Great information which shows the correlation between Asset Reliability and many factors which effect an organization such as safety, cost, etc.

1. Results from Optimized Reliability
Presented by: Ricky Smith, CMRP
February 2013
Copyright 2013 GPAllied©

2. “A Proactive Reliability Process is a supply chain. If a step
in the process is skipped, or performed at a substandard
level, the process creates defects known as failures. The
output of a healthy reliability process is optimal asset
reliability at optimal cost.”
― Ron Thomas, former Reliability Director,
Dofasco Steel, Hamilton, ON
Copyright 2013 GPAllied©

3. Maintenance
• To Maintain
• Preserve, and Protect from Degradation
• Maintain Asset Reliability
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4. Reliability
Meeting the functional requirements of the end user
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5. Reactive Maintenance Attributes
• Ineffective or No Planning and Scheduling
• PM Compliance has a wide variance
• Performing PM on Equipment that continues to breakdown
• Overnight deliveries sit for weeks, months
• Everyone works as hard as they can with little if any
movement seen toward proactive
• Storeroom is Chaos (people standing in line at 7:00am
waiting on parts)
• Contractor replacing equipment with no one validating if the
defect was eliminated or work was completed accurately
Copyright 2013 GPAllied©

6. Variation is Your Enemy - Causes
• No Repeatable/Effective Procedures
• Lack of Discipline in maintenance execution
• The wrong maintenance approach to reliability
• Production not operating the equipment to standard
• PM Compliance is Too Wide
• Doing Too Much PM
• No standards or specifications
Copyright 2013 GPAllied©

7. Dr. Deming:
“Your system is perfectly designed to give you the results
you are getting.”
Electric Motors – Plant Wide (Mean Time Between Failures)
80
75
70
65
60
55
50
45
Hours
40
35
30
25
20
15
10
5
0
7 Copyright 2013 GPAllied©

8. World Class Standards – Where are you?
• PM Execution – 15%
• PM Results – 15%
• PdM Execution – 15%
• PdM Results – 35%
• Total Work “Planned” – 90%
• Reactive Work – Less than 2%
• Stock-outs – less than 2%
• Scheduled compliance by day/week – 85 to 90%
• Failure Elimination is a key focus of all (FRACAS)
• Work orders are closed out with ALL Codes ID
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9. Alcoa Mt Holly vs. World Class Standards
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10. Cost Comparison of Maintenance Programs
($ per Horsepower)
Maintenance Cost
Run to Preventive Predictive Precision
Failure
Source: EPRI Power Generation Study Copyright 2013 GPAllied©

11. Safety and Reliability
Injury Rate (% of Base)
135 120
OEE (% of Base)
115 115
95 110
75 105
55 100
35 95
15 90
13
17
21
25
28
33
37
41
45
48
53
1
5
9
OEE
Month Injury Rate
Source: The RM Group, Knoxville, TN
Copyright 2013 GPAllied©

12. Maintenance Costs vs. Vibration Analysis
Maintenance Costs ($) %RAV
Vibration Analysis (%)
Source: 1997 Benchmarking Study in Chemical Processing industry, John Schultz to be featured in
Ron Moore’s new book What Tool? When? Selecting the Right Manufacturing Improvement Strategies and Tools
Source: John Schultz, RM Group
Copyright 2013 GPAllied©

13. Maintenance Costs vs. Equipment on PM
Maintenance Costs ($) %RAV
Equipment on PM (%)
Source: 1997 Benchmarking Study in Chemical Processing industry, John Schultz to be featured in
Ron Moore’s new book What Tool? When? Selecting the Right Manufacturing Improvement Strategies and Tools
Source: John Schultz, RM Group
Copyright 2013 GPAllied©

14. Why does it all matter?
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15. Maintenance Cost % of RAV
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16. Questions/Comments?
Copyright 2013 GPAllied©