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2013 Grant Thornton Management Services. All rights reserved. - 1 - Grant Thornton Management Consulting Key Aspects of Comprehensive Computerized Maintenance Management Systems July 18, 2013 2013 Grant Thornton Management Services. All rights reserved. 1) Maintenance aspects of CMMS 2) Functional aspects of CMMS 3) Process data aspects of CMMS 4) Implementation aspects of the CMMS Roadmap 5) Change aspects of CMMS implementation 6) CMMS guidance and recommendations Key Aspects of Comprehensive Computerized Maintenance Management Systems Agenda tation ons

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Page 1: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

2013 Grant Thornton Management Services. All rights reserved. - 1 -

Grant Thornton Management Consulting

Key Aspects of Comprehensive Computerized Maintenance Management Systems

July 18, 2013

2013 Grant Thornton Management Services. All rights reserved.

1) Maintenance aspects of CMMS

2) Functional aspects of CMMS

3) Process data aspects of CMMS

4) Implementation aspects of the CMMS Roadmap

5) Change aspects of CMMS implementation

6) CMMS guidance and recommendations

Key Aspects of Comprehensive Computerized Maintenance Management Systems Agenda

tation

ons

Page 2: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

Maintenance Aspects of CMMS

2013 Grant Thornton Management Services. All rights reserved.

Maintenance Operations

Operational Information Short-term

Operations Management

Feedback Response

“Failure” “Fix”

Typical Reactive Maintenance Cycle

Page 3: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

Time

Constant Revenue

T2

T1 Initial Operations

T0 (+) $

(-) $

$0

Systems and equipment have fixed costs that need to be covered; even when idle and not contributing to services or revenues. These fixed costs often include equipment leases, building rent, maintenance staff and insurance.

Reactive Maintenance

Fixed Cost

Profit

Fixed Cost

Reactive maintenance programs allow systems and equipment to run until they fail.

T2 Equipment Failure

Prof

it / L

oss

Time

Constant Revenue

T2 Equipment Failure

T3 T1 Initial Operations

T0 (+) $

(-) $

$0

Reactive Maintenance

Fixed Cost

Profit

Fixed Cost

Profit

Fixed Cost

Prof

it / L

oss Profit

Cost of Repair or Replacement

Profit

Fixed CostFixed Cost

However, profits will be reduced by the amount needed to repair or replace the failed component.

Fixed costs will generally remain unaffected by system failures.

Page 4: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

Time

Constant Revenue

T2 Equipment Failure

T3 Severe Equipment Failure

T4 Equipment Restored

T1 Initial Operations

Cost of Repair or Replacement

Cost of Repair or Replacement

Loss

T0 (+) $

(-) $

$0

Reactive Maintenance

Severe equipment failure often increase repair / replacement costs significantly. This may erode profitability to the point where operational losses are incurred for the entire period needed to replace or repair the system.

Profit

Fixed Cost Fixed Cost Fixed Cost

Fixed Cost

Fixed Cost

Profit

Profit

Note that fixed costs continue to be incurred, even during periods of reduced profitability or loss.

Prof

it / L

oss

Profit

Fixed Cost Fixed Cost

Profit

Profit

T3 Severe Equipment Failure

Time

T2 Equipment Failure

T4 Equipment Restored

T1 Initial Operations

Cost of Repair or Replacement

Cost of Repair or Replacement

Loss

T0 (+) $

(-) $

$0

Decreasing Revenue

Constant Revenue

Reactive Maintenance

During economic downturns, business / tenant loss will decrease revenue and gradually reduce profit over time. If the cost of repair / replacement is severe, decreased revenue will impact the amount of overall loss

Prof

it / L

oss

Fixed Cost Fixed Cost

Fixed Cost

FixFixFixFixFiFi ededededdd CosCosCosCosCC ttttt FixFixFixFixFiFi ededededdd CosCosCosCosCC tttttosCC tt

Impact of Economic Downturn on Profit / Loss over Time

Page 5: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

Fixed Cost Fixed Cost Fixed Cost

Time

Fixed Cost

Profit

T2 Equipment Failure

T3 Severe Equipment Failure

T4 Equipment Restored

T1 Initial Operations

Profit

Cost of Repair or Replacement

Cost of Repair or Replacement

Loss

T0 (+) $

(-) $

$0

Reactive Maintenance

As systems age, the frequency and severity of failure will increase. As a result, a gradual increase in maintenance repair / replacement

costs will decrease average profitability over time.

Fixed Cost Fixed Cost

Profit

Profit

Cost of Repair or Replacement

T5 Equipment Failure

T6 Severe Equipment Failure

Fixed Cost

Constant Revenue

Loss

Cost of Repair or Replacement

Average Profitability

Maintenance Costs

Prof

it / L

oss

Impact of System Aging on Profit / Loss over Time

Fixed Cost Fixed Cost Fixed Cost

Time

Fixed Cost

Profit

T2 Equipment Failure

T3 Severe Equipment Failure

T4 Equipment Restored

T1 Initial Operations

Profit

Cost of Repair or Replacement

Cost of Repair or Replacement

Loss

T0 (+) $

(-) $

$0

Reactive Maintenance

Thought quite common, reactive maintenance programs provide the least amount of control on the timing, cost or severity of

maintenance-related activities and their impact on business operations.

Fixed Cost Fixed Cost

Profit

Profit

Cost of Repair or Replacement

T5 Equipment Failure

T6 Severe Equipment Failure

Fixed Cost

Constant Revenue

Loss

Cost of Repair or Replacement

Average Profitability

Maintenance Costs

Prof

it / L

oss

Impact of System Aging on Profit / Loss over Time

Page 6: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

Reactive Maintenance Total Life-cycle Costs

Capital Costs Design Development / Build Purchase Installation Commissioning Staff Training Manuals & Documentation Maintenance Tools & Facilities Initial Spares Holding

Capital Costs

Maintenance Costs Labor Materials Spare part holding costs (stores) Engineering support costs (workshops) Contractors Overhead resources (admin, accounting)

Maintenance Costs

Lost Production & Quality-related Costs Facility non-availability costs Facility malfunction costs Legal liability costs Insurance costs

Lost Production &

Quality-related Costs

Operating Costs Labor Plant operations Engineering Energy Oil Gas Electricity Steam Water

Operating Costs

2013 Grant Thornton Management Services. All rights reserved.

Maintenance Operations

Operational Information

Maintenance History

Short-term Operations Management

“What, Who, When, Where”

Maintenance Plan (What, When)

“What, Why, How”

Feedback Planned Maintenance

Maintenance Planning and Management (Maintenance policies, objectives, procedures, processes)

Maintenance Audits & Performance Measurement

Near-term Tactical Management

“How Well”

Typical Preventive Maintenance Cycle

Page 7: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

2013 Grant Thornton Management Services. All rights reserved.

Maintenance Planning and Management (Maintenance policies, objectives, procedures, processes)

Maintenance Audits & Performance Measurement

Maintenance Plan (What, When)

Maintenance Operations

Operational Information

Maintenance History

Corporate Planning and Management (Corporate policies, objectives, procedures, processes)

Corporate Audits & Performance Measurement

Strategic Plan

Short-term Operations Management

Near-term Tactical Management

Long-term Strategic Management

“What, Why, How”

“What, Who, When, Where”

“What, Who, When, Where”

“How Well”

“What, Why, How”

“How Well”

Feedback Response

2013 Grant Thornton Management Services. All rights reserved.

Maintenance Planning and Management (Maintenance policies, objectives, procedures, processes)

Measure

Test Results vs. Requirements &

Expectations

Monitor & Test

Test Plans, Schedules,

Work Orders & Parameters

Corrective Maintenance

Restore Equipment Condition Restore Operational Status

Reduce Downtime

Adjust “braces”

Repair “fillings”

Replace “dentures”

Parts / Stock

Parts / Stock

Preventive Maintenance

Extend Useful Life Reduce Unplanned Failures

Parts / Stock PASS

FAIL

Maintenance Management Preventive vs. Corrective Maintenance

Page 8: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

Time

Constant Revenue

T2 Perform Scheduled Maintenance

T1 Initial Operations

T0 (+) $

(-) $

$0

Preventive Maintenance Pr

ofit

/ Los

s

Fixed Cost

Fixed Cost

Profit

Preventive maintenance programs address timing, cost or severity issues by proactively planning downtime

and maintenance in accordance with regular timeframes recommended by manufacturers of the

systems and components in use.

Variable Cost

Systems and equipment have variable costs associated with their operation, repair, environment and external market conditions. These variable costs include electricity, lubricants, and spare parts.

Time

Constant Revenue

T2 Perform Scheduled Maintenance

T1 Initial Operations

T0 (+) $

(-) $

$0

Preventive Maintenance

Prof

it / L

oss

Fixed Cost

Fixed Cost

Profit

T3 Perform Scheduled Maintenance

T4 Perform Scheduled Maintenance

T5 Perform Scheduled Maintenance

Fixed Cost Fixed Cost Fixed Cost Fixed Cost

Variable Cost Variable Cost Variable Cost Variable Cost Variable Cost

Facilities with properly designed preventive maintenance programs can effectively plan and manage variable costs within defined ranges.

Variable Cost Range

Page 9: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

Profit Profit Profit Profit

Time

Constant Revenue

T2 Perform Scheduled Maintenance

T1 Initial Operations

T0 (+) $

(-) $

$0

Preventive Maintenance Pr

ofit

/ Los

s

Fixed Cost

Fixed Cost

Profit

T3 Perform Scheduled Maintenance

T4 Perform Scheduled Maintenance

T5 Perform Scheduled Maintenance

Fixed Cost Fixed Cost Fixed Cost Fixed Cost

Variable Cost Variable Cost Variable Cost Variable Cost Variable Cost

Though unplanned failures may still occur, they tend to be fewer in number and less severe. Preventive maintenance programs generally result in less volatile, more manageable maintenance and profitability profiles over the lifetime of the facility.

2013 Grant Thornton Management Services. All rights reserved.

Maintenance Management “Is it worth the effort?”

Task Reactive Maintenance Preventive Maintenance (unplanned / unscheduled / corrective work) (planned / scheduled work) Lubricate bearings $120 $0 (precision seal installed when purchased)

Cleaning $0 $1,800 Repair $4,000 $240 Planning $0 $100 Inspection $0 $1,800 Motor rewind $20,000 $2,500 (including new precision seals) Lost production $60,000 $0 Total Costs $84,120 $6,440

Sample 10-year maintenance cost profile of a typical motor

In this example, having a preventive management program would have saved around 92.3% in total maintenance costs (almost $80,000) associated with just this one motor over its typical 10-year lifespan.

Case 1)

Case 2)

Setting up a lamp maintenance plan that schedules the replacement all lamps in each designated area at the same time can save up to 90% in associated labor, inventory and lost productivity costs. When combined with maintenance strategies that use economic lamp types and ballast wiring designs, those planned, lower cost replacements could even be done 25-60% less often.

Page 10: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

2013 Grant Thornton Management Services. All rights reserved.

Functional aspects of CMMS

Functional Aspects of CMMS Maintenance Management

Manage and control Maintenance Department functions - Planning and scheduling equipment maintenance - Planned (preventive) maintenance - Metered maintenance - Equipment runtime - Cycle time - Unplanned (reactive) maintenance - Work requests - Routine checks - Statutory checks - Mandatory checks - Overhauls

Manage Preventive

Maintenance

Manage Reactive

Maintenance

Manage Work

Requests

Monitor maintenance spending - Ensure that targets are met - Savings opportunities are pursued Integrate CMMS with accounting systems - Document and record all maintenance stock control and purchasing in enterprise software systems - SAP, J.D. Edwards

Monitor Maintenance

Spending

Integrate Stock Control & Purchasing

CMMS

Page 11: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

CMMS

Manage CMMS databases - Maintenance operations - Maintenance personnel - Maintenance contractors / subcontractors

Manage Maintenance Operations

Manage maintenance operation functions - Work orders (WO) - Preventive maintenance (PM) - Asset management (AM) - Inventory control (IC) - Safety management (SfM) - Gauge and calibration management (G&C) - Contractor maintenance management (CnM) - Maintenance audits

Provide Reports & Statistics

Provide maintenance reports and statistics - Downtime - Statistics-related KPIs - Maintenance costs - Location - Department - Personnel

Manage CbM

Initiate condition-based maintenance (CbM) on the basis of an asset’s condition - Vibration level - Oil particulates - Wear patterns - Time since last replacement - Meter readings

Manage Assets, Plant & Equipment

Manage and control asset, plant and equipment maintenance using IT systems and applications - Computerized Maintenance Management System (CMMS) - Predictive maintenance (PdM)

Functional Aspects of CMMS Computerized Maintenance Management Systems

2013 Grant Thornton Management Services. All rights reserved.

Process Data Aspects of CMMS

Page 12: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

2013 Grant Thornton Management Services. All rights reserved.

A process is a series of tasks that lead to a final work state called the functional requirement.

Minimally, all processes provide information on: 1) What to do (tasks), and 2) How to do it (sequence)

Breaker Opened

Open Breaker

Replace Motor

Motor Replaced

Panel Tagged

However, it would often be useful to know more

Process Data Aspects of CMMS

2013 Grant Thornton Management Services. All rights reserved.

1) The breaker is in a panel located in a secure Data Center 2) DC Air Conditioning can only be off for 60 minutes 3) The Duty Officer has to give permission to access the DC 4) The Duty Officer will be here after 1:30PM 5) The panel is secured with screws 6) The motor weighs 75 kilograms

Breaker Opened

Motor Replaced

Panel Tagged

Process Data Aspects of CMMS

A process is a series of tasks that lead to a final work state called the functional requirement.

Open Breaker

Replace Motor

Page 13: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

2013 Grant Thornton Management Services. All rights reserved.

Work flows document the series of work states that result from the performance of tasks within the process.

In business, work flows are sometimes referred to as "work-in-progress"

Breaker Opened

Open Breaker

Replace Motor

Motor Replaced

Panel Tagged

Work states are conditions that result from the successful completion of tasks.

Process Data Aspects of CMMS

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Task Input Output

Controls

Supports

In order to accommodate any additional data that might be available, the basic flow model needs to be expanded to include Controls and Supports,

This facilitates a more well-rounded understanding of the process.

Locations? Timeframes? Restrictions? Issue? Requirements? Costs? Work States?

Process Data Aspects of CMMS

Page 14: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

2013 Grant Thornton Management Services. All rights reserved.

Task

How, Why, When

Who, Where, What

What What How Long, How Often

How Long, How Much

How Long, How Often

Input Output

Controls

Supports (mechanisms)

This establishes a model that minimally supports the additional capture of data related to how, why, when, where, and who.

Task

Process Data Aspects of CMMS

2013 Grant Thornton Management Services. All rights reserved.

Completed by 5PM Daily Approved Supplier List Engineering Specification Procedure P.1.1

Input Output

Supports (mechanisms)

How, Why, When

Who, Where, What

What What How Long, How Often

How Long, How Much

How Long, How Often

CONTROLS identify the laws, policies, procedures, timing requirements and criteria used to define how and why tasks are performed.

Task Prepare P.O.

Process Data Aspects of CMMS

Page 15: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

2013 Grant Thornton Management Services. All rights reserved.

SUPPORTS (mechanisms) identify the infrastructure, resources, data stores, locations and personnel needed to conduct the task.

Purchasing Admin Saraburi Warehouse P.O. form F1 Purchasing Module AS400

How, Why, When

Who, Where, What

What What How Long, How Often

How Long, How Much

How Long, How Often

Completed by 5PM Daily Approved Supplier List Engineering Specification Procedure P.1.1

Input Output Task Prepare P.O.

Process Data Aspects of CMMS

2013 Grant Thornton Management Services. All rights reserved.

Task Prepare P.O.

How, Why, When

Who, Where, What

What What How Long, How Often

How Long, How Much

How Long, How Often

Completed by 5PM Daily Approved Supplier List Engineering Specification Procedure P.1.1

P.O. Requested

P.O. Prepared

Purchasing Admin Saraburi Warehouse P.O. form F1 Purchasing Module AS400

This model differs from most others by simultaneously capturing WORK STATES between tasks. This gives the plant

the ability to quickly define and support workflow implementation.

Process Data Aspects of CMMS

Page 16: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

2013 Grant Thornton Management Services. All rights reserved.

P.O. Requested

P.O. Prepared

How, Why, When

Who, Where, What

What What How Long

How Long

How Long

Purchasing Admin Saraburi Warehouse P.O. form F1 Purchasing Module AS400

Completed by 5PM Daily Approved Supplier List Engineering Specification Procedure P.1.1

Wait = 15 hrs Wait = 24 hrs

Process = 9 hrs Actual = 1 hr

Key TIME ELEMENTS are also captured to provide the means to assess, analyze and eventually improve throughput.

Task Prepare P.O.

Process Data Aspects of CMMS

2013 Grant Thornton Management Services. All rights reserved.

The FREQUENCY of each work state gives the team the ability to factor in the relative weighting of various processes

to assess impact and prioritization

P.O. Requested

P.O. Prepared

How, Why, When

Who, Where, What

What What How Long

How Long

How Long

Purchasing Admin Saraburi Warehouse P.O. form F1 Purchasing Module AS400

Completed by 5PM Daily Approved Supplier List Engineering Specification Procedure P.1.1

Wait = 15 hrs Wait = 24 hrs

Process = 9 hrs Actual = 1 hr

How Often How Often Freq = 100% Freq = 100%

Task Prepare P.O.

Process Data Aspects of CMMS

Page 17: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

2013 Grant Thornton Management Services. All rights reserved.

P.O. Requested

P.O. Prepared

How, Why, When

Who, Where, What

What What How Long

How Long

How Long

Purchasing Admin Saraburi Warehouse P.O. form F1 Purchasing Module AS400

Completed by 5PM Daily Approved Supplier List Engineering Specification Procedure P.1.1

Wait = 15 hrs Wait = 24 hrs

Process = 9 hrs Actual = 1 hr

How Often

How Much

How Often Freq = 100%

B 40

Freq = 100%

Mid-scale payroll data from HR for each role provides a means to gauge and quantify RESOURCE COSTS / TASK. (e.g. If the average

Admin salary is B6,400/month, his hourly rate would be B40/hour.)

Task Prepare P.O.

Process Data Aspects of CMMS

2013 Grant Thornton Management Services. All rights reserved.

P.O. Requested

Purchasing Admin Saraburi Warehouse P.O. form F1 Purchasing Module AS400

Completed by 5PM Daily Approved Supplier List Engineering Specification Procedure P.1.1

Wait = 15 hrs

Process = 9 hrs Actual = 1 hr

Freq = 100%

B 40

P.O. Prepared Wait = 24 hrs Freq = 100%

Engineering Spec Approval Criteria Procedure P.2.0

Purchasing Manager Bangkok HQ P.O. record Purchasing Module AS400

P.O. Approved

P.O. Disapproved

Wait = 5 hrs Freq = 85%

Wait = 17.5 hrs Freq = 15%

Process = 4 hrs Actual = 0.5 hr

B 200

Capturing data on each task in this structured format quickly produces an integrated source of valuable process-related information.

Approve P.O.

Prepare P.O.

Process Data Aspects of CMMS

Page 18: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

2013 Grant Thornton Management Services. All rights reserved.

P.O. Requested P.O.

Disapproved

Prepare P.O.

Purchasing Admin Saraburi Warehouse P.O. form F1 Purchasing Module AS400

Completed by 5PM Daily Approved Supplier List Engineering Specification Procedure P.1.1

Wait = 15 hrs

Process = 9 hrs Actual = 1 hr

Freq = 100%

P.O. Prepared Wait = 24 hrs Split = 100%

Engineering Spec Approval Criteria Procedure P.2.0

Purchasing Manager Bangkok HQ P.O. record Purchasing Module AS400

P.O. Approved

Approve P.O.

Wait = 5 hrs Freq = 85%

Wait = 17.5 hrs Freq = 15%

Process = 4 hrs Actual = 0.5 hr

B 200 B 40

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rrProco sess == 9 hrh sssAcAcAccAcAAcAcAcAcAcAccAccAAcAcAAAAAAAA tututuutuututututuutututtttt alalallaalaalalalllaalallll ============= 1111111111111111111111111 hrhrhrhrhhrhhrhrhrhrhhrhhhhhhhhhhh

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PrP ocess ss = 4 4 hrsAcAcAcAAcAcAAcAcAAcAcAAAAAcAAcAcAAcAcAActutuututuutuututututtuutututututututututuut alalalaalaalaalaalallaaalalalalaalalala ============= 0.0.0.0.000000000000000000000000 555555555555555 hrhrhhhrhhhrhhrhhhrhrhrhrhrhrhrhrhrhrhrhrhrh

Therefore, supplementing the process model, information about the process should also be captured within a database.

CMMS

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The ability to analyze process information provides insight into utilization, capacity, workflow, redundancy, and productivity issues that impact the overall effectiveness of maintenance operations.

Process Data Aspects of CMMS

2013 Grant Thornton Management Services. All rights reserved.

1) What are the 10 most expensive work orders to perform?

2) Are Maintenance Electricians over or under-utilized?

3) Are Purchasing resources qualified for the tasks they participate in?

4) Which departments are impacted by or accountable for compliance with the requirements of 21CFR Part 11?

5) What areas can be addressed to improve overall throughput the most?

The ability to analyze process-related information provides the means to answer more difficult operational questions such as :

Process models show us ‘how’ to address various goals Process data allow us to address ‘how well’.

Process Data Aspects of CMMS

Page 19: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

Here is a basic flow model for the process related to some scheduled preventive maintenance.

It consists of a series of tasks being done in sequence.

Process Data Aspects of CMMS The Value of Process Data

Maintenance Manager x x x xMaintenance Technician P x x xScheduler P x x x x

Adding roles, we can identify who the participants are on each task.

M iM i t MM

Process Data Aspects of CMMS The Value of Process Data

Page 20: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

Add Controls, and we can see why they need to do each task, and how each should be done.

Chart of Accounts xCurrent Workload by Resource xInventory Reorder Level xMaintenance Policy x x x x xMaintenance Procedure x x x x x x x x xMaintenance Schedule x xPre-determined Maintenance Date x xStandard Cost List x

Maintenance Manager x x x xMaintenance Technician P x x xScheduler P x x x x

M iM i t MM

Process Data Aspects of CMMS The Value of Process Data

Resource Supports tell us what they are using, and where the work is being done.

CMMS Module - Inventory Module I x xCMMS Module - Preventive Maintenance I xCMMS Module - Purchase Order I xCMMS Module - Report I xCMMS Module - Work Management I x x x x xFinancial Software I xLocation: Plant Office I x x x x x x xLocation: Plant Spaces I xSpare Parts I x xTools I x x

Chart of Accounts xCurrent Workload by Resource xInventory Reorder Level xMaintenance Policy x x x x xMaintenance Procedure x x x x x x x x xMaintenance Schedule x xPre-determined Maintenance Date x xStandard Cost List x

Maintenance Manager x x x xMaintenance Technician P x x xScheduler P x x x x

M iM i t MM

Process Data Aspects of CMMS The Value of Process Data

Page 21: Grant Thornton Management Consulting - ISPE Th · PDF fileGrant Thornton Management Consulting Key Aspects of Comprehensive Comput erized Maintenance Management Systems ... Maintenance

Interactive supports are the data, document and interface whats needed to support specific tasks. The model is now set up to support data analysis.

CMMS Module - Inventory Module I x xCMMS Module - Preventive Maintenance I xCMMS Module - Purchase Order I xCMMS Module - Report I xCMMS Module - Work Management I x x x x xFinancial Software I xLocation: Plant Office I x x x x x x xLocation: Plant Spaces I xSpare Parts I x xTools I x x

Chart of Accounts xCurrent Workload by Resource xInventory Reorder Level xMaintenance Policy x x x x xMaintenance Procedure x x x x x x x x xMaintenance Schedule x xPre-determined Maintenance Date x xStandard Cost List x

Maintenance Manager x x x xMaintenance Technician P x x xScheduler P x x x x

M iM i t MM

Cost Allocation Screen xData - Cost x xData - Customer xWork Order x x x x x x

Process Data Aspects of CMMS The Value of Process Data

What does the Maintenance Technician do?

CMMS Module - Inventory Module I x xCMMS Module - Preventive Maintenance I xCMMS Module - Purchase Order I xCMMS Module - Report I xCMMS Module - Work Management I x x x x xFinancial Software I xLocation: Plant Office I x x x x x x xLocation: Plant Spaces I xSpare Parts I x xTools I x x

Chart of Accounts xCurrent Workload by Resource xInventory Reorder Level xMaintenance Policy x x x x xMaintenance Procedure x x x x x x x x xMaintenance Schedule x xPre-determined Maintenance Date x xStandard Cost List x

Maintenance Manager x x x xMaintenance Technician P x x xScheduler P x x x x

M iM i t MM

Cost Allocation Screen xData - Cost x xData - Customer xWork Order x x x x x x

Process Data Aspects of CMMS The Value of Process Data

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What does the Scheduler use to allocate costs to specific work orders?

CMMS Module - Inventory Module I x xCMMS Module - Preventive Maintenance I xCMMS Module - Purchase Order I xCMMS Module - Report I xCMMS Module - Work Management I x x x x xFinancial Software I xLocation: Plant Office I x x x x x x xLocation: Plant Spaces I xSpare Parts I x xTools I x x

Chart of Accounts xCurrent Workload by Resource xInventory Reorder Level xMaintenance Policy x x x x xMaintenance Procedure x x x x x x x x xMaintenance Schedule x xPre-determined Maintenance Date x xStandard Cost List x

Maintenance Manager x x x xMaintenance Technician P x x xScheduler P x x x x

M iM i t MM

Cost Allocation Screen xData - Cost x xData - Customer xWork Order x x x x x x

Process Data Aspects of CMMS The Value of Process Data

Who are the people effected by tasks that are not covered by policy?

CMMS Module - Inventory Module I x xCMMS Module - Preventive Maintenance I xCMMS Module - Purchase Order I xCMMS Module - Report I xCMMS Module - Work Management I x x x x xFinancial Software I xLocation: Plant Office I x x x x x x xLocation: Plant Spaces I xSpare Parts I x xTools I x x

Chart of Accounts xCurrent Workload by Resource xInventory Reorder Level xMaintenance Policy x x x x xMaintenance Procedure x x x x x x x x xMaintenance Schedule x xPre-determined Maintenance Date x xStandard Cost List x

Maintenance Manager x x x xMaintenance Technician P x x xScheduler P x x x x

M iM i t MM

Cost Allocation Screen xData - Cost x xData - Customer xWork Order x x x x x x

Process Data Aspects of CMMS The Value of Process Data

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Implementation Aspects of the CMMS Roadmap

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CMMS Implementation Roadmap

To establish, improve and sustain the reliability of the facility.

2) Understand Facility Level

Maintenance Objectives

Support the facility’s operating pattern Achieve and sustain targeted availability levels Achieve and sustain targeted production and quality levels Achieve facility longevity expectations Achieve minimum safety standards Minimize resource and facility life-cycle costs Maximize productivity over the long-term Generate timely, relevant maintenance status reports

3) Understand Performance Expectations

and Priorities

Facility operating pattern is 3 shifts / day, 5 days / week Facilities must achieve greater than 99% availability during operating hours Production: 95% of tenant complaints resolved within 1 hour Systems must achieve 95% of their designed life-spans Safety first: 0 serious injuries / year Maintenance costs should not increase by more than 3% per year Spare part waste and defect costs shall not exceed 5% of overall budget A maintenance status report needs to be generated each week

1) Understand the Maintenance Mission

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5) Identify the Systems involved in satisfying each

Unit Objective

e.g.) HVAC units utilize heating, ventilation, chill water, and I&C control systems Need to inventory of all systems and relevant components through both document and visual verification.

6) Understand and document how those Systems satisfy Unit

Objectives

Need to document the temperature regulation process Need to document standard operating procedure (SOP) for water quality tests Need to document inventory stock reorder criteria

The HVAC system has to maintain temperatures between 70-75 degrees F The HVAC system only needs to be available on weekends per special request Lighting replacement costs need to be reduced by 15% Potable water quality needs to be improved within the next 12 months

4) Translate Facility Objectives into

Unit Level Objectives

Equipment hierarchy: Facility e.g. Office building Unit e.g. Potable water unit System e.g. Chill water system, chemical treatment system Component e.g. Condenser, Return water pump Part e.g. Pressure seal, valve bonnet, motor bearing

CMMS Implementation Roadmap

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Identify maintenance tasks that need to be performed (e.g. lubrication, inspection) Identify how often those maintenance tasks will need to be performed (frequency) Categorize each maintenance task by job type (e.g. minor, major, overhaul)

7) Develop Life Plans for each Unit

1st line maintenance: Emergency jobs - work needing to be carried out in the shift of occurrence. Small jobs (corrective, preventive) that can be 'fitted' into the schedule without a lot of detailed planning.

8) Develop Maintenance Schedules for all Units

Integrate maintenance requirements and frequencies from all unit life plans Factor in key operating requirements (e.g. summer break, promotion campaigns) Classify all maintenance tasks by their scheduling profiles (1st line, 2nd line, etc.)

2nd line maintenance: Larger preventive jobs (services, small overhauls) Corrective jobs that require planning Mid-size jobs that can be scheduled based on priority into a weekend or some other available time window.

3rd line maintenance: Major plant overhauls (or parts of plant) Jobs requiring the plant to be offline for considerable lengths of time (downtime) Jobs that are generally carried out at long to medium-term intervals (Low periodicity) Jobs requirement long lead-time for planning

CMMS Implementation Roadmap

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Workload dictates required size & composition of the maintenance. organization. Two other key considerations are the distribution of resources and authority.

9) Assess the Maintenance Organization

Resource structure is the logistic distribution of personnel, spares, tools and information that is best suited to meeting defined maintenance requirements (e.g. response time, output quality) Think about the resources in a hospital emergency room vs. those in a typical patient room. The additional emergency room equipment was geographically distributed to meet the need for timely response. The resource structure should be designed to achieve the best resource utilization

9a) Determine the appropriate

Resource Structure

Administrative structure is the distribution of decision making authority that is best suited to meeting defined maintenance requirements Think about each person’s authority to pull a fire alarm without having to first gain permission from the Maintenance Engineer It is the hierarchy of work roles ranked by authority and responsibilities, that determines what, when and how maintenance should be conducted

9b) Determine the appropriate

Administrative Structure

CMMS Implementation Roadmap

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Enter facility objectives and expectations (SLA, control parameters, priorities) Enter unit objectives and expectations (SLA, control parameters, priorities) Enter in-scope equipment data (unit, system, component, part) Enter in-scope processes, critical work states and workflow criteria Enter life plan data (required maintenance jobs, frequencies, type) Enter the maintenance schedule and scheduling characteristics Enter the resource structure (logistic distribution, quantity, requirements) Enter the administrative structure (roles, responsibilities, authority)

10) Configure and Implement the

Maintenance System (CMMS)

CMMS Implementation Roadmap

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Change Aspects of CMMS Implementation

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Most companies naturally focus on system-related factors when preparing to install a CMMS product. However, factors that delay or even prevent successful implementation are usually "soft side" issues related to maintenance processes, procedures and people. These factors need to be addressed holistically to ensure the impact of CMMS changes are fully accounted for in an integrated manner.. In turn, each of these issues needs to be assessed and verified against maintenance operation and corporate policies, to ensure management alignment and compliance with requirements.

Maintenance Mission Are maintenance operations aligned with business goals and requirements?

Program & Controls Are maintenance issues effectively managed and controlled?

Process Is maintenance conducted in the most productive manner possible?

People & Organization Are maintenance resources adequately qualified and motivated?

System & Facilities Are systems suited and fully utilized to support maintenance operations?

Improved Maintenance Environment

Corporate Mission

“As-is” Maintenance Environment

The Real Impact of Change The Nature of Change Holistic CMMS Impact

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Strategic Level Corporate Planning & Management

Tactical Level Maintenance Planning & Management

Operational Level Maintenance Operations

Top management unaware of issues Maintenance is not valued

Uncoordinated effort Poor knowledge management

Reactive Maintenance High inventory-related costs

The Nature of Change Problems by Level

TacticMaint

Maint

UncoPoor

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Existing Maintenance Organization, Processes,

Systems, and Data

“Ideal” Usage New CMMS

Features, Functions and Capabilities

Maintenance “Best Practice”

All CMMS software products are designed and built around some “ideal” set of assumptions, processes and data sets to handle maintenance management

However, companies soon realize that these ideals rarely fit their operations or meet their requirements, without some, often significant, degree of customization.

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The Nature of Change Suitability of Fit

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Effective CMMS change then became dependent upon the ability to clearly define the balance between the adoption of design features and best practice scenarios

Adopt Adapt

eeee etweebebbbbsss

en thhee doption of desiadaen t gn featuressgn s nndn nanand the adaptation of existing operations.

Existing Maintenance Organization, Processes,

Systems, and Data

New CMMS Features, Functions

and Capabilities

Maintenance “Best Practice”

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The Nature of Change Suitability of Fit

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CMMS Guidance and Recommendations

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Avoid associating maintenance with just repairs. The value of maintenance management is increased reliability and

a lower overall cost of ownership.

Maintenance Management Primary Functions and Benefits

Maintenance Management

Preventive Management

Inventory Management

Report Management

Work Management

Purchase Order Management

Reactive Management

CMMS

Cost Accounting

Key Maintenance Management Functions

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General CMMS

Software Selection Criteria

Cost Effectiveness

Customization Capabilities

Multi-Level, Training

Graphic Capabilities

Simultaneous

review of data & drawings

Attached pictures

Multi-Tasking Capabilities

Integrated Functions

"Nice-to-have"

CMMS Features,

Functions & Capabilities

Work Order System

Schedule

maintenance

Generate Work Orders

Ability to customize on-line

Existing

screen layouts,

Extra tables, Reports

Ability to attach user-defined

value lists to any entry field

Data Quality, User-friendly

Ability to access the CMMS database

SQL queries

Standard Queries,

Ad hoc Queries

Ability to add new or

non-maintenance related screens

Recertification or Inspection-related

"Have-to-have"

CMMS Modules

Equipment Module

Contains all information about

the equipment being maintained

Preventive Maint. Module

Maintenance Schedules

Reliability, Availability

Work Order Tracking Module

Work Requests,

Work Orders

Meets monitoring requirements

Job Plan Module

Work Plans

(Procedures)

Reference Library Links

CMMS Selection Software Selection Criteria

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"Think carefully about the equipment number scheme. You will be stuck with it forever." "Don't rush your implementation. Have a well thought plan and SOPs" "Don't try to make the software fit your business practices. Some practices may need to be changed." "Get the naming convention in place. Treat equipment and location as separate entities." "Use drop down menus with pick lists whenever possible." "Be very generous with the amount of training provided to all users." "Be aware that the size of spares inventory and other procurement costs are often higher in pharmaceutical plants. New or frequently upgraded products require frequent changes in inventory and plant equipment."

Random Notes from the Field Recommendations and Caveats

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Tantra Tantraporn

Partner Grant Thornton Management Consulting Co., Ltd. 18th Floor Capital Tower, All Season Place 87/1 Wireless Road Bangkok 10330 Thailand.com (w) 02-206-8222 x8230, (m) 089-075-6400 [email protected]