This document summarizes a presentation on facilities management auditing and benchmarking. The presentation covers:
1. Reviewing the financial benefits that can be achieved through the Scoreboard for Facilities Management Excellence benchmarking process and Continuous Reliability Improvement strategy.
2. Introducing the process for creating the Reliability & Maintenance Excellence Index to measure shop-level performance.
3. Defining the concept of "PRIDE in Maintenance" and the synergistic team-based approach to reliability improvement.
1. SESSION NO.: R4.39 Thursday, MARCH 18, 2010 ROOM NO.: 339
Successful Facilities
Management Auditing &
Benchmarking
Ralph W. “Pete” Peters
W Pete
Founder-President-Coach
The Maintenance Excellence Institute
Raleigh and Oak Island NC
www.PRIDE-in-Maintenance.com
2. Key Session Objectives
1. Review $’s that The Scoreboard for Facilities
Management Excellence benchmarking process
can enable
2. Review the strategy for Continuous Reliability
Improvement (
p (CRI).
)
3. Review the process to create The Reliability &
Maintenance Excellence Index
4. Define “What is PRIDE in Maintenance?”
Terms: Top Leader Maintenance Leader Craft Leader
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 2
3. Different Types of Benchmarking
1. Benchmark: A point of reference for a
measurement. Surveying benchmarks are
special-purpose "monuments", typically small
concrete obelisks, approx. 3 feet tall and 1 foot at
the base, set permanently into the earth.
2.
2 Strategic Benchmarking: Impro ing
Benchmarking Improving
performance by examining successful
approaches used by high performers
high-performers.
Example The Scoreboard for Facilities
Management Excellence
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 3
4. 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 Reliable Maintenance Excellence Index
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 4
5. Benchmarking Your Maintenance Organization
The Scoreboard
for Facilities
Management
Excellence
The Reliable
Maintenance
Excellence Index
We Will Review
These
Two Benchmarking
Tools
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 5
6. Maintenance Around the World
REMEMBER: MAINTENANCE IS FOREVER!!
Fleet Operations
Discrete Continuous Process
Manufacturing Industries
Scope of
Plus M
Pl Many
Maintenance
More Types of
Maintenance
Facility Management
Operations Healthcare
Operations
Public Utilities
….
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 6
7. Maintenance??
Burj Al Arab: A “7”
Star Hotel
Russian Airport Control Tower-
p
Kamchatka Peninsular
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 7
8. Burj Khalifa Tower
formerly known as
Burj Khalifa 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
9. Today’s Very Real Challenges
Challenge One: Maintain existing
facilities d
f ili i and equipment in safe and
i i f d
reliable conditions.
Challenge Two: Improve, enhance and
g p ,
then maintain existing physical assets
to achieve environmental, regulatory
, g y
life safety/security standards & energy
best practices.
p
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 9
10. 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
g
physical assets and assume increased
scope of work to maintain plus more
p p
work from Challenges One, Two and
Three as assets get older, older & older
g ,
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 10
11. 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
Total Requirements”
2. Top Leaders also know your Total Maintenance
Requirements & know the facts
q
3. 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
Work smarter, not harder? Or Work smarter and harder?
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 11
12. Facing Today’s Maintenance Challenges
The Bottom Line normally is this;
Assuming growth with little or no additions in staff
gg
Real Maintenance Leaders
Must Discard the “Status Quo”- Forget the Past!
Status Quo
Must Improve the “business of maintenance”
Must implement Best Practices such as;
Effective planning, estimating and scheduling
Improved Preventive Maintenance/Predictive
p
Maintenance (PM/PdM) ………etc/etc/etc
Lead Maintenance Forward as a Business;
YOUR OWN PER$ONAL BUSINE$$
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 12
13. What is Your Answer to This Question?
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 13
14. Facing Today’s Maintenance Challenges
Conduct Scoreboard
for Facilities
Management
g
Excellence
Assessment
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 14
15. Know Your Current State of Maintenance
“The Reliability Pyramid” shown on the next page
illustrates the five stages of maintenance development
development.
Where are you?
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 y
goal of “total operations success”.
Get Stage 1 Right! Moving beyond Stage 1 will achieve significant
benefits. First
b fit Fi t you must know where you are!
tk h !
Define your current “state of maintenance” via The Scoreboard
for Facilities Management Excellence assessment process.
process
15
16. The Reliability Pyramid
STAGE 5 Reliability
Operational Excellence
Assure alignment of financial operations, corporate Total and
leadership,
leadership sales and marketing and customers
marketing,
Operations Maintenance
Success Excellence
Overall Equipt
STAGE 4 Unit Simplify/
Engineered Reliability Effectiveness Standardize
Systematically eliminate sources of Concurrent Equipt Courtesy of
Engrn.
g Acqn. Strategic Asset
potential system failure
i l f il Reliability Life Cycle Reliability
Focus Cost Anal. Analysis Management
STAGE 3
External TPM
Organizational Excellence Maintenance / versus Operator
Operations Internal Performed
C eate the environment to maximize
Create t e e o e t a e Craft Integration Benchmarks Maintenance
the staff contribution Flexibility
Condition Proactive
STAGE 2 Monitoring Failure Mode Analysis Maintenance
Failure Prediction
Proactive Maintenance
Gain
G i control of equipment
t l f i t PdM / CMMS
Craft Skills Equipment
Enhancement History
condition Integration
Preventive Work Management CMMS
STAGE 1 Maintenance Processes System
Daily Maintenance: Gain
Work Initiation / Planning and Work Execution MRO Materials
control of the work Prioritization Scheduling & Review Management
16
17. Introducing The Scoreboard
for Facilities Management Excellence
g
Other TMEI Scoreboards for Excellence Include:
Scoreboard for Maintenance Excellence (Manufacturing)
Scoreboard for Fleet Management Excellence
Scoreboard for Healthcare Facilities Mgmt Excellence
Scoreboard for Golf Course Maintenance Excellence
17
19. The Scoreboard for
Facilities Management Excellence
g
Recognized as Today’s Most Complete and
Comprehensive
Comprehensi e Assessment Tool
– 27 Best Practice categories & 300 evaluation items
– Defines your baseline as to “where you are”
– You could compare your baseline to other
organizations
i ti
– Comparing to others not important
– It’s about what you do to “move the ball”
– Provides the path forward for reliability &
maintenance excellence.
i t ll
19
20. The Scoreboard for
Facilities Management Excellence
g
Proven as Today’s Most Complete and
Comprehensive
Comprehensi e Assessment Tool.
– Used by TMEI for over 300 + assessments & by
over 4,000 worldwide organizations as an internal
4 000
benchmarking tool
– Available at www Pride in Maintenance com
www.Pride-in-Maintenance.com
– Free with purchase of Maintenance Benchmarking
& Best Practices (MBBP) from McGraw-Hill
&TMEI. (Chapter 7, page 122)
– MBBP is really 3 4 books in one as compared to
3-4
small books by other authors . 20
21. Evaluation Total
CATEGORY The Scoreboard for Facilities Management Excellence Items Points
in
Category Descriptions (Part 1) Category
A. The Organizational Culture and PRIDE in Maintenance 5 50
B. Facilities Organization, Administration and Human 10 100
Resources
C. Craft Skills Development 10 100
D. Facilities Management Supervision/Leadership 10 100
E. Business Operations, Budget and Cost Control 15 150
F.
F Work Management and Control: Maintenance and Repair 10 100
(M/R)
G. Work Management and Control: Construction and 5 50
Renovation (C/R)
H. Facilities Maintenance and Repair Planning and 15 150
Scheduling
I. Facilities Construction and Renovation Planning 10 100
/Scheduling and Project Management
J. Facilities Planning and Property Management 10 100
K. Facilities Condition Evaluation Program 5 50
L. Facilities Storeroom Operations and Internal MRO 15 150
Customer Service
21
M. MRO Materials Management and Procurement 10 100
22. CATEGORY The Scoreboard for Facilities Management Excellence Evaluation Total
Items Points in
Category Descriptions (Part 2 Continued) Category
N.
N Preventive Maintenance and Lubrication 20 200
O. Predictive Maintenance and Conditioning Monitoring 10 100
Technologies
P.
P Building Automation and Control Technology 5 50
Q. Utilities Systems Management 10 100
R. Energy Management and Control 10 100
S.
S Facilities Engineering S
F iliti E i i Support
t 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) 15 150
and Business System
X. Shop Facilities, Equipment, and Tools 10 100
Y. Continuous Reliability Improvement 10 100
Z. Grounds and Landscape Maintenance 15 150
ZZ. Housekeeping Service Operations 15 150
22
Total Evaluation Items and Points 300 3000
24. Focus on Your TARGETS
Taking Aim at Recommendations to Gain Excellence from Training Success
24
25. The Goal & The Commitment
The Goal: Implement and measure results of solutions
we define by each Scoreboard assessment or during
y g
TrueWorkShop events.
The Commitment: We are committed to a long term
partnership for achieving measurable results.
To help continuously expand current successes
To help implement our recommendations
To document results & the value of our services
To become a valuable technical resource
To have all client’s use maintenance for profit
optimization.
25
26. Scoreboard Baseline Ratings
TOTAL BENCHMARK BASELINE POINTS
POINT OVERALL SCOREBOARD RATING
FOR EACH
RANGES SUMMARY
EVALUATION
THE BASELINE TOTAL SCO
AS O A SCORE
ITEM
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%
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 6
1799 Total Points
49% or Less of Total
Points POOR: 1499 Total Points or less 5 26
27. Your Return on Maintenance Investment
Financial Results Customer Satisfaction Results
• 5% to 20% increase in • 10% to 30% increase in asset
capacity/throughput availability/reliability
• 20% to 30% increase in craft • 10% to 20% reduction in stock outs
productivity/wrench time
• 20% to 30% greater inventory
• 10% to 20% reduction in actual accuracy and control
maintenance costs
• 20% to 30% increase in planned
• 10% to 20% decrease in parts work and schedule compliance
inventory & asset accountability
Fully implemented projects of this type provide a conservative range of
direct savings/benefits and gained value from 10% to 20% in annual
maintenance and MRO materials costs. Most operations achieve significant
measurable improvements in many key performance measures Also this
measures.
project will also provide important intangible benefits for employee
relations, attitudes and internal and external customer satisfaction.27
28. Introduction
to
Continuous Reliability Improvement
(CRI)
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 28
29. Continuous Reliability Improvement
Conduct Scoreboard
for Facilities
Management
g
Excellence
Assessment
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 29
30. Continuous Reliability Improvement-CRI
Develop Your Scoreboard for Facilities
The Maintenance Excellence Institute: WorldwideExcellence Shop Level Results
Management Services With Measured 30
31. Continuous Reliability Improvement
CONTINUOUS RELIABILITY IMPROVEMENT
GOES BEYOND RCM AND TPM
Physical Asset
and Equipment
Resources
Craft Labor
Synergistic Team
S i ti T Resources
Based Resources
Continuous
Reliability
Improvement
Craft Knowledge
Spare Parts
and Technical
and Material
Skill Resources
Resources
Information
Resources and
CMMS
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 31
37. The Synergy of Team Efforts
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 37
38. The Synergy of Team Efforts
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 38
39. 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
Measure performance & validate results
f lid l
• Apply CRI across total maintenance operation
….
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 39
40. Return on Maintenance Investment (ROMI)
Financial Results Customer Satisfaction Results
• 5% to 20% increase in • 10% to 30% increase in asset
capacity/throughput availability/reliability
• 20% to 30% increase in craft • 10% to 20% reduction in stock
productivity/wrench time outs
• 10% to 20% reduction in • 20% to 30% greater inventory
actual maintenance costs accuracyy
• 10% to 20% decrease in parts • 20% to 30% increase in planned
inventory value work
Maintenance process improvement can provide direct savings/benefits
and gained value from 10% to 20% in annual maintenance and MRO
materials costs. You can achieve measurable results in many areas.
And you can provide important benefits for employee relations,
relations
attitudes and both internal and external customer satisfaction.
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 40
41. Understanding Potential Benefits
With a Net Profit Ratio of 5 Percent; the Potential for
Maintenance to Contribute to the Bottom Line
Can be Significant
Maintenance Direct Equivalent Sales
Savings
S i Required
R i d
A Profit of $1 Requires Sales of $20
$1,000 $20,000
$10,000
$10 000 $200,000
$200 000
$20,000 Offsets $400,000
Savings of $50,000 Not $1,000,000 in Sales
$75,000 Having…
$75 000 Having $1,500,000
$1 500 000
$100,000 $2,000,000
$150,000 $3,000,000
$
$175,000 , $ ,
$3,500,000 ,
$200,000 $4,000,000
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 41
42. Developing Your Maintenance Excellence Strategy
• Define “where you are” with a Scoreboard for
Facilities Management Excellence assessment
• Get third-party support for an objective
benchmark assessment
• Define your priorities for “where you want to go”
• Develop potential direct & indirect benefits
• Gained value from increased uptime
• G i d value from craft productivity
Gained l f ft d ti it
• Gained value from MRO materials
management
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 42
43. 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
• Ensure maintenance operation has buy-in as well
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 43
44. Develop a Reliable Maintenance Excellence Index
A Reliable Maintenance Excellence Index Must;
• Identify key performance indicators that really matter
• G i consensus on agreed upon goals & targets
Gain d l t t
• 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
44
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
45. The Reliable Maintenance Excellence Index
• The RMEI measures key resources that contribute to
profit optimization greater customer service and more
optimization,
effective facilities management;
• People resources; internal craft labor & outside contractors
p ;
• Dollar resources; overall budget dollars of maintenance and
the customer
• 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
g y
45
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
46. A Reliable Maintenance Excellence Index Provides;
• A very powerful, one page Excel spreadsheet
• 12-15 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
best
b t practices
ti
• 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
47. Developing Your Reliable Maintenance Excellence Index
Current
Month
Perf
Baseline
Perf.
Level
Weighted
Value of
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results Each Metric
48. Developing Your Reliable Maintenance Excellence Index
All Perf.
Goals
Are Met
So Perf.
Perf
Level Scores
are All 10”s
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
49. Step Description The 10 Step Process for RMEI Development
Performance 10Your metrics are Maintenance Excellence Index
Developing to 15 Reliable selected & agreed upon by the organization.
A Metrics Select metrics for total maintenance process + operational ones.
p p
B Current
Month
The actual monthly performance level for the metric . This value
will also be noted in one of the incremental values blocks below
Performance the performance goal. This value will correspond to a value for F,
the performance level scores which go from 10 down to 1
C Performance The pre-established performance goal for each of the RMEI
Goal metrics. For example, if the Current Month’s Performance is at the
Performance Goal level, the performance level score for that goal
will be a 10, the maximum score.
ill b 10 th i
D Baseline The baseline performance level prior to start of RMEI
Performance performance measurement. Not always available. Use a 1-3
months performance average as a baseline after start of RMEI.
g
E Current Depending on the current month’s performance, a performance
Performance level score (F) will be obtained. This value then goes to the
Score Current Performance Score row and serves as the multiplier for
the (G) the Weighted Value of the Performance Metric
F Performance Values from 10 down to one, which denotes the level of current
Level performance, compared to the goal. If current performance
achieves the predetermined g
p goal, a p
, performance value of 10 is
given. 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.
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
50. Step Description The 10 Step Process for RMEI Development (cont)
Developing The values along this row are the weighted value or relative
Your Reliable Maintenance Excellence Index
G Weighted
Value of the importance of each of the metrics. These values are obtained via
p
Performance a team process and a consensus on the relative importance of
Metric each metric that is selected for the RMEI. All of the weighted
values sum to 100.
H 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
The sum of the Performance Value Scores for each of the metrics
and the composite value of monthly maintenance performance
Value
V l on all RMEI metrics
ll t i
J Total RMEI
Performance
Location for tracking Total RMEI Performance
Values over a number of months
Values Over
Time
Important Notes
1. The RMEI is a composite of key metrics, each with relative importance
2. Each RMEI metric can be trended and linked to the monthly RMEI
3.
3 The
Th RMEI should be balanced across the total maintenance operation
h ld b b l d h l i i
4. Other metrics of lesser value can also be tracked.
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
51. 21 Maintenance Performance Metrics
PRIDE to Consider for Your
Reliable Maintenance Excellence Index
with -in-
Maintenance
Go For It @
PRIDE-in-Maintenance.com
PRIDE-in-Maintenance com
51
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
52. # 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 TBD
( a te a ce
(Maintenance Cost Per Square footage Maintained: To
e Squa e ootage a ta ed o
evaluate/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 ABC
report
Costing practices
3. % Customer or Capital Funded Jobs Completed as 98%
Scheduled
S h d l d and within +/- 5% of C t E ti
d ithi / f Cost Estimate: To
t
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 cost
4. % Other Planned Work Orders Completed as Scheduled: To 95%
measure customer service and planning effectiveness; Obtained from a
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.
52
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
53. # Performance Metric and Purpose Goal
5. Schedule Compliance: To evaluate how effectiveness scheduling was 95%
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 80%
Orders: To evaluate positive impact of PM, planning processes and other to
proactive improvement initiatives (CRI,/RCM/etc); Obtained from a query 85%
Planned
of all true emergency WO types in CMMS WO files and comparing to total
WOs completed. Could be expressed in % based on craft hours.
7. % Craft Time to Work Order for Customer Charge Backs: To monitor TBD
craft 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 100%
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
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
54. # Performance Metric and Purpose Goal
9. % Craft Utilization (Actual Wrench Time): To maximize craft 60%
resources for productive, value-adding work and to evaluate to
effectiveness of planning process; Obtained from a query of all craft hours 70%
reported to non craft work from CMMS time keeping WO files and
summation of actual craft hours
10. % Craft Performance (Against Reliable Estimates for PM 95%
and planned work): T maximize craft resources, to evaluate
d l d k) To i i ft t l t
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 98%
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
planning processes.
54
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
56. The Overall Craft
Effectiveness Factor (%)
CSQ: Craft
CU: Craft CP: Craft
Service
Utilization
Utili ti Performance Quality
OCE = %CU x CP x CSQ 56
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
57. # Performance Metric and Purpose Goal
12. Overall Craft Effectiveness (OCE): To evaluate cumulative positive 65%
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 and
Utilization
Service Excellence
13. % Work Orders with Reliable Planned Times: To measure 70 %
planner s
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.
14 % Overall Preventive Maintenance Compliance: (C ld be by 100%
(Could b b
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
p p ; p
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 57
58. # Performance Metric and Purpose Goal
15.
15 Gained $Value from Craft Utilization & Performance: To TBD
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
Performance.
16. % Inventory Accuracy: To evaluate one element of MRO material 98%
management and inventory control policies; Obtained from cycle count
results and could be based on item count variances or on cost variance
lt d ld b b d it t i t i
17. % or $ Value of Actual MRO Inventory Reduction: To 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
59. # Performance Metric and Purpose Goal
18 Number of Stock Outs of Inventoried Stock Items: To monitor actual ????
. 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 TBD
. from progressive procurement practices as another element of MRO materials
management. Could apply to contracted services, valid benefits received from
performance contracting, contracted storerooms, vendor managed i
f t ti t t d t d d inventory;
t
Obtained via best method per a standard procedure that defines how direct
purchasing savings are to be accounted for
20 Overall Equipment Effectiveness (
q p (OEE): World –class metric to evaluate
) 85%
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
p
process, operations performance on critical assets and the resulting quality of output
, p p gq y p
21 % Asset Availability/Uptime: To evaluate trends in downtime due to TBD
. maintenance and the positive impact of actions to increase uptime; Obtained via
downtime reporting process
Many More Metrics Available
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
61. Some Other Maintenance Metrics
Category Benchmark
Yearly M i t
Y l Maintenance Cost:
C t
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%
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%
Inventory Turns:
Turns Ration of Spare Parts > 2-3
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 61
62. Some Other Maintenance Metrics
Category Benchmark
Training:
> 80
For at least 90% of workers, hours/year
hours/year
Spending on Worker Training ( of p y
p g g (% payroll)
) ~4%
Safety Performance:
OSHA Recordable Injuries per 200,000 labor hours <2
Housekeeping ~96%
Monthly Maintenance Strategies:
Preventive Maintenance: Total Hours PM/Total Maintenance
~20%
Hours Available
Predictive Maintenance: Total Hours PdM/Total Maintenance
~50%
Hours Available
Planned Reactive Maintenance: Total Hours PRM/Total
~20%
Maintenance Hours Available
Reactive Emergency: Total REM/Total Maintenance Hours
2%
~2%
Available
Reactive Non-Emergency: Total RNEM/Total Maintenance
62 ~8%
Hours Available
> 97%
Plant Availability: Available Time/ Maximum Available Time
Contractors: Contractors Cost/Total Maintenance Cost 35-64%
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
64. What is PRIDE in Maintenance?
People Really Interested i Developing Excellence
l ll d in l i ll
In
Maintenance
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 64
65. People:
P l
It is About You and Your People (Technicians,
Engineers, Supervisors Contractors
Engineers Supervisors, Contractors, Storeroom
Staff) and Top Leaders as well!
What is PRIDE in Maintenance?
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 65
66. Really:
It is Wanting, Desiring and Being Very
Committed to Improving the Total
Maintenance Process.
What is PRIDE in Maintenance?
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 66
67. Interested in:
Something of Importance That We Want to Improve
or Change for the Good of Ourselves
and
Our Organization & Customers
What is PRIDE in Maintenance?
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 67
68. Developing:
Learning About and Building the Skills
for Implementing Today s Best Practices And
Today’s Practices.
Developing Our Most Importance Resource;
Our PEOPLE!
What is PRIDE in Maintenance?
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 68
69. Excellence:
Achieving Reliability and Maintenance Excellence to
Achieve Total Operations Success . Success of the
Total Operation is “THE GOAL”
So What is
PRIDE
in
Maintenance to You?
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 69
70. Please Remember:
As a Maintenance Leader
Leader,
You Must Set the Example with
PRIDE
in
Maintenance
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 70
71. Remember You Must Be a Salesman Too!
Maintenance Leaders
“Remember
That Nothing Happens Until
Somebody Sells
Something!”
Mr.
Mr Red Motley Said This a Long Time Ago
Motle
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 71
72. Our Proven Approach is the
Foundation of the new McGraw-Hill
Book By TMEI Founder
Ralph W. “Pete” Peters
72
73. Additional Materials
Results from an Assessment of the
Total M i t
T t l Maintenance Operation
O ti
TMEI Case Studies
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 73
74. 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 Implementation
3. An in-depth assessment of current maintenance
practices
4. Recognition of current successes
5. Develop and present PRIDE-in-Maintenance sessions to
crafts work force and other staff
6. Recommendations for improvement to the current
installation f
i t ll ti of CMMS
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 74
75. 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.
9 Prepare a Recommended Implementation Plan with
Tactical/Operations action plans and timelines
10. Define all improvement opportunities
a) Define projected savings/benefits
b) Develop timeline for achieving results
11. We implement The Reliable Maintenance Excellence
Index to measure results. Note: This includes a
documented procedures for data extraction.
d t d d f d t t ti
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 75
76. Assessment Deliverables to Achieve Validated Results
12. The Reliable Maintenance Excellence Index also validates
the 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.
16 Implementation beginning from Day One with methods in
place to validate results: The Reliable Maintenance
Excellence Index!
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 76
77. 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
Alliances 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
materials management improvement.
Total Our breadth of experience allows us to understand your overall operation, your total
Operations 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
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.
Validated Three important deliverables validate results for every client; a Scoreboard for Maintenance
Results Excellence, a CMMS Benchmarking System plus The Reliable Maintenance Excellence
Index t the h
I d at th shop floor level.
fl l l
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
Collaboration, team will bring an in-depth understanding of its operation. We will bring our proven
Cooperation, methodology, valuable lessons learned and years of expertise in Maintenance Excellence
Commitment 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
Profit and 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
Customer- value from your current maintenance operation.
Centered
We guarantee at least at 10 to 1 return on your investment
when using our services and implementing our action plans.
77
78. Past Scoreboard Assessments & Support
• Anderson Packaging IL • Cooper Tools/Cooper Industries
• Atomic Energy Canada (2 sites) (9 plants)
• Air Combat Command (3 Air Force • Dominion Terminal Associates-VA
Associates VA
Bases) • DIMON International-NC & VA-4
• Boeing Commercial Airplane Group sites
(55 sites) • Ford Motor (Canada) Engine Plant
• BP Texas City Refinery TX • General Foods-NY
• Braun Medical-PA • GlaxoSmithKline-NC
• Bucyrus International-WI • Goldkist
• BP Texas City Refinery-TX • Great River Energy-ND
• Carolinas Medical Center-NC • Heinz USA-OH
• Cascade Engineering MI (4 sites)
Engineering-MI •LLucent Technologies-NE (2 sites)
t T h l i NE it )
• Caterpillar (IL) • Marathon Oil -LA, IL,MI and TX (4
• Big Lots Distribution Centers-OH, sites)
CA, AL
CA AL, PA (4 sites) • Th M M
The MarMaxx Group-NE
G NE
• Consolidated Thermoplastics (3 sites) • National Defense-PA
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
79. Past Scoreboard Assessments & Support
• Purolator-NC • The Werner Company-PA, IL and
• Rocketdyne Propulsion-CA (Div of AL (3 sites)
Boeing)
B i ) • Wyeth-Ayerst -VA (3 sites in U.S.)
• Rockwell International-WI • Wyeth Medica (Ireland)
• Rohm & Haas-TX • Weyerhaeuser-WA
• SIDERAR (8 Steel Mills Argentina)
• NC Department of Transportation
• University of NC-CH Facilities Services
(15 Division level shops & 100
Div (6 work units)
county shops
• University of NC CH Building Services
NC-CH
• National Gypsum-NY, GA & AL (3
i G A
PRIDE in Maintenance Sessions
sites)
• EMCOR- VIOX Facilities Services-OH
(Contract Maintenance • NYCOMED (Puerto Rico)
Provider) • P l id Corporation-MA
Polaroid C i MA
• Western Regional Maintenance-NC Dept • Pratt & Whitney (Canada)
of Health & Human Services (3 sites) • Broward County Schools (FL)
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
80. Training for Worldwide Organizations
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
81. Maintenance Excellence Case Studies
The
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results Mainten
82. 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,
facilities
f iliti maintenance and MRO i
i t d inventory management.
t t
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 with
side, processes,
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 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
with an economic analysis to see if the present system could be modified or upgraded to
answer future needs.
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
83. Case Study
University 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 g
Determined 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 and
areas
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 level
description,
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
g g
via The Scoreboard for Facilities Management Excellence and The FMMS Benchmarking
System
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
84. Case Study
Rockwell 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 achieving
compliance
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
CMMS.
CMMS
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 service
Analyzed the best maintenance practices to provide the foundation for CMMS
Supported start up of contract planner position, new storeroom attendants and measurement process for
Continuous Reliability Improvement
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
85. Case Study
Boeing 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.
The Facilities Asset M
Th F iliti A t Management Organization (FAMO) l
tO i ti located i S ttl h centralized responsibility and
t d in Seattle has t li d ibilit d
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.
p
FAMO 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 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
86. Case Study
Boeing 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)
Boeing Scoreboard f F iliti M i t
B i S b d for Facilities Maintenance EExcellence assessment conducted i all regions:
ll t d t d in ll i
– 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 guide
p g g
Improvement to existing planning and scheduling process developed
Improvements 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. It
also 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 three
times the cost for implementation
Clearly defined a maintenance excellence strategy for the Boeing Scoreboard for Facilities Management Excellence
Established a current evaluation of AMaP progress in each region
Conducted an overall evaluation of FAMO operations
Refined maintenance performance measurement process and readied a Facilities Management Excellence Index for
implementation
Put into place a world-class CMMS and standard best practices for implementation at all sites
Developed a method for greater accountability and productivity of all craft labor and material resources
Renewed the focus on effective planning and scheduling processes
The
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results Mainten
87. Case Study
Siderar 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,
results 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 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
– Established CMMS implementation plan and a Siderar CMMS Benchmarking System to measure
progress
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
88. Case Study
Siderar 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
– DDocumented th process with written standard procedures
t d the ith itt t d d d
– Established the Siderar Facilities Management Excellence Index (MEI)
Siderar SAIC was able to develop the best approach to CMMS and achieve their corporate-wide
maintenance goals with a method to measure results. Key outcomes included:
Best practices with potential savings of over $4 million identified for implementation
A corporate-wide CMMS strategy developed to integrate a best-of-breed CMMS with SAP-R/3 financials
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
89. Case Study
Siderar SAIC (continued)
A Siderar CMMS Benchmarking System in place to measure CMMS implementation
progress
An overall maintenance excellence strategy with strategic, tactical and operational actions
established as a result of the total maintenance operations assessment
Maintenance performance measurement process established
A world-class CMMS and standard best practices in place for implementation at all seven
p
plants
A method for greater accountability and productivity of all craft labor and material resources
A Siderar Scoreboard for Facilities Management Excellence established to periodically
evaluate overall maintenance excellence progress at each of the seven plants
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
90. Case Study
NC 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 g
p p y growth of overall highway maintenance requirements,
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 maintenance
A comprehensive statewide renewal of the PM program that included operator level PM tasks
Equipment Services Pl
E i tS i Planners; over 50 planners selected, t i d and i t ll d i selected shops f minor/major repair
l l t d trained d installed in l t d h for i / j i
and PM scheduling, providing estimated repair time, shop schedules, parts coordination and increased customer service to
field operations
Improved PM effectiveness that increased equipment uptime, increased equipment life and reduced annual equipment
repair costs by over $5,000,000 per year
Improved 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 costs
Improved 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
$1,500,000
A pioneering effort for fleet management, viewed by numerous agencies from US and around the World
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
91. Case Study
Consolidated 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 future 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:
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
Established Benchmarking S t
h ki System t gain f ll utilization
to i full tili ti
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
92. Case Study
Consolidated 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
Initiated 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 Improved i
d inventory control and accuracy with b code applications
t t l d ith bar d li ti
– 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 p
q y g practices
5. A renewed focus on PM and planning coordination with DC operations
6. Storeroom modernization and improvement and measurable results 2 times original projections
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
93. Case Study
Marathon 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,
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 p
q p y g y p p p priority for
y
Marathon.
The following engineering services were provided:
Completed a comprehensive needs analysis for four refining sites. This included interviews with
approximately 200 p
pp y personnel at all levels of the organization to determine how the CMMS was
g
performing 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.
Marathon s
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.
Provided
P id d a clear course f M th t pursue.
l for Marathon to
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results