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Investigation g on Development Maintenance Strategies in Iranian Petrochemical Companies Case study: Esfahan Petrochemical Company
by Ali Mohammad M h d Yasliani Y li i Thesis Advisor Dr. Gholam-Ali Raissi-Ardali August 2009 www.YSLPM.blogfa.com
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
The most and common problems in petrochemical companies are making decisions about the maintenance organization, resources, implementing proper systems, outsourcing i , asset strategy and d maintenance i management strategy In EPC, a maintenance self assessment at 2007 revealed that EPC maintenance performance is not sufficient
These encouraged me to use my lessons learned during the MSC program (such as having helicopter view) and bring a big picture of the maintenance in mind to probe the problems.
Introduction ( (4) )
Thesis Hypothesis yp
The hypothesis of this research is that although traditionally asset strategy and maintenance management strategy are the most important areas in a maintenance strategy development program but the contribution of the following components play significant roles in a maintenance strategy development program : Changes (in maintenance world) Maintenance Objectives Maintenance practices Benchmarking, auditing, self assessment Asset strategy Maintenance management g strategy gy Setting Targets Co-ordination of the Policies and procedures
And in a traditional maintenance strategy development there is not a balanced contribution of the mentioned eight components.
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
Introduction ( (4) )
Research's tasks
The first task is to illustrate that all the eight mentioned components play important roles in the developing maintenance strategy at the world class level in the public domain. The second and the main task is that investigate how these component have been considered in developed maintenance strategies in EPC and explore why some of them has received more or less concentration and why differs from theory. If the research research's s results proved the hypothesis then eight mentioned components would be ranked from the most to least involvement in developed maintenance strategies program for EPC.
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
Literature Search
I had a short look at maintenance and strategies definitions and business strategy's influence on the maintenance strategies. g I reviewed and categorized the maintenance leaders and other researcher's findings about existing theories of the following components of the model. Maintenance definitions Changes (in maintenance world) Obj ti Objectives and d targets t t Maintenance practices Benchmarking, audit and self assessment Asset strategy Maintenance management strategy Setting Maintenance objectives and Targets Setting Coordinated maintenance Policy and Procedures
57 resources included i l d d Books, B k A Articles, ti l Internet I t t resources and d etc t are studied t di d
Research Methodology gy
Sources of information and Method of data gathering primary y data was g gathered through g q questionnaires, interview and observation The p research techniques. The secondary data about maintenance strategy are extracted from a wide range of resources which already y p published and available in the p public domain such as books, journals, E-resources, internet. This information are categorized and classified in sort of topics with a complete Harvard referencing for them.
Validity The prepared questionnaire was reviewed by following peoples: 1 Thesis advisor 1. 2. Five maintenance experts 3. Four manager including Maintenance, Engineering, Production, Contracting managers. (who have MBA degree from the Calgery University) Reliability Statistical Package for Social Science (SPSS) is used to calculate Cronbach's alpha for reliability
Research Methodology
Phase two (interview)
Consists of fifteen semi structured interview. The factors that relevant calculated mean (phase one findings) was less than 2.6 or was greater t than th 4.2 4 2 were discussed di d in i order d to t certify tif the th results. lt Furthermore, I obtained complementary data through open ended questions during these interviews
57 Resources
Department Maintenance Production Engineering Management HSE, R&D, Planning Total Table 4-5 45 Respondent's education distribution
N 16 7 5 7 5 40
Percentage 40.0% 17.5% 12.5% 17.5% 12.50% 100.00% Expert Supervisor Middle manager Manager Top manager Total Table 4-2 42
Job
N 15 5 13 5 2 40
Degree Diploma High national diploma Bachelor of science M t degree Master d of f sciences i Phd Total
N 0 2 31 7 0 40
Percentage 0.0% 5.0% 77.5% 17 5% 17.5% 0% 100.00% Less than 5 6-10 11-20 21 30 21-30
N 1 1 23 15 0 40
EPC has employed new expectation of the maintenance (HSE) as main driver of developing maintenance strategy? New concept of the equipment failures (six failure patterns) is considered as a part of maintenance strategy development in EPC to reduce the maintenance cost and increase availability Hazard studies, failure modes, effects analyses are used as support tools in developing EPC's maintenance strategy to increase equipments performance Major j shift in organizational g thinking g towards participation, p p , team-working g and flexibility is considered in developing EPC's maintenance strategy to increase equipments performance Computer systems and software are considered as an important factor in developing EPC's maintenance strategy to increase maintenance performance
40.0% 30.0% 20.0% 10.0% 34.5% 31.0%
F P F P F P F P F P
3.18
2.5% 1
FC
3.18
2.5% 3
FC
2.55
7.5% 1
SC
3.2
2.5% 0
FC
4.25
0%
EC
21.5%
10.0% 0.0% Strongly agree Agree Neither agree nor disagree Disagree
August 2009
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
Interview findings certified the results and confirmed that respondents did not misunderstand i d t d or misinterpret ii t t the th questions ti
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
5. 5 6. 7. 8 8. 9.
Existing E i ti weakness k and d treats t t Strong points and opportunities Prioritize equipments and relevant task EPCs EPC s maintenance stakeholders EPCs maintenance indicators
Cost indicators Equipments performance indicators Systems performance indicators
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
Conclusion
Prove research hypothesis and rank components Based on the questionnaire's finding which is supported by two other data collection instruments, it could be concluded that the research's hypothesis is proven due to the discussed components received a variety of the marks and graded in two different levels Fairly Concentrated and Very Concentrated. EPC has the most attention on the maintenance objectives and the least attention to the maintenance practices. p Of 40 completed questionnaire, during interview and observation I can not find any other component which play significant role in the maintenance strategy development that I missed in the studied model. Most discussed factors in the open ended questions during interview or added in the questionnaire by the respondents could be linked with one of the existing discussed components. components
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
Conclusion
For each components the reason that it is placed in the fairly or very concentrated level and how is defer or is the same with theory will be discussed in detail, but at this point the explanation that steps of developed maintenance strategies in EPC differ from the theory are as below:
For many years EPC had F h d been b a subsidiary b idi company for f National N ti l Petrochemical P t h i l Complex (NPC). It caused EPC followed NPC's policies even in the maintenance section. NPC defined the budget, maintenance indicators and etc. The most important thing is that a certain maintenance tasks and policies are copied from the other petrochemical plants and have executed for many years. EPC had been a g governmental company p y for many yy years. In a g governmental company p y cost is not as important as a private company. It affected all the resources such as man-hours, spare parts and etc. Therefore planning had been lost its usage. Having H i a clear l strategy, t t mission i i and d vision i i has h been b more concentrated t t d from f th time the ti that EPC was disconnected from NPC. Before that time, it caused EPC concentrated on the only two objectives that were availability and reliability with no (or less) cost consideration
Conclusion Component 1
Changes in the maintenance world (Mean=3.27 Concentration Level=FC) In EPC Why EPC was a sub company of the NPC for many years and received changes hints from the mother company in limited. EPC was a new constructed company with the highest technology (at that time) and therefore the needs for failure modes and effects analyses was not sensed
40 0% 40.0% 30.0% 20.0% 10.0% 0.0% Strongly agree Agree Neither agree nor disagree Disagree Strongly Disagree 10.0% 3.0% 34 5% 34.5%
EPC's strategy are fairly according to the current theories regarding to the changes in the maintenance world. EPC has not used hazard studies, studies failure modes, modes effects analyses as proactive support tools to develop maintenance strategy
31.0% 21.5%
Conclusion Component 2
Maintenance objectives (Mean=3.63 Concentration Level=VC) In practical EPC has covered most of the main factors in the theory regarding the maintenance objective j The research's findings certified that availability, reliability and long life time for equipments through the cost effective planning and control all type of the resources has been considered as the main objective j of the EPC's maintenance. Maintenance objective are aligned to the companys objective.
Why
EPC has focused to improve availability and reliability, optimizing equipment life as main objectives Maintenance have a representative in steering committee, committee It caused the maintenance objective comes from up to down
50.0% 40.0% 30.0% 20.0% 10.0% 0.0%
Strongly agree Agree Neither agree nor disagree Disagree Strongly Disagree 11.0% 47.0% 36.0%
6.0% 0.0%
Conclusion Component 3
Maintenance practices (Mean=3.01 Concentration Level=FC)
In EPC
EPCs C maintenance i strategy development d l did not meet the h available il bl (current) ( ) theories regarding the matter. The three factors RCM, maturity status concept of the practices and TPM received the lowest numbers in this section.
Why
RCM needs a good team working and TPM needs a well organized co-operation but the relevant cultures are not created in EPC yet. EPC from 1997 till 2007 had an interruption in its maintenance development program. p g EPC has no specific maintenance benchmarking, audits ad self assessments to reveal the current practices performances and compare with the leaders in this area.
45.0% 40 0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
38.5% 29.5% 19.5% 8.5% 4 0% 4.0%
Strongly agree
Agree
Disagree
Strongly Disagree
Conclusion Component 4
Self assessment, auditing and benchmarking (Mean=3.28 Concentration Level=FC) In EPC Why EPC C be benchmarked c a ed his s pe performance o a ce w with t ot other e N NPC's C s subs subsidiary d a y co company pa y in a limited range. Before implementing CMMS, indicators calculations had been very difficult and with many errors. Less concentration are made to define standard definitions of the maintenance key elements and areas.
45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
41.0% 31.0% 17.0% 9.0% 2.0% Strongly agree Agree Neither agree nor disagree Disagree Strongly Disagree
Self assessment, auditing and benchmarking are Fairly Concentrated Continuous and systematic benchmarking and self assessment program has not considered as a key component in developed maintenance strategy at EPC
Conclusion Component 5
Assets strategies (Mean=3.52 Concentration Level=VC) EPC has covered most key factors regarding asset strategy. Assets strategies are very concentrated EPC has prioritized the equipments and it has as systematic approach. The selected tasks also are made based on the equipment's priority. EPC uses preventive, predictive, corrective and improvement maintenance to improve assets performance. Why The Th main i reason is i that th t asset t strategy t t in i the th most t companies i has h the th meaning i same as maintenance strategy and is one of the areas which received more effort. This part has a technical dimension which is handled by to the maintenance experts so it automatically t ti ll receives i more attention. tt ti Assets are directly related to the production therefore has an important part in company's profit. 50.0% 44.0%
40.0% 30.0% 20.0% 10 0% 10.0% 0.0%
Strongly agree Agree Neither agree nor disagree Disagree Strongly Disagree 10.5% 11.5% 1.0% 33.0%
Conclusion Component 6
Maintenance management strategy (Mean=3.34 Concentration Level=FC) In EPC Although EPCs maintenance has business elements such as policies, aims and objectives, a resource structure, an organization structure, procedures, documentation and computer systems but findings reveal that EPCs maintenance does not have a business culture and maintenance performs as a functional department. Why EPC stepped on the way of changing company's culture from a governmental company to the private one but it is not completed yet
45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0 0% 0.0%
39.0% 39.5%
6.5%
10.5% 4.5%
Strongly agree
Agree
Disagree
Strongly Disagree
Conclusion Component 7
Setting long and Short term targets (Mean=3.46 Concentration Level=VC)
EPC has set maintenance long and short terms goals according to the exciting theories The h goals l are set by b the h maintenance i top managers and d have h up to down d process. EPC has set its short and long term maintenance goals in order to direct the effort of maintenance people toward the major targets. EPCs maintenance indicators prove that objectives are made up of attributes, unit of measures, a quantity and a time unit. EPC at t the th company level, l l has h defined d fi d its it long l and d short h t terms t t targets t and d guided id d all ll departments to define their targets and there is a committee to evaluate departmental targets and their links to the company's objectives. Maintenance top manager does not deliberate to the detail technical point, point instead he prioritizes of the companys needs and then evaluates and defines how the maintenance functions should respond and be organized in supporting those needs
60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%
Strongly agree Agree Neither agree nor disagree Disagree Strongly Disagree 7 0% 7.0% 10.5% 1.0% 48 0% 48.0% 33.5%
Why
Conclusion Component 8
Coordinate maintenance policies (Mean=3.44 Concentration Level=VC) Although EPC has well organized exciting policies but EPC has not paid attention to the all policies sectors in the same way and specially defining, defining implementing, implementing trace changing and improving is not have a systematic process. EPC has certain written procedures and checklists which are available through CMMS These procedures were created based on the vendor CMMS. vendor's s recommendation, recommendation gathered experience and analysis results in order to ensure that critical tasks are performed in a proven and standardized way. This was maintenance top managers duty but previous maintenance top managers were not familiar with the importance of this component. CMMS is a powerful instrument to manage maintenance and EPC has developed an appropriate CMMS. This tools is infrastructure to define, integrate, coordinate and evaluate certain policies and them. 60.0% 48 0% 48.0% . 50.0%
40.0% 30.0% 20.0% 10.0% 0.0%
Strongly agree Agree Neither agree nor disagree Disagree Strongly Disagree 7 0% 7.0% 10.5% 1.0% 33.5%
Why y
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
Recommendations
The researcher believes that only balanced and chain involvement of the eight mentioned components would lead to the enhancement in the maintenance performance. Therefore for all components appropriate action plans are needed or the exciting activities should be actuated toward the available theories at the world class level. The following action planes are recommended to move EPCs maintenance performance f i the in h direction di i of f world ld class. l
Components Practices Asset Strategy Maintenance objective Short and long term targets Maintenance management strategy Coordinate policies p Self assessment, auditing and benchmarking Changes in the maintenance world M i Maintenance management strategy Coordinate policies Benchmarking, Auditing and self assessment Process Total T l Productive P d i Maintenance M i (TPM) Balanced Score Card (BSC) Required Action Plan Reliability Centered Maintenance (RCM)
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
Moreover during this study I convinced that balance score card BSC which is a powerful tool to monitor, p , control and deploy p y strategies g could be used in the maintenance strategy development program with a certain changes. For instance instead of the four financial, process, customer, growth and learning perspective we can set other appropriate perspectives related to the maintenance.
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009
MSc in Construction Management Professional Dissertation Presentation by Ali Mohammad Yasliani August 2009