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1 A Practical Approach to Asset Reliability Improvement focused on Turbo Machinery Poovan Naidoo Senior Manager: Turbo Equipment Maintenance Secunda Synfuels Operations South Africa Place your company logo here NB: Your company s logo is only permitted on the first slide!

2 Background Key Performance Metrics Asset Lifecycle Operate Within Agreed Parameters Methodology Asset Management Philosophy Uptime Analysis Influence Diagrams Gap Closure Plan Continuous Improvement and Tracking Process Flow for Specific Problems Management accountabilities

3 Turbo Equipment Maintenance (TEM) Structure: TEM (147) Turbo 2 (38) Turbo 3 (30) Turbo 4 (22) Turbo Monitoring and Balancing (27) Asset Health (25)

4 Baseline Performance (2009): 3.17% Unintended Downtime on critical equipment (Compressors and Turbines) 19 months MTBF on pumps 7 Recordable Case Injuries 9% overspend on annual budget

5 Results Achieved: Performance Measure 2009 Actual 2015 Actual Equipment Unavailability 3.17% 0.09% Process Pump MTBF 19 months 34 months Recordable Case Injuries 7 Budget Comparison 1 0 injuries for 3 years 0.93 Cost Performance 9% over budget 1% under budget Still pushing the boundaries we are not done yet!

6 Acquire Operate and Maintain Strategy Plan Execute Review Dispose

7 Design Limit Parameter Value Normal Operation Are either of these deviations a concern? Time

8 IDEF0 Notation Constraint Input Activity Output Resource FIPS Publication 183 released of IDEFØ December 1993 by the Computer Systems Laboratory of the National Institute of Standards and Technology (NIST).

9 New and Existing Plant Design Standards Establish Asset Management Standards Plan Do Review Raw Materials, Parts and Services Operate and Maintain to standard Breakdowns Products Evaluate and Improve Asset Performance

10 XVI) Computerized Maintenance Management Systems XV) Customer Satisfaction 7.3 Diagnostic Overview I) Characteristics of the Business 10.0 II) Maintenance Strategy III) Organizational Arrangements XIV) Performance Measures IV) Human Resource Management 2.0 XIII) Inventory Control V) Maintenance Administration XII) Stores VI) Planning XI) Purchasing 6.2 X) Equipment Records IX) Use of Tactics VIII) Work Orders VII) Scheduling Methodology from: Uptime, John Dixon Campbell, 1995

11 Stores Layout, locations, access, space, racking, security Requisitioning procedures Equipment, mobile equipment Consignment stock locations, vendor access 3.0 Degree of automation, bar coding Telephone orders, delivery, kitting/pick lists Substores, shop-floor stores, free access items Quality assurance, accuracy Receiving, issuing, stocking schedules, labor, procedures Direct charge item storage Methodology from: Uptime, John Dixon Campbell, 1995

12 Inventory Control Stock counting policies, schedules Service level/stockout measures, back orders 6.4 Catalogs, referencing, on-line information Inventory reconciliation and absolute value of deviation 6.0 Use of statistical analysis by inventory category, stock history Control of repairable, rotables Measures of investment efficiency, turnover, value, number of SKUs Stock control techniques, max-min, EOQ, EOP Obsolescence review, no usage analysis Methodology from: Uptime, John Dixon Campbell, 1995

13 Improve Employee Engagement Survey results Complete all shutdown equipment within schedule End the year on or below budget Stable, Satisfied and performing Employees Idenitify competency defficiencies Plan and attend training to address defficiencies Adherance to training plan >80% Competency as per training matrix >80% 2.5-5% reduction in GO times on identified equipment Unintended downtime <1.45% Less breakdowns - can execute planned work Maintenance and Operational Schedule Compliance >85% Reduction of Urgent and Emergency work Create understanding of asset management Perform Asset Management Process (standardise GO procedures, QCP's, specifications, SU/SD/operating parameters and procedures, maintenance strategies, RCA's, Renewal projects) Zero overdue stat >60 days without delays approved Sustainable BBS participation above 80% Planned work allows adequate thinking time to incorporate safety considerations Allows identification of risks and removal of safety barriers Zero harm to people Adhere to the rules of the company Create a compliance culture and environment (understanding of the rules) Complete competition training and certification Reduce satellite stock by 50% Adhere to legal compliance Ensure stock is managed and controlled by Procurement No C and D audit findings (adhere to governance)

14 Concern Raised By Date Raised Action Responsible Person Due Date Comment Incorrect stock levels at Stores Poovan 12- May-11 Evaluate required stock levels and create business case to increase inventory for deficiencies Poovan 30- Nov- 11 Prioritise compressors and turbines with high unreliability.

15 New and Existing Plant Design Standards Establish Asset Management Standards Manage/ Govern the change Raw Materials, Parts and Services Update standards Operate and Maintain to standard Breakdowns Products Evaluate and Improve Asset Performance

16 Determine Key Performance Indicators Related to improvement activities and influence diagram Regular review of performance indicators and gap closure plan status Maintain focus on actions and due dates Give recognition where improvement is noted Manage change with the team

17 Codes, Standards, Policies, Procedures, Practices People Money Basis of maintenance budget and strategy work in work management process Work Management Process Spares strategy Quality Control Facilities Information Raw Materials Equipment Utilities Identify need Define Operating Parameters Inspection Maintenance Renewal Assess requirements/ capability Design Asset Modify Asset No change to asset Define Maintenance Strategy Acquire Asset Update maintenance strategy/ operating philosophy Update production budget Operate Asset Change operating parameters (outside of agreed operating parameters Operate within agreed parameters Execute Maintenance Strategy Dispose Asset failure outside of strategy Root Cause Analysis and Identification Stable Plant/ Process Engineer Out Problem

18 Believe in your team Set the expectation on standards aim for achievable, incremental improvements Actively support gap closure activities Instill discipline to follow standards Encourage and reward proactive maintenance and improvement actions

19 Make the difficult decisions to do the right thing Empower the team to make decisions and implement improvement actions Focus the team on the next critical item Be involved and remove obstacles

20 Questions?