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    Maintenance Management ManualHolcim Maintenance Strategy

    Reference Number: MER.1.MM.03

    Release Date: January 01, 2010

    Revision No.: 00

    Holcim Group Support LtdCement Manufacturing ServicesMaintenance & Equipment Reliabil ity

    Author: Daniel Reiser

    Reviewed by: Jean-Yves Marrel

    Approved by: Hans Burger

    Holcim Group Support Ltd

    Cement Manufacturing Services

    Im Schachen

    CH-5113 Holderbank

    Phone +41 58 858 52 32

    Fax +41 58 858 52 30

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    MAINTENANCE MANAGEMENT MANUAL

    HOLCIM MAINTENANCE STRATEGY

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    Table of Contents

    1. PURPOSE 3

    2. INTRODUCTION 3

    3. THE EVOLUTION OF MAINTENANCE 3

    3.1 Breakdown Maintenance Strategy 4

    3.2 Planned Maintenance Strategy 4

    3.3 Preventive Maintenance Strategy 5

    3.4

    Condition based Maintenance / Proactive Strategy 5

    4. HOLCIM MAINTENANCE STRATEGY 6

    4.1 Equipment Reliability 7

    4.2 Maintenance processes 10

    4.3 Personnel & Organization 15

    5. LINKS TO HOLCIM STANDARDS, GUIDELINES AND PRINCIPLES 17

    5.1 Plant Master Plan (PMP) 17

    5.2 CAPEX Projects, ProMap 17

    5.3 Project Management Approach (PMA) 18

    6. MESSAGE 18

    7.

    REVISION LOG 19

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    1. PURPOSE

    This chapter describes the philosophy of the Holcim maintenance strategy that shall

    be applied in order to achieve the overall maintenance targets. The main drivers to

    successfully implement the maintenance strategy are described more in detail in the

    individual chapters to follow.

    2. INTRODUCTION

    Proper maintenance of plant equipment significantly contributes to the overall plant

    performance and its relevant key performance indicators. Although maintenance is

    often seen as an expense, a more positive approach is looking at it to view

    maintenance works as a profit center. The key to this approach lies in a proactive

    maintenance approach.

    The definition of maintenance often states maintenance as an activity carried out for

    any equipment to ensure its reliability to perform its functions. Maintenance to most

    people is any activity carried out on an asset in order to ensure that the asset

    continues to perform its intended functions, or to repair any equipment that has

    failed, or to keep the equipment running, or to restore to its favorable operating

    condition.

    3. THE EVOLUTION OF MAINTENANCE

    Over the years, many new strategies have been implemented as maintenance

    strategies which are intended to overcome the problems which are related to

    equipment breakdowns. Some of the common maintenance strategies are as

    follows (see figure below).

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    Break down

    Maintenance

    Fix it when itbreaks

    State of the art

    Lubrication

    Inspections

    Condition monitoring

    Root Cause Failure

    Anal ysis

    Failure history of parts

    and equipment

    Preventive

    Maintenance

    Relationship between

    failureprobability and

    age

    System for planning

    and controlling

    Fix time replacement

    Planned

    Maintenance

    Interventions based

    on condition

    Design for reliability

    Risk Assessment

    Condi tion based

    Maintenance

    Break down

    Maintenance

    Fix it when itbreaks

    State of the art

    Lubrication

    Inspections

    Condition monitoring

    Root Cause Failure

    Anal ysis

    Failure history of parts

    and equipment

    Preventive

    Maintenance

    Relationship between

    failureprobability and

    age

    System for planning

    and controlling

    Fix time replacement

    Planned

    Maintenance

    Interventions based

    on condition

    Design for reliability

    Risk Assessment

    Condi tion based

    Maintenance

    Figure 1 Evolution of Maintenance and its strategies

    3.1 Breakdown Maintenance Strategy

    This is one of the earliest maintenance strategies in the industry. The approach to

    maintenance is totally reactive and only act when the equipment needs to be fixed.

    This strategy has no routine maintenance task and also described as no scheduledmaintenance strategy. To rectify the problem, corrective maintenance is performed

    on the equipment. Thus, this activity may consist of reparation, restoration or

    replacement of components. The strategy is to apply the corrective maintenance

    activity only, which is required to correct a failure that has occurred or is in the

    process of occurring. This highly reactive strategy is very costly and does not allow

    an appropriate control of downtime.

    3.2 Planned Maintenance Strategy

    This is a time-based maintenance strategy where on a predetermined periodicbasis, equipment is taken off-line, opened up and inspected. Based on visual

    inspection, repairs are made and the equipment is then put back on-line. Thus under

    this equipment maintenance strategy, replacing, overhauling or remanufacturing an

    item is done at fixed intervals regardless of its condition at the time. Although this is

    a well-intended strategy, the process can be very expensive as typically many times

    everything was correct. Nevertheless, some preventive maintenance is necessary

    as some regulation require that annual/bi-annual inspection to be conducted (e.g.

    boiler inspections). This strategy leads typically to early replacements of

    components and can therefore results in high maintenance cost.

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    3.3 Preventive Maintenance Strategy

    Preventive / Predictive maintenance is a more condition-based approach tomaintenance. The approach is based on measuring of the equipment condition in

    order to assess whether an equipment will fail during some future period, and then

    taking action to avoid the consequences of that failures. This is where predictive

    technologies (i.e. vibration analysis, infrared thermographs, ultrasonic detection,

    etc.) are utilized to determine the condition of an equipment, and to decide on any

    necessary repairs. Lubrication charts and instructions are developed and performed

    on a predetermined frequent base. Apart from the predictive technologies, statistical

    process control techniques, equipment performance monitoring or human senses

    are also adapted to monitor the equipment condition. This approach is more

    economically feasible strategy as labors, materials and production schedules are

    used much more efficiently.

    3.4 Condit ion based Maintenance / Proactive Strategy

    Unlike the three types of maintenance strategies which have been described above,

    condition based maintenance can be considered as a complementary approach to

    maintenance strategy. Dissimilar to the above strategies proactive maintenance

    concentrates on the monitoring and correction of root causes to equipment failures.

    The proactive maintenance strategy is also designed to extend the useful age of the

    equipment to reach the wear-out stage by adaptation a high mastery level of

    operating precision. Failures and results from preventive maintenance activities,

    inspections, Pareto analysis are frequently reviewed, analyzed and used for further

    improvements, optimizations of the maintenance approach. The preventive

    maintenance program is strongly linked, based on an in-depth risk analysis. Design

    deficiencies of equipments / components are detected through frequent analysis and

    designed out.

    Maintenance

    Strategy

    Maintenance

    Approach

    Signification

    Breakdown

    Maintenance

    Fix-it when broken High cost, no contro of downtime

    Fully reactive

    Planned

    Maintenance

    Scheduled

    Maintenance

    Periodic component replacement on a timely

    base, early replcement

    Prevenitve

    Maintenance

    Condition-based

    Monitoring

    Maintenance decision based on equipment

    condition, pro-active

    Condition based

    Maintenance

    Detection of Sources

    of Failures

    Monitoring and correcting failing root causes,

    risk assessment,pro-active

    Figure 2 Overview of different strategies and its characteristics

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    4. HOLCIM MAINTENANCE STRATEGY

    Considering the above evolution stages in maintenance, Holcim definitely strives forthe Preventive and Condition based maintenance strategy with a high focus on

    reliability and pro-active maintenance.

    Basically three fundamental areas must be assured in order to achieve the overall

    targets of high equipment reliability and availability at sustainable low costs.

    Processes

    Proactive maintenance approach

    Systematic maintenance process

    Reliable Equipment

    Design and quality

    Maintained in adequate condition

    Replacement strategy

    Organization / People

    Roles & responsibilities

    Key positions filled

    High level of skills, competences

    and experience

    High Equipment

    Reliability MTBF

    best practice

    High Equipment

    Availabili ty - Target

    Optimal Maintenance

    Cost Best practice

    Long Lifetime

    (optimal replacement

    CAPEX)

    Spares & materials

    inventory value

    Figure 3 Fundamental areas of maintenance

    The interrelation between the three areas is always based on reliability, be on

    equipment base, people and processes (see figure below).

    People Reliabilit y

    Leadership

    Training & Development

    Communication

    Performance Management

    Process Reliabilit y

    Business Processes

    Work Management Processes

    Production Processes

    Equipment Reliability

    Tools (RCM, PdM, PM)

    Asses sments

    Reliability teams

    Personnel

    OH&S

    Spare Parts

    Management

    Replacement

    Problem

    SolvingPerformanceAnal ysi s

    Maintenance

    execution

    Planning &

    Scheduling

    Operation

    Design

    Reliability

    Personnel

    OH&S

    Spare Parts

    Management

    Replacement

    Problem

    SolvingPerformanceAnal ysi s

    Maintenance

    execution

    Planning &

    Scheduling

    Operation

    Design

    Reliability

    Figure 4 Interrelation of reliability

    Reliability is the ability of a person or system to perform and maintain its functions in

    routine circumstances, as well as hostile or unexpected circumstances. Reliability

    may be defined in several ways:

    The capacity of a device or system to perform as designed

    The resistance to failure of a device or system

    The ability of a device or system to perform a required function under statedconditions for a specified period of time

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    The probability that a functional unit will perform its required function for a

    specified interval under stated conditions.

    The ability of something to "fail well" (fail without catastrophic

    consequences)

    The maintenance strategy can vary based on the market situation:

    High market demand Focus on reducing downtime / Reliability

    Low market demand Focus on optimizing cost

    In the following the key drivers of the three areas are explained in more detail to

    underlay the strategy to achieve highest reliability.

    4.1 Equipment Reliability

    Equipment reliability is always strongly linked to risk. Risk Analysis means to

    determine which consequences of failures are acceptable and which ones are not,

    as a function of the severity of consequences and the probability of them occurring.

    Reliability Analysis is to identify the prevention tasks which are feasible and

    profitable and therefore to eliminate or reduce the consequences of failures, in order

    to decide on a preliminary basis whether or not the installation or replacement of a

    component is needed. Pareto Analysis and Root Cause Failure Analysis are critical

    tools that must be functioning in a good performing maintenance strategy.

    Equipment reliability must be considered and reviewed along the whole lifecycle on

    an equipment or component, starting from the design, to operation, maintenance

    and its replacement.

    4.1.1 Design & Holcim Standard Design Criteria

    Reliability must be considered already during the design phase:

    Definition of desired function, quantity and quality

    Designed according to Holcim Standard Design Criteria

    Definition Quality Assurance of manufacturing

    Specification Acceptance test of key components

    Compliance with OH&S standards

    Whereof for new installations the supplier information such as manuals and

    drawings must be considered, failure statistics such as Pareto charts are serving as

    inputs for the reliability analysis.

    Standard Design Criteria describe the technical requirements for mechanical andelectrical equipment as well as for civil and structural steel works. They have to be

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    4.1.3 Operation

    Once the equipment or component is in operation it is the obligation of maintenanceto assure that the operational limits as determined during the design phase are

    respected. The introduction of a high level control system and an intelligent

    monitoring system shall further assure compliance with the operational limits.

    4.1.4 Maintenance Execution

    Considering the short time maintenance typically has to perform their work, a few

    key elements must be in place and developed to achieve the high target on reliability

    and availability.

    Quality of maintenance work (Preventive & Corrective)

    Supervision of contractors

    Using adequate tools for respective jobs (Preventive & Corrective)

    Having specialist for special jobs

    4.1.5 Replacement

    One more key pillar of a modern maintenance strategy is a well defined replacement

    strategy of the main equipment. Many different economical and technical

    parameters need to be considered. Apart from the economical parameters thetechnical considerations must be based on a profound knowledge and monitoring of

    the equipment condition and its expected and remaining life-time. Studies of options

    and contingency plans must be considered and critical spares must be determined

    from the very beginning.

    All the described key strategic maintenance activities, such as risk assessments,

    preventive maintenance and reliability analysis are the basis for a successful

    equipment replacement strategy (see figure below).

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    Equipment

    Replacement

    Strategy

    Equipment

    Replacement

    Strategy

    DisciplineDiscipline

    SupervisionSupervision

    Strategic

    positioning

    &planning

    Strategic

    positioning

    &planning

    Marketsituation

    PMPFuturepositioning

    Businessplan

    WorkOrderanalysis

    Data

    collection

    Data

    collection

    Cost

    analysis

    RootCauseFailureAnalysis

    Equipmenthistory

    Inventory

    analysis

    PreventiveMaintenance/

    ConditionMonitoring

    Risk

    evaluation

    Risk

    evaluation

    RiskMatrix

    Marketsituation

    Plant/Companylogistics

    Decision

    taking

    Decision

    taking

    PaybackPeriod

    NetPresentValue

    CashFlowplanning

    Alternatives

    /

    Contingency

    Overhaulvs.replacement

    NetWorkingCapital

    FMEAFMEAFailureModeEffectAnalysis

    Figure 5 Different impact criteria for an equipment replacement strategy

    4.2 Maintenance processes

    The overall Holcim maintenance process is defined as MAC (MAintenance Cement).

    This process defines all relevant maintenance workflows that are key to achieve the

    overall target and follow the Holcim strategy.

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    MaintenanceTraining

    PreventiveMaintenance

    Level 1Preventive

    MaintenanceLevel 2

    Third PartyServices Mgt.

    Monthly WeeklyManagement

    Review Meeting

    Group CompanyRoad Map

    Monthly / WeeklyMaintenance

    Review

    DailyPlanningMeeting

    Weekly PlanCommitment

    Meeting

    3

    2

    1

    GroupSummary

    ManagementReport

    EquipmentRegister(HAC)

    PM RoutinesDatabase &Schedule

    StandardSpecifications

    Monthly /WeeklyProduction Plan

    EquipmentCriticality Rating

    Monthly/WeeklyManagement

    Report

    Monthly/ WeeklyMaintenance KPI

    and Reports

    Shift Hand overReport

    DailyMaintenance

    Plan

    Business Plan

    Financial andBudget Plan

    Report andData AnalysisExecutionPlanForecast

    WeeklyMaintenance

    PlanningMeeting

    OutstandingWork

    Notifications andEquipment

    History System

    Operational LossReporting

    Plant Master Plan

    InvestmentSchedule

    AnnualProduction Plan

    AnnualMaintenance Plan

    MaintenanceOrganization

    Spares &Warehouse

    Management

    ShutdownPlanning &

    Management

    W.O. Planning

    Bill of Materials(B.O.M.)

    PartsRequirements

    ShutdownMaintenance

    PlanMaint. Master

    Schedule/WeeklyMaintenance

    Plan

    Overdue WorkOrders

    MaintenanceTraining Plan

    MaintenanceCost Report &

    Analysis

    Shift HandoverMeeting

    WorkOrders

    DADADADA

    EquipmentReplacement

    Strategy

    Root CauseAnalysis/RCM/

    FMEA/RbM

    MaintenanceTraining

    PreventiveMaintenance

    Level 1Preventive

    MaintenanceLevel 2

    Third PartyServices Mgt.

    Monthly WeeklyManagement

    Review Meeting

    Group CompanyRoad Map

    Monthly / WeeklyMaintenance

    Review

    DailyPlanningMeeting

    Weekly PlanCommitment

    Meeting

    3

    2

    1

    GroupSummary

    ManagementReport

    EquipmentRegister(HAC)

    PM RoutinesDatabase &Schedule

    StandardSpecifications

    Monthly /WeeklyProduction Plan

    EquipmentCriticality Rating

    Monthly/WeeklyManagement

    Report

    Monthly/ WeeklyMaintenance KPI

    and Reports

    Shift Hand overReport

    DailyMaintenance

    Plan

    Business Plan

    Financial andBudget Plan

    Report andData AnalysisExecutionPlanForecast

    WeeklyMaintenance

    PlanningMeeting

    OutstandingWork

    Notifications andEquipment

    History System

    Operational LossReporting

    Plant Master Plan

    InvestmentSchedule

    AnnualProduction Plan

    AnnualMaintenance Plan

    MaintenanceOrganization

    Spares &Warehouse

    Management

    ShutdownPlanning &

    Management

    W.O. Planning

    Bill of Materials(B.O.M.)

    PartsRequirements

    ShutdownMaintenance

    PlanMaint. Master

    Schedule/WeeklyMaintenance

    Plan

    Overdue WorkOrders

    MaintenanceTraining Plan

    MaintenanceCost Report &

    Analysis

    Shift HandoverMeeting

    WorkOrders

    DADADADA

    EquipmentReplacement

    Strategy

    Root CauseAnalysis/RCM/

    FMEA/RbM

    Figure 6 Overview of MAC process flow

    4.2.1 OH&S

    For all our activities, and maintenance work in particular, safe work and a safe

    workplace is key. Therefore the Holcim Cardinal Rules and the Fatality Prevention

    Elements instructions must be followed at all instances, for our own as well as for all

    contracted personnel. Continuous safety talks and trainings and awareness events

    must be conducted.

    4.2.2 Problem Solving

    Performance deficiencies, problems or any other issue that must be improved or

    resolved must be tackled in a systematic matter.

    Solve! Is the Holcim approach for problem-solving. It is an analytical thinking-basedprocess that provides a logical framework for different problems isolation and

    solving, addressing both technical and non-technical activities and teams.

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    Figure 7 SOLVE! Process

    From a maintenance perspective, clear threshold criteria when and how to perform a

    Root Cause Failure Analysis (RCFA) must be established and a follow up on the

    actions to improve reliability must be in place.

    4.2.3 Preventive Maintenance / Planning & Scheduling

    Preventive maintenance is a schedule of planned maintenance actions aimed at the

    prevention of breakdowns and failures. The primary goal of preventive maintenance

    is to prevent the failure of equipment before it actually occurs. It is designed to

    preserve and enhance equipment reliability by replacing worn components before

    they actually fail. Preventive maintenance activities include equipment checks,

    partial or complete overhauls at specified periods, oil changes, lubrication and so

    on. In addition, personnel can record equipment deterioration so they know to

    replace or repair worn parts before they cause system failure or performance loss.

    Recent technological advances in tools for inspection and diagnosis have enabled

    even more accurate and effective equipment maintenance. The ideal preventivemaintenance program would prevent all equipment failure before it occurs.

    Preventive maintenance is one part of the overall equipment reliability process and

    is defined as follow:

    Cost-effective maintenance tasks carried out at predetermined intervals to check the

    current physical condition, to reduce probability and/or impact of a failure in

    operation, or to maintain a desired level of performance of an equipment.

    The preventive maintenance can be mainly subdivided into three main activities

    which are briefly explained in the following chapters. Condition Monitoring

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    Replace

    Service

    Maintenance

    BREAK

    DOWN

    MAINTENANCE

    Planned

    Maintenance

    Preventive

    Maintenance

    Corrective

    Maintenance

    Condition

    Monitoring RepairModi-

    ficationServic

    e

    Repl

    ace

    Lubric

    ate,

    calib

    rate

    ,cle

    an,etc

    .

    Tim

    eba

    sed

    compo

    nent

    repl

    acem

    ents

    Walk-By

    Insp

    ectio

    n

    Vib

    ratio

    nAna

    lysis

    Oil

    Analy

    sis

    WearM

    easu

    rements

    Non

    -Destr

    uctive

    Testing

    Ele

    ctric

    Moto

    rDia

    gnosti

    cs

    Th

    erm

    ograph

    y

    Spec

    ific

    Measure

    men

    ts

    Reliab

    ility&M

    aintain

    abiliy

    impro

    vements,w

    eakpoint

    optimizatio

    n,etc.

    Action

    storestoreanitem

    to

    astateinw

    hichitcanperform

    itsrequired

    function

    Figure 8 Preventive Maintenance Definit ions

    Planning in maintenance defines what and how the specifics and details of the work

    to be done. It is mainly identifying the problem and determining the proper solution,

    manpower, and other resources such as material, time, tools, equipment and

    technical data required for an efficient, effective and safe work execution.

    Scheduling work is the process when the specific dates are finally defined and

    coordinated for the execution of (planned) work for the following week. Maintenance

    can not leave the reactive stage without a firm control over the activities to be done.

    Therefore also poor backlog management is a hurdle.

    4.2.4 Spare Parts & Inventory Management

    In order to guarantee maximum plant availability at the lowest sustainable cost it has

    to be assured that the right spare parts are kept on stock. Not having the right spare

    part at the right time, at the right place, in the right quantity can cause unnecessary

    equipment down time and expensive emergency orders. Holding too many spare

    parts leads to excessive costs, which reflects in unnecessary high inventory levels.

    A detailed quality control of receiving spares and refurbishments as well as

    maintaining the desired condition of the spare parts with the adequate preventivemaintenance routines are key factors to guarantee the required reliability.

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    4.2.5 Performance Analysis

    All the above mentioned pillars to define a maintenance strategy need to be tracked,controlled and managed. Therefore the individual performances must be reviewed

    on a regular base and can be illustrated as follow:

    OEE

    Net Availabilit y

    MTBF

    Maintenance CostCapex

    Inventory level of spares

    Equipment Reliability analysis

    Equipment Failure / Stop Pareto charts

    Plan Attainment

    PMR %

    Unplanned & Overdue work

    Plant

    Management

    Maintenance

    Department

    MaintenanceManagement

    OEE

    Net Availabilit y

    MTBF

    Maintenance CostCapex

    Inventory level of spares

    Equipment Reliability analysis

    Equipment Failure / Stop Pareto charts

    Plan Attainment

    PMR %

    Unplanned & Overdue work

    Plant

    Management

    Maintenance

    Department

    MaintenanceManagement

    Figure 9 Maintenance Performance Control

    A reliability analysis should be performed on one hand prior to operate an

    equipment and also based on its operation parameters and failure statistics. Thereliability analysis is a process which is carried out to determine actions to reduce

    the severity or probability of a failure. Identified actions must be technically feasible

    and economically justifiable. The key is to focus on the most important areas and to

    develop the best alternative to reduce impact of failures.

    Pareto Analysis is a tool used to help direct efforts on the biggest impacts. This

    could be maintenance costs, man-hours, production stops, etc. Root Cause Failure

    Analysis is a practice needed to ensure that issues experienced by a plant are

    resolved in a complete manner.

    A pareto chart for breakdowns can be used to explain the main focuses. Typical keyperformance indicators for maintenance are the Availability and the Mean Time

    Between Failure (MTBF) of the main equipment.

    Whereas failures which are causing long downtimes have a major impact on the

    availability, the many and repetitive failures are mainly impacting the MTBF.

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    Pareto - Breakdown

    0

    10

    20

    30

    40

    50

    60

    drive

    1

    drive

    2Fa

    n1

    Rawmill

    Fan2

    Blocka

    ge1

    Cooler

    Motor1

    Blocka

    ge2

    Fan3

    Conveyor1

    Electricalpo

    wer

    Conveyor2

    Cause

    Hoursofdowntime

    0

    2

    4

    6

    8

    10

    12

    Numberoffailures

    Time#

    Potential

    fo r

    Availabi li ty Potential

    for

    MTBF

    Figure 10 Example of a Pareto breakdown chart for a kiln

    As illustrated above it is the maintenance target

    to reduce the downtime of our equipment

    to reduce the frequent failures which lead to downtime

    4.3 Personnel & Organization

    In order to have a powerful maintenance operation in a plant it is crucial to have a

    very effective maintenance organization supporting all its activities in an efficient

    manner. Roles and responsibilities must be clearly determined for all its functions in

    order to assure clear communication and coordination.

    Following a proper organization and operation some other key elements must be in

    place and continuously tracked and improved:

    Regular and constructive Dialogue

    Individual training and development plan

    Retention plan

    Motivation of employees

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    Areasupervisor

    Mechanical MaintenanceTeam leader

    MaintenanceWorkshop

    Electrical MaintenanceTeam leader

    Maintenance

    Manager

    Areasupervisor

    Instrumentation& Control

    ElectricalSupervisor

    Powerdistribution

    Preventive MaintenanceTeam leader

    ConditionMonitoring

    LubricationPlanning

    Maintenance Workshop Function: Centralized group of maintenance experts with:

    High expertise in repair work - synergies

    Strong focus on quality of work and work preparation

    Supervisor(s) well trained in job execution

    Centralized group of

    maintenance experts with:

    Expertise in preventive / predictive

    maintenance

    Control and execution of lubrication

    Planning/ work load balancing

    Planning of major planned shutdowns

    Root cause failure analysis

    Process Area Maintenance Function:

    Responsibility in a process area ownership of equipment and its performance

    Fast reaction time for unplanned incidents and small adjustments/repairs work

    in their area

    Key personnel for walk by inspections know best the equipment

    Figure 11 Standard Holcim Maintenance Organization

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    5. LINKS TO HOLCIM STANDARDS, GUIDELINES AND PRINCIPLES

    In order to support the before described maintenance strategy there are many other

    business tools that support maintenance in achieving their targets. A relevant

    selection is briefly described in the following.

    5.1 Plant Master Plan (PMP)

    The Plant Master Plan is a Holcim standard planning tool to translate the Business

    Plan objectives into operational and organizational measures as well as CAPEXprojects at plant level by

    identifying gaps in the areas of materials and energy supply, production

    process and organization,

    focusing on optimum exploitation of existing installations to minimize

    investment and operating cost and

    indicating priorities, costs and financial returns.

    The PMP provides continuous goal orientation and guidance in planning and

    monitoring plant development to meet the objectives defined by the Company

    Business Plan. It improves plant performance by establishing a long-term vision. It

    provides transparency to decisions on operational measures and helps to make

    investments understandable to all stakeholders. The elaboration of the yearly PMP

    is mandatory for all Holcim cement plants as well as grinding stations.

    In line with the business planning cycle the Plant Master Plan is elaborated with a 5-

    year time horizon. Ideally, the elaboration of the PMP runs in parallel with the

    Business Plan update. The Business Plan contains the objectives to be achieved,

    whereas the PMP provides the technical solutions to achieve these objectives. The

    PMP contains operational measures and CAPEX projects to improve plant

    performance. The CAPEX projects foreseen in the Business Plan are to be derivedfrom the PMP. The production costs and CAPEX have to be integrated in the

    Business Plan and Finplan.

    5.2 CAPEX Projects, ProMap

    A CAPEX project is a venture to bring about a beneficial change (e.g. new plant or

    equipment), which is characterized by:

    a defined start and end

    a multi-disciplinary team brought together for the project

    constraints of cost, time and quality

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    a scope of work that is unique (project specific) and often includes

    uncertainties

    ProMap is the Holcim project management system to carry out CAPEX projects

    according to a structured methodology. ProMap provides procedures, guides, tools

    and templates to facilitate and standardize activities and tasks. For large (above 20

    Mio USD) and medium (5 to 20 Mio USD) sized CAPEX projects, ProMap provides

    one common set of procedures, guides and tools. For small CAPEX projects a

    simplified version is available, based on selected guides and tools as for large and

    medium sized projects.

    5.3 Project Management Approach (PMA)

    Project Management Approach, is a Holcim standard methodology that supports the

    achievement of Holcim Group Company business goals, by helping people to

    systematically complete projects.

    6. MESSAGE

    The Holcim maintenance strategy is completely aligned and oriented to the pro-

    active, Condition based Maintenance strategy as described above. In order to

    achieve the required Equipment Reliability at the lowest sustainable maintenance

    cost through:

    An efficient and effective Maintenance Organization

    An efficient and effective Planning and Scheduling of all Maintenance

    activities

    A strong and powerful Preventive Maintenance system in place

    A strong focus on Equipment reliability

    An effective maintenance Reporting and Analysis

    Well developed and skilled Personnel

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    7. REVISION LOG

    Revision Date Object of revision By

    00 01.01.2010 Initial version of the document RDA