the contractor maximum of responsibilities but also the maximum of competence to fill in their profession. Furthermore, the guarantee contract type will fit by the customer because it can be managed by a small demand organization.

Although the guarantee contract is the bets fitting contract type, it demands also specific precautions and requirements like;

1. The organization of the customer as well the contractor a. Skills and education levels b. Hierarchic structure

2. Defined and described requirements a. Agreed and defined CPI”s and SLA’s b. Defined and described financial guidelines c. Defined and described requirements of the technically functions

3. Direct connection with the business-strategy 4. A long term relation with the same customer 5. An implementation plan where the CPI’s and the SLA’s itself, are the goals

and objectives to achieve during the transition phase.

3.8 Putting it all together

With accomplish the research process is found a method and a useful utilization to asses and define a maintenance management contract for datacenters. With the guidelines of the AMMIC method, can be defined what is necessary to describe in a maintenance contract for datacenters and their specific requirements. Furthermore is it possible to asses the progressing in time. The utilization of the AMMIC method defines also CPI’s and SLA’s for the contractor as well for the customer. Also the best fitting contract type and determined is that the guarantee contract type is the best fitting concept.

Own production=

Effort Contract

Directing=

Performance contract

Managen=

Guarantee contract

S-Curve

S-Curve

Shift of responsibilities from the customer tor the contractor

Describing the responsibilities

Strat=

DEMAND

Tactical

Operational

Point of special intrest: Where is going the knowledge domain ?

Integrate=

ISC

S-Curve

Special point of intrest: Where are company wellknown processes

Figure 3.3 The contract types

Thesis Benjamin Stoker 17

4 Put in operation the research results.

With the results of the research process and procedure can be derived the most essential parameters and variables in a maintenance management contract for data-centers. In the next paragraphs are the basic aspects, parameters and variables named to define a framework for the technically output. To asses the quality of a maintenance contract for datacenters must be the maintenance management contract based on the eight aspects. When in a maintenance management contract the structure of the AMMIC method is applied, it is possible to asses and predicts in a time perspective the future results.

4.1 The eight aspects of a maintenance management contract

To define the optimal maintenance management contract for data-centers must be the directions, variables and parameters of the AMMIC been named, described and specified. The objectives of the AMMIC approach describes not the juridical structure of the document or the layout as a whole. The AMMIC approach is a guideline for the technical output as well an assessment tool. Also it is not possible to define and describe specific specifications in the maintenance contract. In a life situation must be defined those specifications during the implementation of the AMMIC approach. The eight directions are;

1. Company strategy versus maintenance management In the maintenance contract must be described the connection of the business strategy on corporate level with the maintenance management of the location. The description must be defined with the QFD method and quarterly updated to identify changes of the corporate strategy.

2. The technically functions To realize the corporate objectives the technically functions have to be defined with a functional decomposition. The requirements of those technically functions must be specified with the next parameters;

- Reliability - Availability - Maintainability - Safety - Health - Environment

Each parameter must be defined of the technical system that is in use. With Function Tree Analyses must identify the top events in the safety context and documented in a IDEF-0 structure.

3. The impact analyses With the four types of the FMEA approach must be described and identified the impact of failing of the technically functions. To identify the hazardous situation must be used the HAZOP approach. The results of the both techniques must be documented and annual reviewed or audited. By replacements or capacity expansions of the technically functions there must FMEA and HAZOP approach must be reconsidered

Thesis Benjamin Stoker 18

4. The maintenance concept A combination of the three types’ of maintenance concepts must be embedded and applied. Based on the impact analyses and demarcated by the specifications of the technically functions, can be determined which maintenance concept must be chosen for every system element.

5. The maintenance methods Based on the defined maintenance concept can be determined the best fitting maintenance method. In the broad spectrum of maintenance concepts must be determined which combination of maintenance methods is the best applicable after defining the maintenance methods. In the result must be documented and adapting by hanging business strategy, identified of the QFD.

6. The System efficiency The performance of the system must be expressed with a OEE number, so that the system effectiveness can be identified. Monthly must be the energy consumption measured and compared with the OEE of the cooling or power process.

7. Finance The financial guidelines of the customer must be embedded and agreed. The financial indicators that influence the business cases must be handing over by the customer, by capacity expansion projects. The replacement of system elements is depending and decided of the NEN 2767. The condition score must be named, embedded and connected with the maintenance concepts and methods.

8. Organization The organization of the contractor must be questioning driven to serve the demand organization of the customer. The education level of the customer as well of the contractor must be described and demonstrable.

When the eight directions are been described in the maintenance management contract for data-centers, are the technically function well founded described and assessable. With this approach is been made the maintenance management flexible and adaptive towards the business strategy.

4.2 The Critical Performance Indicators & Service Level Agreements

To achieve the expected results of a technical system, the performance of a contractor or the performance of a maintenance management contract itself, there must be measured and assessed. To achieve a self-regulating process and self-improved maintenance management, are critical performance indicators with underlying service level agreements necessary. To achieve these process levels can only be reached by structural contract management with long-term vision and a package of indicators of the performance of the contractor as well the system. The performance indicators must be an extension of the eight directions that are been made specific, measurable, available, reliable and time dependent. The schedule in table 1.4 represents the CPI and SLA structure.

Thesis Benjamin Stoker 19

For the CPI ranking and SLA levels is referred to appendix 3.

4.3 The implementation plan To realize a safe and successful transition and achieve the maximal score on the AMMIC scale, it is important to consider the implementation of the AMMIC approach and the guarantee contract type as a project. To manage a project on this scale in a multidisciplinary environment, the transition and implementation had to be executed with the PRINCE2 approach. The benefit of the PRINCE2 usage is the rigid and describing when there are changes in the operations and, but also the pragmatic tools of the project method when necessary. Important for the implementation is the fact the implementation has the executed (the project manager in PRINCE2 terms) by the contract manager who is part of the new future demand organization. Reason for this explicit choice, is the fact the AMMIC already defined the competences and skills of the future “demand maintenance manager of data centers”. The results of the inter operation of the theory are valid and reliable. For the complete execution is referred to appendix three.

Business strategy versus maintenance management

Technicaly functions

Impact analyses

Maintenance concept

Maintenance methods

OEE : System efficiency

Financial

Organisation

CPI 1

CPI 2

CPI 3

CPI 4

CPI 5

CPI 6

CPI 7

CPI 8

CPI description SLA descriptionCPI

1.1 SLA 11.2 SLA 2n. SLA n

2.1 SLA 12.2 SLA 2n. SLA n

3.1 SLA 13.2 SLA 2n. SLA n

4.1 SLA 14.2 SLA 2n. SLA n

5.1 SLA 15.2 SLA 2n. SLA n

6.1 SLA 16.2 SLA 2n. SLA n

7.1 SLA 17.2 SLA 2n. SLA n

8.1 SLA 18.2 SLA 2n. SLA n

Table 1.4 CPI and SLA structure

Thesis Benjamin Stoker 20

5 Conclusions and recommendations

The aim of the thesis proposal was to answer two questions. At first which maintenance management contract type is the most suitable for the datacenters of KPN, and secondly which techniques, methodologies and methods must be embedded or described in the maintenance management contract. With the results of the research project can be determined that the both research questions can be answered and filled in.

5.1 Conclusion As result of the research which contract type for the maintenance management of data centers is the most suitable and fitting, is determined that the “guarantee contract type” the most fitting maintenance contract type is for the KPN-data centers. The guarantee contract extends the corporate strategy by total outsourcing of activities and managed by a small demand organization of the customer. The guarantee contract type makes the contractor responsible for his core business (maintenance management), but also competent to realize his responsibility which has to be described in the maintenance contract. The structure of the maintenance management contract for data centers must be based on the eight aspects (directions) of the AMMIC. These directions are;

1. The maintenance management must be based an extension of the business strategy.

2. The technically function must be defined and specified. 3. The impact analyses of failing technical functions must be determined. 4. The maintenance concept to realize the specifications of the technical

functions. 5. The used maintenance methods to fill in the maintenance concept 6. The system efficiency. 7. The financial framework. 8. The organization

By using all the eight directions in the named order and determine or specify the specification of each direction, are the basics for a contract framework defined and can be described in the maintenance management contract. To assess and qualify the described directions in the maintenance contract, the maintenance contract be tested on his technical merits with the AMMIC questionnaire, where a total score of 100% represents the ideal maintenance management contract. To realize the body of thoughts of the whole concept in practice during the startup period of the contract and during the term of the contract, is it necessary to define a set of CPI’s and SLA’s based on the directions of the AMMIC.

The Asset & Maintenance Management Improvement Circle (AMMIC)

ERPTechnical Specific Software

Direction 1. Company Strategy v. Maintenance

Direction 2. Technically Functions

Direction 3. Impact Analyse

Direction 4. Maintenance Concept

Direction 7. Financial

Direction 6. System

Efficiency Direction 5. Maintenance Methods

Direction 8. Organisation

Functional

ConditionAssets

Figure 3.4 Simplification of the AMMIC model

Thesis Benjamin Stoker 21

5.2 Benefits The side effects of the AMMIC approach are the financial benefits. The AMMIC approach defines the ideal situation of a total balanced maintenance management system. With a maximum score on the AMMIC scale are the costs at a theoretical minimum, so the AMMIC is in this perspective a financial parameter for the eights individual directions. This can be determined when the critical performance indicators are all have their maximum score. At this performance level, the production costs of cooled air and power related to the demanded performance are in financial balance. This situation is represented in figure 3.5 where the increasing performance as a function is represented as well the decreasing costs in a time perspective during the transition period.

5.3 Recommendation 1. Management KPN Now KPN is in an orientating phase how to deal with the maintenance management for data centers in the fast chancing world of the ICT, KPN has to use the AMMIC principals to define the right maintenance management contract that adjusts itself related to the business strategy. A maintenance management contract based on the eight directions implies proper and well-defined CPI’s and SLA’s, which can be managed by an (small) demand organization of the customer and realizes the lowest costs. 2. Implementation manager AMMIC. To make a success of the AMMIC approach it is necessary to use an implementation plan. The implementation plan is crucial in the transition period to reach the maximum quality score on the AMMIC scale and fill in the concept of the guarantee contract. 3. Future of the AMMIC Further research at the possibilities of the AMMIC is necessary to unlock the possibilities towards other segments maintenance management segments. The AMMIC approach has to be testing and modeled in simulation programs.

Maximum score AMMIC Scale

Incr

easi

ng P

erfo

rman

ceD

ecre

asin

of c

osts

Transition period

Figure 3.5 Benefits of the AMMIC approach

Thesis Benjamin Stoker 22

6 Appendix 1: The research concept and approach The world of scientific research is after studying a complex domain. To choose the right research concept and approach for this project, it was necessary to start up a literature research in this domain. For the literature study, the next literature was explored and studied;

1. Business Methodology By A.C.J. de Leeuw.

2. Blending qualitative and quantitative research methods in theses and dissertations T. Murray.

3. The kernel of Methodology By J.Jonker & B.j.w. Pennink

4. Basic principals of Methods and techniques By Baarda & de Goede 5. Research methods for business students

M. Sounders, P. Lewis and A. Thornhill 6. The management of a student research project

By J.A. Sharp, J. Peter and K. Howard 7. Quantitative applications

A. Buijs, Wijbenga & E.T. Thijssen 8. Manual Thesis project V2.1 Master of Engineering Hogeschool Utrecht

J. Oomens 9. Msc Project Handbook Robert Gorden University

M. Amish

As result of the literature study, research can be described as a process to define the reality. This process (defining the reality) is named the empirical cycle and can be realized with induction and deduction shown in figure A1.1. As abstract the empirical cycle can be described as tracing of general assertions (empirical generalizations or laws) from a limited number of private empirical pronouncements. The opposite of induction is deduction, and can be described as deducing of specific pronouncements. The connections between the variables (concepts) are been graphical expressed in models. These concept models express the mutely (causal) connections. Both research approaches have paradigm’s, methodologies, methods and techniques to realize the objective of the research, but are complete different. The empirical cycle of induction and deduction can be performed with quantitative research or with qualitative research. The research types have various differences in the formation of the research, but the research pyramid contains the same subject as the paradigm, methodology, methods and techniques. Even so, both research types demanding a specific and fundamental attitude of the researcher.

Figure A1.1 The empirical circle

Thesis Benjamin Stoker 23

6.1 Deduction The fundamental difference between deduction and induction research is the fundamental attitude of the researcher. With the deductive empirical cycle the fundamental attitude of the researcher is objective, and the researcher will prove the reality with proven or designed theory. Deduction can be realized with the quantitative approach where the researcher is not a part of the empirical cycle. With quantitative approach the researcher is an outsider. The theory is mostly mathematically underpinned so the deductive empirical cycle is reproducible for other researchers. Another characteristic of deduction that there will explain the causal relations between the variables. Furthermore, there is the need that concepts must be put in operation so that the facts can be measured. A brief summary of deductive formation of the paradigm of the research purpose, set-up, and progress leads to the next summary; The paradigm

- Knowledge about the reality can only be become with the eyes of the researcher, what implies for the research purpose;

o The researcher formulates a theory and a conceptual model at the beginning of the reality or project.

o The researcher is an expert of the subject. o The researcher explores with the help of a set of instruments the

reality. o The chosen or designed instrument is the primary source of numeric

data. - The set-up is beforehand defined and the process steps are consecutive

what implies; o There will be worked with relatively closed and structured subjects. o Conscious, punctual and precisely

- For the research process it implies; o The methodology is fixed before exploration any research step. o Existing theory and well-known theoretical understandings must be

gathered and assimilated. o The process phases are successive. o The survey research is directly related with the conceptual model.

Deductive Emperical circle

Researcher test a theory

Researcher test a hyphotesis or researchquestion extracted of the

theory

Researcher uses a instrument to mesure the variables of the

theoryResearcher test a theory

Researcher create concepts or variables (ready for use) extracted of

the theory

Figure A1.2 Deduction research design

Thesis Benjamin Stoker 24

The methodology - The methodology can be split in research afterwards or experimental

research. o The research methodology is based on conclusions afterwards (ex

post facto), and the research can’t interfere. o The research is experimental in conformity with paradigm design, and

the researcher can interfere.

The methods - The methods are concrete and are derived of proven theories underpinned

with statistical analyses. - Case studies are the reference for the subject. A case study can be;

o The ideal situation o A prototype o Other imaginary cases

Research Techniques

- The fingerprint of the quantitative approach is the generic data information. - The produced data must be valid and consistent - Examples for the data sources are;

o Annual reports o Monthly business reports o Observations o Survey

Recapitulation The empirical cycle of deduction is concrete and based on well-known theorems and scientifically laws. An approach with deduction requires a conceptual model and founded on proven (and accepted) concepts and mathematical laws. With the conceptual model as mindset the research can be started and the theory of the reality can be derived ore designed. When the result of the concept is valid and repeatable by other researchers, the approach is approved although the result can be negative.

Thesis Benjamin Stoker 25

6.2 Induction In line with the deduction, the empirical cycle of induction has the same characterizations as induction like the paradigm, methodology, methods and techniques. The difference of the inductive empirical cycle is the content of those characterizations. There are fewer similarities with the deductive empirical cycle, and are mostly the opposite. With the inductive empirical cycle, the fundamental attitude of the researcher is “subjective” and the researcher will prove a theory as a part of that reality and can be realized with qualitative research. The theory is mostly underpinned with survey research. A brief summary of deductive formation of the paradigm of the research purpose, set-up, and progress leads to the next summary; The paradigm

- Knowledge about the reality can only become with the eyes of the others, what implies for the research purpose;

o The researcher avoids much as possible an independent theory o The researcher is not an expert, but an explorer and is not the

objective outsider o The researcher doesn’t explore the reality, he/she explores the

context o The context is primary source for data

- The set-up of the research is basically based on the course describing of the research process, what implies;

o There must be worked with an open and relative unstructured subject, and makes a journal inevitable

o It makes use of a large scale of different data sources like Observation Informal conversation Interview

- For the research process is implying; o Existing perceptions can be used in different ways in the whole

process o The stages of the research influence each other and are interactive

with each other o Because the unstructured process of the research triangulation is

necessary until the data collection is saturated. The methodology

- The most methodologies can be categorized in ethnographic, etnomethodology or phenomenological methodologies, or the more accepted

Inductive Emperical cycle

Researcher collects information

Researcher is questioning

Researcher is looking for paterns

Researcher create catagories

Researcherdesignes a theory or compare patterns with other

theories Figure A1.3 Inductive research design

Thesis Benjamin Stoker 26

are the non participating observation strategies or the participating strategies.

- The used criteria’s for the methodologies are; o Studying the nature of the phenomenon’s o Research direction defined by the open question o Designing sensitizing concepts o Nature of the data o Preferences of the researcher

The methods In contrast with the quantitative methods, are the qualitative methods quite difficult to define because of their “subjective” the unconstrained nature. Normally there are three common used approaches;

- The grounded theory method which contains four phases; o Exploration; discovering the concepts o Specification; designing of the concepts o Reduction; determine the of the core concept o Integration; elaborate of the theory

- The chain of reasoning which have three phases; o Setup the first triad (basic reasoning) based on statements,

foundations and vindication. o The introduction of arguments of the thesis o Involving of the probabilities in the argumentation

- Action research Action research does have a clearly phasing, because of the fact the research will be a part of the research domain, to describe the reality as part of the reality.

Recapitulation The empirical cycle of induction is in contrast with deduction subjective and arises as part of the reality. Core of the quantitative research is to discover the properties of and events of the reality that has to toe be explored. The properties are mutually connected in a mini-theory to get a clearly understanding of that reality.

6.2.1 Assessment of the research Proper research demands quality standards, which can be used beforehand, during and afterwards. Deduction and induction have several their own specific quality criteria. These criteria are;

- The quantitative research o Reliability o Validity o Verifiable o Repeatable o Testable o Able to Generalize

- The qualitative research

o Satiation o Imitable o Transferable

Thesis Benjamin Stoker 27

o Understandable o Usefulness o Credibility o Collectivity

For the empirical cycles are reliability and validity crucial. The reliability can be determined with questions as;

o Are the results of the measurements by other occasions the same? o Will other researchers be getting similar observations? o Is the interpretation of rough data transparent?

The factors than can undermine the reliability of the data are diverse. The first is the participant mistake. The participant mistake is caused by the moment when their research is taken place. Is the moment of research the Friday afternoon or the Monday morning. The second is the participant distortion and contains the truthfulness of the results. The third is the observation error and is caused in the situation when several researchers are working with their own methods for the same project or interview. The last is the observation distortion and can be caused by the different interpretation in the situation when there are more researchers. To improve and guarantee the level of reliability is triangulation an important tool. By deduction can triangulation been realized using more and several methods inside the research project, or the use of different data sources. By deduction triangulation can be reached with satiation by absorbing that level of information like data, literature or other data sources so there is no new fact or information. The validity of the research results demonstrates if the results are really what they are, so the causal relation between the different variables has to be proven.

6.3 Combining qualitative and quantitative research types In the former paragraphs are the both empirical cycle’s (deduction and induction) in headlines explained. In these paragraphs are the research approaches described as a singular approach, with each their strongest and weaknesses. According to J.Jonker /B.J.W. Pennink and T. Murry it is possible to combine the two empirical cycle’s. With combining the two research types the advantage is that shortcomings can be eliminated of induction and deduction, and the best fitting research approach can be obtained. By combining induction and deduction the negative influences of the individual approach can be eliminated. By the use of induction the negative influences can be;

- Becoming “diffuse” of the used difference between diagnose, design and change

- The lack of an explicit theoretical framework, concept or model.

- The explicit recognition of the subjectivity of the researcher; not an outsider but an insider.

- Hardly repeatable of a research.

Theory

Induction

Observation

Deduction

Testing

Interpertation

Figure A1.4 Combined research design

Thesis Benjamin Stoker 28

Using deduction the negative influences can be; - The research investigates the reality of the mathematical; not the daily reality

of the social environment. - Stick on timorously of the fixed methodology approach with no opportunity

for unexpected events. - The “apparent” neutrality of the researcher - A conceptual model what is technologic and technical perfect, but not tells

the story of the actual phenomenon.

6.4 The research concept

In the former paragraphs are the inductive research and deductive research explained, as well the possibility to combine them. To find the best fitting research approach to get the right results is to define the abstract. As mentioned in the introduction is the abstract describes as;

In which type of contract is Asset and Maintenance Management strategies embedded, in agreement with the primary process of KPN where the KPN policy condition is creative with respect to the highest possible (R) Reliability, (A) Availability, (M) Maintainability and (S) Safety.

From the abstract could be derived several research questions to set up a proper research concept and research process. When the abstract is set up and divided in two in topics, the next research subject can be defined;

1. “In which type of contract is Asset and Maintenance Management strategies embedded” The context of the subject contract is Asset and Maintenance Management. The question is which contract types are well-known and in use by suppliers as well the customers, in the domain Asset and maintenance management. The research process has to find (or define) two answers;

- Which types of contract are well-known - What is Asset and Maintenance management

2. “in agreement with the primary process of KPN”

The context of the subject is the primary process of the KPN. The research process has to find (or define) the answer on the question;

- What is the primary process of the KPN

3. “where the KPN policy condition is creative” The context is the diffuse and complex. With condition is meant “under which conditions”. The subject condition is related to the policy as well the (technical) condition of the equipment to realize the primarily function. The research process has to find (or define) the answers on the question;

- What is the relation with condition and primarily process - Which tolerance is permitted in the condition

Thesis Benjamin Stoker 29

4. “with respect to (R) Reliability, (A) Availability, (M) Maintainability and (S) Safety”

The context of the RAMS factors is concrete and underpinned with mathematics. The RAMS factors are the concrete fundamentals of Asset & Maintenance, and the framework of the performance of a production line. The research process has to find (or define) the answers on the question;

- Which influence has the RAMS factors on the primarily process in terms of finance and performance of the technical functions.

As result of defining the abstract can be determined, that a proper research process cannot be sufficient with only deduction or induction. The research approach must be a mixture of the both approaches. Most important reason is the mixture of open and closed questions (which and what questions), and the number of question.

6.4.1 The research methodology

In the former paragraph is defined that a mixture of research types (induction and deduction) is the most fitting research approach. The set-up of a mixed research approach demand a specific approach and is different than the normal set-up of the induction and deduction approach. According to Baarda & Jonker is the set-up of the mixed research approach described in three phases;

1. Observation and deduce 2. Theorize and conceptualize 3. Interpretation and apply the knowledge

However, in this research project is chosen to replace the observation for interview techniques. In figure A1.5 is the mixed approach expressed per phase. With the phasing in the mixed research approach as described is it possible to describe the approach per phase. Simplified can the chosen research approach described in the next initial purposes.

1. Phase 1 Gathering information of the problem definition by interview the problems in practice

2. Phase 2 Defining a theory and a conceptual model with the information obtained of phase 1

3. Phase 3

Phase 2.0 Theory

Phase 1.0Induction

Phase 1.1Intervieuw

Phase 2.1 Deduction

Phase 2.2Testing

Phase 3.0Interpertation

Figure A1.5 Executed research process

Thesis Benjamin Stoker 30

With the conceptual model can the deductive phase conducted and interoperated towards the theory (conceptual model) and the observations.

6.4.2 The research methods Phase 1: Interview and deduce In phase one will be defined in an open mind and describe with the inductive empirical cycle, the problem definition. In this phase the researcher gets a wide and open mindset of problem definition. To get the wide and open mindset is chosen as method the semi-structured interview technique. With the information of the semi-structured interview technique can the practical information be deduced and transformed to a conclusion. The conclusions are the fundamentals for phase two. Phase 2: Theorize and conceptualize In phase two can the elaborated theory been conceptualized of phase one. The conceptualized theory will be expressed in a conceptual model. The conceptual model express graphical, the coherence of the different concepts of the elaborated theory. In this conceptual model are the coherences or the causal coherences describes. In this conceptual model is the causal coherences connected with an arrow. As procedure can only causal connection expressed by an arrow, only when it clearly that there is an causal relation between the concepts. After the conceptualization the deductive empirical cycle can be completed by testing of the conceptual model. Phase 3: Interpretation and apply In phase three will be the testing results been gathered in a dataset. Based on mathematical and statistical can be the result's interpretation and applied. The interpretation of the results must give a clear solution and result of the problem definition.

6.4.3 The research techniques The research techniques of the chosen methodology of the three phases as described in paragraph 6.4.1, are the conventional techniques of the inductive and deductive empirical cycles. The used techniques are:

1. Phase one survey by personal interviews. 2. Phase two designing of the conceptual model by literature research,

combined with the survey and interview results. 3. Phase three is testing the conceptual model with mathematics or statistics to

compare the results of the induction results and the theory.

6.5 The research process in practice

Now the research methodology, method and techniques are defined, it is possible to set-up a roadmap for the research process. For the roadmap of the research process is figure A1.5 useable, to describe the procedures and initiatives in the next paragraphs.

Thesis Benjamin Stoker 31

6.5.1 Procedure phase one.

To get understanding of the concepts will be used the interview survey, marked by the problem definition. To get the right and proper answers the nature of the questions of the survey and interviews, is chosen for the semi-structured interview technique. The semi-structured interview technique is not standardized and the question list is adapted to respondent. This means that the question list can vary and make the interview open and give the interview an informal and not structure context.

6.5.1.1 Survey by semi-structured interviewing The aim of the survey by interviewing the customer and the maintenance contractor is to get a global picture of the research domain in practice. Essential is the quality of the questions that's to give a basic understanding of the research domain. Important is to define the right questions and to achieve the right level of reliability and validity of the interview and to end the inductive part of phase one. To define the right questions it is necessary to do a specific literature study. With specific literature is meant literature that is giving understating on an abstract level of the inductive phase of the research domain.

Literature research for the benefit of the survey interview The purpose for the literature research is to formulate the questions for the interviews in a way to achieve the right results of phase one. For the literature research are used two type’s of resources. At the first are used the classic literature about the research domain, at second is used reference material disposed by the NVDO (Dutch Society Efficient Maintenance). For the classical literature are used;

- Maintenance Strategy; Business Centered Maintenance o A. Kelly ISBN 0750624175 o Chapter 1 and chapter 3

- Physical Asset Management Handbook o J.S. MitchelI ISBN 0971794502 o Chapter 4 and chapter 6

- Developing Performance Indicators for Managing Maintenance o T. Wireman ISBN 0831131845 o Chapter 1, 2 and 14.

- Technical System management o K. Smit ISBN9014067054 o Chapter 3

- Overall Equipment Effectiveness; a powerful Production/Maintenance tool for increased profits.

o R.C. Hansen ISBN ISBN 0831131381 o Chapter 4

For the disposed material of the NVDO is used seminar material of;

- Guarantee contract in Maintenance Management in practice o Presentation of Boersema Installation Advisories o Presentation by ACHMEA o Presentation by HEIJMANS o Presentation by PDM consulting

Thesis Benjamin Stoker 32

o Presentation CORUS - Strategically partnerships and alliance

o Presentation VINTURA o Presentation IMTECH

Summary of the literature and seminar material The studied literature and seminar material gives leads give the input to set-up the right questions. Basic information is the categorizing in the types of contract by the literature of Technical System Management (TSM). TSM divides the contract types in five categories:

1. Volume contract 2. Effort contract 3. Performance contract 4. Guarantee contract 5. ICS Integrated Service Contract

With the categorizing can be tested in practice if the basic principles are adopted, and more important; is the inter operation the same and can the respondents point out the differences between the contract types. With the TSM framework for contract types is close related to the literature of Maintenance Strategy; Business Centered Maintenance (BCM). BCM put the company strategy as starting point for the maintenance strategy with the point of view the system approach. Fundamental is to test if the respondents put also the company strategy and build up the maintenance strategy with the system approach to for fill the primarily function. Another consideration is:are the CPI’s and SLA of the contract types according to the literature of Developing Performance Indicators for Managing Maintenance. Main question her is of the respondents can measure the satisfaction of the customer ass well of the contractor. Close connect with the CPI’s and SLA’s is the OEE as described in Overall Equipment Effectiveness; a powerful Production/Maintenance tool for increased profits. What have tested by the respondents in the interview, of the functional performance indicator OEE (that describes the performance of the equipment) is used as a concept in the variety of contract types. The used material of the seminars delivers an important point of view that further has to work out and tested. Gathering all the information is the main question how to get the relation between customer and contractor transparent and reliable in two directions, in the situation that the contract type is getting more abstracter and linear of the abstraction increasing alliance formation between customer and contractor. As resume of this specific research of a limited literature and disposed material research ends in the next questions;

1. How is the relation between customer and supplier described in the maintenance contract.

2. Which aspects must be named in a contract to define a maintenance strategy.

3. Which contract types are defined and well-known. 4. Which methodology, methods and techniques must be embedded in a

maintenance contract. 5. Which methodology, methods and techniques are used to test the quality

and the product of the contract. The survey by interviewing customer’s contractors has to bring more understanding of the body of thoughts in practice.

Thesis Benjamin Stoker 33

The question form used by the interviews Dear Sir / Madam, As a student of the Robert Gorden University (Aberdeen UK) and Hogeschool Utrecht (Utrecht NL) I am investigating the best fitting Asset & Maintenance Management concept for datacenters. Datacenters are a vital part in the ICT and society, with a key role for the Asset & Maintenance Management Concept. Adopting a proper Asset & Maintenance Management policy is favorable for the reliability and availability of the datacenter product. Purpose of the interview is mainly to get information of (or about);

- Business related Asset & Maintenance Management. - Types of Asset & Maintenance Management contracts. - Testing criteria or model(s) of Asset & Maintenance Management

contracts. The interview encloses questions divided in informative question, open questions and closed questions. Beforehand of the interview I send you the list of questions, and would ask you to contact me if they are uncertainty about the interview. Afterwards I will send you a report of the interview so you can confirm the results. Information about the respondent

1. Which company are you working for. 2. What is the core business of your company. 3. In which segment of the market is your company active 4. How many employees have your company. 5. What is your function in your organization. 6. In which amount does your function influence the contract.

Question 1 Is your company familiar with a diversity in contract types? Can you categorize the contract types? Question 2 Can you define the difference between the contract types? Question 3 Are technological methodology’s, methods and techniques embedded in your contracts? Can you give an example? Question 4 Is the customer business strategy embedded in the contract? On which way is the business strategy embedded? Question 5 Which maintenance concepts are generic I use by your maintenance contracts? Question 6 Which method do you use to measure the quality of the contract? Are there standards where you can refer the quality of contracts?

Thesis Benjamin Stoker 34

Question 7 Which methods are you using to mapping the voice of the customer? Which parameters or variables do you use to mapping the voice of the customer? How do you guarantee the voice of the customer in the maintenance contracts? Question 8 How do you measure the satisfaction of the customer? Question 9 How would you typify your organization? As a open organization (question driven) or close (supply driven) Question 10 Which CPI’s or SLA’s are embedded in your contract? (The three most used) Thank you for your attention. Within five working days, you get the report of the interview results to review and confirming. The reliability criteria of the interview results To get a proper result of the interview the survey interview must be reliable. In this context reliability can be defined as;

1. Will be the measurements in other circumstances give the same results 2. Shall other observers be getting the similar results when they do the same

observations? 3. Is the used method for interpretation of the rough data transparent.

To achieve a proper level of reliability of the interview survey, can the next initiatives secure by:

- Literature research by: o Classic literature o Information disposed by companies

- Triangulation of the literature and other information o Triangulation of the classic literature within the research domain o Triangulation of the disposed information o Blending the triangulated classic literature and disposed information

together is a summary - Distillate from the literature summary the questions. - The quality of the questions and the nature of the interview.

To reach an acceptable reliability of the personal interview it is important to define the aspects that undermine the reliability of the personal interview. These aspects are the interviewer distortion and the respondent distortion. Most important measure taken to overcome interviewer’s distortion are;

- The interviewer has to prepare the interview o Measure

i. Knowledge of the company where the respondent works ii. Know the background of the respondent

- The provided information has to be a well-balanced

o Measure

Thesis Benjamin Stoker 35

i. Giving information preceding the interview

- The “looks” and appearance of the interviewer. o Measure

i. Check a dressing code of the respondent company

- The first sentence of the interview o Measure

i. A good start increase the credibility

- The attitude of the questions o Measure

i. Clear formulation ii. Minimum two questions about one aspect

- The effect of interviewer behavior

o Measure i. Non-verbal behavior ii. The interviewer must be neutral iii. Temporizing the speed of the discussion

- The possibility to test and confirm the answers.

o Measure i. Summarize the interview and ask for confirmation

- The way how information is stored.

o Measure i. Directly after the interview putting together the a full report.

The validity criteria of the interview results The criteria of validity by the interviews are how the interviewer gets access to the respondents experience and knowledge of the research domain. To get a proper result of the interview the survey interview must be valid. In this context validity can be defined as;

1. Can the interviewer get access to the respondents experience and knowledge of the research domain.

2. Is it possible that the interview results can be generalized. To reach an acceptable validity of the personal interview it is important to define the aspects that undermine the validity of the personal interview. These aspects are the interviewer distortion and the respondent distortion. Most important measures taken to overcome in-validity;

- The respondents must be working in the research domain - The respondents must be a mixture of customers and contractors or

independent advisors. - The respondents must be working for KPN, related to KPN and not related

with the KPN. - The respondents must have functions like;

o Purchasing o Commerce o Contract management o General Management’

Thesis Benjamin Stoker 36

o Innovation Department o Operations

Procedure to use the results The procedure how to use the interview results is defined in four steps;

1. Take of the interview 2. Make a report of the interview and ask the respondent to confirm 3. Categorize the result of the answers 4. Collect the data and deduce in conclusions and useable for phase two.

6.5.2 Procedure phase two

In line with phase one and as described in paragraph 6.5.1 are the main activities in phase two theorize and conceptualize. This implies that with the conclusion of phase one the input is a theory, so that with the theory a conceptual modal can be developed. When the conceptual model is made operational, the theory can be tested and interpertated in two directions; first towards the theory and secondly towards the results of the interviews. The procedure of the phase two can be divided in basically three parts. In the first part will be a theory based on the conclusions of phase one. The third part embraces the activities to testing the theory by a literature research on reliability and validity. In the second part will be the theory conceptualized in a model and also tested on reliability and validity in the context of the theory and problem definition. In the figure A1.6 alongside are the steps represented. In the next three paragraphs are the three steps described. In appendix three are the results described of the used procedure.

Phase 2.0 Theory

Phase 1.0Induction

Phase 1.1Intervieuw

Phase 2.1 Deduction

Phase 2.2Testing

Phase 3.0Interpertation

Figure A1.6 Combined research process

Thesis Benjamin Stoker 37

6.5.2.2 Designing the theory (2.0) As mentioned in paragraph 6.1 refers the term theory to an identified set of components that account for how some phenomenon occurs. Another interpretation is a description of how those components interact in order to produce the phenomenon. To design a theory as part of the research procedure must be the set of conclusion of phase one transformed in a theory. To create a reliable and valid theory based on phase one and in the context of the problem definition, is it necessary to have fundament knowledge of the research domain. To realize enough knowledge the literature is studied as described in appendix 6. Putting it al together, is the process of theorize defined in the next steps;

1. 2.0 Define from the conclusions of phase one a theory - Increase the reliability by triangulation of data resources - Increase the validity by proving the causal relations of the theory.

6.5.2.3 Deduction (2.1)

When the theory is defined starts a creative process to design a conceptual model. A conceptual model is a graphical reproduction of causal connections between several variables in the model. The conceptual model is also a causal model because its express cause and effect. The relation between cause and an effect is expressed by a connecting line, and if the effect is clearly demonstrable caused by an activity can the causal connection expressed by an arrow. In most situations it not always a single cause for a certain effect. Mostly there are more variables that influence (or caused) the effect. These variables that influence the effects are named the control concepts and when the conceptual model is putting is putting in operation they are named the control variables. The control variables can be divided in two categories; quantitative control variables and qualitative control variables. In an abstract way can quantitative control variables been expressed in higher or lower, more or less, stronger or weaker etc. The process of deduction in phase two can be described in the next process steps:

1. 2.1 Design a conceptual model based on the theory. 2. 2.1 Create propositions to define a hypothesis. 3. 2.1 Test the hypotheses and prove the plausibility of the hypotheses.

6.5.2.4 Testing the conceptual model (2.2)

The testing stage of phase 2 is based on testing research of maintenance contracts that are in stock. In this stage will be the maintenance contract that is in use for datacenters compared with the conceptual model and the hypotheses. Result must be a tool to judge of the concept maintenance contract for datacenters which now are in use and a tool to judge maintenance contracts for data centers on their quality. The procedure steps for these activities are;

1. 2.2 Test the present maintenance contract for datacenters with the conceptual model and assess the functionality, performance and product of the maintenance contract.

Cause Problem

Infuence

Effect

Figure A1.7 Control variables

Thesis Benjamin Stoker 38

6.5.3 Procedure phase three

Regarding the problem definition must be the result of phase three: - A new view of the concept maintenance management contract for

datacenters other than now in use or well known in the business, - A concept of judging the maintenance contract on their quality - And a way/guideline to implement the new concept to achieve the right

level. In this paragraph are the two procedure steps described and the two procedure steps to complete the research.

6.5.3.1 Design the ideal maintenance management contract In line with the research approach will be in this paragraph the tested conceptual model and theory, bring in practice. To bring in practice the theory and the conceptual model have to be followed the next procedure;

1. Direction 1: Describe the company strategy versus the maintenance strategy - Define the customers wish with QFD - Describe the interaction between corporate and the maintenance

management organization with system approach 2. Direction 2:

Define the technical functions and describe the output specifications - Define the Reliability - Define the Availability - Define the Maintainability - Define the Safety - Define the Health aspects - Define the Environmental aspects - Define a function Tree of the technical specifications - Define the technical function with IDEF0

3. Direction 3:

Define the impact of failure of the technical function within the specifications as describes in the second direction with; - Failure mode and effect analyses with at least one of the four FMEA

types; o System FMEA o Design FMEA o Process FMEA o Service FMEA

- A Hazard and operability study

4. Direction 4: Define the maintenance concept - Define FDM based on the technical function specifications - Define TDM based on the technical function specifications - Define CDM based on the technical function specifications

5. Direction 5:

Define the maintenance method.

Thesis Benjamin Stoker 39

- Define the best mixture of maintenance based on the next maintenance practices;

o Rule and legislation o Conditioning maintenance o Predictive maintenance o Corrective maintenance o Preventive maintenance o Value Driven maintenance o Risk based maintenance o Total Predictive maintenance o Reliability centred maintenance o Business-centred maintenance

6. Direction 6:

Define the system efficiency - Define the Overall Equipment Efficiency factor in theory

7. Direction 7:

Define the financial parameters and variables - Describe a set of financial parameters and/or variables so the body of

thoughts of Whole Life Costing can be embedded in the contract - Demarcation of the annual OPEX guidelines - Demarcation of the long range ( minimum 5 year) CAPEX guidelines - Demarcation of the condition financial expressed.

8. Direction 8: Define the aim of the maintenance organization - Define the nature of the maintenance contract - Describe the organization structure (Question or supply driven) - Define the CPI’s and SLA’s

The basically frame work of the Asset & Maintenance Management contract based on the AMMIC. The quality of the frame work must be at least 100% on the AMMIC scale.

6.5.3.2 Describe the implementation plan After the Asset and Maintenance Management contract design, is a critical success factor the implementation of the contract for the customer as well for the contractor. The implementation the designed contract successfully can only project based. The used project method must be PRINCE2.

6.5.3.3 Feedback to the theory of the deductive phase

In this phase must be the testing results must be interpretation and related to the theory as defined in stage 2.0. The interpretation of the testing results must be confirming or refuse the theory.

6.5.3.4 Feedback to the inductive phase

In this phase must be the testing results must be interpretation and related to the observation in practice (the interviews) as defined in stage 1.1. The interpretation of

Thesis Benjamin Stoker 40

the testing results must be confirming or refuse the observation in practice (the interviews).

Thesis Benjamin Stoker 41

7 Appendix 2: The results of phase one “Interview and deduce”.

As described in the appendix one, is the procedure of phase one described in five steps. Those steps are;

1. Take of the interview 2. Make a report of the interview and ask the respondent to confirm 3. Categorize the result of the answers 4. Collect the data and deduce in conclusions and make them useable for

phase two. In this appendix are the results of the interview survey represented. In the representation are step one and two omitted because they are already discussed in appendix one, so can be started directly with step three.

7.1 Procedure step 3: Categorizing the results of the interviews.

With categorizing the results of the interviews can be defined the connections between the respondent's answers, and can the aims of the interview tested. The procedure of the categorizing prices is defined as;

1. Divide the nature of the respondent in; o Customer, contractor or independent advisor

2. Classify the nature of the company. 3. Put together the answers of the respondents.

7.1.1 Dividing the nature of the respondent

1. Amount of interviews. - In total are 10 respondents interviewed.

2. The composition of the respondents was divided in;

- 2 Independent advisors; respondents are marked as A and B - 4 Maintenance contractors; respondents are marked as C,D,E and F - 4 Maintenance customers respondents are marked as G,H,I and J -

3. Their function was at minimum: - 2 independent advisors;

o Managing directors - 4 Maintenance contractors;

o Managing director, o Commercial Director

- 4 Maintenance customers; o Purchase, o Maintenance management

7.1.2 Put together the answers of the respondents The interpretation of the interview results is an important part of step 1 in the research project, because the results of the interviews will dominate the mind setting by the creation of the conceptual model in the deductive approach.

Thesis Benjamin Stoker 42

To get a reliable interpretation of the answers of the respondent, and define the rights conclusions are the next process steps been taken;

1. Putting together al the initial answers and mark the similarity 2. Resume the question initially in a temporarily conclusion 3. Resume al the initial conclusions and define the results in

Question 1 Is your company familiar with diversity in contract types? Can you categorize the contract types? Answers:

A. Yes B. Yes C. Yes D. Yes E. Yes F. Yes G. Yes H. Yes I. Yes J. Yes

Abstraction Respondent A Abstraction Respondent B Abstraction Respondent C1 Directed Maintence contract 1 P1 Delivery Energy 1 Performance contract2 Effort contract 2 P2 Preventive and Corrective Maintenanc 2 Effort contract3 Performance contract 3 P3 Performance contrcat 3 Directed Maintence contract4 Guarantee contract 4 P4 Guarantee contract 4 Guarantee contract5 ICS contract 5 P5 ISC contract 5 Custom-made job contract6 Custom-made job contract 6 P6 Custom made-job contract

Abstraction Respondent D Abstraction Respondent E Abstraction Respondent F1 Directed Maintence contract 1 Directed Maintence contract 1 Custom-made job contract2 Effort contract 2 Effort contract 2 Effort contract3 Guarantee contract 3 Performance contract 3 ICS contract4 ICS contract 4 Guarantee contract 4 Directed Maintence contract5 Custom-made job contract 5 ICS contract 5 Performance contract

6 Custom-made job contract

Abstraction Respondent G Abstraction Respondent H Abstraction Respondent I1 Directed Maintence contract 1 Directed Maintence contract 1 Effort contract2 Performance contract 2 Effort contract 2 Performance contract3 Effort contract 3 Guarantee contract 3 Guarantee contract4 Guarantee contract 4 ICS contract 4 ICS contract

5 Custom-made job contract 5 Custom-made job contract

Abstraction Respondent J1 Directed Maintence contract2 Guarantee contract3 Performance contract

Temporarily conclusion - Al the respondents have knowledge of maintenance contracts - Interpretation of the nature of maintenance contracts is diffuse

Thesis Benjamin Stoker 43

Question 2 Can you define the difference between the contract types? Answer

A. Yes; the higher the abstraction forms of contract type, more risk and responsibility by the contractor.

B. Yes; The higher the abstraction form of contract type, more risk for the contractor.

C. Yes; The higher the abstraction form of contract type, more responsibility and financial responsibility

D. Yes; The higher the abstraction form of contract type, more integration by the customer and risk for the contractor.

E. Yes; The higher the abstraction form of contract type, less administration an risk for the customer

F. Yes; The higher the abstraction form of contract type, more responsibility for the contractor.

G. No; it is the customers wish to decide, the contract type is not important H. Yes; The higher the abstraction form of contract type, the less worries for the

customer I. Yes; The higher the abstraction form of contract type, the more financial risk

for the contractor. J. Yes; The higher the abstraction form of contract type, the more responsibility

for the contractor.

Temporarily conclusion - The main difference is the to move the responsibility from the customer

to the contractor, of the technical maintenance. - Direct consequence is the fact that the contractor is part of the risk and

functional performance of the assets. Question 3 Are technological methodology’s, methods and techniques embedded in your contracts? Can you give an example? Answers; Note, the example question is a check up to verify if the concept of methodology was the correctly interpretation in the interview

A. Methodology: No, Methods : Yes, Techniques: Yes B. Methodology: No, Methods : No, Techniques: No C. Methodology: Yes, Methods : No, Techniques: Yes D. Methodology: No, Methods : Yes, Techniques: Yes E. Methodology: No, Methods : No, Techniques: Yes F. Methodology: No, Methods : Yes, Techniques: Yes G. Methodology: No, Methods : Yes, Techniques: Yes H. Methodology: No, Methods : Yes, Techniques: Yes I. Methodology: No, Methods : No, Techniques: Yes J. Methodology: No, Methods : No, Techniques: No

Temporarily conclusion - Methodology’s are mostly not used and applied in the maintenance contracts - Methods are in some cases used and applied in the maintenance contracts - Techniques are used and applied in maintenance contracts

Thesis Benjamin Stoker 44

Question 4 Is the customer business strategy embedded in the maintenance contract? On which way is the business strategy embedded? Answer

A. Yes; by reduction of cost or embedding op production loss B. No; own conviction to the right activities for the customer C. Yes; by taking over the customers strategy D. Yes; by customer satisfaction E. Yes; by customer satisfaction F. Yes; by taking over the customer's strategy G. Yes; by taking over the customer's strategy H. No; own conviction to the right activities for the customer I. Yes; by taking over the customer's strategy J. Yes; by taking over the customer's strategy

Temporarily conclusion

- The business strategy of the customer is not embedded in the maintenance contracts.

- Embedding the business strategy subjectively embedded in the maintenance contracts.

Question 5 Which maintenance concepts are generic in use by your maintenance contracts? Answer

A. Preventive maintenance and corrective maintenance B. Preventive maintenance and corrective maintenance C. Preventive maintenance and corrective maintenance D. Preventive maintenance and corrective maintenance E. Preventive maintenance and corrective maintenance F. Preventive maintenance and corrective maintenance G. Preventive maintenance and corrective maintenance H. Preventive maintenance and corrective maintenance I. Preventive maintenance and corrective maintenance J. Preventive maintenance and corrective maintenance

Temporarily conclusion

- The generic maintenance concepts are preventive and corrective maintenance

Question 6 Which method do you use to measure the quality of the contract? Are there standards where you can refer the quality of contracts? Answer

A. None; none B. None; none C. None; none D. None; none

Thesis Benjamin Stoker 45

E. None; none F. None; none G. None; none H. None; none I. None; none J. None; none

Temporarily conclusion

- There are no methods or models to measure the quality of the contract. Question 7 Which methods are you using to mapping the voice of the customer? Which parameters or variables do you use to map the voice of the customer? How do you guarantee the voice of the customer in the maintenance contracts? Answer

A. None, expression by KPI and SLA, none B. None, relation and networking, none C. None, expression by KPI and SLA, none D. None, none, none E. None, expression by KPI and SLA, none F. None, expression by KPI and SLA, none G. None, expression by KPI and SLA, none H. None, none, none I. None, expression by KPI and SLA, none J. None, expression by KPI and SLA, none

Temporarily conclusion

- There are no well-known methods in use to define the customers whish - The most common parameters are defined CPI’s and SLA’s - There are no well-known methods in use to embed the customers whish in

contracts Question 8 How do you measure the satisfaction of the customer? Answer

A. By external inquiry or relation interview B. By external inquiry or relation interview C. By inquiry or relation interview D. Relation interview E. By external inquiry or relation interview F. By inquiry or relation interview G. By external inquiry or relation interview H. By external inquiry or relation interview I. By external inquiry or relation interview J. By external inquiry or relation interview

Temporarily conclusion

- Al the respondent measures the customer’s satisfaction more the less by external measurement.

Thesis Benjamin Stoker 46

Question 9 How would you typify your organization? As a open organization (question driven) or close (supply driven) Answer

A. Open B. Closed C. Closed D. Open E. Open F. Closed G. Closed H. Closed I. Closed J. Closed

Temporarily conclusion

- The most maintenance organizations are a have a closed organization structure.

Question 10 Which CPI’s or SLA’s are embedded in your contract?(The three most used) Answer

A. Availability, reliability and maintainability B. Finance, Preventive maintenance and corrective maintenance C. Preventive maintenance, availability and performance D. Availability, loss of production and performance E. Preventive maintenance, availability and performance F. Production loss, availability and performance G. Availability, reliability and maintainability H. Finance (reduction of costs), performance and reliability I. Availability, reliability and maintainability

Temporarily conclusion

- The most used CPI’s or SLA’s are : Availability, Reliability and Maintainability

7.1.3 Put together the answers of the respondents. When the temporarily conclusions of the questionnaire are been gathered and putting together, arises seventeen answers which can be used to answer the questions as described in paragraph 6.5.1.1. The answers are; 1. Al the respondents have knowledge of maintenance contracts 2. Interpretation of the nature of maintenance contracts is diffuse 3. The main difference is to move the responsibility from the customer to the

contractor, of the technical maintenance. 4. Direct consequence is the fact that the contractor is part of the risk and

functional performance of the assets. 5. Methodology’s are mostly not used and applied in the maintenance contracts 6. Methods are in some cases used and applied in the maintenance contracts

Thesis Benjamin Stoker 47

7. Techniques are used and applied in maintenance contracts 8. The business strategy of the customer is not embedded in the maintenance

contracts. 9. Embedding the business strategy subjectively embedded in the maintenance

contracts. 10. The generic maintenance concepts are preventive and corrective maintenance 11. There are no methods or models to measure the quality of the maintenance

contract. 12. There are no well-known methods in use to define the customers whish 13. The most common parameters are defined CPI’s and SLA’s 14. There are no well-known methods in use to embed the customers whish in

contracts 15. Al the respondent measures the customer’s satisfaction more the less by

external measurement. 16. The most maintenance organizations have a closed organization structure. 17. The most used CPI’s or SLA’s are : Availability, reliability and maintainability

7.2 Procedure step 4: Collecting the data and deduce in conclusions and make the useable for phase two.

To collect the data and deduce them in conclusions as a starting point of phase two (deduction), depends of the results when the interview results are compared with the research questions as described in paragraph 6.5.1.1.. To get the results are the interview results divided over the research questions so conclusion can be made.

7.2.1 Collecting and dividing the data

1. Question 1: How are the relations between customer and supplier described in a maintenance contract? - The most maintenance organizations have a closed organization structure.

2. Question 2: Which aspects must be named in a contract to define a maintenance strategy? - There are no well-known methods in use to embed the customers whish in

contracts - The most used CPI’s or SLA’s are : Availability, reliability and maintainability - The business strategy of the customer is not embedded in the maintenance

contracts. - The most common parameters are defined CPI’s and SLA’s - The generic maintenance concepts are preventive and corrective

maintenance - Embedding the business strategy subjectively embedded in the maintenance

contracts.

3. Question 3: Which contract types are defined and well-known. - Al the respondents have knowledge of maintenance contracts - Interpretation of the nature of maintenance contracts is diffuse

Thesis Benjamin Stoker 48

- The main difference is to move the responsibility from the customer to the contractor, of the technical maintenance.

4. Question 4: Which methodology, methods and techniques must be embedded in a maintenance contract. - Methodology’s are mostly not used and applied in the maintenance contracts - Methods are in some cases used and applied in the maintenance contracts - Techniques are used and applied in maintenance contracts - Direct consequence is the fact that the contractor is part of the risk and

functional performance of the assets

5. Question 5: Which methodology, methods and techniques are used to test the quality and the product of the maintenance contract. - There are no methods or models to measure the quality of the maintenance

contract. - There are no well-known methods in use to define the customers whish - Al the respondent measures the customer’s satisfaction more the less by

external measurement.

7.2.2 Deduce and define conclusions.

Deducing conclusions of the results of the taken steps in phase one gives the following outcome; 1. There are no standards or codes that describe the relation of the customer or

contract in maintenance contracts. 2. Which basics aspect a maintenance contract has to contain as minimum, not

defined in standards or codes. 3. Although there is a perception of contract typologies is in the maintenance world

a lot of miscommunication about the typologies of maintenance contracts, the difference between them and their function.

4. In maintenance contracts are no methodologies used or recognizable. In some cases are methods used but basically are maintenance contracts based on primarily techniques.

5. There are no methods, standards or codes to test maintenance contracts on their quality.

Thesis Benjamin Stoker 49

8 Appendix 3 : The results of phase two “Theorize and Conceptualize” As mentioned in appendix one paragraph 6.5.2, shall in phase two a theory put in operation. The procedure steps are described in the named paragraph. In this paragraph are the results described of the activities of the procedure.

8.1 Creating a theory

As input to create a theory is used the outcomes of the interviews of phase one. The results were; 1. There are no standards or codes that describe the relation of the customer or

contract in maintenance contracts. 2. Which basics aspect a maintenance contract has to contain as minimum, not

defined in standards or codes. 3. Although there is a perception of contract typologies is in the maintenance world

a lot of miscommunication about the typologies of maintenance contracts, the difference between them and their function.

4. In maintenance contracts are no methodologies used or recognizable. In some cases are methods used but basically are maintenance contracts based on primarily techniques.

5. There are no methods, standards or codes to test maintenance contracts on their quality.

In the next paragraph will be the theory designed.

8.1.1 Defining the theory Defining a theory is also a creative process. With the creative process is meant to find key-words in the statements to define a domain to make it possible to create aspects and categorize them. Limitative summarizations of the aspects are: 1. Company strategy versus asset & maintenance management 2. The technical functions defined like reliability, availability, maintainability etc 3. The impact of failure when the assets can’t for-fill their technical function 4. The maintenance concept 5. The maintenance methods 6. The efficiencies and performance of the assets 7. The financial aspects of the operational and capital expenditure's costs 8. The organization that has to realize the aim and targets of the aspects.

The key words which contain an aspect are:

1. Company strategy versus maintenance management 2. Technically functions 3. Impact analyses

The theory can be described and defined that the concept of Asset & Maintenance Management is fundamental build up of eight aspects, and when all the eight aspects together performing theoretical optimal is the maximum level of asset & maintenance management achieved.

Thesis Benjamin Stoker 50

4. Maintenance concept 5. Maintenance methods 6. System efficiency 7. Finance 8. Organization

8.1.1.1 Increasing the reliability

To determine if the theory is reliable can be temporary only by literature study. With triangulation is it possible to increase the reliability by using more data sources (literature). For triangulation per aspect is the next literature considered and consulted; Aspect one; Business strategy versus maintenance management

- Maintenance strategy; business strategy A. Kelly ISBN 0750624175 Chapter 1 and 3

- Contemporary strategy analyses R.M. Grant ISBN 1405124083 Chapter 8

- Soft systems in action P. Checkland and J. Scholes ISBN 047198605 Chapter 2, chapter 5 part I and chapter 9.

- Quality function deployment L. Cohen ISBN 0201633302 Chapter 1 and chapter 2.

- RCM; gateway to world class maintenance A.M. Smith & G.R. Hinchclife ISBN 9780750674614 Chapter 5

- System thinking B. Bryan, M. Goodman and J. Schaveling ISBN 9052615527 Chapter5

Note of the researcher The topics in the named literature are all corresponding to the system approach in combination with the technical translation of the customer’s whish. The aim to choose these parts of literature to underpin aspect one, is the fact that they have for their specific goal the right fit, but not for the described theory. By combining the specific aspects of the system approach of Checkland and Scholes, brought in the BCM approach of A. Kelly results in a wider perspective. When the “system-BMC” What not specific is discussed are the reinforcement looping of system thinking. By using this technique can be introduced a natural form of continuous improvement. Above approaches and techniques misses the “identification” link of the failure mode and effect analyses, which is solved by the system approach with the RCM approach made by Grant.

Aspect two; Technically functions.

- Technical System Management K. Smit ISBN 9014067054 Chapter 2 and chapter 3

Thesis Benjamin Stoker 51

- Reliability and Risk Assessment J.D. Andrews and T.R. Moss ISBN 186058290 Chapter 1 and chapter 14 case study 4

- Reliability engineering E.E. Lewis ISBN0471018333 Chapter 1 and chapter 6

- Maintainability B.S. Blanchard ISBN9780471591320 Chapter 1 and chapter 5

Note of the researcher The topics in the named literature are all corresponding to the combined question; what do we expect of the technically functions to realize the business-goal(s). The description of the contract types made by K. Smit is the only piece of literature that on scientific way contract types describes but also have a gap (scientifically) in the what the technical function has to do. Lewis can fill in the gap with his underpinned approach of defining Reliability and Avail ability of redundant systems. Another consideration is the gap in maintainability, but can be filled in with the maintainability approach by Blanchard. Aspect three; Impact analyses

- Failure Mode and Effect Analyse D.H. Stamatis ISBN0873895983 Chapter 1 and chapter 5

- Reliability and Risk Assessment J.D. Andrews and T.R. Moss ISBN 186058290 Chapter 3

Note of the researcher The topics in the named literature are corresponding how to identify failures with the four FMEA approaches and with HAZOP safety devices to avoid significant safety and environmental incidents of the technical functions that has to for fill the aims of the business strategy. The reason to use both approaches is respecting the body of thoughts of the system approach with the business strategy as starting point.

Aspect Four; Maintenance concepts - Literature Maintenance Needs

T. Zaal; study syllabus Chapter 2

- Physical Asset Management J.S. Mitchell ISBN 0971794502 Chapter 3 E

- Maintainability B.S. Blanchard ISBN9780471591320 Chapter 1 and chapter 5

Note of the researcher The topics in the named literature are corresponding how to identify the best fitting maintenance concept depending on business strategy, the technically function and the expirations of those functions. By using the system approach is the theorem of Zaal the simplest and most fitting, but isn’t concrete enough to fill in the concept for

Thesis Benjamin Stoker 52

further use. The Zaal theorem can more enrich and made concrete for further usage by adding the concept view of Blanchard.

Aspect five; Maintenance methods - Value Driven Maintenance

M. Haarman & G. Delahay ISBN90808270 Chapter 5, chapter 6 and chapter 7

- Physical Asset Management J.S. Mitchell ISBN 0971794502 Chapter 3 E

- Conditioning Based Maintenance J.H. Williams ISBN 0412465000 Chapter 6

- RCM; gateway to world class maintenance A.M. Smith & G.R. Hinchclife ISBN 9780750674614 Chapter 2 and chapter 3

- Preventive and Predictive Maintenance J. Levitt ISBN 987083113154 Chapter 2

Note of the researcher The topics in the named literature are corresponding which maintenance method is the best to use. In the domain of maintenance methods are in some cases the to diffuse described, and to generic. When the body of thoughts in generic is used there is no problem, but by specific us as for data centers is combining the named approached necessary.

Aspect six; System efficiency - Physical Asset Management

J.S. Mitchell ISBN 0971794502 Chapter 5 and chapter 6

- Overall Equipment Effectiveness R.C. Hansen ISBN 0831131381 Chapter 1, chapter 4 and chapter 7

- Uptime Strategies for excellence in Maintenace Managment J.D. Campbell & J.V. Reyes-Pichnell ISBN 9781563273353 Chapter 11

Note of the researcher The topics in the named literature are all corresponding with the objective to realize the product as efficient as possible. Identifying the product for the purpose in this research is quite difficult, but with the approach described by Hansen it is getting quite obvious to define the product.

Aspect seven; Finance - Whole life costing

RGU M. Kisk Chapter 2 and chapter 3

- Business Economics Principals HU : J. Oyserman

Thesis Benjamin Stoker 53

Chapter 1, chapter 2 and chapter 3 - NEN 2667 1 & 2

NEN standard Note of the researcher The topics in the named literature are all corresponding with the objective how crated value with Asset & Maintenance Management. However, none of them is bringing it in perspective of the former directions as a system to give head the fast changing world of the cyber centres. Only with combining the static principals of Oyserman with the more open from the open Kishk approach, make the judgments of CAPEX by new investments more in line with the former aspects. How ever the dominated gaps are the condition classification that made when the life cycle is started. Combining the NEN 2767 with the former aspects it is possible to identify the condition of an asset so OPEX cost are getting more predictable and controllable.

Aspect eight; organization - The fourth management crisis

R. Land ISBN 9055941654 Chapter 2 and chapter 6

- System thinking B. Bryan, M. Goodman and J. Schaveling ISBN 9052615527 Chapter 3, chapter 7 and chapter 8

- Improving Performance JG.A. Rummler & A.P. Brache ISBN 0787900907 Chapter 3, chapter 12 and chapter 13

- Developing performance Indicators for Managing Maintenance T. Wireman ISBN 0831131845 Chapter 1, chapter 2, chapter 13 and chapter 14

Note of the researcher The topics in the named literature are all corresponding to realize al the former aspects. In spite al the former literature, approaches and historical patterns it still are the maintenance operators and their line managers that has to realize the aims and goals of the business. To give head and realize the huge expirations the best should be the open organization strategy by Land.

8.1.2 Deducing the theory into a conceptual model and define propositions to create a hypothesis

In this paragraph will be deduced the theory into a conceptual model. When the model is created, can propositions defined and described to come to a general hypothesis. The function of the hypothesis in this research process is to prove that the created conceptual model embraces the maintenance management domain, but also can assess the quality of the chosen maintenance concept.

8.1.2.1 Design a conceptual model based on the theory The maintenance management domain is complex because its contains a lot of disciplines, and influence on several ways the production process. To create the conceptual model is used the concept of the system approach. The argument to use

Thesis Benjamin Stoker 54

of the system approach is the fact that maintenance management is not a single activity, but the whole of aspects that are related or connect to each other. Starting point of the system approach are the assets that have to for fill their function and have to realize that data centers can for fill in their primarily function. Mentioning the theory which is built up of eight aspects, the eight aspects also dominated the function of the assets, the quality of assets and the profit of the company. To create a conceptual model with the system approach, the fundamental attitude must be that all the eight aspects are related and influence each other. This mindset makes it possible to connect the keywords (and the aspects) with each other and visualize this mindset. The figure below is the first creation of the model with the system approach.

1. The company strategy as a system in a time perspective.

2. The technical function as part of the system.

3. The impact by failure of a function.

4. The maintenance concept of the function.

5. The applied maintenance method on the function.

6. The efficiency of the functions. 7. The financial considerations of

the asset(s) in a time perspective.

8. The organization that manages the asset(s). The conceptual model further explained with the system approach Each aspect is a knowledge domain on itself, but fulfills his function as a variable in the whole system. With the system approach, it is possible to visualize the causal connection of the individual cluster of variable’s that contains the aspects. With the clustering of items, it is possible to group the item towards a certain aspect. To visualize the system approach is used the looping technique [App.6 43p55/58p78]. The looping technique contains five basic expressions, which reflect the effects of influence in the relation cause and effect. The five expression are shown in the figure A3.2.

1. Causal connection : Same 2. Causal connection : Opposite

3. Reinforcing feedback proces 4. Balancing feedback proces

5. Time delay

SInfluence

Cause Effect

BR

OInfluence

Cause Effect

//

Figure A3.2 The looping technique according of the system approach

1.Corporate Strategy

5.Maintenance Methods

4.Maintenance Concept

3.Impact Failure Functions7.Financial

2.TechnicalyFunctions8.Organisation

6.System Efficiency

Figure A3.1 The system approach (basic) of the eight aspects

Thesis Benjamin Stoker 55

In the theory are the eight fundamental aspects defined and visualized in a basic model. With system approach is it possible to visualize and conceptualize the eight basic aspects which represented basically the Asset & Maintenance Management domain as a system. In figure A3.3 are the connections of the eight aspects more visualized in detail. The figure reflects the causal connection in a certain order. The determination of order is a logical explanation based on a level of company abstraction towards operational tasks. The figure is the “ideal model of AMM”. The consideration is that the primarily goal of the whole system (the company) is to make profit to their share-holders. To make annual profit and also in the future, the system as a whole must be in balance as well the subsystems towards the (causal) related subsystem. Basic principle in the model is that the aspects increase each other to achieve their optimum. In this consideration the system is open, so positive environmental influences can stimulate the annual profit.

The question now is what these subsystems in the context of Asset & Maintenance Management are. With the system approach it is also possible to define the subsystems (the eight aspects). The consideration must be systematic (12pX), so the subsystems can be named. For Asset & Maintenance Management is the first condition that the first aspect (1) “Corporate/Company strategy” is recognized by the management. Several variables’ in this subsystem decided and supported by the board of directors, must support and create the conditions so the assets of the company can provide in the primarily process. Close related to the precondition created through the company strategy are the (2) functions that realize the company strategy. The variables are the assets, embraced by a certain reliability and availability so the production of the product. (3) The third subsystem with their variables is the results of failure of the functions and their impact on the system or environment. (4) To realize the preconditions of the former subsystems a defined maintenance concept is needed. The maintenance concept has to fulfill the preconditions of the three former subsystems. (5) The maintenance methods are the summarization of al well known maintenance methods or specific developed maintenance methods for their purpose. (6) The efficiently of the assets as part or a whole is a significant aspect. It represents of the assets produce their products for the lowest cost towards their input. (7) The seventh aspect is the financial aspect. In this subsystem al the financial matters will be embraced towards the former subsystems and the next subsystem. (8) The organization is a subsystem that is responsible that the six former subsystems can act on the most efficient way closed related towards the primarily system.

OptimalFunctioning

Assets

CorporateProfit

2.Functions

3.ImpactFailure

Function

4.Maintenance Concept

5.Maintenance Methods

6.Efficiency

7.Financial

8.Organisation

1.CorporateStrategy

R

S

S

S S

SS

S

S

S

S

S

S

S

S

S

S

S

S

S

S

B

B

Figure A3.3 The system approach of the eight aspects

Thesis Benjamin Stoker 56

In this consideration are the eight aspects seen as a part of the whole open system, represented as a subsystem, and not as an aspect system (18p30). Most important reason for this consideration is to make it possible grading ore scale the variables of the individual subsystems. With the grading or scaling it is possible to define the cluster of aspects, and it will be possible to visualize the causal connections. With those expressions of the causal connection between the variables of the subsystems, the aspects can be qualified and quantified. The qualification and quantification of the aspects made it possible to wind up the deduction phase.

8.1.2.2 Create propositions to define the hypothesis A reduced definition of testing research is to prove the hypotheses Baarda (59p106). The hypotheses are derived of the theory, where the theory is the sum of the whole of propositions or assertions about a part of the reality. In this context it is important that the theory:

- Has a logical coherence and is mutual not conflicting - Formulated that at least one empirical testing hypotheses can be derived - Is included of a mechanism that the “why’s” of the propositions or assertions

can be explains. In a testing research the propositions doesn't have to be discussed, only their plausibility. For the hypotheses a plausibility prove isn’t required, because the plausibility of the hypothesis blends into each other of the preceding propositions. Another condition that is required to the hypothesis is the verifiable prophecy of the hypothesis formulation. The formulation of the hypothesis must be defined is a way that concrete prophecies can be derived. To make it possible to work with the hypothesis, the hypothesis must be made operational. With operational is meant to make a concrete concept in measurable terms. Summarization: To perform a testing research;

1. The propositions has to be validated with literature, before the hypotheses can be defined.

2. The mechanism that’s explaining the “why” of the hypothesis. 3. The hypothesis must be formulated that there are verifiable prophecy’s can

be made. 4. Make the hypothesis operational.

Validation of the propositions

To define the hypothesis are the eight aspects (the aspects are the prepositions) defined and checked by literature on their plausibility. Proposition 1 If the corporate strategy is adjusting, the technical performance and condition must be adjusted.

Plausibility check; If the company strategy is adjusting in the context of the company objectives regarding Grant's point of view (app.6-14page 7), the maintenance management organization has to for fill those adjustments. For example; if the company strategy

Thesis Benjamin Stoker 57

is decreasing the quality of assets to save money, automatically the condition of the assets will decrease. Proposition 2 If the reliability getting better, the availability is optimal and maintainability perfect, the products produced by the technically functions are at their maximum. Plausibility check; When assets are at their maximum reliability, availability and maintainability, the only influence that can decrease the product are environmental influences (app. 6-25p117). Those influences can be costs of energy or basis products etc. Proposition 3 If the performance of the maintenance organization is decreasing, the impact of failures is increasing. Plausibility check; Mentioning the human error's paragraph of Cox & Thait (App.6-8p63), it is that if the safety culture of the company is increasing, the judgment of critical situations can’t be identified. Assets as well the employee would be harmed with production losses. Proposition 4 If the maintenance concept F.D.M (Failure Directed Maintenance) is introduced, there are no calamities because they are allowed. Plausibility check; According to the literature of Maintenance Management of the Moe education, it is allowed that a light tube of toilet is damaged when the concept is FDM. Proposition 5 If the maintenance method C.M. (Corrective Maintenance) is perfectly managed, the total costs of ownership will be decreasing. Plausibility check; Mentioning the literature of Value Driven Maintenance (App.6-5p130), “good” and proper repair will decrease the costs. Proposition 6 If the OEE (Overall Equipment Efficiency) is 100%, the energy balance is even 100%. Plausibility check; In the (ideal) situation that the OEE is 100% in the vision of TPM (App.6-6p61) means that the performance and condition of the assets are at their maximum. In this ideal situation, the energy that’s needed for the production process is concerted with 100% without loss.

Thesis Benjamin Stoker 58

Proposition 7 If the financial position of the company is devaluating, the investments in assets will be increasing. Plausibility check; Mentioning this proposition into the ALCA literature (App6-41), that if the company is devaluating from a Triple A status (AAA) to a triple C status (CCC) the costs of loans for investments are increasing. Proposition 8 If the organization is questioning driven organized, the OPEX costs are on their optimum. Plausibility check; Regarding the literature of Land (App.6-15p172), self directing teams will save cost because of the lack (and dispensable) management.

The mechanism that explains the hypothesis With the defining of the propositions and hypothesis, still the mechanism is not demonstrated. To demonstrate the mechanism, the eight propositions has to be combined as a whole towards the hypothesis. When we combine the eight propositions with the hypothesis the mechanism is that the eight propositions as a whole influence the hypothesis. Furthermore, it is acceptable that only one prospection influence the hypothesis. Of the influences are positive or negative is not the case. Verifiable prophecies A condition that also is dictated in a testing research is the verifiable prophecies of the hypothesis. The verifiable element in the hypothesis is the causal connection between the combination performance and technically condition versus the system that contains the maintaining organization. How the relation is scaled or is working out by adjustments of the systems is not relevant.

Making the hypothesis operational With the system approach are the eight aspects defined and putting together as shown in paragraph 8.1.1.1. Although the used model is a basic model, it is to abstract and are the aspect not quantified. The variables and equations that the aspects contain must be added to specify the aspects. To make the AMMIC more manageable, the model must be simplified and readable into a paradigm.

Thesis Benjamin Stoker 59

To make the AMMIC paradigm more manageable and recognizable, are the techniques that an aspect characterizes brought in.

In this simplified model are the aspects expressed by their techniques and the technique contains the body of thought of Asset & Maintenance Management. In this context, the output must qualify a scaled judgment of the Asset & Maintenance Management process. This process contains the A&MM realized by an own team, of total outsourced to contractors. Even in the situation that all the services of A&MM is outsourced; the AMMIC model must be able to qualify the concept on a scale of 0 – 100%. As shown in the figure are the eight aspects represented, and each aspect contains the most common techniques ore concepts. Because the AMMIC contains the body of thoughts, the model is spread out in 360o a aspect can also be seen as a direction. In this context, the AMMIC has eight directions (aspects and variables together), spread out in eight basic directions. The line of demarcation (system border) of the aspect systems is represented with the red border line. In this system al already the aspect related and proved. However, another important tool which support (qualitative) the relations, is the specific software. The specific software must not be confused with the normal the normal ERP (Enterprise Resource Program) software. This software provides in specific information, which is needed to bring quality in analyses and continuity. Those kinds of software are :

- QFD designer - FME(C)A software - Fault Tree Analyses software - RCM software

Conceptual model (paradigma phase deductive emeperical cycle) of the Asset & Maintenance Management Improvement Circle (AMMIC)

ERPTechnical Specific Software

Direction 1. Company Strategy v. Maintenance

Direction 2. Technically Functions

Direction 3. Impact Analyse

Direction 4. Maintenance Concept

System ApproachQuality Function Deployment

FME(C)AHAZOP

OPEXCAPEX

NEN 2767WLC

RAMSHEFTA

IDEF-0

FDMSGO

TDMTGO

CDMGGO

R&W CBM PDMCOR PM VDM RBI TPM TQM

OEE

Question or SupplyDriven

Direction 7. Financial

Direction 6. System Efficiency

Direction 5. Maintenance Methods

Direction 8. Organisation

Functional

ConditionAssets

Figure A3.4 The AMMIC model

Thesis Benjamin Stoker 60

- Financial software - Reliability engineering programs - Etc.

The second borderline embraces the aspects, but with the variables. The green system border line contains the “normal” ERP software. In this perspective, it contains the management information. To use and practice the AMMIC to asses the body of thoughts of Asset & Maintenance Management, the directions of the AMMIC model must be separate

quantified and qualified. The quantification per direction and the qualification of al the directions (expressed in a percentage) can be realized in two quality levels.

The first is the most quantitative approach. This means that al the variables directly imported to the VENSIM model. This approach is very time consuming, and knowledge of simulation software is necessary. So this approach is not manageable. Another approach is the so called “Quick-Scan”. In this situation each direction has a total score of maximum of 12.5%. The total score an addition) of the individual directions, qualifies the business unit or contractors.

Direction Aspect Question Variable Qualification Max PercentageDirection 1 Strategy 1 Is the costumers wich translated in a proper QFD 20 20Direction 1

Strategy2 Is the compagny proces transformed in a system

pofile, related towards other aspects and variabeles 20Direction 1 Strategy 3 Are there long term objectives 20Direction 1 Strategy 4 Are there simple and agreed objectives 10 20Direction 1

Strategy 5Is there a profound understanding of the competive environment 35 20

Direction 2 Technically functions 1 Is the reliability of system defined and agreed 10 17Direction 2 Technically functions 2 Is the availability of system defined and agreed 10 17Direction 2 Technically functions 3 Is the maintainability defined and agreed 10 17Direction 2 Technically functions

4Are the Safety, Helh and environment isseus defined and agreed 10 17

Direction 2 Technically functions 5 Is there a Function Tree analyse 17Direction 2 Technically functions 6 Are the basis processes noted with I-DEF0 35 17Direction 3 Impact analyses 1 Is there a HAZOP analyse 20 50Direction 3 Impact analyses 2 Is there a FME(A) analyse 20 50Direction 4 Maintenace Concept 1 Is there a FDM concept 20 10Direction 4 Maintenace Concept 2 Is there a TDM concept 10Direction 4 Maintenace Concept 3 Is there a CDM concept 25Direction 4 Maintenace Concept 4 Is there a mixture of concept ? 50 55Direction 5 Maintenance Methods 1 Are the RW respected 10 5Direction 5 Maintenance Methods 2 Is the CBM method used 10 5Direction 5 Maintenance Methods 3 Is the PDM method used 5Direction 5 Maintenance Methods 4 Is the CORmethod used 5Direction 5 Maintenance Methods 5 Is the PM method used 5Direction 5 Maintenance Methods 6 Is the VDM method used 5Direction 5 Maintenance Methods 7 Is the RBI method used 5Direction 5 Maintenance Methods 8 Is the TPM method used 5Direction 5 Maintenance Methods 9 Is the TQM method used 10 5Direction 5 Maintenance Methods 10 Is there a mixture of methods?> 10 50Direction 6 System effcientie 1 Are al the energy flows measured 20 25Direction 6 System effcientie 2 Is the ideal energy flow agreed 10 25Direction 6 System effcientie 3 Is there a energy equation (balance) 50 25Direction 6 System effcientie 4 Are the results exported to other directions ? 25Direction 7 Finance 1 Are there compagny rules for interpertaion CAPEX 17Direction 7 Finance 2 Are there compagny rules for interpertaion OPEX 17Direction 7 Finance 3 Is the IRR related to the long term vision 17Direction 7 Finance 4 Is the A/P diagram agreed of the NEN 2767 20 17Direction 7 Finance 5 Is the condition (Cv) agreed 30 17Direction 7 Finance 6 Are WLC rules defined 0 17Direction 8 Organisation 1 Is the organisatio Question driven ? 5 20Direction 8 Organisation 2 Is the education level up to date 5 20Direction 8 Organisation 3 Is the organisation capable for Question driven 5 20Direction 8 Organisation 4 Is the organisation capble to handle the analyse data 20 20Direction 8 Organisation

5Is the organisation right posisioned in the organisation structure 50 20

Table A3.1 Results questionnaire AURA scan

Thesis Benjamin Stoker 61

In the table A3.2 is an example how after fill in the form in figure A3.1. The total score of the table A3.2 is 505, and on a scale of 100% the overall scale is 50.5%. In this situation there are several goals to improve.

As resumed in the thesis proposal, a scientific founded all- embraced paradigm or model of Asset Management & Maintenance Management (AMM) is not available in the present literature. The models that are been discussed or proven in the literature, are mostly specific and concrete aimed towards one aspect of AMM like reliability, availability, whole life costing, RCM, TPM etc. To come close to a paradigm, the AMMIC (Asset Management & Maintenance Management Improvement Circle) provides to enclose the basic aspects so practical AMM on assets can be qualified. Purpose of the AMMIC is to judge the whole system that’s embraced maintenance management of assets, in quality and quantity for operational assets.

8.1.2.3 Test the hypotheses and prove the plausibility of the hypotheses. The “ideal model of A&MM” as shown in figure A3.4, can be classified as a conceptual model (App.6-16p56). The conceptual model is a powerful tool to combine (and present) the coherence or patterns in a complex system with several outcomes of the sub- or aspect systems. In this paragraph will be the conceptual model of the “ideal model of A&MM” validated. As validation method will be used the looping technique as described in paragraph 5.1.

For the validation of the AMM model are the following research processes used: 1. The first research process considers the direct relation between the eight

aspects, in order as shown in paragraph 5.1. 2. The second research process considers the direct relation between the variables

of the aspects in order as shown in paragraph 5.1. 3. The third research process considers the causal relation between the variables

of the aspect, but in random order. To use the looping technique are the next steps applied;

1. Of every individual aspect is chosen a variable 2. The chosen individual variable must randomly of character 3. The cause and consequence must be reinforcing (S) of character 4. The effect on the consequence must be positive 5. The Looping technique must have all a balanced feedback process

Quic Scan AMMIC

020406080

100Direction 1 Strategy

Direction 2 technically Functions

Direction 3 Impact Analyses

Direction 4 maintenace concept

Direction 5 Maintenance Methods

Direction 6 System efficiency

Direction 7 Finance

Direction 8 Organisatie

Table A3.2 Spider results AURA scan

Thesis Benjamin Stoker 62

8.1.2.4 The direct relation between the aspects in successive order of the ideal A&MM model.

In paragraph 5.2 are the eight basic aspects named of A&MM. For the consistency of the research processes, it is necessary to name at least one relation between the successive aspects. Because there are several direct and indirect relations between the aspects, only the most dominant relation will be named. The intensity of domination is defined based on literature.

The relation between aspect 1 and 2 of the AMMIC concept Aspect 1 (The company strategy) is the aspect system that contains in according to the system methodology, al the variables defined in starting points and primary goals of the company. Those variables can be the annual realized profits, new generation’s of products to produce or expansion of the market. For the A&MM there are typical variables like the limitations of the operational costs, costs per unit product, availability of the machine lines, safety, etc. more important. To concretize the variables of the company strategy (the customer's wish) can be used the Quality Function Deployment (QFD). With the QFD (App.6-24p21) method it is possible to define the preconditions expressed in variables, so with the visualization, quantification and qualification it is possible to generate technically preconditions for the functions in line with company strategy. Aspect 2 (technically functions) is the aspect system that contains all the assets that are necessary to produce or realize. The variables of this aspect can be aspect system reliability, aspect system availability of reliability of function considered in point of view of maintainability.

Example; A company produce engine’s for motorbikes. The next year a new model will be entering the market with high expectations, and already five hundred al sold. The output of the machine line is six hundred units a year. So when the aspect system availability is brought in perspective of “up-time” expressed in minutes of machine lines must be having certain availability. In this consideration, the company defines his customers wish to the functions of that same company to realize goals.

The direct relations between to two aspects are that the company defines the quality and quantity of the output and the assets. The relation between aspect 2 and 3 of the AMMIC concept Aspect two is already discussed. Aspect 3 (Impact analyses) is the aspect system that defines the impact if the function fails towards the system as a whole. The direct relation between the second and third aspect, is the fact that the variables of the second aspect limited so failures can be determined.

Example; In the former aspect is already al variable of an aspect illustrated what the benefits are of a defined availability of machine line related towards the company strategy. It is possible to draw this line into the aspect impact analyses. Although the productivity and availability of

Thesis Benjamin Stoker 63

the machine line is granted, the impact of unscheduled downtime isn’t considered. With the FMEA or HAZOP technique it is possible to determine the impact of technical failures and the SHE act, and which function will become in a steady state. With the results of the analysis it is possible to anticipate preventing failures.

Failures of functions on the system as a whole, aspect or subsystems or safety aspects can be concretize and determined with Failure Mode and Effect Analyses (FMEA) or Hazard an Operability (HAZOP).

The relation between aspect 3 and 4 of the AMMIC concept Aspect three is already discussed. The fourth aspect (Maintenance concepts) is the aspect system that defines which concept of maintenance; the most fitting is for a maintenance situation. There are three basic maintenance methods; (App.6-40)

1. Failure Directed Maintenance (FDM) 2. Time(use) Directed Maintenance (TDM) 3. Condition Directed Maintenance (CDM)

The direct relation between the aspects is that the output variables of the third aspect, determined which maintenance concept is necessary.

Example; Even as shown in the former example, it is also possible to draw the line of the former example. In this consideration are in order several variables of the aspects Strategy, Technically functions and impact analysis determined. With the results it is possible to define the maintenance concept, and to make the best fitting decision of a maintenance concept. Our machine line has now given from the company

The relation between aspect 4 and 5 of the AMMIC concept Aspect four is already discussed. The fifth aspect (maintenance methods) is the aspect system that defines which method of maintenance, the most fitting is for a situation. There are several well known maintenance methods like for example, Value driven Maintenance (5), Total Productive Maintenance(6), Conditioning Based Maintenance (7) etc. All those maintenance methods are based on their own specific principals for use. The direct relation with the fourth aspect is that the variable of the fourth aspect prescribes which method or methodology (mixture of methods) is the best fit.

Example; Even as shown in the former example, it is also possible to draw the line of the former example. In this consideration will be chosen for the right fit, as result of the former aspects. A simple example is the board of director’s decision that in a certain year the whole finance capacity of the company, is needed for an aggressive takeover of an other company. To create (OPEX) money, only corrective maintenance a method will be use. The realized savings are preventive maintenance and predictive maintenance. It no doubt that those kinds of decisions are incidental.

The relation between aspect 5 and 6 of the AMMIC concept Aspect five is already discussed. The sixth aspect Overall Equipment Effectiveness (OEE) is the aspect system that defines how the installations perform. The

Thesis Benjamin Stoker 64

performance of the installations can be expressed in a produced unit per unit raw material/unit machine/energy/square meter. The basic relation between the fifth and sixth relation is the quality, the match and the realization of the maintenance methods. If the selected maintenance method ideal performs, the installations will produce their ideal amount of products.

Even as shown in the former example, it is also possible to draw the line of the former example. To realize products against the lowest costs then, a perfect mix of strategy, (technically) functions, Impact analyses, maintenance concept and maintenance methods is necessary. In this example are the purchase of materials and energy is constant or dimensionless, to create the ideal equation of performance.

The relation between aspect 6 and 7 of the AMMIC concept Aspect six is already discussed. The seventh aspect Financial is the aspect system that defines the financial consequence of (all) the former aspect. The financial aspect system is directly related with the aspect OEE because the financial aspect, prescribes the conditions when, how and kind of type of assets will be (re)placed with what kind of quality or quality.

Example; Even as shown in the former example, it is also possible to draw the line of the former example. The financial direction embarrasses all the financial matters of the company. A specific example in the former case, are the decisions to make when machine’s has to be replaced. The financial consequence of the former aspect, have impact on the decision.

The relation between aspect 7 and 8 of the AMMIC concept Aspect seven is already discussed. The eight aspect organization is the aspect system that defines the organization that has to realize the goals of the A&MM organization. This aspect system is direct related with the financial aspect system, because of the fact only the organization can anticipate on the results of the variable of the financial aspect.

Example; Even as shown in the former example, it is also possible to draw the line of the former example. Possibly this aspect is the most dominated of all other named aspect. In this case the organization and namely the employees) has to realize the goals of al the former aspect. Theoretical they have to deliver the theoretical performance. In this equation the organization has to anticipate on all former aspects.

Conclusions paragraph 8.1.2.4. In this subparagraph is proven that the eight aspects which are divided in an aspect or subsystems, the aspect systems are related to each other. The proof of the consideration of the conclusion lies mainly in the referred literature by aspect, as shown in appendix 6

Thesis Benjamin Stoker 65

8.1.2.5 The direct relation between the variable’s of the aspect

In the former paragraph are quite simple the relations of eight successive aspects. To make is consistent, it is necessary deliver the prove that the variables of the aspect are related (ore connected) to each other. Furthermore, the approach is “not consequent”. This means that the first chosen variable of an aspect cannot be the research. Different variables will be chosen to make the equation between the aspect.

The relation between the variables of aspect 1 and 2 of the AMMIC concept l On average, strategic choices are abstract and not concrete. Mostly, the strategically aspect is difficult to express in equations or formulas. To bridge this gap, the QFD will be introduced. With QFD it is possible to specify the “Whats” and the “Hows” in a matrix. So when for aspect 1 (strategy) a specific strategically the objective variable is reliability expressed in a “House of Quality graph”, the variable reliability can be transported to the technically function variable reliability. With this method it is possible to visualize and concretize the voice of the customer (in this case the voice of the management) in variables or equations, which is necessary for the second aspect. In the second aspect reliability is concrete and the reliability of an aspect system can be expressed as the equation:

Reliability teR λ−= (App.6-4 equation 6.25)

The relation between the first and second of the reliability equation are the time variables (t) and the failure rate (-λ ). Both the aspects embrace the equation, only with different goals. For the aspect strategy, the reliability of a product is related to market strategy of effective strategy implementation (14p7). For the technically function, the time and failure rate variables are necessary to qualify the quality of a produced product.

Maintainability teM µ−−=1 µ1

=MTTR (App.6-1p290)

The relation between the variables of aspect 2 and 3 of the AMMIC concept Even like in the former approach between the variables of aspect 1&2, a variable of the aspects 2&3 will be chosen and compared. In this situation the variable FTA and the variable FMEA will be compared. The variable of the second aspect, FTA analysis, is a deductive “what can cause this” approach and identify the causal relationships leading to a specific system failure mode. The FME(C)A is (like FTA) a step-by-step procedure for the systematic evaluation of severity of potential failure modes in a system. The relation between the variables of the both aspects is the fact both methods are used to find a probability of a “top-event” of failures. An FME(C)A applying appropriately failure rates for each failure mode where quantification is required, FTA defines the probability of system failures with the equation:

)2()1( WsWsWs −= (App.6-1 equation 7.18). )1( qWs −= λ

By the FME(C)A are also failure and severity rates used, but only in ranges like:

Failure

1. Very low <0.01.failures/yearear 2. Low 0.01 – 0.1 failures/year

Thesis Benjamin Stoker 66

3. Medium 0.1 – 1.0 failures/year 4. High >g1;failure/yearear

Severity

1. Severity 1 – No effect 2. Severity 2 – Reduced output 3. Severity 3 – No output 4. Severity 4 – Major equipment damage

By using a operational mode based on severity A significant difference is the fact that FTA is based on logical gates (AND/OR) to break-down the system structure, in contrast of the FME(C)A method where the equipment is breaking down in into a component or sub-assembly blocks.

The relation between the variables of aspect 3 and 4 of the AMMIC concept Even like in the former approach between the variables of aspect 2&3, a variable of the aspects 3&4 will be chosen and compared. In this case the variable HAZOP, will be related with the maintenance concept Failure Directed Maintenance (FDM). Both the variables give an output based on risk and impact. Considering a simple light bulb in a class room, what will fail. Under the condition it is in daytime and part of fifty other light bulbs the HAZOP approach proves that a failure of the light bulb will not harm a process. In this context whiteout doing a HAZOP study, the maintenance concept FDM was chosen. When the light bulb was stopping functioning, just another day the light bulb will be replaced.

The relation of the two aspects is the fact that the results of both variables, the impact of failure is negligible. Major difference between the variables is the fact that a HAZOP study is designed to predict the situation, and FDM is a chosen concept which not is designed to predict. Although in case of FDM it seems that there no logical fundamental justification is for the choice. However, in case the choice is made by trail an error or by best practices within the system borders. In this case the chosen method is justified with as result a predicted outcome.

The relation between the variables of aspect 4 and 5 of the AMMIC concept Even like in the former approach between the variables of aspect 3 & 4, a variable of the aspects 4 & 5 will be chosen and compared. In this case the variable Conditioning Directed maintenance will be related with the variable Conditioning Maintenance. This relation is very concrete because of the terms “condition”, in both variables. In this relation the condition of assets dominates the relation. If in this case the condition of an asset will be described with the NEN 2767, both variables will have the same interpretation of condition. The relation between the variables of aspect 5 and 6 of the AMMIC concept Even like in the former approach between the variables of aspect 4 & 5, a variable of the aspects 5 & 6 will be chosen and compared. In this case the variable OEE of the system efficiency aspect will be related with the variable Corrective Maintenance. In this case technical functions (machines) are in normal operation modes. When there are corrective maintenance jobs, they will be easily solved. However, with only corrective maintenance the performance and condition of assets will be decreasing, and also the performance. That makes that the quality of corrective maintenance is linear related with the system efficiency.

Thesis Benjamin Stoker 67

The relation between the variables of aspect 6 and 7 of the AMMIC concept Even like in the former approach between the variables of aspect 5 & 6, a variable of the aspects 6 & 7 will be chosen and compared. In this case the variable OEE of the system efficiency aspect will be related with the variable Whole Life Costing. This relation is quite concrete. When we take the IRR (Internal Rate of Return) as sub-aspect system as variable of WLC against OEE, the relation will be the investments (CAPEX). The IRR effect on the CAPEX is influence mainly the decision when assets will be replaced. With a high IRR, the replacements based on lifetime or performances can pass on to the next year.

The relation between the variables of aspect 7 and 8 of the AMMIC concept Even like in the former approach between the variables of aspect 6 & 7, a variable of the aspects 7 & 8 will be chosen and compared. In this case the variable NEN 2767of the financial aspect will be related with the variable CAPEX. The variable NEN 2767 gives direction to realize a proper, transparent and conveniently arranged interpretation of the next year replacement budget. The condition score on a six scaled measurement of the installation dominates the interpretation. The CAPEX budget will be mostly used for investments to stretch the life cycle or replacement of assets. The direct relation is that when the condition of the assets decrease for example from a three to a four, it means that the next year CAPEX budget is needed to bring back the desired condition level.

Conclusions paragraph 8.1.2.5. In this subparagraph is proving that the variable which represents one of the eight aspects is directly related to each other. The argumentation of the direct relation of the variables, are proven by equation or a linear relation. The proof of the consideration of the conclusion lies mainly in the referred literature by aspect, as shown in appendix 6.

Thesis Benjamin Stoker 68

8.1.3 Testing the conceptual model Testing the conceptual model implies that the questionnaire of the AMMIC as described in paragraph 8.1.2.2, will be applied on the present maintenance contract. The results of this test can be compared with the results in practice.

8.1.3.1 Testing the present datacenter Maintenance management contract

Testing results questionnaire present maintenance management contract;

Direction Aspect Question Variable Qualification Max pointDirection 1 Strategy 1 Is the costumers wich translated in a proper QFD 17Direction 1

Strategy2 Is the compagny proces transformed in a system

pofile, related towards other aspects and variabeles 15 17Direction 1 Strategy 3 Are there long term objectives 15 17Direction 1 Strategy 4 Are there simple and agreed objectives 15 17Direction 1

Strategy 5Is there a profound understanding of the competive environment 10 17

Direction 1Strategy 6

Are there KPI's and SLA's on corperate level, which can be transported in to the maintenance operations 17

Direction 2 Technically functions 1 Is the reliability of system defined and agreed 0 17Direction 2 Technically functions 2 Is the availability of system defined and agreed 10 17Direction 2 Technically functions 3 Is the maintainability defined and agreed 17 17Direction 2 Technically functions

4Are the Safety, Helh and environment isseus defined and agreed 10 17

Direction 2 Technically functions 5 Is there a Function Tree analyse 17Direction 2 Technically functions 6 Are the basis processes noted with I-DEF0 17Direction 3 Impact analyses 1 Is there a HAZOP analyse 50Direction 3 Impact analyses 2 Is there a FME(A) analyse 50 50Direction 4 Maintenace Concept 1 Is there a FDM concept 20 10Direction 4 Maintenace Concept 2 Is there a TDM concept 10Direction 4 Maintenace Concept 3 Is there a CDM concept 25Direction 4 Maintenace Concept 4 Is there a mixture of concept ? 55 55Direction 5 Maintenance Methods 1 Are the RW respected 5 5Direction 5 Maintenance Methods 2 Is the CBM method used 5 5Direction 5 Maintenance Methods 3 Is the PDM method used 5 5Direction 5 Maintenance Methods 4 Is the CORmethod used 5 5Direction 5 Maintenance Methods 5 Is the PM method used 5 5Direction 5 Maintenance Methods 6 Is the VDM method used 5Direction 5 Maintenance Methods 7 Is the RBI method used 5Direction 5 Maintenance Methods 8 Is the TPM method used 5Direction 5 Maintenance Methods 9 Is the TQM method used 5Direction 5 Maintenance Methods 10 Is there a mixture of methods?> 50 50Direction 6 System effcientie 1 Are al the energy flows measured 20 25Direction 6 System effcientie 2 Is the ideal energy flow agreed 25Direction 6 System effcientie 3 Is there a energy equation (balance) 25Direction 6 System effcientie 4 Are the results exported to other directions ? 25Direction 7 Finance 1 Are there compagny rules for interpertaion CAPEX 17Direction 7 Finance 2 Are there compagny rules for interpertaion OPEX 15 17Direction 7 Finance 3 Is the IRR related to the long term vision 17Direction 7 Finance 4 Is the A/P diagram agreed of the NEN 2767 17Direction 7 Finance 5 Is the condition (Cv) agreed 17 17Direction 7 Finance 6 Are WLC rules defined 0 17Direction 8 Organisation 1 Is the organisatio Question driven ? 0 17Direction 8 Organisation 2 Is the education level up to date 10 17Direction 8 Organisation 3 Is the organisation capable for Question driven 5 17Direction 9 Organisation

4Are the KPI's and SLA of the compagny strategy connected with the organisation ? 15 17

Direction 8 Organisation 5 Is the organisation capble to handle the analyse data 20 17Direction 8 Organisation

6Is the organisation right posisioned in the organisation structure 17

Interpretation of the results The results of the spider diagram indicate several lacks in the asset and maintenance management contract, and there are several directions to improve. Regarding the impact by failure and the impotency of the contract implies that several initiatives are necessary.

Thesis Benjamin Stoker 69

AURA Scan AMMIC

0

25

50

75

100Direction 1 Strategy

Direction 2 Technically Functions

Direction 3 Impact Analyses

Direction 4 maintenace concept

Direction 5 Maintenance Methods

Direction 6 System efficiency

Direction 7 Finance

Direction 8 Organisatie

8.1.3.2 Reliability testing the conceptual model

Reliability To increase the reliability of the test is also triangulation applied by set-up the questionnaire with;

- The designer of the contract. - The operational crew on location. - The contract manager of the contract.

The three independent results must be in line and a minimum margin of 5% per individual question. Validity To confirm the validity of the results of the scan, are the results of the scan compared with the plan of action of the contractor with document code GSH-SO8005-1. This plan contains the improvements as measured with the AMMIC and start up in November 2008 in practice.

8.2 Conclusion

With the test results is proven that the theory as described in paragraph 8.1.1 is reliable and valid. With the expression of the theory in the AMMIC model it is now possible to give head to the problem definition.

Thesis Benjamin Stoker 70

9 Appendix 4: Results of phase 3 “Interpretation and Apply“ Regarding appendix 1will be described in the third phase the ideal Asset & Maintenance Management contract for data centers. In this paragraph are the described process steps of appendix 1 further elaborated. The process contains the next process steps;

1. Designing/define the ideal Asset & Maintenance Management contract based on the AMMIC model.

2. Describe in headlines an implementation plan of the contract. 3. Describe the feedback towards the theory deductive phase 4. Describe the feedback towards the theory inductive phase

9.1 Design of the ideal maintenance management contract

In this paragraph are the procedure steps taken as described in appendix 1 to create the ideal Asset & Maintenance Management contract for data centers. It is not the aim of this description to describe al the needs the practice a maintenance concept. The aim of a maintenance management contract is to describe the objectives, service levels, performance indicators, formulas that described the targets etc.

9.1.1 Direction 1; Describe the company strategy versus the maintenance strategy

9.1.1.1 The voice of the customer defined with the QFD approach

Referring the appendix 1, an importation direction of the AMMIC process is the strategy direction. With this direction can be fixed the “needs” of what the maintenance contract, the customer and the contractor unit has to for fill. To translate and concretize a company vision, objectives and targets the Quality Function Deployment [24-11] method can be used. QFD is a method for structured product planning and development that enables a supplier to specify clearly the customer’s wants and needs, and then to evaluate each proposed product or service capability systematically in terms of its impact on meeting those needs. The QFD process involves constructing one or more matrices (quality labes). The first of these matrices is the “House of quality” (HOQ) as shown on in figure A4.1. The figure displays the customers (internal-external) wants and

Figure A4.1 Example of “house of quality”.

Thesis Benjamin Stoker 71

needs (The voice of the customer) along the left side of figure. And the supplier’s technical response to meeting those wants and needs along the top. The matrix consists of several sections or sub matrices joined in various ways, each containing information related to the others. Each of the labeled sections (How / Direction improvement / What / How Much / etc), is a structured, systematic expression of a product process suppliers understanding of an aspect, the service, process etc. The lettering sequence suggests one logical sequence for filing in the matrix. Short explanation figure A4.1 The WHAT on the left side contains a structured list of customer’s wants and needs. The Customer Assessment contains three types of information:

- Quantitative market data, which indicating the relative importance of the wants ands needs to the customer, and the customers’ satisfaction levels with the organization’s and its competition’s current offerings.

- Strategic goal setting for the new product - Computations for rank and ordering the customers want and needs.

The top contains, the suppliers technical language, a high-level description of the product or service they plan to develop. The middle contains the supplier’s judgment of the strength of the relationship between each element of their technical response and each customer want and need. The Roof contains the technically correlations, is halving is a square matrix, split along its diagonal and rotated 450. Since it resembles the roof of a house, the term House of Quality has been applied to the entire matrix and has become the standard designation for the matrix structure. The Roof contains the supplier assessment of the implementation interrelationships between elements of the technical response. The Bottom contains three types of information;

- The computed rank ordering of the technical responses based on the rank ordering of customers wants and needs from the customers assessment and relations with the middle matrix.

- Comparative information on the competition’s technical performance. Importing the data into the QFD Used data for the QFD-process is the annual data report 2008, the results of the interviews made in the inductive phase and parts of the literature study made in phase two. The results of the imported data are represented in figure A4.2. Interpretation and results of the QFD The QFD approach combined with the interview are given a properly description of the customers whish. For the maintain organization are three objectives;

- Continuity of the business realized by continuity of the technical installations. - Increasing performance. - Reduction of cost.

These three abstract aims have to for fill the maintain organization with improving the maintenance concept. How to realize these aims by the maintain organization is to redesign and refit the maintenance concept.

9.1.1.2 The results of QFD in a system approach perspective When the three company objectives are considered with the system approach is it important to bring in the looping technique, and define where the causal connections of the AMMIC can be optimized in the “same” effect toe reinforce the eight aspects. Because of the fact that the most maintenance services are outsourced, the first consideration must be how the customer and contractor are working with each other. The relation between the customer and contractor is embedded in the

Thesis Benjamin Stoker 72

contract type. To choose the right contract type to realize the aims of the corporate strategy and put in reinforce elements in al the aspects must be the contract; - Compact and clear, the corporate CPI’s SLA” must be embedded in the

maintenance organization - The responsibility of the technical continuity is a contractor matter - The relation must be managed with a small demand organization by the

customer. - Low cost maintenance methods must be embedded in the contract type - The contract type must be guaranteeing the most optimal system effectiveness - The contract must be giving the customer a manageable OPEX and a

predictable CAPEX. - The contract must be continuous improve themselves.

To achieve the aim and targets and create reinforcement loops in the contract, it is necessary that the contractor has the opportunity to employ his profession in combination with agreed maintenance techniques.

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KPN Annual report 2008"Back to growth"

Figure A4.2 The QFD of the annual report KPN 2008

Thesis Benjamin Stoker 73

9.1.1.3 Conclusion & validity check

To choose the right contract type to realize the aims of the business strategy is the guarantee contract type. The nature of this contract type is giving the contractor elbow-room to bring, their profession. Important for this situation is that the business-strategy requires clearly described objective of the technically functions, so the reliability, availability, maintainability etc must be clearly described in the contract. Another point of special interest is the body of thoughts of the contract type versus the business strategy. To get the right mindset it is important that the aim of the chosen contract type is described in the introduction. Validity check conformable with the AMMIC questionnaire According to the AMMIC principals of the questionnaire of direction one, can be checked if the right approach is chosen to determine the customers wish and specify

with the content questions of direction one correct is applied. By checking the question of direction two can be concluded that all the variables are named, and a framework designed for the contract.

9.1.2 Direction 2; Define the technical functions and describe the output specifications

With the results and conclusion of direction one, is prescript that the performance of the technical functions has the precisely described in the contract. This description must be seen in the context of a contract description. The variables are meant as framework for the technical function, are the translation for the term continuity in the customers wish as visualized with the QFD model. The variables are;

1. Reliability 2. Availability 3. Maintainability 4. Safety 5. Health 6. Environment.

Whit the RAM specification is defined what the specifications are (or must be) to achieve the aims, goals and objective of the business strategy and are the fundamentals for the design of the maintenance management contract. More important are the results of the RAM specifications because they are a part of the CPI’s and SLA’s. Besides the RAM speciation’s as productivity criteria are there also the specifications as Safety, Health and Environment. In the next sub paragraphs will be the specifications of the technically functions determined with for each specific domain the best fitting approach.

Direction Aspect Question Variable Qualification Max pointDirection 1 Strategy 1 Is the costumers wich translated in a proper QFD 17 17Direction 1

Strategy2 Is the compagny proces transformed in a system

pofile, related towards other aspects and variabeles 17 17Direction 1 Strategy 3 Are there long term objectives 17 17Direction 1 Strategy 4 Are there simple and agreed objectives 17 17Direction 1

Strategy 5Is there a profound understanding of the competive environment 17 17

Direction 1Strategy 6

Are there KPI's and SLA's on corperate level, which can be transported in to the maintenance operations 17 17

Figure A4.1 Validity check questionnaire direction 1

Thesis Benjamin Stoker 74

9.1.2.1 Functional decomposition technically functions. Important is to define which functions are necessary to achieve the aim and objectives of the business strategy. To define and describe the main functions of the needed technical installations can be used the Hamburger Method. With this approach can be easily the needed functions defined.

As result of the functional decomposition can be recognized for cooling as well for electrical power the critical systems. With this functional decomposition with the Hamburger Approach are for cooling three suppliers and for electrical power four recognized. Both needs (Cooling and power) are essential to fill in the customers wish as described in the QFD where the technical approach reliability falls apart in the technical concepts Reliability, Availability and Maintainability (RAM). With these concepts, it is possible to define and describe concrete the needed specifications. With making the RAM specification concrete (and later Safety, Health and Environment) are the fundamentals created for the needs to realize the aims of the business strategy. To translate the concrete RAM specifications into a measurable point for the contract, it is not necessary to define and describe a fully and scientific underpinned a mathematical concept. For the contract between customer and supplier, it is necessary to point out the interfaces where the agreed RAM specifications are based on. In this context it is important to define the RAM specifications and their mathematical underpinning so that it will be clearly what the deliverables are. As discussed contains the AMMIC model several approaches to define the specifications, so it is possible to choose the best fitting concept. In the next paragraphs is explained which approach is chosen with the argument why.

Uptime servers

Business strategy

Cooled Air

Temperture

230 V AC and 48 V DC

ElectricalPower

Functional decomposition Cooling and Power system

Power 230 V

PowerEnergy

compagny

Batterys

Power48V

Dynamic

Emergency power supply

Static

Emergency power supply

Lake

Ext. Cooling Energy

compagny

Mobile Cooling Supply

Emergency Cooling

Local chillers

Chillers

Figure A4.3

Thesis Benjamin Stoker 75

9.1.2.2 Description Reliability The aims and the basic approaches of reliability are already discussed in the paragraph 8.1.1.1. In this paragraph will be shown which interfaces can be defined and make them measurable. Based on the functional decomposition in figure A4.3, can be recognized which primarily functions are needed to realize the primarily needs. In this concept the functional concept falls apart into two designs, the decomposition for cooling and the decomposition for the power supply. This means that for cooling as well for the power supply they have to be decomposed into figures where the interfaces can be defined, and build up to a total reliability factor. To define the mathematical reliability factor it is necessary to choose a mathematical approach. Important is to use the right interpretation of the reliability approach based on the equation;

Reliability tetR λ−=)( (App.6-4 equation 6.25) To increase the quality of the reliability mathematics, is used the Weibull distribution with two parameters. The advantage of the Weibull approach is the fact that the failure rate is assumed to be correlated with the condition parameter time (t). The two parameters are β (Beta) and η (Eta), where η defines the intrinsic state time (characteristic life) of system parts and β defines the time behavior of the hazard rate in a life time perspective. The power law assumption of failure rate leads to the following probability density function, cumulative distribution and reliability:

Probability density function

β

ηβ

ηηβ ⎟⎟

⎞⎜⎜⎝

⎛−

⎟⎟⎠

⎞⎜⎜⎝

⎛=

t

ettf1

)( (App.6-4 equation 6.69)

Cumulative distribution function

β

η ⎟⎟⎠

⎞⎜⎜⎝

⎛−

−=t

etF 1)( (App.6-4 equation 6.70)

Reliability

β

η ⎟⎟⎠

⎞⎜⎜⎝

⎛−

=t

etR )( (App6.-4 equation 6.71) Note of the author In named equations represents the β the, and θ the η when reading the named literature. In the used probability calculations are used for the intrinsic state times η (life times of a system part) the life times as described in the NEN 2767. The reliability equation will be specific used to find the right maintenance concept and maintenance method. Another consideration is the reliability of the system as a whole. For this approach are been used the product rule for series and parallel systems, that are expressed respectively;

The series systems ∏=

=n

ii tRtRsys

1

)()(

The parallel systems ))(1(1)(1∏=

−−=n

ii tRtRsys

Thesis Benjamin Stoker 76

The cooling system Mentioning the introduction of this paragraph are after decomposition two main system that provides the basically needs to let function the server(s). To solve the

problem that the functional decomposition is getting useable for defining the reliability, is the cooling system drawn up into a more readable design where redundancy is simple to recognize and the reliability interfaces can be pointed out. Figure A4.5 represents the cooling system where the reliability interfaces are pointed out and the redundancy is drawn up. With this figure can be for each interface the reliability defined and described. The philosophy of this figure is to define for the contract enough parameters to manage the system reliability, so in

this situation

Chiller 1

Chiller 1

Chiller 1Redundant

PumpRedundant

Condensor 1

Condensor 2

Condensor 3 Redundant

PumpPump

PumpRedundant

ReliabilityInterface

AND Availability Interface

No E1

ReliabilityInterface

AND Availability Interface

No D1

ReliabilityInterface

AND Availability Interface

No C1

ReliabilityInterface

AND Availability Interface

No B1

ReliabilityInterface

AND Availability Interface

No A1

Cool unit

Cool unit

Cool unit

Cool unitRedundant

Functional break down Cooling systemExternal CoolingEnergy

Compagny

External Cooling

EmergencyMobile cooling

Figure A4.4 Interface cooling system

ACondensors

BPumps

CChillers

DPumps

ECoolunit

FExt. Cooling

GMob.Cooling

Interface A1Interface B1Interface C1Interface D1Interface E1

Figure A4.5 Breakdown interface cooling system

Thesis Benjamin Stoker 77

there are seven interfaces where the contractor has to guarantee a defined reliability. Another function of the reliability interface is that the reliability influences the operational costs. To make for the contract the reliability SMART and measurable, figure A4.4 has to be transformed in a network system. In figure A4.5 is the cooling system transformed, and can be Blok A condensers R = 96% Interface E1 R (15 years) = 96% Blok B Pumps R = 96% Interface D1 R (15 years) = 92% Blok C Chillers R = 96% Interface C1 R (15 years) = 88% Blok F Ext. Cooling R = 96% Blok G Mob. Cooling R = 96% Blok D R = 96% Interface B1 R (15 years) = 99% Blok E Cool unit R = 96% Interface A1 R (15 years) = 92% The power system To define the reliability interfaces of the power system can be used the same approach equal to the cooling system. The results are; Energy company R = 99% Interface E1 R (15 years) = 98% No-breake active R = 98% Interface D1 R (15 years) = 98% No-breake Passive R = 98% Interface C1 R (15 years) = 98% Battery capacity R = 99% Interface B1 R (15 years) = 98% Main power system R = 98% Interface A1 R (15 years) = 92%

ReliabilityInterface

AND Availability Interface

No D1

ReliabilityInterface

AND Availability Interface

No C1

ReliabilityInterface

AND Availability Interface

No B1

ReliabilityInterface

AND Availability Interface

No A1

Functional break down Power system

ReliabilityInterface

AND Availability Interface

No E1

Battery Capacity48V 230V

No-Breake Passive

No-Breake Active

Energy Compagny

Main Power supply

Figure A4.6

Thesis Benjamin Stoker 78

9.1.2.3 Description Availability The definition of availability can be expressed as the ability of an item under the combined effects of reliability, maintainability and maintenance support to perform its required function for state period of time or at a given point in time. In contrast to reliability is availability more concrete and tangible. In global terms availability is concerning with determining in quantitative terms the amount of time that a system is available for production during a specified of time. In the situation for datacenters Availability can be expressed of 99.9995% for interface A1 in figure A4.6 in a period of 1 year, a non-availability of cooled air production of 0.999995 x 8760 Hr = 2.628 minutes. Availability can be expressed in the equation:

Availability MTTFMTBF

MTBFA+

=inf (App.6-20 equation 6.9)

The terms MTBF and MTTF contains respectively Mean Time Between Failure and Mean Time To Failure. Like reliability are the product rules applicable;

The series systems ∏=

=n

iiAAsys

1

(App.6-20 equation 6.4)

The parallel systems ∏=

−−=n

iiAAsys

1

)1(1 (App.6-20 equation 6.5)

As mentioned availability will be influenced by combined effects like reliability, maintainability, maintenance logistics etcetera. This means that the system availability has to be determined of interface A1 for the cooling and power system, so the maintenance concepts and maintenance methods can be later selected. The used approach is the same as used by reliability. The cooling system For the cooling system are the next availability numbers defined; Block A condensers A = 99.995% Interface E1 A (1 year) = 99.995% Block B Pumps A = 99.995% Interface D1 A (1 year) = 99.99% Block C Chillers A = 99.995% Interface C1 A (1 year) = 99.985% Block F Ext. Cooling A = 99.995% Block G Mob. Cooling A = 99.995% Block D A = 99.995% Interface B1 A (1 year) = 99.985% Block E Cool unit A = 99.995% Interface A1 A (1 year) = 99.98%

Thesis Benjamin Stoker 79

The power system Energy company A = 99.995% Interface E1 A (1 year) = 99.995% No-break active R = 99.995% Interface C1 A (1 year) = 99.995% Battery capacity R = 99.995% Interface B1 A (1 year) = 99.995% Main power system R = 99.995% Interface A1 A (1 year) = 99.98% 9.1.2.4 Description Maintainability The aims of maintainability are already discussed and basically expressed in a formula in paragraph 8.1.1. Although maintainability is a design characteristic, it still can be used in “on going business” as normally is the case in maintenance. In the situation there are installations to maintain, the maintainability factors can be used to test the installations on maintainability at the start up situation of a maintenance contract to define the maintainability parameter. To make maintainability measurable in a contract, it is necessary to describe in the contract the definition and aim of maintainability. The definition of maintainability can be described as;

The “ability” of an item to be maintained, whereas maintenance constitutes a series of actions necessary to restore or retrain an item in an effective operational state.

In practice maintainability is a design parameter, but is useable and applicable in maintenance contracts when it is made measurable. The definition maintainability contains many factors of maintenance aspects like;

- Reliability factors - Human factors - Logistic support factors - Availability factors - Dependability factors - Economic factors - Effectiveness factors - Maintainability factors

The named factors are already discussed in the research and especially as separate directions of the AMMIC approach, except maintainability itself. The maintainability factors are building up in three parameters;

1. Maintenance elapsed-time factors 2. Maintenance frequency factors 3. Maintenance cost factors

1. Maintenance elapse-time factors With meantime elapse-time factors is meant the maintenance time to restore a unit or system back in an operational state. Maintenance can be classified into two broad categories;

- Corrective Maintenance: the unscheduled actions initiated as a result of system failure(or perceived failure) that is necessary to restore a system to its expected or required level of performance

- Preventive Maintenance: The scheduled actions necessary to retrain a system at a specified level of performance.

Thesis Benjamin Stoker 80

Because the maintenance elapse-time is building up of corrective as well preventive maintenance parameters, it is impossible to express the maintenance elapse-time in a single parameter. The maintenance elapse-time is building up of nine individual parameters. These parameters are;

- Mean corrective maintenance time - Median active corrective maintenance time - Maximum active corrective maintenance time - Logistic delay time - Administrative delay time

The added value to apply these individual parameters in the maintenance contract is to make the corrective maintenance incidents and preventive maintenance tasks transparent and measurable for interpretation, so they are applicable as fundament for CPI’s or SLA’s. At first it has to be the parameters defined and assess on their utilization. Mean corrective maintenance time The aim of Mean Time Corrective Maintenance ( ctM ), is to allocate and express with a normal distribution corrective maintenance times of a unit or system. The Mean Time Corrective Maintenance expresses also the Mean Time To Repair (MTTR). The Mean Corrective Maintenance Time is an important aid for several parameters. With the expression of the Mean Corrective Maintenance Time in a normal distribution, it is possible to define for the contract the time may spend by every individual incident where corrective maintenance is necessary as a fundamental starting point for the CPI uptime. Another consideration is by using the information in an operational situation, is the fact that the Mean Corrective Maintenance Time when used (and expressed as a normal distribution) simple is in use by discussions customer and supplier, because Mean Corrective Maintenance Time can be expressed in overall terms likeσ , σ2 or σ3 . This expression means that the Mean Corrective Maintenance Time has a standard deviation ofσ , σ2 or σ3 by a defined maximum frequently of the normal distribution.

Detection

Preparation for maintenance

Localization andIsolation

Disassembly(Acces)

Removal ofFaulty Item

OR

Installation of Spare/Repair Part

Repair of equipment

Reassembly

Alignment and Adjustment

ConditionVerification Checkout

Faliure occurse

Corrective M

aintenance Cycle

Faliure confirmed

Active Maintenance Commences

Disassembly Completed

Reassembly Completed

Repair Completed

Figure A4.7 Corrective maintenance cycle

Thesis Benjamin Stoker 81

The Mean Corrective Maintenance Time ( ctM ) can be expressed with the equation:

Mean Corrective Maintenance Time ∑

∑=i

ii MctctM

λλ ))((

(App.6-66 equation 4.17)

In the equation is ictM the corrective maintenance time of the ith system element and iλ the failure rate. Note that equation 4.17 represents the “weighted” mean of the corrective maintenance tasks, and considers only the downtime spent performing active maintenance or the time spent only directly to the system or unit. With the data of the Corrective Maintenance Times it is possible out of a population of failures extract the standard deviation with the equation:

1)(

−−

= ∑n

ctMMctiσ (App.6-66 equation 4.20)

When the standard deviation is been defined it is possible to with the normal distribution to define the upper limits by converting into the standard (Z) values. With the standard Z values it's possible to define (and predict) the upper limits of the corrective mean times with the equation:

Upper limit )(N

ZctM σ+= (App.6-66 equation 4.21)

Median active corrective maintenance time The median active corrective maintenance time gives the best average location of the sample data. The utilization of the median active corrective maintenance time is to point out the right average in a wide range of failures, so single failures with “strange” repair times won’t influence the normal distribution. In the case of a normal distribution, the median mode and mean all have the same value. For a log-normal distribution, the median active corrective maintenance time can be calculated with the equation;

∑∑=

i

ii LogMctantictM

λλ ))((

log~ (App.6-66 equation 4.23)

Maximum active corrective maintenance time The Maximum Active Corrective Maintenance Time (Mmax) represents a percentile below which a specified percentage of all corrective maintenance cycle times are expected to be accomplished. This means that (Mmax) specifies the upper limit on the percentage of tasks that can be allowed to exceed a given repair time duration. The Maximum Active Corrective Maintenance Time is expressed in the equation as;

[ ]MctiZMctantiM logmax loglog σ+= (App.6-66 equation 4.26)

Thesis Benjamin Stoker 82

Logistic delay time (LDT) The logistic delay time, is the time elapsed while waiting for some required logistic resource. This resource could be a spare part, a particular test and support equipment item, a facility item or a service problem. Logistic delay time does not include any portion of the active maintenance time duration, but very often contributes significantly to overall system downtime. Administrative delay time (ADT) The administrative delay time is the down-time as result of some administrative priority or constraint, or any other cause not considered and included in computing. 2. Maintenance frequency factors Important is to know how to interpret the maintenance frequency. To predict and express the frequency factor of maintenance (corrective and preventive) can be expressed in one single factor. The maintenance frequency is built up of the preventive and the corrective maintenance tasks, and depends upon the system reliability and the wear out of characteristics. The two used maintenance frequency factors are the Mean Time Between Maintenance (MTBM), and the Mean Time Between Replacement (MTBR). Mean Time Between Maintenance (MTBM) The Meantime Time Between Maintenance is a function of scheduled and unscheduled maintenance frequencies, and can therefore, be expressed in the next equation;

Meantime Time Between Maintenance

SU MTBMMTBM

MTBM 111

+=

(App.6-66 equation 4.38) In this equation is MTBMU is the mean time between corrective maintenance and is MTBMS the mean time between preventive maintenance. Mean Time Between Replacement (MTBR) The Meantime Between Replacement is a factor that depends of the cost factor. When the Meantime Between Replacements costs of the of a system or unit are more than the Mean Time Between Maintenance (corrective and preventive), it is an opportunity toreplace the system or unit.

3. Maintenance cost factors Maintenance costs are generated as a result of corrective and preventive maintenance actions, and are based on the consumption of resources utilized in the performance of these maintenance actions. The cost associated with the performance of maintenance is a major element of the system-life cycle cost, and

Thesis Benjamin Stoker 83

are included here in. The objective of maintainability in a system that already exists and is operational is to minimize system support costs. The maintenance cost indices are;

- Maintenance costs per month €/month - The ratio of maintenance costs to total system life –cycle costs - Maintenance cost per repair action.

4. Putting its all together. Maintainability is now divided in the categories maintenance elapse time factors, maintenance frequency factors and maintenance cost factors. With the explanation of each parameter it is now possible to define the output results for the contract, with the next value’s; Maintenance elapse time factors

1. The upper limit of the Mean Time Corrective Maintenance has to be 60 minutes

2. The Median Active Corrective Maintenance Time has to be 40 minutes 3. The Maximum Active corrective maintenance time has to be 60 minutes 4. The logistic delay time is 24 hour 5. Administrative delay time is 5 minutes

Maintenance frequency factors

1. The Mean Time Between Maintenance at a maximum of 30 days 2. The Meantime Between Replacement is the life time of the element

Maintenance cost factors Maintenance costs are in the scope of this research costs not to define.

9.1.2.5 Description Safety Although the concept of “safety” is a system design characteristic, it still has to be a parameter in the maintenance contract. The aim of the concept “safety” in maintenance contracts is quite complex and contains several approaches. In an “on going” business the concept safety is having to consider the replacements of elements or by modifications of the production system. There are several techniques to quantify safety. These techniques are Fault Tree Analysis (FTA), Failure Mode and Effect Analyses (FMEA) or Hazard and Operability (HAZOP). In this context, it is not necessary to define a complete FTA, FMEA or HAZOP analyses for the ideal maintenance contract, but import to address the safety act in the maintenance contract. In this context, it is sufficient to define safety as a process by replacements or modifications of the technical system, the safety risks never may decrease. With this process is guarantied that every change will be tested related with the system design principles. Another consideration is the compliances of rules, legislation and standardization imposed by government towards the technical system, the responsibilities of the juridical owner and the maintenance supplier to keep the technical system in a “safe” condition.

Thesis Benjamin Stoker 84

9.1.2.6 Description Health The concept health has to cover a wide scope of regulation and legislation, but the fundamental it concerns the welfare of the employees. The connection with the maintenance contract is to embed regulation and legislation in the maintenance contract, to protect the employees (customer as well contractor) of any injury. This embedding is only to realize when the policy and the strategically objectives of the customer and contractor are described in the maintenance contract. The policy is the statement of intentions and principles of action that expresses the goals for the management of health against which all implementation actions are judged. The policy affirms the Company’s recognition of the protection of safety, health and the Environment as an integral part of business performance and ensures that a common set of principles are applied at all locations. The responsibility for developing and setting the Company health Policy lies with corporate management. Line managers at all levels in the organization are responsible for implementing the policy. Within the context of the Company the health Policy activity areas and locations can establish consistent policy statements, which contain objectives that are directly relevant to their activities and the effects they may have on the management of safety, health and the environment. Such specific policy statements must:

- Contain a commitment to meeting or exceeding all relevant regulatory and legislative requirements;

- Apply responsible standards where legislation and regulations do not exist; - Contain statements of the responsibilities at all levels within the organization

for health issues and the established reporting and support arrangements; - Contain principles which are readily understood at all levels in the

organization; - Be made available to all employees and contract staff, and be provided to

new employees and contractors with appropriate explanation; - State the requirement for contractors to have consistent policies; - Set health objectives that commit to continuous improvement in health

performance; - Be reviewed for continued relevance during health Management Review

Strategic objectives should focus on requirements to reduce critical health hazards and effects. The strategic objectives are:

- Reduce risks to safety, health and the environment to a level which is as low as reasonably practicable (ALARP);

- Minimise impacts on ecological, social and physical systems; - Strive towards an incident free workplace; - Be recognized as maintaining high standards in health performance.

Annual Business Plan and specific objectives may be developed to reinforce aspects of the Strategic Objectives and will be more focused or quantified. The Business Plan and specific objectives in turn lead to targets that should address areas of particular relevance to the health performance of the activity To define the policy and the strategically objectives is out of the scope in this research project. It is sufficient to embed the health policy and objectives as paragraphs in the contract, and make the specific, measurable, acceptable, realistic and time scheduled.

Thesis Benjamin Stoker 85

9.1.2.7 Description Environment Of all named parameters is environment a parameter which influences decisions and performance of a technical system. The influences are the result of the waste produced by the production process, what will harm and pollute the environment. To limit the local or worldwide environmental pollution, the production process is automatically limited to legislation and standards. The environmental parameter limits the one-sidedness off the technical system engineering. Environmental effects are the actual impacts on the natural or social environment which are known or suspected to be caused by emissions to the air, land or water of waste materials, depletion of resources, taking of land or any other aspect of the activity. Such impacts could result in harm to flora or fauna, health damage, impairment of quality for use, other activity hindrance, amenity reduction and damage to cultural and heritage resources. Environmental hazards are the activities or substances with the potential to cause these effects. In the situation for the maintenance contract, hazards and effects should be identified whether they are likely to be short or long term, temporary or permanent, direct or indirect, local or strategic. The benefits of maintaining environmental hazards and effects registers include:

- Determining and recording tolerability; - Providing the basis for action plans and prioritization; - Recording past practices with continuity through the present to the future

intentions; In the context of the research is the aim of the description environment to use energy on a social responsible manner. Describing the environment in the maintenance contract can by;

- Embedding of the social responsible enterprising policy of the customer - Embedding of reduction targets in the contract by reducing the energy

consumption. - Embedding of incentives of green energy.

9.1.2.8 Conclusion and validity check In line with the first direction, are in the second direction the minimal requirements defined of the technically function. The intention is to start with these requirements as a base line, and by continuous improvements of the technically functions it is possible to increase the requirements and specifications of the technically functions. Validity check conformable with the AMMIC questionnaire According with the AMMIC principals of the questionnaire of direction two, can be checked if the right approach is chosen to determine the customers wish and specify

with the content questions of direction three correct is applied. By checking the question of direction three can be concluded that all the variables are named, and a framework designed for the contract.

Direction Aspect Question Variable Qualification Max pointDirection 2 Technically functions 1 Is the reliability defined and agreed 17 17Direction 2 Technically functions 2 Is the avaiability defined and agreed. 17 17Direction 2 Technically functions 3 Is the maintainability defined and agreed 17 17Direction 2 Technically functions

4Are the Safety, Healht and environment isseus defined and agreed 17 17

Direction 2 Technically functions 5 Is there a Function Tree analyse 17 17Direction 2 Technically functions 6 Are the basis processes noted with I-DEF0 17 17

Table A4.2 Validity check questionnaire direction 2

Thesis Benjamin Stoker 86

9.1.3 Direction 3; Define the impact by failure of the technical function With the results of direction one and two is, defined what the corporate objectives are translated into a technically function. What the exportations are of those technically function are expressed in the requirements of the needed technically functions. What has to be defined is how the technically functions can fail and what the consequences are. Mentioning the introduction, it is not the aim to define a complete the impact analyses with FMEA or HAZOP studies but how to describe these techniques in the maintenance contract.

9.1.3.1 The FMEA The Failure mode and Effect Analyses (FMEA) exist out of four types. These types are system FMEA, design FMEA, process FMEA and service FMEA. The output and benefits of the four types can be described in the next headlines;

1. System FMEA The system FMEA is normally used to analyze systems and subsystems in the design stage. The system FMEA is focused on potential failure modes between functions of the system caused by system deficiencies and includes the interaction between systems and elements of the system.

Output

- A list of failure modes ranked by the RPN - A list of system functions that could detect potential failure

modes. - A list of design actions to eliminate failure modes, safety issues

and reduce the occurrence

Benefits - Select the optimum system design alternative - Determining redundancy - Defining the basis for system level diagnostic procedures - Increase that potential problems will be considered - Identify potential system failures and their interaction with other

systems or subsystems.

2. Design FMEA

The design FMEA is used to analyze a product before they are released to manufacturing. Output

- A list of failure modes ranked by the RPN - A list of critical and/or significant characteristics - A list design actions to eliminate failure modes safety issues and

reduce the occurrence. - A list of parameters for appropriate testing, inspection and or

detection methods

Benefits - Establish a priority for design improvement actions - Documents the rationale for changes

Thesis Benjamin Stoker 87

- Identify the critical of significant characteristics - Identify and eliminate potential safety concerns

3. Process FMEA

The process FMEA is used to analyze manufacturing and assembly processes. Output

- A list of failure modes ranked by the RPN - A list of critical and/or significant characteristics - A list of recommended actions to address the critical and

significant characteristics.

Benefits - Identifies process deficiencies and offers a corrective action plan - Identifies the critical and/or significant characteristics and helps in

developing control plans - Establish a priority of corrective actions

4. Service FMEA

The service FMEA is used to analyze services before the research the customer, and focuses on failure modes caused by a system or process deficiencies. Output

- A list of errors ranked by the RPN - A list of critical or significant tasks or processes - A list of bottleneck processes or tasks - A list to eliminate the errors - A list of monitoring system/process errors.

Benefits

- Assists in the analysis of job flow - Assists in the analysis of the system and/or process - Identifies task deficiencies - Identifies critical or significant tasks and helps in the development

of control plans - Establishes a priority for improvement actions - Documents the rationale for changes.

For the maintenance contract are the four FMEA types applicable and necessary to identify the hazards and failures of the technical systems in the life cycle from design to wear out of the system or element. The utilization of the four FMEA types has to be described in the maintenance contract in accordance their output and their specific benefit(s). Another utilization of FMEA is the relations with other tools like FTA, QFD and FME(C)A which are used in the AMMIC approach. For this research project it is not possible to execute the four FMEA type combined with the related tool(s), because favorable to FMEA are the teams that have to execute the four FMEA approaches. To make for the maintenance contract the four types successful and gives the FMEA an added value, it is necessary to describe in the maintenance contract that the setting of the teams is a mixture of the customer and contractor as the executive maintenance management of the technically functions.

Thesis Benjamin Stoker 88

9.1.3.2 The HAZOP The aim of a HAZOP (Hazard and operability) study is identifying safety, health and environmental hazards. A HAZOP study is a structured analysis of a system, process or operation for which detailed design information is available carried out by a multidisciplinary team. The team proceeds on a line-by-line or state-by-stage or stage examination of a firm design for the process or operation. This is done by using a set of guide words in combination with the system parameters to seek meaningful deviations from the design intention. The team concentrates on those deviations that could lead to potential hazards top safety, health and the environment. It is important to distinguish between the terms hazard and risk. They have been divided as follows; a ‘hazard’ is a physical situation with the potential for human injury, damage to property, damage to the environment or a combination of these. A ‘risk’ is the likelihood of specified circumstances. It can also be expressed as a combination of likelihood and severity. Where causes of deviations are found, the team evaluates the consequences using experience and judgment. If the existing safeguards are adjudged to be inadequate then the team recommends an action for change or calls for further investigation of the problem. The consequences and related actions may be risked-ranked. The analyses are recorded and presented as a written report which is used in the implementation of the actions. For the maintenance contract is the HAZOP applicable and necessary to identify the safety, health and environmental hazards of the technical systems in the life cycle from design to wear out of the system or element. The utilization of the HAZOP has to be described in the maintenance contract in accordance their output and their specific benefit(s). For this research project it is impossible to execute a HAZOP study, because favorable to HAZOP are the teams that had to execute the HAZOP study. To make for the maintenance contract the HAZOP successful and gives the HAZOP an added value, it is necessary to describe in the maintenance contract that the setting of the teams is a mixture of the customer and contractor as the executive maintenance management of the technically functions.

9.1.3.3 Conclusion and validity check In line with the second direction, are in the third direction the SHE hazards defined of the technically functions. With the four types of FMEA and HAZOP methods are the possible failures of the technical functions, and the Safety, Health and Environmental hazards of failing technical functions determined. With these analyses it is possible to assess in every stage of the life-cycle or contract stage replacements, capacity expansion of individual elements or technical designs. Validity check conformable with the AMMIC questionnaire According to the AMMIC principals of the questionnaire of direction three, can be checked if the right approach is chosen to determine the customers wish and specify

with the content questions of direction three correct is applied. By checking the question of direction three can be concluded that all the variables are named, and a framework designed for the contract.

Direction Aspect Question Variable Qualification Max pointDirection 3 Impact analyses 1 Are there FMEA analyses 50 50Direction 3 Impact analyses 2 Is there a HAZOPanalyse 50 50

Table 4.3 Validity check questionnaire direction 3

Thesis Benjamin Stoker 89

9.1.4 Direction 4; Define the maintenance concept With the results of direction one, two and three, is defined what the corporate objectives are translated into a technically function and their impact of failure for the both previous directions. The aim of direction four is to define the most fitting maintenance concept. Mentioning the AMMIC there are the basic maintenance concepts. These basic concepts are:

- Failure Directed Maintenance (FDM) In this maintenance concept are failure modes accepted. The characteristic of FDM that the consequences of failures like production losses, damage of assets or environmental effect are none or accepted.

- Time(use) Directed Maintenance (TDM) In this maintenance concept is maintenance executed in scheduled patterns, so on scheduled time intervals are parts of the system exchanged or replaced.

- Condition Directed Maintenance (CDM)

In this maintenance concept is the intensity of maintenance actions prescribed by the condition of the asset.

For the maintenance contract it is important to select the fitting maintenance concept. With the information and of direction one and two, dominates an extreme high reliability and availability and is the level(s) of maintainability high. This implies that the concept of Failure Directed Maintenance is not an option, and must be chosen for a combination of Time Directed Maintenance and Condition Based Maintenance. With these results and conclusion it is possible to define the right maintenance methodology in direction five. Another consideration is that not all technically functions are “critical” for the primarily process. In this perspective can be thought of lightning, elevators, revolving doors etc. In this perspective are these installations supporting the technical function that makes it possible to fill in the former directions. This implies that the maintenance concept for the technical functions managed with TDM and CBM, must be extended with a basic maintenance concept FDM.

9.1.4.1 Conclusion and validity check In line with the former directions one, two and three it can be possible to be determine the right maintenance concept. Determined is that a combination of TDM and CBM is necessary to realize and accomplish the requirements of the former directions. The supporting installations of the technically functions will be maintained with the FDM maintenance concept. Validity check conformable with the AMMIC questionnaire According to the AMMIC principals of the questionnaire of direction four, can be checked if the right approach is chosen to determine the customers wish and specify

Direction Aspect Question Variable Qualification Max pointDirection 4 Maintenace Concept 1 Is there a FDM concept 10 10Direction 4 Maintenace Concept 2 Is there a TDM concept 10 10Direction 4 Maintenace Concept 3 Is there a CDM concept 25 25Direction 4 Maintenace Concept 4 Is there a mixture of concept ? 55 55

Table A4.4 Validity check questionnaire direction 4

Thesis Benjamin Stoker 90

with the content questions of direction four correct is applied. By checking the question of direction four can be concluded that all the variables are named, and a framework designed for the contract.

9.1.5 Direction 5; Define the maintenance method. With the results of the former directions can be determined the best fitting maintenance method. With maintenance method is meant the basic approach of a maintenance philosophy. The mondial scope of maintenance management is built up out of a diversity of methods, and there are a diversity of approaches to fill in the method. As result of the former direction it is clearly that a single method as preventive and corrective maintenance is not sufficient. The maintenance method must be fitting and be an extension of the business strategy. Most related to this concept are the body of thoughts of the Business Centered Maintenance (BCM) method. The aim of Business Centered Maintenance is to combine maintenance method(s) and adapt them to the business strategy. This approach combined (and based) on the results of the former AMMIC directions, it is possible to combine several maintenance methods to accomplish the requirement of the former directions. For the design of the maintenance contract it is necessary to appoint a maintenance method, or a combination of maintenance methods. To fill the requirements of the former directions are the next maintenance methods necessary;

- Preventive maintenance - Corrective maintenance - Condition based maintenance (based on the NEN 2767) - Predictive maintenance - Risk based maintenance - Value Driven Maintenance

It is impossible to describe and give the named methods an exhausting treatment, in the maintenance contract, but to combine the specific qualities of the named maintenance methods. What not considers is the method's Total Productive Maintenance (TPM) and Total Quality Management. Although those methods are applicable, the concept and the framework are limiting the maintenance concept so only parts of the methods will be used.

9.1.5.1 Conclusion and validity check In line with the former four directions, are in the fifth direction the maintenance methods embed in the maintenance contract. The intension of the fifth direction is to embed a mixture of maintenance methods in the maintenance contract to realize the output of the requirement of the former directions.

Thesis Benjamin Stoker 91

Validity check conformable with the AMMIC questionnaire According to the AMMIC principals of the questionnaire of direction five, can be checked if the right approach is chosen to determine the customers wish and specify

with the content questions of direction five correct is applied. By checking the question of direction five can be concluded that all the variables are named, and a framework designed for the contract.

9.1.6 Direction 6; Define the system efficiency With the result of the former directions are in line with the business strategy, the requirements and specifications of the technical functions defined and how to maintain them. The possibility to participate in the objectives of the business strategy is next to a continuous operational management an efficient production of the technical functions. It is the key-word “efficient” that has to be made specific, measurable, acceptable, realistic and time scheduled. In the context of the AMMIC efficiency means the lowest cost for the energy conversion production process. Efficiency can be defined as Overall Equipment Efficiency (OEE). Normally OEE is used as parameter to identify losses or to find the “hidden” factory within. In the context of the maintenance contract for datacenters OEE expresses the coefficient of energy conversion to create cooled air. This means that the production process is making cooled air. The approach is in a normally process to discover speed rate’s, product per our and operational speeds, but the efficiencies in the production in cooled air per our in relation with the heat to dissipate. Normally OEE can be expressed as: OEE = Availability x Performance Effectiveness x Quality Rate (62 equation 2.5.15) In the basic expression Availability represents the uptime for the whole technical process, Performance Effectiveness represent the operating speed and Quality Rate the failed production units. The interpretation in the context of this research project, OEE must bring in the perspective of the heat dissipation produced by the servers versus the system effectiveness that's to provide in the making of cooled air. This interpretation results in the start configuration that OEE is equated with the heat dissipation Qths and results in the next equation;

OEE = QCoolsystem = Qths = 100% (App.6-28 chapter 6)

With this point of view, OEE is transformed in an energy efficiency coefficient parameter that expresses the system effectiveness and can be further derived

Direction Aspect Question Variable Qualification Max pointDirection 5 Maintenance Methods 1 Are the RW respected 5 5Direction 5 Maintenance Methods 2 Is the CBM method used 5 5Direction 5 Maintenance Methods 3 Is the PDM method used 5 5Direction 5 Maintenance Methods 4 Is the CORmethod used 5 5Direction 5 Maintenance Methods 5 Is the PM method used 5 5Direction 5 Maintenance Methods 6 Is the VDM method used 5 5Direction 5 Maintenance Methods 7 Is the RBI method used 5 5Direction 5 Maintenance Methods 8 Is the TPM method used 5 5Direction 6 Maintenance Methods 9 Is the BCMmethod used 5 5Direction 5 Maintenance Methods 10 Is the TQM method used 5 5Direction 5 Maintenance Methods 11 Is there a mixture of methods? 50 50

Table A4.5 Validity check questionnaire direction 5

Thesis Benjamin Stoker 92

based on the functional breakdown of the cooling system of figure A4.4. In the example below are the four efficiency numbers per energy conversion appointed and supposed on 0,9. With the product equation the performance of the whole system can be expressed in a system efficiency factor.

RCUChillersPumpsCondensorscoolsystemQ ηηηη ×××=

9.09.09.09.0 ×××=CoolsystemQ

66.0=CoolsystemQ With this approach the cooling system has to be perform on 66% of its designed performance. Hence; the OEE of the cooling system must be 66%, so the product of Availability, Performance Effectiveness and Quality Rate must be 66%. Because the performance effectiveness contains the defined combination of the maintenance concept, method and maintainability, is OEE also a quality parameter of the executed maintenance tasks. To make OEE applicable in the maintenance contract it is a precondition to measure the energy flows, and an agreed performance number.

9.1.6.1 Conclusion and validity check. With defining OEE as a parameter of the system effectiveness are several specifications measurable like maintainability and the energy balance to introduce a continuous improvement parameter to decrease the production costs. Validity check conformable with the AMMIC questionnaire According with the AMMIC principals of the questionnaire of direction six, can be checked if the right approach is chosen to determine the customers wish and specify

with the content questions of direction six correct is applied. By checking the question of direction six can be concluded that all the variables are named, and a framework designed for the contract.

9.1.7 Direction 7; Define the financial parameters and variables With the results of the former directions are in general described how to realize with the technically functions the objectives of the business strategy. With the specifications of the technically functions are the aspects like continuity and quality limited with a minimum of effort of the maintenance organization. Important aids after the start of the maintenance contract are the financial parameters. During the time of the maintenance contract it is common sense that there will be changes in the technical systems, which have financial consequences. These “Capital Expenditures” (CAPEX) are the investments initiated by the contractor as a contractual obligation. These investments are replacements of system elements or

Direction Aspect Question Variable Qualification Max pointDirection 6 System effcientie 1 Are al the energy flows measured 25 25Direction 6 System effcientie 2 Is the ideal energy flow agreed 25 25Direction 6 System effcientie 3 Is there a energy equation (balance) 25 25Direction 6 System effcientie 4 Are the results exported to other directions ? 25 25

Table 4.6 Validity check questionnaire direction 6

Thesis Benjamin Stoker 93

capacity expansions. These kinds of projects are expensive and require clear guidelines from the customer, embedded in the maintenance contract. Another cash flow is the Operational Expenditures (OPEX), and can be described as the type of costs that get the operations running like energy, labor, corrective and preventive maintenance. For maintenance contracts there are no specific OPEX related financial guidelines, when corrective maintenance costs are included with the preventive maintenance as a total lump sum amount. In contrast to the OPEX costs are CAPEX costs liable to specific guidelines, and as motioned before is it possible to divide the CAPAX costs divided into two categories; the replacement costs and the capacity expansion costs. Replacements costs The replacements of system elements are predictable because these kinds of investments are depending of the life span and the technical condition of the system elements in accordance with the NEN 2767. The NEN 2767 is a Dutch standard that makes it possible to classify the condition (Cv) of technical element. The classification is based on the life span of the element and defects expressed in a gravely, seriously or small defect where the defect is defined and documented. The defined condition is expressed in a six point scale from one to six. The condition scores are divided in: Condition score Description Explanation

1 Excelent condition Incodental defects2 Good condition Incidental starting ageing3 Reasonable condition Local visible ageing

No los of functions4 Moderate condition Expectation of falling-out

of functions5 Bad condition The ageing is irreversible6 Very bad condition Technical ready for scrap

With this method it is possible for the contractor to plan the CAPEX annual budgets for replacements when a specific condition score of installations is chosen and embedded in the maintenance contract. For datacenters is a condition level Cv= 3, an acceptable condition to maintain and goal for budgeting. Important for the NEN 2767 is the fact that there is an agreement between customer and supplier over the Aspect/Priority diagram, because this diagram influences the rate of investments in time. The predictability of the replacements are embedded in the long-range budgets for replacements. Capacity expansion costs The capacity expansions are normally big expenditures because these kinds of projects are containing complete new installations. Those kinds of investments are demanding a business case and must be ratified by the management board. Although the origin of both the investment types is different, both have to follow the financial investment criteria to make them successful, and prevent negative energy of making budgets and business cases. Important for the guidelines for the financial process is the fact if there are financial regulations for the OPEX and the CAPEX on

Thesis Benjamin Stoker 94

corporate level. If there are regulations for the both financial flows, this regulation has to be described in the maintenance contract. The parameters of the Whole Life Costing (WLC) principals that have to be described in the business case are;

1. The Present Worth

ndPW

)1(1+

= (App.6-41 Kishk equation 2.2)

Where:

n = the analyze period d = discount rate (given by the customer)

2. The Present Worth of Annuity (PWA)

n

n

dddPWA

)1(1)1(

+−+

= (App.6-41 Kishk equation 2.3)

Where:

n = the analyze period d = discount rate (given by the customer)

3. The Net Present Value (NPV)

APWAANPV ×+= (App.6 41 Kishk equation 2.13)

Where: A = Annual costs PWA = Present Worth of Annuity

4. Equivalent Annual Cost (EAC)

i

i

PWANPVEAC = (App.6-41 Kishk equation 2.5)

Where:

NPV = Net Present Value PWA = Present Worth of Annuity

5. Internal Rate of Return

0=×= iNPVdIRR (App.6-41 Kishk equation 2.6)

Thesis Benjamin Stoker 95

When these five parameters are embedded in the maintenance contract as minimum business case items, is it possible for the contractor to present business cases for capacity expansions that are viable for purchasing.

9.1.7.1 Conclusion and validity check With defining the minimum condition level of the technical elements are the preconditions created to realize replacements budgets, based on an agreed condition level. With defining financial parameters in the maintenance contract that are must be used by capacity expansion business cases, is it for the contractor possible to deliver a business case in line with the business-strategy and corporate guidelines of the customer.

Validity check conformable with the AMMIC questionnaire According to the AMMIC principals of the questionnaire of direction seven, can be checked if the right approach is chosen to determine the customers wish and specify with the content questions of direction seven correct is applied. By checking the

question of direction seven can be concluded that all the variables are named, and a framework designed for the contract.

9.1.8 Direction 8; Define the aim of the maintenance organization With the outcomes of the former directions are the “meanings” and results of the technical related items to produce the product business related for the lowest cost on paper described, so the body of thoughts can be executed. The realization in practice of the former direction's outcome on their maximum level is depending on the human factor. All the high levels of defined theorems based on literature or proven mathematical explanation in spite; it is still the human factor that influences the performance and outcome of all the directions. This knowledge requires specific competences of the customer’s organization and the contractor to make a success of the intentions of the maintenance contract. The customer’s organization To fill in the objectives of the former directions the customer has a specific role and responsibility. The customer has to formulate the policies and the demarcations of the responsibilities of the contractor. Furthermore, has the customer to facilitate the contractor in information and create the environment so the contractor cans for-fill the CPI’s and SLA’s of maintenance contract. This means that the customer must be a full counter partner of the contractor. To be a full counter partner of the contractor implies not that there must be a fully equipped maintenance organization, but only technical maintenance management with specific maintenance skills. Important is the contract type, and as described in appendix 5 is chosen for a guarantee contract. By the usage of this concept is the organization of the customer small and have only contract management a position to fill-in a demand/supplier organization structure, because the contractor has all the technical competences to

Direction Aspect Question Variable Qualification Max pointDirection 7 Finance 1 Are there compagny rules for interpertaion CAPEX 17 17Direction 7 Finance 2 Are there compagny rules for interpertaion OPEX 17 17Direction 7 Finance 3 Is the IRR related to the long term vision 17 17Direction 7 Finance 4 Is the A/P diagram agreed of the NEN 2767 17 17Direction 7 Finance 5 Is the condition (Cv) agreed 17 17Direction 7 Finance 6 Are WLC rules defined 17 17

Table A4.7 : Validity check questionnaire direction 7

Thesis Benjamin Stoker 96

fill in the technical management and operations. This organization model requires a well technical maintenance educated contra management to understand the contractor's business, the maintenance contract and above all to make the transcription of the corporate business strategy towards the technique and maintenance management. Tor fill in the objectives the contract management demands the maintenance contract based on CPI’s and SLA’s, which are embedded in the maintenance contract and are an extension of the corporate objectives. This all implies that the contract management of the customer must have minimal the education of maintenance manager, to interpret the maintenance business. To create the maximum “added value” of the maintenance management of the objectives as part of the primarily process the contract management must be close placed, near by the strategically management. Most important reason to be close to the strategically management is the fact the impact of failure has direct consequences for the corporate objectives a direct consequence, but as “hidden “threat” is the imago damage with consequence The contractor organization One of the characteristics of the chosen contract type, is the fact that not is dictated and described in the maintenance contract what and which maintenance tasks they have to utilize. In the chosen contract type the contractor has to employ his expertise as maintenance management provider. The results of the first seven directions of the AMMIC demarcate the customer’s requirement to fill in the corporate objectives and the contractor must fill the requirements. The contract type and the requirements of the AMMIC results, demand of the contractor an open maintenance structure with several maintenance teams on strategically, tactical an operational management which must be a self regulated. The strategically maintenance management teams are the counter partners of the customer's contract management, and must be acting question driven. In the context of question driven acting and operating, the contractor organization is acting as a part of the customer’s organization where the customers-and contractor’s organization is melting together because they costumer and contractor have the same objectives, targets and overlapping responsibilities. For the contractor it implies that his organization on a strategic, tactical and operational level must be fully equipped, educated and certified. Another consideration of the contractor organization is the Enterprise Recourse Planning (ERP) and Technical Specific Software (TPS). Mentioning the AMMIC are the directions connected in a point o view systematically, but concrete is the connection realized with ERP and TPS. A consequence of the chosen contract type is the fact that all the technical and financial historical data is a contractor responsibility. This means that the ERP and TSP systems of the contractor have to adapt a related of the customers ERP and TSP systems to audit the deliveries of the contractor.

Thesis Benjamin Stoker 97

9.1.8.1 Conclusion and validity check Although the former directions are important to specify the product, deliveries and costs still it is the human factor is the most critical success factor. The human factor demands specific skills of the customer as well for the contractor. For both the organizations are well educated officials necessary that can handle an open question based structure of working. Validity check conformable with the AMMIC questionnaire According to the AMMIC principals of the questionnaire of direction eight, can be checked if the right approach is chosen to determine the customers wish and specify with the content questions of direction eight correct is applied. By checking the

question of direction eight can be concluded that all the variables are named, and a framework designed for the contract.

9.1.9 Summary

In this paragraph are the critical parameters appointed and defined so the parameters can put in the maintenance contract text and further described. With the parameters are the eight directions of the Asset& Maintenance Management Circle converted in concrete parameters and ready for usages in a maintenance contract. The eight parameters that have to be described in the contract are;

1. The business strategy related to the maintenance strategy 2. The requirements of the technical functions 3. The impact of failures of the technically functions 4. The maintenance concept 5. The maintenance methods 6. The system efficiencies of the technical functions 7. The financial guidelines 8. The maintenance organization

Within the scope of this research project it is impossible to define all underlying parameters and variables, because the contract design has the objective to be a “bleu-print” a generic for datacenters in common. In this paragraph is described which approaches, concepts, methods, audits, guidelines and cooperation attitude between customer and contractor must be used and interpret.

Direction Aspect Question Variable Qualification Max pointDirection 8 Organisation 1 Is the organisatio of the contractor Question driven ? 17 17Direction 8 Organisation

2Is the education level up to date by the customer and the contractor. 17 17

Direction 8 Organisation 3 Is the organisation capable for Question driven 17 17Direction 9 Organisation

4

Are the KPI's and SLA of the compagny strategy connected with the maintenance organisation of the cutomer and contractor ? 17 17

Direction 8 Organisation 5 Is the organisation capble to handle the analyse data 17 17Direction 8 Organisation

6Is the organisation right positioned in the organisation structure 17 17

Table A4.8 Validity check questionnaire direction 8

Thesis Benjamin Stoker 98

9.2 The CPI’s and SLA’s further defined In the former paragraph are the eight direction defined, described and represents the back-bone of the maintenance contract. To keep the performance in line and the produced product within the agreed quantity and quality, it is necessary to define CPI’s and SLA’s. These necessities are not to stimulate and motivate the contractor for bonuses or to build up the pressure by the customer with claims, but to keep the backbone of the maintenance contract actual and the directions in a continued improvement cycle. This implicates that the maintenance management contact has eight CPI’s and a diversity of SLA’s where the contractor as well the customer has to deliver activities or quality levels. The description of the CPI’s and SLA’s are an extension of the AMMIC directions , so the CPI’s can be defined as described in Table A4.9. The SLA’s levels are the input of the CPI’s and are a summation of the individual direction or KPI. In this context are the SLA’s a limitation of the parameters or variables of the former paragraph. The structure of the KPI and Sla are a mathematical addition of monthly, quarterly of annual achieved results.

9.2.1 The CPI and SLA rating For the KPI are 125 points to achieve per CPI (direction). The 125 points can be obtained by reaching the individual service levels. A service level that creates the score of a KPI, is built up out of several items and forms together the total score as input for the KPI. The limitation of the SLA’s are divided in “one-liners” and pointed out with the attribution of point per individual question or requirement. KPI 1: The business strategy versus maintenance management

- Maximum 125 point - Minimum 80 points

1. SLA 1 Max. 60 points

- Is the QFD updated (Quarterly).

Business strategy versus maintenance management

Technicaly functions

Impact analyses

Maintenance concept

Maintenance methods

OEE : System efficiency

Financial

Organisation

CPI 1

CPI 2

CPI 3

CPI 4

CPI 5

CPI 6

CPI 7

CPI 8

CPI description SLA descriptionCPI

1.1 SLA 11.2 SLA 2n. SLA n

2.1 SLA 12.2 SLA 2n. SLA n

3.1 SLA 13.2 SLA 2n. SLA n

4.1 SLA 14.2 SLA 2n. SLA n

5.1 SLA 15.2 SLA 2n. SLA n

6.1 SLA 16.2 SLA 2n. SLA n

7.1 SLA 17.2 SLA 2n. SLA n

8.1 SLA 18.2 SLA 2n. SLA n

Table A4.9 CPI and SlA structure

Thesis Benjamin Stoker 99

2. SLA 2 Max. 65 points - Are all the directions of the AMMIC structure still connected.

KPI 2: The technically function

- Maximum 125 point - Minimum 80 points

1. SLA 1 Max. 60 points

20 Points Are the reliability for the systems defined and monthly achieved (cooling and power)

20 Points Is the availability of the individual system defined and monthly achieved (cooling and power)

5 Points Is the maintainability of the individual system defined and monthly achieved (cooling and power)

5 Points Are the safety act of the individual system defined and monthly achieved (cooling and power)

5 Points Are the health factor(s) of the individual system defined and monthly achieved (cooling and power)

5 Points Are the environmental factor(s) of the individual system defined and monthly achieved (cooling and power)

2. SLA 2 Max 30 points

- Is a Function Tree defined and up to date. 3. SLA 3 Max 35 points

- Is there a function breakdown/decomposition of the technical system (cooling and power)

KPI 3: The impact analyses

- Maximum 125 point - Minimum 80 points

1. SLA 1 Max. 115 points

10 Points Are there made system FMEA’s by the contractor. 10 Points Are there made design FMEA’s by the contractor of replaced

system elements 10 Points Are there made process FMEA’s by the contractor. 35 Points Are there made service FMEA’s by the contractor 15 Points Are the FMEA”S connected with direction 4 and 5 35 Points Are the FMEA’s up to date and filed in a data base of the

contractor

2. SLA 2 Max 10 points

10 Points Is the HAZOP of the cooling and power system up to date and filed in a data base of the contractor.

Thesis Benjamin Stoker 100

KPI 4: The maintenance concepts - Maximum 125 point - Minimum 80 points

1. SLA 1 Max.125 points

10 Points Are the maintenance concepts(s) defined for the individual technical systems (cooling and power)

25 Points Is there a combination of maintenance concepts and utilized (cooling and power)

40 Points Can a combination of maintenance concepts been audited (cooling and power)

50 Points Are the combination of maintenance concepts on schedule (cooling and power)

KPI 5: The maintenance methods

- Maximum 125 point - Minimum 80 points

1. SLA 1 Max.25 points

25 Points Are the maintenance task based on rules and legislation defined, and up to date conform to an annual schedule.

2. SLA 2 Max.50 points

25 Points Are the maintenance tasks based to keep the technically

functions in condition 4 (Cv=4) 10 Points Are the maintenance task based on the predictive corrective

maintenance tasks

3. SLA 3 Max.50 points 50 Points Are the corrective maintenance task monthly, quarterly an

annual represented in:

1. Mean Corrective Maintenance Time ∑

∑=i

ii MctctM

λλ ))((

2. Upper limit )(N

ZctM σ+=

3. Meantime Time Between Maintenance

SU MTBMMTBM

MTBM 111

+=

KPI 6: The System efficiency - - Minimum 80 points.

1. SLA 1 Max.75 points

25 Points Are the system effectiveness factors identified.

Thesis Benjamin Stoker 101

50 Points Is there made an energy balance in heat dissipation of the servers versus the system elements of the cooling and power and expressed in a OEE number.

2. SLA 2 Max.50 points

25 Points Are the system effectiveness factors related with the maintenance tasks.

10 Points Are the system effectiveness factors embedded is a system of the contractor.

15 Points Are there incentives to pay out related with the OEE.

KPI 7: Finance - Maximum 125 point. - Minimum 80 points.

1. SLA 1 Max.75 points

25 Points Are for the replacements the individual replacements offered conform to the NEN2767 method.

35 Points Are the capacity extensions based on a business case where the next factors are used; - NPV - EAC - IRR

15 Points Is the passage time of an invoice less than 2 months after date of invoice.

2. SLA 1 Max.50 points 25 Points Are the annual budgets for replacements delivered in the first

month of the last quarter. 25 Points Are the

KPI 8: Organization - Maximum 125 point. - Minimum 80 points.

1. SLA 1 Max.90 points

25 Points Are the education of the contractor on level by hand over the certificates of; - RCM facilitator (1 employee) - Introduction on RCM (al operation employees on site) - Education of maintenance and management (al operation

employees on site) - Inspector NEN2767 (mechanical and electrical 1

employee) - Registration and certified NEN 1010 inspector an

installation competent person (2 employees) - Certificated fire inspector (1 employee) - PRINCE2 project foundation and practioner (1 employee)

Thesis Benjamin Stoker 102

2. SLA 2 Max. 35 points 20 Points Is the organization of the contractor fully equipped and

adjusted, to work with the demand organization of the customer. Requirements; - Question driven teams of the contractor. - An internal focused organization that has the objective to

achieve a 100% AMMIC scale. 10 Points Is the organization of the customer arranged as a demand

organization. 5 Points Is the education of the contract manager of the customer

technical and an expert in maintenance management.

9.2.2 Ranking the CPI’s In the former paragraph are the CPI’s defined and been made measurable, to make the SLA measurable by giving them points. With the ascribing of points per individual SLA is possible to rank the overall performance of the contractor and indirect the quality of the contract. The total score that cam be reached is 1000 points and the minimum level is 640 points. With this construction, it is possible to start this maintenance contract as a concept when there is no maintenance management with the body of thoughts like the AMMIC. In those situations the SLA levels are not valid for the first three months, in the next three months the SLA levels are valid but the no-claim bonus system is operational and after six months the SLA levels are valid as well the no-claim bonus system.

9.3 The implementation plan

The implementation plan of a maintenance management contract based on the body of thought of the AMMIC, can in the startup stage only when it is considered as a project to bring the level of SLA’s on 640 points. The best project type to implement a maintenance management contract based on the AMMIC body of thoughts, ai the PRINCE2 methodology. The main reason for this choice is the fact that PRINCE2 is a corporate used project by the (KPN) customers. Another consideration is the applicability of PRINCE2;

- Directing the project based on a business case - Involve representatives of stakeholders in the project control team - Dividing up the project in management phases - Steering and managing on exceptions - Steering and managing on products.

In the situation that the AMMIC is being introduced in a “green field” situation or already in operational situation of the technical functions, must be the contract manager the project manager in the PRINCE2 context. To implement the maintenance management contract with the PRINCE2 approach must be at least been described the stages:

1. SU Starting up a project 2. IP Initiating a project

Thesis Benjamin Stoker 103

3. SB Managing the stage boundaries 4. CS Controlling a stage 5. MP Managing product delivery’s 6. CP Closing a project

With the description of the five basic elements of the PRINCE2 approach, it is possible to achieve the transformation of contract types and their content. Although it is beyond the research project to describe al stages of the PRINCE2 approach, the outcome is predictable. In stage six must be the delivered product equal to the results of the AMMIC.

Figure A4.8 The PRINCE2 approach in time

Thesis Benjamin Stoker 104

9.4 Feedback the theory of the deductive phase Regarding the procedure steps of the research process must be the results of the testing phase 2.2 being compared with the defined theory in the deductive process step of 2.0.. The theory was described as;

The theory can be marked as valid and correct. This pronouncement is based on the description of each direction of the AMMIC approach and the validity check. The description is of each direction of the AMMIC is based on a literature research as described in paragraph 8.11, and is being in operation to define for every direction key question. The key questions are basically compounding out of the named literature reference, but it would be doing wrong to other used literature. Although the key questions are composed in the named literature which is represented in paragraph 8.1, the consulted literature is represented in appendix 6.

9.5 Feedback to the inductive phase Regarding the procedure steps of the research process must be the results of the testing phase 2.2 being given back as feedback to the respondents which are interviewed. The feedback contains the results of the deductive phase, so the responsible management can make a well-considered decision to embrace the philosophy, the body of thoughts and the approach of the AMMIC. When the management is convinced of the operational and financial added value of the AMMIC approach are two important initiatives to take; at first to set up and change management to execute the implementation plan and describe in juridical terms and language the maintenance contract.

The theory can be described and defined that the concept of Asset & Maintenance Management is fundamental build up of eight aspects, and when all the eight aspects together performing theoretical optimal is the maximum level of asset & maintenance management achieved.

Thesis Benjamin Stoker 105

10 Appendix 5: Validation of contract types.

In the Asset & Management world, there are several maintenance contract types in use. Regarding the literature research of phase one in it is clearly that maintenance management contracts are not well specified in international standards. In the Netherlands, there is a standard in nascent. The Dutch Normalization institute (NEN) tries to get agreement and implementation of the NEN 13269. The author of this document is participating in the committee of the NEN 13269 the expectation is that a standard will be realized in 2010.

The only literature where contract types are defined is TSM (Technical System management), which is based on the system approach. To find more about the contract types in common, the Dutch society of Maintenance Management (NVDO) is been consulted. Also are during the interview stage as part of the research process several enterprise presentations hand over. The result after comparing both information sources, is the conclusion that the interpretation is not in line, witch could be expected because of the fact that there are standards.

To be in line with the procedure steps of research stage one, are to validate the contract types the next process executed;

1. Combine the named literature of phase one with the contract types in practice.

2. Define the contract types

10.1 Combine literature with the contract types in practice.

The useable information can be divided in two groups; the literature of TSM and the information of the NVDO. The supplied information is presentations of the next companies /enterprises;

1. The Royal Dutch Air force (Nederlandse Defensie acedemie) 2. Egemin group 3. PDM group 4. Heijmans international 5. Corus 6. Vintura 7. Perloc 8. KPN 9. AAS

With the above summarized information, it is possible to classify the contract types. After considering all the material and information, the classifying of the TSM approach is the most referable, and underpinned. However, in practice two other contract are ignored. In order of the abstraction the TSM approach classifies four contract types in:

1. Volume contract (Dutch translation : Regiecontract) 2. Effort contract (Dutch translation : Inspanningscontract) 3. Performance contract (Dutch translation :Resultaatscontract) 4. Guarantee contract (Dutch translation :Prestatiecontract)

Thesis Benjamin Stoker 106

In practice, there are two other contract type. The two contract types are a product of the last two years. Characteristically of the two contract types is their high abstract level and their integration in the customer's organization.

5. ISC (Integrated Service contract) contract (Dutch translation :Lease Contract)

6. A custom-made job contract specified to the hand of the customers wish (Dutch translation : Maatwerk contract)

All the contract types have each their own behavior, specific limitations and specification. Also to control each type of contract requires a specific customer’s organization structure.

10.2 Defining the contract types In the former paragraph are the contract types classified. In this paragraph are the contract considers on their characteristics.

The volume contract The volume contract is of all the contract types the simplest type of contract. There are no detailed agreements about prices, deliveries and standards. The structure is delivery on demand. The supplier is responsible for all the controls, and implies that almost 80% of the total amount of work is done by the customer. Furthermore, there are no agreed performance indicators or service levels.

The effort contract The effort contract is the basic contract type. In this type of contract are for a period, several agreed items such as;

- Unit price of maintenance jobs. - Unit price of additional jobs. - Agreed service levels with performance indicators - Agreed index rate

The supplier is responsible for the control on service levels and controlling the deliveries of the supplier. It implies that almost 50% of the total amount of work is done by the customer. Significant is that in contrast of the volume contract, the effort contract the responsibility is by the customer. The supplier as a lot of responsibilities, but isn’t authorized to make is own decisions.

The performance contract The performance contract is an expanded effort contract. The most significant in contrast with the effort contract, is the swing in responsibilities from the customer to the supplier. Also the supplier in this concept has the authority, to make his own discussions. The customer’s responsibility is mainly to control the performance indicators and the continuity of the process. The swing also implies that almost 30% of the total amount of work is done by the customer.

The guarantee contract The guarantee contract is even more an expanded performance contract. In this situation, the customer controls the process on demand. The total maintenance process is outsourced to the supplier. In this concept is the supplier completely responsible and authorized to manage the process of maintenance management. The swing also implies that almost 5 - 10% of the total amount of work is done by

Thesis Benjamin Stoker 107

the customer. Still in this contract type contain a demand organization (structure) al the knowledge of the process.

The Integrated Service Contract (ISC) The ISC contract type is the most expanded and abstract contract type. In this contract type, is a full partnership realized. A team is containing as well customers as suppliers. It is not relevant which “camp” the employees are settled, because there are only collective goals. A Tailor-made job contract specified to the hand of the customers wish The tailor-made (TM) contract type is quite complex. Mostly are those contract types used, and build in the heavy industries, or specific market segments. There is no format of the TM contracts, because of the specific customers wish.

10.3 Summary contract type

In the former paragraphs are the contracts types classified, and outlined explained. When we combine the information, it is possible to visualize the named contract types. In figure A5.1 is the information combined in two axes. The horizontal axes represent the shift in responsibilities, towards the supplier, the vertical axe represents the increasing risk of a higher abstraction level.

With the visualization of the contract types, it is possible to determine the best fitting contract type as presumed in the abstract.

10.4 The best fit To make the right decision which contract type has the right match and fit towards a company or strategy, can be determined with the AMMIC approach in the first direction. Based on the research on the research results and described in appendix four is the guarantee contract the best fitting contract type.

Own production=

Effort Contract

Directing=

Performance contract

Managen=

Guarantee contract

S-Curve

S-Curve

Shift of responsibilities from the customer tor the contractor

Describing the responsibilities

Strat=

DEMAND

Tactical

Operational

Point of special intrest: Where is going the knowledge domain ?

Integrate=

ISC

S-Curve

Special point of intrest: Where are company wellknown processes

Figure A5.1 Abstract of the contract types.

Thesis Benjamin Stoker 108

11 Appendix 6: Reverences

1 Reliability and Risk Assessment 39 Studie Literatuur opleiding Energie Consulent (RE)

J.D. Andrews and T.R. Moss, second edition, ISBN 0-7506-3358-1 Alle beschikbare informatie, syllabus en vakliteratuur.

2 Reliability Centred Maintenance 40 Studie literatuur opleiding Master of Engineering (MoE)

John Moubray, second Edition, ISBN 0-7506-3358-1 Alle beschikbare informatie, syllabus en vakliteratuur.

3 RCM, Gateway To World Class Maintenance 41 Studie literatuur opleiding Master of Asset Management (Msc)

A.M. Smith and G.R. Hinchcliffe, ISBN 978-0-7506-7461-4 Alle beschikbare informatie, syllabus en vakliteratuur.

4 Reliability Engineering, Second Edition 42 Systeem denken; Ontdekken van onze organisatie patronen

E.E. Lewis, ISBN 0471-01833-3 B. Bryan, M Goodman J. Schavelingen ISBN 9052615527

5 Value Driven Maintenance 43 De kern van methodologie

Mark Haarman en Guy Delahay, ISBN 90-808270-1-0 Dr.J.Jonker enDr B.J.W. Penning ISBN 902323541-X

6 Total Productive Maintenance 44 Benchmarken van industriële processen

Ing. .J.M.M. Aalderse, ISBN 90-267-2124-2 Dr.ing.Q.H. van Breukelen, CB Coolhaas Prof T. Kumpe M.A.

7 Conditioning-Based Maintenance and Machine Diagnostics ISBN 9023235800

Kluwer Academic publisher, ISBN 0-4124-65-0 45 Kloteklanten

8 Safety, Reliability and Risk Management E.J. van Bel ISBN 9789013047011

an integrated approach, Second edition 46 Marketing in hoofdlijnen

S. Cox and R. Tait, ISBN 0-7506-4016-2 E.A. van Eunen en drs. F.F.O. Holzhauer ISBN902071919

9 Health & Safety Risk Management 47 Projectmanagement volgens Prince2

T. Boyle, ISBN 0-9013-5727-3 Peter janssen ISBN 978-90-430-1244-7

10 American Petrol Institute (API) 581 48 Managing Succesful Project with Prince2

API 581 Publication First edition, May 2000 London:The Stationery office ISBN0 11 330891 4

11 System Thinking, System Practice 49 Prince 2

P. Checkland, ISBN 0471986062 Ad van den Dekker ISBN 90-806968-1-1

12 Soft Systems Methodology in action 50 Projectmanagement opbasis van PRINCE2, edition 2005

P. Ceckland band J. Scholes , ISBN 0471986054 B.Hedeman, G.Vis& H.Frederikz ISB 90-87530-463

13 Creating the corporate future 51 PRINCE -HEERLIJK

R. L. Ackoff, ISBN 731664845 Drs.Ir. B.H. Hedeman ISBN 90-440021 21

14 Contemporary Strategy Analysis, Cases to Accompany 52 PRINCE2 voor opdrachtgevers

Accompany Contemporary Strategy Analysis fifth edition M. van der Molen ISBN978 90 77212 99 8

Robert M. Grant ISBN 1-4051-1999-3 / 1-4051-2408-3 53 Prince2 compact

15 De vierde Managementcrisis, Innoveren Peter janssen ISBN 978-90-430-1281-3

naar vraaggestuurd management 54 Prince2 compact

Rob Land, ISBN 90-5594-165-4 Ad van den Akker ISBN 90-806968-1-1

16 Bedrijfskundige Methodologie 55 Projectmatig werken

Prof.Dr.Ir.A.C.J. de Leeuw, ISBN 90 232 3182 1 G. Wijnen, W. Renes, P. Storm, ISBN 90-274-3328-3

17 Management, zesde editie 56 Projectmatig creëren 2.0

J.A.F Stoner, R.E. Freeman, D.R. Gilbert, ISBN 9052611831 Jo Bos&Ernst Hartingen, ISBN 90-5594-3991

18 Analyse van organisatie problemen 57 Technisch Systeem Management

Prof.Ir. In ‘t Veld, ISBN 90-11-04594 Prof. Ir. K. Smit ISBN 90-14-06705-4

19 Bedrijfseconomie, Theorie & Praktijk 58 The Fith discipline:The art&Practice of the learning Organisation

R. Liethof, ISBN90-6155-533-7 P.M.Senge ISBN 1905211201

20 Life cycle Costing: A radical approach 59 Basisboek Methoden en technieken

D.J.O. Ferry and R. Flanagan, ISBN 0-86017-322-9 B.Baarda & M.de Goede ISBN 978-90-207-3315-0

21 Whole life costing in construction 60 NL/SfB- Tabellen

M. Kisk, The Robert Gordon University Aberdeen Ir. Barbara ISBN 90-807626-3-6

22 The path of Least resistance for Managers 61 Complete Guide to Prevetive&Predictive Maintenance

Robert Fritz ISBN1-57675-065-5 J. Levitt ISBN 978-0-8311-3154-3

23 Improving Performance 62 Overall Equipment Effectiveness

G. A. Rummler and A.P. Brache, ISBN 0-7879-0090-7 R. C. Hansen ISBN 0-8311-3138-1

24 Quality Function Deployment 63 UPTIME Strategies for excellence in Maintenance Management

Lou Cohen, ISBN 0-201-63330-2 R. C. Hansen ISBN 0-8311-3138-1

25 Physical Asset Management Handbook 64 Maintenance Strategy, Business Centered Maintenance

Third edition, ISBN 0-9717945-0-2 A. Kelly ISBN 0-7506-24-5

26 Kwaliteitsborging van Installaties. 65 Maintenance Organization and sytems

Evaluatie van bestaande instrumenten A. Kelly ISBN 0750636033

en een visie voor de toekomst. 66 Maintenance Management of industrial Maintenance

TNO Rapport 2005-BBE-R040A A. Kelly ISBN 0750636033

27 Omgaan met Storingen 66 Maintanability

Elsevier, ISBN 9061554993 B.S. Blanchard, D. Verma, E.L. Peterson ISBN 97980471591320

28 Warmteleer voor technici 67 Developing Performance Indicators for Managing Maintenance

Ir. A.J.M. van Kimmenaede, ISBN90-401-0449-2 T. Wireman ISBN 0831131845

29 Statistiek om mee te werken 68 Improving Maintenance and Reliability through cultural change

Dr. A. Buijs, ISBN90-207-2733-8 S.J. Thomas ISBN 083113190X

30 Handboek installatie techniek 1+2 69 Blending Qualitative&Quantitative research methods

ISSO, ISBN 90-5044-094-0 R.M. Thomas ISBN 0761939326

31 Luchtbehandelingstechniek, opleidingssyllabus 1-16 70 Research Methods for Busienss students

TVVL cursus 1995 M. Sounder,P. Lewis, A. Thornhil ISBN 0273658042 (third edition)

32 Koeltechniek, opleidingssyllabus 1-8 71 FMEA : From theory to excecution

TVVL cursus 1998 H. Stamatis ISBN 0873895983

33 Product Development Management 72 The FMEA pocket handbook

Intergraal Ontwerp consortium oktober 2006 K.W. Dailey ISBN 097472212X

34 NEN 2767-1 Conditiemeting, NEN 2767-2 Gebrekenlijst 73 The basiscs of FMEA 2nd edition

35 Jaarverslag KPN en Form 20-6 2006 R.E. McDermott, R.J. Mikulak ISBN 9781563273773

36 Alle geldende KPN richtlijnen, uitgangspunten en voorschriften 74 HAZOP Guide to Best Practice

37 Energie Prestatie Advies Utiliteit (EPA-U) F. Crawly, M. Presto and B. Tyler ISBN 9780852955253

BRL 9500 1-2-3-4 74 Integrated Design and Engineering

38 Studie Literatuur opleiding Hogere Installatie Technieken (HIT) T. Zaal ISBN 9789079182039

Alle beschikbare informatie, syllabus en vakliteratuur.