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A true Asset Strategy Management program delivers predictable outcomes and avoids unexpected failures, outages, safety exposures and costs. ???????????????????????????????????????????????????

Poor reliability of equipment and processes can have sudden and disastrous effects on the ability of an organisation to deliver operational or project objectives. Reliability problems can lead to unexpected downtime, poor quality product or service, missed operational targets, significant remedial costs, poor safety and a rise in incidents.

Managing reliability well seems elusive to most organisations who find it difficult to connect reliability strategy to maintenance execution. In many organisations, the tendency is to focus on maintenance execution alone, in the belief that plant reliability will improve. In order to improve execution, focus is placed on the work management process, work management KPIs, and Master Data. The reality is that even world class execution of a poor strategy won’t deliver on operational objectives in a predictable consistent way. Many organisations are executing inconsistent or sub optimal strategies, leading to variable results, continued under-performance, and significant failures and outages.

Institutionalising Asset Strategy Management (ASM) into the operation reduces failures, downtime and risk, and as a consequence, total cost of operations are lower. Deploying the optimal strategy across all assets and monitoring performance provides the means to improve reliability across all assets, and to sustain the improved performance over time, and throughout periods of change.

ASM removes the inconsistent outcomes from asset strategies, allows for any pockets of excellence to be deployed to all relevant assets, and drives continuous reliability improvement.

What’s the roadblock?

Enterprise Resource Planning (ERP) systems are designed to execute strategy, they are not designed to develop, maintain and manage good strategy.  Many organisations have not yet realised that strategy is separate to execution. ERP systems are designed to support efficient execution, and in order to be effective, have to be continually populated with appropriate Master Data and optimal strategies.

What’s the Solution?

An ASM solution acts as the thread across all systems. It allows organisations to capture and review data from all sources and leverage learnings to enhance reliability strategies by identifying the pockets of strategy excellence and deploying those strategies across the organisation wherever they are relevant.

Standardising and leveraging good strategy

At the core of an ASM solution sits an asset strategy library which houses reliability-based tactics. These asset strategies can be deployed rapidly and support regional or local variations to cater for different operational or environmental conditions. Strategy variation is visible organisation-wide via a reporting functionality, where all learnings drive continual improvement in the asset strategy library, which can be accessed and redeployed to any asset.

Achieve better benchmarking

Operation executives are held accountable for performance, but they don’t have access to all of the data and knowledge they need in order to make accurate decisions. In numerous multi-site organisations, reliability strategies are not standardised across all sites, adding to the confusion between data, strategies, and outcomes. These factors make it difficult to benchmark and thus compare costs and performance of like equipment across the organisation. An ASM solution captures data from many sources and presents it in one place. It allows managers to set up benchmarks, develop and deploy the best strategies consistently, monitor KPIs and align strategies across their whole operation.

Gain control over execution

Asset Managers often have no control over the deployment and execution of the strategies they develop. An ASM solution gives managers the ability to ensure that standardised procedures for strategies are deployed to all assets, at all sites, and to make certain that any modifications to procedures go through an approval process first. In addition, managers gain the ability to monitor the effectiveness of all strategies and to identify system wide and specific enhancements that should be made.

Future-proofing

When changeover takes place among maintenance, reliability and project engineering personnel, quality and consistency issues can arise. It’s critical that standardisation is maintained over the longer term regardless of personnel changes, such that baseline strategies are deployed and monitored according to standards and quality assurance rules. To ensure strategies remain optimum over the asset life, the rationale for each strategy decision is maintained and can be revised, improved or changed as business needs change.

Rapid integration

Time is money. The sooner a reliability strategy can be developed and deployed, the better. An ASM system integrates with an organisation’s existing ERP system for easy, efficient and rapid deployment.

Case in Point

Major LNG operator develops & deploys strategies in only 44 days

The Goal

  • To develop maintenance strategies for a major LNG brownfield operation.

The Situation

  • Had no clear method to develop and standardise maintenance strategies in a rapid and efficient manner for all brownfield assets.
  • Many existing PMs were outdated.
  • Many assets did not have strategies.

How an ASM solution was leveraged

  • Generic maintenance strategies were developed for 122 unique equipment types.
  • Variations were made on generic strategies where applicable to meet asset operating context.
  • Strategies were then uploaded to SAP and deployed to 3,631 assets.

Outcomes

  • Client now has a single, standardised database in which strategies can be quickly updated and uploaded to SAP.
  • Entire process was completed in 44 days vs. 90+ days if a traditional method had been used.
  • Client is going to leverage the strategies and learning from this project to assist with the rollout of an upcoming Greenfield initiative.

Would you like to know how you can leverage your organisation’s pockets of excellence and build a best in class asset strategy management program? OnePM® is an innovative reliability strategy management solution, created by ARMS Reliability. LEARN MORE

OnePM® is a trade mark of ARMS Reliability and registered in Australia.

Author: Jason Ballentine

Developing a maintenance strategy requires careful consideration and due process. Yet from what I’ve seen, many organizations are making obvious errors right from the start — missteps that can torpedo the success of the strategies they’re trying so hard to put in place.??????????????????????????????????????????

Without further ado, here are five common maintenance strategy mistakes:

  1. Relying solely on original equipment manufacturer (OEM) or vendor recommendations.

It seems like a good idea — you’d think the people who made or sold the equipment would know best. It’s what they don’t know that can hurt you.

Outside parties don’t know how a piece of equipment functions at your facility. They don’t understand how much this equipment is needed, the cost of failure, whether there’s any redundancy within the system… OEM and vendor maintenance guidelines are geared to maximize the availability and reliability of the machine, but their strategies might not be appropriate for your unique circumstances or needs. As a result, your team could end up over-maintaining the equipment, which can actually create more problems than it solves. The more you mess with a piece of equipment, the more you introduce the possibility of error or failure. Some things, in some situations, are better left alone.

What’s more, OEMs and vendors have a vested interest in selling more spare parts (so they can make more money). That means that their replacement windows might not be accurate or appropriate to your business needs. Rather than relying on calendar-driven replacement, your maintenance strategy might focus more on inspecting the equipment to proactively identify any issues or deterioration, then repairing or replacing only as needed.

It’s fine to use OEM/vendor maintenance guidelines as a starting point. Just make sure you thoroughly review their recommendations to see if they align with your unique needs for the given piece of equipment. Don’t just blindly accept them — make sure they fit first.

  1. Relying heavily on generic task libraries for your maintenance strategy.

This is surprisingly common. Some organizations purchase a very generic set of activities for a piece of equipment or equipment category, and attempt to use them to drive maintenance strategy. But generic libraries are even worse than OEM/vendor recommendations because they are just that — generic. They aren’t written for the specific equipment make and model you have. They might even include tasks that simply don’t apply, such as “inspect the belt” on a pump that uses an entirely different drive mechanism. Once a mechanic attempts to perform one of these generic, ill-suited tasks, he or she stops trusting your overall maintenance strategy. Without credibility and compliance, you might as well not have a strategy at all.

Like OEM and vendor recommendations, generic task libraries can help you get started on a robust maintenance strategy, if (and only if) you carefully examine them first and only use the tasks that make sense for your particular equipment and operational needs.

  1. Failing to include a criticality assessment in your strategy decisions.

If you choose and define tasks without factoring in criticality, you run the risk of wasted effort and faulty maintenance. Think about it: If a piece of equipment is low on the criticality scale, you might be okay to accept a generic strategy and be done with it. But for equipment that’s highly critical to the success of your operations, you need to capture as much detail as possible when selecting and defining tasks. How can you know which is which without fully assessing the relative importance of each piece of equipment (or group of equipment) to the overall performance of your site?

  1. Developing maintenance strategies in a vacuum.

Sometimes, organizations will hire an outside consultant to develop maintenance strategies and send them off to do it, with no input from or connection with the maintenance team (or the broader parts of the organization). Perhaps they figure, “you’re the expert, you figure it out.” Here’s the problem: For a maintenance strategy to be successful, it must be developed within the big picture. You’ve got to talk to the mechanic who’ll be doing the work, the planner for that work, and the reliability engineer who’ll be responsible for the performance of that equipment, production, or operation. Their input is extremely valuable, and their buy-in is absolutely critical. Without it, even the best maintenance strategy can be met with resistance and non-compliance.

  1. Thinking of maintenance strategy development as a “one-and-done” effort.

For some organizations, the process of developing a maintenance strategy from the ground up seems like something you do once and just move on. But things change — your business needs change, the equipment you have on site changes, personnel changes, and much more. That’s why it’s vitally important to keep your maintenance strategies aligned with the current state of your operations.

In fact, a good maintenance strategy is built with the idea of future revisions in mind. That means the strategy includes clear-cut plans for revisiting and optimizing the strategy periodically. A good strategy is also designed to make those revisions as easy as possible by capturing all of the knowledge that went into your strategy decisions. Don’t just use Microsoft Word or put tasks directly into the system without documenting the basis for the decisions you made. What were your considerations? How did you evaluate them? What ultimately swayed your decision? In the future, if the key factors or circumstances change, you’ll be able to evaluate those decisions more clearly, without having to guess or rely on shaky recall.

If you’ve found yourself making any of these mistakes, don’t despair. Most errors and missteps can be addressed with an optimization project. In fact, ARMS Reliability specializes in helping organizations make the most of their maintenance strategies. Contact us to learn more.

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Author: Jason Ballentine

Many organizations believe that making sound maintenance decisions requires a whole lot of data. It’s a logical assumption — you do need to know things like the number of times an event has occurred, its duration, the number of spare parts needed, and the number of people engaged in addressing the event; plus the impact on the business and the reason why it happened. ????????????????????????????????????????

A lot of this information is captured in your Computerized Maintenance Management System (CMMS). The more detail you have, the more accurate results you can get from maintenance scenario simulation tools like Isograph’s Availability Workbench™. Unfortunately, your CMMS data may be lacking enough detail to yield optimal results.

It’s enough to make anybody want to throw his or her hands up and put off the decision indefinitely. If you do, you could be making a big mistake.

No matter what, you’re still going to have to make a decision. You have to.

The truth is, you can still do a lot with limited or poor quality data, supported by additional sources of knowledge. Extract any and all information you have available, not just what is in the CMMS. Document what you’ve got, then use it to make a timely decision that’s as informed as possible.

Don’t get caught up in the fact that it’s not perfect data — circumstances in the real world are hardly ever ideal. In fact, as reliability engineers, most of the data we get is related to failure, which is exactly what we’re trying to avoid. Actually, if we are tracking failures, having less data means we are likely doing our jobs well because that means we are experiencing a low number of failures.

The bottom line is: we can’t afford to sit and wait for more data to make decisions, and neither can you.

Gather as much information as you can from all available sources:

CMMS

In an ideal world, this is the master data record of all activities performed.  As discussed previously, that is almost never the case; however, this is an important starting point to reveal where data gaps exist.

Personal experience and expertise

There’s a wealth of information stored within the experience of people who are familiar with any given piece of equipment. Consider holding a facilitated workshop to gather insight on the equipment’s likely performance. Even a series of informal conversations can yield useful opinions and real-world experiences.

The Original Equipment Manufacturer (OEM)

Most OEMs will have documentation you can access, possibly also a user forum you can mine for additional information.

Industry databasese.g., the Offshore and Onshore Reliability Data Handbook (OREDA) and Process Equipment Reliability Database (PERD) by Center for Chemical Process Safety (CCPS)

Some information is available in these databases, but it’s generic — not specific to your unique site or operating context. For example, you can find out how often a certain type of pump fails, but you can’t discover whether that pump is being used on an oil platform, refinery, power station or mine site. Industry data does, however, provide useful estimates on which you can base your calculations and test your assumptions.

Capture all these insights in an easily accessible way, then use what you’ve learned to make the best decision currently possible. And be sure to record the basis for your decision for future reference. If you get better data down the road, you can always go back and revise your decisions — after all, most maintenance strategies should remain dynamic by design.

Don’t let a lack of data paralyze you into inaction. Gather what you can, make a decision, see how it works, and repeat. It’s a process of continuous improvement, which given the right framework is simple and efficient.

Availability Workbench™, Reliability Workbench™, FaultTree+™, and Hazop+™ are trademarks of Isograph Limited the author and owner of products bearing these marks. ARMS Reliability is an authorized distributor of those products, and a trainer in respect of their use.

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Author: Jason Ballentine

As with any budget, you’ve only got a certain amount of money to spend on maintenance in the coming year. How do you make better decisions so you can spend that budget wisely and get maximum performance out of your facility? ??????????????????????????????????????????????

It is possible to be strategic about allocating funds if you understand the relative risk and value of different approaches. As a result, you can get more bang for the same bucks.

How can you make better budget decisions?

It can be tempting to just “go with your gut” on these things. However, by taking a systematic approach to budget allocation, you’ll make smarter decisions — and more importantly you’ll have concrete rationales for why you made those decisions —  which can be improved over time. Work to identify the specific pieces of equipment (or types of equipment) that are most critical to your business, then compare the costs and risks of letting that equipment run to failure against the costs and risks of performing proactive maintenance on that equipment. Let’s take a closer look at how you can do that.

4 steps to maximize your maintenance budget

1.  Assign a criticality level for each piece of equipment. Generally, this is going to result in a list of equipment that would cause the most pain — be it financial, production loss, safety, or environmental pain — in the event of failure. Perform a Pareto analysis for maximum detail. 

2.  For your most critical equipment, calculate the ramifications of a reactive/run-to-failure approach.

  • Quantify the relative risk of failure. (You can use the RCMCost™ module of Isograph’s Availability Workbench™ to better understand the risk of different failure modes.)
  • Quantify the costs of failure. Keep in mind that equipment failures can affect multiple aspects of your business in different ways — not just direct hard costs. In every case, consider all possible negative effects, including potential risks.
    • Maintenance: Staff utilization, spare parts logistics, equipment damage, etc.
    • Production Impact: Downtime, shipment delays, stock depletion or out-of-stock, rejected/reworked product, etc.
    • Environmental Health & Safety (EHS) Impact: Injuries, actual/potential releases to the environment, EPA visits/fines, etc.
    • Business Impact: Lost revenue, brand damage, regulatory issues, etc.

For a more detailed explanation of the various potential costs of failure, consult our eBook, Building a Business Case for Maintenance Strategy Optimization.

3.  Next, calculate the impact of a proactive maintenance approach for this equipment

  • Outline the tasks that would best mitigate existing and potential failure modes
  • Evaluate the cost of performing those tasks, based on the staff time and resources required to complete them.
  • Specify any risks associated with the proactive maintenance tasks. These risks could include the possibility of equipment damage during the maintenance task, induced failures, and/or infant mortality for newly replaced or reinstalled parts.

4. Compare the relative risk costs between these approaches for each maintenance activity. This will show you where to focus your maintenance budget for maximum return.

When is proactive maintenance not the best plan?

For the most part, you’ll want to allocate more of your budget towards proactive maintenance for equipment that has the highest risk and the greatest potential negative impact in the event of failure. Proactive work is more efficient so your team can get more done for the same dollar value. Letting an item run to failure can create an “all hands on deck” scenario under which nothing else gets done, whereas many proactive tasks can be performed quickly and possibly even concurrently.

That said, it’s absolutely true that sometimes run-to-failure is the most appropriate approach for even a critical piece of equipment. For example, a maintenance team might have a scheduled task to replace a component after five years, but the problem is that component doesn’t really age -— the only known failure mode is getting struck by lightning. No matter how old that component is, the risk is the same. Performing replacement maintenance on this type of component might actually cost more than simply letting it run until it fails. (In these cases, a proactive strategy would focus on minimizing the impact of a failure event by adding redundancy or stocking spares.) But you can’t know that without quantifying the probability and cost of failure.

Side note: Performing this analysis can help you see where your maintenance budget could be reduced without a dramatic negative effect on performance or availability. Alternatively, this analysis can help you demonstrate the likely impact of a forced budget reduction. This can be very helpful in the event of budget pressure coming down from above.   

At ARMS Reliability, we help organizations understand how to forecast, justify and prioritize their maintenance budgets for the best possible chances of success. Contact us to learn more.

Availability Workbench™, Reliability Workbench™, FaultTree+™, and Hazop+™ are trademarks of Isograph Limited the author and owner of products bearing these marks. ARMS Reliability is an authorised distributor of those products, and a trainer in respect of their use.