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Copyright 2010 GPAllied©
Copyright 2010 GPAllied©
Ultrasound World VI
2010
Presented by: Mike Aroney
Copyright 2010 GPAllied©
Copyright 2010 GPAllied©
And to Accomplish the Mission
Copyright 2010 GPAllied©
Reliability is Critical to a Fighter Pilot
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To Land Safely
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Maintenance Personnel are Key to Success
Copyright 2010 GPAllied©
What Tool?
When?
(Right Tools, Right Time)
Copyright 2010 GPAllied©
The Global Opportunity
• GDP
– $46.6 Trillion
• Industrial
– $14.9 Trillion
• Maintenance Spend
– $447 Billion
– 1.5-8X OEE multiplier
“It’s Ok to get excited about Maintenance!”
Copyright 2010 GPAllied©
Best Practice Benchmarking
1. Chemical Processing 522
2. Petro-Chem 498
3. Pulp & Paper 468
4. Automotive 465
5. Pharmaceutical 431
6. Metals & Mining 430
7. Power 373
8. Food & Beverage 369
“I could agree with you, but then we’d both be wrong”
Copyright 2010 GPAllied©
Areas of Return
• Cost reductions– Labor utilization
– Contractor costs
– Overtime
– Materials cost reductions (inventory/usage)
– Energy usage
• OEE improvements (capacity)– Availability
– Efficiency
– Quality
Copyright 2010 GPAllied©
Reliability Engineering in Maintenance?
Failure modes that
no technologie
s detect
Mai
nte
nan
ce C
ost
s ($
)
Equipment on PM (%)
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Time Time
Age Related = 11% Random = 89%
Failure Patterns
BathtubPattern A = 4%
Wear outPattern B = 2%
FatiguePattern C = 5%
Initial Break-in periodPattern D = 7%
RandomPattern E = 14%
Infant MortalityPattern F = 68%
Source: John Moore
Copyright 2010 GPAllied©Source: Steve Turner, OMCS International
Reduce Interval
6%
Use As Is
38%
Delete
21%
Extended Interval
23%
New Task
12%
Tasks Analyzed (include 96 new failure modes)
Review of Vendor PM Recommendations
Copyright 2010 GPAllied©
87,297100.0%20,000Totals
8,98710.4%2,487No Modifications
Required
26,22126.0%5,200Re-Engineer
28,22232.2%6,437Replace with PdM
23,86729.4%5,876Non-Value Added or
Reassign to Ops
Man-Hours
Represented
%
of Tasks
#
of Tasks
PM Task Action
Recommendation
Source: Allied PM Evaluation at a Steel Mill
PM Evaluation Categorize PM Recommendations
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PM/PdM Optimization Organizational Impact
FTE Positions Before After
PM Techs 43 17
PdM Techs 0 11
Planners 0 8
Reliability Engineers 0 2
RE Techs 0 5
Balance of Crew 57* 57*
Totals 100* 100*
* Notes Wrench time @ 28%
35 contractors
18% OT
Wrench time @ 50%
12 contractors
5% OT
Source: Allied PM Evaluation at a Steel Mill
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Capture Hidden Capacity Crafts Level
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• “…Nothing was missing, but we found three
more…”
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How Do You Get
There From Here?
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Synergy of “AND” Optimizes Reliability
Technology Maturity
Bu
sin
ess
Pro
cess
an
d
Cu
ltu
re M
atu
rity
+27%• Improved Bottom
Line Performance
• Lack of System
Support
Source: Brynjolfsson (MIT), Wireman, Troyer, Allied
High
LowLow
+75%• Significantly Improved
Bottom Line
Performance
• Practices and Systems
Aligned
Baseline •Informal
• Manual Planning
Processes
• Below Average
Business Performance
-7%• Systems are not
Complemented by Effective
Business Processes
• Significant Inefficiencies
High
Copyright 2010 GPAllied©
Asset Health Processes
• Management – Efficient
– Proactive Workflow – Planning & Scheduling
– Material Management
– Reliability Engineering
– Operator Care
• Leadership – Effective
– Creating a Culture of Discipline and Execution
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Change Management Values
80%
3:4
40%
29%
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System Variation = Inefficiency
“We have processes…we just don’t follow them”
1. Selection 3. Training
2. Leadership 4. Reinforcing System
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Copyright 2010 GPAllied©
If You Have Good:
• Leadership
• Alignment
• Teamwork
• Change Management
• Innovation (both shop floor and R&D)
You’re in an excellent position to achieve
world class performance
– If you don’t have this, it doesn’t matter much
what tools you use
Copyright 2010 GPAllied©
Philosophy
Processes
People
Tools
LEAN/Six Sigma - Systems Thinking
Management
Leadership
Management is Efficient - Decisions
Decide, Direct and Control – “Unfreeze & Freeze”
Leadership is Effective - Actions
Act and Influence – “New Thinking and
New Behaviors”
Copyright 2010 GPAllied©
Leadership
• “…Leadership- the ability to inspire ordinary
people to consistently perform at an
extraordinary level…” – Ron Moore
• “…Leadership is an influence process.
When you are a leader, you identify the
needs of your team members and strive to
satisfy those needs so they can achieve their
objectives and the objectives of the
organization…” – Ken Blanchard
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Most Organizations Are Not Aligned
• According to Harris Interactive Research (2006), only: – 37% of employees had a clear understanding of
what the organization was trying to achieve
– 20% were enthusiastic about organizational goals
– 20% saw a clear connection between their tasks and organizational goals
– 15% felt the organization enabled them to achieve their goals
– 15% felt they were in a high trust environment
– 10% felt their organization held people accountable
– 13% felt there was a high-trust, highly cooperative working relationships with other groups or departments
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Process Fragmentation
• The Battle of:
– The “Verticals” vs. the “Horizontals”
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Organization Culture Is Driven by 3 Things:
1. Systems– Performance management, information,
training, etc
2. Structure– Command and control/directive or team
based/self-directed; centralized decisions of import or decentralized decision making
3. Style of Leadership– Detached, command and control or engaged
and participative
Copyright 2010 GPAllied©
Maturity Continuum
Interdependent
1
Dependent
Independent
2
3
4
5 6
7
Steven Covey
7 Habits of Highly
Effective People
1. Be proactive
2. Start with the end
in mind
3. Put first things
first
4. Think win/win
5. Seek first to
understand, then
to be understood
6. Synergize
7. Sharpen the saw
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The Fleas And The Elephant
• “…If you are not achieving performance
objectives blame the system, not the
people…” - Deming
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Culture: How We Learn It. . .
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Managing Culture Change
• “…Culture – what people do
when the boss isn’t around…”
- Ian Fife, Shell
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An Organization’s Reliability Culture =
• Operators operate and maintainers fix…they are independent functions
or
• Operations and maintenance work together interdependently to keep the assets in like-new condition so…
• “When you push the button, it runs on demand at designed capacity and desired quality”
Copyright 2010 GPAllied©
From Parker Smith (Eastman Chemicals) - 2004 MARCON Keynote Presentation
Production
Maintenance
I better get out of here beforethey blame me for the oil leak
Production and Maintenance Relationship
Before
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After
Production and Maintenance Relationship, cont’d
Copyright 2010 GPAllied©
Managing Change
• Six (6) Factors for Changing Culture:
1. Dissatisfaction with the current state
2. Compelling vision of the desired state
3. Plan of action that will enable movement from
current state to target state
4. Engaged Executive Leadership and Workforce
5. Structure for executing
6. Information and Skill management
Copyright 2010 GPAllied©
Stabilize the Changes
• Realign or Develop standards, procedures
• Train people in these, assessing compliance,
and measuring conformance
• Incorporate standards into:– Succession Planning, Performance Objectives,
ISO 9000 certification, Daily Management System
Install “Reinforcing Systems”
Copyright 2010 GPAllied©
The Leader’s Role in Leading Change
• Recognize the need for change
• Have vision
• Inspire
• Communicate
• Engage
• Set example
• Plan / Adapt / Network, build the coalitions
Commitment
Copyright 2010 GPAllied©
Questions?
Copyright 2010 GPAllied©
Mike brings 20 years of executive leadership experience with exceptional success
developing and executing Business Strategy, Change Management, Organizational
Transformations, and Leadership Coaching, and Maintenance and Reliability Excellence
for Shipyard and Ships’ Intermediate Maintenance Activities. His specific experience
includes: NAVSEA Program Manager for the Navy Enterprise Maintenance Automated
Information System (NEMAIS), project reengineering processes for material
management, work control, planning and scheduling, budgeting, personnel
management, reliability engineering, and operator care for Navy ships’ maintenance
throughout all Navy’s SIMAs and Ship Yards from 2000 to 2004. Mike was Program
Manager for the NAVSEA Project Management College providing executive oversight on
curriculum and delivery to Carrier Availability Project Teams from 2003 to 2005.
He is adept at providing customized solutions to achieve and sustain changes in an
organization’s culture, and align the organizational to optimize execution and results of
new business approaches for maintenance and reliability. Mike has successful executive
experience developing business objectives and strategy, and aligning functional
departments to execute and sustain $1.7 billion in revenue. Mike coached and advised
senior executive teams, developed strategies and plans and follow-through with
coaching and guidance to implement best practices in Reliability Excellence.
He has industry experience with: Alcoa, Century Aluminum, CMC Steel, Novellis,
Swagelok, Pfizer Pharmaceuticals, Merck Pharmaceuticals, Johnson & Johnson Ortho,
Pearl Harbor Naval Shipyard, Joint Forces Command, Naval Sea Service Command,
Madison Metropolitan Water District, Los Angeles Metropolitan Water District, and US
Sugar Corporation to name a few.
About the Speaker
Mike Aroney
Director, Change ManagementEDUCATION
MBA
MS Education
BA Public Administration
CERTIFICATIONS
Executive Leadership
Strategic Planning
AFFILIATIONS
SMRP
AMP
CONTACT
Mike Aroney
GPAllied, LLC
4360 Corporate Rd Suite 110
Charleston, SC 29405
Work: 843-469-5458