Reliability:  Next Generation  Asset Management James Robert Dickens, Ph.D. Temple-Inland Inc. Forest Products Group Diboll, Texas
What is “Reliability”? Let’s define reliability as the readiness of a machine to produce first-run quality at design capacity for the expected lifetime of the asset. Unreliability is easy to spot:  Machines broken down Machines running below design capacity Machines not producing first-run quality  Machines running below design capacity  and  not producing first-run quality
Functional Failure “Functional failure” occurs when the machine is still operating, but at reduced capacity or quality.
What is the Purpose of Maintenance? There are two basic ways to approach maintenance: Fix what’s broke  Reactive – restore capacity Every day is full of surprises Lots of “What happened?” Improvement means reacting faster Keep equipment in like-new condition Proactive – preserve capacity Work is planned days or weeks ahead of time Lots of “What if?” Improvement means avoiding breakdown
Maintenance as Culture Maintenance reflects the culture of the organization. And, maintenance is part of the culture of the organization. In order to fundamentally change maintenance, there must be a culture change.
Maintenance as Culture The journey toward reliability is more than  implementing a set of tools. In other words, reliability is more than just a program.
Management of Change Three important points about change: Change always takes time Change is always difficult Change takes commitment and leadership at all levels Leadership requires vision – a clear picture of the destination – and the ability to effectively transmit that vision to others.
Topics of Discussion Maintenance progresses from reactive to proactive Culture change is driven in part by metrics The maintenance organization forms a cohesive system Roles and responsibilities are clearly defined Improvement requires an ongoing investment in capabilities Case studies illustrate the value of condition monitoring
Stages of Progress
Stages of Progress The journey toward reliability tends to progress in several identifiable stages: Reactive Preventive Predictive Proactive
Reactive Run-to-failure* Git-R-Dun: If it’s broke, fix it quick and fix it cheap. If it ain’t broke, don’t fix it. If it’s broke but still runs, fix it later. If it’s making a funny noise, don’t worry about it. * Run-to-failure may be considered cost-effective for non-critical items with non-hazardous failure modes.
Preventive Preventive Maintenance (PM) Time-based Maintenance carried out at predetermined intervals, or to other prescribed criteria, and intended to reduce the likelihood of a functional failure.  PM is not a silver bullet Excessive PM is not cost-effective
Predictive Predictive Maintenance (PdM) Condition-based (trending) Use of measured physical parameters against known engineering limits for detecting, analyzing, and optimizing the resolution of equipment problems before a failure occurs. Monitor while running Best-suited for critical equipment
Proactive Prevention of failures prior to and during the service life of the equipment Alignment Balancing Lubrication Cleanliness Root cause failure analysis (RCA) Failure Modes and Effects Analysis (FMEA)
Metrics
Importance of Metrics In any organization, the tendency is to measure what’s important, and then to manage what’s measured. Both inputs and outputs can be measured. Many “management” measures are outputs (e.g., cost, productivity, quality, downtime).
The Danger Zone Measurements can make one nearsighted Tend to focus on one thing at a time, rather than the whole system (suboptimize) Try to manage today based on what happened yesterday (react) Tend to look at things on a surface level and may not realize the impact of things that are not being measured (fight fires)
Metrics One of the key metrics is OEE Overall Equipment Effectiveness (%) = Uptime x Throughput x Quality  OEE balances three important measures of success – can’t focus on one to the exclusion of the others OEE is an “output” measure – after-the-fact
Metrics Additional metrics focus more attention on “inputs” - activities that reduce failures  over time Examples: % PM completed on time % work orders generated by PM % OT hours of total maintenance hours % PM hours of total maintenance hours % critical equipment monitored by PdM
Elements of Maintenance
Elements of Maintenance Maintenance is an integrated system that includes numerous functional responsibilities
Elements of Maintenance Preventive Maintenance Predictive Maintenance Reliability Engineering Planning & Scheduling Storeroom Management Standard Maintenance Procedures Equipment Standards Asset Criticality Computerized Maintenance Management System (CMMS)
Roles and Responsibilities
Roles and Responsibilities Within the mill environment, the contribution of each employee must be clearly defined.
Key Roles Maintenance Manager Maintenance Supervisor Mechanical Technicians Electrical Technicians Planner Scheduler Storeroom Manager Control System Engineer Reliability Engineer Production workers
Ongoing Investment
Ongoing Investment Enhancing the effectiveness of reliability requires an ongoing investment in capabilities: Personnel Training Equipment
Predictive Capabilities Investment in predictive capabilities may include the following techniques: Vibration testing Thermography Motor circuit evaluation Ultrasonic testing Oil analysis
Case Studies
Refiner Motor An unusual vibration on the refiner deck led to further investigation of a 1,250 HP refiner motor. The motor was monitored closely until preparations were made to remove the rotor. Vibration testing had detected broken rotor bars.  The motor was rebuilt with no unscheduled downtime and with a cost avoidance of about $50k compared to catastrophic failure.
Press Servo Pump Routine vibration monitoring detected an anomaly near one of the servo pump bearings. The anomaly was monitored closely over the next several months. After two significant increases, management was notified of a potentially critical condition. During the next routine shutdown, a worn motor coupling was determined to be the source of the vibration. The coupling was replaced and the motor and pump were laser-aligned without further loss of production.
Conclusion
The Reliability Journey As illustrated in this presentation, the ongoing application of reliability concepts has the potential for creating a competitive advantage by maintaining equipment in good operating condition.
 
Appendix: The Economic Cost  of Poor Reliability
Measuring the Cost of Maintenance Direct cost of maintenance is easy to measure based on the P&L. Cost of labor & burden Cost of materials, parts, equipment, services Direct cost of maintenance is only the tip of the iceberg. Indirect cost of maintenance is hidden out of sight.
Cause and Effect One of the big challenges for managing maintenance is the extended time between  actions  and  consequences . All failures have a cause, but the cause and effect may be separated by weeks, months, or years. E.g., failure to properly align and balance a newly installed machine may be the “event” that led to the machine’s breakdown two years later.
Cause and Effect In order to gain the long-term benefits of proactive maintenance, the short-term tasks must be carried out with discipline – even though there are daily pressures to the contrary.
Downtime Downtime occurs when the plant is not producing new product.  What is the direct cost of lost sales due to downtime? For a typical medium-sized board plant in a good market, lost sales alone will account for several million dollars per year. This is probably the biggest loss component. Downtime should be measured against the total available hours (24/7/365).
Productivity Losses Functional failure occurs when the plant is running, but at reduced capacity or diminished quality. Uptime  can be a misleading metric when we’re running slow.  OEE reflects losses from a functional failure.
Downgrade Run-time downgrade may result from equipment operating outside of tolerances. Start-stop downgrade occurs each time there is a line stop.
Transition Losses Transition losses occur during changeovers. Lost production Scrap and seconds Transition losses become more critical as product runs shorten.
Production Scheduling In a produce-to-order system, expected process losses are offset by increasing the scheduled production output.  Increases lead time Increases inventory (on-grade and downgrade)
Excess Inventory Inventory tends to pile up around machines with poor reliability.  bottlenecking quality problems Spare parts inventory is managed according to the JIC model – keeping one of everything “just-in-case.” The carrying cost of excess inventory can easily be in the hundreds of thousands of dollars every year.  The higher the inventory, the greater the risk of damage and obsolescence.
Excess Shipping Costs In a reactive maintenance culture, spare parts will inevitably have to be expedited.
Safety & Environmental Impact Poor reliability has the potential to affect safe operation of equipment and compliance with environmental requirements.
Excess Capital Requirements In a reactive maintenance culture,  reliability may be boosted by: Over-design of equipment Redundant systems Surge capacity (to mitigate short outages) Increased warehouse capacity
Rework Repairs not done right the first time will lead to rework. How many of your equipment problems are  new  problems? Management may be inclined to compensate for excessive unscheduled downtime by cutting back on scheduled maintenance . . . in turn leading to more unscheduled downtime.
Cycle Time Inflation Unscheduled line stops and operating below design capacity add to the process cycle time. Increased downgrade, higher work-in-process, longer lead time
Can you afford it? The total cost of poor reliability may be many times in excess of the annual maintenance budget.

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JR Dickens - IWCS 2007

  • 1. Reliability: Next Generation Asset Management James Robert Dickens, Ph.D. Temple-Inland Inc. Forest Products Group Diboll, Texas
  • 2. What is “Reliability”? Let’s define reliability as the readiness of a machine to produce first-run quality at design capacity for the expected lifetime of the asset. Unreliability is easy to spot: Machines broken down Machines running below design capacity Machines not producing first-run quality Machines running below design capacity and not producing first-run quality
  • 3. Functional Failure “Functional failure” occurs when the machine is still operating, but at reduced capacity or quality.
  • 4. What is the Purpose of Maintenance? There are two basic ways to approach maintenance: Fix what’s broke Reactive – restore capacity Every day is full of surprises Lots of “What happened?” Improvement means reacting faster Keep equipment in like-new condition Proactive – preserve capacity Work is planned days or weeks ahead of time Lots of “What if?” Improvement means avoiding breakdown
  • 5. Maintenance as Culture Maintenance reflects the culture of the organization. And, maintenance is part of the culture of the organization. In order to fundamentally change maintenance, there must be a culture change.
  • 6. Maintenance as Culture The journey toward reliability is more than implementing a set of tools. In other words, reliability is more than just a program.
  • 7. Management of Change Three important points about change: Change always takes time Change is always difficult Change takes commitment and leadership at all levels Leadership requires vision – a clear picture of the destination – and the ability to effectively transmit that vision to others.
  • 8. Topics of Discussion Maintenance progresses from reactive to proactive Culture change is driven in part by metrics The maintenance organization forms a cohesive system Roles and responsibilities are clearly defined Improvement requires an ongoing investment in capabilities Case studies illustrate the value of condition monitoring
  • 10. Stages of Progress The journey toward reliability tends to progress in several identifiable stages: Reactive Preventive Predictive Proactive
  • 11. Reactive Run-to-failure* Git-R-Dun: If it’s broke, fix it quick and fix it cheap. If it ain’t broke, don’t fix it. If it’s broke but still runs, fix it later. If it’s making a funny noise, don’t worry about it. * Run-to-failure may be considered cost-effective for non-critical items with non-hazardous failure modes.
  • 12. Preventive Preventive Maintenance (PM) Time-based Maintenance carried out at predetermined intervals, or to other prescribed criteria, and intended to reduce the likelihood of a functional failure. PM is not a silver bullet Excessive PM is not cost-effective
  • 13. Predictive Predictive Maintenance (PdM) Condition-based (trending) Use of measured physical parameters against known engineering limits for detecting, analyzing, and optimizing the resolution of equipment problems before a failure occurs. Monitor while running Best-suited for critical equipment
  • 14. Proactive Prevention of failures prior to and during the service life of the equipment Alignment Balancing Lubrication Cleanliness Root cause failure analysis (RCA) Failure Modes and Effects Analysis (FMEA)
  • 16. Importance of Metrics In any organization, the tendency is to measure what’s important, and then to manage what’s measured. Both inputs and outputs can be measured. Many “management” measures are outputs (e.g., cost, productivity, quality, downtime).
  • 17. The Danger Zone Measurements can make one nearsighted Tend to focus on one thing at a time, rather than the whole system (suboptimize) Try to manage today based on what happened yesterday (react) Tend to look at things on a surface level and may not realize the impact of things that are not being measured (fight fires)
  • 18. Metrics One of the key metrics is OEE Overall Equipment Effectiveness (%) = Uptime x Throughput x Quality OEE balances three important measures of success – can’t focus on one to the exclusion of the others OEE is an “output” measure – after-the-fact
  • 19. Metrics Additional metrics focus more attention on “inputs” - activities that reduce failures over time Examples: % PM completed on time % work orders generated by PM % OT hours of total maintenance hours % PM hours of total maintenance hours % critical equipment monitored by PdM
  • 21. Elements of Maintenance Maintenance is an integrated system that includes numerous functional responsibilities
  • 22. Elements of Maintenance Preventive Maintenance Predictive Maintenance Reliability Engineering Planning & Scheduling Storeroom Management Standard Maintenance Procedures Equipment Standards Asset Criticality Computerized Maintenance Management System (CMMS)
  • 24. Roles and Responsibilities Within the mill environment, the contribution of each employee must be clearly defined.
  • 25. Key Roles Maintenance Manager Maintenance Supervisor Mechanical Technicians Electrical Technicians Planner Scheduler Storeroom Manager Control System Engineer Reliability Engineer Production workers
  • 27. Ongoing Investment Enhancing the effectiveness of reliability requires an ongoing investment in capabilities: Personnel Training Equipment
  • 28. Predictive Capabilities Investment in predictive capabilities may include the following techniques: Vibration testing Thermography Motor circuit evaluation Ultrasonic testing Oil analysis
  • 30. Refiner Motor An unusual vibration on the refiner deck led to further investigation of a 1,250 HP refiner motor. The motor was monitored closely until preparations were made to remove the rotor. Vibration testing had detected broken rotor bars. The motor was rebuilt with no unscheduled downtime and with a cost avoidance of about $50k compared to catastrophic failure.
  • 31. Press Servo Pump Routine vibration monitoring detected an anomaly near one of the servo pump bearings. The anomaly was monitored closely over the next several months. After two significant increases, management was notified of a potentially critical condition. During the next routine shutdown, a worn motor coupling was determined to be the source of the vibration. The coupling was replaced and the motor and pump were laser-aligned without further loss of production.
  • 33. The Reliability Journey As illustrated in this presentation, the ongoing application of reliability concepts has the potential for creating a competitive advantage by maintaining equipment in good operating condition.
  • 34.  
  • 35. Appendix: The Economic Cost of Poor Reliability
  • 36. Measuring the Cost of Maintenance Direct cost of maintenance is easy to measure based on the P&L. Cost of labor & burden Cost of materials, parts, equipment, services Direct cost of maintenance is only the tip of the iceberg. Indirect cost of maintenance is hidden out of sight.
  • 37. Cause and Effect One of the big challenges for managing maintenance is the extended time between actions and consequences . All failures have a cause, but the cause and effect may be separated by weeks, months, or years. E.g., failure to properly align and balance a newly installed machine may be the “event” that led to the machine’s breakdown two years later.
  • 38. Cause and Effect In order to gain the long-term benefits of proactive maintenance, the short-term tasks must be carried out with discipline – even though there are daily pressures to the contrary.
  • 39. Downtime Downtime occurs when the plant is not producing new product. What is the direct cost of lost sales due to downtime? For a typical medium-sized board plant in a good market, lost sales alone will account for several million dollars per year. This is probably the biggest loss component. Downtime should be measured against the total available hours (24/7/365).
  • 40. Productivity Losses Functional failure occurs when the plant is running, but at reduced capacity or diminished quality. Uptime can be a misleading metric when we’re running slow. OEE reflects losses from a functional failure.
  • 41. Downgrade Run-time downgrade may result from equipment operating outside of tolerances. Start-stop downgrade occurs each time there is a line stop.
  • 42. Transition Losses Transition losses occur during changeovers. Lost production Scrap and seconds Transition losses become more critical as product runs shorten.
  • 43. Production Scheduling In a produce-to-order system, expected process losses are offset by increasing the scheduled production output. Increases lead time Increases inventory (on-grade and downgrade)
  • 44. Excess Inventory Inventory tends to pile up around machines with poor reliability. bottlenecking quality problems Spare parts inventory is managed according to the JIC model – keeping one of everything “just-in-case.” The carrying cost of excess inventory can easily be in the hundreds of thousands of dollars every year. The higher the inventory, the greater the risk of damage and obsolescence.
  • 45. Excess Shipping Costs In a reactive maintenance culture, spare parts will inevitably have to be expedited.
  • 46. Safety & Environmental Impact Poor reliability has the potential to affect safe operation of equipment and compliance with environmental requirements.
  • 47. Excess Capital Requirements In a reactive maintenance culture, reliability may be boosted by: Over-design of equipment Redundant systems Surge capacity (to mitigate short outages) Increased warehouse capacity
  • 48. Rework Repairs not done right the first time will lead to rework. How many of your equipment problems are new problems? Management may be inclined to compensate for excessive unscheduled downtime by cutting back on scheduled maintenance . . . in turn leading to more unscheduled downtime.
  • 49. Cycle Time Inflation Unscheduled line stops and operating below design capacity add to the process cycle time. Increased downgrade, higher work-in-process, longer lead time
  • 50. Can you afford it? The total cost of poor reliability may be many times in excess of the annual maintenance budget.