RELIABILITY EXCELLENCETHE POWER TO IMPROVE ASSET PERFORMANCE

INTRODUCTION TO

The Business Case for Reliability

Reliability Excellence has helped manufacturers:

Increase capacity

Increase product availability

Reduce cost of goods sold

Improve overall equipment effectiveness (OEE)

Reduce maintenance costs and spending

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Implementing Reliability Excellence

Examples of Business Results:

CLIENT RESULTS ROI

Pharma Products Increased capacity 15%Reduced COGS 5%

ROI > 20:1 (18 months)

Healthcare Products Increased availability >15%Improved OEE 10%Reduced maintenance costs 20%

ROI > 15:1 (3 years)

Primary Metals (34 Plants) Reduced maintenance spending 10%Increased capacity (% confidential)

ROI 5:1 to 16:1 (3 years)

Metals Processing Reduced maintenance spending 20%Increased anode capacity 10%Increased aluminum capacity 4%

ROI 16:1 (3 years)

Steel Increased capacity through OEEImprovements of greater than 2%

ROI > 11:1 (3 years)

Beverage Increased capacity of high speed process >25%Reduced COGS 10%

ROI > 20:1 (24 months to date)

By designing reliability into daily plant operations and creating a culture of prevention and improvement, plants can operate as safer, more productive and more profitable businesses.

The Reliability Excellence Journey

The Reliability Excellence journey requires building the foundation of principles and culture, establishing and optimizing the processes and procedures that create reliability, and putting in place the management and reporting elements that drive sustainability and continuous improvement.

A Three-Wave Approach to the Rx Journey

Wave 1: Education and Communication

Activities Include:

• Conducting initial strategic planning workshops• Executive-level introduction to the principles of Rx• Integrating reliability improvement initiative with the overall business plan• Developing manufacturing objectives, goals and targets• Establishing a cross-functional leadership team to sponsor the Rx

program

Wave 2: Assessment, Master Planning and Business Case Development

Activities Include:

• Identifying key opportunities using Rx assessment methodologies• Developing the Master Plan for Rx implementation• Quantifying the business case for Rx implementation• Establishing the change management structure required to support

implementation

Wave 2: Assessment Using the Reliability Excellence Model

The objective of the assessment is to examine and evaluate current reliability processes and practices as compared to industry-accepted best practices. This analysis is used to build an Rx implementation Master Plan and a business case that supports the plan.

Reliability Excellence ModelFounded on the values and tools of Six Sigma and incorporates the principles and strengths of Lean Manufacturing, Total Productive Maintenance, Total Quality Management, Maintenance Excellence™ and similar programs that define best practices, into a single, holistic, continuous improvement process. .

Wave 2: Benefits of Performing an Rx Assessment

In addition to building organizational awareness, alignment and buy-in, the process delivers:

• Widespread understanding of the current state of operations and the gaps that exist between the current state and Rx best practices

• Leadership commitment to the initiative • A defined roadmap – the Master Plan – that will lead to the future state• A cost/benefit business case that supports the financial justification to

undertake the initiative• The identification of prospective change agents who will actively drive

and sustain the new organizational culture

Wave 3: Master Plan Implementation, Measurement and Follow-up

Activities Include:

• Establishing leadership and focus team structure to execute the Master Plan

• Providing Rx subject matter and leading change training to accelerate the design process

• Supporting development of business processes with dedicated subject-matter coaching

• Continually monitoring project progress against agreed-upon deliverables and timeline

• Proactively managing culture change to ensure early adoption of new business processes

Visit PoweredByRx.com to learn more about Reliability Excellence and access more than 400 resources related to reducing risk,

improving performance and engaging employees.