The Plant and Equipment Wellness Way to Enterprise Asset Management Success and World Class Operational Excellence

Transcription

1 The Plant and Equipment Wellness Way to Enterprise Asset Management Success and World Class Operational Excellence 3-day training course DAY 3 1

2 PEW/PWW Course Content Day 1 Foundations Physics of Failure Reliability Risk Cost of Failure Series Arrangements Human Error Life Cycle Reliability Improvement Day 2 PWW Processes Risk Identification Risk Selection Risk Control Planning Risk Control Introduction Risk Monitoring Risk Continual Elimination Day 3 Reliability Creation Business Risk Reduction Stress to Process Model Life Cycle Risk Reduction Operational Risk Reduction Machinery Risk Reduction Making Changes 2

3 The Problem: Machines and Equipment continue to Fail in Companies Companies do not Total the economics of loss Understand science of failure Measure risk and probability See life cycle failure causes View machines as a system View production as a system View business as a system View the life cycle as a system PEW SOLUTION: is to Prove $$$ value in reliability Build a system-wide solution Remove risks for all lifetime Least stress in machine parts Create lasting machine health Team-up knowledge and skill Build ownership for solutions Standardize and systematize across business and lifecycle 3

4 Typical Best Practice Asset Maintenance Management Methodology (but it still misses the target!) CM = Condition Monitoring 4

5 PEW/PWW Course Content Day 3 Reliability Creation Business Risk Reduction Business process and work flow design Stress to Process Model Life Cycle Risk Reduction Operational Risk Reduction Machinery Risk Reduction Making Changes 5

6 Business System and Operating Process Design The process maps of your business processes, the workflow diagrams of your operating procedures and the assembly drawings for your equipment are the foundation documents for improving equipment reliability. They are used respectively to control variation in each business step, to control human error in each task, and to address and manage the limitations of each part s materials of construction. Your equipment Your operating procedures Your business processes Learn to see the risks and their effects in your business processes 6

7 First Design and Then Build the Right Processes Quality of Design Extent a product or service satisfies Customer s needs. All necessary characteristics should be designed into the product or service at the start. Security Maintainability Reliability Product Quality Quality of Use and Service in the Customer s Hands Source: ISO 9000 Quality Systems Handbook, David Hoyle, 5 th Edition Transportability Functionality Safety Quality of Conformance The extent the product or service conforms to the design standard. The design needs to be faithfully reproduced in the product or service. Product Quality Characteristics Accessibility Emittance Producibility Strength Availability Flexibility Reliability Taste Appearance Functionality Reparability Testability Adaptability Interchangeability Safety Traceability Cleanliness Maintainability Security Toxicity Consumption Odour Size Transportability Durability Operability Susceptibility Vulnerability Disposability Portability Storability Weight Service Quality Characteristics Accessibility Competence Effectiveness Responsiveness Accuracy Credibility Flexibility Reliability Courtesy Dependability Honesty Security Comfort Efficiency Promptness 7

8 Waste is Expected and Accepted in This Process This is the old way of getting production quality hope that the outputs are right. Raw Material 1 Check Point 1 Standard Procedures Standard Procedures Standard Procedures Receivables Manufacture Assembly Despatch Customer Check Point 2 Inspection Test Point 1 Inspection Test Point 2 Inspection Test Point 3 Raw Material 2 Rework or Scrap if Failed Simplified Quality Controlled Production Process using Normal SOPs 8

9 Waste is Eliminated in this ACE 3T Process Raw Material 1 Specification 1 This is the right way prove the inputs are right. Confirmation Point 1 Accuracy Controlled Procedure 1 Accuracy Controlled Procedure 2 Accuracy Controlled Procedure 3 Receivables Manufacture Assembly Despatch Customer Confirmation Point 2 Raw Material 2 Specification 2 Defect Prevention and Failure Elimination in an Accuracy Controlled Enterprise 9

10 Range R or Mean X Move to Preventive Quality Control If the Inputs are in-specification Input 1 is in control Input 2 is in control Input 3 is in control and the Process is in-control Upper Allowable Tolerance Limit Target Performance Standard Lower Allowable Tolerance Limit the Output is exactly what you want Process is in Control Measured Observations Apply Quality Control proactively on the inputs into your business, before they start being used in your operation. Don t hope for the outputs from your business to be okay. By then it s too late and the problems are on-top of you. Instead make sure the inputs are as they should be. If you stop the defects that will later cause variations, you won t have any more problems. 10

11 PEW Solution: Standards and Standardisation 1. Adopt and apply best practices in all activities 2. Make best practice an organisation-wide habit STANDARDS Equipment Operations Engineering Maintenance Life Cycle STANDARDISATION Equipment Operations Engineering Maintenance Business Systems 11

12 Effect of Standardisation on Process Results We want all output from a process to meet specification Chance of Event An un-standardised process produces a wide range of outcomes A standardized process produces a smaller range of outcomes Process Output Acceptable range of outcomes We achieve that by standardising on ONE process Chance of Event Output 12

13 Change the Process to Get Standardization Acceptable range of outcomes Chance of Event Process outcomes are not to requirements Process Output Low Variation but Output is not to Specification Acceptable range of outcomes Deming s PDCA Cycle of Continuous Process Improvement Chance of Event Process Output Altering Process Performance to get Desired Results 13

14 Build a Process that Produces Excellence W. Edwards Deming: Your system is perfectly designed to give you the results that you get. Excellent range of outcomes Chance of Event Current process performance Deming PDCA Cycle E X C E L L E N C E Deming s PDCA Continuous Improvement Cycle Redesigned process changed and improved to produce excellent results Process Output It does not matter where you start, you can always get to where you want to be. 14

15 Standardize the Work and Make it Systematic Purpose of Standardised Work is to eliminate person-to-person variability and follow one best practice way to do each job. Have a precise description of each work activity specifying task accuracy, cycle time, the work sequence of specific tasks, the parts on-hand and tools needed to conduct the activity expertly. Find the best-practice method of doing work (individual job, jobs in a team, jobs in a process) Have everyone doing the jobs do them in the same standard way (take the variability out of the person-toperson aspect of each job) Ask people to continuously improve how these jobs are done (seek higher quality and productivity) This is the only way we do it here! 15

16 4 Pillars of Quality Management Systems QP is setting quality objectives and specifying necessary operational processes and related resources to fulfil objectives. QI involves increasing the frequency and ability to fulfil quality requirements. QC is maintaining standards of quality that prevents and corrects changes so that the resultant output meets customer requirements QA provides confidence that quality requirements will be fulfilled Quality is not an accident. You build the processes that provide the quality outcomes you need. 16

17 Components and Equipment Form a Series Electric motor drive end bearing Pump Set 17

18 Redraw as a Process Flow Diagram, Size DAFT Costs & Risks, Develop Appropriate Mitigations Shaft Journal Shaft Seal Lock Nut Inner race Lube Roller bearing Lube Outer race Housing Bore Parts shown as a series Shaft Journal Shaft Seal Lock Nut X Inner Race X Roller bearing Outer race Housing Bore One fails, System fails 18

19 How to Prevent Failure? How to Prevent Failure? Redraw as a Process Flow Diagram, Size DAFT Costs & Risks, Develop Appropriate Mitigations Shaft Journal Shaft Seal Lock Nut Inner race Lube Roller bearing Lube Outer race Housing Bore R1 R2 R3 R4 R5 R6 R7 R8 R9 Show parts as a series Shaft Journal Shaft Seal Lock Nut Inner Race 0 0 Roller bearing Outer race Housing Bore R1 R2 R3 R4 R5 R6 R7 R8 R9 One fails; System fails 19

20 A Maintenance Work Planning Process Flowchart 20

21 Draw as Process Flow Diagram, Size DAFT Costs & Risks, Develop Mitigations, Set Responsibility PLANNING FLOW DIAGRAM OPERATOR PLANNER Checkout Problem Job Request Identify Work Needed; Safety Collect Relevant Details Check Equipment History Identify Parts and Resources Cost Work Order Parts and Materials Develop Job Procedures Store the Parts and Materials Build Work Pack Store Parts and Materials Together R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 R12 SCHEDULING FLOW DIAGRAM SCHEDULER SUPERVISOR ARTISAN PLANNER Schedule Coordinate Job with Resources Production Collect Parts And Materials Issue the Work Order Do the Job Collect Job History Update Data Bases Update Update Planning Job Procedures Procedures Update KPIs; Do Reporting R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 21

22 What is Wrong with this Maintenance Job Plan? JOB PLAN TO INSTALL CONVEYOR PULLEY PLUMMER BLOCK 1. Prepare for Job in Dirt-Free Work Area 2. Safe Isolation and Handover 3. Check Parts and Materials are Correct 4. Access Plummer Blocks and Bearings 5. Check Shaft Condition and Tolerance 6. Measure Bearing Internal Clearance 7. Measure Plummer Base Plate Accuracy 8. Locate Bearings on Shaft 9. Mount Bearings on Shaft 10. Position Plummer Blocks and Place Pulley 11. Complete Plummer Block and Seals Assembly 12. Align Plummer Blocks 13. Lubricate Bearing and Seals 14. Align Plummer Blocks and Bolt Down 15. Commission and Test 16. Clean-up and Hand Back 22

23 Redraw as a Process Flow Diagram, Size DaFT Costs & Risks, Develop Appropriate Mitigations R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 R12 R13 R14 R15 R16 23

24 Job Plans do not deliver job quality; for that you need detailed Job Procedures and Proof Tests 24

25 PEW/PWW Course Content Day 3 Reliability Creation Business Risk Reduction Stress to Process Model Life Cycle Risk Reduction Operational Risk Reduction Machinery Risk Reduction Making Changes 25

26 Plant Wellness Component Stress to Business ADOPT DEFECT ELIMINATION STANDARDS AND PRACTICES Process Asset Management Model Reliability Engineering Human Document & Learning Capital Project Capability Configuration Organisation Management Management Management Business Planning and Integrated Knowledge Process Scheduling Business Systems Management Improvement ACE Precision ACE Quality ACE Quality ACE Engineering Standards Standards Management Standards Lean Stores & Supply Chain Workplace Materials Operating Risk DEVELOP EQUIPMENT RISK REDUCTION STRATEGIES Management Precision Maintenance Skills DEVELOP ACE 3T MAINTENANCE PROCEDURES Preventive Maintenance ACE 3T Precision Installation START HERE for world class system Practices Robust Engineering Design Parts Environment Management Distortion Management Management Materials of Construction Selection Predictive Maintenance Proactive Maintenance Failure Cause Prevention Equipment Parts Health (Low Atomic Stress) Operating Stress Reduction Degradation Management Reduction Precision Operator Total Skills Productive Maintenance ACE 3T Precision Operation Life Cycle Costing ACE Operation Standards IMMEDIATELY INTRODUCE STRESS REMOVING BEST PRACTICES (Series Property #3) Business Risk Management DEVELOP ACE 3T OPERATING PROCEDURES INCORPORATE RELIABILITY REQUIREMENTS INTO BUSINESS PROCESSES 26

27 PWW of Risk Reduction Selection for Plant and Machines and Then Making Them Standard Practice Equipment Parts Component Stress Life Cycle Causes Maintenance and Operation Required Wear-out (age/usage related failure) > PM inspection + From Usage (contaminate with use) > PM renewal Induced Stress (random failure) ^ Installation Error (early life failure) > PdM condition > PrM/PrO precision > PrM/PrO precision > ACE 3T procedures Risk Reduction Effectiveness ACE Quality Management System Build Necessary Business Processes WO Outsourced Services Maintenance Procedures Operating Work Procedures Instructions Training Work Orders Corporate and Engineering Standards 27

28 Typical Reliability Improvement Wheel Process Particularly aimed at recurrent problems 7. Implement 6. Test Effectiveness (pilot project) 8. Monitor 5. Evaluate and Select Solution/s 1. Identify Opportunities (Data Analysis) 4. Generate Possible Solutions 2. Focus on an Opportunity 3. Find Causes Small cross functional team implementation Process is aimed at team building as well. At Each step you learn more about the situation - May need you to loop back through the earlier steps eg. revise problem statement or eliminate causes. Some problems are not difficult and solutions are sometimes readily available. May only need a quick focused discussion (15 min) Quantity is often better than quality with RCA for day to day issues where immediate action can be taken. 28 Becomes a Culture.

29 Broad Cross Functional Involvement Operating Plant Reliability Improvement Model Process Audits Regulations & Laws Corporate Standards Business Goals Environment & Constraints Roles & Responsibilities OPERATIONS & MAINTENANCE PM10 PLANS 7. Implement Fully 6. Test Effectiveness 5. Evaluate Options & Select Planning and Scheduling Inspections, PM s & CM Procedures & Standards Capital Improvement Projects Significant Incident 4. Generate Possible Solutions 3. Find Root Causes Operator & Maintenance Routine Tasks Plant Data Systems 1. & 8. Review sources of data & people input (FRACAS) Built on Foundation of Discipline Technical Knowledge 2. Select Opportunity - Focus Reliability Eng Effort 29

30 Typical Business Changes to Create Reliability Defect Elimination Integrate Engineering, Operations, Maintenance Uptime Improves Year 6 Hope to Find Success Year 5 Time for Scientific Analysis of Data Productivity Improves Availability Improves Costs Improving Costs Rising Year 4 Smoother Operation Budget Pressure Rat Race Reactive Operation Reliability (improving) Morale Improves Change Program Short Term Focus Year 1 Focus on Preventive & Predictive with Planning & Scheduling Root Cause Analysis (Series Property 1) Year 3 Complete all required PMs Year 2 30

31 Plant Wellness: A System for Defect Elimination The physical assets are the hardware of a business, things like equipment, pipes, computers, buildings, and so on. It includes the software systems that support their use. Human assets are in their own category. Enterprise Asset Management (EAM) is the business system concerned with running plant and equipment efficiently and effectively. When done well it produces a range of benefits for the organisation. These come under the Plant Wellness umbrella. Plant Wellness has exactly the same connotation as human wellness ; look after your physical body and you get a fit, long, healthy, problemfree life. Look after the health of your machinery and you get outstanding plant and equipment reliability. 31

32 PWW Behaviors Fast Track Business Changes Defect Elimination Uptime Improves Year 2 Life Cycle Integration of Engineering, Operations, Maintenance Forever More Systemized and Standardized Processes Time for Scientific Analysis of Data Costs Improving Productivity Improves Year 3 Costs Rising Availability Improves Morale Improves Reliability Growth Smoother Operation Budget Pressure Rat Race Reactive Operation Up-skill People to Best Practice Standards (Series Property 3) Year 1 Short Term Focus Prevent Parts Stress in Operation & Maintenance Design in Success PWW Program Prevent Human Error in Operation & Maintenance Install Best Practice 3T Standards in Procedures (Series Property 3) Every business is a stable system containing interacting and interdependent elements which must be taken into account when changing any part of it. Hence, to improve equipment uptime we must improve engineering, operations and maintenance together, since working on one alone cannot change the system performance. 32

33 PEW/PWW Course Content Business Risk Reduction Stress to Process Model Life Cycle Risk Reduction In Project Phase 8 Life Cycle Questions Day 3 Reliability Creation DOCTOR for Operating Profit Optimisation Equipment Criticality with DAFT Costs Operational Risk Reduction Machinery Risk Reduction Making Changes 33

34 Address Variability and Risk Across the Life Cycle Every process across the life cycle will create many defects if the 3Ts are not used. Management Engineering Supply Contractor Operations Maintenance Install Operate Maintain Specify Design Store Buy Start-up Defect and Failure Cost Surge ,000 The Failure Pyramid Serious Failure Losses Repairs Defect Modes Plant Uptime and Throughput Product Higher Unit Cost, Poor Quality and Delayed Delivery Introduced defects Variability in each process causes defects which sometimes progress to failure. Thanks to Ron Moore from Ron Moore Group in the USA for this concept. 34

35 PEW/PWW 8 Life Cycle Impact Questions There are eight questions to be answered during the Life Cycle Impact analysis. These are listed below. Economic Factors 1. Are the business-wide DAFT Cost consequences of an equipment failure acceptable? 2. Where failure is acceptable how frequently can it occur before it becomes unacceptable? Physics of Failure Factors of Parts Failure 3. How can the part s atomic/microstructure structure be overstressed? 4. How can the part s atomic/microstructure structure be fatigued? 5. How can the part s atomic/microstructure structure be degraded? Organisational Factors in Parts Failure 6. Will/What human error/factors allow the part to fail? 7. Will/What business processes allow the part to fail? 8. What design issues allow the part to fail? The answers to the economic factors determine if an analysis is required for the equipment. Where the failure of an item of equipment is unimportant the default decision is to run-to-failure and rectify the situation in a timely manner suited to the operational needs. 35

36 Improved Business-Wide Processes Arise from the 8 Life Cycle Questions Analysis Y Y Equipment Number 1) Is a part s failure acceptable? 2) Is frequent failure acceptable? Run to Failure and Do Timely Repair N N Part Number Causing Risk Physics of Failure Factors Organisational Factors 3) How is part s atomic structure overstressed? 6) What human factors allow the part to fail? Corrective Maintenance Maintenance Management System and Precision Maintenance Work Processes 4) How is part s atomic structure fatigued? Stress and Degradation Management Quality Assurance System and Training Processes 7) What business processes allow the part to fail? Operational Management System 5) How is part s atomic structure degraded? 8) What design issues allow the part to fail? Monitor Health Changes with Predictive Maintenance Preventive Maintenance Engineering Assurance System 36

37 The Design Process Limits Reliability The Standard Design Process Concept Specification Preliminary design Costing Justification Limited by approved budget Choices limited by time constraints Designers are limited by knowledge and experience Use of old solutions prevail even if inappropriate for service Budget Approval Full design Design review Design approval Construction No concept of future cost of ownership i.e. its lifetime operation and maintenance Assumptions made by designers as to operating practices Design assumptions not known by operators AND where is the analysis of operating and business RISK!??? 37

38 Future DAFT Costs Project Designers Need to See Operating Risk Purchase Phase What are the operating risks put on the business by the design choices? Is it a forgiving design or is it knife-edge running? Swill it be low cost to operate? $ Design Phase Construction Phase Time When people design a project, they are also designing the future of a business. The project designers need a risk management methodology where they do what-if analysis of future costs if things go wrong. When the DAFT Costs are unacceptable they need to be removed or managed as part of the design process. 38

39 Idea Creation Feasibility Preliminary Design Approval Detail Design Procurement Construction Commission Operation Decommission Disposal Life Cycle Cost Committed Needs Definition / Planning Concept / Preliminary Design Final Design Construction Operate and Maintain Manage the Plant and Equipment Life Cycle The Project Phase is the time to control the future costs of Operation 100% 75% 50% 65% 85% 95% Life Cycle Phases Source: Blanchard, B.S., Design and Management to Life Cycle Cost Forest Grove, OR, MA Press, 1978 Equipment Life Cycle (say 20 years) ~ 10% of Life Cycle (~ 2 years) ~ 85% of Life Cycle (~ 17 years) ~ 5% 39

40 Design and Operating Cost Totally Optimised Risk (DOCTOR) A straightforward spreadsheet methodology replacing RCM and FMEA with risk-based financial analysis of defect and failure total cost consequences to a business Life Cycle Equipment Management DOCTOR Reduces Life Cycle Risk Design Phase Costs Purchase Phase Costs Construction Phase Costs Optimized Operating Profit Method $ Future Failure Costs Identifying Operating Failure Costs Time You can get phenomenal life-cycle cost savings if during design the designers reduce future operating risks by 40 removing the causes of risk with those risk control practices that reduce the chance of a bad event.

41 Life Cycle Risk Management Strategy (DOCTOR) Optimised Operating Profit Method Feasibility / Design Drawings Projected R & M Costs Busine$$ Ri$k Ba$ed Equipment Criticality FMEA/RGCA HAZOP Precision Standards Precision Instaln Reliability Eng Etc. Assume Equipment Failure Applicable Project Strategies Profit Optimisation Loop DAFT Costs Spreadsheet Failure Cost Acceptable? Frequency Achievable? Y Y N N Applicable Ops & Mtce Strategies Risk Redn Risk Redn Redesign with FMEA / RGCA / RAM Model; Revise Ops & Mtce Strategies; Revise Project Strategies Quality Procedures Precision Maint Predictive Maint Preventive Maint RCFA Maint Planning Etc. REMEMBER WE ARE ACTUALLY BUILDING A BUSINESS, NOT ONLY DESIGNING AN OPERATING PLANT 41

42 Frequency of Occurrence Determine Equipment Criticality & Mitigations 1. DAFT Cost Criticality Assessment of each asset/item in the process 2. Plot plausible worst case on risk matrix 3. Identify risk causation categories at each life cycle phase (i.e. induced stresses; random failure, fair wear and tear; human error) 4. Select risk reduction strategies and activities per category 5. Plot effect of mitigations for each asset/item on risk matrix 6. Identify quantum of benefits from use of mitigations in 1 yr High A RISK MATRIX in 1 yr 1 in 10 yr B C in 100 yr 1 in 1,000 yr D E in 10,000 yr $100 $1,000 $10,000 $100,000 Low Low COST High $1,000,000 42

43 Affect of Chance Reduction and Consequence Reduction Strategies on Risk Reduction Chance Reduction Consequence Reduction $$ $$ Unmitigated Risk CONSEQUENCE REDUCTION CM oil condition analysis CM cable thermographs CHANCE REDUCTION PM oil filtration PM oil change PM oil leaks from TX PM water ingress paths PM oil breather contamination PM cable connections 43

44 PEW/PWW Course Content Business Risk Reduction Stress to Process Model Life Cycle Risk Reduction Operational Risk Reduction Day 3 Reliability Creation Physics of Failure Factors Analysis Chance and Consequence Reduction on Risk Matrix Economic Maintenance Selection Machinery Risk Reduction Making Changes 44

45 Physics of Failure Analysis Guidewords 45

46 Physics of Failure Stress Factors Analysis 46

47 Allocate Responsibility for Physics of Failure Error Prevention across the Life Cycle Preventive actions listed are allocated between Engineering (yellow), Operations (amber) and Maintenance (green) 47

48 PEW/PWW Chance Reduction and Consequence Reduction Strategies for Operational Risk Reduction Reliability Growth Cost Minimisation $$ $$ Unmitigated Risk CONSEQUENCE REDUCTION 1. Condition monitoring for machine health changes 1. Introduce stress reduction best practices immediately to protect against parts distortion and degradation 2. Introduce ACE 3T standards into life cycle documentation to reduce human error 3. Introduce DOCTOR into project designs and asset selection to maximise operational profits CHANCE REDUCTION 48

49 Reliability and Restore or Replace Decisions Certain Reliability Chance of Success R = 0.99 (1 in 100 fails before 3 years) R = 0.8 (20 in 100 fails before 5.5 years) R = 0.5 (50 in 100 fails before 6.5 years) R = 0.1 (90 in 100 fails before 8 years) R = 0 (100 in 100 fails before 9.5 years) Failed Time Years 49

50 Restore or Replace Decisions Reliability Chance of Success Certain Most damaged parts start failing; Each failure is $25,000 DaFT Cost 0.99 (1 in 100 fails before 3 years) 0.7 (30 in 100 fail before 3 years Human error leaves defects in rebuilt gearbox RESTORE: If we only replace the worn parts the remaining aged parts will fail next MUST REPLACE ALL WORKING PARTS IN RESTORATIONS REPLACE with new gearbox Next most fatigued or aged parts start failing BUT, if we can double the reliability Failed Time Years 50

51 Maintenance Strategy is an Economic Decision 51

52 PEW/PWW Course Content Day 3 Reliability Creation Business Risk Reduction Stress to Process Model Life Cycle Risk Reduction Operational Risk Reduction Machinery Risk Reduction Reliability Growth Cause Analysis Precision Maintenance Standards Making Changes 52

53 Reliability Growth Cause Analysis Valve Lever Valve Lever Bolt and Washer Lever Post and Retainer Exhaust Valve Oil Shield Cylinder Head Valve Guide Exhaust Valve Shaft Exhaust Valve Head Exhaust Valve Seat Failure Description: Failure Stress Cause 1: Exhaust valves seat burnt from normal usage Failure of Exhaust Gas Valve in Fire Pump Drive Motor Failure Stress Cause 2: Exhaust valve seat burnt from a valve timing error Failure Stress Cause 3: Valve train parts are wrongly installed and components come loose Frequency of Cause: Wear-out 1 per 50 years Random 1 per 50 years Early life failure 1 per 50 years Time to Repair: Up to 1 month Up to 1 month Up to 1 month DAFT Cost: $25,000 $25,000 $25,000 Causes of Stress/Overload: Not applicable Exhaust gasses burn valve Parts come loose and fail to operate properly or break Causes of Fatigue/Degradation: Gradual degradation from use Not applicable Not Applicable Current Risk Matrix Rating: Medium Medium Medium Controls to Prevent Cause: Est. failures prevented after risk controls in use (/yr): Introduce planned schedule replacement of all exhaust valves, seats and valve guides at 3,000 hours or 25 years service Introduce ACE 3T procedures to control tasks and to ensure a record of all valve timing adjustments is made and can be used to compare future settings. Introduce ACE 3T procedures to control engine rebuild and overhaul tasks. All future failures prevented All future failures prevented All future failures prevented New Risk Matrix Rating: Low/Medium Low/Medium Low/Medium DAFT Cost savings from higher reliability: $500 per year $500 per year $500 per year 53

54 Example: Reliability Growth Cause Analysis of a Bearing Failure Description: Cracked inner roller bearing race Failure Cause 1: Excessive interference fit Frequency of Cause: Early Life 1 per year Random 3 per year Time to Repair: 5 hours 10 hours DAFT Cost: $20,000 $25,000 Causes of Stress/Overload: Large shaft Small bearing race bore Failure Cause 2: Impact to race Abuse when fitting Start-up with equipment fully loaded Misaligned shafts Causes of Fatigue/Degradation: Not applicable Loose race moving on shaft Current Risk Matrix Rating: Medium Medium Controls to Prevent Cause: Update all bearing fitting procedures to measure shaft and bore and confirm correct interference fit at operating temperature and train people annually Update all machine procurement contracts include quality check of shaft diameters before acceptance of machine for delivery Update all bearing procurement contracts to include random inspections of tolerances Update all design and drawing standards to include proof-check of shaft measurements and tolerances on drawings suit operating conditions once bearing is selected Update all bearing fitting procedures to include using only approved tools and equipment and train people annually. Purchase necessary equipment, schedule necessary maintenance for equipment Change operating procedures to remove load from equipment prior restart and train people annually (Alternative: Soft start with ramp-up control if capital available) Align shafts to procedure and train people annually Update bearing fitting procedures to measure shaft and bore and confirm correct interference fit at operating temperature and train people annually Est. failures prevented after risk controls in use (/yr): All future failures 80% of future failures New Risk Matrix Rating: Low Low Cost savings from higher reliability: $20,000 per year $60,000 per year 54

55 Developing Equipment Risk Reduction Strategy Equip Tag No Pump 1 Current Failure Events Bearings fail Failure Events Frequency DAFT Cost of Failure 2 years $35,000 Risk Reduction Activity Laser shaft alignment to precision practices every time the pump is installed Improvement Expected A precision alignment is expected to deliver 5 years between bearing failures Freq of Activity Every stripdown Cost / Yr $200 Failure Event Reduction Failure interval now likely to be greater than 5 years Oil and wear particle analysis every 1,000 hours of operation Oil and Wear Particle Analysis can indicate the start of failure several hundred hours prior the event 1,000 hrs or Six monthly $600 Failure will be prevented by a predictive planned condition monitoring task Visual inspection by the Operator each shift of the oil level in the sight glass Visual inspection of the oil level ensure the bearings are always lubricated Every Dayshift No cost Failure will be prevented by operator condition monitoring Operator physically touches pump bearing housing each week to feel for changed temperature and vibration Touching the bearing housing will identify impending problems before they cause failure Wednesday Dayshift No cost Failure will be prevented by operator condition monitoring Motor load monitoring using process control system to count overloads Pump performance monitoring of discharge flow and pressure using process control system Monitoring the electrical load will identify how badly and how often the equipment is stressed by overload Monitoring the pump performance will indicate gradual changes of pump internal clearances affecting service duty Continuous with monthly report to Ops Manager Continuous with monthly report to Ops Manager $100 $100 Poor operating practices will be identified and personnel trained in correct methods No direct impact on reducing risk of pump failure, but identifies performance drop and allows planned maintenance to rectify internal wear. 55

56 3 Factors Risk Analysis Optimization FMEA / POF RISK MATRIX RCM / RGCA / RISK ANALYSIS Once a risk is in the acceptable zone no further effort is expended on the risk, except to carry business insurance should the event happen. When can you claim a RISK REDUCTION? 1. Stress in component is substantially reduced 2. Opportunities for cause are substantially removed 3. Probability of cause is substantially lowered 4. Consequence is substantially less 56

57 You need to set and meet World Class Standards if you want World Class Equipment Reliability Source: Wayne Bissett, OneSteel Reliability Manager, Planning and Condition Management Presentation, Sydney, Australia, 2008 Precise Smooth Tight Dry Clean Cool Repeatable Only achieving world class standards can produce world class results. 57

58 PEW/PWW Course Content Day 3 Reliability Creation Business Risk Reduction Stress to Process Model Life Cycle Risk Reduction Operational Risk Reduction Machinery Risk Reduction Making Changes 58

59 Eight Stages of Change 1. Push urgency up world is changed vital to change with it 2. Put together a guiding team able, trustworthy, with formal authority 3. Create the vision and strategies simple, clear, uplifting vision 4. Effectively communicate the vision and strategies heartfelt, simple messages through many channels 5. Remove barriers to action take away any stumbling blocks 6. Accomplish short-term wins start with what will be successful 7. Keep pushing for wave after wave of change until the work is done keep the momentum going with more successes 8. Create a new culture to make new behaviour stick new norms, shared values and lasting organisational support Source: John P. Kotter, The Heart of Change, Harvard Business School Press,

60 Quotes from. Solomon Maintenance Practice Analyses Maintenance culture is determinant of site culture Performance seems unaffected by organisational type Age is not a major determinant of maintenance cost Higher cost maintenance groups realise lower plant availability Locations who train most realise highest maintenance costs and poorest reliability Maintenance success is (ultimately) determined by decisions of craftsmen and supervisors Site culture is a reflection of Site Management's values If peoples are willing to work together, the organisational structure does not matter Age does not drive cost. The Japanese say that a new machine is in the worst condition it should ever be. Of course, plants that have failures have low availability and high maintenance costs Until training is actually turned into better skills used to improve plant reliability, the training is totally wasted. All the strategies in the world do not work if the people doing the work do it wrong. 60

61 Developing the Plant Wellness Mindset Past Future Maintenance Store Operations Engineering Team-up to Win Suppliers Finance Info Technology We ve always done it this way. I know what I m doing, I ve done it for 20 years! Change to PEW causes Cognitive Dissonance mind/action alignment 61

62 Need to Develop Your Change Route Map Cross Functional Teams Stage 3 of Change Involve All Concerned Measure/Confirm Involve All Managers Measure/Confirm Tomorrow Stage 1 of Change Simplify Business Processes Today Analysis Planning Refine Processes Develop Mitigations Build Ownership Stage 2 of Change Feasibility Preparation Confirmation Approval Standardization Your Route Map for Change The map will provide direction for the project, and be used to explain the project to people in the organization, but the details will need to be in another document. 62

63 Planning Change: Change Management Matrix Awareness > Interest > Desire > Action Pressure for change Clear shared vision Capacity (resources) Action (and performance) 3 rd Stage 3 Policy and action plan in place Regular reviews Active commitment from top management 2 nd Stage 2 Policy agreed and communicated to all staff 3 High level of awareness and support at all levels Staff highly motivated 2 Representatives from all levels of management chain involved in planning process and drawing up action plan(s) All staff given opportunity to make an input 3 Resources (staff and funding) routinely committed Cost savings re-invested for further improvements 2 Key staff working on plans and projects. Staffing and funding needs identified and resources becoming available 3 Action being taken and embedded throughout the organisation Monitoring and reporting of progress 2 Wider engagement across the organisation Low-cost and more no-cost measures implemented 1 st Stage 1 Board level champion appointed Drafting of policy 1 Key and supportive staff identified for assisting in drafting policy, taking action, and driving the process 1 Champion appointed at middle management level (to support the Board s Champion ). Training & development needs assessment 1 Commencement of action at some levels of the organisation. Some no-cost measures implemented Today 0 No explicit policy Business as usual, no forward planning Lack of consistent leadership & responsibility (buck-passing) 0 De-motivated staff kept in the dark No communication. General mistrust 0 No investment. High stress levels in over-worked and under-valued staff No training & development 0 Zero action (or limited to crisis management) 63

64 Change Management Requirements Pressure for change Clear Shared Vision Capacity (resources) Action (and performance) Policy and action plan in place Regular reviews Active commitment from top management Policy agreed and communicated to all staff Board level champion appointed High level of awareness and support at all levels Staff highly motivated Representatives from all levels of management chain involved in planning process and drawing up action plan(s) All staff given opportunity to make an input Resources (staff and funding) routinely committed Cost savings re-invested for further improvements Key staff working on plans and projects. Staffing and funding needs identified and resources becoming available Champion appointed at middle management level (to support the Board s Champion ). Action being taken and embedded throughout the organisation Monitoring and reporting of progress Wider engagement across the organisation Low-cost and more nocost measures implemented Commencement of action at some levels of the organisation. Training & development needs assessment Some no-cost measures implemented 64

65 Taking Plant Wellness into the Organization Line-of-sight plan how to get there Establish Chance of Success Measures Research and document the requirements to meet the standard Resource the Mission Determine what to Achieve Set the Standard in Writing Develop the Skills in the Workforce Use and do the practices Test Performance This is the Change to Win Cycle. Use it over and over with each best practice you want to introduce into your business. 65

66 Change to Win Teams Step 1: Agree on scope of problem or opportunity to be addressed Step 5: Make Best Practices Standard Operating Procedure Step 2: Measure the size of Current State problems Change To Win Step 4: Develop the Future State with Best Practice Standards Step 3: Identify the best practices that prevent the problems 66

67 Training to Learn and Improve Use single-point lesson flyers to bring peoples knowledge up-to-date with current understandings and explain how it will be done differently in future. 67

68 Identify Wastes, Losses and Excesses in Process Steps and Select Process Step ACE Controls Inputs Inputs Inputs Inputs 1 $ $ $ $ $ $ $ $ $ $ 6 3 Raw Materials $ $ $ Failures, Losses, Waste $ $ $ Failures, Losses, Waste $ $ $ $ $ $ Failures, Losses, Waste Failures, Losses, Waste Customer Waste/Losses Contribution Bottleneck Profit Contribution continually falls Losses, waste and failures happen throughout your operation and the profit contribution from each step gets smaller and smaller. 68

69 Steps to becoming the best of the best Management Responsibility 3. Change To Win Management Teams 2. Vision and Policies 1. Push the Limit Processes Start 5. Process Step KPI s 4. Process Maps Capital 8. Process Step 3T Quality Standards 13. Equipment Criticality 9. Accuracy Controlled Enterprise QMS 6. Process Step Cost 7. Process Equations Step DAFT Costing 14. DOCTOR for Projects 11. Write 3T Procedures 15. Needed Chance Reduction Strategies 10. Change To Win Workplace Teams 16. Needed Consequence Reduction Strategies 12. Train to use 3T Procedures 18. Process Contribution Mapping 17. Cross Functional Teams 13b. Precision Operation 13a. Precision Maintenance Culture People World Class 1. Push the Limit 69

70 Operating Cost Control Least Costs High Costs Low Enterprise Asset Performance Maximum How can we do better with our plant? If it isn t broken don t touch it. What did it cost? Let s increase our uptime. Where did the money go? Is this the best way to spend our money? The Plant Wellness Cycle Operational World Class Let s optimise business performance. Don t have the problems in the first place. Precision Maintenance, Standards and Specifications Reliability Management, Reliability Data Analysis, Shutdown Extension Total Productive Maintenance (TPM), Up-skill Workforce Predictive Maintenance (PdM), Computerised Maintenance Management System (CMMS) Planning and Scheduling, Materials Management Preventive Maintenance (PM), Historic Performance Measures Reactive, Breakdown Maintenance Failure Prevention, Defect Elimination Enterprise Asset Management, Quality Management System Risk Management, Equipment Predictive Performance Measures Occupational Health and Safety, Shutdown Management Maintenance Management, Operations Management Financial Accounting Accuracy Controlled Enterprise Scientific Method Process Improvement Computerised Maintenance Management System (CMMS) Cost Accounting How can we make the most money? Enterprise Resource Planning (ERP) Activity Based Costing (ABC) Performance Measurement Supply Chain Management Life Cycle Profit Let s know exactly what happens in our business Processes Capital DAFT Costing Vision Quality Business-Wide Integrated Collaborative Teams HOLISTIC Profit Contribution Mapping Financial Vision Personal Leadership Best Practice Performance We work together as teams of experts. 3T - Target, Tolerance, Test - Precision Total Quality Management Culture People I am expert in my job. 3T Precision Procedures Specialist Skills Training Team Leadership ISO 9001 Quality System Descriptive Procedures Team Management Let s find the best way. On-the-job Training Performance Measurement Let s find a better way. I do top quality work. Job Description I want to do top quality work. Let s manage ourselves better. I just do what I m told. What happened!? What went wrong? 100% Right First Time High Wastage Low Maximum Production Quality Personal Performance 70

71 Summary of the Plant Wellness Way Methods and Tools for Lifecycle Asset Management Enterprise Excellence Holistic, Integrated, Life Cycle Business Processes Operational Excellence Distortion Management Procedures and Practices Degradation Management Procedures and Practices Accuracy Controlled Enterprise Defect Elimination Quality Management System Reliability and Process Improvement Tools Defect and Failure Total Risk Analysis Reliability Growth Cause Analysis Accuracy Controlled Enterprise 3T Procedures 8 Life Cycle Questions Analysis Design and Operating Cost Total Optimisation Review (DOCTOR) Precision Domain Operation and Maintenance 71

72 Overview of the Plant and Enterprise Wellness Your Ideal Operational Excellence. and Asset Management System START HERE for world class system Way System and Processes Engineering, Maintenance, and Operational Life Cycle Quality Processes Construction, Operations and Maintenance Practices Defect Elimination Strategy Operating Risk Reduction Machine Parts Health ATOMIC STRESS TO BUSINESS PROCESS MODEL Your Ideal Operational Excellence and Asset Management System Precision Quality Operation Standards Management Standards Quality Engineering Standards Standards Precision Engineering Skills Materials Design of Operator Construction Skills Environment Stress Precision Reduction Installation Distortion Control Precision Operation Degradation Control Component Distress (Atomic Structure Failure) 72

73 PEW/PWW Identifies What to Do, How to Do It & Where to Imbed Right Actions to Sustain Reliability Forevermore Reliability Engineering Planning and Scheduling ACE Precision Standards Human Capability Management Supply Chain Management Precision Maintenance Skills Integrated Business Systems ACE Quality Standards Preventive Maintenance ACE 3T Precision Installation START HERE for world class system Document & Configuration Management Parts Environment Management Distortion Management Knowledge Management ACE Quality Management Failure Cause Prevention Equipment Parts Health (Low Atomic Stress) Learning Organisation Operating Stress Reduction Degradation Management Business Process Improvement ACE Engineering Standards Lean Workplace Stores & Materials Practices Management Robust Materials of Engineering Construction Design Selection Predictive Maintenance Proactive Maintenance Capital Project Management Operating Risk Reduction Precision Operator Total Skills Productive Maintenance ACE 3T Precision Operation Life Cycle Costing ACE Operation Standards Business Risk Management Living Excellence Here. Plant Wellness Way: Right processes and practices you put into Operations and Maintenance that get you world class reliability and production. Start Here. 73

74 Designing a ISO Asset Management System with Plant Wellness Methodology Living Excellence Here The Plant Wellness Way: Right processes and practices you put into Operations and Maintenance that get you world class reliability and production. Starts Here FRAMEWORK (ISO 55001/PAS 55) WHAT TO DO AND HOW Plant Wellness Way Source: PAS

75 The Plant and Equipment Wellness Way Your Ideal Operational. Excellence Asset Management System START HERE for world class system Engineering, Maintenance, and Operational Life Cycle Quality Processes Construction, Operations and Maintenance Practices Defect Elimination Strategy Operating Risk Reduction Machine Parts Health ATOMIC STRESS TO BUSINESS PROCESS MODEL Your Ideal Operational Excellence Asset Management System Precision Quality Operation Standards Management Standards Quality Engineering Standards Standards Precision Engineering Skills Materials Design of Operator Construction Skills Environment Stress Precision Reduction Installation Distortion Control Precision Operation Degradation Control Component Distress (Atomic Structure Failure) 75

76 Business Value Contribution Life Cycle Profit Optimisation Loop Asset Maintenance Management the PWW Profit-Focused, Ultra-High Reliability Z E R O F A I L U R E Operating Risk Reduction Precision Assemble & use a plan for operation, maintenance & improvement of assets Assemble & use a plan for continually removing risk/defects from processes Precision Domain (with ACE 3Ts) 76