Results Oriented
Reliability and Maintenance
Consulting and Training
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Results Oriented Reliability and Maintenance
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IDCON Staff
• Oli Håkansson• Michael Lippig• Tor Idhammar
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• Originated in Sweden 1972 as Idhammar Konsult AB.
• Established in USA 1985.
IDCON, INC.
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To help our clients Improve Overall Reliability and Lower
Manufacturing and Maintenance Costs.
IDCON Mission
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What Do We Do?
Open Training Seminars
In Plants
Reliability & Maintenancefor process industry•Advice•Leadership Organization•Assessments•Planning & Scheduling•Preventive Maintenance•Root Cause Problem Elimination•Spare parts Management•Technical Database
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IDCON Books
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IDCON
Client CriticalPeriod
CommitmentOwnership
Outside Support Phases out as your Organization Takes over Ownership
Results Oriented
Reliability and Maintenance
Consulting and Training
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AwarenessCost Vs. Reliability
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Reality for Plants
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Which Cost is Most Importan?
Maintenance Cost?Maintenance Cost per Ton?
Total Cost per Ton?Total Cost?
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Three ways to reduce maintenance costs
1. Cut the cost
2. Reduce the need for maintenance
3. Execute remaining maintenance more efficiently.
Deferred maintenance leads toshort term savings and long term higher costs.
Procurement based on Life Cycle Cost.Maintenance Prevention
Lubrication, Alignment, Balancing, Operating practices.
Inspect, Prioritize, Plan, Schedule, Record, Analyze, Improve.
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CUT COSTNO OTHER
IMPROVEMENT
Wrong Turn
1. Cut Cost2. Less Repairs and
PM* are Executed3. Reliability will slowly
falter4. Reliability will falter
quicker5. Maintenance repairs
become reactive6. Cost of repairs, lost
production , and spares go up
7. Reliability become worse due to completely reactive work cycle
8. Cost go up even more*PM = Preventive Maintenance
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Right Strategy 1. Inspect equipment better
2. Failures are identified before break down
3. More lead time to plan & schedule
4. Reliability improves
5. Cost may go up due to repairing more for a while
6. Reliability goes up
7. Cost follows due to fewer break downs
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Case study 1 -Focusing on COST
Reduction.
Justifying Investment in Reliability
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0
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20
30
40
50
60
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80
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100
Year 0 Year 2 Year 4 Year 6 Year 8 Year 10
Maint. Cost Million $0000 tons prodReliability
Ten years effect of two years cost cutting focus
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0
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200
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Year 0 Year 2 Year 4 Year 6 Year 8 Year 10
Maint. Cost Million $Lost Revenue Million $
Ten years effect of two years cost cutting focus
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Case study 2Focusing on Reliability
Improvement
Justifying Investment in Reliability
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Ten years effect of reliability improvement focus.
0
10
20
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40
50
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Year 0 Year 2 Year 4 Year 6 Year 8 Year 10
Maint. Cost Million $0000 tons prodReliability
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Ten years effect of reliability improvement focus.
0
5
10
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30
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Year 0 Year 2 Year 4 Year 6 Year 8 Year 10
Maint. Cost Million $Increased Revenue Million $
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Average Market Price: $595 per tonLess Variable Cost/ unit: $296 per tonContribution tocover fixed costs= $299 per ton.
Production 2006: 329,000 tons / year
One percent increase in output is 1% * 329,000 = 3290 tons
Additional PROFIT for 1% increase is: 3290 * 299 = $984,000 ANNUALLY!
Value of lost Production for your plant – Actual Example Product X
Profit (or lost profit) / Hour = 329,000 tons/ 8760 hrs = 37.55 tons/ hr299 * 11.76 = $11,229/ hr
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$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
0% 1% 2% 3% 4% 5% 6% 7%
Value of increasedReliability
Leverage of Increased Reliability andReduced Maintenance Costs Product X
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Cost vs Reliability
• Your Maintenance and Storeroom cost is about 60 Millions Year.
• How would you reduce this cost?• What happens to that cost if reliability improves
Results Oriented
Reliability and Maintenance
Consulting and Training
WWW.IDCON.COMProduction Reliability
Maintenance-Equipment Reliability
Operations-Process Reliability
Engineering-Life Cycle Cost
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OVERALL PRODUCTION EFFICIENCY (OPE)
Q - % Prime Quality Volume
S - Operation Rate or Speed
Time Up x 100
Time Up + Time Down
Prime Quality Volume x 100
Prime Quality Volume + Rejects
Actual Capacity x 100
Actual Capacity + Speed Losses
OPE = %A x %Q x %S
A - % Availability or Time Up
Results Oriented
Reliability and Maintenance
Consulting and Training
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Create & CommunicateVision – Where are we going? (Paint the picture)
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Predictive maintenance
Planned maintenance
RCM
TPM AMCBM
Build up
Break throughIdentifyBest Practices*
* About 286 elements
Lean Maintenance
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Do We Know Exactly Where We are Going?
TIME
Reliability Performance
CURRENT
Where Plant Wants to be
•Must Be CLEAR•SIMPLE•Well Communicated
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Identify the Gap
Actual
• How good are we?
Best Practices in Reliability and Maintenance
• How good could we be?
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IDCON Definition - Preventive Maintenance / Essential Care and Condition Monitoring ( PM/ECCM )
Essential Care/ FTMPrevents Failures
Condition MonitoringDetects Failures
•Lubrication•Alignment•Balancing•Detailed Cleaning•Operating Practices•Installation Practices•Filtration •Adjustments•Fixed Time Maintenance
LookListenFeelSmell
MeasuringPressureFlowCurrent, VoltageDistanceVibration TemperatureSound level
UsingInfrared CamerasVibration SensorsShock Pulse MeasurementUltrasonic Thickness TestUltrasonic Listening (leaks)Oil AnalysisGauges, etc
ObjectiveProvides a comparable reading
SubjectiveProvides no reading
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How well you are doing is sometimes very visual
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72” 1200 HP- Single Drive Raw Coal – The Gearbox
Proposed Gearbox Inspection (example)
Noise, Temperature, Bolts, Vibration, Oil Leaks, Oil Level, Breather, Base & Foundation
• CMS117R – Gear Reducer
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Preventive Maintenance 72” 1200 HP- Single Drive Raw Coal -The Motor
Air Intake, Detailed Cleaning, Water/ Humidity, Temperature, Vibration, Noise, Base/ foundation/ hold down bolts, Electrical Cables and Junction Box
• CMS100R – AC Motor
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CMS Overview
Basic Principle of Operation
Why this Task is Important
Describes the Inspection Task
Reference Key to Inspection
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Centrifugal Fan – Example for Using CMS
CMS 142R Fan – Air Centrifugal
CMS129R Bearings
CMS 137R Belt Drive
CMS 100R Motor AC
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Paper Route Example
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Fahrenheit
Handheld Example
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Where to Start Improving PM and Operator Involvement?Typical Priority – process industry?
1. Basic Lubrication (rotes & oil changes)2. Inspections: Mechanical, Electrical ,Instrumentation, Operations
On-the-run & off-line (incl. vibr/ infrared/ ultrasound/ NDT)3. Cleaning & Operator Practices4. Alignment (if you have a lot of rotating equipment)5. Precision Installation6. Improved Lubrication (oil analysis, cleanliness, storage etc)7. Balancing & Design
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* Waiting for instructions ______min.
* Looking for supervisors for the next job ______min.
* Planning job ______min.
* Trips for material, tools, manpower ______min.
* Waiting on other trades ______min.
* Waiting for operations to release equipment ______min.
* Research for technical documentation ______min.
* Late starts / Early quits ______min.
* Personal ______min.
* Travel Time ______min.
* 480 minutes per day Total ______min.
Fill in Blanks: Planning & Scheduling Optimizes Time!
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PLANNED REPAIR UNPLANNED REPAIR Comments
work order 37309 work order 44699
Price of Component $124,000.00 Price of Component $189,755.00 Repair and Return vs. Exchange cost
Additional repair cost $0.00 Additional repair cost $32,555.70 Additional damage from failure
Hot Shots 0 Hot Shots 3
Cost Of Hotshots 0 Cost Of Hotshots $750.00R&R Gearcase -Labor Hrs 68.5
R&R Gearcase - Labor Hrs 101.5
Maint Labor Cost $1,678.25 Maint Labor Cost $2,486.75
Down Time 0 Down Time 4.58 hrs Lost Production to swap out miners
Cost of Down Time $0.00 Cost Of Down Time $85,091.82
Total Cost of Repair $125,678.25 Total Cost of Repair $310,639.27
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Exercise Definitions
• What is Planning?• What is Scheduling?
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Planning – What, Why, Where, & How
Identification and documentationof work to be done including:
• Symptom description Initiating Work• Job duration & Job Work Steps• Cost Estimate for Job• Physical and environmental constraints• Lock Out Tag Out, Safety precautions, Permits• Resource Requirements
•People•Skills•Lifting equipment, tools, parts, material
• Impact on Production
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Scheduling – When & Who
53
Identification and Documentationof:
•When Work Will Be Done• Who Will Do It• How Much Time Is Required
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Work Request and Priority Guidelines
Priority Example of Failure or Incident Maximal time in backlog
Is the job necessary to do? Yes No On Hold
1 Immediate safety risk Immediate risk of environmental damage Immediate risk of quality losses. Critical equipment down Short failure developoing period
Immediately. Will break other less important ongoing work.
2 Critical equipment is running at reduced speed Critical equipment is running in manual mode Manageable safety risk PM activity Mandatory inspections Failure developing more than 1 week
1 day - 1 week
3 Critical equipment running on spare equipment Failures that need correction Spare equipment out of function Leaks Failure development more than 1 month
1 week – 1 month
4 Improvement work - expense. Improvement work - capital
> 1 month
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STOP
WHAT?
Find the RightPeople
To Fix Prblm.
Find Parts andTools Repair
Down TimeUp Time
STOP
Find the RightPeople
To Fix Prblm.
Find Parts and
Tools
Repair
TestAndStart
INSPECTION
PLAN, SCHEDULE
RepairTestAndStart
Operate To Break Down
Only Plan
Inspect, Plan,Schedule
TestAndStart
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Scheduled Shut Down
Inspect/Problem Found
Plan, Schedule
Execute
Coordinate Production and Maintenance Plans.Utilize all scheduled and Unscheduled Shut Downs
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Collecting Failures for Shutdown
= Inspection Cut off time
Area
or P
lant
Shu
tdow
n/
Turn
arou
nd
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•Equipment Number and Equipment Name•Bill of Materials•Inventory Record Accuracy (IRA)•Work Order History•Condition Monitoring History•Standard Job Plans
Technical Database & Spare Parts
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Your Store Room?
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Your Store Room?
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Root Cause Failure Analysis
TO
Root Cause Problem Elimination
Record and Analyze
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Morning meeting: Motor tripped out causing production loss!
Maintenance Operations
Mechanical E / I
Electrical Instrumentation
WHO
Root Cause Problem Elimination – is not
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Results Oriented Reliability and Maintenance
Most OrganizationsKNOW
What to do
Best OrganizationsDo it.
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Do Work
Even with good skills, people can not be more productive than the system they work in allows them to be.
People’s performance is often limited -not so often by their skills - but more often by the system they work in.
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Reliability and Maintenance Improvement Process
It is the responsibility ofMANAGEMENT
to develop, institute and continuously improve systems and
procedures.
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PRODUCTIVE or NOT?
Busy people are not necessary PRODUCTIVE
PRODUCTIVE people are busy with the Right Thing.
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- Maintenance Crafts People?- Spare Parts Management?- Project Engineers?- Maintenance Managers?- Operation Managers?
You do not get what you ask for.You get what you recognize.
How do you recognize (reward) work done by?
Recognition
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Designate some of your resources to PM
Management team
Supervisor
Front Line Supervisor
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We have created lubrication standards, alignment standards,
and inspection routes,But they aren’t used in the plant
5% creating documentation95% get people to use it
Many knows howBest performers do it
Engineers
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Workforce
Workload?
Time
Effo
rt h
ours
1
2
3
“The Mountain” – Management team
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$100$102
$79.00
$161
$111
313,893
299,000292,000281,209
347,085
$40
$60
$80
$100
$120
$140
$160
$180
0 2 5 8 11
185,000
235,000
285,000
335,000
385,000
Reactive- Run to failure- Fix when broke- Very unpredictable
Preventive Maintenance done at predetermined intervals to reduce likelihood of failure
Predictive Measured and monitored against standards i.e. - vib. analysis - thermography - tribology - ultrasonic
Condition Based Know equipment condition Focus on corrective actions Optimize economic life of equipment, tanks, vessels Information integration
Reliability Centered Optimize all maintenance, engineering, and operational techniques to meet predetermined equipment reliability goals and performance standards
Production Tons
Maintenance Cost per Ton
Manufacturing Reliability Evolution at Irving Pulp and PaperManufacturing Reliability Evolution at Irving Pulp and Paper
Years
Results Oriented
Reliability and Maintenance
Consulting and Training
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Selling Maintenance to Management
Reliability
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Revenuefrom sales
-VariableCosts
Contribution
FixedCosts
- Results
•Sold and deliveredQuality Production
Volumex
Price
•Raw Material•Energy•Media
•Contractors•Maintenance material?
•Salaries•Financial costs
•Depreciation•Rent/leasing
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Revenue from sales$ 300.000,000
-Variable Costs$ 190,000,000
Contribution$ 110,000,000
Fixed Costs $ 92,000,000
-Operating
Results$ 18,000,000
•88% Overall Production Reliability
•500,000 tons/yearX $ 600/ton
•500,000 tons/yearX $ 380/ton
•Salaries•Financial costs
•Depreciation•Rent/leasing$92,000,000
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Revenuefrom sales
$300,000,000
-VariableCosts
$190,000,000
Contribution$110,000,000
FixedCosts
$92,000,000
-Operating
Results$18,000,000
/LiquidAssets
FixedAssets
+Total
Assets
ReturnOn Assets•Cash
•Account Receivable•Finished goods
•Buildings•Equipment•Material •Product in Process
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Revenuefrom sales
$300,000,000
-VariableCosts
$190,000,000
Contribution$110,000,000
FixedCosts
$92,000,000
-Operating
Results$18,000,000
/LiquidAssets
75,000,000
FixedAssets
280,000,000
+Total
Assets355,000,000
ReturnOn Assets
5.1%•Cash•Account Receivable•Finished goods
•Buildings•Equipment•Material •Product in Process
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Revenue from sales$ 320,500,000
-Variable Costs$ 200,250,000
Contribution$120,250,000
Fixed Costs $ 92,000,000
-Operating
Results$ 28,250,000
•94% Overall Production Reliability
•534,000 tons/yearX $ 600/ton
•534,000 tons/yearX $ 375/ton
•Salaries•Financial costs
•Depreciation•Rent/leasing$19,000,000
Maintenance costs reduced from $45 to $40/ton
Increase Reliability 6% from 88% to 94%
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Revenuefrom sales
$320,500,000-
VariableCosts
$ 200,250,000
Contribution$120,250,000
FixedCosts
$92,000,000
-Operating
Results$28,250,000
/Liquid Assets$ 75,000,000
Fixed Assets$ 280,000,000
+Total Assets$355,000,000
ReturnOn Assets
8.0%•Cash•Account Receivable - Debt•Finished goods
•Buildings•Equipment•Material •Product in Process
Increase Reliability 6% - ROI
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Revenuefrom sales
$352,440,000
-VariableCosts
$200,250,000
Contribution$152,190,000
FixedCosts
$92,000,000
-Operating
Results$60,190,000
/Liquid Assets$ 75,000,000
Fixed Assets$ 280,000,000
+Total Assets$355,000,000
ReturnOn Assets
17.0%•Cash•Account Receivable - Debt•Finished goods
•Buildings•Equipment•Material •Product in Process
Market price Increases 10% AND 6 % Reliability
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Accounting