FIXING MAINTENANCE AT PORT WARATAH COAL SERVICES. Presented by Peter Morrison

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1 FIXING MAINTENANCE AT PORT WARATAH COAL SERVICES Presented by Peter Morrison

2 About PWCS Port Waratah Coal Services operates 2 coal loading terminals in the Port of Newcastle NSW Coal is delivered by train, stacked, blended and loaded onto ships for export Combined capacity of the terminals is 80M tonnes per year Coal sourced from about 20 mines in the Hunter Valley region Most coal goes to Asian customers PWCS is a 24 x 7 operation with capacity to allow scheduled machine outages for planned maintenance

3 Port of Newcastle NSW

4 10,000TPH Reclaimer

5 8,500 TPH Shiploader

6 Presentation Outline 1. A History of CMMS at PWCS. 2. Maximo 4i implementation 3. Maintenance Management

7 Maximo V3.03 Implemented No link to Financials or Stores / Purchasing software Maximo main uses: Initiate PMs. Record some corrective maintenance work. Record some breakdowns. Record some equipment specification data

8 ISSUES: Maximo V3.03 Implemented (cont.) 1000s of open Work Orders progress unknown. No detail of maintenance costs of machines. Inefficient Stores management. No system to use data to reduce breakdowns. <6 regular users across the company. Maximo source code modified thus PWCS were captives of the implementation contractor.

9 Other Issues High exposure to breakdown Operations Planning Dept. had no confidence in maintenance making gaining maintenance access to equipment difficult Poor maintenance morale due to decline in equipment condition and other factors Use of contractors restricted by union pressure Poor PM completion rates PMs not well integrated

10 Maintenance Business Constraints Coal delivery driven by mines Rail operations impacted by RIC outages and other rail traffic Ship arrivals and departures dependant on weather and tides Maintenance planning is critical to minimise delays to mine, rail and ship operations

11 Fixing Maintenance Mar 99 decision to investigate implementation of SAP. Aug 00. Scoping study completed for SAP implementation. SAP rejected as a solution for PWCS Nov 00. Study of other software options. (Must integrate to Oracle 11i). Maximo 4i selected. Mar 01 Maintenance organisation re-structured with defined accountabilities Apr 01 Re-implemented Maximo 3.03 as first step in the cultural change process. Apr 02 Maximo 4i implemented.

12 Maximo 3.03 Re-implementation Used re-implementation as a catalyst for cultural change Basic principle: No Work Order = No Work Defined organisation accountabilities Defined maintenance terminology eg breakdown, work type Introduced a Work Flow system Revamped planning and scheduling systems Basic performance measures introduced

13 Terminal Organisation Chart Terminal Manager Operations Supt. Maintenance Supt. Engineer Elec. Supv. Mech. Supv. Scheduler Mech. Tech. Shift BMs, PMs Shift BMs, PMs Planner Elec. Elec. Tech. Day-work PMs, CMs Day-work PMs, CMs Execution of weekly work schedule Repair of BMs Monitor machine performance Planner Mech. Planning & Scheduling work Management of data base BM Root Cause investigation & elimination. Monitor PM effectiveness Technical advice & research

14 Work Request raised WAPPR Basic Workflow Breakdown N Y BM Approved Requests WPLN Maintenance Planning PLN CM Work ready for scheduling. APPR Preventive Maintenance WSCH PM Maintenance Scheduling APPR Work execution INPRG Work Recording and Analysis COMP

15 Initiator Work Request Breakdown? Yes INPRG Maintenance Planner WAPPR No Review W/Os 'WAPPR' via Saved Query Pass vetting? Yes Preliminary Planning (5mins) No 'CAN' Originator PWCS Maintenance Workflow Maintenance Maintenance Scheduler Supt. Generate Maximo PMs. RESCH WSCH Circulate Preliminary Schedule for review. Weekly Planning Meeting. Maintenance Supervisor Set new target start date. No If PM, cancel? No 'CAN' Review BM' W/Os Tradespeople Start Maximo Workflow WAUTH Process Inbox OK to Schedule? Yes No Work Complete? Yes WPLN Weekly review of W/Os with Maintenance Supt. PLN WPLN Approved? No Print Supervisors Weekly Control Sheets and W/Os for next week. INPRG Manage work completion to weekly Schedule. Carry out activity per W/O. Detailed Planning APPR 'CAN' Originator CLOSE W/O Complete W/Os.

16 What Benefits From Re-implementing Maximo 3.03? Retraining meant more people using the system so computer skills increased. (Many older trades had few computer skills. Some still struggle.) Allowed support systems for work management to be established and trialled. More system use meant more informed ideas on what was needed for a replacement.

17 Maximo 4i Implemented April 1, 2002 Maintenance Stores Purchasing Contractor Management Seamless Interface General ledger Invoicing Other Accounting stuff MAXIMO 4.1 ORACLE 11i

18 Maximo 4i Implemented April 1, 2002 (Cont.) Maximo Location/ Equipment Structure completely revamped. PM program rewritten and rescheduled using RCM Turbo. Stores catalogue rewritten using Auslang (7,400 items). Equipment parts list items researched and entered (25,000+) Crystal Reports selected as the report writer package.

19 Maintenance Management

20 PM outage based on 8 week cycle. Basic PM Outage sequence assumptions and timing diagram Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 RE2 Slew RE4 Slew ST 1 SL 1 RR 2 RE 3 ST 3 SL 2 PA04 PA11 PA02 PA03 PA06 PA12 Wednesday Wednesday Wednesday Wednesday Wednesday Wednesday Wednesday Wednesday 03-Dec Dec Dec Dec Dec Jan Jan Jan-04 ST1 24W 2x4 CEP0177 SC1 Conveyor 16W 2x4 CEP0160 SL1 Ops Checks 24W 2x6 CEP0211 SB2A Bin Lev 24W 2x2 CEP0048 RC10 Convey 24W (1) 2x5 CEP0113 RC11 Convey 24W (1) 2x5 CEP0117 SC2A Convey 16W (1) 2x4 CEP0163 ST3 24W (1) 2x4 CEP0184 SC8 Convey 16W (1) 2x4 CEP0176 SL2 Ops Checks 24W 2x6 CEP0212 OC5 Conveyor 16W 2x4 CEP0010 PWCS forward maintenance plan published 4 weeks in advance to mines and shippers OC4 Conveyor 16W (1) 2x4 CEP0008 WC3 Weigher 24W (1) 2x2 CEP0197 Road F1-8 24W (1) 2x4 CEP0093 Road F W (1) 2x10 CEP0097 RC10 Weigher 24W (1) 2x2 CEP0112 OC2 Conveyor 16W 2x4 CEP0006 WC4 Weigher 24W (1) 2x2 CEP0199 SB2B Bin Lev 24W 2x2 CEP0094 RC10 Sampler 24W 2x4 CEP0015 ST1 Lube 8W 2x4 CML0023 SL1 Lube 8W 2x8 CML0001 PA02 Lube 24W 2x6 CML0008 RE3 Lube 8W 2x6 CML0015 ST3 Lube 8W 2x4 CML0025 SL2 Lube 8W 2x8 CML0002 ST1 Belt Cleaner 24W 2x4 CMP0182 SL1 Mech Part 2 24W 3x8 CMP0264 TC9 Convey 24W 2x3 CMP0044 RE3 Mech 24W 3x10 CMP0140 TC7 Convey 24W 2x3 CMP0042 SL2 Mech Part 1 24W 3x8 CMP0017 SL1 Boom Hoist Latch 24W 2x2 CMP1015 DS Hopper Structural Insp 24W 2x10 CMP0067 TC8 Convey 24W 2x3 CMP0043 SL2 Boom Hoist Latch 24W 2x2 CMP1016

21

22 Basic Work Order Management Planner Schedules work by date Supervisors review scheduled work 2 weeks in advance Terminal manager signs off on coming week outages Supervisors use check list to report work completion at weeks end Operations sign over machines for outage - maintenance sign back Uncompleted work can only be rescheduled or cancelled cannot be forgotten

23 Breakdown Elimination Emphasis on scheduled completion of PMs Breakdown data reviewed weekly by Maintenance Team. Repetitive BMs identified for follow-up Top 10 BMs by frequency and severity measured and reviewed monthly with General manager Unresolved repetitive breakdowns investigated for elimination PM system continually updated as result of BM investigation

24 The Results From Fixing Maintenance Work Order progress can be followed using the W/O Status Machine costs are available via Crystal reports from Oracle. Individual Work Order costs also in Maximo Materials are reserved in the Warehouse for particular jobs Breakdown management system in place with declining BM frequency and severity Users include all trades, Contractors, Engineers, Stores, Purchasing.

25 The Results From Fixing Maintenance (cont) Improved credibility with Operations Planning means more outage access Vastly improved maintenance morale Improved contractor payment system reduced PWCS workload and speeded up payments Ship Loading records set No longer captive to the CMMS implementation contractor

26 Lessons Learnt A CMMS needs support from General Manager level A CMMS provides the tools to focus maintenance resources where they can add the most value Stick to Out of the Box software The cultural change process is critical A disciplined work management system is essential

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