Plant Maintenance 2011 in the Middle East 4 th Annual Meeting. ConMoto Consulting Group Nils Blechschmidt (Dipl.-Ing., MBA)

Transcription

1 Plant Maintenance 2011 in the Middle East 4 th Annual Meeting ConMoto Consulting Group Nils Blechschmidt (Dipl.-Ing., MBA) Best Practice oriented, interactive Optimisation of Maintenance Activities between Production and Maintenance in the Chemical Industry Abu Dhabi, January 2011 We create advantage

2 ConMoto Consulting Group - Overview Economic and strategic relevance of Maintenance Experiences in successfully implementing Best Practice oriented optimisation of Maintenance activities in the Chemical Industry Results of ConMoto Best Practice oriented Maintenance optimisation programs in the Chemical Industry Selected ConMoto references for Best Practice Maintenance and Asset Management 2

3 ConMoto basic information 20 years of experience The ConMoto Consulting Group has been supporting companies to secure and improve their competitiveness and sustainability for more than 20 years. International expertise Around 80 consultants, distributed across our offices in Munich, Stuttgart, Vienna and Shanghai, work expertly and with commitment to realise the best possible benefits for our clients. Implementation strength Our consultants high qualifications, supplemented by many years of professional experience, guarantee the pronounced implementation skills that are necessary to realise the solution concepts we develop together with our clients. Sustainability Efficient structures and processes, strong innovation skills, effective management and sustainably mobilised staff are the project targets pursued within the context of a pioneering strategy. Practical orientation Years of experience enable us to implement innovative concepts with the knowledge of what is feasible together with our clients. We justify your confidence We create advantage is the guiding principle of our successful and implementation oriented approach. 3

4 Specifics in Maintenance Optimization by ConMoto In the past five years ConMoto has carried out more than 500 consultancy projects throughout Europe and Asia in the Maintenance and Asset Management field. Projects in industrial companies with expert knowledge about maintenance procedures from all leading sectors for high performance production and operating systems 83 companies lead us to benchmarking results across the following industrial sectors: Process industry (chemical industry, steel industry, pharmaceutical industry, food industry, textile industry etc.) High tech industry (semi-conductor industry, aerospace industry, high precision technology, medical technology etc.) Other industries (automotive industry, automotive suppliers, mechanical engineering, construction materials industry) To define the levers for sustainable optimization of maintenance systems the MaintenanceScoreTest is used. It was developed by ConMoto and has been brought to an ever high degree of perfection over the past 15 years in various industrial sectors. 4

5 ConMoto Consulting Group Economic and strategic relevance of Maintenance Experiences in successfully implementing Best Practice oriented optimisation of Maintenance activities in the Chemical Industry Results of ConMoto Best Practice oriented Maintenance optimisation programs in the Chemical Industry Selected ConMoto references for Best Practice Maintenance and Asset Management 5

6 Strategic impact of Maintenance in an economical context Maintenance costs in % of GDP Developed Regions Middle Europe Direct Maintenance costs/gdp for machines, infrastructure and traffic systems 13 20% Direct Maintenance Costs / GDP Personnel cost Expendable material, spare parts Maintenance systems (sensor technology, IPS systems, cross-linking...) External services + x 2 3 Indirect Maintenance Costs Machine run times Smaller quantities Inability to deliver Quality losses Legal consequences Image loss Stock program costs, spare parts Replacements of investments The quality of Maintenance processes has a strong impact on highly developed economical systems 6 Sources: German Federal Statistical Office, European Statistical Office (Eurostat)

7 Maintenance processes have a high impact on production performance Maintenance processes Overall Equipment Effectiveness (O.E.E.) Preventative maintenance Repair Inspection Technical optimisation Spare part management Supply Chain Utilisation grade (U G ) 0,93-0,85 0,95-0,7 0,96-0,9 Break-downs Set-up Organisational down times x Performance grade (P G ) Other technical incidences Run time reductions x Quality grade (Q G ) Scrap Rework Direct Maintenance costs O.E.E. = 0,55 0,88 Indirect Maintenance costs total losses in production due to technical failures 7 Can be strongly influenced by maintenance Can be partly influenced by maintenance

8 ConMoto Consulting Group Economic and strategic relevance of Maintenance Experiences in successfully implementing Best Practice oriented optimisation of Maintenance activities in the Chemical Industry Results of ConMoto Best Practice oriented Maintenance optimisation programs in the Chemical Industry Selected ConMoto references for Best Practice Maintenance and Asset Management 8

9 ConMoto Best Practice Maintenance initial situation and target Costs Optimum Process industry average * 5,2 ConMoto Maintenance Excellence Maintenance Effort Level Disorganised Worst Case Bringing up the rear Level Reactive Level Proactive Midtable Level Integrating all relevant processes Levels of Maintenance and Asset Management Level Life Cycle Asset Management Leading group Level Life Cycle Wooden spoon Stragglers Lower midtable Upper midtable Leaders Innovators Best Practice Asset Innovation ConMoto Best Practice Maintenance enables a highly effective improvement of Maintenance and asset management 9 * Source: ConMoto study on value oriented maintenance and asset management of manufacturing companies. The study comprises a total of 47 plants in the process industry

10 ConMoto s Best Practice oriented Maintenance optimisation programs enable the realization of strategic value drivers RONA 1) Value contribution of Maintenance EBITDA Capital requirement Equipment efficiency Maintenance costs Fixed assets Current assets Contribution margin from extra sales Lower production costs Lower personnel/ material costs Optimise CAPEX 2) Reduce inventories Maintenance processes as central value driver Repair 1 Unplanned repair 2 Planned repair Maintenance & Inspection 3 Maintenance & inspection/ Preventive Maintenance Technical optimization 4 5 Optimisation/ improvement Investment projects/ retention 6 7 Statutory and repeating calendar year audits Coordinating external companies Material management & procurement ) Return on Net Assets; 2) Capital Expenditure (Investment expenditure for plant and machinery)

11 ConMoto Best Practice Maintenance Methodology - Overview Interactive Analysis ConMoto MaintenanceScoreTest enables comparison with Best Practice and activates people Main modules for implementation Impact if incidence - y low high low high Replacement cost - x low highh Probability of incidence Risk and Reliability (R 2 ) Based Maintenance Strategy identifies adequate Maintenance strategies and measures to increase plant efficiency Ratios (KPI) and Visualisation create continuous transparency on all hierarchy levels and lead to further optimisation Autonomous Maintenance strengthens ownership of operators and creates the basis for further optimisation Systematical Contractor Management realises cash out savings and strengthens internal key competences Ersatzteil-Supermarkt Optimal Spare Part Management optimises costs and secures availability Efficient Capacity Planning and Scheduling improve usage and efficiency of staff capacities and create transparency on performance If necessary supplements through Turbo Set Up reduces loss of production and increases flexibility Achievement-oriented Incentive and Remuneration Systems increase motivation on all hierarchy levels Flexible Working Time Models enable breathing and flexibility of internal capacities 11

12 ConMoto MaintenanceScoreTest - a 5 day cross functional team event to reveal and quantify improvement potentials and activate people for relevant changes 1 Process Analysis 2 Job Activity Analysis 5 Value Creation Areas (VCA) Benefit high Contract management I KPI & - Visualization Maintenance strategy / systematical Optimization Standardization Best Practice Contract management II Capacity / Time management / Scheduling Remmuneration / working time system middle Integrated IT - System I Material management Transparency Procurement Integrated IT - System II low Organization Analysis of key processes Identification of weak spots Allocation of resources along key processes Short term (until 3 month) Mid term (3-6 month) Long term (6-12 month) Set up of value creation areas Prioritisation Implementation concepts 3 Strengths & Weaknesses 4 Bewertung (Punkte) Stä rken Schwäc hen Gute Leistungen Teamarbeit Motivation Methodik und Ressourcen Administrativer Aufwand Lange Wege Aufwendige Abstimmung Platzverh ältnisse Sonstiges Best Practice Scoring Evaluation of Potentials Action fields Actionfield 1 Maintenance stratgy and systematical optimization Actionfield 2 KPI and Visualization Actionfield 3 Standardization Best Practice Actionfield 4 Contractor management Actionfield 5 Capacity / time management / scheduling influenceable costs Potentials Maintenance costs X Mio 45 % für Störbehebung thereof % Reducing of Losses in O.E.E. reducing maintenance costs 3x Labour costs X,Y Mio influencable 30% = 2 Mio thereof 10-20% External service costs NN Mio therof labour 60%= MN Mio influencable 50% = ZZ Mio thereof 10-20% Maintenance costs Potential evaluation (TEuro) xxx yyy nnn mmm zz zz yyy - yyy Produktions - ausfallkosten 1,2 2,8 3,6 7,4 Identification and scoring of strengths and weaknesses Identification of improvement areas Concepts for realisation Quantification of saving potentials on a VCA base total 4,8 10,2 12

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14 Activity fields are identified and evaluated - workshopteam presents results to the management 5 Action fields Benefit Contract management I Maintenance strategy / systematical Optimization Contract management II Capacity / Time management / Scheduling 1 Process Analysis 2 Job Activity Analysis high middle KPI & - Visualization Integrated IT - System I Material management Transparency Standardization Best Practice Procurement Entlohnung / workinghours system Integrated IT - System II Management presentation low Organization Short term (until 3 month) Mid term (3-6 month) Long term (6-12 month) Analysis of key processes Identification of weak spots Allocation of resources along key processes Determination of action fields for improvements Prioritisation Realisation guide/teams 3 Strengths & Weaknesses 4 Bewertung (Punkte) Gute Leistungen Stärken Teamarbeit Motivation Methodik und Ressourcen Schwächen Administrativer Aufwand Lange Wege Aufwendige Abstimmung Platzverh ältnisse Sonstiges Identification and scoring of strengths and weaknesses Best Practice Scoring Identification of improvement areas Concepts for realisation 6 Evaluation of potential Action fields Actionfield 1 Maintenance stratgy and systematical optimization Actionfield 2 KPI and Visualization Actionfield 3 Standardization Best Practice Actionfield 4 Contractor management Actionfield 5 Capacity / time management / scheduling influenceable costs Potentials Maintenance costs X Mio 45 % für Störbehebung thereof % Reducing of Losses in O.E.E. reducing maintenance costs 3x Labour costs X,Y Mio influencable 30% = 2 Mio thereof 10-20% External service costs NN Mio therof labour 60%= MN Mio influencable 50% = ZZ Mio thereof 10-20% Maintenance costs total Potential evaluation (TEuro) xxx yyy nnn mmm zz zz yyy - yyy Produktions - ausfallkosten 1,2 2,8 3,6 7,4 4,8 10,2 First estimate on achievable potentials by workshop team members 14

15 Start of implementation phase Definition of metrics and organization Maintenance Score Profile Metrics / Organization Project example Benefit Nutzen Cash in effectual Cash In wirksam 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aufwand Effort Cash Out wirksam Cash out effectual Evaluation of Potentials influenceable Action fields Potential evaluation costs (TEuro ) Potentials Actionfield 1 Maintenance costs X Mio Maintenance stratgy and 45 % f ür St örbehebung xxx yyy systematical optimization thereof % Reducing of Actionfield 2 Losses in O.E.E. nnn mmm KPI and Visualization reducing maintenance costs 3x Labour costs X,Y Mio Actionfield 3 influencable 30% = 2 Mio zz zz Standardization Best Practice thereof 10-20% External service costs NN Mio Actionfield 4 therof labour 60%= MN Mio yyy - yyy Contractor management influencable 50% = ZZ Mio thereof 10-20% Actionfield 5 Maintenance Produktions - costs Capacity / time management / ausfallkosten scheduling 1,2 2,8 3,6 7,4 total 4,8 10,2 Potential and cash flow analysis: significant cost savings even without taking losses in O.E.E. taking into account Structure of project controlling Project plan and - organisation Alignment of project objectives with the target agreements of the management Project almost cash neutral during start-up cash positive already after few months 15

16 5 ConMoto Risk and Reliability based Maintenance Strategy a systematic approach to minimise plant failure rates Impact if incidence - y low high low high Replacement cost - x low highh Probability of incidence Anzahl Störungen Alkyl 1 Alkoxy 2 Alkyl 2 Alkoxy 3 BS15 V-Reaktion 1 V-Reaktion 2 Alkoxy 1 V-Destillation 2 Neutralisation Vakuumdest. 4 HCL-Verdichter TT-Kondensation Quelle: Daten Hr. Richter V-Destillation 1 Vakuumdest % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Impact if incidence - y low high low 3 high low highh Probability of incidence Methode Maschine Mensch Falsches Falsche Vorgabe Sperrmedium aus Standardisierungsgründen nicht richtig kontroliert Stand Sperrmedium Materialverschleiß möglich am Ring Sperrdruck war 3 Bediener können bar zu hoch Druck verändern Elastomer- n.n. Spezifikation prüfen Material Milieu Vorschläge für Maßnahmen a) Schwingungsmessung einführen (prüfen, ob Rührer sich aufschaukelt wg. zu geringem Sperrmediumstand) b) Periodischer Wechsel des Gleitdichtrings c) Visualisierung am Sperrdruck optimieren (optimaler Sperrdruck) d) Fehlersichere Nachfüllung des Sperrmediums sicherstellen Gleitringdichtung undicht Activity Database Management Reports Bottom-Line Effect by Quarter EBITDA Ramp-upForecast Acitivities late or due EBITDA Slippage Statistic fault analysis/ Pareto rule Identification of critical units, equipment and components by statistical analysis of maintenance records: Failure rates Repair costs Losses in O.E.E. Replacement cost - x Maintenance Strategy ConMoto Maintenance Strategy Cube : Evaluation of target maintenance strategies for critical equipment and components by analysing Failure rate Total cost of failure Replacement value Cause / Effect Analysis & Implementation Activities Detailed failure analysis of each critical equipment Ishikawa parameters used: Human factor Equipment Process Material Environment Determination of precise activities for implementation of target strategy Identify Troublemakers on equipment level Reduction of failure rates between % Implementation/Tracking Evaluation of saving potentials for each acitvity regarding Direct maintenance costs Reduced O.E.E. losses Implementation schedule for each equipment Rigorous tracking of timely implementation 16

17 KPI s for Best Practice oriented Maintenance have to correlate with relevant value drivers in operations Value drivers in operations and Maintenance related KPIs EBITDA Capital Employed Project example Plant Anlageneffizienz Plant Effectiveness efficiency Maintenance Direct IH costs - Kosten Costs Inventories Bestände Stocksc CAPEX Contribution Production Costs - Instandhaltungskostenrate Maintenance Costs Rate Umschlagsziffer Turn around of spare Ersatzteile parts O.E.E. O.E.E. Reparaturanteil Repair Rate KPIs directly linked to rapid cash flow improvement Autonomic Autonomer Instandhaltungsanteil Maintenance Rate Fremdleistungsanteil Contractor Service Rate 17

18 Cockpit Structure of KPI s ensures Transparency, Visualisation and Communication Well-balanced KPI system Identification of KPIs Order Auftragsmanagement Management Volume Auftragsbestand of Orders Reaktionszeit Response time Dringlichkeitsrate Rate of urgency Equipment efficiency RONA Value contribution of Maintenance EBITDA Maintenance costs Fixed assets Capital requirement Current assets Effectiveness Effektivit tskennzahlen oriented Cost Wirtschaftlichkeit effectiveness/ KPIs Profitability Cockpit-Concept Top-Down-Approach of the main Value driver of Maintenance Excellence with dedicated Visualisation and Communication Project Example Contribution margin from extra sales Repair 1 Unplanned Repair 2 6 Planned Repair Lower production costs Statutory & repeating kalendar year audit Maintenance Processes as core Value driver Maintenance & Inspection 3 7 Maintenance & Inspection Preventative Maintenance Contractor Management Management level Steering level Operative level Head of departments/ BUs, TM, Site management, Operations Manager, Head of Operations Support, Controlling, Site management, Plant assistents, Engineer., Technicians, Craftsmen, Chemical plant operators, TBM, Supervisors, Lower personnel / material costs KPI Pyramid O.E.E. (U.E.E.) O.E.E.(U.E.E).- Waterfall diagram losses Productivity Degree of efficiency of Maintenance Share executed by external parties Share of autonomous Maintenance Failure rate Volume of Maintenace orders & proposition of capacity Optimise CAPEX 8 Quality of planned time Technical Optimisation 4 Optimisation / Improvement 5 O.E.E. Instandhaltungskostenrate Cost Rate (MTTR) Wirtschaftlichkeitsgrad Degree of efficiency Meantimebetween Vorbeugeanteil Preventive share Failure (MTBF) Ausfallkosten Cost of Maintenance Meantimeto to Repair Failure Maintenance Cost rate Preventive share Rate of urgency Investment projects & retention Materials management & Procurement Reduce inventories Adherence of Budget Range of coverage of material stocks MTTR MTBF 18

19 Feedback loop optimisation requires leadership efforts - KPIs and teamboard visualisation are supportive tools only Optimizing feedback loop Feedback Loop Rules Correcting automated feedback loop Secondary KPI Primary KPI Measures Required Leadership Explanation and discussion of team board content by periodical direct talks with shopfloor employees Giving an understanding of correlations of Controlled parameters Targets and limits Deviations observed Discussion of causes for deviations and failures and of adequate counter measures Development of improvement and optimisation measures Discussions of progress in improvement initiatives and programs 19

20 Autonomous Maintenance in strategic context - description and targets Autonomous maintenance means that production employees make simple maintenance and repair activities after instruction and/or training independently. Complex Maintenance activities or work which require special tools, large co-ordination expenditure or high expertise remain further in the field of the Maintenance Department. With Autonomous Maintenance three fundamental targets are pursued 1. Increase of plant availability 2. Creation of free capacities in the Maintenance Department in order to retain core competencies in-house 3. Insourcing from currently outsourced Maintenance activities to reduce cash out 20

21 Atmende Durchführung einfacher IH-Leistungen durch externe Dienstleister bzw. die Produktion Insourcing von Kernkompetenzen Outsourcing von Nebenkompetenzen Reduzierung von Cash-out Übernahme von bislang extern erbrachten IH-Aufgaben durch eigenes Personal Der Fokus der ext. Dienstleister liegt auf geringwertigen Nebenkompetenzen und der Abdeckung von Spitzenlasten Verschieben einfacher IH-Leistungen Stärkung der eigenen Technik Nachhaltiges Insourcing von Kernkompetenzen und Schlüssel- Know-how zur Optimierung der O.E.E. Verlagerung von Nebenkompetenzen und einfachen IH-Leistungen auf externe Dienstleister bzw. die Produktion 3-5% der Arbeitszeit - Entlastung durch 5S - Beseitigung von Verschwendung Erhöhung der Anlagenverfügbarkeit Höhere Eigenverantwortung der Produktionsmitarbeiter erhöht die Identifikation mit den Anlagen Besseres Know-how und Gespür der Produktionsmitarbeiter für die Anlagen Weniger Ausfälle und schnellere Störbehebung Contractor management Leverage for generation of value Reduzierung Cash-out Autonome IH Externer Dienstleister Eigene Instandhaltung/ Technik Produktionsbetrieb Insourcing of simple maintenance activities directly to the areas Project example Insourcing of core competencies Outsourcing of secondary competencies Shift of simple Maintenance activities Relief by 5S External contractor Outsourcing of secondary competencies and peak demand Insourcing of value added core competencies Own Technique (or internal contractor) Discharge of technique by decrease of breakdown frequency (maintenance strategy) Shift of simple activities into the enterprises (Autonomous Maintenance) Outsourcing of secondary competencies and peak demand Production Relief by 5S standards Autonomous Maintenance for simpler activities 21

22 Systematical spare part management Complete inventory controlling Fast access Demand oriented organisation of storage (decentralised/ central) Stock inventories defined by economical risk assessment (pro-active calculation of stock levels) Pre-assembly/presetting to reduce mean time to repair Spare part storage Failure/ Wearing Spare part demand Spare part logistics Removal defective part Installation spare part Purchasing process Fast/clear identification of required components Efficient procurement process Frame agreements Reduction of purchasing costs Reduction of replacement times Repair/Retrofit of replacement parts Service oriented plant design General design of spare parts engineering, standardisation and modularisation Efficient spare part management is about the most economical way to ensure the availability of required components in defined quality and delivery time 22

23 Ensure the needed Maintenance capacities Holiday Production Planning Shift Model / Working Time Models Sickness / Non-availability Capacity planning / Personnel planning Defined Level of Peak Demand Re-occurring work Inspections Plant shut-down Maintenance Strategy: reglementary preventive corrective Capacity planning has also to reflect non planned correction of defects and small repairs! 23

24 ConMoto Consulting Group Economic and strategic relevance of Maintenance Experiences in successfully implementing Best Practice oriented optimisation of Maintenance Activities in the Chemical Industry Results of ConMoto Best Practice oriented Maintenance optimisation programs in the Chemical Industry Selected ConMoto references for Best Practice Maintenance and Asset Management 24

25 Overall ConMoto Best Practice oriented project achievements in Chemical Industry Direct Maintenance Costs Savings range around % Reduction of spare parts inventory by % Direct Maintenance Costs Reduced direct costs Less unplanned breakdown intervention Improved preventive maintenance Autonomic maintenance Technical improvements Optimized contractor management Cost Current position (option I) Optimum Current position (option II) Maintenance Effort Key Performance Indicators Balanced score card optimizing budget planning and day-to-day resource management on all hierarchy levels Direct costs prior to optimization O.E.E.losses prior to optimization postoptimization postoptimization Losses in O.E.E. Improved plant availability Improved performance rate Improved process stability Less scrap and rework Losses in O.E.E. Increase in plant effectiveness of % Lead time reduction up to 50 % Systematical development of Best Practice Maintenance Methodology and intensive employee activation and development 25

26 ConMoto Project Examples in Chemical Industry Projectexample Example 1: Major speciality chemicals site MaintenanceScoreTest scoring result 5.4 Initial estimate identified efficiency improvements of 7-14 % of total Maintenance costs expected breakeven in cash flow scenario after 4 months Project achieved 14 % reduction of direct Maintenance costs within one year Reduction of failure rates of key equipment between 40 50% Savings Cash in Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Project costs Cash Out Example 2: Leading European producer of speciality polymers MaintenanceScoreTest scoring result 6,3 and 4,9 (2 sites) Project achieved 16 % cost reduction within one year and generated cash up from project start Sustainable reduction of external services of more than 30 % Savings Cash in Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Project costs Cash out 26

27 ConMoto Consulting Group Economic and strategic relevance of Maintenance Experiences in successfully implementing Best Practice oriented optimisation of Maintenance Activities in the Chemical Industry Results of ConMoto Best Practice oriented Maintenance optimisation programs in the Chemical Industry Selected ConMoto references for Best Practice Maintenance and Asset Management 27

28 Selected ConMoto references for Best Practice oriented Maintenance and Asset Management 28

29 Your contact Dipl.-Ing., MBA Nils Blechschmidt Senior Partner Tel.: Fax: ConMoto Consulting Group GmbH Boschetsrieder Str Munich Germany Dr.-Ing., MSc Marc A. Heinisch Managing Director Tel.: Fax: Heinisch@conmoto.at ConMoto Consulting Group Ges.m.b.H Schottenring Vienna Austria 29