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Today\'s best benchmarking tool; The Scoreboard for Facilities Management Excellence is explained by creator Ralph W "Pete" Peters. He vividly explains the process so that you can use it and like NIKE says, "JUST DO IT! n audit of your current maintenance operation on your own with minimal 3rd party support.
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SESSION NO.: R4.39 Thursday, MARCH 18, 2010 ROOM NO.: 339
Successful Facilities Management Auditing &Management Auditing &
BenchmarkingBenchmarking
Ralph W “Pete” PetersRalph W. Pete PetersFounder-President-Coach
The Maintenance Excellence InstituteRaleigh and Oak Island NCRaleigh and Oak Island NC
www.PRIDE-in-Maintenance.com
Key Session ObjectivesKey Session Objectives1. Review $’s that The Scoreboard for Facilities
Management Excellence benchmarking process can enable
2. Review the strategy for Continuous Reliability Improvement (CRI).p ( )
3. Review the process to create The Reliability & Maintenance Excellence IndexMaintenance Excellence Index
4. Define “What is PRIDE in Maintenance?”
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 2
Terms: Top Leader Maintenance Leader Craft Leader
Different Types of Benchmarking
1. Benchmark: A point of reference for a measurement. Surveying benchmarks aremeasurement. Surveying benchmarks are special-purpose "monuments", typically small concrete obelisks, approx. 3 feet tall and 1 foot atconcrete obelisks, approx. 3 feet tall and 1 foot at the base, set permanently into the earth.
2 Strategic Benchmarking Impro ing2. Strategic Benchmarking: Improving performance by examining successful approaches used by high performersapproaches used by high-performers.
Example The Scoreboard for Facilities Management ExcellenceThe Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 3
Management Excellence
Different Types of Benchmarking (cont)
3. Global Benchmarking: Applies to the total maintenance process and overall best practices for the “business of maintenance”
Example The Scoreboard for Facilities Management Excellence
4. Internal Benchmarking: Involves partners within same organization (multiple sites). Also benchmarking at shop level using
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 4
The Reliable Maintenance Excellence Index
Benchmarking Your Maintenance OrganizationThe Scoreboard
for Facilities Management Excellence
The ReliableThe Reliable Maintenance
Excellence Index
We Will Review These
Two Benchmarking Tools
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 5
Maintenance Around the World
REMEMBER: MAINTENANCE IS FOREVER!!
Continuous Process
Fleet Operations
Discrete
Scope of
Continuous ProcessIndustries
DiscreteManufacturing
Pl MMaintenance
Plus ManyMore Types of Maintenance
Facility Management Operations Healthcare
OperationsPublic Utilities
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 6
…. Public Utilities
Maintenance??
Burj Al Arab: A “7” Star Hotel
Russian Airport Control Tower-
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 7
pKamchatka Peninsular
Burj Khalifa Tower formerly known as
Burj Khalifaformerly known as
Burj Dubai prior to its inauguration, is a
skyscraper in Dubai, UAE and is the tallest man made structure ever built, at 828 m
(2,717 ft).
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 8
Today’s Very Real Challenges
Challenge One: Maintain existing f ili i d i i f dfacilities and equipment in safe and reliable conditions.
Challenge Two: Improve, enhance and g p ,then maintain existing physical assets to achieve environmental, regulatory , g ylife safety/security standards & energy best practices.
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 9
p
Today’s Very Real Challenges
Challenge Three: Enhance, renovate and add to existing physical assets using capital funds and then maintain the additions.
Challenge Four: Commission new gphysical assets and assume increased scope of work to maintain plus more p pwork from Challenges One, Two and Three as assets get older, older & older
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 10
g ,
Face These Four Very Real Maintenance Challenges With the Facts!g
Add staff ??? Not unless you have these facts!1. Know your “Total Maintenance Requirements”1. Know your Total Maintenance Requirements2. Top Leaders also know your Total Maintenance
Requirements & know the factsq3. Top Leaders know the costs & risks of deferred
maintenance. (DGWMC is about gambling & stats)4. Document productivity of current resources
Other Options???Use more contractors? Improve asset reliability?Eliminate a reactive strategy –GO PRO-active!Improve craft productivity? Increase Wrench Time
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 11
Improve craft productivity? Increase Wrench Time Work smarter, not harder? Or Work smarter and harder?
Facing Today’s Maintenance ChallengesThe Bottom Line normally is this;
Assuming growth with little or no additions in staffg g
Real Maintenance LeadersMust Discard the “Status Quo” Forget the Past!Must Discard the Status Quo - Forget the Past!Must Improve the “business of maintenance” Must implement Best Practices such as;Must implement Best Practices such as;
Effective planning, estimating and scheduling Improved Preventive Maintenance/Predictive pMaintenance (PM/PdM) ………etc/etc/etc
Lead Maintenance Forward as a Business;
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 12
YOUR OWN PER$ONAL BUSINE$$
What is Your Answer to This Question?
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 13
Facing Today’s Maintenance Challenges
Conduct Scoreboard for Facilities ManagementgExcellence
Assessment
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 14
Know Your Current State of Maintenance
“The Reliability Pyramid” shown on the next page illustrates the five stages of maintenance developmentillustrates the five stages of maintenance development. Where are you?Stage 1: Daily Maintenance & a desire to continuously improve &Stage 1: Daily Maintenance & a desire to continuously improve & not gamble with maintenance costs.
Stage 5: Achieving reliability and maintenance excellence with the g g ygoal of “total operations success”.
Get Stage 1 Right! Moving beyond Stage 1 will achieve significant b fit Fi t t k h !benefits. First you must know where you are!
Define your current “state of maintenance” via The Scoreboard for Facilities Management Excellence assessment processfor Facilities Management Excellence assessment process.
15
The Reliability PyramidReliability
and Maintenance
STAGE 5Operational ExcellenceAssure alignment of financial operations, corporate leadership sales and marketing and customers
Total Operations
ExcellenceOverall
UnitEffectiveness
EquiptSimplify/
Standardize
ConcurrentEngrn.
EquiptAcqn.
STAGE 4Engineered ReliabilitySystematically eliminate sources of
i l f il
leadership, sales and marketing, and customers Success
Courtesy of Strategic AssetReliability
Focus
gLife CycleCost Anal.
Acqn.ReliabilityAnalysis
Craft
Maintenance /OperationsIntegration
Externalversus
Internal
TPMOperator
Performed
STAGE 3Organizational ExcellenceCreate the environment to maximize
potential system failure Strategic Asset Management
CraftFlexibility
Integration Benchmarks Maintenance
Condition Monitoring
Failure PredictionFailure Mode Analysis
ProactiveMaintenanceSTAGE 2
Proactive MaintenanceG i t l f i t
C eate t e e o e t to a ethe staff contribution
PdM / CMMS Integration
Craft SkillsEnhancement
EquipmentHistory
PreventiveMaintenance
Work Management Processes
CMMS SystemSTAGE 1
Daily Maintenance: Gain
Gain control of equipment condition
16
Work Initiation /Prioritization
Planning and Scheduling
Work Execution & Review
MRO Materials Management
Daily Maintenance: Gain control of the work
Introducing The Scoreboard for Facilities Management Excellence
Other TMEI Scoreboards for Excellence Include:
g
Other TMEI Scoreboards for Excellence Include:Scoreboard for Maintenance Excellence (Manufacturing)Scoreboard for Fleet Management ExcellenceScoreboard for Fleet Management ExcellenceScoreboard for Healthcare Facilities Mgmt ExcellenceScoreboard for Golf Course Maintenance ExcellenceScoreboard for Golf Course Maintenance Excellence
17
200+ Scoreboard Assessments200 plus Scoreboard Assessments
18
The Scoreboard for Facilities Management Excellence
Recognized as Today’s Most Complete and Comprehensi e Assessment Tool
g
Comprehensive Assessment Tool– 27 Best Practice categories & 300 evaluation items– Defines your baseline as to “where you are”– You could compare your baseline to other
i tiorganizations– Comparing to others not important– It’s about what you do to “move the ball” – Provides the path forward for reliability &
i t llmaintenance excellence.19
The Scoreboard for Facilities Management Excellence
Proven as Today’s Most Complete and Comprehensi e Assessment Tool
g
Comprehensive Assessment Tool.– Used by TMEI for over 300 + assessments & by
over 4 000 worldwide organizations as an internalover 4,000 worldwide organizations as an internal benchmarking toolAvailable at www Pride in Maintenance com– Available at www.Pride-in-Maintenance.com
– Free with purchase of Maintenance Benchmarking & Best Practices (MBBP) from McGraw-Hill& Best Practices (MBBP) from McGraw-Hill &TMEI. (Chapter 7, page 122)
– MBBP is really 3-4 books in one as compared toMBBP is really 3 4 books in one as compared to small books by other authors .
20
CATEGORY The Scoreboard for Facilities Management ExcellenceCategory Descriptions (Part 1)
Evaluation Items
Total Points
in Category
A. The Organizational Culture and PRIDE in Maintenance 5 50
B. Facilities Organization, Administration and Human Resources
10 100
C. Craft Skills Development 10 100
D. Facilities Management Supervision/Leadership 10 100E. Business Operations, Budget and Cost Control 15 150F Work Management and Control: Maintenance and Repair 10 100F. Work Management and Control: Maintenance and Repair
(M/R)10 100
G. Work Management and Control: Construction and Renovation (C/R)
5 50
H. Facilities Maintenance and Repair Planning and Scheduling
15 150
I. Facilities Construction and Renovation Planning /Scheduling and Project Management
10 100/Scheduling and Project Management
J. Facilities Planning and Property Management 10 100
K. Facilities Condition Evaluation Program 5 50
21
L. Facilities Storeroom Operations and Internal MRO Customer Service
15 150
M. MRO Materials Management and Procurement 10 100
CATEGORY The Scoreboard for Facilities Management ExcellenceCategory Descriptions (Part 2 Continued)
Evaluation Items
Total Points in Category
N Preventive Maintenance and Lubrication 20 200N. Preventive Maintenance and Lubrication 20 200
O. Predictive Maintenance and Conditioning MonitoringTechnologies
10 100
P Building Automation and Control Technology 5 50P. Building Automation and Control Technology 5 50
Q. Utilities Systems Management 10 100
R. Energy Management and Control 10 100
S F iliti E i i S t 10 100S. Facilities Engineering Support 10 100
T. Safety and Regulatory Compliance 15 150
U. Security Systems and Access Control 10 90
V. Facilities Management Performance Measurement 15 150
W. Computerized Maintenance Management System (CMMS)and Business System
15 150
X. Shop Facilities, Equipment, and Tools 10 100
Y. Continuous Reliability Improvement 10 100
Z. Grounds and Landscape Maintenance 15 150
22
ZZ. Housekeeping Service Operations 15 150
Total Evaluation Items and Points 300 3000
23
Focus on Your TARGETSTaking Aim at Recommendations to Gain Excellence from Training Success
24
The Goal & The CommitmentThe Goal: Implement and measure results of solutions we define by each Scoreboard assessment or during y gTrueWorkShop events.
The Commitment: We are committed to a long termThe Commitment: We are committed to a long term partnership for achieving measurable results.
To help continuously expand current successesTo help continuously expand current successesTo help implement our recommendations To document results & the value of our servicesTo become a valuable technical resource To have all client’s use maintenance for profit
25optimization.
Scoreboard Baseline RatingsTOTAL BENCHMARK
POINTRANGES
OVERALL SCOREBOARD RATING SUMMARY
AS O A SCO
BASELINE POINTS FOR EACH
EVALUATIONTHE BASELINE TOTAL SCORE
EVALUATIONITEM
90% to 100% of Total Points EXCELLENT: 2700 to 3000 Total Points 10
80% to 89% of Total Points VERY GOOD: 2400 to 2699 Total Points 9
70% to 79%70% to 79% of Total Points GOOD: 2100 to 2399 Total Points 8
60% to 69%of Total Points AVERAGE: 1800 to 2099 Total Points 7
50% to 59% of Total Points BELOW AVERAGE: 1500 to Less than
1799 Total Points6
26
49% or Less of Total Points POOR: 1499 Total Points or less 5
Your Return on Maintenance Investment
Financial Results Customer Satisfaction Results
• 5% to 20% increase in capacity/throughput
• 20% to 30% increase in craft
• 10% to 30% increase in asset availability/reliability
• 10% to 20% reduction in stock outs20% to 30% increase in craft productivity/wrench time
• 10% to 20% reduction in actual maintenance costs
• 10% to 20% reduction in stock outs• 20% to 30% greater inventory
accuracy and controlmaintenance costs
• 10% to 20% decrease in parts inventory & asset accountability
• 20% to 30% increase in planned work and schedule compliance
Fully implemented projects of this type provide a conservative range of Fully implemented projects of this type provide a conservative range of direct savings/benefits and gained value from 10% to 20% in annual direct savings/benefits and gained value from 10% to 20% in annual
maintenance and MRO materials costs. Most operations achieve significant maintenance and MRO materials costs. Most operations achieve significant measurable improvements in many key performance measures Also thismeasurable improvements in many key performance measures Also this
Fully implemented projects of this type provide a conservative range of Fully implemented projects of this type provide a conservative range of direct savings/benefits and gained value from 10% to 20% in annual direct savings/benefits and gained value from 10% to 20% in annual
maintenance and MRO materials costs. Most operations achieve significant maintenance and MRO materials costs. Most operations achieve significant measurable improvements in many key performance measures Also thismeasurable improvements in many key performance measures Also this
27
measurable improvements in many key performance measures. Also this measurable improvements in many key performance measures. Also this project will also provide important intangible benefits for employee project will also provide important intangible benefits for employee relations, attitudes and internal and external customer satisfactionrelations, attitudes and internal and external customer satisfaction..
measurable improvements in many key performance measures. Also this measurable improvements in many key performance measures. Also this project will also provide important intangible benefits for employee project will also provide important intangible benefits for employee relations, attitudes and internal and external customer satisfactionrelations, attitudes and internal and external customer satisfaction..
IntroductionIntroduction to
Continuous Reliability ImprovementContinuous Reliability Improvement
(CRI)(CRI)
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 28
Continuous Reliability Improvement
Conduct Scoreboard for Facilities ManagementgExcellence
Assessment
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 29
Continuous Reliability Improvement-CRI
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 30Develop Your Scoreboard for Facilities
Management Excellence
Continuous Reliability ImprovementCONTINUOUS RELIABILITY IMPROVEMENT
GOES BEYOND RCM AND TPM
Craft LaborS i ti T
Physical Assetand Equipment
Resources
Resources
Continuous
Synergistic TeamBased Resources
ContinuousReliability
ImprovementSpare Partsand MaterialResources
Craft Knowledgeand Technical
Skill Resources Resources
InformationResources and
CMMS
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 31
CMMS
Continuous Reliability Improvement
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 32
Continuous Reliability Improvement
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 33
Continuous Reliability Improvement
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 34
Continuous Reliability Improvement
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 35
Continuous Reliability Improvement
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 36
The Synergy of Team Efforts
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 37
The Synergy of Team Efforts
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 38
Today’s Maintenance Leader Must:
• Know “Where You Are”
•Know “Where You Want To Go”
• Have Strategic, Tactical or Operational Plans
• Have “Do It Now” Action Items
• Be a true Maintenance Leader
M f & lid l• Measure performance & validate results
• Apply CRI across total maintenance operation
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 39
….
Return on Maintenance Investment (ROMI)
Financial Results Customer Satisfaction Results
• 5% to 20% increase in capacity/throughput
• 20% to 30% increase in craft
• 10% to 30% increase in asset availability/reliability
• 10% to 20% reduction in stock 20% to 30% increase in craft productivity/wrench time
• 10% to 20% reduction in actual maintenance costs
outs• 20% to 30% greater inventory
accuracyactual maintenance costs• 10% to 20% decrease in parts
inventory value
y• 20% to 30% increase in planned
workMaintenance process improvement can provide direct savings/benefitsMaintenance process improvement can provide direct savings/benefitsMaintenance process improvement can provide direct savings/benefitsMaintenance process improvement can provide direct savings/benefitsMaintenance process improvement can provide direct savings/benefits Maintenance process improvement can provide direct savings/benefits
and gained value from 10% to 20% in annual maintenance and MRO and gained value from 10% to 20% in annual maintenance and MRO materials costs. You can achieve measurable results in many areas. materials costs. You can achieve measurable results in many areas.
And you can provide important benefits for employee relationsAnd you can provide important benefits for employee relations
Maintenance process improvement can provide direct savings/benefits Maintenance process improvement can provide direct savings/benefits and gained value from 10% to 20% in annual maintenance and MRO and gained value from 10% to 20% in annual maintenance and MRO materials costs. You can achieve measurable results in many areas. materials costs. You can achieve measurable results in many areas.
And you can provide important benefits for employee relationsAnd you can provide important benefits for employee relations
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 40
And you can provide important benefits for employee relations, And you can provide important benefits for employee relations, attitudes and both internal and external customer satisfaction.attitudes and both internal and external customer satisfaction.And you can provide important benefits for employee relations, And you can provide important benefits for employee relations, attitudes and both internal and external customer satisfaction.attitudes and both internal and external customer satisfaction.
Understanding Potential BenefitsWith a Net Profit Ratio of 5 Percent; the Potential for
Maintenance to Contribute to the Bottom Line
Maintenance Direct S i
Equivalent Sales R i d
Can be Significant
Savings Required$1 $20
$1,000 $20,000 $10 000 $200 000
A Profit of Requires Sales of
$10,000 $200,000$20,000 $400,000 $50,000 $1,000,000 $75 000 $1 500 000
Savings ofOffsets
Not Having
in Sales$75,000 $1,500,000
$100,000 $2,000,000 $150,000 $3,000,000 $175,000 $3,500,000
Having…
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 41
$ , $ , ,$200,000 $4,000,000
Developing Your Maintenance Excellence Strategy
• Define “where you are” with a Scoreboard for Facilities Management Excellence assessmentFacilities Management Excellence assessment
• Get third-party support for an objective benchmark assessmentbenchmark assessment
• Define your priorities for “where you want to go”• Develop potential direct & indirect benefits
• Gained value from increased uptimeG i d l f ft d ti it• Gained value from craft productivity
• Gained value from MRO materials management
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 42
management
Developing Your Maintenance Excellence Strategy
• Establish A Reliable Maintenance Excellence Index
NEXT
• Communicate maintenance goals with operations or customers and get their buy-in and support
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 43
• Ensure maintenance operation has buy-in as well
Develop a Reliable Maintenance Excellence Index
A Reliable Maintenance Excellence Index Must; • Identify key performance indicators that really matter
G i d l & t t• Gain consensus on agreed upon goals & targets • Define weighted value of the relative importance of each
performance indicator• Have metrics that validate projected benefits, gained value and
total operations success
Metrics Cover All 6 Maintenance Resources If Possible
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results44
The Reliable Maintenance Excellence Index
• The RMEI measures key resources that contribute to profit optimization greater customer service and moreprofit optimization, greater customer service and more effective facilities management;
• People resources; internal craft labor & outside contractorsp ;• Dollar resources; overall budget dollars of maintenance and
the customer • MRO parts and material resources• MRO parts and material resources• Planning resources and customer service• Critical assets; uptime, availability or OEE & reliability • Information resources; how data becomes true information
via effective CMMS• CMMS Benchmarking System
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results45
g y
A Reliable Maintenance Excellence Index Provides;
• A very powerful, one page Excel spreadsheet • 12-15 key metrics combined for a composite Total RMEI12-15 key metrics combined for a composite Total RMEI
Performance Value • A very “balanced scorecard” for the total facilities and y
maintenance process. • An ideal method for measuring Continuous Reliability
Improvement across a multiple operations & work units • Support to applying and measuring the impact of standard
b t tibest practices• Example: Maintenance planning & scheduling: We must
define results of an investment in a planner positions!!
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
define results of an investment in a planner positions!!
Developing Your Reliable Maintenance Excellence Index
Current MonthPerf
Baseline Perf. Level
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Weighted Value of
Each Metric
Developing Your Reliable Maintenance Excellence Index
All Perf. Goals
Are Met
So PerfSo Perf. Level Scores are All 10”s
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Developing Your Reliable Maintenance Excellence IndexStep Description The 10 Step Process for RMEI Development
A Performance Metrics
10 to 15 metrics are selected & agreed upon by the organization. Select metrics for total maintenance process + operational ones.p p
B Current Month
Performance
The actual monthly performance level for the metric . This value will also be noted in one of the incremental values blocks below the performance goal. This value will correspond to a value for F, the performance level scores which go from 10 down to 1the performance level scores which go from 10 down to 1
C Performance Goal
The pre-established performance goal for each of the RMEI metrics. For example, if the Current Month’s Performance is at the Performance Goal level, the performance level score for that goal
ill b 10 th iwill be a 10, the maximum score.
D Baseline Performance
The baseline performance level prior to start of RMEI performance measurement. Not always available. Use a 1-3 months performance average as a baseline after start of RMEI.g
E Current Performance
Score
Depending on the current month’s performance, a performance level score (F) will be obtained. This value then goes to the Current Performance Score row and serves as the multiplier for the (G) the Weighted Value of the Performance Metricthe (G) the Weighted Value of the Performance Metric
F Performance Level
Values from 10 down to one, which denotes the level of current performance, compared to the goal. If current performance achieves the predetermined goal, a performance value of 10 is
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
p g , pgiven. Each metric is broken down into incremental values from the baseline to the goal. Each incremental value in the column corresponds to a performance level value. This value becomes the Current Performance Score.
Developing Your Reliable Maintenance Excellence IndexStep Description The 10 Step Process for RMEI Development (cont)
G Weighted Value of the
The values along this row are the weighted value or relative importance of each of the metrics. These values are obtained via
Performance Metric
pa team process and a consensus on the relative importance of each metric that is selected for the RMEI. All of the weighted values sum to 100.
H Performance The Weighted Values (G) are multiplied by (E) the CurrentH Performance Value Score
The Weighted Values (G) are multiplied by (E) the Current Performance Scores to get the Performance Value Score (H).
I Total RMEI Performance
V l
The sum of the Performance Value Scores for each of the metrics and the composite value of monthly maintenance performance
ll RMEI t iValue on all RMEI metrics
J Total RMEI Performance Values Over
Location for tracking Total RMEI Performance Values over a number of months
Time
Important NotesImportant Notes1. The RMEI is a composite of key metrics, each with relative importance2. Each RMEI metric can be trended and linked to the monthly RMEI3 Th RMEI h ld b b l d h l i i
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
3. The RMEI should be balanced across the total maintenance operation4. Other metrics of lesser value can also be tracked.
21 Maintenance Performance Metrics to Consider for Your
Reliable Maintenance Excellence IndexPRIDE
Reliable Maintenance Excellence Indexwith-in-
MaintenanceGo For It @
PRIDE-in-Maintenance comPRIDE-in-Maintenance.com
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results51
# Performance Metric and Purpose Goal
1. % Overall Maintenance Budget Compliance: To evaluate 98%management of $ assets; Obtained from monthly financials
2. Actual Maintenance Cost per Unit of Production or (Maintenance Cost Per Square footage Maintained: To
TBD ( a te a ce Cost e Squa e ootage a ta ed oevaluate/benchmark actual costs against stated goals/baselines or against industry standards; Obtained from asset records and monthly CMMS WO file of completed WOs for the month. Obtained from production results and financial report Provides ideal support to ABCproduction results and financial report. Provides ideal support to ABCCosting practices
3. % Customer or Capital Funded Jobs Completed as S h d l d d ithi / 5% f C t E ti t
98%Scheduled and within +/- 5% of Cost Estimate: To measure customer service & $ assets plus planning effectiveness; Obtained from funded WO types from the CMMS WO files, comparing date promised to date completed and estimated cost to actual costdate promised to date completed and estimated cost to actual cost
4. % Other Planned Work Orders Completed as Scheduled: To measure customer service and planning effectiveness; Obtained from a query of all planned WO types in CMMS WO files and comparing date
95%
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results52
query of all planned WO types in CMMS WO files and comparing date promised to date completed. Could be expressed in % based on craft hours.
5. Schedule Compliance: To evaluate how effectiveness scheduling was 95%
# Performance Metric and Purpose Goal
in regards to executing to meet scheduled dates/time; Obtained from query of CMMS completed WO file where all scheduled jobs coded and their actual completion compared to actual planned completion date/time
6. % Planned Work Orders versus % True Emergency Work Orders: To evaluate positive impact of PM, planning processes and other proactive improvement initiatives (CRI,/RCM/etc); Obtained from a query of all true emergency WO types in CMMS WO files and comparing to total
80% to
85% Plannedof all true emergency WO types in CMMS WO files and comparing to total
WOs completed. Could be expressed in % based on craft hours.
Planned
7. % Craft Time to Work Order for Customer Charge Backs: To monitor TBDcraft resource Accountability for Internal Revenue Generation (or External); Obtained from a query of all WO types in CMMS WO files that are charged back comparing these craft hours to total craft hours paid
8. % Craft Time to Work Orders: To monitor overall craft resource accountability and to support internal revenue generation ; Obtained from a query of all WO types in CMMS WO files and summation of actual craft hours
100%
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
hours
9. % Craft Utilization (Actual Wrench Time): To maximize craft 60%
# Performance Metric and Purpose Goal
% Craft Utilization (Actual Wrench Time): To maximize craft resources for productive, value-adding work and to evaluate effectiveness of planning process; Obtained from a query of all craft hours reported to non craft work from CMMS time keeping WO files and summation of actual craft hours
to70%
summation of actual craft hours
10. % Craft Performance (Against Reliable Estimates for PM d l d k) T i i ft t l t
95%and planned work): To maximize craft resources, to evaluate planning effectiveness and also to determine training ROI; Obtained from completed WO file in CMMS
11. Craft Quality and Service Level: To evaluate quality and service level of repair work as defined by customer; Obtained from WO file in CMMS where all call backs are tracked and monitored via work control and
98% +
CMMS where all call backs are tracked and monitored via work control and planning processes.
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results54
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 55
The Overall Craft Effectiveness Factor (%)
CU: Craft Utili ti
CP: Craft Performance
CSQ: Craft Service
Utilization Performance Quality
56OCE = %CU x CP x CSQThe Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
12. Overall Craft Effectiveness (OCE): To evaluate cumulative positive 65%
# Performance Metric and Purpose Goal
Overall Craft Effectiveness (OCE): To evaluate cumulative positive impact of overall improvements to Craft Utilization (CU), Craft Performance (CP) and Craft Quality and Service Excellence (CQSE) in combination; Obtained from using results of measuring all three OCE Factors: a) Craft Utilization b) Craft Performance and c) Craft Quality andFactors: a) Craft Utilization, b) Craft Performance and c) Craft Quality and Service Excellence
13. % Work Orders with Reliable Planned Times: To measure planner’s effectiveness at developing reliable planning times; Obtained
70 % planner s effectiveness at developing reliable planning times; Obtained from completed WO file in CMMS where panning times are being established for as many jobs as possible by planner/supervisor
14 % Overall Preventive Maintenance Compliance: (C ld b b 100%14. % Overall Preventive Maintenance Compliance: (Could be by type asset, production department/location or by supervisory area): To evaluate compliance to actual PM requirements as established for assets under scope of responsibilities; Obtained from completed WO file in CMMS
100%
p p ; p
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 57
15 Gained $Value from Craft Utilization & Performance: To TBD
# Performance Metric and Purpose Goal
15. Gained $Value from Craft Utilization & Performance: To determine actual gained $ value of craft productivity gains as compared to original estimate and/or the initial baseline; Obtained only from using results of measuring two of the OCE Factors: a) Craft Utilization, b) Craft
TBD
Performance.
16. % Inventory Accuracy: To evaluate one element of MRO material management and inventory control policies; Obtained from cycle count
lt d ld b b d it t i t i
98%
results and could be based on item count variances or on cost variance
17. % or $ Value of Actual MRO Inventory Reduction: To evaluate another element of MRO material management against original
10%evaluate another element of MRO material management against original estimates and the initial baseline MRO inventory value; Obtained from inventory valuation summation at end of each reporting period
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
18 Number of Stock Outs of Inventoried Stock Items: To monitor actual ????
# Performance Metric and Purpose Goal
. stock item availability per demand plus to monitor any negative impact of MRO inventory reduction goals; Obtained from tracking stock item demand and recording stock outs manually or by coding requisition/purchase orders for the items not available per demand p
19.
$ Value of Direct Purchasing Cost Savings: To track direct cost savings from progressive procurement practices as another element of MRO materials management. Could apply to contracted services, valid benefits received from
f t ti t t d t d d i t
TBD
performance contracting, contracted storerooms, vendor managed inventory; Obtained via best method per a standard procedure that defines how direct purchasing savings are to be accounted for
20 Overall Equipment Effectiveness (OEE): World –class metric to evaluate 85%q p ( )cumulative positive impact of overall reliability improvements to Asset Availability A), Asset Performance (P) and Quality (Q) of output all in combination. (Similar to OCE above but for the most critical production assets); Obtained via downtime reporting process, operations performance on critical assets and the resulting quality of outputp , p p g q y p
21.
% Asset Availability/Uptime: To evaluate trends in downtime due to maintenance and the positive impact of actions to increase uptime; Obtained via downtime reporting process
TBD
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Many More Metrics Available
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The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Some Other Maintenance MetricsCategory Benchmark
Y l M i t C tYearly Maintenance Cost:
Total Maintenance Cost/Total Manufacturing Cost < 10-15%
Maintenance Cost/Replacement Asset Value of the Plant and Equipment < 3%
Hourly Maintenance Workers as a % of Total 15%
Planned Maintenance:
Planned Maintenance/Total Maintenance > 85%/
Planned & Scheduled Maintenance as a % of hours worked ~85-95%
Unplanned Down Time ~0%
Reactive Maintenance < 15%Reactive Maintenance < 15%
Run to Fail (Emergency + Non-Emergency) < 10%
Maintenance Overtime:
Maintenance Overtime/Total Company Overtime < 5%
Monthly Maintenance Rework:
Work Orders Reworked/Total Work Orders ~0%
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 61
Inventory Turns:
Turns Ration of Spare Parts > 2-3
Some Other Maintenance MetricsCategory Benchmark
Training:Training:
For at least 90% of workers, hours/year > 80 hours/year
Spending on Worker Training (% of payroll) ~4%p g g ( p y )Safety Performance:
OSHA Recordable Injuries per 200,000 labor hours < 2Housekeeping ~96%
Monthly Maintenance Strategies:Monthly Maintenance Strategies:Preventive Maintenance: Total Hours PM/Total Maintenance
Hours Available ~20%
Predictive Maintenance: Total Hours PdM/Total Maintenance ~50%Hours Available ~50%
Planned Reactive Maintenance: Total Hours PRM/Total Maintenance Hours Available ~20%
Reactive Emergency: Total REM/Total Maintenance Hours 2%
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Reactive Emergency: Total REM/Total Maintenance Hours Available ~2%
Reactive Non-Emergency: Total RNEM/Total Maintenance Hours Available ~8%
> 97%
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Plant Availability: Available Time/ Maximum Available Time > 97%
Contractors: Contractors Cost/Total Maintenance Cost 35-64%
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 63
What is PRIDE in Maintenance?P l R ll I d i D l i E llPeople Really Interested in Developing Excellence
In
MaintenanceMaintenance
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P lPeople:It is About You and Your People (Technicians,
Engineers Supervisors Contractors StoreroomEngineers, Supervisors, Contractors, Storeroom Staff) and Top Leaders as well!
What is PRIDE in Maintenance?
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What is PRIDE in Maintenance?
Really:Really: It is Wanting, Desiring and Being Very
Committed to Improving the TotalCommitted to Improving the Total Maintenance Process.
What is PRIDE in Maintenance?
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 66
What is PRIDE in Maintenance?
Interested in:Interested in: Something of Importance That We Want to Improve
or Change for the Good of Ourselvesor Change for the Good of Ourselves
and
Our Organization & CustomersOur Organization & Customers
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What is PRIDE in Maintenance?
Developing:Developing: Learning About and Building the Skillsfor Implementing Today’s Best Practices Andfor Implementing Today s Best Practices. AndDeveloping Our Most Importance Resource;
Our PEOPLE!
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What is PRIDE in Maintenance?
Excellence: Achieving Reliability and Maintenance Excellence to Achieve Total Operations Success . Success of the Total Operation is “THE GOAL”
So What is PRIDEPRIDEin
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 69
Maintenance to You?
Please Remember:As a Maintenance LeaderAs a Maintenance Leader,
You Must Set the Example with PRIDEPRIDE
in Maintenance
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 70
Remember You Must Be a Salesman Too!
Maintenance LeadersMaintenance Leaders“Remember
That Nothing Happens Until Somebody SellsSomething!”
Mr Red Motle Said This a Long Time Ago
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 71
Mr. Red Motley Said This a Long Time Ago
Our Proven Approach is the Foundation of the new McGraw-Hill
Book By TMEI FounderRalph W. “Pete” Peters
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Additional MaterialsAdditional Materials
Results from an Assessment of the T t l M i t O tiTotal Maintenance Operation
TMEI Case StudiesTMEI Case Studies
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 73
Assessment Deliverables to Achieve Validated Results
1. Maintenance Excellence Strategy Team chartered to facilitate world-class maintenance
2. A World-class maintenance strategy defined by The Scoreboard for Facilities Management Excellence with a recommended Plan of Action for Implementationrecommended Plan of Action for Implementation
3. An in-depth assessment of current maintenance practicespractices
4. Recognition of current successes 5. Develop and present PRIDE-in-Maintenance sessions to
crafts work force and other staff6. Recommendations for improvement to the current
i t ll ti f CMMS
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installation of CMMS
Assessment Deliverables to Achieve Validated Results
7. Implement The CMMS Benchmarking System to measure CMMS status, improvement actions & define functionality gaps.
8. Results previewed with Maintenance Leaders first!!9 Prepare a Recommended Implementation Plan with9. Prepare a Recommended Implementation Plan with
Tactical/Operations action plans and timelines 10.Define all improvement opportunities10.Define all improvement opportunities
a) Define projected savings/benefitsb) Develop timeline for achieving results
11.We implement The Reliable Maintenance Excellence Index to measure results. Note: This includes a d t d d f d t t ti
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documented procedures for data extraction.
Assessment Deliverables to Achieve Validated Results
12. The Reliable Maintenance Excellence Index also validates the value of TMEI Services and is ready to implementthe value of TMEI Services and is ready to implement
13. We define a Support Plan of Action for best practice support from The Maintenance Excellence Institute and our worldwide Alliance Team
14. Preliminary review of overall results and the plan by Maintenance Leaders
15. Written and oral presentation of results to Top Leaders and Maintenance Leaders
16 Implementation beginning from Day One with methods in16. Implementation beginning from Day One with methods in place to validate results: The Reliable Maintenance Excellence Index!
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Why The Maintenance Excellence Institute ?
The Maintenance Excellence Institute views the initial client interactions as the formation of a long-term alliance. Our success is contingent upon the success of each of our valued clients. Our Alliance Members form the skills base for serving you with today’s most comprehensive and cost effective support for total maintenance and MRO
Alliances
Our breadth of experience allows us to understand your overall operation, your total maintenance and storeroom operation; combining this into an overall solution for total operations success. Our geographical distance apart is not a limitation in today’s electronic world to provide for term cost effective implementation support.
materials management improvement.
Total Operations
Success world to provide for term cost effective implementation support.
We work for your validated results, not just deliverables or a report. The engagement whether large or small is not successful until the solutions are implemented and validated. Three important deliverables validate results for every client; a Scoreboard for Maintenance Excellence, a CMMS Benchmarking System plus The Reliable Maintenance Excellence I d t th h fl l l
Validated Results
Index at the shop floor level.
We will only be successful when we work as a team with each client, collaborating and sharing expertise and working side-by-side with cooperation and commitment. Our client’s team will bring an in-depth understanding of its operation. We will bring our proven methodology, valuable lessons learned and years of expertise in Maintenance Excellence
Collaboration, Cooperation,
Services, Operational Services and Training for Maintenance Excellence.The Maintenance Excellence Institute believes in the basics, simplicity and innovation toward profit-centered and customer-centered maintenance. We will view your operation and maintenance business as if it was our own. We never recommend solutions that are not cost-justified and without measurable results. The goal is to help you achieve and implement your overall business goals for profit optimization while gaining maximum
Commitment
Profit and
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implement your overall business goals for profit optimization while gaining maximum value from your current maintenance operation.
We guarantee at least at 10 to 1 return on your investment when using our services and implementing our action plans.
Customer-Centered
Past Scoreboard Assessments & Support • Anderson Packaging IL• Atomic Energy Canada (2 sites)• Air Combat Command (3 Air Force
• Cooper Tools/Cooper Industries(9 plants)
• Dominion Terminal Associates VA• Air Combat Command (3 Air Force Bases)
• Boeing Commercial Airplane Group (55 sites)
• Dominion Terminal Associates-VA• DIMON International-NC & VA-4
sites • Ford Motor (Canada) Engine Plant(55 sites)
• BP Texas City Refinery TX • Braun Medical-PA• Bucyrus International-WI
• Ford Motor (Canada) Engine Plant• General Foods-NY• GlaxoSmithKline-NC• Goldkist• Bucyrus International-WI
• BP Texas City Refinery-TX• Carolinas Medical Center-NC• Cascade Engineering MI (4 sites)
• Goldkist• Great River Energy-ND• Heinz USA-OH
L t T h l i NE (2 it )• Cascade Engineering-MI (4 sites)• Caterpillar (IL)• Big Lots Distribution Centers-OH,
CA AL PA (4 sites)
• Lucent Technologies-NE (2 sites)• Marathon Oil -LA, IL,MI and TX (4
sites)Th M M G NE
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
CA, AL, PA (4 sites)• Consolidated Thermoplastics (3 sites)
• The MarMaxx Group-NE• National Defense-PA
Past Scoreboard Assessments & Support
• Purolator-NC• Rocketdyne Propulsion-CA (Div of
B i )
• The Werner Company-PA, IL and AL (3 sites)
Boeing)• Rockwell International-WI• Rohm & Haas-TX• SIDERAR (8 Steel Mills Argentina)
• Wyeth-Ayerst -VA (3 sites in U.S.)• Wyeth Medica (Ireland)• Weyerhaeuser-WA
• SIDERAR (8 Steel Mills Argentina)• University of NC-CH Facilities Services
Div (6 work units)• University of NC-CH Building Services
• NC Department of Transportation (15 Division level shops & 100 county shops
i G GA & A (3University of NC CH Building Services PRIDE in Maintenance Sessions
• EMCOR- VIOX Facilities Services-OH (Contract Maintenance
• National Gypsum-NY, GA & AL (3 sites)
• NYCOMED (Puerto Rico)P l id C i MAProvider)
• Western Regional Maintenance-NC Dept of Health & Human Services (3 sites)
• Polaroid Corporation-MA• Pratt & Whitney (Canada)• Broward County Schools (FL)
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Training for Worldwide Organizations
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Maintenance Excellence Case Studies
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level ResultsThe
Mainten
Case Study:University of North Carolina, Facilities Services Division
The Facilities Services Division for the University of North Carolina-Chapel Hill (UNCFSD)provides the facilities management operations for North Carolina’s largest university campus with staffing of over 1000 personnel from housekeeping, architectural design, construction/renovation, landscaping, f iliti i t d MRO i t tfacilities maintenance and MRO inventory management. UNCFSD purchased a Facilities Maintenance Management System (FMMS) in 1998 and uses CMMS for plant maintenance within it’s Co-Generation plant maintenance operation. CMMS has served well over the past years since Co-Generation plant construction in the early 1990’s. From the facilities side there were opportunities to improve the MRO supply chain processes particularly withfacilities side, there were opportunities to improve the MRO supply chain processes, particularly with regard to warehousing operations, inventory management and purchasing modules for maintenance and construction materials. UNCFSD determined that it was time to evaluate how well their over facilities management operations was working and what new technologies with regard to a FMMS systems and MROoperations was working and what new technologies with regard to a FMMS systems and MRO supply chain could take it into the 21st century. More demands for services were imminent with recent passage of a $3.1 Education Bond Issue for construction for the overall UNC system of 16 campuses plus community colleges. The following engineering activities were provided:
Completed a comprehensive supply chain and maintenance needs analysis. This included interviews with approximately 100 personnel at all levels of the organization to determine how MRO materials management and the FMMS was performing for the entire organization. This included both hourly and salaried positions.Documented work flows and all systems that interfaced with the current FMMS and determined
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Documented work flows and all systems that interfaced with the current FMMS and determined with an economic analysis to see if the present system could be modified or upgraded to answer future needs.
Case StudyUniversity of North Carolina, Facilities Services Division (Continued)
The following facilities engineering services were provided: (continued)Developed recommended MRO supply chain and maintenance best practices to provide the foundation for achieving over $3,000,000 in direct savings and gained value.g , , g gDetermined with an economic analysis to see if the present FMMS system could be modified or upgraded to answer future needs for a rapidly changing maintenance environment.Provided a clear course for UNCFSD to pursue strategic, tactical and immediate operational improvements. Key areas included;
Plan for new organizational function to provide a central function for MRO materials management, shop level and construction planning function and improved procurement processes.
Plan of action for developing complete control and visibility of MRO inventories, modernization of off campus storage areas creation of an on campus storage area andmodernization of off campus storage areas, creation of an on campus storage area and establishment of shop level storage sites.
Plan for upgrading existing FMMS with functionalities for more effective MRO materials management and planning.
Complete position description job rating guide and procedures for establishing shop levelComplete position description, job rating guide and procedures for establishing shop level planning positions
Standard operating procedures for a UNCFSD Facilities Management Excellence Index to measure direct savings and gained value of all operational improvement initiatives.
Provided guidelines for continuous measurement of strategic best practice improvement
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
g gvia The Scoreboard for Facilities Management Excellence and The FMMS Benchmarking System
Case StudyRockwell International (now AMERITOR)
The Rockwell International (Rockwell) site in Wisconsin manufactures large transmissions and axle assemblies for heavy construction and transportation equipment. Rockwell’s maintenance program was in desperate need of effective storeroom operations, work management, p g p p , g ,PM execution and lack of even basic CMMS functionality was creating a serious challenge for effective plant operations throughput. Effective maintenance management was a serious missing link. To get immediate help before catastrophic failures, Rockwell engaged Advanced Technology Services Inc (ATS) to manage maintenance, improve/operate the storeroom, establish CMMS and to provide a maintenance planner via contracted services. This project was a partnering effort between MEI staff and ATS to help Rockwell implement essential best practices within this highly unionized environment. ATS determined that it was necessary get basic practices in place so that their contract services could perform. More demands for equipment reliability, increase uptime, better quality from precision machining centers, regulatory compliance and better service from existing craft resources made the topic of achievingregulatory compliance, and better service from existing craft resources made the topic of achieving maintenance excellence a business survival opportunity. The following engineering services to support the Rockwell manufacturing plant were provided:
Completed review of existing asset database on legacy system, prepared and migrated asset data to CMMSCMMS.Developed modernization plan for storeroom, purged old parts from existing storeroom and developed parts database for CMMS after complete inventory of “good parts”.Relocated storeroom to new location in center of plant and established effective parts serviceAnalyzed the best maintenance practices to provide the foundation for CMMS
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Analyzed the best maintenance practices to provide the foundation for CMMSSupported start up of contract planner position, new storeroom attendants and measurement process for Continuous Reliability Improvement
Case StudyBoeing Commercial Airplanes Group
The Boeing Commercial Airplanes Group (BCAG) is a division of The Boeing Company, the world’s largest manufacturer of commercial jetliners and military aircraft and the largest NASA contractor. As the largest producer of commercial jetliners, BCAG operates four strategic manufacturing centers in Washington as well as locations in Wichita, Kansas and Long Beach, California. Th F iliti A t M t O i ti (FAMO) l t d i S ttl h t li d ibilit dThe Facilities Asset Management Organization (FAMO) located in Seattle has centralized responsibility and technical leadership of facilities management and maintenance operations in all regions. Through their Advanced Maintenance Process (AMaP), FAMO was implementing a progressive and comprehensive five-year maintenance excellence initiative throughout BCAG and pursuing the implementation of world-class maintenance practices. pFAMO leaders were very committed to improving, standardizing and supporting corporate-wide maintenance best practices and having a system in place to measure results. After introducing the AMaP program at BCAG, FAMO leaders needed a method to benchmark results, measure benefits, identify obstacles to progress, and determine improvements needed to make AMaP more effective. FAMO needed to review the best practice elements of their AMaP program and to develop a Boeing Scoreboard for Facilities Maintenance Excellence. In turn, the internal benchmarking guide that evolved would be used to provide an objective evaluation of AMaP progress at each region down to group (maintenance manager) and team first line supervisor) levels.Part of the solution included using The Scoreboard for Facilities Management Excellence as the baseline guidePart of the solution included using The Scoreboard for Facilities Management Excellence as the baseline guide and working with the FAMO team to determine the key AMaP evaluation criteria to be added. The Boeing Scoreboard for Facilities Management Excellence was developed &define the BCAG maintenance excellence strategy, providing evaluation criteria to measure implementation progress at all levels in FAMO. A craft survey was developed and conducted with over 3000 members of the craft work force.
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Case StudyBoeing Commercial Airplanes Group (continued)
Results from this project included:Boeing Scoreboard for Facilities Maintenance Excellence developed
– Developed plan of action for assessments in all regions (over 50 site operations)– Developed survey for crafts, planners, and customers of maintenance (technical work force over 3,000)
B i S b d f F iliti M i t E ll t d t d i ll iBoeing Scoreboard for Facilities Maintenance Excellence assessment conducted in all regions:– Developed ratings and specific improvement opportunities for group leaders and team leaders– Identified various sites as centers of excellence for sharing of best practices– Completed survey and compiled results from crafts, planners, and customers
FAMO operation evaluated with The Scoreboard for Facilities Management Excellence as baseline guidep g gImprovement to existing planning and scheduling process developedImprovements to corporate-wide performance measurement process recommended
As a result of this project FAMO had well-defined strategy for maintenance excellence and support plan for implementation. Italso had a process established to measure implementation progress and ROI. Key results included:
Recommended enhancements to AMaP best practices and FAMO operations identified with potential savings of over threeRecommended enhancements to AMaP best practices and FAMO operations identified with potential savings of over threetimes the cost for implementationClearly defined a maintenance excellence strategy for the Boeing Scoreboard for Facilities Management ExcellenceEstablished a current evaluation of AMaP progress in each regionConducted an overall evaluation of FAMO operationsRefined maintenance performance measurement process and readied a Facilities Management Excellence Index forimplementationPut into place a world-class CMMS and standard best practices for implementation at all sitesDeveloped a method for greater accountability and productivity of all craft labor and material resourcesRenewed the focus on effective planning and scheduling processes
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level ResultsThe
Mainten
Renewed the focus on effective planning and scheduling processes
Case StudySiderar SAIC
Siderar SAIC is the largest steel company in Argentina with a production level of over two million tons per year. Siderar operates seven plants within the province of Buenos Aires. It is a fully-integrated producer that uses iron ore and coal as raw materials to produce coke, pig iron, and steel to manufacture hot and cold rolled sheet and coated products. Siderar wanted to upgrade their in-house developed Computerized Maintenance Management System (CMMS), consider the use of SAP-R/3 or implement another CMMS system-CMMS throughout its seven plants. They also wanted to improve corporate-wide maintenance best practices, have a system in place to measure results and ensure that the functionality of a new CMMS would fully support their maintenance improvementresults, and ensure that the functionality of a new CMMS would fully support their maintenance improvement efforts. Siderar SAIC needed a review of their total maintenance operation at all seven plants and to define recommended best practices and functional requirements for a world-class CMMS. Working with the Siderar team, a solution was developed that included a Scoreboard for Facilities Management Excellence assessment and specific recommendations for improvements at all plants, the definition of functional requirements for a future CMMS, and a recommended performance measurement process.Results over the course of the project include:
Developed functional requirements for a corporate-wide CMMS– Established method to evaluate vendors and developed short listEstablished method to evaluate vendors and developed short list– Evaluated SAP-R/3 plant maintenance and procurement module and ROI– Evaluated CMMS and ROI as the option to SAP’s Plant Maintenance module
Established a recommended Siderar CMMS strategy– Recommended CMMS vendor: CMMS
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
– Established CMMS implementation plan and a Siderar CMMS Benchmarking System to measureprogress
Case StudySiderar SAIC (continued)
Conducted benchmark assessment at the seven Siderar plants– Developed a Scoreboard for Facilities Management Excellence rating for each– Defined specific improvement opportunities of over $4 million
Developed improvement to existing planning and scheduling process– Introduced work measurement techniques– Developed measurement of planning effectiveness
Defined improved preventive/predictive maintenance (PM/PdM) opportunities– Revised and upgraded PM/PdM procedures– Increased compliance to PM/PdM schedules
Defined need for improved storeroom and shop operations– Developed need for strategic storeroom master planning– Implemented new storeroom procedures– Improved inventory control and accuracy
Developed a corporate-wide performance measurement process– Established performance goal for each metric
D t d th ith itt t d d d– Documented the process with written standard procedures– Established the Siderar Facilities Management Excellence Index (MEI)
Siderar SAIC was able to develop the best approach to CMMS and achieve their corporate-widemaintenance goals with a method to measure results. Key outcomes included:
Best practices with potential savings of over $4 million identified for implementation
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Best practices with potential savings of over $4 million identified for implementationA corporate-wide CMMS strategy developed to integrate a best-of-breed CMMS with SAP-R/3 financials
Case StudySiderar SAIC (continued)
A Siderar CMMS Benchmarking System in place to measure CMMS implementationprogressAn overall maintenance excellence strategy with strategic, tactical and operational actionsestablished as a result of the total maintenance operations assessmentMaintenance performance measurement process establishedA world-class CMMS and standard best practices in place for implementation at all sevenplantspA method for greater accountability and productivity of all craft labor and material resourcesA Siderar Scoreboard for Facilities Management Excellence established to periodicallyevaluate overall maintenance excellence progress at each of the seven plants
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Case StudyNC Dept. of Transportation, Div. of Highways’ Equipment Unit
The NC DOT directs, plans, constructs, maintains and operates the second largest state-maintained transportation system in the nation. The Equipment Unit maintains a fleet of over 20,000 pieces of equipment for highway repair and construction via a central depot operation and over 100 field shops. Due to the scope of NC’s transportation system and growth of overall highway maintenance requirements, p p y g g y q ,continuous improvement of fleet management was identified as being essential to the NCDOH mission. A comprehensive Equipment Management System and other improvements were needed to support this extensive fleet operation where annual replacements alone ranged from 20 to $40 million per year. The Equipment Management System which was implemented statewide over a 2 year period provided the following:
A computerized system for equipment inventory, parts inventory, repair history, work control, planning/scheduling, performance reporting and more effective preventive maintenanceA comprehensive statewide renewal of the PM program that included operator level PM tasksE i t S i Pl 50 l l t d t i d d i t ll d i l t d h f i / j iEquipment Services Planners; over 50 planners selected, trained and installed in selected shops for minor/major repair and PM scheduling, providing estimated repair time, shop schedules, parts coordination and increased customer service to field operationsImproved PM effectiveness that increased equipment uptime, increased equipment life and reduced annual equipment repair costs by over $5,000,000 per yearImproved parts service and overall management in central warehouse and at shop sites with a net reduction of over $2,000,000 per year in parts inventory costsImproved planning and customer service to field operations with increased craft wrench time valued at over $3,000,000 per year Increased time for service to outside agencies resulting in new revenue of over $1 500 000 per year
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Increased time for service to outside agencies resulting in new revenue of over $1,500,000 per year A pioneering effort for fleet management, viewed by numerous agencies from US and around the World
Case StudyConsolidated Stores/BigLots Inc.
Consolidated Stores Corporation which is now BigLots Inc. is one of America’s leading value-specialty retailers. Their Closeout Division operates 1,230 stores in 43 states, doing business as Odd Lots, Big Lots, Mac Frugel’s, and Pic’ ‘N’ Save. Their Toy Division consists of 1,320 toy stores in all 50 states, Puerto Rico and Guam for KB Toys, KB Toy Works, KB Toy Outlet, and KB Toy Express. Consolidated Stores wanted to establish standard maintenance best practices and significantly improve maintenance operations in all of its four distribution centers (DCs) —totaling over seven million square feet. They also wanted to have these company-wide maintenance best practices available for use in new and future DCs.Consolidated Stores desired to conduct a Scoreboard for Facilities Management Excellence assessment at two pilot DCs to determine a recommended strategy at all DCs in the futureDCs to determine a recommended strategy at all DCs in the future. Results from the assessments indicated the need for an improved Computerized Maintenance Management System (CMMS), better preventive maintenance (PM), improved planning between DC operations and maintenance, improved storeroom operations, improved shop and storeroom facilities, and the need for a method to measure maintenance performance and service. A Consolidated Stores Maintenance Excellence Strategy Team was chartered to provide direction and support to implementation of the recommendations and to define a common measurement process to validate projected savings.A combined team effort with all levels of Consolidated staff significantly contributed to a true Consolidated Stores solution. Results over the initial 12 months of the project included:Results over the initial 12 months of the project included:
Conducted final selection and implementation of a new CMMS at four DCs– Established system on central server for exclusive use by maintenance DC sites– Trained crafts people and DC operations personnel in PRIDE in Maintenance topics
E t bli h d CMMS B h ki S t t i f ll tili ti
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
– Established CMMS Benchmarking System to gain full utilization
Case StudyConsolidated Stores/BigLots Inc. (continued)
Implemented a planning and scheduling process at each DC– Developed corporate-wide planner position description/grade– Selected and trained one planner and backup per DC in Effective Maintenance Planning and Scheduling– Supported planners with shop level training
Measured planning performance– Measured planning performanceInitiated improved Preventive Maintenance
– Revised and upgraded PM procedures at all sites– Improved support from DC operations staff
Improved storeroom and shop operations– Developed strategic storeroom master plan
I d i t t l d ith b d li ti– Improved inventory control and accuracy with bar code applications– Established modernized central shop and central storeroom at Columbus,OH DC– Established new storeroom at Montgomery, AL DC
Established written standard operating procedures for use at all sites– Work order and work control– Planning and scheduling– Storeroom operations and parts procurement
Implemented corporate-wide performance measurement process– Consensus on corporate-wide metrics (13)– Performance goal for each metric established– Facilities Management Excellence Index (MEI) established for each DC
Summary: Corporate-wide goals and measurable results achieved as follows: 1. Development/implementation of a corporate-wide strategic maintenance excellence plan 2. Common CMMS and standard best practices in place and ready to apply at future DCs 3. Greater accountability and productivity of all craft labor and material resources 4. A new DC quickly brought online with effective maintenance practices
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
q y g p5. A renewed focus on PM and planning coordination with DC operations 6. Storeroom modernization and improvement and measurable results 2 times original projections
Case StudyMarathon Oil Company
Marathon Oil Company (Marathon) has four major refineries for gasoline and oil products in four states and a corporate office in Findlay, Ohio. Marathon purchased a Computerized Maintenance Management System (CMMS) in 1987 and is now operated from a network in Findlay, Ohio. This system has served Marathon well over the past nine years,operated from a network in Findlay, Ohio. This system has served Marathon well over the past nine years, particularly with regard to the warehousing and purchasing modules for maintenance control. Marathon determined that it was time to evaluate how well this system was working and what new technologies with regard to a CMMS system could take it into the 21st century. More demands for equipment history, regulatory compliance, and real-time cost data had made this topic a top priority for q p y g y p p p p yMarathon. The following engineering services were provided:
Completed a comprehensive needs analysis for four refining sites. This included interviews with approximately 200 personnel at all levels of the organization to determine how the CMMS was pp y p gperforming for the entire organization. This included both hourly and salaried positions.Documented all systems that interfaced with the CMMS for future compatibility.Determined with an economic analysis to see if the present system could be modified or upgraded to answer Marathon’s future needs for a rapidly changing maintenance environment.answer Marathon s future needs for a rapidly changing maintenance environment.Analyzed all CMMS vendors to see what technologies could best fit into Marathon’s future plans. It was determined that reliability was the key for future major cost reductions.Analyzed the best maintenance practices to provide the foundation for a CMMS.P id d l f M th t
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Provided a clear course for Marathon to pursue.
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