Presentation is loading. Please wait.

Presentation is loading. Please wait.

Jan Frånlund Managing Director, SAMI Europe AB, Strategic Asset Management in Europe AB Chairman of the Swedish Maintenance Society, UTEK Chairman of the.

Similar presentations


Presentation on theme: "Jan Frånlund Managing Director, SAMI Europe AB, Strategic Asset Management in Europe AB Chairman of the Swedish Maintenance Society, UTEK Chairman of the."— Presentation transcript:

1 Jan Frånlund Managing Director, SAMI Europe AB, Strategic Asset Management in Europe AB Chairman of the Swedish Maintenance Society, UTEK Chairman of the EFNMS European Certification Committee of Maintenance Professionals Convenor of the CEN TC 319’s Working Group for the European Standard in Maintenance Management Box 10231, Stockholm, Sweden or The Return of the Investments in Maintenance for the benefit of the company The Return of the Investments in Maintenance for the benefit of the company

2 Establishing the critical maintenanceEstablishing the critical maintenance performance indicators you should be using The new European standardThe new European standard Improving your maintenance and reliabilityImproving your maintenance and reliability efficiency by using benchmarking Examples of applicationsExamples of applications

3 Which KPIs are mostindicative

4 Preventive maint. Corrective maint. Reinvestments Few functional disturb. Few failures The state of the assets AVAILABILITY MIN. DISTURBANCES QUALITY Direct hours Indirect hours Use of technical resources Direct costs Indirect costs External costs COSTS RESULTS USED RESOURCES The Measurement of the Results in Maintenance ACTIVITIESRESULTSEFFECT COSTSCOST EFFICIENCY RESULTS RESOURCES PRODUCTIVITY © Copyright Jan Frånlund 2002

5 ”That part of the total required time during which the technical assets should be possible to use, shall be as big as possible” In other words, you want to have highAVAILABILITY

6 Availability Reliability Maintainability Supportability Seldom a down state of the item Simple and fast maintenanceactivities The right resources at the right place at the right time The item is available for use

7 © Copyright Jan Frånlund 2007 ReliabilitySupportability Maintainability Design Production Maintenance 70 % 20 % 10 % 70 % 10 % 20 % 10 % 20 % 70 % What has the biggest influence upon the result? Availability

8 BusinessOrientedResults in the Maintenancefunction

9 Some Basic Concepts Business goals drive decisions regarding the use and care of equipment assets Asset strategy is determined by operational considerations Maintenance and reliability are means to a defined goal, not an end in themselves The intent is to optimize the application of all resources, not just maintenance ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

10 Preventive maint. Corrective maint. Reinvestments Direct hours Indirect hours Use of technical resources Direct costs Indirec costs External costs COSTS RESULTS USED RESOURCES ACTIVITIESRESULTSEFFECT COSTSCOST EFFICIENCY RESULTS RESOURCES PRODUCTIVITY PROFIT COMPETITIVNESS COST- EFFECTIVENESS Return On Maintenance Investment MAINTENANCE MANAGEMENT COMPANY MANAGEMENT SHAREHOLDERS AND THE BOARD The Interests for the Maintenance Activities © Copyright Jan Frånlund 2003 Direct hours Indirect hours Use of technical resources Preventive maint. Corrective maint. Reinvestments Direct costs Indirect costs External costs Few functional disturb. Few failures The state of the assets AVAILABILITY MIN. DISTURBANCES QUALITY

11 Cost Effectiveness Return On Maintenance Investments (ROMI) Business Oriented Results OverallEquipmentEfficiency SafetyHealth EnvironmentProtection AssetPreservation © Jan Frånlund, Sweden 2003

12 CEN - Comité Européen de Normalisation EN © Jan Frånlund, Sweden 2007

13 Examples of Key Performance Indicators Economical Key Indicators E1 Total Maintenance Cost / Assets Replacement Value E3 Total Maintenance Cost / Output of operations E6 Availability related to maintenance / Total Maintenance Cost Technical Key Indicators T1 Total Operating time / Total Operating time + Down time due to maintenance T2 Achieved up time during required time / Required time T5 Number of injuries for people due to maintenance / Calendar time O1 Number of internal maintenance personnel / Total internal personnel O5 Planned and scheduled maintenance man hours / Total maintenance man hours available O8 Internal maintenance man hours used for continuous improvements / Total internal maintenance personnel man hours Organisational Key Indicators © Jan Frånlund, Sweden 2007

14 ČSPÚ PN-TTE GFIN The Member Societies AEM AFIM AIMAN APMI BEMAS DDV DVS GFIN HDO IAM KPY MEETA MFS NFPV NVDO UTEK SSU DOTS ČSPÚ PN-TTE MFA Spain France Italy Portugal Belgium Denmark Slovenia Germany Croatia Great Britain Finland Ireland Switzerland Norway The Netherlands Sweden Slovakia Serbia Czech Republic Poland Austria DOTS MFA

15 Results from the EFNMS workshops on maintenance indicators, by Tom Svantesson, based on contribution from 12 companies from Slovenia, Croatia, Ireland and Denmark.

16 Results from the EFNMS workshops on maintenance indicators, by Tom Svantesson, based on contribution from 8 companies from Slovenia, Croatia, Ireland and Denmark.

17 Today’s environment requires measurements that can predict Today’s environment requires measurements that can predict outcomes, not just measuring outcomes themselves outcomes, not just measuring outcomes themselves More importantly we must be able to assess the sustainability More importantly we must be able to assess the sustainability of new initiatives of new initiatives There has been a long debate over how maintenance process There has been a long debate over how maintenance process should be measured should be measured Two major types of indicators (quantitative) Two major types of indicators (quantitative) - Leading or Process - Leading or Process - Lagging or Outcome - Lagging or Outcome There is seldom consideration of how the actions of people There is seldom consideration of how the actions of people relate to change relate to change Some perspectives upon today’s situation © Copyright SAMI Europe AB 2006

18 Establishing an Effective Measurement System Is Fundamental to Improving the Maintenance Management Process ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

19 Maintenance Management Leading Indicators ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

20 There’s A System To This… ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

21 Gauging Work The Management Process Proactive Work Capacity index (PWCi) PWCi = (Schedule Compliance) x (Resource Load) x (Wrench Time) World class levels would be: –PWCi (World Class) = (0.90) x (0.90) x (0.65) = 0.53 This index should be calculated weekly and trended over time ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

22 Benchmarking Against Industry Leaders To be as good as … or To be better than …

23 Is maintenance efficiently executed? Many companies say that the maintenance activity is under control and ok. Our experience indicates something else. Following is quite typical: –Half of the work orders should be executed a.s.a.p. –Most of the work is reactive –Work planning is done after issuing the WO (work order) to the technician (… our technicians are skilled and trained. They know what they are doing …) –PM is inefficient (100% WOs issued out to techs  60% signed off as having been done  30%actually done) –Typical case: complex production environment with PM tasks. After study 50% were revised, 40% were removed, 10% left intact. Results: critical failures -90%, reworking after corrective maintenance -63%, work requests -80% as result of better targeted PM ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

24 Company Team Work for World Class achievements Company Team Work for World Class achievements The Basic Activities in place and in proper use Analytical Procedures for Betterment in place and in proper use Changes in behaviours for the Future The Leading Star The Leading Star What is the Goal?

25 The SAMI Asset Healthcare Triangle Maintenance of the asset for best performance

26 The fundamental activities for the basic maintenance function This includes the development, implementation and sustainability of the basic activities to achieve fully control of the maintenance function

27 Next step of development This step consists of development, implementation and sustainability of such activities which will allow control of the assets

28 ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

29 Maturity Ranking* (Stages 1-3 excerpted from Asset Healthcare) ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

30 Company Team Work for World Class achievements Company Team Work for World Class achievements The Basic Activities in place and in proper use Analytical Procedures for Betterment in place and in proper use Changes in behaviours for the Future The Leading Star The Leading Star What is the Goal?

31 There are two important facts in benchmarking: 1. The same definitions 2. Fully comparable data

32 The European Standard in Maintenance Terminology CEN EN 13306

33 MAINTENANCE Preventive MaintenanceCorrective Maintenance DeferredImmediate - Inspecting - Measuring - Controlling - Cleaning - Lubrication - Coating - Adjustment - Replacement - Cleaning - Lubrication - Coating - Adjustment - Joining together - Replacement No actions for the moment Condition monitoring Failure Preventing actions - Function check-out - Fault diagnosis Restoring and/or Repair actions - Function check-out Before a detected faultAfter a detected fault Scheduled, continuous or on request Condition Based Maintenance Predetermined Maintenance Scheduled Condition OK? Yes No Jan Frånlund, 2000

34

35 CEN - Comité Européen de Normalisation – EN © Jan Frånlund, Sweden 2007

36

37 Do we have the same philosophy

38 It would be nice to achieve significant betterments achieve significant betterments regarding the amount of quality outputs regarding the amount of quality outputs from the assets from the assets get betterments that really last for the future get betterments that really last for the future get 30% - 50% better profit per year get 30% - 50% better profit per year have a situation where all the efforts have a situation where all the efforts to achieve these results are already to achieve these results are already paid for within a year paid for within a year

39 Isthatpossible

40 Strategic Asset Management Benefits An Asset Management Strategy can produce a 20% - 50% reduction in Asset Healthcare cost and a 5% - 20% increase in throughput, with no capital investment. Regulatory Compliance is assured and product deviations are minimized. Morale is improved for employees who learn to work in a proactive culture and become proud of their achievement. Relations with owners, regulatory agencies, banks, insurers, and unions are improved. ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

41 Arepeopleready

42 42 Nowadays more and more of the top management teams of the companies are beginning to understand that Strategic Asset Management is NOT AN OPTION BUT A NECESSITY if one want to be successful and competitive in the future ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

43 Someachievedresults

44 Process Indicators--Work Management System Benefits LABOR UTILIZATION % PLANNED WORK SCHEDULE ATTAINMENTREACTIVE WORK PM/TOTAL RATIOPM COMPLIANCE

45 Shell Petroleum Case Study ©2006 SAMI Europe AB–Proprietary and Confidential SAMI Realized annualized Operating Expense Reduction of $30M (30%) to date Created production increase of 17.0 M BOE, valued at more than $600,000,000 at today’s prices

46 Shell Business Case Realization Chart ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

47 SASOL Synfuels Case Study ©2006 SAMI Europe AB–Proprietary and Confidential SAMI Results to date: –Material cost reduced –Overtime reduced 50% –Emergencies reduced 60% –Cost reduced 59 MM Rand –Production increased 49 MM Rand

48 What is thisbettermentprocess all about

49 Strategic Asset Management An integrated set of processes that systematically derive the highest value from plant assets, through a consistent philosophy, plans and objectives, and co-operative involvement by everyone in the plant. ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

50 Right Capacity Right Production Right Maintenance Right Logistics Company Management, Designers & Project managers Production Management Maintenance Management Logistics Management AssetManagement

51 The SAM Model Strategic Asset Management Ownership / Development / Empowerment ENABLE LEAD Managing System Strategic PlanningInformation Management Capacity Development & Disposition EXECUTE Operations Management Asset Healthcare Management Logistics Management Capacity Development & Disposition Production Management Asset Healthcare Management Logistics Management ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

52 The SAMI Capacity Triangle Having the right asset for the purpose ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

53 The SAMI Production Triangle Using the asset the right way for the purpose it is intended ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

54 The SAMI Logistics Triangle Supplying the asset the asset ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

55 SAM Model Functional Pyramid ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

56 56 Strategic Asset Management is a completely alignment of resources to achieve the business goals of the organisation at the lowest cost. Strategic Asset Management is a completely alignment of resources to achieve the business goals of the organisation at the lowest cost. ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

57 Give a man a fish, feed him for a day……… Teach him to fish & feed him for a lifetime. Get betterments that really last for the future ©2006 SAMI Europe AB–Proprietary and Confidential SAMI

58 Thank you for listening ! Any Questions ?


Download ppt "Jan Frånlund Managing Director, SAMI Europe AB, Strategic Asset Management in Europe AB Chairman of the Swedish Maintenance Society, UTEK Chairman of the."

Similar presentations


Ads by Google