Planned Maintenance. Program Unlocking Capital. RFMA 2016 March Planned Maintenance Process. 4 Key Areas of a Planned Maintenance Program
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1 Planned Maintenance Program Unlocking Capital 4 Key Areas of a Planned Maintenance Program Planned Maintenance Process Planned Maintenance The Planned Maintenance Program has 4 areas of focus, all of the these being active concurrently, all supporting the goal of improving your restaurant while controlling cost All 4 of these are supported and driven from leveraging available data 1. Preventive maintenance 2. Improve efficiency 3. Root cause analysis and solutions 4. Strategic capital investment 1
2 Preventive Maintenance Preventive Maintenance is Good Business Preventive Maintenance Business Case HVAC Preventive Maintenance HVAC equipment uses on average 40% of the total energy of the restaurant There are many faults that contribute to the performance degradation of Roof Top HVAC Units or RTUs. A few of the most common ones are: Dirty condenser coils Dirty evaporator coils Dirty filters Improper adjustment of blower belts Under or overcharge of refrigerant 2
3 Typical RTU Power Demand Reference: Dirty Condenser Coil Impact on Power Compressor power was increased by as much as ~70% Evaporator fan power remained constant Condenser fan was increased by as much as ~30% Reference: Assessment (Before) HVAC 1 (KITCHEN) HVAC 3 (DINING ROOM) HVAC MUA 1 3
4 Assessment (after coil cleaning) HVAC 1 (KITCHEN) HVAC 3 (DINING ROOM) HVAC MUA 1 Wendy s HVAC Example Average cost per restaurant $390 Energy savings $1,153 Does not include Energy savings of Walk ins Ice machines Sandwich station Extending the life of the equipment Reduction in down time Improve Efficiency 4
5 Improve Efficiency Improving efficiency for the facilities function has 4 keys to success 1. Standard Operating Procedures 2. Leveraging Available Resources 3. Training 4. Challenge and Recognize Standard Operating Procedures Just as it is important for Operations to have documented operating procedures, it is critical for Facilities to have standard operating procedures in a planned maintenance model Enables benchmarking Utilizes best practices Creates consistent expectations Examples of SOPs Accounting practices Work flows for requesting and executing service Preventive Maintenance scopes of work for each asset Leveraging Available Resources Performing an analysis on resource allocation ensures you are leveraging all internal and external resources to best utilize for the most cost effective and expedient service An example of this is our quarterly replacement of HVAC Filters Most of our markets utilized in house technicians for this work In 2014 we worked with Bonded Filter Company, a national filter manufacturer and installer, to developed a Wendy s specific scope of work and standard operating procedures for 4 HVAC filter changes a year This produced an average 33% or $148 annual savings and for the majority of the markets where we were using in house technicians to change these filters we were able to bring other higher cost services back in house 5
6 Training COO to CEO What if we train our people and they leave? CEO to COO What if we don t and they stay? Three areas of training focus: 1. Safety personal, employees, customers, food 2. Equipment repair and maintenance 3. Standard Operating Procedures Safety Online Training Equipment Training 6
7 Equipment Training Equipment Training Equipment Training 7
8 Equipment Training Click here Equipment Training Equipment Training Tracking 8
9 Challenge and Recognize Building on Standard Operating Procedures, Proper Resource Allocation and Training provides the means to raise the bar! Benchmarking becomes very powerful and can be tied to performance reviews Engage internal and external resources to participate in improvement ideas and solutions to control cost Incentives for behaviors that reduce cost and improve service Technician Score Card Technician Score Card 9
10 Vendor Score Card Drain Cleaners Root Cause Analysis Root Cause Analysis When we fix the root cause of a systemic issue every restaurant benefits. These are the typical steps for root cause analysis 1. Identify areas of opportunity this can be from data collected, input from service technicians and/or operations team 2. Drill down to understand if there are common failure modes across the system 3. Identify if the issue is an equipment, procedure or training issue maybe a combination of the three 4. Work with appropriate resources to develop a solution 5. Test & Implement solution 10
11 Top 10 R&M Expense Drivers 2014 Root Cause Analysis Fryer Filter Issues Root Cause Analysis Toaster Bearings 11
12 Repair Cost Analysis to Drive Oven Redesign There was a 36% or $324k increase in maintenance cost for the oven comparing 8 months pre bacon to 8 months post bacon Replacing ovens with the design we have seen our R&M cost for the oven drop 21% from 2011 though 2014 for same restaurants Strategic Capital Investment Preventive Maintenance is not Always Enough 12
13 Capital Reinvestment Strategy Data driven 3 to 5 year living reinvestment plan Tie capital budgeting to 3 year plan Leverage DMA market plans, remodel schedules and TechConnect data Objectives: Reduce emergency equipment replacement always pay more for unplanned equipment replacement and experience disruption for guest & operations Stretch capital dollars though better long range planning ability to negotiate on volume and planned replacement Leverage new technologies and energy efficient equipment Prioritization Process Top drivers of R&M expense and energy use Age/End of Life Equipment performance Remodel schedules DMA market plans CEI data Leveraging All Available Data 13
14 HVAC Survey Evaluating the EER of Replacement Units Actual data from test location in Miami FL Replaced a 14 year old 9.8 EER unit with a new 12.5 EER unit Average Temp for both days was 85.5 degrees Total energy cost for old unit $13.22 Total energy cost for new unit $7.23 or 45.31% reduction Thank you john.getha@wendys.com 14
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