SIMAIN Business Based Maintenance Maximum performance from your assets Industrial Technologies
Aligning maintenance strategy with business targets is key to generating value for your company International markets increase the need for productivity and efficiency Globalization is opening up new markets for companies everywhere as well as expanding their opportunities for both procurement and sales. These opportunities create huge potential for revenue growth and cost reductions. However, as economic boundaries disappear, global players, smaller multinationals and regional companies alike are faced not only with opportunities but also growing competition and relentless cost pressures. These market mechanisms, which cannot be directly influenced, also have a major impact on share prices and the price of raw materials. In this market environment, productivity and efficiency play a key part in achieving the strategic goals set by your company. Much more than just a cost factor Many companies still see maintenance only as a cost factor. Nevertheless factors directly influenced by maintenance performance such as uptime, speed and quality have a considerable impact on financial results. Production losses are hidden costs that need to be understood and controlled in order to extract maximum performance from a company's assets. Improving maintenance performance means achieving the right balance between maintenance resources and processes to ensure optimum maintenance costs and production levels according to the company's targets and, at the same time, maximizing profit levels. In addition to production increase and cost efficiency, the achievement of a high level of maintenance performance means reducing the capital employed by the company by increasing the lifecycle of the equipment and optimizing spare parts stocks. In other words you can benefit from producing more, with lower costs and for a longer period. This is the best way to avoid new investment needs while at the bottom line generating a higher return on the company s capital employed. 2
Phases Awareness Analysis and Feasibility Implementation Sustainability Demand Identification of Development of a Systematic Management improvement potential concept based on an in-depth analysis implementation of the defined concept attention focused on maintenance processes (Continuous Improvement Process (CIP)) Benefit Competent Comprehensive Improvement of the Sustainable and support for implementation processes and manageable a confident concept supported by achievement of the improvements go / no-go decision a feasibility analysis potential defined in (ROI calculation) the previous phases Business Based Maintenance Maintenance Improvement Integral Plant Maintenance Our solution: SIMAIN Business Based Maintenance Siemens Industrial Technologies the technical services provider of Siemens for industry and infrastructure has developed the SIMAIN Business Based Maintenance solution within our Asset Performance Management Portfolio, targeting the individual requirements and business objectives of our customers by integrating maintenance consulting with a long term partnership in a product vendor independent solution. Our stepwise approach helps you to align the targets of your company with your maintenance strategies and to extract maximum performance from your assets in the most cost-efficient manner. You can decide with confidence when to move forward and implement the necessary steps to improve your maintenance performance, reducing the overall risks and focusing on the right levers. Implementing our solutions means you can benefit from: Improving the performance of your assets and therefore increasing the production and the quality of your final product, Improving the efficiency of your maintenance processes achieving lower unitary production costs, Optimizing your spare parts stocks, Improving the lifecycle of your equipment and reducing investment requirements, Reducing overall energy costs, Minimize health and safety related risks. 3
Siemens' extensive international experience and know-how ensure the success of our approach 1.1 Management Commitment and Leadership 7.2 Major Overhauls 5 1.2 Maintenance Policy 7.1 Maintenance Planning and Scheduling 1.3 Maintenance Improvement Program 4 6.5 Asset Management Plan 1.4 Risk Management Highest Average Lowest Current 6.4 Plant and Equipment Condition Monitoring 3 1.5 Quality Assurance 6.3 Asset Life Cycle Cost Management 2 2.1 Financial Control 6.2 Maintenance Strategy & Plan Development 1 2.2 Equipment Performance Analysis 6.1 Operational Analysis 0 2.3 Maintenance Review Program 5.4 Fault Management 2.4 Health & Safety Management Training 5.3 Document Control System 3.1 Organization Structure 5.2 Maintenance Management Information System 3.2 Workforce Involvement and Participation 5.1 Standard Procedures and Job Instructions 4.4 Workshops 3.3 Personnel Development Program 4.1 Spare Parts Procurement & Material Planning 4.3 Contractor Management 4.2 Warehouse Management We have offices at more than 200 sites in 50 countries worldwide. More than 2.500 employees are working on maintenance projects. Our maintenance experts have comprehensive know-how and experience, extending across all maintenance related processes, and provide the right support for your specific needs. We ensure your success by relying on our: International experience and know-how, Professional analysis and implementation processes, Innovative IT tools, Competent and certified consultants and experts, Systematic project management. We help you to identify the potential Business Based Maintenance uses a professional and standardized assessment method in the awareness and analysis phases to measure and benchmark the performance of your maintenance processes. By identifying the gaps between your actual performance and the improvements that can be achieved in a given timeframe, we estimate the improvement potential and the expected return on your investment. Based on the experience gained in projects all over the world and many industries, we have identified attractive and feasible improvement potential regarding maintenance costs and production performance. The average values identified are: Cost reduction potential: 7.5-10% Overall Equipment Efficiency (OEE) improvement potential: 2-4% 4
Business Based Maintenance Solutions House Identified potential: Equipment uptime Cost Efficiency Capital employed & investments Safety and Environment Asset Management Performance Control Personnel & Organization Spare parts & contractors management Maintenance Processes Equipment Maintenance Strategies Planning & Scheduling Change Management & Continuous Improvement and achieve it! By improving the maturity of your maintenance processes during the implementation phase and assuring the continuous improvement and the right level of management attention in the sustainability phase we can support you to achieve and sustain the identified potential and benefit from it in a short and medium term, based in our solutions house. Examples of improvement measures are: Alignment of the business strategy and the maintenance targets, Implementation of Maintenance Management Systems (CMMS), Development of preventive and predictive maintenance plans, Training and coaching of maintenance managers, planners and engineers, Implementation of a performance control system based on Key Performance Indicators (KPI), Warehouse optimization, among others. 5
Business Based Maintenance A stepwise approach to improve the performance of your maintenance processes Awareness- Phase Showing the way towards your maintenance improvement. The awareness phase is based on our standardized Maintenance Health Check assessment, which consists of a 2-day on-site analysis performed by our most experienced consultants. This phase is aimed at giving you a clear idea of the maturity and performance levels of your processes and allowing you to decide with confidence on whether to proceed with a maintenance improvement project. The results of this phase are: Overview of the maturity of the maintenance processes, Identification of the main levers for improvement, Rough estimation of the improvement potential, Agreement on the next steps. Analysis and Feasibility-Phase In-depth review, risk analysis and simulation of the return on investment. Once you decide to proceed, the aim of this phase is to develop a comprehensive concept for the implementation phase. The main modules that we perfom in this phase are: Maintenance Business Review An in-depth assessment that will investigate the improvement measures needed within each maintenance-related process and the interaction between maintenance and other functions such as production, purchasing and finance. We deliver a comprehensive report with all the findings and recommendations, a benchmark study on the maturity of your processes and an accurate calculation of the improvement potential. Maintenance Business Simulation Based on the results of the Maintenance Business Review, this innovative tool can model your maintenance organization and simulate the improvement measures proposed in different what if scenarios. It also performs resource planning and balancing, verifies the best options and calculates the expected Return on Investment (ROI) of the project. Alignment Workshop Once the main concept is clear, we organize a workshop with you to evaluate the concept and the main risks and challenges to implement the necessary measures. 6 The results of this phase are: Detailed technical and economic feasibility study, Simulation results and estimation of the ROI, Implementation concept, Overall risk management plan.
Implementation- Phase Realizing the improvement potential This phase is based on our Maintenance Improvement Program which provides you with a systematic approach to implement all the measures and realize the identified potential. Typical activities during the implementation phase are workshops to develop new procedures, resource planning, training and coaching of your employees. Our project management and professional support ensure that you reach your targets by implementing the necessary improvements and guiding you through this change management process. The results of this phase are: Professional and improved maintenance processes, Organizational and behavioural changes that allow you to achieve your targets, Implementation of new and improved strategies, procedures and tools, Realization of the improvement potential, including: Equipment uptime and OEE improvement Cost efficiency Warehouse optimization Sustainability- Phase Ensuring long-term continuous improvement We can handle your maintenance management and resources, manage and perform all maintenance activities. We deliver through a performance-based contract the results you need to achieve your targets in a long-term partnership, ensuring the management attention required to keep maintenance performance at the desired level. This solution, called Integral Plant Maintenance, can include all other phases of the Business Based Maintenance approach. This means that we can handle the organization and perform the analysis and implementation of the necessary improvements under the maintenance contract. In addition, we offer a Motor Management Program whereby we manage the maintenance and repair of all your motors, boosting reliability, reducing costs and cutting inventory levels. The results of this phase are: Improvement in maintenance performance, Long-term sustainability and continuous improvement, Contractual assurance of the agreed KPI, Optimized Spare Parts Stock. 7
Our solution for long term continuous improvement Long term maintenance contracts are an important and strategic decision of your company. With our approach we support you through the whole decision process and develop with you a win-win partnership in which all parts benefit. Our Integral Plant Maintenance solution is build up to make sure that we keep the success of this partnership, by developing the contract models according to the specific needs of our partners in performance contracts based on clear KPI s. Among others, the scope of such contracts includes: Maintenance Operations including management, engineering, planning and execution, Overtake of the electrical and automation maintenance, including the planning, scheduling and improvement processes, Management of subcontractors, Motor Management Program. Siemens Experience and know-how Methods and tools Maintenance Management Maintenance Engineering Planning and Scheduling Partnership model Maintenance activities Maintenance Management Process optimization Subcontractor management Purchases Customer Customer Maintenance resources Subcontractors If you consider maintenance to be a key component of your process expertise but need a partner to manage it, we can offer a joint approach in which you own part of the maintenance organization that provides you the maintenance services. In this manner you benefit from having a professional and reliable partner to manage your maintenance processes and resources, concentrate in your core activities and have the ownership of the maintenance know-how in a medium and long term secured. 8
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Business Based Maintenance no hit and run A successful maintenance improvement approach can never be based on cosmetic improvements and the implementation of standard processes and tools to provide short-term gains. All maintenance improvement projects have a crucial human factor that requires change management and constant management attention. The risks that the old processes and manners will return and efficiency will come back to the levels they were before the project are high, and all investments and efforts will seem in vain. Only a professional company willing a long term partnership and with the right approach can offer the right support to avoid such problems. Therefore like in all our solutions, Business Based Maintenance will guide you through all the improvement process allowing you to make the right and confident decision to move forward towards a win-win partnership, assuring short and long term performance. Siemens can deliver you within our Maintenance Improvement and Integral Plant Maintenance services innumerous tangible and intangible benefits, including: Increase of your total asset utilization, increasing uptime of your machines and therefore your sellable production, Implementation of new and improved maintenance processes, optimizing and assuring a higher utilization of the available resources increasing the overall cost efficiency, Improve on the quality of the maintenance activities, assuring better reliability and longer useful life of the equipments, reducing the overall investment needs, Reduction of your spare parts stocks, the total spare parts costs and increasing your stock reliability by focusing on the critical spare parts, Risk mitigation and confidence on the decision making by estimating for every phase the return on investments and analyzing all risks involved, Continuous improvement and management attention to keep improving in the long run, Increased motivation and competence of the maintenance staff, Better maintenance cost control and reporting, increasing transparency and improving the budgeting and forecasting processes, Better maintenance planning, improving the production planning, the order to cash and the total supply chain processes, By increasing your asset utilization, cost efficiency and in combination with our Energy Optimization solution, we can support you to increase your energy efficiency and reduce the overall CO 2 emissions. We help you to make maintenance a competitive advantage of your company: Maintenance from pure cost factor to a success factor. We care that s our promise! 10
SIMAIN Business Based Maintenance is just one service package in our Asset Performance Management portfolio. Within our scope of solutions we also offer Energy Optimization: We can help you to reduce your overall energy costs. SIMAIN BUSINESS BASED MAINTENANCE SIMAIN ENERGY SERVICES Maintenance Improvement Integral Plant Maintenance Energy Optimization Maintenance Health Check Maintenance Business Review Maintenance Improvement Program Maintenance Operations Motor Management Program Energy Health Check Energy Optimization Services Energy Optimization of Drive Systems 11
More Information Siemens AG Industry Sector Industry Solutions Division Industrial Technologies I IS IN P.O. Box 3220 D-91058 Erlangen, Germany The information in this document contains general descriptions of the technical options available, which do not always have to be present in individual cases. The required features should therefore be specified in each individual case at the time of closing the contract. All designations used in this document can be trademarks the use of which by third parties for their own purposes could violate the rights of their owners. Order-No.: E10001-T430-A57-V4-7600 Printed in Germany Dispo No. 21646 K-No. 38300 NOR C-ISOL5208M0901 WS 11091.5 Subject to change without prior notice Siemens AG 2009 All rights reserved. www.siemens.com/simain