Tag Archives: Asset Maintenance

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.

By: Gary Tyne CMRP, CRL

Engineering Manager – ARMS Reliability Europe

Working for a global organization has taken me to some weird and wonderful places around the world. Different cultures, traditions, religions and people certainly enlightens you to the wonderful and colorful place we all call home.

I would say in most of these countries I have at some stage taken a taxi or at least been chauffeured by a driver in a customer’s company vehicle. These experiences have led to some interesting conversations on life, travel, politics, and football with some very knowledgeable and diverse taxi drivers. On the other hand, I have had drivers that have not spoken a word and have just delivered me to my destination in silence, even after trying to engage in conversation, their chosen dialogue is nil speak. bigstock--131191391

A recent taxi encounter occurred when I had just left my customer and was going to call for a taxi, when I spotted someone being dropped off at my current location. I asked the driver if he could take me to Dublin airport and he obliged.

This is when I met Mohammed, an immigrant from Kenya who had moved to Ireland 17 years ago. He was smiling and cheerful and had a generally happy persona about him. We discussed weather in Ireland versus Mombasa, we mentioned football briefly, and then we started to discuss cars. This occurred when a brand new Mercedes went past us in the fast lane and I passed comment on what a beautiful car that was.

Mohammed started to discuss the Toyota Corolla in which we were driving and how he loved his car for its level of reliability. I asked how many miles his vehicle had driven and he pointed out that he had covered over 300,000 miles since he purchased the car brand new in Northern Ireland. He went onto explain how he ensured that it was regularly maintained to a high standard with the best quality oil and original OEM parts being used when any replacements were required. The engine and gearbox were original and providing ‘you look after your car, it will look after you.’ Mohammed was proud of the length of service he had achieved from his vehicle and that the car had never let him down. However, as the vehicle operator he recognized the importance of regular maintenance and the use of the right quality parts. He also said that he only allowed one mechanic to work on his vehicle because he was very skilled and competent at his job and could not trust others to do work on his taxi.

Mohammed was also proud to be a taxi driver in Ireland and combined with his ‘Reliability’ story certainly made the trip to Dublin airport a memorable one. Mohammed did not know my job role and that I had spent over 30 years in Maintenance and Reliability, but he gave me a text book account of what is ‘Reliability’! I said goodbye to Mohammed after he let me take a picture of his mileage and car. I wished him luck and many more years of happy motoring in his reliable Toyota motor vehicle.

Sitting in the departure lounge my trip to the airport and conversation with Mohammed certainly made me think: mileage

  • Do we see this level of passion and ownership amongst today’s industrial operators?
  • Should Operators take more care for their assets, ensuring high reliability through a program of basic care?
  • How do we ensure the right levels of competence in our technicians?
  • How do we ensure that the correct specification and quality of parts are being purchased?
  • How do we ensure that maintenance is being performed at the right frequency on the right asset?

This ‘Reliability Tale from the Taxi’ may have also generated further questions in your own mind, for me, it provided me with  another great ‘Reliability’ story that I can share during one of our global reliability training courses.