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

Value Driven MaintenanceValue Driven Maintenance

Discover The Hidden Treasure In Your Organization

Discover The Hidden Treasure In Your Organization

Mark Haarman, Managing PartnerBirmingham, 18 April 2012

2Copyright Mainnovation 2011

Agenda

1.Maintenance

Dilemma

1.Maintenance

Dilemma

2.Value Of

Maintenance

2.Value Of

Maintenance

3.Most ValuableMaintenanceOrganization


4.Continuous

Improvement

4.Continuous

Improvement


Importance of Maintenance is Still Neglected

• Each management will tell you that maintenance is important

• “Without maintenance we will have no production and no safe working facilities”

• However, in economic downtimes maintenance is primarily seen as cost center

• Maintenance manager is not able to show the added value of maintenance ....

• ... because he/she does not speak the language of the board

• With all consequences as such


Value Driven Maintenance® (VDM)

• VDM is developed by Mainnovation in close cooperation with leading maintenance organizations from different industries

• VDM makes the economic added value of maintenance quantifiable and supports the priority setting

• VDM facilitates the development of the Most Valuable Maintenance Organization (MVMO) ...

• ... and makes maximum use of proven best practices and is fully embedded in leading EAM systems


Companies Using VDM

Ports & RoadsPorts & Roads

ManufacturingManufacturing

Oil & ChemicalsOil & Chemicals

Life SciencesLife Sciences

WaterWater

Public TransportPublic Transport

Energy & UtilitiesEnergy & Utilities

Paper & PulpPaper & Pulp

MarineMarine

Food & BeveragesFood & Beverages


Agenda

1.Maintenance

Dilemma

1.Maintenance

Dilemma

2.Value Of

Maintenance

2.Value Of

Maintenance



4.Continuous

Improvement

4.Continuous

Improvement


Maintenance Value Drivers


Case - IFF

•Leading company in flavors and fragrances

•European production centre in Tilburg, The Netherlands

•Company data:

• Replacement asset value = € 105 M

• Technical availability = 87%

• EBITDA = € 40 M

• Maintenance costs = € 2.8 M

• SHE-factor = 1.0

• Value MRO inventory = € 1.1 M

•Leading company in flavors and fragrances

•European production centre in Tilburg, The Netherlands

•Company data:

• Replacement asset value = € 105 M

• Technical availability = 87%

• EBITDA = € 40 M

• Maintenance costs = € 2.8 M

• SHE-factor = 1.0

• Value MRO inventory = € 1.1 M

€ 50 M € 12 M

€ 1 M

€ 0

9

Case - BP

http://www.ecy.wa.gov/programs/spills/Special_Focus/BP_LA_Oilspill/photo_gallery/Oil%20and%20Man-O-War.jpg

http://www.ecy.wa.gov/programs/spills/Special_Focus/BP_LA_Oilspill/photo_gallery/insituburn_1.jpg


Agenda

1.Maintenance

Dilemma

1.Maintenance

Dilemma

2.Value Of

Maintenance

2.Value Of

Maintenance



4.Continuous

Improvement

4.Continuous

Improvement


Maintenance Competences


Measure Performance with Control Panel


Benchmark Performance


14

Online Benchmarking With myVDM.com


Case - GlaxoSmithKline


Maximum Use of Proven Best Practices

RCMRCM

RBIRBI

SLASLA

OEEOEE

Supply Chain Integration

Supply Chain Integration

TPMTPM

ConditionMonitoringCondition

Monitoring

OperatorMaintenance

OperatorMaintenance

Asset BasedCosting

Asset BasedCosting

17

Processes, People & IT


VDM Process Map

1.1Plan

equipmentperformance

1.2Monitor

equipmentperformance

1.3Analyze

performancelosses

2.1Manage

PM strategy

2.3Manage PM

schedules andtask lists

2.2Identify

critical spares

2.4Evaluate

PMstrategy

3.1Collect

maintenancerelated SHE-legislation

3.2Translate SHE-legislation inPM strategy

3.3Measure

SHE factor andperformance

4.1Budget

maintenancecosts

4.2Monitor

maintenancecosts

4.6Claim

damages

4.3Analyze

maintenancecosts

4.5Claim

warranties

5.2Prepare

work orders

5.4Schedule

work orders

5.3Manage

work permits

5.5Issue

work orders

5.1Receive

notifications

5.6Manageproject

6.1Execute

maintenance

6.2Register

work orderresults

7.7Create

purchaserequests

7.8Review

proposals

7.10Send

purchaseorders

7.11Match

invoices

7.12Managesuppliers

7.9Manageframe

agreement

7.2Monitor

inventoryvalue

7.1Receive andstock spares

7.5Manage

catalogue

7.6Transport

spares

7.4Count

inventory

7.3Issue spares

8.1Develop

outsourcingstrategy

8.2Supervisecontractor

9.1Manage

Skill profiles

9.2Managepersonal

certificates

9.3Manage

workforcecapacity

9.4Register

10.1Manage

equipmentdata

10.3Manage

drawings andmanuals

10.4Collect real

time condition data

10.2Manage

equipmentpermits

9.5Calibrate

tools

4.4Issue

investmentrequest


Embed Processes in IT and Organization

MM GK ME WVB PL MON IM INK

C A/R I

A I R I C C C

A C R I C C

A C I R C

A R C

A I R C C


Case - Volvo Cars

• Volvo Cars manufactures cars in 5 plants in Sweden and Belgium

• Volvo Cars is well known because of its innovative maintenance approach and TPM awards

• After years of focus on Asset Utilization Volvo Cars wanted a maintenance model that helped them to find the right balance between uptime and costs

• Volvo has adopted VDM as their standard maintenance management philosophy

• In 2005 they started with the implementation of standardized VDM work processes:

– based on internal and external best practices

– fully supported by their Maximo system

• 2010: 50% cost reduction on biggest plant


Agenda

1.Maintenance

Dilemma

1.Maintenance

Dilemma

2.Value Of

Maintenance

2.Value Of

Maintenance



4.Continuous

Improvement

4.Continuous

Improvement


Continuous Value Improvement

• Growing in professionalism means creating value

• When realistic achievable level of professionalism is reached, the value potential is utilized

• Automatically, the secondary value driver becomes the dominant one

• MVMO needs to be redesigned based on the new core competences

• Without loosing the achieved level of professionalism of the other value drivers


Know Where You Are!


Case – Conagra Foods

• Leading Food Company in US with 100 plants

• With Conagra Performance System (CPS) towards World Class Maintenance

• VDM programm based on TPM and RCM:

– Internal/external benchmarking

– Standard work processes

– Standard SAP EAM

– Equipment Reliability Improvement

• Global and local performance management with Maintenance KPI Dashboard (VDM Inside)

• Built in leading Business Intelligence software (SAP Business Objects and IBM Cognos) and fully integrated with SAP EAM and Maximo


VDM Inside

Thank you!

Mark Haarman | Managing Partner | [email protected] | +31 621553313

Documents

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