PACs x nee eT rats Planning | Fiwon Heinemann i an imprint of Elsevi jouse, Jordan Hill, Oxford OX2 8D, UK 50 Coeporate Drive, Suite 400, Bulingzon, MA 01803, LISA First Edition 20085 106, Anthony Kelly Published by Elsevier Ltd All is reserved No part of this jon amy be reproduced, stoned in a retrieval system or transmnitied in any form ar by any means electronic, mechanical, photocopying, recording or otherwise without the prior writen ps publisher Permission may he sought directly from Elsevier's Science & Technology Rights Deparment in Orford, UK, plone: (+14) (0) 1865 843830; cL) (OY LAGS 859853: e-r om, Alternatively you ean submit yx wwe ite at I: permissionsBelsevien 7 rexquest online hy visiting the Else hupufelseviercom/Incate/ permissions, and selecting Ollatrring per ose Elen ser anatomic! No responsibility is as red by the: publisher for any injury and pensions oF proper bility. negligence m any Use OF operation Af any methods, proshicts, instructions we ideas al herein, Because of rapid advances tn the medical scie independent verification of diagnoses and drug dosages shoud be made damage t ‘asa matter a proses British Library Cataloguing in Publication Data, A catalogue record for this book is available Frou the British Library Library of Congress Control Nusabers 2006) ISBN 1 978078 OGRE A ISBN 1M: 0 75.056002 6 Plant Maintenance: Management (set of three velumes! ISBN 13. 978 1175 66995 5; ISBN 19. 6 75.966995 a1 tin ont all Elsevier Butlerworth ww. For Publications visit our web site Typeset by Charon Tee Lid, cher Printed and bound 18 Beit Working together to grow libraries in developing countries wwwewelseviezcom | wwwhookaid.org | wwwsabre.org ID oodContents Part1 Part2 Preface Acknowledgments Author's biography Introductory chapters Maintenance and the industrial organization 1.1 Introduction 1.2 Asystems view of n inlenance management Plant acquisition policy and maintenance life-cycle costs 21 Introduction 2.2 Capital asset management 23 Summa Formulating maintenance strategy: A business-centered approach 3.1 Introduction 3.2 Business-cemtered maintenance 33 Anexample of the application of BCM: background 34 of the FPP maintenance department 3.4.1 Maintenance objectiv 342 plans and preventive schedule 3.4.3. Maimenance organization 3.44 Maintenance work planning 3.4.5 Maintenance contol system 3.4.6 Maintenance documentation 3.4.7 Audit summary 35° Part Br An alternative maintenance strategy for continuous operttion 3.6 Pan CA longer-term view of orga 47 The strategic thought process izational chang Maintenance objectives and task selection The structure of industrial plant 4.1 Introduction 4.2 Physical asset systems 43° Modeling industrial pl 44° 7 on for maintenance xi will 44 45vi Contents 45 Capital replacement policy 4,6 Maintenance strategy Maintenance objectives 5.1 Introduction 3.2. Maintenance resourees and plant output factors 5.2.1 Maintenance resources (men, spares and tools) 5.22 Maintenance resources and plant longevity 3 Maintenance resources and desired plant safe (equipment integrity) $24 Maimenance resources and product output 5.3 A generic stacement of a plant maintenance objective 5.4 A procedure for formulating maintenance objectives 5.5. Maimenance objectives and maintenance performance indices 5.6 Maintenance objectives in practice a we Preventive maintenance decision-making Part 1: Principles, concepts and techniques GA Inteeduction 6.2 Plant items and their failure characteristics 6.2.1. The plan item: a definition 622 pility diagrams 6. items function, failure conse Th failure modes 6.3 The preventive maintenance decision problem 6.4 The maintenance actions 6-1 The alternative actions and their characteristics 642 The repair vs replace decision 643 Reconditioning: internal vs contract G44 dne-sitt repair techniques and the repair vs replace decision 6.5. The timing of the maintenance action: maintenance policy 63.1 Fixed-time maintenance 6 n-based maintenance 653 Operate-to-tailure 634 Opportunity maintenance 655 Design-out maintenance 65.6 Establishing the best maintenance policy ences and Preventive maintenance decision-making Part 2: Maintenance task selection 7.1 Introduction 7.2 Examples of maimenance task selection 7.21 Example 1: The rubber lining of a chemical reaction vessel 2 Example 2: The rotary joint of a paper machine 3 Example 3: The roller element bearings of a paper machine 72. 72 or 62 67 68 65 69 69 70 70 74 5 9 85 BG 89 a” 92 95. 5 5 99 101 102, 102, 106 113. 118. 4 14 119 120 122 122 123, 126.PACs x nee eT rats Planning | Fiwon Heinemann i an imprint of Elsevi jouse, Jordan Hill, Oxford OX2 8D, UK 50 Coeporate Drive, Suite 400, Bulingzon, MA 01803, LISA First Edition 20085 106, Anthony Kelly Published by Elsevier Ltd All is reserved No part of this jon amy be reproduced, stoned in a retrieval system or transmnitied in any form ar by any means electronic, mechanical, photocopying, recording or otherwise without the prior writen ps publisher Permission may he sought directly from Elsevier's Science & Technology Rights Deparment in Orford, UK, plone: (+14) (0) 1865 843830; cL) (OY LAGS 859853: e-r om, Alternatively you ean submit yx wwe ite at I: permissionsBelsevien 7 rexquest online hy visiting the Else hupufelseviercom/Incate/ permissions, and selecting Ollatrring per ose Elen ser anatomic! No responsibility is as red by the: publisher for any injury and pensions oF proper bility. negligence m any Use OF operation Af any methods, proshicts, instructions we ideas al herein, Because of rapid advances tn the medical scie independent verification of diagnoses and drug dosages shoud be made damage t ‘asa matter a proses British Library Cataloguing in Publication Data, A catalogue record for this book is available Frou the British Library Library of Congress Control Nusabers 2006) ISBN 1 978078 OGRE A ISBN 1M: 0 75.056002 6 Plant Maintenance: Management (set of three velumes! ISBN 13. 978 1175 66995 5; ISBN 19. 6 75.966995 a1 tin ont all Elsevier Butlerworth ww. For Publications visit our web site Typeset by Charon Tee Lid, cher Printed and bound 18 Beit Working together to grow libraries in developing countries wwwewelseviezcom | wwwhookaid.org | wwwsabre.org ID oodContents Part1 Part2 Preface Acknowledgments Author's biography Introductory chapters Maintenance and the industrial organization 1.1 Introduction 1.2 Asystems view of n inlenance management Plant acquisition policy and maintenance life-cycle costs 21 Introduction 2.2 Capital asset management 23 Summa Formulating maintenance strategy: A business-centered approach 3.1 Introduction 3.2 Business-cemtered maintenance 33 Anexample of the application of BCM: background 34 of the FPP maintenance department 3.4.1 Maintenance objectiv 342 plans and preventive schedule 3.4.3. Maimenance organization 3.44 Maintenance work planning 3.4.5 Maintenance contol system 3.4.6 Maintenance documentation 3.4.7 Audit summary 35° Part Br An alternative maintenance strategy for continuous operttion 3.6 Pan CA longer-term view of orga 47 The strategic thought process izational chang Maintenance objectives and task selection The structure of industrial plant 4.1 Introduction 4.2 Physical asset systems 43° Modeling industrial pl 44° 7 on for maintenance xi will 44 45vi Contents 45 Capital replacement policy 4,6 Maintenance strategy Maintenance objectives 5.1 Introduction 3.2. Maintenance resourees and plant output factors 5.2.1 Maintenance resources (men, spares and tools) 5.22 Maintenance resources and plant longevity 3 Maintenance resources and desired plant safe (equipment integrity) $24 Maimenance resources and product output 5.3 A generic stacement of a plant maintenance objective 5.4 A procedure for formulating maintenance objectives 5.5. Maimenance objectives and maintenance performance indices 5.6 Maintenance objectives in practice a we Preventive maintenance decision-making Part 1: Principles, concepts and techniques GA Inteeduction 6.2 Plant items and their failure characteristics 6.2.1. The plan item: a definition 622 pility diagrams 6. items function, failure conse Th failure modes 6.3 The preventive maintenance decision problem 6.4 The maintenance actions 6-1 The alternative actions and their characteristics 642 The repair vs replace decision 643 Reconditioning: internal vs contract G44 dne-sitt repair techniques and the repair vs replace decision 6.5. The timing of the maintenance action: maintenance policy 63.1 Fixed-time maintenance 6 n-based maintenance 653 Operate-to-tailure 634 Opportunity maintenance 655 Design-out maintenance 65.6 Establishing the best maintenance policy ences and Preventive maintenance decision-making Part 2: Maintenance task selection 7.1 Introduction 7.2 Examples of maimenance task selection 7.21 Example 1: The rubber lining of a chemical reaction vessel 2 Example 2: The rotary joint of a paper machine 3 Example 3: The roller element bearings of a paper machine 72. 72 or 62 67 68 65 69 69 70 70 74 5 9 85 BG 89 a” 92 95. 5 5 99 101 102, 102, 106 113. 118. 4 14 119 120 122 122 123, 126.Part Part 10 PartS aay 7.3 Assembling the maintenance life plan for a unit 74 Standby units and the lite plan Maintenance task selection using reliability-centered maintenance 8.1 Introduction 82. The RCM procedure 8.3 Application of 8.3.1 Background 8.3.2 Final reaction st 8.3.3 RCM analysis of 10 a chemical plant e: the process and equipment final reactor The top-down bottom-up approach Determining the life plan and schedule: The top-down bottom-up approach 9.1 Introduction 9.2 The TBBUA 9.2.1 Quiline of TOBUA 9.2.2 Inderstanding the structure and characteristics tion of the plant (the ‘top-down’ stage of the analysis) 9.2.3 Swp 2: Esblishing a maintenance life plan for each ‘unit of plant (the ‘bottom-up’ 9.2.4 Step 3: Establishing a preventive maintenance schedule for the plant (putting if att fogetber) 9.3 Comments on the TDBUA 9.4 Using the TDBUA Controlling plant reliability Controlling plant reliability 10.1 Introduction 10.2 Reactive control of plant reliability 10.3 Proactive control of plant reliatsil 10.4 Incorporating reliability control systems into the organization Exeri es Exercises on maintenance strategy ercise 11.1 An alumina refinery ereise 11.2 A gold mine milling process Contents 126 130 139 140 140 145 145 146 “7 161 163 led 168, 168, 168 173 180 187 189 193 195 196 196 198 198 205 207 208 210 vilvil Contents PartG Case studies 215 12 Case studies of maintenance strategy 217 Case study 1 An audit of the maintenance strategy for an. agricultural chemical plant 1 Introduction 2 An overview of Fertec 3 Objectives 4 Maintenance strategy 4.1 Plan-operning characteristics 4.2 Ammonia plant strategy 4.3 Comments and recommendations on strategy 228 Case study 2 Maintenance strategy review of an aluminum smelter 230. 1 Introduction: 230 2. Am overview of Smel 230 4. Carbon plant process flow: overall operation 232 4 Green-mix plant-operating characterislics and maintenance strategy 235, 4.1 Operating characteristics 235 42 Maintenance strategy 235 4.4 Comments and recommendations 236 5 Ring furnace maintenance characteristics and cay 236 3.1 Operating characteristics 236 5.2. Ring furnace maintenance strategy 238 5.3 Comments and recommendations 230 6 Summary 240 Case study 3. A review of the maintenance strategy in a petroleum refinery 240 1 Introduction 240 2. Plant-operating characteristics 240 3. Maintenance strategy 22 3.1 A schedule of outage work for the main process streams 22 3.2) A schedule of maintenance work for the standby equipment (e.g. for pumps) 242 3.4 Online inspection routines 23 4 Observations 243 Case study 4 Maintenance strategy in the coal mining industry 243 1 Intenduction 243 2 Am overview of COALCOM 244Case study 5 Case study 6 Case studies 7-10 Case study 7 Case study 8 Case study 9 Case study 10 Appendix 1 Appendix 2 Maintaining an open-cut coal mine 1 Introduction 2 Operating characteristics of an open-cut mine 3 Madeling fice! operation: status diagrams 4 Summary Maintenance strategy for a passenger transport fleet 1 Introduction 2 Plee-operating charicteristics 3 Outline of the existing maintenance strategy 3.1 Maintenance strategy review 4 Comments Case studies in the electrical power utilities 1 Introduction 2 Operating chanicteristics of an electricity supply system A gas-fired power station station and its operating characteristics je maintenance strategy in use when the station provided base load 3. Maintenance strategy review for two-shift operation An oil-fired power station 1 The station and its operating characteristies 2 Production and maintenance abjectives 3 Maintenance strategy before privatization 3.1 Steam units 3.2 Gas carbine 4 Maintenance strategy after privatization A transmission system 1 Equipmentoperating el 2) Maintenance strategy mapping istics A distribution system Maintenance terminology Invsitu repair techuiqrtes Contents 247 247 27 248 249 250 250) 250 250 252 254 260 260 200 261 262 262 263 264 267 269x Contents Appendive 3 Introdiectory fiatheve statistics A3.1. The statistical parameters of component liferimes Probability density functions ‘The Normal or ‘wear-out’ pdf ‘The negative exponential, or ‘random failure’ par ASA The hyperexponential, or nunning-in’ pal AS.LS The whole-lite item failure profile dadex 25 276 27 278 278 280 281Preface Strategic Maintencuce Plarrning is the first of three companion books covering mate- ial which bas been developed (and updated) from my 1997 publications Maintenance Sirategy and Maditenance Organization aud Systenss, which were subsequently expanded and converted inio distance-learning wniis which comprised the first half of a 2-year Masters progeam offered by an Australian «nd a UK university. ‘The main approach adopted throughout all three books, and which determines the direction and content of all the material, is that of business-centered maintenance (BCM) the string point of which is the identification of the business aims. These are then wanshued into the maimenance objectives which, in their wr, are used 1 under- pit the formulation firstly of strategy (the subject of this book, viz. the plenning aspects ‘of maintenance management), secondly of the design of the appropriate organization (che subject of Book 2, Managing Matuieuance Resources, viz, the doing aspects of maintenance management) and finally the creation of the necessary systems Che sub ject of Book 3, Mavirtenrauce Systents and Documentation, mz the coutroliug aspects). ‘Because the material has come from a distance-learning progeam all three backs con- tain numerous review questions (with answers), exercises and case studies — these last having been selected to ensure coverge of the care of physical assets across a wide range of industries (process, mining, food, power generation and transmission, ete). In addition, every chapter has ils own clearly specified objectives and learning outcome: as well as a route map which enables the reader to see where the chapter is in relation 10 the rest of the topics covered Although the BCM approach integrates all three books into a unified maintenance management methodology, I have tried to ensure that each one can stand alone, ie. be studied and understood in isolation from its companion works, Itis therefore inevitable that there is some overlap, 2.1 ® To explain the principles and concepts of BCM, the same case study (of a food pro- cessing planv) is used at the beginning of each book © To illustrate the linkage berween maintenance planning, organization and systems, full audit of a chemical plant is presented at the end of each book. The overall aim of each book is to provide managers of physical assets with a better understanding of the operation of the maintenance function, an understanding whic will enable them to identify problems within their own organization and presc effective solutions. As asserted by Heney Mintzberg (Managers Not MBAS, Finewcial Times, Prentice Hall, 20041: What managers really need from a course or a book is insight- theories or mod- els that enable them ta make sense af practice, Jearn fram experience and reach better judgements. ‘The provision of such insight ts ihe overriding prerpose of these three boots Strategic Maintenance Plauring, Book 1 of the series, aims to impart an under- standing of the concepts, principles and techniques of preventive maintenance, andxii Pretace shows how the complexity of maintenance strategic planning can be resolved by a sys- tematic ¢op-dotwn bottom-up approach (TDBUA), It explains that strategic maintenance planning is concerned with: © Establishing cbjectives, for the physical assets and the maintenance resources. @ Formulating an appropriate life plan for cach unit of plant, a comprehensive pro- gram of maintenance tasks (e.g. lubrication, inspection, repair, replacement) span- ning the life of each unit. © Formulating, from the work identified in the life plans, a preventive maintenance schedule for the plant as a whole. ® Designing a maintenance organization and establishing a budget to ensure that the maintenance work can be resourced, Chapter [ reviews the role of maintenance within the comest of an industrial organiza~ tion, Chapter 2 then discusses the importance of plant acquisition policy to mainte nance life-cycle costs. Chapter 3 - the key chapter - explains the BCM approach (- understanding and establishing 1 maintenance strategy, and outlines the overall struc ture of the three-book series. Chapter 4 shows how systems of physical assets can be modeled, and Chapter 5 defines and discusses the maintenance Objectives. Chapters 6-8 focus on the principles and concepts of preventive maintenance deci- sion-making, and relates these to decision processes that can be used 10 establish life plans for plant units. Chapter 9 shaws a procedure for establishing a preventive sched- ule far a complete plant, Chapter 10 looks at models of plant reliability control, show ing how this may be achieved, in part, by reviewing existing life plans. Chapter 11 gives the reader the oppomunity to attempt two exercises in maintenance strategy. The final chapter then presents ten case studies from a wide variety of indus- tries, these being used both as vehicle for review questions and also to illustrate t similarities of — and differences between — the maintenance of process plant and the maintenance of physical assets in other technologie sectors. Anthony Kelly belly stiworld, comAcknowledgments Firstly, I wish to acknowledge a special gratitude to John Harris who has edited the complete text, and also contributed Reading 8.1 and Appendix 3. | also acknowledge Jan Bendall for contributing the example of Chapter 8 and Dr, H.S. Riddell wha con- tributed a number of figures in Chapter 2, [thank the people in industry, most recently — Bill Sugden, Ian Peterson, Gudmunder Bjornason, Leonard Bouwman, Kevin Hardman, Nigel Beard and many ott — who provided access to their plants and without whose help this book could not have been written. Finally, 1 wish to thank Vicky Taylor for typing the text and Denise Jackson for producing the artwork.This page inientionally left blankAuthor's biography Br Ambony Kelly served a wade apprenticeship before obtaining a first degree in mechanical engineering from the University of Wales and a Masters Degree (in coro. sion engineering) from the University of London. He then held several industrial po: tions, in which he was responsible for the management of maintenance resources, before joining, in 1969, the University of Manchester, UK, where he specialized in main- tenance management, its teaching and research, and obtained his doctorate for a thesis on maintenance organizational design. Dr. Kelly has published numerous technical papers and seven textbooks which have been translated into several kinguages ‘Over the last 19 years Dr. Kelly has ran his own consultancy partnership, operating worldwide and carrying out more than 60 amajor investigations and audits of a wide va ely of industrial activities: mining, power generation and distribution, chemical process- ing, manufacturing, building services, etc, Over the last 15 years he has also. held visiting/ industrial professorships at Central Queensland University (Australia), University of Stellenbosch (South Atrica) and Hogskolen i Stavanger (Norway).This page inientionally left blankIntroductory chaptersThis page inientionally left blankMaintenance and the industrial organization ‘Management means the substitution of thought for muscle, of knowledge for folklore, and of cooperation for force.’ Peter Drucker eee hone ion within the industrial To explain and define the maintenance management fun organization. Oh completion of this chapter you should be able to: ‘+ visualize an industrial organization as a complex open system; ® understand the role of management and the different management phil that can be used for the management of industrial organizations; © appreciate that the maintenance department is not ‘an island unto itsel ences, and is influenced by, many other industrial subsystems, Ca CRED) Book duisions This chapter inthe division Chapter toples . sinviicon con | Chapter 14 troduction Maintenance an incest organ 191.2 A systems view of maintenance management -}-* Maintenance abjectives and task selection The top-down bottom-up approach plant strategy: a businass- centered approach Exercises Case studiosStrategie Maintenance Planning * Theories of management * Organization ® Systems approach © Open system ¢ Role of management 1.1 Introduction Ewzioni defined organizations as groupings of human beings (of individuals and sub: groups of individuals) consteucted and reconstructed ta seek specific goals [1]. Various material resources will also be needed, he said. A better understanding of arg; may be obtained through the so-called srstemy approach, In this, onginizations can be viewed as oper sysicms taking inputs from their environments and wansforming them — by a series of activities and with some objective in view — into Outputs (see Figure 1.1). Open system: An open system is in continual interaction with its environment and achieves a steady state while stil! retaining the capacity for work (transfor- mation). The system is open in the sense it can react not only to the direct ‘inputs and outputs’ but also changes in the environment surrounding it ‘Organizations can be categorized, on the basis of their objectives, into public and private enterprises. An industrial company exemplifies the latter and Ridlell has pointed out that External influences New technology Government Financial climate Food processing plant = Physical assets '* Manpower Inputs Outputs ‘* Raw matorial : Pot food (mutt-tin (mest, ceresl, ete.) Spares size, multi-peaguet) Finance * Waste product information * Satety Unions Customers 6 Variable market demand for each product Demand for praduet Skills availability Figure 1.1 An organization producing pet food, viewed as an apen systemMaintenance and tha industrial organization if it is 10 achieve its primary objective of maximizing, ts long-term profitability — while also providing an in-demand service — ic will need ta earry out evo prime functions (2k 1, The internal mechanisms of the industrial emerprise itself’ must be made t operate: well. The right product must be made at the right time, by the right plani, using the right raw materials and employing the appropriate workforee. The physical assots suust be carefully selected aud properly maintained. Effective long-verm research and development plans must be implemented and new il investment generated. In short, the internal efficiency must be high 2, The interaction with the outside world, with external influences and constraints, must be made to be co-operative and beneficial, rather than antagonistic and dant- aging, i.e. the overall, externally measured, efficieney must also be high. Riddell sees the rofe of management as being concerned with carrying out these fune- tions in order to ensure the ongoing success (profit) of the organization. He sees man- agement as the designer, constructor, director and controller of the organization so Uk ican achieve its objective. | helpful approaches to carrying out uhis role have evolved (see Table 1.1). These, in particular the ctdminisirative and the bumes relations approaches, will be used in this book to develop a framework Cor methodology) of maintenance m: ment principles and procedures (see Chapter 3) p' Table 1.1 Summary of management theories Mechanistic management: Monitors and controls the way the job is performed at shop: floor level; includes method, timing and direction. Administrative management: Applies universal management functions and structure principles to the design of an organization and te its operation. Human relations management: Studies characteristics and relationships of individuals and groups within an arganization, and takes account af these factars when designing and administrating the organization, Docision management: Appliss procedural and quantitative madals to the solution of management problems. A theory for communicationa and dacision-making in organizations. Systems management: Studies organizations as dynamic systems reacting with their environment. Analyses a system into its subsystems and takes account of behavioral, mechanistic, technologie and managerial aspects, Contingency management*:Takes the view that the characteristics of an organization must be matched te its internal and external environment. Since these environments ean change important to view the organizational structure as dynami *Contingeney (dictionary definition) is a thing contingent on an uncertain event. Contingency management is ralated to systems’ theory. It emphasizes the complexity of organizations [see Figure 1.2) and attempts to understand how organizations operate under varying conditions and specific circumstances. The contingency theary of management is directed toward praposing organizational designs and management actions mast apprapriate for specific situations, Review Question R141 Read through Case study 1 (Chapter 12) and identify where at least one of the management theories listed in Table 1.1 has been used to describe! discuss!medel the maintenance management procedures of Fertec Ltd.Strategie Maintenance Planning 1.2 A systems view of maintenance management Several writers have modeled the industrial organization as a socio-technical system com- prising various subsystenis. For example, Kast and Rosenzweig saw it as an open, socio- technical system (see Figure 1.2) with the following five subsystems, each with its own input-conversion-output process related (0, and interacting with, the other subsystems [3h (A goal-oriewted arrangement: people with a purpose. A technical subsystem: people using knowledge, techniques, equipment and facilities. GID A strectural suibsrsiem: people working together on integrated activities. Livi A psychosocial srebsystem: people in social relationships, co-ordinated by a mana- gerial subsystem. () A mavagerial subsysiem: planning and contrelling the overall endeavor, ie, ensur- ing that the activities of the organization as a whole are directed toward the accom. plishment of its objectives ‘The author prefers to view the industrial organization as an open system, converting, raw material or information into finished products of a higher value. It can be consid- ered to be made up of many interacting subsystems (e.g. maintenance, production, Environmental system, Figure 1.2 The organizational systemMaintenance and tha industrial organization stores, capital asset acquisition, safety, design, finance, corparate finance), each carry ing Gut distinct organizational functions: © The function af corporate management (the master subsystem) is wo set the organ zational goal and strategy and direct, co-ordinate and control the other subsystems to achieve the set goal © The function of capital asset aeqreisition is to select, buy, install and commission physical assets, a function which is cared out through the combined efforts of a number of other subsystems (e.g. design, finance, projects). @ The function of maiutencnce is to sustain the integrity of physical assets by repair ing, modifying or replacing them as necessary. Each such subsystem requires inputs of information and resources from one or more of the other subsystems and/or the external environment in order to perform its function. ‘The output from one subsystem can be an input to another or an output to the exter- nal environment (see Figure 1.3), e.g. maintenance management uses information from production ement on the way the physical assets are going to be operated (the ‘operating pattern: 15 shifts week) and the availability they require to meet the oulpu Similarly, production management needs information from the marketing/sales man- agement on the demand for the products) which allows them lo determine the pro- duction schedule. Inputs Maintenance subsystem Outputs Finance latormetion, Functian To comtral the reliability bf the plant to set ievels Management | Worklorce, spares, tools, information Information Plant output from other systems Plant safety for control and decision-making Plant condition Product qui Figure 1.3 The function of the maintenance system Review Questions R12 How does the maintenance system influence the production system? R13. Identify the essential information the maintenance system requires from the production system if itis gaing to operate well?8 Strategie Maintanance Planning This systems’ view of an organization shows that the maintenance subsystem intlu- ences, and is influenced by, many of the other subsystems. Two aspects of this are of particular importance: (i) Because the asset acquisition function, which influences reliability and maintain- ability, bas a considerable effect on the maintenance function, a necessary prelimi- nary 10 developing the main argumems of this book 1 clarify the nature of the tionship between them (see Chapter 2). Gi ‘The relationships benveen maintenance and the other organizational subsystems, e.g. production, must also be clarified, and must form part of any description of the operation of the maintenance subsystem or of any of its parts (see Chapter 3). Review Question R14 Outline the main ways in which plant procurement (asset acqui adversely affect the operation af the maintenance department. References 1. Etzioni, A., Moderu Grgamisctious, Prentice Hall, Englewood Cliffs, NJ, USA, 1964 2. Riddell, H.S., Lectirre motes ou engineering management, University of Manchester, School of Engineering, Manchester, 1994. 8. Kast, RE, and Rosenzweig. J.E., Orgarrtsations and Management (rd Ed), MeGraw wgapore, 1974 Review Questions Guidelines R11 Decision management: see point (iii) an page 229 of Case study 1 of Chapter 12 regarding the operating period of the ammonia plant. R1.2. The main outputs from the maintenance system are plant availability, plant per- formance, plant condition for longevity and safety. All of these factors are ‘essential for the effective operation of the production department. R13. The lang- and short-term production plan for the manufacturing equipment. ‘This is influenced by many factors to include the market demand for the prad- uct, production maintenance (e.g. catalyst changes), plant-production rate, inter-stage storage and plant structure (redundant plant units). This information is essential for long- and short-term maintenance planning. Fi.4 The plant acquisition procedure should ensure that the selected equipment can carry out the required production specified performance over the required life cycle at minimum maintenance cost. The selection of the wrong equipment can result in poor performance, low availability and high maintenance costs.Plant acquisition policy and maintenance ife-cycle costs ‘Maintenance Engineers solve the problems that Project Engineers mis: With apologies to Albert Eins eee hone To define the phases of the life cycle of industrial equipment. To show how a proper consideration of the factors that affect maintenance [direct costs (wages, spares, etc:) and indirect costs (loss due to unavailability, quality, etc.)|, in decisions taken at the pre-usage stages (design, commissioning, ete.) of equipment is essential if the aim is to optimize the balance af life-cycle costs and incomes. On completion of this chapter you should be able to: ‘© describe and model an industrial equipment life cycle; ‘+ understand that maintenance costs (direct and indirect) can be a significant pro- portion of the total costs of ownership aver the life cyele of industrial plant; © understand the ‘capital proach that can be used to ensure that maintenance costs are given proper consideration in decisions that are taken in the pre-usage phase of industrial equipment. eC LT ssset management’ Book divisions This chapter in the division Chapter topics + Introductory chapters Chapter t lene Maintenances and the industrial organization + halntenanee objectives: t—? Chapter 2 92.2 Capital asset Sand tank selection Pant acquisition policy management and maintenance * The top-down tbe ree oe) bottom-up approact Te chapter cARaY Formulating plant maintensn centered approach10 Suategie Maintenance Planning © Life-cycle costing © Capital asset management © Terotechnology Gear) Reading 2.1 located at the end of this section. (Although it is same 30 years old the case study is still an excellent example of the ‘capital asset management’ approach.) 2.1 Introduction ‘One way of considering the profitability of plant is on the basis of its complete fife eve Figure 2.1 models the principal phases of this, and Table 2.1 lists the main cost-influencing tors. The importance of these various phases and factors will vary with the technol ogy cancemed, e.g. in power generation fuel costs may be the overriding factor, in petroleum refining the plant availability, in the provision of buildings their anticipated useful life. Investme t in the plant occurs from its conception to its commission 1d perhaps nto its early years of operation. If all goes well, the return on this investment be Need Specification Disposal, Investment Ren * Purchase (capital cost} Installation tf . ps _* Use Figure 2.1 Plant life cycle and costsPlant acquisition policy and maintenance life-cyele costs Table 2.1 Factors influencing life-cycle profitability Acquisition costs Running costs Production cost Installation cast and time Maintenance cost ‘Commissioning cost and time Fusl cost Output parameters Outside management control Useful life Product demand Plant performance Product price Product quality Obsolescence Plant availability soon after the plint comes into use and continues until the plant is disposed of. An example of a life-cycle cost profile is shown in Figure 2.2. The data of this example have been used to plot Figure 2.3, which demonstrates that in some cases the total maintenance cost can be considerably greater than the capital cost Accompany might have as its objective itability within the constraints imposed by the need for safe operation, Achievement of this would necessitate, among other things, an investment appraisal which sought an economic compromise between such factors as capital cost, running cost, performance, availability and useful life. \¢ maximization of ats plant's life-cycle prof Development. [—Capital investment Revenue cost cost Resoarch Design [ieveloment Purchase Constructizn OPertion and maintenance Corporate cashflow o 5 25 Invention Start-up Life (years) Closure Figure 2.2 A life-cycle cost profile (contributed by Dr. H.S. Riddell) 22 Capital asset management Almost invariably, the application of life-cycle cast analysis is rendered difficult by @)_ the lack of definition of the capital asset acquisition subsystem: Gi) the complex relationships between the many factors involved in the economic compromise; W12 Suategie Maintenance Planning “otal tte-cyce costs cept Design emerson Labor Duo plan non ag = Diwslopment stabor TT Enginecring + Material * Due to plant malfunction rupee [So pertllng ron on coors {Soman . Shaan ppt Sfamegatotreetn Teneo Se com wemnane | Manuals nd documentation Iwctriciny = Contractors: cand = Som “olen anaes, termastnaee Ase sna tonsa soil Figure 2.3 Factor in the build-up of total life cost (contributed by Dr. H.S. Riddell) ein Gil) the uncertainty of much of the Life-cycle informatio: concerning such matters as the projected need for the product, whether and when the plint would become obsolescent, the estimated plant reliability and availability, anticipated costs, and so on. Because of these and other difficulties the equipment acquisition appraisal is usually dominated by considerations of plant performance and capital cost. Little or no thought is given to reliability and maintainability, the inevitable consequence being that instal~ lation and commissioning times and cosis will be extended and that plant operation will be dogged by low equipment availability (Le. high maintenance costs, both indirect and. direct. ‘The question therefore arises as 10 how ation can be improved or corrected. 18 it via the so-called feroteehuologic approach? This evolved in the UK in the early 1970s. It was defined, at first, as follows (1] A combination of management, financial, engineering and other practices applied to physical assets in pursuit of economic life eyele costs. A little Inter, the following was added is practice is concerned with the specification and design for reliability and maintainability of plant, machinery, equipment, buildings and structures, with their installation and replacement, and with the feedback of information on design, performance and costs. In short, the idea quite rapidly enlarged from being an approach in which mainte nance and unavailability costs were of central importance to one which was much more general, and therefore less tangible. Because of this the concept never took root in British industry,Plant acquisition policy and maintenance life-cyele costs Capital asset management, outlined in Table 2.2, is a more recent approach = preferred by the author ~to this area [2], It is based on the idea of ‘optimizing total maintenance costs aver the equipment life cycle’, This is best achieved through an understanding of the effects that decisions taken in the plant's pre-operational phases can have on the direct and indirect maintenance costs of the operational phase [3] (see Figure 2.4), Table 2.2 Capital asset management Definition Practice implementation Aco-ordinated management | Is concerned with: © Correctly specify, of the design, procurement, | # the specification and design and aca use and maintenance of & design for reliability and | the asset firm's fixed assets, in order maintainability of plant, | ® Use the resources to maximize the contributions | equipment, buildings officiently to the firm’s profit over the © Determine and provide life cyelo of those assets. . the appropriate leval of eare through maintenance, effective maintenanee. medification and © Determine the optimum replacamant; replacamont periods. '@ feedback of information ‘on design, parformance and costs. Source: Contributed by H.S. Riddell, ‘User os stannee plan sequlenion proceso 7 net 7 * + + + * r Spactication Design ob Manufacture -b Installation -b: Commissioning be Operation be Raplaceenent Performance # Process Cusity cocirol # Design tauts Design faults * Gesigntaults + Weor-out ‘Relate © Desmond . = aaincainaniny = Poor * bsoloseance f Raintsinaiity—rekabiiy I maintenance — # Biapesal = Suppom systema = Malopsration — i ‘Trail fewctoock LE tor pent reiaiay contr esigrrout “Extomal feedback to equipment cypaer Treiorea a robabny ata bank Figure 2.4 Factors influencing maintenance costs over the life eycle he specification for new plant must include requirements for reliability and main- tainability (ie. availability) as well as for performance, capital cost and safety. As far as possible, the expected of useful life of the plant should also be speeitied. In suppoxt of this the equipment manuals, drawings, spares lists, spares security-of supply and training 1314 Suategie Maintenance Planning needs should all be specified and, where necessary, this should be included in the eontract, At the desig stage, reliability, maintainability and useful life are of paramount impor- tance, and should be considered alongside performance. The method of production is particularly imponant. For example, if a cominuous sather than a batch process is adopted careful consideration should be given to the much higher maintenance costs that inevitably ovcur. In addition, it must be understood that design stage considerations of reliability and maintainability can also affect the duration and cost of commissioning. I dat quality contol during the plant mannjacuuring sage will stengly affect the sub- sequent level of maintenance. At the instaffatian stage, maintainability will continue to be an important considera. tion because it is only then that the mukidimensional nature of many af the mainte nance problems becomes clear. The commissioning stage will not only be a period of technical performance testing but also one of learning — where primary design faulks, that might reduce availability, might be lacated and how they could be ch ilure to do this will mean seri ous maintenance problems and ‘lability early im the operational life. Openting equipment past its usefial lyf will result in low availability and high mutintenance costs is self-evident ‘The model is looking at the acquisition procedure from the equipment purchaser! owners’ viewpoint with the emphasis placed on maintenance costs. The model shows that itis essential for the equipment purchases/owner © get involved in all stages of the acquisition procedure (indicated by the dashed & dotted line}; feedback information from all stages of the equipment life cycle to the equip- ment supplier (indicated by the dotted line); © set up a plant reliability control system to identify low reliability/high mainte- nance cost hot spots and design them out (indicated by the dashed line). nd unavailability costs is before the Clearly, the best time to influence mainte plant comes into use (see Figure 2.5). © ‘The opponunity for maintenance cost reduction is high at the design stage but drops rapidly (via several key, gateway, decisions) 10 a relatively low level after commissioning. @ It is important that the often conflicting requirements of nom-maintenance depart ments (represented, in Figure 2.5, by the downward-pointing arrows) are balanced against the maintenance requirements (represented by the upward-pointing arrows) Review Questions R21 Identify some of the impariant decisions taken in the pre-usage phases of ‘an industrial equipment life cycle that can have a major impact on the direct and indirect maintenance costs at the usage phase of the equipment. R22 What is the importance of the maintenance history record in the plant acquisition procedure?Plant acquisition policy and maintenance life-cyele costs Production wee = em Prvrgacton gasp Opportunity Other functional requirements for maintenance and lite-eyele cost improvement Typical low lavel of ‘opportunity to improve ' i Gate! | "plant is running 1 decisions ‘ _/ i 1 - Process | Project | -Prajact | Plant defined | defined | sanetion | start-up invemtion Life of plant ———» Maintenance requirements Figure 2.5 Gpportunities for maintenance and life-cycle cost improvement (contributed by Dr. H.S. Riddell) ‘The above arguments suggest the following cules for the effective application of the capital asset managemenn, life-cycle approach t maintenance management (Decisions to buy a new or replacement plant should be based on a presentvalue life- eyele analysis of costs which should consider both maintenance and unavailabil costs, these being estimated, wherever possible, from dacumented experience, 4D The owner-operator of the plant should co-operate with the designer-manufacture installer in a full analysis of its reliability, maintainability and safety characteristics. Such an exercise should include assessment of spare part provisioning, of mainte- nance personnel training and of supplier support systems. The higher the poten- lability, the more vital is this exercise. ‘The owner-operator should set up a system to record and analyze plant failures, and idenuify areas of high maintenance cost. Such a system should operate from the commissioning (with the supplier's assistance) to plant replacement. It should iden- tify causes and prescribe solutions with the aim of minimizing che tol of direct and indirect maintenance costs, Because plant design is a continuing process, infor- mation thus gathered should, ideally, be fed back to the equipment supplier or manufactures. In certain circumstances it could be fed further to a data bank shared! ‘on an inter-company, national or international basis. «The difficulty of implement- ing such information feedback continues to pose a major obstacle to the success- ful implementation of capital asset management; communication systems are expensive and different organizations, with their different objectives, are involved during the equipment life cyele.) A model of such a system is shown in Figure 2.6. tial costs of maintenance and unas 1516 Stategie Maintenance Planning Senior management Dirac, enue ‘att owvard grinning asset iesyee one Ley rity, high ‘entoes throng poce mantenarce Maintenance Suanapeare Log reat, high J wees oe wen} fe ee scomoreeron |: | Ratatury, Tenneanes [Memen Hoe ma : yt) ete of tat ‘nt tt petal * fines aed cost cists andicost dats |! " recon Tien sina |[ Provera ——— : {|} Samtaand || maimarancs |! aetna : " “ Preventive maintenance, 2 wlan wot one oD I t mee) eet Trier To | [Rew peer wan mmreres | | [Rew Exiag ce surat Dasign vmatace Figure 2.6 Capital asset management control system (contributed by Dr. H.S. Riddell) Figure 2.6 shows the interrelationships between the maintenance and design departments in a large industrial organization. The two main systems high- lighted (see also Figure 2.4) are continuous improvement (see the right side of the model} and the feed-forward of equipment maintenance histary to assist the acquisition procedure (see the left side of the model), in the organization concerned, a capital asset management system (CAMS) should be defined and ablished. This should wanscend traditional functionalPlant acquisition policy and maintenance life-cyele costs boundaries for decision-making and will require considerable commitment from the most senior management for its effective operution. ‘The CAMS is charged with the function acquiring new or replacement equip- ment, A number of other departments, at senior management level, are involved in CAMS or in providing information to it (viz. engineering, production, finance, corporate management and maintenance). This results In decision- making procedures that are complex and open to considerable influence from ‘human factors’, a.g. polarization between design engineers and maintenance engineers resulting in poor communication, and lack of maintenance input to equipment specification. Review Question R2.3 You are the Maintenance Manager of Fertec Lid, and involved in a project team concerned with purchasing @ new syn-gas compressor (see Case study 1 of Chapter 12) to replace the existing compressor, The team have already agreed on performance, availability/reliability issues and have asked you to identify the information you would expect fram the syn-gas. compressor man- ufacturer to enable you to carry out effective maintenance. Identify the infor- mation in order of importance, 2.3 Summary The application of the terotechnologic/eapital asset approach involves much higher -expendiwure than the taditional lowestbid, lowest-cost, shonest-time approach. The difficulties of i's implementation arc many — c.g. cash constraints, time constraints, the uncertainty of forecasting demand and product life — so in some situations it has to be accepted that the extra effort and cost might not be wonb the return, However, with the present tend toward automated, large, expensive plant, the adoption of this approach will usually bring considerable benefits, It requires the commitment and foresight of the most senior management, It is therefore no accident that the successful industrial exam- ples of its application appear to have one common factor, at least, af engineering dire tor who is convinced of the long-term advantages of keeping maintenance firmly in mind when designing, installing and commissioning, The maintenance manager's basic task is twofold; the determination of strategy and the “organization of resources (1c. labor, material and tools). These are difficult and important tasks in their own right, but failure of the organization 10 appreciate the fundamental ideas of capital asset management will probably mean that the maintenance manager will be wasting his time on unnecessary tasks when the plant comes into operation, References 1, Committee for Terntechnology, Terotechwology, dir hutreduction ta the Management of Physical Resources, Deparment of Industry, HMSO, 1975. 2. Riddell, #1.5., Life cyele costing in the chemieal industry. Terotecbretcer 201), Elsevict, 1980. 3. Kelly, A., Mainiewance Planuing and Control, Buwerworths, Oxtord, 1984. 718 Suategie Maintenance Planning Exercises 2.1 Qutline the plant acquisition procedures of your own company ta consider the extent to which maintenance issues are incorporated into these prace- dures. Identify any ‘human factors problems’ that hinder this linkage. E22 Carry outa brief Internet search to see if you can find information en more recent capital asset management case studies than that outlined in Reading 2.1 Review Questions Gt R21 At the design stage, the method of production, i.e. batch processes involve lower maintenance costs than continuous processes, At the specification stage it is necessary to emphasize to the supplier/manufacturer the need far properly thought out life plans, spares requirements, etc. R2.2_ Considerable information about the failure history and maintenance costs will have bean built up in the history recerd, say for pumps. This information is invaluable when deciding on 8 new pump specification and selection. R22 The life plan for each unit of equipment with recommended spares list; the name of original manufacturer of spare parts; logic fault-inding information; maintenance specification for standard jobs with safety information. Perhaps all of this incorporated into a manufacturers’ equipment manual. peel Rees es Some of the advantages of the terotechnologic approach are illustrated in Harvey and Eastburn's plant procurement (Harvey and Eastburn, 1979), see Case Study 4, The proj- ect deseribed was part of a steal bar mill rationalization. It involved an investment of £34 million in a 400,000 toniyear plant occupying a 266-acre site. Preliminary work was started in mid-1970 by the development engineering depart ment who set up a Preliminary Project Steering Committee chaired by a Works Manager and having representatives from engineering, quality control, sales, accounts, market research, strategy studies, and research and development. The basic parameters such a3 product range, size, output rate, packaging and process requirements were estab- lished by this Committee. ‘When approval for the project was given, in 1972, a project management organization ‘was formed. At an early stage, consideration was given to the problem or organizational communication, To ensure adequate control, several committees covering production control, quality control, production and commissioning, engineering co-ordination, recruitment and training, and project management were established In addition, Joint Consultative Working Groups were established, involving manage- ment and labor. These groups discussed plant designs, working procedures, safety, and so on, Regular design, manufacture, installation and other co-erdination meetings were held with contractors. A computerized network analysis of the project was used for planning and control of all phases of work. The Factory Inspectorate was involved from a very early stage to advise on, and approve, safety features and procedures, ‘Specifications were drawn up far all iterns of plant covering performanee, reliability and maintainability. This was not easy and plant personnel were closely involved with suppliers in explaining, training and assisting with the preparation of logic fault-findingPlant acquisition policy and maintenance life-cyele costs systems, Maintenance manuals, including preventive maintenance schedules, overhaul schedules, lubrication programs, spares listings, fault diagnosis information and train- ing programs were also specified. The need for modular construction, ease of access for maintenance and ergonomic considerations were also included. A percentage of the purchase cost was withheld until delivery of all maintenance manuals and initial spares was completed, Initial design work included the collection of historic information on plant perform- ance, listing of maintenance characteristics, layout and flow studies. Maintenance records for previous plant were examined in detail in order to estimate maintenance manpower and frequencies for preventive maintenance schedules. Plant availability estimates were based on racorded mechanical and electrical breakdown. The productivity services department carried out simulation studies of the plant's likely performance. The ‘lowest-bid’ temptation was avoided on many occasions, notably so when selecting automatic bundling equipment and FSD. An ergonomist was employed in the design af control panels, central cabins, crane cabs, etc. Ciher notable design features were the quick-stand-change facilities, the stand-by lubrication system, the cansiderable rationalization of pumps, drives and motars, rig- orous application of modifications to standard equipment in order to improve reliabil- ity and maintainability, the design for maximum accessibility for maintenance, the use of modular construction concepts, the functional grouping of equipment in order to facilitate FSD, plant-mounted sensors for vibration detection and fault location, the use of an ‘alarms computer’ for detecting and reparting faults and process variations. All equipment drawings were examined for spares requirements, one of the aims of the rationalization program being the reduction of the variety of spares, For example, all pipework was designed in seven basic sizes and only three types of hydraulic pump wore used. Extensive rationalization was also achieved in the required electrical spares. In order to carry out much of the above it was essential that an experienced mainte: hance engineer was recruited as a senior member of the management team. He was involved in all stages of the project, including the design, A notable consequence of this was that the building exhibited some unique features that were designed specifi- cally to facilitate maintenance organization. For example, the mill bay had two floor levels, an elevated rolling level and a lower services and maintenance level, The advantages of this underground services floor were considerable and included rout- ing of distribution and services pipework which was an improvement from the point of view of both installation and maintenance. It gave ease of preventive maintenance (with underground test points), lubrication points and readily accessible drive equip- ment, without disrupting production flow on the upper level. In addition, scrap collec- tion was facilitated by a ‘drive-in’ arrangement and road vehicles. Maintenance of ralls: was facilitated by passing the roll assemblies through the floor of the production bay directly into the roll and guide shop. After preparation the new roll assemblies were simply craned up to the production floor and refitted. Installation was supervised by a team of installation engineers who formed part of the project management team. Normal recording of plant installation problems was carried aut, Commissioning procedures (plant performance testing, training programs, a com- issioning check-card system) were rigorously formalized for both the static and run- ing phases. The installation engineers compiled lists of checks required for each plant, this work demanding considerable study of drawings and design information prior to installation, and ensured that they gained considerable familiarity with the plant design Control of the issue of the commissioning check cards was related to a computerized 1920 Suategie Maintenance Planning installation network program and cards were issued to appropriate staff when predeter- mined stages were achieved in the program. A computer terminal was available for reg- ular updating of the network, and for reviewing checks required, on a day-to-day basis while maintaining an overall picture of the installation and commissioning phase. The company’s own experience, supplemented by visits to similar plants in other countries, suggested that lengthy plant commissioning times had been due to insutfi- cient attention to training. It was therefore decided that all management, operatives, artisans, engineers and supporting personnel should be adequately trained in the the- ory and practice needed to mest both the desired reduction in commissioning time and the required operational performance of the new mill, A recruitment and training committes was established, consisting of the project manager, production engineer, personnel officer, production manager, maintenance engineer and training officer Initial instruction and training was given in 2 to 4 weeks of formal lectures and discus- sion groups. Multi-skill training was given where considered desirable. Simulated control panels and layouts were built and used extensively. Each artisan’s dossier of experience was matched against a skill and knowledge of matrix based on a job description, and was then used to compile @ training program designed to suit the individual's needs. Electricians and fitters were recruited 3 months before mill startup and were given formal lectures, site work and project work. Reqular tests were given and the training programs were also reviewed in the light of the par- ticipants’ comments on their effectiveness. Fipe fitters were recruited 2 months before mill startup and welders, boilersmiths and auxiliaries 1 month before start-up. Maintenance engineering staff selection was given some thought at an early stage. For example, the recruitment of the installation engineers took account of their poten- tial for subsequent transfer to maintenance department when the mill became apera- tional, As a result, nine installation engineers were transforred ta pormanent maintenance engineering positions. Team training was also applied and the management team a series of courses designed to improve personal and team effec- tiveness. Weekend sessions, for fostering teamwork, were undertaken by the man- agement, production operatives, artisans and engineers of each shift ‘As a result of the considerable prior effort described, the operation: nance practice that will now be outlined was made much easie The plant was to be operated on a continuous 15 shift systems for 5 days a week. During initial commissioning a one shift systam was run, this being subsequently increased to two and eventually three shifts, Performance standards were derived, for output, yield, defectives, accidents, fuel consumption, labor, maintenance, etc., for each product group. These were supported by a formal system of reporting production problems, delays, utilization, scrap, lost time and many other factors, such reporting being completed on a shift basis. Daily meetings were held between praduction and maintenance at top management level, and formal reports issued on a weekly and monthly basis. Preventive maintenance routines and tasks were designed to be carried out, wherever possible, while the plant ‘was running, the remainder being done at weekends or when the plant was standing for product changes, ete. As equipment was installed, plant history cards were opened, maintenance routines analyzed, preventive maintenance frequencies determined and a computer-controlled preventive maintenance system adgpted. A readily assessed and continually updated inventory of routines and repetitive jobs was established in the computer data bank ‘which also contained more detailed information for the execution of specific jobs. Work planning was based on computerized job cards and used ‘work measured’ jobPlant acquisition policy and maintenance life-cyele costs times for repetitive work, Information an failure cause could also be recorded on the job cards for subsequent analysis alongside the maintenance reports compiled for each shift by the shift engineer. Any delays that could be clearly attributed to design faults were charged to the design department and booked separately om the shift report for further investigation, Downtime plots were kept up-to-date and displayed in the maintenance engineer's: office and the planning officer. Availability figuras were recorded and graphed for major items of plant, and a maintenance engineering report issued monthly. Standards for maintainability and plant availal were established. Network analysis was used on major maintenance jobs. As a continuing, long-term operation, feedback of the experience gained would be directed bath to the company’s maintenance data bank and to the equipment suppliers. In achieving its worked-up tonnage level in 1 year, the plant outstripped the per- formance of any other recent and major bar mills, worldwide. A planned second com- missioning year was not needed. A 8.4% target for engineering delays was seen as unrealistic and in 1977 manage- ment agreed to set the standard at 6.6%. As it turned out the level attained in 78/79 was 5.6% which compared favorably with the 8% figure of the other major mills. Summary ‘The application of the approach that has been outlined involves a much higher capital expenditure than the traditional lowest-bid, lowest-cost, shortest-time approach, ‘The difficulties of implementing such an approach are many, e.g. cash constraints, time constraints, the uncertainty of forecasting damand and product life; therefore, in some situations it has to be accepted that the additional effort and cost might not be worth the return, However, with the present trend toward automated, large, expensive plant, the adoption of this approach can, in the majority of cases, benefit a company to a consider- able extent. It requires the commitment and forasight af the most sanior management. It is therefore ho accident that the successful industrial examples of the application of terotechnology appear to have atleast one common facter - an Engineering Director who is convinced of the long-term advantages of keeping maintenance firmly in mind when designing, installing and commissioning. Reference Harvey, G. and Eastburn, K., Terotechnology: @ case study in the application of the concept, Terotechnica 141), 1979. 2This page inientionally left blankFormulating maintenance strategy: A business-centered approach “Swrategy without tacties is the slowest route ta vietary, Tacties without strategy is the noise before defeat’ Sun Tzu, 490 ke Chinese Military Stra eee hone To explain the business-centered maintenance (BCM) procedure and show how it can be used to develop or modify the maintenance strategy for a complex industrial plant, Oh completion of this chapter you should be able to: ‘+ understand the methadology of BCM and why itis se called; © understand that maintenance strategy is concerned with deciding how to maintain the plant, with setting up an appropriate maintenance organization and with estab- lishing and using systems for directing the maintenance effort; ‘+ understand how the ECM methodology can be used to map and madel the mainte nance department of an industrial plant in order to imprave the maintenance strat- egy — the strategic thought process. Ca CRED Book divisions: ‘This chapter in the division Chapter topies —— 7 Introductory chapters ©.3.1 Introduction > Chapter 1 Maintanance and the industrial organization ©3.2 Businass-cantered maintenance: SS ® Maintenance objectives and task selection # Chapter 2 Plant scqisition and maintananee lie-cyele costs 033 An example ofthe application of BCM: background 9.3.4 Part A: Audit of the FEP maintenance epertment 93.5 Part B:An alternative: maintenance strategy # Tha top-down bottam-up approach Chapter 3 Formulating maintsnance strategy: # business- ‘centered epproach Controlling plant reliability » Exercises Part C:A langerterm view of argenizational change Ls case studios 0.3.7 The strategic thought process24 Strategie Maintenance Planning Business-centered maintenance Maintenance strategy Maintenance auditing Strategic thought process Business objectives eeeee 3.1 Introduction Devising optimal strategy for maintaining industrial plant can be a difficult task of quite daunting complexity. The purpose of this chapter is to provide the maintenance manager with an overview of a comprehensive and systematic appraach for tackling this problem, a methodology ~ or framework of guidelines — for deciding maintenance abjectives, formulating equipment life plans and plant maintenance schedules, designing the main- tenance organization and setting up appropriate systems of documentation and control. Thave called this approach businest-centered maintenance (BCM), be from, and is driv into maintenane Figure 3.1). Se iL springs nv by, the identification of business objectives, which are then translated objectives and underpin the maintenance strategy formulation (see Funcven Business objective Maintenance a objective roduction Carect as" objective Failure characteristics Maintenance ome LOA, 2 Satay teauirements nde lsuive The cen £42 | = Longevity requirements ersonnat — fF stictare, thought process ey > Plant structure \\ planning system schedule ¢ —f_ Production anrina requirements . Workload Stores * Resource a™ Resource audget forecaat polley Pa Plant tayout ~ cantract labor availablity Figure 3.1. A BCM methodologyFormulating maintenance strategy: A business-centered approach Itis this approach, ie. BCM, which therefore informs at every stage the treatment of the maintenance management problem presented in this series af three companion books: © This, the first volume in the series, is concerned with the strategic side of mainte- nance ~ identified in Figures 3.1 and 3.2 as function, objective and plan Cis simple terms, the planuing aspect of maintenance management) 8 Mavaging the Maiutenance Resorrces, the second book in the series, is concerned the onpinization of the maintenance resource to carry tified in Figure 3.1 as workload, resource structure, work planning and administrative structure (in simple lerms, ibe doing aspect of maintenance managenent). © “Maintenance Documentation aud Systems, the third book, is concerned with the documentation and control systems that are needed — identified in Figure 3.1 as con- trol (tbe controlling asbect of maintenance management). y Gul the mainlenance work - iden- Understanding Determination of Establishing & Building an function ‘objective plan ta achieve: organization to \ the objective carry out the plan y t 4 ‘Satting up control systems to check if the plan and arganization are meeting the objectives and to correct if necassary Figure 3.2 Basic steps of the management process This chapter is key to this present book because it cowers Cin outline via a case study? the concepts, procedures and models of all three books, ic. those concerned not only with the planning of me but also with its organization and control. 3.2 Business-centered maintenance ‘The structure of a methodology for developing a maintenance strategy, which [call the BCM apptoach, is outlined in Figure 3.1. It is based on well-established administrative management principles (see Figure 3.2) and provides a framework for identifying, map- ping and then auditing the elements of any maintenance management system [1], In order to better understand the purpose of Figure 3.1, itis useful to put yourself in the position of a maintenance manager thinking through how he is going to set up a maintenance department for a new plant. Obviously he needs to understand 2826 Strategie Maintenance Planning the way the plant operates, its relationship with its market and the function of maintenance within this context. The large circle is his strategic thought process starting with the plant maintenance objective (which is subordinate to the busi- ness objectives) and proceeding via life plans and organization through to control {this procedure is essentially the same as the basic management procedure of Figure 3.2). From outside of the large circle come the numerous factors (from other departments or from the environment, e.g. industrial relations) that can. affect the strategic thought process. One way of describing the fivction of maintenance was defined in the previous chapter, iz to sustain the integrity of the physical assets by repairing, modifying ar replac- ing them as necessary. This cana Iso be expressed as: to provide and conirol the reliability of the pfant, ‘The ways in which the maintenance Function might be tionship with the production function need to be clearly un achieved the meruienance objectire can be established. This can only be carried out in conjunction with the production department because the maintenance and production objectives are inseparable and both need to be compatible with the corparae objec- lives = associated with ‘maximization of profitability in ibe long term’ Gwhich recog nizes company survival as an objective in itself). It i for this reason [call the approach busivess centered, the maintenance decision-making process stemming from the busi ness objectives. fected by its dynamic rela- erstond. Once this has been. This assumes the production and maintenance departments are separate, have separate managers and budgets. Even where production and maintenance are fused into a single department the maintenance function and abjective remains distinct from the production function and objective, In this later case, it is much easier to ensure that the production and maintenance objectives are compatible Any decision on ‘how best t0 maintain a plant equipment’ or ‘how best to organize the nlenance resources’ must be based on how that decision affects the company’s boom fine. A generic expression for lhe maintenance objéctive for a plant might therefore be: to achieve the agreed plant operating pattern, availability and product quality within the accepted plant condition (for longevity’) and safety standards, and at miniraum resouree cost. By setting maintenance objectives at pkint level (a power station) and then bring ing these down to unit level (a boiler), we are in a better position to establish each maintenance ie plaw (the way it is proposed 1 maintain the unit throughout i expected life) at this lev Longevity: dictions with the designed I definition, long duration of existence, [n this ease, the term i © of the plant,Formulating maintenance strategy: A business-centered approach he preventive mairrenance scbedicte for the plant as a whole is made up from the jobs identified in the life plans for each unit, This schedule is influenced by many fac- tors, inchiding the plant-operating pattern, stauwtory safety requirements, equipment redundancy The preventive schedule defines the maintenance workload (see Figure 3.1) For example, consider a power station using three 800 MW turbo-generators, ‘Traditionally each one has a life plan based on 3-yearly major overhauls, each lasting for about 8 weeks and requiring up to 1000 men. The maintenance sched- ule would involve one of the three units coming out in the summer each yea This would generate a major peak of work far 8 weeks, the workload then drop- ping back for the remainder of the year to a level appropriate to the base staffing of about 100 men. ‘The maintenance workload in turn has the largest single influence on orgawizational design. Atthe station the management would be forced te consider contract labor ta han- dle the work peaks. In addition they may have to consider shift working to handle the high-priority work occurring on a 24-hour basis. Finally, contro! systems are required (see Figure 3.1), 10 ensure that the maintenance effort is achieving the objectives and, if not, 1 correct the life plans or organizations as necessary Review Question A3.1 You have been asked by your Managing Director to expl way what exactly is BCM. Write down an explanation - keep it as short as possible, 3.3 An example of the application of BCM: background A more detailed and comprehensive explanation of BCM may be gained by referring to an industrial application, in this ease its use in auditing the maintenance department of a food processing plant (FPP), “The plant layout was shown in Figure 3.3, and an outline process flow diagram being, shown in Figure 3.4, At the time of the audit the production pattern was three shifts per day, 5 days per week and 50 weeks per year. There was also considerable spare capac ity. For example, only three lines out of four (see Figure 3-4) were needed to achieve full capacity. However, each line had its own product mix to satisty the market demand. Thus, the availability of depended on the mark demand and the level of finished product stored. Offline maintenance could be carried ‘oul in the weekend windows of opportunity or, by exploring spare capacity, during the week. In general, the maintenance manager found it easier ta carry Out most of the offline work during the weekend. ny given line for maintenance 228 Strategie Maintenance Planning Input goods store Raw matarial processing plant Main parts: store Batch conditioning and mixing ‘Mechanical workshop | workshop fe) (dt Coda: {a} Shift fitters: (b) Shift electricians {c) Day fitters, machinists {d} Welders (8) Day electricians (fh Day instrument technicians Figure 3.3 Layout of FPP Fe ana |__| Raw material storage Processing Batch conditioning and mixing Pattern of operation 50 wenks x 5 days x 3 shifts, Figure 3.4 Process flow for FPP Four canning lines als ][e]o | ype le Finished store and despateh Packaging Une e JENN [bined Canning Hydros (cooking) Labelling Packaging Pallstizing Markat | demand for product Monday/Friday The relationship between the plant and the market demand for its product {and/or raw material supply) has a considerable influence on maintenance strat- egy. It governs the way production will use the plant — the plant-operating pattern. This in turn determines the frequency, duration and cost of scheduling30 Strategie Maintenance Planning Ifthe maintenance department were to develop the ‘best way of maintaining the plant the maintenance objectives needed to be interpreted in a form that is meaningful at a lower level of equipment, the plant unit ~a hydro, say, or the cooker (see Figure 3.5). This allowed the maintenance life plaus for the various units of plant to be established Production requiraments a | Corporate objective Bataty requicomente! 1 Longevity requirements | || ret | 44 I \ Y Food pracessing Plant level Plant maintenance ebjectives Compatibility Hydro maintenance unit Other objectives level units Canning To achieve the user requirements (availability, safety, longevity, etc. } at lowest cost Figure 3.5 Bringing plant maintenance objectives to unit level The audit established that the FPP were using @ management-by-cbjectives (M1BO} procedure. Business objectives were set, and translated into mainte- nance objectives by the chief engineer. These in turn were translated into key result areas (KRAs} which, rather than being objectives, were a series of future actions to achieve the maintenance objectives. The auditors considered the pro- cedure to be excellent but the KRAs were not well enough directed toward main- tenance objectives and were not sufficiently numerical. 3.4.2 Life plans and preventive schedule Ageneric model of a life plan for a unit of plant {a hydro, say) i§ shown in Figure 3.6. plan can be considered asa program of maintenance jobs (lubrication, inspection, repair, replace and carried out at set frequencies} spanning the expected life of the unit,22 Strategie Maintenance Planning resource scheduling and budgeting, The preventive schedule was based on the scheduling gt €$ outlined in Table 3.2. This meant that most of the second- line work was carried out at weekends, Little attempt had been made to schedule ‘this latter work into the weekend, by exploiting spare capacity. Output ‘Output Output Raw factors factors factors terial + * > aay Mixers canning +] yas Product out [ | Operating Mixer life Operating Canner life Operating Hydro life method plan mathod plan mathod plan \ fl ‘ | Jobs fram unit * (lie plans to. schedule Preventive maintenance schedule Figure 3.7 Build up of plant preventive schedule from unit life plans Table 3.1 Qutline the hydro life plan Woekly ‘Cleaning, check operation of hours ‘critical parts, lubrieation 2weeklyimonthly | Lubrication routine. hours a monthly inspection of main drive te include Bhours | MinorWork ‘oil analysis. 6 monthly Inspection of all flights and conveyor | 3 shifts drives. Clean hydro internally. Gil analysis of conveyor drives. 12 monthly Fixed-time replacement of sprocket Twook bearings. Overhaul drive unit and rewind moters. 2 yearly Replace with speed drive belts, week B yearly Major rebuild, Exact frequency Sweeks | Major work ‘on condition. Workload ‘The maintenance schedule generses the maintenance workload (see mechanical workload for the FPP is mapped in Figure 3.8 by ils scheduling characteristics the electrical workload ean be mapped in the sime way), First-tine work is made up trom, emergency jobs (which can be defined as work needing to be cartied out in the shift of ats occurrence) and jobs (corrective oF preventive) that are small and do not require detailed planning — they ean be ‘fisted in’Index Adjustment, see Administeative structute, 37-38 Agitator eage, 155 Agitator system drive train, 134-15 Agricultural chemical plant, 219 &t se Alteznative maintenance strategy. 415 Alumina refinery, 208-210 Aluminum smelter, 230 et seq Assemblies, $5 Availability, 15, 27, 71, 248 FGM, see Business-rentered maintenance Benchmark, 79 Block diagram analysis, 141 Business-centered maintenance (RCM). 23 et seq alternative steategy, 44 application of, 27=29 audit, 29 et seq, methodology, 24 organizational change, 45 steategic thought process, strategy formulation, 23 et seq Business objectives, 24, 26-27, 68 Calibration, plant items, 95 ‘Capital asset management, L1— se study, 18-21 ti les, Hor eff pplication of, 15-17 Case studics agricultural chemical plant Fertec, 219 et seq aluminum smeker Smeltall, 230 et seq coal mining industry: I power utilities: dlistsibution system, gas-fired power st oilefired power st maintenance strategy open-cut coal mine, 244 et seq. passenger transpon fleet, 250 et seq peltoledm refinery, 240 et seq Catcheup maintenance, 187 Coal mining industry, 243 et seq COALCOM, 244-2 Complex plants, maimtenanee strategy Complex replaceable items (CRIS), 0, 91 Condition monitoring, 267 condition checking, LOT simple inspection, 107 techniques. 109-112 trend monitoring, 107 Consition-hased main 108 et Consequence analysis, 142 Controlling plant reliability: incorporating control systems, 198-208 prose 198 96-1988 Comrective maintenance, 267 cost, 86-88 Critieality eanking, 147, 170, 174, 175, 268 ance (CBM), 101, ve cont Decision-making, 85 et seq, 119 et seq Decision tree analysis, 142, 1415 Design-out maintenance, 116 264-266 Disutbution sysien policies, 115-116, 122, 128, 126 power utilities, 255 operating characteristics, 255-256 mergency maintenance, 267 Failure mode, 91 Fault tree analysis, 142 Feedback, 21,43 Fertec Lie jenance strategy: ammonia plant strategy, 222-228 comments and recommendations, 228-230 plant-operating characteristics, objectives, FMEGA procedure, 142, 143 FPP maintenance departme audit of, 29 et seq audit summary, 43 control system, 41-42Index FPP maintenance department (Contd) documentation, 4243 life plans, 30-34 objectives, 29-30 organization: administrative stroctm B37 preventive schedule, 30-34 workload, 52-34 work planning, 38-41 Sas-fired power station: maintenance strategy: hbase load, 257 twoxshift operation, 257. operating characteristics, 2 Gauss's distribution, 277-278 Gold mine milling process, 210-212 Harard rate, 279 Hidden funetion, 91, 114, 142 High-level items, 90, 91 Hyper-expanential, 278-280) Industrial organization, 3-5 maintenance management, 6-7 Industrial plant, structure: replacement policy, 61-62 mienanee reasons, 60-61 maintenance strategy. 62-03 modeling, 55-60 physical asset systems, 34 dnv-sites nepait, 89, 95, 96, 101 techniques, 269 et seq Introxhuctory failure statistics; , 278-276 hyper-exponential/ranaing:in pdf 27279 negative exponential/random failure pdf, 28 Normal/wear-aut pdf, 277-278 probability density functions, 2764277 whole-life item failure profile, 280 Kaizen, 198 Key performanes ulices, 79 Life plan, 86, 88, 126-150, 171, 176 Life-eyele casts, 9 influencing factors, 11, 13-14 Long-term profitability, 5 Lost output cost, 72, 75, 88 fon cost, 170, 186 Lost pros Maintenance, 267 casting system, 41-12 funetion, 26 “objectives, 26-27, 29-30 terminology, 267 Maintenance steering group: (MSG), 156 Maintenance acti in-site repair techniques: repair v8 replace decision, 101 reconditioning: internal vs contract, 99-101 repaie vs replace decision, 95-9 Maintenance action, timing, best maintenance policy, L4-118 andltion-hased, 106 design-out atiintenance, 114 fixed-time, IN2-LU6 ‘operne-to-failure, 113 opportunity maintenance, 113 Maintenance auditing, 29 et seq Maintenance costs, nce effectiveness, 75, 1116, 2488 Maintenance abjectives, 68, 75 formulating procedure, 75-79 generic statement, 74-75 in practice, 7-81 maintenance performance indices, 79 maintenance resources: desired plant safety, 70 phint longevity, 69-70 phint ourpur Factors, 6 product output, 70-74 Maintenance performance pce prilicy establish noemal items, 115 et seq special items, HAAS Maintenance significant items (MSIs), 140 Maintenance strategy, exercises: alusaina refieesy., 208-210 gold mine milling process, 210-212 Maintenance task selection; applic 145 et seq ‘chemical reaction vessel rubber fining, 122-125 life plan: assembling, 1 standby units, 130 et seq inclices, nent Set seq,paper machine: roller element hearings, 126 rotary joint, 123-125 using REM, 139 et seq Maintenance windew, 29, 267 Maintenance-causing items, 55, 61, 175 Management functions, 7 by objectives, 221 role, 5 weories, 5 Negative exponential, 278 Normal itents, 115=117 Nomal pdf, 277-278 ‘Offine 267 fired power station: Lintenance strate: alter privatization, 261-262 before privatization, 260-261 objectives, 259-260 operating eharaeteristies, ‘Online maintenance, 267 ‘Open system, + Ope: modeling fleet operation, status

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