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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
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
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
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
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
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
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
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
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
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
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
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
What is Your Answer to This Question?




   The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   13
Facing Today’s Maintenance Challenges


                                                                               Conduct Scoreboard
                                                                                  for Facilities
                                                                                  Management
                                                                                       g
                                                                                   Excellence
                                                                                  Assessment




     The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results      14
Know Your Current State of Maintenance

“The Reliability Pyramid” shown on the next page
  illustrates the five stages of maintenance 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
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
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
200 200+ Scoreboard Assessments
    plus Scoreboard Assessments




                                  18
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
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
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
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
23
Focus on Your TARGETS
Taking Aim at Recommendations to Gain Excellence from Training Success




                                                                 24
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
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
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
Introduction
                                              to
Continuous Reliability Improvement

                            (CRI)

     The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   28
Continuous Reliability Improvement


                                                                             Conduct Scoreboard
                                                                                for Facilities
                                                                                Management
                                                                                     g
                                                                                 Excellence
                                                                                Assessment




   The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results      29
Continuous Reliability Improvement-CRI




         Develop Your Scoreboard for Facilities
      The Maintenance Excellence Institute: WorldwideExcellence Shop Level Results
                       Management Services With Measured                             30
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
Continuous Reliability Improvement




     The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   32
Continuous Reliability Improvement




     The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   33
Continuous Reliability Improvement




     The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   34
Continuous Reliability Improvement




     The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   35
Continuous Reliability Improvement




     The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   36
The Synergy of Team Efforts




 The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   37
The Synergy of Team Efforts




 The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   38
Today’s Maintenance Leader Must:

• Know “Where You Are”
•Know “Where You Want To Go”
• Have Strategic, Tactical or Operational Plans
• Have “Do It Now” Action Items
• Be a true Maintenance Leader
•M
 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
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
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
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
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
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
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
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
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
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
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
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
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
#       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
#        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
#        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
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   55
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
#        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
#         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
#        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
60




The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
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
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
The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   63
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
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
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
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
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
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
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
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
Our Proven Approach is the
Foundation of the new McGraw-Hill
     Book By TMEI Founder
     Ralph W. “Pete” Peters




                            72
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
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
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
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
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
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
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
Training for Worldwide Organizations




   The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Maintenance Excellence Case Studies




                                                                                                 The
    The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results   Mainten
Case Study:
University of North Carolina, Facilities Services Division

    The Facilities Services Division for the University of North Carolina-Chapel Hill (UNCFSD)provides
    the facilities management operations for North Carolina’s largest university campus with staffing of
    over 1000 personnel from housekeeping, architectural design, construction/renovation, landscaping,
    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
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
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
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
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
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
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
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
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
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
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
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
94

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Benchmarking Tools for Facilities Management

  • 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
  • 18. 200 200+ Scoreboard Assessments plus Scoreboard Assessments 18
  • 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
  • 23. 23
  • 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
  • 32. Continuous Reliability Improvement The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 32
  • 33. Continuous Reliability Improvement The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 33
  • 34. Continuous Reliability Improvement The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 34
  • 35. Continuous Reliability Improvement The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 35
  • 36. Continuous Reliability Improvement The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 36
  • 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
  • 55. The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 55
  • 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
  • 60. 60 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
  • 63. The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 63
  • 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
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