1. Value Driven Maintenance Discover The Hidden Treasure In Your Organization Mark Haarman, Managing Partner Birmingham, 18 April 2012

2. Copyright Mainnovation 2011 2 Agenda 1. Maintenance Dilemma 1. Maintenance Dilemma 2. Value Of Maintenance 2. Value Of Maintenance 3. Most Valuable Maintenance Organization 3. Most Valuable Maintenance Organization 4. Continuous Improvement 4. Continuous Improvement

3. Copyright Mainnovation 2011 3 Importance of Maintenance is Still Neglected Each management will tell you that maintenance is important “Without maintenance we will have no production and no safe working facilities” However, in economic downtimes maintenance is primarily seen as cost center Maintenance manager is not able to show the added value of maintenance....... because he/she does not speak the language of the board With all consequences as such

4. Copyright Mainnovation 2011 4 Value Driven Maintenance ® (VDM) VDM is developed by Mainnovation in close cooperation with leading maintenance organizations from different industries VDM makes the economic added value of maintenance quantifiable and supports the priority setting VDM facilitates the development of the Most Valuable Maintenance Organization (MVMO)...... and makes maximum use of proven best practices and is fully embedded in leading EAM systems

5. Copyright Mainnovation 2011 5 Companies Using VDM Ports & Roads Manufacturing Oil & Chemicals Life Sciences Water Public Transport Energy & Utilities Paper & Pulp Marine Food & Beverages

6. Copyright Mainnovation 2011 6 Agenda 1. Maintenance Dilemma 1. Maintenance Dilemma 2. Value Of Maintenance 2. Value Of Maintenance 3. Most Valuable Maintenance Organization 3. Most Valuable Maintenance Organization 4. Continuous Improvement 4. Continuous Improvement

7. Copyright Mainnovation 2011 7 Maintenance Value Drivers

8. Copyright Mainnovation 2011 8 Case - IFF Leading company in flavors and fragrances European production centre in Tilburg, The Netherlands Company data: Replacement asset value = € 105 M Technical availability = 87% EBITDA = € 40 M Maintenance costs = € 2.8 M SHE-factor = 1.0 Value MRO inventory = € 1.1 M Leading company in flavors and fragrances European production centre in Tilburg, The Netherlands Company data: Replacement asset value = € 105 M Technical availability = 87% EBITDA = € 40 M Maintenance costs = € 2.8 M SHE-factor = 1.0 Value MRO inventory = € 1.1 M € 50 M € 12 M € 1 M € 0

9. 9 Case - BP

10. Copyright Mainnovation 2011 10 Agenda 1. Maintenance Dilemma 1. Maintenance Dilemma 2. Value Of Maintenance 2. Value Of Maintenance 3. Most Valuable Maintenance Organization 3. Most Valuable Maintenance Organization 4. Continuous Improvement 4. Continuous Improvement

11. Copyright Mainnovation 2011 11 Maintenance Competences

12. Copyright Mainnovation 2011 12 Measure Performance with Control Panel

13. Copyright Mainnovation 2011 13 Benchmark Performance

14. Copyright Mainnovation 2011 14 Online Benchmarking With myVDM.com

15. Copyright Mainnovation 2011 15 Case - GlaxoSmithKline

16. Copyright Mainnovation 2011 16 Maximum Use of Proven Best Practices RCM RBI SLA OEE Supply Chain Integration Supply Chain Integration TPM Condition Monitoring Condition Monitoring Operator Maintenance Operator Maintenance Asset Based Costing Asset Based Costing

17. 17 Processes, People & IT

18. Copyright Mainnovation 2011 18 VDM Process Map 1.1 Plan equipment performance 1.2 Monitor equipment performance 1.3 Analyze performance losses 2.1 Manage PM strategy 2.3 Manage PM schedules and task lists 2.2 Identify critical spares 2.4 Evaluate PM strategy 3.1 Collect maintenance related SHE- legislation 3.2 Translate SHE- legislation in PM strategy 3.3 Measure SHE factor and performance 4.1 Budget maintenance costs 4.2 Monitor maintenance costs 4.6 Claim damages 4.3 Analyze maintenance costs 4.5 Claim warranties 5.2 Prepare work orders 5.4 Schedule work orders 5.3 Manage work permits 5.5 Issue work orders 5.1 Receive notifications 5.6 Manage project 6.1 Execute maintenance 6.2 Register work order results 7.7 Create purchase requests 7.8 Review proposals 7.10 Send purchase orders 7.11 Match invoices 7.12 Manage suppliers 7.9 Manage frame agreement 7.2 Monitor inventory value 7.1 Receive and stock spares 7.5 Manage catalogue 7.6 Transport spares 7.4 Count inventory 7.3 Issue spares 8.1 Develop outsourcing strategy 8.2 Supervise contractor 9.1 Manage Skill profiles 9.2 Manage personal certificates 9.3 Manage workforce capacity 9.4 Register 10.1 Manage equipment data 10.3 Manage drawings and manuals 10.4 Collect real time condition data 10.2 Manage equipment permits 9.5 Calibrate tools 4.4 Issue investment request

19. Copyright Mainnovation 2011 19 Embed Processes in IT and Organization

20. Copyright Mainnovation 2011 20 Case - Volvo Cars Volvo Cars manufactures cars in 5 plants in Sweden and Belgium Volvo Cars is well known because of its innovative maintenance approach and TPM awards After years of focus on Asset Utilization Volvo Cars wanted a maintenance model that helped them to find the right balance between uptime and costs Volvo has adopted VDM as their standard maintenance management philosophy In 2005 they started with the implementation of standardized VDM work processes: –based on internal and external best practices –fully supported by their Maximo system 2010: 50% cost reduction on biggest plant

21. Copyright Mainnovation 2011 21 Agenda 1. Maintenance Dilemma 1. Maintenance Dilemma 2. Value Of Maintenance 2. Value Of Maintenance 3. Most Valuable Maintenance Organization 3. Most Valuable Maintenance Organization 4. Continuous Improvement 4. Continuous Improvement

22. Copyright Mainnovation 2011 22 Continuous Value Improvement Growing in professionalism means creating value When realistic achievable level of professionalism is reached, the value potential is utilized Automatically, the secondary value driver becomes the dominant one MVMO needs to be redesigned based on the new core competences Without loosing the achieved level of professionalism of the other value drivers

23. Copyright Mainnovation 2011 23 Know Where You Are!

24. Copyright Mainnovation 2011 24 Case – Conagra Foods Leading Food Company in US with 100 plants With Conagra Performance System (CPS) towards World Class Maintenance VDM programm based on TPM and RCM: –Internal/external benchmarking –Standard work processes –Standard SAP EAM –Equipment Reliability Improvement Global and local performance management with Maintenance KPI Dashboard (VDM Inside) Built in leading Business Intelligence software (SAP Business Objects and IBM Cognos) and fully integrated with SAP EAM and Maximo

25. Copyright Mainnovation 2011 25 VDM Inside

26. Mainnovation Lange Geldersekade 8 3311 CJ Dordrecht www.mainnovation.com Guy Delahay MSc Managing Partner guy.delahay@mainnovation.com +31 (0) 6 51 55 45 45 Thank you! Mark Haarman | Managing Partner | mark.haarman@mainnovation.com | +31 621553313