Reduction of High Maintenance Costs by Noah Olela Abong'o

7/31/2019 Reduction of High Maintenance Costs by Noah Olela Abong'o

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1.0 INTRODUCTION

Kenya Ports Authority (KPA) is statutory body under the Ministry of Transport.It was established by an Act of Parliament on 20th January, 1978 with amandate to maintain, operate, improve and regulate all scheduled Seaportsalong Kenyas coastline. In 1986, the Authoritys mandate was expanded toproviding port services after it merged with the former autonomous Kenya

Cargo Handling Services Company.

According to the Kenya Ports Authority 2009/10 2011/12 Business PlanProjections, the volume of cargo handled at the Port of Mombasa is expectedto rise to 19.7 million tons by the year 2012.

It is therefore evident that the port will be under considerable pressure, giventhat some areas of port operations such as Container Terminal are fullysaturated.

To accommodate the increased volume of traffic, substantial investmentshave been made over the last three years, towards modernization andupgrading of the existing facilities to cater for the growing shippingrequirements and to enhance port capacity. To improve efficiency inoperations, the Authority will continue implementing the EquipmentReplacement Programme with the aim of reducing costs of maintenance andimproving equipment reliability

Kenya Ports Authority comprises of the following Divisions:

a) Corporate Services

b) Finance

c) Human Resource and Administration

d) Operations

e) Habour Master

f) Corporation Secretary and Legal Services and

g) Technical Services

The Kenya Ports Authority Technical Services Division is responsible for allaspects of engineering comprising civil, mechanical, electrical and marineservices

NOAH OLELA ABONGO PROJECT ON REDUCTION OF MAINTENANCE COSTS WITHINKPA Page 1


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The strategic action plans and activities for the Division are presented in theTable1 below

NO OBJECTIVE ACTIVITIES INDICATORS BUDGET2001/10Kshs M

PROJECTIONTOTALKshs M

2010/11Kshs M

2011/12Kshs M

1. Improve powersupply efficiency

Upgrading ofPort supply andimprovementof lightingwithin the Port

and ICDs

No poweroutage

160.0 120.0 80.0 360.0

2. Reduce costs ofmaintenance andimproveequipmentreliability

Adherence tomaintenancepolicy andequipmentreplacementprogramme

Increasedequipmentavailability andreliability.

310.0 250.0 155.0 815.0

3. Improve andsustain highquality portinfrastructure

Refurbishmentof berths,yards, roads,buildings andpermanentway.

Increased yardcapacity andimproved trafficflow

364.0 300.0 200.0 864.0

Conversion ofberths 11 14into containerberths

Increasedcontainerhandlingcapacity

200.0 350.0 100.0 650.0

Developmentof a CFS atMariakani.

CFS developedand increasedcontainerthroughput

0 50.0 150.0 200.0

Developmentof secondKipevu Bridge,lorry parking,

Kipevu roadand MCTAccess road

Improved trafficflow

100.0 250.0 100.0 450.0

Dredging of thehabour channel

Greater accessfor vesselscalling at thePort

180.0 200.0 700.0 1,180.0



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2.0 Focal Problem to be pursued by the Project

Kenya Ports Authority has for the last few years been experiencing pressureon its Cargo handling Equipment due to the increase of the Maritime trade andthe opening up of the Southern Sudan to Investors. Marked by the aginginfrastructure and the overstretched cargo handling equipment mentionedabove, Kenya Ports Authority is under constant international shipping lines andclearing and forwarding firms pressures to meet the optimum equipmentavailability and reliability to the required safety standards of interstate portusers and appropriately balance those demands against the interests of theEast and Central Africa economic growth. Future increase in Mombasa Portusers (increase in containerized cargo) and economic growth, in the regionand beyond, will increase the demand for reliable cargo handling equipmentand further aggravate this problem.

2.1 Equipment Maintenance ChallengesThe Kenya Ports Authority main challenges and strategic issues which requiresurgent attention and which needs to be looked at afresh are:

Increased equipment maintenance costs

Reduced equipment life

Reduced equipment reliability / efficiency

Quality of maritime services offered

Reduced Productivity

Diminishing profits

Preventive and predictive maintenance compliance

2.2 Performance Based Maintenance Costs ControlMaintenance costs are directly related to people and equipmentperformance, and the keys to controlling performance are to:

Establish and implement a plan through a management system

Identify and measure appropriate process and labour relatedquantities and variables

When the measured quantity or variable indicates a deviationfrom plan, identify the fundamental problem causing thedeviation

Establish the corrective action required



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Apply the corrective action

Continue to measure the variables and quantities to determinewhether the corrective action is working

Feed results into future plans

This is a tall order; the identification of the fundamental problem in manycases is an entire management process in itself.It is important to relate the specific concept of cost control to the generalconcept of performance control. A trap many managers fall into is trying tocontrol costs directly. Although costs can be measured and compared to aplan (budget) they cannot be directly controlled since costs result fromphysical quantities. In reality costs can only be effectively controlled bymanaging their related quantities and solving problems related to them.Performance Based Cost Control is a management approach whichprovides answers to the questions which naturally follow from the general listabove:

How to appropriately identify the physical quantities and

variables that must be measured? At what frequency should they be measured?

What resource inputs are required to exercise control, and fromwhere must they come?

At what organizational level should each problem be analyzedand corrective action executed?

How to establish what the "real problem is?

What management methodology is required?

The variables to be controlled are those that directly affect the physicalquantities comprising costs; they must be defined in small enough "packages"

to allow an appropriate corrective action to be identified and applied. If thevariable is too broad in scope, such as poor availability, the fundamentalproblem requiring corrective action is difficult to identify. However, if thevariable is preventive maintenance compliance yesterday, the information isspecific enough to assess the problem and to take appropriate correctiveaction if a deviation has occurred.

Therefore statistical data, to be effective, must be organized in ahierarchy that corresponds to the organization. Summary indices, suchas mechanical availability of the truck fleet, are designed to alert highermanagement to problems on an exception basis. The summaryinformation must be built from more specific information, e.g.

availability of each unit; downtime hours each shift; reason for thedowntime, etc



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CONTROLCHARACTERISTICS

FEEDBACKINFORMATIONFREQUENCY

APPROPRIATEMANAGEMENTRESPONSE

Category A cost pointsrepresent costs that are afunction of variables that canbe directly controlled byfrontline supervision if anappropriate managementsystem is used. E.g. thevariable related to the physicalquantity unproductivemaintenance man-hours , partsrequisition, lost productivity

Small managementresource input fordesired control.

Relatively easytactical decisionsare measurementrequired tomaintain control.

High frequencymeasurements

First linemanagementcontrol through asystem

Category B cost pointsrepresent opportunities nottaken. These are costs thatmany times are"institutionalized" in theprocess, and are assumed tobe a cost of doing businessthat cannot be changed. E.g.untrained maintenance staff

Moderate resourceinput required.

Some formal studyrequired.

Significant tacticaldecisions requiredby "middlemanagement"

Medium frequencymeasurements

Project approach bythe Authoritysmiddlemanagement

Category C of costs requires

major strategic decisions bysenior management. They arecost points which, if attackedincorrectly or ignored, mayeventually result in the failureof the business.

High resourceinputs required.

Significantengineering studyrequired.

Strategic decisionsnecessary byseniormanagement.

Low frequencymeasurements

Strategic planguided by seniorKPA management

Category D cost points arecosts that absorb energy andcreate wasted time becausethey are fixed over relativelylong time frames. An exampleof a Category D cost point is along term maintenance leaseor contract that cannot bebroken in the short term.

Essentially fixed costswhich are uncontrollablewithin a realistic timeframe.

Low frequency Top KPAmanagement



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3 Stratification of Cost Points

As hinted earlier, the maintenance costs transcend traditional organizational

entities. For this reason, a non-traditional approach is required to control themaintenance variables which directly affect physical quantities related tomaintenance cost points.This calls for a highly coordinated Maintenance Team which must then definethe cost point quantities, their related variables and set performanceobjectivesThis coordination between maintenance and operations must occur at arelatively low organizational level and must be an inherent part of themaintenance management system that is being implemented. Theconfrontational or adversary approach that sometimes exist between thesesister departments will always result in a higher than necessary maintenance

costs.The figure below describes the general sequence for implementing amaintenance cost control program

ANALYZE UNIT

OPERATION

CONDUCT COST

ANALYSIS

CONDUCT

ORGANIZATION

ANALYSIS

DEFINE

PERFORMANCE

MEASURES

DEFINE COSTS

POINTS

STRATIFY COST

POINTS

DEFINE

CONTROLLED

VARIABLES

SET

OBJECTIVESIMPLEMENT

ESTABLISH

SYSTEMS AND

PROCEDURES

ESTABLISH

PROBLEM

SOLVING MODEL

GENERAL SEQUENCE OF IMPLEMENTING A MAINTENANCE COSTS CONTROL PROGRAM



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3.0 Problem, Objective and Strategy Analysis

3.1 Problem Analysis


HIGH COSTS OF

EQUIPMENT

MAINTENANCE

INCOMPETENCEUNRELIABLE CARGO

HANDLING EQUIPMENTS

LOW STAFF MORALE

UNTRAINED

MAINTENANCE

STAFF

UNPLANNED

MAINTENANCE REGIME

POOR ATTITUDE

TOWARDS WORK

POOR EQUIPMENT

HISTORY

LACK OF

MAINTENANCE

TOOLS

BAD WORKING CULTUREUNCONDUCIVE WORKING

ENVIRONMENT

FEWER POTENTIAL

CLIENTS / CUSTOMERS

HIGH COST OF

CONDUCTING BUSINESS

REDUCTION IN BUSINESS

VOLUME

REDUCTION IN CLIENTS /

CUSTOMERS

LOW REVENUE

COLLECTION

DIMINISHING PROFITS

PROBLEM ANALYSIS

TRAINING BUDGET

REDUCTIONPOOR

INFRASTRUCTURE


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3.2 Objective Analysis

REDUCED COSTS OF

EQUIPMENT

MAINTENANCE

COMPETENCERELIABLE CARGO

HANDLING EQUIPMENTS

HIGH STAFF

MORALE

TRAINED

MAINTENANCE

STAFF

PLANNED MAINTENANCE

REGIME

RIGHT ATTITUDE

TOWARDS WORK

ENHANCED

EQUIPMENT

RECORDKEEPING

MAINTENANCE

TOOLS

AVAILABILITY

CHANGE OF WORKING

CULTURE

CONDUCIVE WORKING

ENVIRONMENT

MORE POTENTIAL

CLIENTS / CUSTOMERS

REDUCED COST OF

CONDUCTING BUSINESS

INCREASE IN BUSINESS

VOLUME

INCREASE IN CLIENTS /

CUSTOMERS

HIGH REVENUE

COLLECTION

ENHANCED PROFITS

OBJECTIVE ANALYSIS

TRAINING BUDGET

ALLOCATION

IMPROVED

INFRASTRUCTURE

EFFECTS

CAUSES



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3.3 Strategy Analysis

Benefits to target groups

Equipment maintenance is a process used to maximize the productivity ofequipment for its entire life span. Some of the benefits which all the

stakeholders stand to benefit in directly or indirectly are: Reduction in unplanned equipment downtime

Increased production capacity

Reduced maintenance expenditures

Longer equipment useful life

Involvement of equipment operators in maximizing equipmentperformance

Improved equipment efficiency.

Equipment Maintenance and Sustainability

In the last few years, Sustainability has become a key issue in the maritimeindustry. It has grown as more and more people have understood that it is alsoa very profitable way to run a business. It has been asked several times howthe maintenance function can contribute to sustainability.

The biggest contribution is that when we maximize equipment uptime andeffectiveness, we reduce waste for the entire product supply chain. When wesuffer from equipment stoppages, we almost always generate waste of somesort. It might be raw materials used to manufacture the product, or packagingmaterials, and/or energy.

The farther into the container / loose cargo handling process where the wasteoccurs, the more it costs. If we have minor stoppages in the packagingequipment, we lose not only packaging materials, but finished product and allthe materials, labor, and energy that have gone into them.

In the area of energy conservation, effective equipment maintenance cancontribute by making sure that the replacement component parts that we useare energy efficient. Motors are a good example. The energy efficiency ofmotors can vary greatly, and we should be sure that we spend a little more tosave the energy that we can.

An effective maintenance organization enhances the sustainability of theoverall manufacturing effort by making sure that our equipment is bothreliable and efficient. This finally leads to sustained productivity andprofitability



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4.0 Work Breakdown Structure

A work breakdown structure (WBS) in project management and systemsengineering, is a tool used to define and group a project's discrete workelements in a way that helps organize and define the total work scope of theproject. A work breakdown structure element may be a product, data, aservice, or any combination.

A WBS also provides the necessary framework for detailed cost estimating andcontrol along with providing guidance for schedule development and control.Additionally the WBS is a dynamic tool and can be revised and updated asneeded by the project manager.

5.0 Project Network Diagram: Activity on Node

Activity-on-node is a project management term that refers to a precedencediagramming method which uses boxes to denote schedule activities. These

various boxes or nodes are connected from beginning to end with arrows todepict a logical progression of the dependencies between the scheduleactivities. Each node is coded with a letter or number that correlates to anactivity on the project schedule.Typically, an activity-on-node diagram will be designed to show whichactivities must be completed in order for other activities to commence. This isreferred to as finish-to-start precedence meaning one activity must befinished before the next one can start. In the diagram below, activities A and Dmust be done so that activity E can begin. It is also possible to create othervariations of this type of diagram. For example, a start-to-start diagram isone in which a predecessor activity must simply be started rather than fully

completed in order for the successor activity to be initiated.

An activity-on-node diagram can be used to provide a visualrepresentation of the network logic of an entire project schedule. Or, it

can be used for any smaller section of the schedule that lends itself tobeing represented as having a defined beginning and end. To keep thelogic in the diagram simple, it may be most effective to include onlycritical path schedule activities. The planned start date of each nodemay also be listed in the diagram legend in accordance with the projectmanagement timeline

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REDUCTION OF

MAINTENANCE

COSTS 5/31/11

0 DAYS

FORMULATION

OF

MAINTENANCE

POLICY

2 WEEKS

APPROVAL OF

THE

MAINTENANCE

POLICY DRAFT

1 WEEK

PRESENTATION OF

MAINTENANCE

PLAN BUDGETARY

PROPOSALS

3 WEEKS

ALLOCATION AND

AVAILABILITY OF

MAINTENANCE

FUNDS

4 WEEKS

TRAINING OF

THE

MAINTENANCE

TEAM

4 WEEKS

ADVERTISEMEN

T OF EQUIPMENT

REPLACEMENT

TENDERS

1 WEEK

INSPECTION

AND

ACCEPTANCE

1 WEEK

TRAINING OF

THE

OPERATIONS

TEAM

4 WEEKS

OPENNING AND

EVALUATIONS OF

TENDER

2 WEEKS

MAKING

EQUIPMENT

PAYMENTS

5 WEEKS

PRESENTATION

OF PROPOSALS

1 WEEK

AWARDING OF

NEW

EQUIPMENT

TENDER BIDS

4 WEEKS

DECOMMSSIONIN

G OF DEFECTIVE /

OBSOLETE

EQUIPMENT

3 WEEKS

COMMSSIONING

OF NEW

EQUIPMENT

1 WEEK

IMPLEMENTING

THE APPROVED

MAINTENANCE

PLAN

8 WEEKS

ACTIVITY ON NODE NETWORK DIAGRAM OF THE PROJECT INDICATING THE DURATIONS OF ACTIVITIES AND THE CRITICAL PATH

THE CRITICAL PATH OF THE PROJECT

REDUCTION OF THE OVERALL KPA EQUIPMENT MAINTENANCE COSTS TO ECONOMICALLY VIABLE LEVELS

6.0 Stakeholder Analysis, Stakeholder Identification & StakeholderInterests

StakeholderGroup

What are theymost Interested

What is their bigconcern?

What do we needto do to get their



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in? support?

KenyaGovernment

Revenue remittanceIncrease Revenuecollection base

Subsidize therequired additionalexpenditure

Kenya Ports

AuthorityManagement

Returns on

investment (Profits)

Maximize revenue

and minimizeexpenditure

Show both

feasibility andviability of theproject

Kenya PortsAuthorityemployees

Good remuneration Job Security Capacity Building

Suppliers andContractors

Getting businessopportunities

Exploiting businessopportunities for

enhanced profits

Sensitization

Shipping linesand Clearing &forwardingAgencies

Doing businesscheaply

Maximize profits inservices offered

Sensitization

Kenya RevenueAuthority

Collection of taxes Increasing taxcollection bracket(base)

Mutualcooperation /memorandum of

understanding

7.0 Project Log Frame Matrix

THE PROJECT LOGICAL FRAMEWORK



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Objectives Indicators Means of Verification Assumptions

GOAL

Enhancement of Kenya PortsAuthority overall profitability bymaximizing revenue generationand minimizing cargo handlingequipment maintenance

expenditure through:

Reduction ofmaintenance labourand material costs

Reduction of production/ service loss( whichincludes lack of abilityto offer the stipulatedservices resulting froman inadequatemaintenance program

Equipmentreliability

Equipmentavailability

Containersthroughput

Profitability

Equipmentefficiency

EquipmentDowntimerecords

Equipmentmaintenanceexpenditure

Spares andmaterialsinventory

Customersatisfaction &complaintssurvey

Establishment of acost basedmaintenanceregime and itscompliance

Allocation offinancial resourcesfor training ofmaintenancepersonnel

Adherence toequipmentreplacement policy

Implementingchangemanagement

OUTPUTS

Implementation of theEquipment replacementpolicy

Trained 100maintenance staff oneffective equipmentmaintenance regime

Adopted minimizationof equipmentmaintenance costs

policy

Implementing cost basedequipmentmaintenance

Training of the400 techniciansand 200 operatorsin the nextfinancial year

Rehabilitation ofthe two defectiveFront-

loaders to improveequipmentavailability

Site equipmentinspection

Staffdevelopmentand progressionrecords

Revenue andTariffs quarterlyreports

proc

Stability of theKenya Shillingagainst the foreigncurrency

Necessaryapprovals from allthe relevantstakeholders

Availability of thebudgetedimplementationfunds

ACTIVITIES

Maintenance activities / workincludes the following:

Work identification

Work planning

Work scheduling

Work execution

Equipment historyrecording

Work analysis

Implementation ofthe Equipmentreplacementpolicy

Training of 100

maintenance staffon effectiveequipmentmaintenanceregime

Adoption ofminimization ofequipmentmaintenance costs

TechnicalservicesMaintenancereports

Procurement andsupplies records

Finance

departmentreports

Securing all necessaryadministrative and financialapprovals together withfinancial commitments forthe entire project



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policy

TOTAL:Kshs155.0M

8.0 Project Implementation Schedule & Framework for

Monitoring and Evaluation

8.1 Equipment Maintenance Implementation Schedule

Scope of Maintenance Regimes

Planned preventive maintenance is regular, repetitive work done tokeep equipment in good working order and to optimize its efficiency andaccuracy. This activity involves regular, routine cleaning, lubricating, testing,calibrating and adjusting, checking for wear and tear and eventually replacingcomponents to avoid breakdown.

Productive preventive maintenance refers to the proper selection ofequipment to be included in planned preventive maintenance. Decisions mustbe made on what to include, to reduce costs; inexpensive units that are notnecessarily included in the planned preventive maintenance programme canbe replaced or repaired when they break down. The overriding consideration iscost-effectiveness.

An important aspect of planned preventive maintenance is the participationand commitment of the user / operator. Preventive maintenance should startwith users, and the bulk of the work should be their responsibility. The task

must be performed daily, with joint activities involving the user and atechnician engineer at the end of the week. Highly technical repairs, which arethe engineer's responsibility, may be scheduled every six months.

Setting up a planned preventive maintenance systemIn order to establish an effective, efficient planned preventive maintenancesystem, a registry filing system is needed. The manufacturer's manual forpreventive maintenance of the equipment can be supplemented by computerpackages in setting up such a system; if a computer is not available, a manualfile can be set up. The planned preventive maintenance administrative systemrequires the following:

Equipment inventoryAll equipment in the hospital that is in the care of the service workshop shouldbe recorded. All relevant information about the equipment must be entered,including its location, records of repair and maintenance and themanufacturer.



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A reference number is given and written on a printed paper label, which isattached to each item. This number is recorded in a ledger of equipment withfull identifying details.Definition of maintenance taskThe work that must be done to maintain each item of equipment in safe andreliable operating condition must be defined; this is known as themaintenance task. These tasks can be established by consulting the

manufacturer's literature and product information.

Establishing intervals of maintenanceAfter determining what is to be done, the frequency of the task /maintenance scheduling must be decided based on the technicalrequirements involved. A heavily used item must be cleaned and checkedmore frequently than one which is used less often; however, minimumstandards must be set. The frequency suggested in the manufacturer'smanual can be used as a guide, but the actual usage should determine themaintenance procedure required.

8.2 Framework for Monitoring and Evaluation

Monitoring and Evaluating Maintenance Effectiveness

Preventive maintenance (PM) is at the heart of maintaining equipmentreliability. But one of the dilemmas is how to verify that the right preventivemaintenance is being performed at the appropriate times. The solution is tomonitor the corrective maintenance (CM) performed during the reportingperiod.

Preventive maintenance is one part of the overall equipment reliabilityprocess, which also includes the corrective maintenance and corrective action(CA) programs.

Preventive Maintenance (PM) includes:

Periodic maintenanceplanned activities on a routine basis.

Planned maintenanceplanned activities initiated by the results ofpredictive or periodic activities.

Predictive maintenanceperiodic monitoring and diagnosis of

equipment to forecast and prevent failure.

In the past, determining the effectiveness of the PM portion of the equipmentreliability process has been reactive at best. The indicators used were capacityloss and unplanned shutdowns due to equipment failures. We havedetermined a more proactive method that allows us to check and adjust ourPM strategy before any problems become severe enough to warrant capacityloss.



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Establish goals

Corrective maintenance on components contained in the PM program is usedas an indicator of equipment physical condition. Although the total numberprovides a means to trend, a review of the individual component workpackages provides more meaningful information on the reliability of theequipment in question.

Evaluate data

Each corrective maintenance work package is evaluated against the currentpreventive maintenance strategy. Frequency and content may be altered thento prevent recurrence of the required Corrective Maintenance. In some cases,predictive maintenance is initiated to better monitor equipment functionality.

Trends by component type can be established to determine if there is specificweakness in an overall strategy (see Fig. 1). For example, multiple CM workpackages over a six-month period on check valves could indicate an overall

weakness in the frequency in which a PM is performed or a change in thesystems affected. Multiple high vibration conditions on pumps could indicate apoor alignment process. A detailed review allows the unit to identify specificareas to target for improvement.

Risk analysis

The total number of components affecting the overall plant risk assessment isalso tracked on a monthly basis. This provides a specific indicator of PMs doneon critical plant equipment.

An adverse trend would show the need to increase the priority of the PMreview process.

Cost benefit

By tracking man-hours required for these corrective activities, a monthly costcan be quantified and annual cost estimated. This provides the data forcost/benefit analysis to improve PM strategy through the purchase of newvibration data collection equipment, acoustic detection equipment, or in a



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recent case, installation of infrared inspection windows on motor terminalboxes.

This last example allowed post-work testing after motor termination andprovided the means for predictive monitoring. Cost of installation on thetargeted population was far less than the cost of one motor failure.

Most companies / organizations already track the corrective maintenanceperformed at some regular interval. Comparing that data to the componentsmaintained by preventive maintenance is easily done by hand or with a simplespreadsheet program. Knowing the physical condition of a preventivemaintenance program provides the feedback loop vital to continuousimprovement of the overall equipment reliability process.

9.0 Project Concept Paper

9.1 Introduction

With increasing automation and the reliance on large complex containercranes complete with substantial mechanized backup equipment,maintenance in modern port operations has assumed a very large impact onport economics. Unfortunately, the effectiveness of the maintenanceperformed at many ports has lagged behind that of operations. This has beendue in large part because of the emphasis placed on cargo handling and therelated technical advancements in cargo handling equipment. Cargooperations, by its very nature is amenable to monitoring and control asoperating statistics, e.g. containers handled per berth hour, etc. are easilycomputed and can be compared to budgeted figures. Control parametersuseful for managing the maintenance function, however, are more difficult to

quantify which may explain its lack of development as compared to cargooperations. The following tend to characterize most port maintenanceprograms:

Most of the maintenance work is unscheduled and is related to equipmentbreakdowns affecting cargo operations.

Senior management personnel tend to view maintenance personnelprimarily in a standby mode, to be called upon in the event of criticalbreakdowns.

Maintenance organizational accountability tends to be centered aroundshift coverage, rather than on area or equipment groups.

Direct and indirect (loss of loading/unloading time) maintenance costs arehigher than they should, or could be.

The objective of port maintenance should be to ensure the operability ofequipment as to maximize discounted cash flow for the port over its lifetime.Meeting this objective requires a substantial amount of planning and resourcecontrol on the part of maintenance management personnel. In our experience



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over the past decade in maintenance management consulting around theworld in various industries, the objective can best be met through theimplementation of an integrated management system, along with relatedtraining, containing the following elements:

An organization structure emphasizing accountability and the means tomeasure performance.

Planning and scheduling for the short term (each shift) as well asforecasting for the intermediate and longer terms.

Short term performance monitoring based on scheduled milestone eventsduring the course of daily work.

Accurate documentation of work performed, and its entry into equipmenthistory files.

Effective preventive maintenance program.

Reporting of performance indicators appropriate to the organizational levelbeing monitored.

The remainder of this paper deals with suggested approaches toimplementing these elements in a port operation.

Project Goal

Project Goal Statement

The Kenya Ports Authority should balance the needs of all Port users and the

International Shipping Lines and Clearing & Forwarding Agents by providingsafe, affordable and reliable cargo handling equipment at all times. Thereliable equipments and their maximum availability will offer mobility choicesand complement the faith and trust which the Shipping lines and CargoClearing Agents have in the Port of Mombasa as a Port of choice. In so doing,Kenya Ports Authority will support their economic initiatives, preserve and/orenhance their business ventures, facilitate speedy cargo movements andimprove the lives of its citizenry quality of life, now and into the future.

Scope of the Project

This project will cover all the maintenance activities in Mombasa, Nairobi ICD,Kisumu ICD and the Lamu Station.

Expected Project Output

The requirement for maintenance process has change drastically from the oldconcept of fix-it-when-it-broke to a more complex approach, which entailed



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adopted maintenance strategy of a more integrated approach and alignment.Nowadays, management has become aware that maintenance will also be partof the investment decision-making, thus prompting managers to take intoaccount the sources of funding and the impact investment has on credit linesand taxes and not only to focus on upfront cost and depreciation rates.

The goal of maintenance program is also changing and with the rapid

technological development, improvement of equipment and technology will beone of the key aspects of improved maintenance practiced for betterproductivity, effectiveness and profitability.

Project Inputs and the Work Plan

Project InputsThese include all the resources needed to successfully complete the project,namely:

Human resource

Financial resource

Time resource

Materials and spares

Tools necessary for the projects

Vehicles and other physical amenities.

Developing an Annual Work Plan

An annual work plan and budget should flow from the strategic long-termgoals and objectives developed earlier.

The work plan should list all expected maintenance projects for the year:preventive maintenance, general maintenance, major and minor repairs,custodial operations, refurbishments and equipment modifications. It shouldalso include projects needed to reduce backlogs of deferred maintenance.

Work Plan linked to the 2011 / 2012 KPA Kshs. 150.00Million Annual

Budget

The annual work plan should link directly to the yearly maintenance budgets.Projects in the work plan transform from ideas into reality only when they areincluded in operating or capital budgets. In the budget, maintenancemanagers should balance maintenance needs against available funding.



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The annual budget shows for the coming year what money is needed for eachproject in the annual work plan, including projects intended to reducemaintenance backlogs.

Budget development requires preparing cost estimates for annual operations,such as personnel and supplies costs, as well as for capital costs, such asmaking major repairs.

Each years capital budget should flow from the longer-range capitalimprovement program described earlier.

The amount of spending needed for equipment maintenance depends on thecosts of equipments identified needs, the extent of deferred maintenance,and the planned period over which the Kenya Ports Authority hopes to reduceequipment existing deficiencies. Higher spending in any given year will bringconditions to their desired level faster; lower spending lengthens theequipment downtime.


Documents

Reduction of High Maintenance Costs by Noah Olela Abong'o