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Approach to Zero Breakdown A Challenge of Multi Management Aspects YP Chawla Hd.

d. Energy Sector Apollo Tyres, National Jt Secy IIPE; +91 98107-08707

Abstract: Todays Drivers of the Economy & its parameters have changed drastically. The Plant Top Management is under pressure to give higher returns, higher growth, higher productivity, with increased wage bills, fast changing technologies, new competing Plant Capacities coming up, laced up with slow down in economy etc. Concepts like Zero Wastage, Zero Defect and Zero Breakdowns with updated technologies, processes have come into play. Improving the existing plant productivity are the challenges of today. The Maintenance Manager or an Engineer is no more a person with a Picture of Greased hands but a dynamic, well educated, well read of latest knowledge, seamlessly knowing all the aspects of the complete Plant Operation , right from indenting the plant requirements, to design , to operation and getting the best returns on the Asset. This is, what is expected from an Asset Manager. But is the Management aligned to this concept and provides Asset Managers all the opportunities to give their best? Do the Personnel Department help them to have the best team? Does Finance Man provide them Funds at appropriate time? If all this is available, then what an Asset Manager can give the organization is attempted here. Can we really achieve zero breakdowns at our plants or facilities? Is it conceivable-or even desirable-to have zero breakdowns? Is it not a Political Statement only? It is similar to quality initiatives, the goal is zero defects. While most companies may never achieve this goal, but do develop strategies or methodologies approaching to very close to Zero defect - a six sigma quality aspect. Such can be an aspect of Six sigma reliability an approach to Zero Breakdown where the cost of equipment or asset reliability benefits achieved exceed the Cost of six sigma reliability. It is like a F1 Tyre Replacement Benchmarking approach. An Attempt has been made through this Paper to project a picture of the Plant Maintenance on a much larger Canvass as Asset Management thus elevating the Maintenance Engineer to an Asset Manager to a Business Leader Asset Managementa Business Objective Asset Management is an Overall Equipment Effectiveness, picturing the equipment or assets performance, its availability, the performance rate, as well as the quality rate cumulating to the Assets capacity. The Role of Asset Manager gets enlarged in this competitive world, ensuring that nowhere in this world, another company having the same assets which produce greater capacity from those similar assets than his Assets thus getting the most out of the assets, through application of an holistic approach to the Plant Performance by blending the availability, Performance rate & the Quality, at least utilization of Resources in terms of Money and Manpower thus benchmarking the Return on Net Assets (RONA) or Return on Fixed Assets (ROFA) the Bankers requirements. Focusing on the above Key Result Areas (KRAs) is to optimize the utilization of the assets by implementation of such strategies that eliminate all breakdowns of the Asset. In reality, whether a function loss or a function reduction breakdown, all breakdowns impact a company financially. Zero breakdown strategies are designed to provide cost effective solutions to equipment problems, allowing companies to realize the maximum return on investment of their assets.

Aligning - maintenance strategies to Breakdown curve

2 Predictive maintenance conditionbased strategies

3 Corrective maintenance reactive-based strategies

Failure occurs

eX X Vibration Oil c X n X a m r 1 o f Preventive maintenance timer e and usageP based strategies

Repair Repair initiated schedule d Parts, manuals Failure & tools reporte d located

Noise X Heat X


Asset Managers Role is to get into the shoes of the other Managers to achieve the above, and take them along in his journey for Asset Management. In many organizations Role of Asset Management starts with the first training on the new asset being Installed or intended to be installed and is out of the loop till this stage, even if an Asset manager attains a leadership role and is a part of the management committee.

Networking by the Asset Managers - A Challenge to network , with other department functions immediately on their leadership transition at the inflation point in their careers, is to force them to rethink about themselves and their role for an integration with the Organization Goals, to avoid an discomfort after rising the ranks, which they have achieved by the dint of their strong command on Technical Aspects of their job role and a nose-to-the-grindstone focus on accomplishing their teams objectives. Asset Managers Challenge to graduate from Managers role to a leaders role and to face situations beyond their functional specialties and strategic issues that will involve relational & not analytical tasks covering a diverse array of Current and Potential stack holders, not to considered as Distractions from their real work, but to be at the heart of their challenging role. This requires a real good networking by the Asset Manager - a recipe for reaching for a leadership position rather than staying at Managers Position or in succeeding in Leadership Position thus reorienting him towards achieving success in all Management Functions. Any good Plant Manager is aware of the Reducing Performance as at situation 1 in the graph above and quite often keeps his figures crossed as the Performance deteriorates and goes in for Predictive maintenance strategies before the Failure and going in for a Corrective maintenance. A good Plant Manager is balancing the Asset Performance with that of the Business Optimization meeting the challenges of the market forces on one hand and the Stake holders at large. Reliability Growth Asset Management to start at the Design Stage itself

Design for Maintainability

Prepare operational specifications and Evaluate procedures, develop maintenance and development options inspection strategies, prepare input to asset reference plan, develop facility data
Development design

Maintainability checks RCM Prepare and consolidate plans and budgets

Unplanned cost

Transition to Planned Maintenance

Mapping total cos t the practical side

Planned cost

Design & construction

Total cost


Review and update maintenance strategies, Improve Schedule performance, Decide on estimates, reference remedy or plan, FEMCA improvement (or Schedule asset related abandonment) work Abandonment Analyze Identify and Execute define ORDM Analysis unforeseen of asset work performance and maintenance system effectiveness

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12

The Asset Manager needs to understand how Machines are Designed and the Limits these machines can be taken to Live within the unforgiving Nature of Machine Design, Strength of Materials) Nature of Machine Design, Strength of Materials Limitations and the resources the Asset Manager has on his command & where to transit to Planned Maintenance & Opt for Outsourcing etc.


Detection of Failure Sources

Breakdown / Reliability + Design

Reliability Assessment Decision Planned Reliability

Bottom- Line Maintenance Key Result Areas ( KRAs) Metric Definition Target Individual System or 100% or Asset is available for Zero Producing out put of Breakdown required Quality During Down Time % Failure Events that go through 85-100% Analysis Analysis of Failure Mode , Effect & Root Cause Corrective Maintenance % Planned Work Hours - advanced 85-95% Work Scheduled / planned Planned Maintenance at % Overtime 5-8% Overtime rate Relative % Annual Maintenance Maintenance Spending Vs. Asset 1.5 -2.5% cost Replacement Productive Hours vs. Technician waiting for Parts , 75-85% Productivity Rework Rework due to Poor % Rework Installation or incorrect 2.5- 3.5 % Diagnosis

Improving Reliability by Setting Maintenance KRAs or Key Performance Indicators (KPIs) and Measuring Outcomes Meaningful Maintenance and Reliability Performance Measures Adopting a Profit Centered Maintenance A Challenge to Asset Manager By Focusing on the Return on Net Assets (RONA) or Return on Fixed Assets (ROFA) by Moving from Reactive to Proactive to Risk Reduction. Each Process is Part of a Series of Processes -The Process Chain that Binds Us with our Asset Thus Maximizing Life Cycle Profit Maintenance for achieving Business Objectives and Optimizing Stake Holders returns

Asset Management Business Processes Asset Management Plans Strategic Initiatives Annual Budgets

Operating Budget

Capital Budgets

While Designing a Plant, it is actually Designing a Business, where Operating Costs are Committed. The Design Process limits Reliability Design and Operating Cost are to be totally optimized for Risk considering the Life Cycle Implications, Life Cycle Risk Management Strategy. Why we Need Defect Elimination and Failure Prevention Problems Waste Time, Money and Resources, Identify Defect and Failure True Costs Electronics & Instrumentation A Boon & A Challenge The Instrumentation has made the Life of Asset Manager easier for various Diagnostics. Manual tests are prone to human error, and if tests and inspections are not linked directly into the Computerized Maintenance Management System, then it is difficult to track any missed or inaccurate manual measurements. The end result is that manually recorded results can very easily go out of date and eventually you may be relying on old data to interpret the condition of an asset. Today's information technologies and processes have improved asset management strategies, advantages and implementation challenges of Maintenance, Repair, and Operations software (MRO). Not all assets are created equal. Plant Manager needs to prioritize by deciding which assets contribute most to the operation. Some may run to failure, but others can differ in strategy. Predictive strategies and analytics might be applied to the most valuable assets to create more lead time and flexibility. Sensors can communicate system needs into MRO, a portfolio of assets, providing a solution set for enterprise, plant equipment, software, fleets of assets and all conditions above. Next generation MRO tools can help Asset Managers:

Do more with less, extend the life of current assets, maintain product quality, manage waste (labor raw materials and energy), and grow the business. Overcome operational hurdles, such as globalization over multiple sites, cultural changes, scheduling pressures, and the need to transform data into information. Better manage risk, related to regulations, health, and safety issues. Address technological challenges, such as short and long term data flow, removing silo walls, and justifying focus on MRO tools, to create the most throughputs at the lowest cost.

Increasingly the IT organization is partnering in MRO efforts as a team member, in part to help "green" become a revenue opportunity. The Asset Manager is required to understand the IT as much as a Soft ware Engineer to optimize its results. Wireless technology is a mostly untapped resource in the industry that can have a significant impact on the way business is done offering a greater degree of connectivity among devices for enhanced monitoring and asset utilization leading to the development of new applications that improve productivity, uptime, and overall business performance. Industrial automation is one segment of the global economy that, to date, has failed to take full advantage of wireless technology. Major industries such as Rubber, Oil and Gas, Chemical, Power, Steel, and water and wastewater treatment continue to operate their plants mostly with older, hardwired control systems.

A Caveat The Computer Connected Machines are now being challenged by Computer Virus sent for various Soft Ware installed in Machines to score a point over Competitors of Similar asset manufacturers, owners, and the Software suppliers. Organizational Structure is sometimes, an overlooked area for organizations attempting to adopt Zero Breakdown Strategies. How a company decides to organize the maintenance function can enable or disable their ability to properly care for the assets/equipment. Organizational design for maintenance includes, Defining Maintenance, Objectives of Maintenance. Organization and Staffing and most important Roles and Responsibilities while considering the Maintenance Man as an Asset Manager. Companies Policies trying to improve maintenance policies and practices realize, in most cases, that it is an evolutionary process not a revolutionary process. In reactive organizations, the production or operations group is usually not satisfied with the level of service it receives from the maintenance organization. There is constant conflict between the two groups and, in most cases, the maintenance organization loses. This conflict often leads to restructuring, downsizing, changing reporting lines, and excessive contracting out. Human Asset Development for Plant Assets Management is important to all levels of the Asset Management organization. Unfortunately, in todays volatile financial environment, Asset Maintenance Programs are the first to receive a cut back. This is especially true of programs that are perceived by management as nonessential, which includes (in many organizations) updating the knowledge. This short-sighted philosophy (if it exists in any organization) must change if maintenance is to be able to fully contribute in a zero breakdown initiative. Outsourcing of Asset Maintenance enables budget flexibility, for one. It lets organizations pay for only the services they need and when they need them. Combining asset management and maintenance outsourcing reduces MRO costs, increases ROA. It reduces the need to hire and train a specialized staff, brings in engineering expertise from the outside, and reduces capital expense, yielding better control of operating costs. When the maintenance needs change, so can be the outsourcing arrangement. However, it needs a good team of Dynamic Asset Managers at Organization in choosing the best, integrate it effectively and not play into the hands of the Outsourced team. The Asset Manager need to have an overall view of all aspects of the complete plant and is able to success fully navigate through the complex waters of a large integrated Organization structure. This may be seen as a change in the role of the Asset Manager of today . Concluding Remarks Successful Zero Breakdown Maintenance is thus built on the following Hall mark fundamentals: The zero breakdown equipment needs quality design, low-stress and less fatigued parts kept in good health. Zero breakdown maintenance is to stop human error from causing plant and equipment failures needs a team of Talented Top Persons who can get involved right from Indenting, Procurement, Selection & the Design Stage, Know the Financials, returns on Asset Capital Cost and can undertake work in pressure conditions with a good team work with appropriate updating in knowledge for the Vital Equipment, processes, Processes, economics of outsourcing Maintenance, ITs role, Removing operational risks of the Asset & Plant for benchmarking the Performance with integrated operational risk management across the equipment life cycle , and the Best Practices in Maintenance and Reliability. A Parting suggestion Organizations need to redefine what businesses they're in and want to be in, re-evaluate processes, rationalize systems, benchmark and measure, and create new sources of revenue out of its Operations. A Dynamic role of an Asset Manager can help connect silos, help standardize and analyze what's going on, and build-in agility in the Organization. It is a time full of opportunities & Challenges for An Asset Manager. The Asset Manager has to be more innovative Navigating Personnel issues and Continuous knowledge updating comes down to effectively in managing & getting the best returns from the critical assets by Zero Breakdown Strategies of World-Class Maintenance Management Benchmarked Practices.

***** About the Author: BE Tech. & MBA (Fin), PGDPM & PGDMM from Delhi University. Export Mgmt. from Oxford. Over 4 decades of Experience in diversified sectors covering Energy including Solar & other Renewable Energy, (Ex. BHEL), Water Sector, Agriculture, Infrastructure. Widely travelled abroad & in India including some Foreign Postings. National Jt. Secretary of IIPE Contact: ; 98107-08707 Written Papers on diversified subjects-

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Disclaimer While every effort has been to taken to ensure that the published information is authentic & reliable; and has been used or seen by the author successfully, the author or the company undertake no liability for any damage, accidents, financial loss or expense arising from the contents of this paper or a different behavior of the Asset Management so described, which are generic and offers Princoples, and as such may be taken up after due diligence, specific to your industry needs.

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