Optimize RCM and PM. Leveraging MRO Analytics to Improve Asset Performance. An Oniqua Executive Brief

Transcription

1 Optimize RCM and PM Leveraging MRO Analytics to Improve Asset Performance An Oniqua Executive Brief

2 EXECUTIVE SUMMARY Optimize RCM and PM Leveraging MRO Analytics to Improve Asset Performance SITUATION: CHALLENGE: SOLUTION: RESULTS: Effective management of the maintenance function ensures reliability and affects business outcomes. At the same time, maintenance operations in asset-intensive organizations are under enormous pressure to trim costs while sustaining or increasing service levels and operational excellence. To achieve safety, reliability, compliance and cost management, many companies implement preventive maintenance (PM) and reliability centered maintenance (RCM) initiatives. These practices have proven to enhance reliability, efficiency and cost effectiveness howeve, PM and RCM initiatives are only as effective as the data and processes behind them. Analytics offer better visibility and control over maintenance performance and effectiveness, allowing maintenance teams to achieve continuous improvement in RCM and PM programs. With analytics, asset-intensive organizations can optimize maintenance frequency, match plans to relevant failures, evaluate predictive maintenance (PdM) plans for specific assets and more. Optimizing RCM and PM enhances equipment uptime, improves resource productivity and helps reduce maintenance, repair and operations (MRO) costs. MRO analytics help enable reliable, efficient, low-cost operation of critical assets and equipment and reliability affects business outcomes. In addition, MRO analytics allow you to standardize RCM and PM plans across your operations driving enhanced results.

3 Introduction: Information is useful, knowledge is power At its core, a cost-effective maintenance strategy addresses the dominant causes of equipment failure. It s a systematic approach to defining a routine maintenance program c mposed of cost-effective tasks that preserve important functions. Performing everyday activities well and eliminating non-value activities ensures a cost-effective maintenance strategy. By prescribing actions and standardizing processes, maintenance approaches like preventative maintenance (PM) and reliability-centered maintenance (RCM) help asset-intensive organizations eliminate low-value activities, drive out waste and optimize maintenance outcomes. But the challenges of where and how to trim costs while sustaining or increasing service levels and operational excellence exert enormous pressure on maintenance operations in asset-intensive enterprises. Using analytics to optimize PM and RCM can help mitigate much of the pain associated with this challenge. For maintenance, repair and operations (MRO) practitioners, MRO analytics enable standardization of RCM and PM plans across one or several operations. Optimizing RCM and PM enhances equipment uptime, improves resource productivity and helps reduce MRO costs. With the improved visibility into maintenance performance and effectiveness that analytics provide, maintenance teams can achieve continuous improvement in RCM and PM programs. With analytics, you can effectively: Optimize maintenance frequencies; match plans to appropriate failures; define costs, durations and variances Target plans that require skills development or procedural standardization; Evaluate predictive maintenance (PdM) plans or condition-based maintenance (CBM) plans for specific assets Pinpoint assets that would be better maintained with PdM or CBM plans. Advanced analytics go beyond simple query and reporting tools. By analyzing both current and historical data for patterns and relationships that might not be apparent otherwise, analytics can also prescribe recommended actions and help forecast future conditions. Figure 1 provides a view of how analytics can help asset management professionals easily visualize exactly how effective and efficient maintenance activities are, and which a eas are ripe for improvement. By leveraging analytics to focus actions and standardize processes, companies can quickly drive out waste, maximize time and eliminate nonvalue activities. 1

4 Optimizing RCM: Assess, analyze, optimize repeat To build the requirements for optimizing RCM and PM with analytics, you need to identify where and how PM and RCM programs are high functioning, have room for improvement or need to be evaluated for elimination. A formal value assessment process allows you to quantify current asset management processes, tools and techniques, and includes the following key steps: Establish a baseline Build action plans Monitor progress over time Identify gaps against industry best practices Develop effective action plans that address key performance gaps This process helps ensure positive results by: Instilling a culture of continuous improvement; Increasing awareness of maintenance as a competitive advantage; Enabling operational excellence. Plant Maintenance Benchmark Scores Support I Planners H Training J 10 Overtime G % Estimated Replacement Value A 5 0 F Inventory Service Planned Work Inventory Turn Preventative Maintenance Captured Work Figure 1: Analytics help you visualize exactly how effective and efficient your maintenance activ - ties are, benchmarked against best in class. You can easily identify focus areas for improvement. In this example, Preventative Maintenance and Planning already meet best in class standards, while the other functions require various levels of improvement to come up to best in class. B E C D Optimizing RCM takes into account the principles of an RCM practice, requirements of RCM tasks and the four key types of maintenance activities. Understanding RCM principles: RCM is function oriented; Seeks to preserve system/equipment function and not just operability RCM is system focused; Concerned first with maintaining overal system function instead of individual component function RCM is reliability centered; Focuses on failure rate and the risk with understanding of failure probability with aging assets RCM is a living system; Monitors and analyzes for continuous improvement RCM tasks must be: Applicable; Address the failure root causes Effective; Cost-effective while reducing the probability of failure 2

5 Four types of RCM activities RCM maintenance activities fall into four primary types: predictive (condition based), proactive (failure finding) preventive (time directed) and reactive (run-to-failure) Predictive (condition based) Utilize methods like trend analysis, pattern recognition, data comparison, tests against limits and ranges, correlation of multiple technologies and statistical process analysis; best for these asset conditions: Progressive degradation Eventual failure limit Critical and expensive Proactive (failure finding) Provide time to plan and schedule resources, materials and operations: Measure conditions against target standards and statistical process control (SPC) to prevent a failure Preventive (time directed) Designed to restore asset at fixed time interval Assets with known failure patterns Assets that wear out over time Assets that are consumable replacements Reactive (run-to-failure) Failure cost is less than the cost of PM or planned maintenance: Non-critical or inconsequential assets Assets with redundant systems Assets that have extremely low failure rates or can be replaced quickly Controlled replacement cost equals failure cost % Distribution Maintenance Strategy Maturity Predictive Proactive Preventive Reactive Figure 2: What s your maintenance maturity? [Where 5 = RCM / Optimized Maintenance] 3

6 Optimizing PM: Compliance, efficiency, effectiveness, cost control With analytics, you can develop standardized PM plans that make it easy to match PMs to appropriate failures and define current P costs, durations, and variances. Figures 3, 4 and 5 illustrate how PMs can be evaluated and optimized. By standardizing PM plans across maintenance operations, you can quickly and easily evaluate the effectiveness of current PM efforts and identify optimal PM frequency. And, you can detect and adjust those PMs that require skills development or procedural standardization. Analytics also help you address those assets and pieces of equipment that need PdM or CBM plans. Standardizing PM plans helps keep maintenance costs in line by optimizing PM frequency and eliminating ineffective PMs. Uncovering and enhancing PMs that need skills development or procedural standardization helps reduce duration and variance, which translates to lower maintenance costs, better equipment availability and improved resource productivity. Using analytics also allows practitioners to easily pinpoint assets that would be better maintained with non-invasive predictive maintenance (PdM) plans or condition-based maintenance (CBM) plans. Mandatory PMs are those required for warranty, regulatory and safety compliance, and will be optimized based on those parameters. Non-mandatory PMs are optimized based on need, design, procedure and/or frequency. The value assessment of existing PMs helps you manage key performance indicators (KPIs) to meet performance goals: Compliance Efficiency = actual labor hours / (actual labor hours + labor our variance) where max=1 Effectiveness = PM work load * 100 / (PM work load + BD work load) where max=100 Resource or capital intensive (labor vs. material cost) Criticality PM Compliance L M H Critical, Regulatory PMs Value PM Trivial PM Non Productive PM Excessive PM L M H Annualized PM Cost Figure 3: PM Justification: Segment PMs based on annualized cost and criticality to determine the value of PM or modify PM interval. Review PM Check for missing PM Improve Procedure Check Part Failure Increase Frequency Improve Compliance Effective PM Maintain Review PM Reduce Frequency L M H PM Effectiveness Figure 4: PM Integrity Eliminate the obvious and address actual need; PM effectiveness, compliance, on-time completion, PM Workload / (PM + Breakdown Workload) 4

7 With analytics, practitioners can more easily and accurately validate PM integrity: Presence of bill of materials (BOM) Parts availability against PM interval Conversion to non-intrusive PdM when possible PM procedure updates based on efficiency and effectivenes PM interval optimization when appropriate Criticality E D C B A PM Failure Predictable PM only if PM Cost<Breakdown Cost otherwise Run to Failure No PM Run to Failure PdM Failure Unpredictable L M H Failure Variance (Standard Deviation of MTBF) Figure 5: Identify predictive maintenance (PdM) candidates (non-intrusive maintenance) by relating the failure pattern to asset criticality to achieve low-risk, cost-effective maintenance Summary and conclusion: Optimizing RCM and PM through MRO analytics delivers measurable results in relatively little time. It enhances equipment uptime, improves resource productivity and helps reduce MRO costs in much more comprehensive ways than RCM and PM efforts alone. Oniqua Intelligent MRO extracts data from current RCM systems and applications to help optimize their performance, allowing you to standardize your current RCM and PM plans across your operations. Oniqua Intelligent MRO make it easier to optimize RCM and PM initiatives. For asset intensive enterprises, applying analytics in these two areas helps drive operational excellence and produces positive return on investment quickly. 5

8 About the Author Steve Pak has more than 20 years of supply chain, plant maintenance and operations management experience with Fortune 500 companies. In his role with Oniqua, Pak applies his background and experience with business process optimization and re-engineering to help Oniqua s clients leverage analysis, insights and best practices to optimize MRO operations and achieve greater efficiency and profitability. Try Oniqua with your own data. oniqua.com Contact Oniqua Australia Brisbane, Australia Level 5, 16 Marie Street P.O. Box 1119 Milton Brisbane Queensland 4064 Australia Phone: Perth Level Murray Street West Perth Western Australia 6005 Oniqua Europe Regent Centre, Regent Road Aberdeen, AB115 NS United Kingdom Phone: +44 (0) Americas Denver, USA 7900 E. Union Avenue, Suite 920 Denver, Colorado USA Phone: Santiago, Chile Av. Pedro de Vlavidia 555 Of Providencia - Santiago - Chile Phone: Africa Johannesburg, South Africa P.O. Box Parkhurst Johannesburg, 2120 South Africa Phone: +27 (0) Oniqua provides Intelligent MRO (maintenance, repair and operations) capabilities that are transforming the way Oil & Gas, Mining and Utilities companies manage their capital-intensive assets. Our unique cloud-based offering combines the world s most advanced MRO analytics technology with analyst services, consulting, master data cleansing and industry expertise to optimize the performance of materials management and operations & maintenance activities. Oniqua does the heavy lifting on behalf of customers so they can achieve rapid benefits in the form of reduced waste and costs, minimized risks, greater efficiencies and smarter decisions across their MRO operations. Oniqua is proud to serve many of the world s largest energy and resources companies, including BHP Billiton, ConocoPhillips, Dow, BP, Newmont Mining, Rio Tinto, Freeport McMoRan, Tennessee Valley Authority, Nebraska Public Power District and many others. Oniqua is owned by international oilfield support services company ASCO. The company employs over 2,500 people in four key regions, namely the Americas, Europe, Middle East & Africa and Australasia. The company currently has sales in excess of $1bn. Through Oniqua and its other businesses, ASCO offers a wide range of services including inventory and materials management, offshore supply base management, onshore oilfield support, environmental services, personnel and training, advisory and technical services as well as fuel services. ASCO s global headquarters is based in Aberdeen. OWNERSHIP AND COPYRIGHT The ownership and intellectual property contained within this document belongs to Oniqua Pty Ltd and cannot be replicated, copied or used without the written consent of Oniqua Pty Ltd. Product names mentioned within this document may be trademarks of their respective companies and are hereby acknowledged. Copyright 2016, Oniqua Pty Ltd. All rights reserved.