Planificacion Indices

Planning
for
Maintenance
Excellence
By
Ralph W. “Pete” Peters
President, The Maintenance Excellence Institute
The Greater Charlotte Plant Engineering and Maintenance Show
November 6-7, 2002
Charlotte Merchandise Mart-Freedom Hall
Charlotte, NC
The Maintenance Excellence Institute

A Division of Ralph W. Peters and PEOPLE Inc.
6809 Foxfire Place, Raleigh, NC 27615
Office: 919-270-1173 or Fax: 919-846-9804
www. PRIDE-in-Maintenance. com
Session Objectives
Presentation Based Upon Extracts From

“Maximizing Maintenance for Profit-Optimization”
is Free and Available in EBook Format
from EBOOKOMATIC.COM:
http://www.buymyebook.com/buy/authorinfo.asp?id=646X838Y1
PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 2

Session Objectives
1.To show how Craft Productivity in every type of

maintenance operation can be significantly enhanced
with effective maintenance planning and scheduling.
2. Participants will learn how to develop and implement a

Maintenance Excellence Index (MEI) to validate results
of a new planning process
3.Participants will be able to determine and select the right

type of metrics for their overall maintenance operation.

Today’s Maintenance Challenges
Challenge One: Maintain existing facilities and equipment in safe and

sound conditions.
Challenge Two: Improve, enhance and then maintain existing physical
assets to achieve environmental, regulatory life safety/security
standards and energy best practices.
Challenge Three: Enhance, renovate and add to existing physical
assets using capital funds and then maintain the additions.
Challenge Four: Commission new physical assets and assume
increased scope of work to maintain plus be prepared to assume
more work from Challenges One, Two and Three above as assets
get older and older.
Most maintenance organizations must assume growth with

little or no additions in maintenance staff
Facing Today’s Maintenance Challenges

Continuous Reliability
Improvement

Continuous Reliability Improvement
CONTINUOUS RELIABILITY IMPROVEMENT
GOES BEYOND RCM AND TPM
Physical Asset
and Equipment
Resources
Craft Labor
Synergistic Team Resources
Based Resources
Continuous
Reliability
Improvement
Craft Knowledge
Spare Parts
and Technical
and Material
Skill Resources
Resources
Information
Resources and
CMMS







Improving Craft Productivity

Understanding the Elements of Craft Productivity
Three Key Elements

1. Craft Utilization (CU) (Actual Wrench Time)
2. Craft Performance (CP)
3. Craft Service Quality (CSQ)
Overall Craft Effectiveness (OCE)

OCE = %CU x %CP x %CSQ
as Compared to
Overall Equipment Effectiveness (OEE)
OEE = %Asset Availability x % Performance x % Quality

What is Your Wrench Time?
1. Surveys consistently show that wrench time (craft
utilization) within a reactive, fire fighting maintenance
environment is within the range of 30 to 40 percent.
2. This means that for a ten hour day there is only four hours
of actual hands-on, wrench time.
3. Typically, low craft utilization is due to no fault of the craft

work force.

Improving Craft Productivity
Most of the lost craft wrench time can be attributed to the
following reasons:
1. Running from emergency to emergency; a reactive, fire fighting operation
2. Waiting on parts and finding parts or part information
3. Waiting on other information, drawings, instructions, etc.
4. Waiting for the equipment to be shut down
5. Waiting on rental equipment to arrive
6. Waiting on other crafts to finish their part of the job
7. Travel to/from job site
8. Make-ready, put away, clean up, meetings, troubleshooting, etc.
Bottom Line: Lack of Effective Planning and Scheduling

The Value of Increased Craft Productivity
Wrench Time and Actual Costs Per Hour at Various Levels of Craft Utilization
Example: Total Craft Hours Available and Annual Craft Labor Costs
• 20Crafts x 40 hrs/week x 52 wks/yr = 41,600 Craft Hours Available
• 41,600 Total Craft Hours @ $18/hr. = $748,800 Craft Labor Cost/Year
Level of Total Wrench Actual Hands On Average Wrench

Craft Utilization Time (Hours) Cost Per Hour Time Hours
Per Craft Position
30% 12,480 $60.00 624
40% 16,640 $45.00 832
50% 20,800 $36.00 1040
60% 24,960 $30.00 1248
70% 29,120 $25.71 1456
*80% 49,920 $22.50 1664
*85% 35,360 $21.18 1768
90% 37,440 $20.00 1872
100% 41,600 $18.00 2080

The Value of Increased Craft Productivity
Example: With effective planning and scheduling we can achieve at least a

minimum a 10 point improvement in craft utilization. From a baseline of 40
percent up to a level of 50 percent we in effect get a 25 percent increase in craft
capacity for actual work.
Total Hours Gained in Wrench Time: 4,160 hours gained
20,800 hours @ 50% - 16,640 hours @40% = 4,160 hours gained
Total Gain in Equivalent Number of Craft Positions: 5

4,160 Hours Gained ÷ 832 Average Wrench Time Hours @ 40%
= 5 Equivalent Craft Positions
Total Gained Value of 5 Equivalent Positions: $187,200

5 Equivalent Crafts x 40 Hr/wk x 52 wks/yr. x $18/hr.= $187,200 Gained Value

Effective Planning and
Scheduling

Effective Planning and Scheduling
What size operation can justify formal planning and

scheduling?
Large Operations
Small Operations
Invest in a Planner Position

Pick a qualified internal candidate whenever possible
Some key traits of an effective planner
Provide formal and OJT training
Measure Results
Overall Results with Your Maintenance Excellence Index
Results of Your Planning and Scheduling Investment

Selecting the Right Metrics for
Your Maintenance Operation

Profit-Centered Maintenance
Five Important Tools From The Maintenance Excellence Institute

Provides overall total maintenance operations assessment guide
The
TheScoreboard
Scoreboardfor
for Ensures consistency with today’s best practices
Maintenance
Maintenance Provides baseline and opportunities for Strategic, Tactical and Operational Plans
Excellence
Excellence Serves as external benchmarking tool for today’s maintenance best practices
Provided as a client-specific tool for measurement of overall best practice progress
Ensures application predictive maintenance technologies

Reliability
ReliabilityTechnology
Technology Provides direction to condition-based monitoring
Application
ApplicationGuide
Guide Ensures that client knowledge base exists for Continuous Reliability Improvement
Supports focus on critical assets and successful implementation occurs
Ensures best use of overall energy resources

Energy
Energyand
and Provide assistance in defining opportunities
Regulatory
Regulatory Leverages internal knowledge with expert service support
Management
ManagementGuide
Guide Identifies specific energy savings and regulatory issues for resolution
Provides an important internal benchmarking tool for IT investments
Develops specific metrics to maximize CMMS
The
TheCMMS
CMMS Ensures that best practices are enhanced by CMMS
Benchmarking Identifies implementation issues/gaps and helps resolve them
BenchmarkingSystem

System Provided as a client-specific tool for continuous measurement of CMMS (or
new system) utilization progress
Provides an essential internal benchmarking tool for shop level results

The Defines key performance goals and support ROI from best practice investments
TheMaintenance

Maintenance Validates Strategic, Tactical and Operational Plan execution and progress

Excellence
ExcellenceIndex
Index Validates actual ROI from maintenance investments and projected savings

Provided as a client-specific tool for continuous measurement of maintenance

excellence impact on the total operation
The Scoreboard for Maintenance Excellence
Today’s More Comprehensive and Effective Assessment Tool:

• Provides baseline for comprehensive assessment of the current state of maintenance
• Defines specifically where you are
• Recommends where you should go with mission-essential maintenance
• Includes 27 evaluation categories, 300 unique evaluation criteria for today’s best
practices for maintenance, MRO materials and facilities management excellence
• Results become the standard for future best practices at single or multiple sites
• Results can be applied to multiple parts of a large operation and future expansions
• Provides recommended best practices for Continuous Reliability Improvement that
improves;
• Asset uptime, reliability and total operations productivity
• Planning, scheduling, craft productivity and service to the customer
• Overall costs, material inventory accuracy, tracking
• Profits, improved service levels and many other key performance factors

For Plant Maintenance Operations
CATEGORY
The Scoreboard for Maintenance Excellence Evaluation
Items
Total Points
in Category
Category Descriptions (Part I)
A. The Organizational Culture and P.R.I.D.E. in Maintenance 6 60
B. Maintenance Organization, Administration and Human Resources 12 120
C. Craft Skills Development and P.R.I.D.E. in Maintenance 12 120
D. Operator Based Maintenance and PRIDE in Ownership 6 60
E. Maintenance Supervision/Leadership 9 90
F. Maintenance Business Operations, Budget and Cost Control 12 120
G. Work Management and Control: Maintenance and Repair (M/R) 12 120
H. Work Management and Control: Shutdowns and Major Overhauls 6 60
I. Shop Level Planning and Scheduling 18 180
J. Shutdown and Major Planning/Scheduling and Project Management 9 90
K. Manufacturing Facilities Planning and Property Management 9 90
L. Production Asset and Facilities Condition Evaluation Program 6 60
M. Storeroom Operations and Internal MRO Customer Service 12 120
N. MRO Materials Management and Procurement 12 120

For Plant Maintenance Operations
CATEGORY
The Scoreboard for Maintenance Excellence Evaluation
Items
Total
Points in
Category Descriptions (Part 2 Continued) Category
O. Preventive Maintenance and Lubrication 18 180

P. Predictive Maintenance and Condition Monitoring Technology Applications 15 150
Q. Process Control, Building Automation and Instrumentation Systems 9 90
Technology
R. Energy Management and Control 12 120
S. Maintenance Engineering Support 9 90
T. Safety and Regulatory Compliance 12 120
U. Maintenance and Quality Control 9 90
V. Maintenance Performance Measurement 12 120
W. Computerized Maintenance Management System (CMMS) and Business 18 180
System
X. Shop Facilities, Equipment, and Tools 9 90
Y. Continuous Reliability Improvement 15 150
Z. Asset Facilitation and Overall Equipment Effectiveness (OEE) 15 150
ZZ. Overall Craft Effectiveness (OCE) 6 60
Total Evaluation Items and Points 300 3000

The Scoreboard for Facilities Management Excellence
For Facilities Maintenance Operations
CATEGORY The Scoreboard for Facilities Management Excellence Evaluation

Total Points
in Category
Category Descriptions (Part 1) Items
A. The Organizational Culture and PRIDE in Maintenance 5 50

B. Facilities Organization, Administration and Human Resources 10 100
C. Craft Skills Development 10 100
D. Facilities Management Supervision/Leadership 10 100
E. Business Operations, Budget and Cost Control 15 150
F. Work Management and Control: Maintenance and Repair (M/R) 10 100
G. Work Management and Control: Construction and Renovation (C/R) 5 50
H. Facilities Maintenance and Repair Planning and Scheduling 15 150
I. Facilities Construction and Renovation Planning /Scheduling and 10 100
Project Management
J. Facilities Planning and Property Management 10 100
K. Facilities Condition Evaluation Program 5 50
L. Facilities Storeroom Operations and Internal MRO Customer Service 15 150
M. MRO Materials Management and Procurement 10 100

The Scoreboard for Facilities Management Excellence
For Facilities Maintenance Operations
CATEGORY
The Scoreboard for Facilities Management Excellence Evaluation Total Points
Category Descriptions (Part 2 Continued) Items in Category
N. Preventive Maintenance and Lubrication 20 200

O. Predictive Maintenance and Conditioning Monitoring Technologies 10 100
P. Building Automation and Control Technology 5 50
Q. Utilities Systems Management 10 100
R. Energy Management and Control 10 100
S. Facilities Engineering Support 10 100
T. Safety and Regulatory Compliance 15 150
U. Security Systems and Access Control 10 90
V. Facilities Management Performance Measurement 15 150
W. Facilities Maintenance Management System (FMMS) and Business 15 150
System
X. Shop Facilities, Equipment, and Tools 10 100
Y. Continuous Reliability Improvement 10 100
Z. Grounds and Landscape Maintenance 15 150
ZZ. Housekeeping Service Operations 15 150
Total Evaluation Items and Points 300 3000

The CMMS Benchmarking System
Purpose: The CMMS Benchmarking System was developed to support:
• Gaining maximum value from an investment in CMMS or FMMS
• To evaluate how well existing CMMS/FMMS functionality is being used
• To provide a method for developing an overall benchmark of your CMMS installation
• To provide a baseline for determining how well CMMS is supporting best practices
• For use as the baseline to measure the success of a future CMMS installation.
Benchmarking Your CMMS Installation: The CMMS Benchmarking System provides a

means to evaluate and classify your current installation as either “Class A, B, C or D”.
• A total of 9 major categories are included along with 50 specific evaluation items
• Each evaluation item that is rated as being accomplished satisfactorily receives a
maximum score of 4 points.
• If an area is currently being “worked on” a score of 1, 2 or 3 points can be assigned
based on the level of progress achieved. For example, if spare parts inventory accuracy
is at 92 % compared to the target of 95 %, a score of 3 point is given.
• A maximum of 200 points is possible. A benchmark rating of “Class A” is within the 180
to 200 point range.
• The CMMS Benchmarking System evaluation categories are provided on the next page.

The CMMS Benchmarking System
The CMMS Benchmarking System EVALUATION

EVALUATION CATEGORIES ITEMS
1. CMMS Data Integrity 6
2. CMMS Education and Training 4
3. Work Control/Work Management 5
4. Budget and Cost Control 5
5. Planning and Scheduling 7
6. MRO Materials Management 7
7. Preventive and Predictive Maintenance 6
8. Maintenance Performance Measurement 4
9. CMMS for Continuous Reliability Improvement 6
TOTAL CMMS EVALUATION ITEMS 50

Developing Your Maintenance
Excellence Index

The Maintenance Excellence Index
Developing a Maintenance Excellence Index: Our approach has been to help clients create a
Maintenance Excellence Index (MEI) that includes 12 to 15 key performance indicators with agreed
upon importance and weighted values. Key elements of developing your Maintenance Excellence
Index;
• The metrics selected are specific to the organization and validate total operations success
• The MEI measures how all key resources that contribute to profit optimization,
greater customer service and more effective facilities management;
• People resources; internal craft labor and outside contractors
• Dollar resources and overall budget dollars of maintenance and the customer
• MRO parts and material resources
• Planning resources and customer service
• Critical assets; uptime, availability or OEE and reliability for intended function
• Information resources; how data becomes true information via effective CMMS
Summary: The MEI provides a very powerful, one page Excel spreadsheet that brings
12-15 key metrics together for a composite Total MEI Performance Value and a very
“balanced scorecard” for the total facilities and maintenance process. The Maintenance
Excellence Index is ideal for Continuous Reliability Improvement across multiple site
operations where standard best practices are needed

Developing Your Maintenance Excellence Index
MAINTENANCE EXCELLENCE INDEX:
Example with 14 Performance Measurement Categories
Performance Level Scores

Completed as Scheduled
Completed as Scheduled
4. % Other Planned WO's
(PM and Planned Work)

8. % Craft Performance
9. % Work Orders with

5. Overall Equipment
13. % Value of MRO

3. % Estimated Jobs
7. % Craft Utilization
1. Direct Purchasing
Inventory Reduction
Effectiveness (OEE)
2. % Overall Budget
Compliance Overall
11. Gained Value of

Capacity Increases
14. # of Stock Outs

6. % Craft Time to
("Wrench Time")
12. % Inventory
Planned Time
Cost Savings
Work Orders
Compliance
10. % PM
Accuracy
A. Performance
Metrics
B. Current Month Perf.

200 94 94 91 60 36 56 85 56 74 300 91 2 19
Performance Levels
C. Performance
F. PERFORMANCE LEVEL SCORES

500 98 98 95 85 40 60 95 60 90 1700 98 10 10 10
Goal
450 96 96 93 80 38 58 90 58 88 1500 97 9 11 9
400 94 94 91 75 36 56 85 56 86 1300 96 8 12 8
350 92 92 89 70 34 54 80 54 84 1100 95 7 13 7
300 90 90 87 65 32 52 75 52 82 900 94 6 14 6
250 88 88 85 60 30 50 70 50 80 700 93 5 15 5
200 86 86 83 55 28 48 65 48 78 500 92 4 16 4
D. Baseline 150 81 26 46 60 46 76 300 91 3 17 3
Performance 84 84 50
100 82 82 79 45 24 44 55 44 74 100 90 2 18 2
50 80 80 77 40 22 42 50 42 72 50 89 1 19 1
0 78 78 75 35 20 40 45 40 70 0 88 0 20 0
E. Performance
Level Scores 4 8 8 8 5 8 8 8 8 2 3 3 2 1 SCORES
X
G. Weighted Value
WEIGHT
of Metric 11 8 6 8 13 6 10 5 7 2 9 5 5 5
H. Performance
Level Score (F) x
Weight (G) 44 64 48 64 65 48 80 40 56 4 27 15 10 5
= 565
J. Total MEI Values
Over Time I. TOTAL MAINTENANCE
2/02 3/02 4/02 5/02 6/02 7/02 8/02 9/02 10/02 11/02 12/02 1/03 2/03 4/03
EXCELLENCE INDEX
VALUE
565

Step Description Comments
A Performance From 10 to 15 metrics are selected and agreed upon by the organization.
Metrics
B Current This is the actual performance level for the metric for the reporting month. This value
Month will also be noted in one of the incremental values blocks below the performance goal.
Performance This value will correspond to a value for F, the performance level scores which go
from 10 down to 1
C Performance This is the pre-established performance goal for each of the MEI metrics. For example,
Goal if the Current Month’s Performance is at the Performance Goal level, the performance
level score for that goal will be a 10, the maximum score.
D Baseline The baseline performance level prior to start of MEI performance measurement
Performance
E Current Depending on the current month’s performance, a performance level score (F) will be
Performance obtained. This value then goes to the Current Performance Score row and serves as
Score the multiplier for the (G) the Weighted Value of the Performance Metric
F Performance Values from 10 down to one, which denotes the level of current performance,
Level Score compared to the goal. If current performance achieves the predetermined goal, a
performance value of 10 is given. Each metric is broken down into incremental value
from the baseline to the goal. Each incremental value in the column corresponds to a
performance level value. This value becomes the Current Performance Score.

Step Description Comments
G Weighted The values along this row are the weighted value or relative importance of each of
Value of the the metrics. These values are obtained via a team process and a consensus on the
Performance relative importance of each metric that is selected for the MEI. All of the weighted
Metric values sum to 100.
H Performance The Weighted Values (G) are multiplied by (E) the Current Performance Scores to
Value Score get the Performance Value Score (H).
I Total MEI The sum of the Performance Value Scores for each of the metrics and the
Performance composite value of monthly maintenance performance on all MEI metrics
Value
J Total MEI Location for tracking Total MEI Performance Values over a number of months
Performance
Values Over
Time

Maintenance Performance
Metrics

Maintenance Performance Metrics
No Performance Metric, Purpose and Data Goal How to Calculate Metric
. Source
1. % Overall Maintenance Budget Compliance: 98% Traditional Budget Variance +/- % Variance to
To evaluate management of $ assets; Obtained Actual Planned Budget
from monthly financials
2. Actual Maintenance Cost per Unit of TBD Total Maintenance Materials and Labor per
Production: To evaluate/benchmark actual reporting period ÷ Total Units produced
costs against stated goals/baselines or against Note: Production units could also be expressed in
industry standards; Obtained from asset records and equivalent standard hours if traditional
monthly CMMS WO file of completed WOs for the standard cost system is being used
month. Obtained from production results and financial
report. Provides ideal support to ABC Costing practices
3. % Customer or Capital Funded Jobs Completed as 98% Total # of Customer or Capital Funded Jobs
Scheduled and within +/- 5% of Cost Estimate: Completed as Scheduled within Budget
To measure customer service & $ assets plus Variance Goal ÷ Total # of Customer or
planning effectiveness; Obtained from funded WO capital Funded Jobs Completed
types from the CMMS WO files, comparing date
promised to date completed and estimated cost to
actual cost
4. % Other Planned Work Orders Completed as 95% Total # of Planned Jobs Completed as Scheduled
Scheduled: To measure customer service and within Time Variance Goal ÷ Total # of
planning effectiveness; Obtained from a query of all Planned Jobs completed (Typically higher
planned WO types in CMMS WO files and comparing priority jobs where customer was given a
date promised to date completed. Could be expressed promised completed date, not PM work
in % based on craft hours. which is planned)
5. Schedule Compliance: To evaluate how 95% Total Scheduled Jobs Completed as Per the
effectiveness scheduling was in regards to executing to Schedule ÷Total Jobs Scheduled
meet scheduled dates/time; Obtained from query of CMMS
completed WO file where all scheduled jobs coded and their
actual completion compared to actual planned completion
date/time
6. % Planned Work Orders versus % True 80% to Total Emergency Type WOs Completed ÷
85% Total WOs Completed Per Reporting
Emergency Work Orders: To evaluate positive Planned
impact of PM, planning processes and other proactive Period (could be expressed as % also using
improvement initiatives (CRI,/RCM/etc); Obtained from a craft hours)
query of all true emergency WO types in CMMS WO files and
comparing to total WOs completed. Could be expressed in %
based on craft hours.
7. % Craft Time to Work Order for Customer 85% Total Craft Hours for All Work Charged
Charge Back: To monitor craft resource Back to Customer ÷ Total Craft Hours Paid
Accountability for Internal Revenue Generation (or for Reporting Period
External); Obtained from a query of all WO types in CMMS WO
files that are charged back comparing these craft hours to total
craft hours paid
8. % Craft Time to Work Orders: To monitor 100% Total Craft Hours Charged to All Work
overall craft resource accountability and to support Order Types (Including Standing WOs) ÷
internal revenue generation ; Obtained from a query of all Total Craft Hours Paid for Reporting Period
WO types in CMMS WO files and summation of actual craft hours

9. % Craft Utilization (Actual Wrench 60% to- Total Craft Hours of Pure Wrench Time Charged
70% to All Work Order Types minus Total Time to
Time): To maximize craft resources for
Non Wrench Time Standing WO Types) ÷ Total
productive, value-adding work and to evaluate
effectiveness of planning process; Obtained from a query Craft Hours Paid for Reporting Period
of all craft hours reported to non craft work from CMMS
time keeping WO files and summation of actual craft
hours
10. % Craft Performance (Against 95% Total Actual Craft Hours Charged to Completed
Reliable Estimates for PM and WOs With Planned Times ÷ The Total Planned
Time from the WOs Having Planned Times
planned work): To maximize craft resources,
to evaluate planning effectiveness and also to
determine training ROI; Obtained from completed WO
file in CMMS
11. Craft Quality and Service Level: To 95% 100% - Total # Call Backs/Etc ÷ Total Number
evaluate quality and service level of repair work as of WOs Completed Per Reporting Period
defined by customer; Obtained from WO file in CMMS
where all call backs are tracked and monitored via work
control and planning processes

12. Overall Craft Effectiveness (OCE): To 65% OCE = % CU x % CP x % CSQ
evaluate cumulative positive impact of overall Where: CU = 70%....a Realistic Maximum
improvements to Craft Utilization (CU), Craft CP = 95%....plus is Achievable
Performance (CP) and Craft Quality and Service CSQ = 95%....plus is Achievable
Excellence (CQSE) in combination; Obtained from Therefore:
using results of measuring all three OCE Factors: a) Craft OCE = .70 x .95 x .95 = .632 ≅ 65%
Utilization, b) Craft Performance and c) Craft Service
Quality
13. % Work Orders with Reliable Planned 60 % # Work Orders with Reliable Planned Times ÷
Total Number of WOs Completed Per Reporting
Times: To measure planner’s effectiveness at Period
developing reliable planning times; Obtained from
completed WO file in CMMS where panning times are
being established for as many jobs as possible by
planner/supervisor
14. % Overall Preventive Maintenance 100% Total # PM WOs Completed as Scheduled ÷
Compliance (Could be by type asset, Total Number of PM WOs Due and Scheduled
production department/location or by supervisory Per Reporting Period (Note: PMs to be
area): To evaluate compliance to actual PM completed within reasonable window of time
requirements as established for assets under scope from date they are generated for scheduling)
of responsibilities; Obtained from completed WO file in
CMMS

15 Gained $Value from Craft Utilization TBD [Total Current Craft Hours of Wrench Time
. minus Baseline Average Wrench Time Hours] x
and Performance: To determine actual gained
$ value of craft productivity gains as compared to Baseline Cost / Wrench Time Hour (or Actual
original estimate and/or the initial baseline; Cost Per Hour)
Obtained only from using results of measuring two of the
OCE Factors: a) Craft Utilization, b) Craft Performance
16 % Inventory Accuracy: To evaluate one 98% A: Item Count Variance: Total Stock Items
. element of MRO material management and Cycle Counted as Correct ÷ Total Stock Items
inventory control policies; Obtained from cycle count Cycle Counted
results and could be based on item count variances or on B: Cost Variance: Actual Inventory Cost of
cost variance Total Stock Items Counted as Correct ÷ Total
Actual Inventory Cost of Stock Items Counted
17 % or $ Value of Actual MRO Inventory 10% Actual $ Value of Inventory Reduction ÷
. Baseline Inventory Value
Reduction: To evaluate another element of MRO
material management against original estimates
and the initial baseline MRO inventory value;
Obtained from inventory valuation summation at end of
each reporting period

18. Number of Stock Outs of Inventoried Stock ???? Actual Stock Outs Recorded/Tallied as
They Occur
Items: To monitor actual stock item availability per
demand plus to monitor any negative impact of MRO
inventory reduction goals; Obtained from tracking stock item
demand and recording stock outs manually or by coding
requisition/purchase orders for the items not available per demand
19. $ Value of Direct Purchasing Cost Savings: To TBD Tracked via best method per a standard
track direct cost savings from progressive procurement procedure that defines how direct
practices as another element of MRO materials purchasing savings to be accounted for
management. Could apply to contracted services, valid the organization
benefits received from performance contracting, contracted
storerooms, vendor managed inventory; Obtained via best
method per a standard procedure that defines how direct
purchasing savings are to be accounted for
20 Overall Equipment Effectiveness (OEE): World 85% Where OEE = % Availability x %
–class metric to evaluate cumulative positive impact of overall Performance x % Quality
reliability improvements to Asset Availability A), Asset Performance An OEE Factor of 85% is recognized as
(P) and Quality (Q) of output all in combination. (Similar to OCE world-class, which therefore is:
above but for the most critical production assets); Obtained via OEE = A x P x Q
downtime reporting process, operations performance on critical
assets and the resulting quality of output OEE = .95 x .95 x 95 ≅ 85%
21. % Asset Availability/Uptime: To evaluate trends in Total Hours Asset Performs Its Primary
downtime due to maintenance and the positive impact of actions to Function ÷ Total Hours Asset Scheduled
increase uptime; Obtained via downtime reporting process to Perform Its Primary Function

Conclusion

Planning for Maintenance Excellence
We must Remember that:
• Maintenance is Forever!
• We can Plan for Maintenance Excellence!
• We can lead maintenance forward with profit-centered practices and
attitudes.
• We can achieve PRIDE in Maintenance with
People Really Interested in Developing Excellence in Maintenance

About The Maintenance
Excellence Institute

Office: 919-270-1173 or Fax: 919-846-9804

Maintenance: Our Primary Focus
• One Primary Focus: Our single focus is on improving maintenance
processes, maintenance management and leadership. The Maintenance
Excellence Institute has provided a broad range of services for
Continuous Reliability Improvement of total maintenance and MRO
materials management operations.
• The Maintenance Excellence Institute has provided these services for:
– Facilities management operations in public and private sectors:
¾ Healthcare facilities and large hospital complexes
¾ Educational system facilities at all levels
¾ Property management operations
– Manufacturing plant operations
– Continuous processing operations
– Power generation and power distribution
– Fleet maintenance operations in public and private sectors

Links to Free Publications
PRIDE-in-Maintenance.com WEB SITE Links
1. Maintenance Excellence Services Brochure:
http://www.pride-in-
maintenance.com/Alliances/Maintenance_Excellence_Services.pdf
2. Operational Service Brochure:
http://www.pride-in-maintenance.com/Alliances/Operational_Services.pdf
3. Training for Maintenance Excellence Brochure:
maintenance.com/Alliances/Training_for_Maintenance_Excellence.pdf
4. Training for Maintenance Excellence 2002 Catalog:
maintenance.com/Alliances/2002_Training_for_Maintenance_Excellence_Catelog.pdf
5. Maintenance is Forever! Article: http://www.pride-in-
maintenance.com/Alliances/Maintenance_is_Forever.pdf
EBOOKS AVAILABLE from EBOOKOMATIC.COM:

Maximizing Maintenance for Profit-Optimization (Free)
http://www.buymyebook.com/buy/authorinfo.asp?id=646X838Y1

Maintenance Excellence Services:

We highly recommend what SBBC is pursuing with RFP 23-113N. Our very first step with every client begins
with a Maintenance Excellence Assessment to “determine where you are” with opportunities for improvement.
Results from our Scoreboard for Facilities Management Excellence evaluation provides today’s most
comprehensive assessment process by looking at 27 essential categories and 300 specific criteria. All areas
are very specific to facilities management operations. We then help clients like SBBC and many others apply
today’s best practices for maintenance excellence to:
– Implement Preventive and Predictive Maintenance Technology
– Achieve Effective Planning and Scheduling
– Improve Maintenance Storeroom Operations
– Develop Improved MRO Materials Management
– Go Beyond RCM and TPM with Continuous Reliability Improvement (CRI)
– Maximize Asset Uptime and Overall Equipment Effectiveness (OEE)
– Increase Craft Wrench Time and Overall Craft Effectiveness (OCE) SM
– Achieve Benefits from Effective Craft Skills Development
– Develop Operator-Based Maintenance for PRIDE in Ownership
– Select and Implement Effective CMMS/EAM/FMMS
– Implement Profit-Centered Maintenance Performance Measurement
– Provide Critical Asset Performance Facilitation
– Evaluate Contracted Maintenance Services
– Conduct Facility and Critical Asset Condition Assessments
– Perform Energy Management, Security and Regulatory Compliance Audits

Operational Services
We also provide highly qualified, temporary resources to manage and lead plant maintenance (or facilities
management) operations over a short duration, transitional period of time. They also provide effective
leadership to implement your strategic, tactical or operational improvement plans while in a temporary services
role. Operational Services provide grass roots support to successful implementation of today’s best
maintenance practices and achieve the results we define during a Maintenance Excellence Services
engagement. Our capabilities for Operational Services include:
– Managing and Leading Your Total Maintenance Operation as manager or supervisor
– Serving as Your Chief Maintenance Officer (CMO) or CFMO for a larger multiple site
operation like SBBC
– Providing Planning For Maintenance Excellence as interim staff planners at all levels;
day to day, construction/renovation and project management
– Managing Storeroom Operations and Providing Support for Storeroom Modernization
– Developing and Leading Your Craft Skills Development Program for Technical
Training Needs
– Performing Critical Asset Performance Facilitation or Facility Condition Assessments
– Performing Turn Key Preventive and/or Predictive Maintenance Program Development

Training for Maintenance Excellence

• Our Training for Maintenance Excellence Service is our third area and a very essential element of our
approach to providing both Maintenance Excellence Services and Operational Services. Our suite of
over 29 course offerings focus upon creating organizational awareness and an internal understanding that
maintenance must be managed and led as a profit center. Successful implementation of today’s best
practices requires changes in philosophies, attitudes and the application of technical knowledge.
• Training for Maintenance Excellence can provide a measurable return on investment to justify your
training dollars. The most beneficial part is that Training for Maintenance Excellence “is not over when
it’s over”. Following completion of each session, whether as an in-house presentation or a public session,
there is a personalized follow-up scheduled for each participant. Personal follow-up and one on one
coaching is to help you apply what you have learned.
• The PRIDE in Maintenance presentation process is typically scheduled for presentation during the on site
time for a Maintenance Excellence Assessment. Scheduling is flexible to coordinate with shift start ups,
shift overlaps and ideally is presented to every member of the craft work force, storeroom and support
staff. It provides very important communications feature to support cooperation and ideas from the craft
work within the SBBC operation. All sessions are developed scheduled and presented by Ralph “Pete”
Peters, President of MEI. An overview is included on Page 34.
• A summary of course offerings from The Maintenance Excellence Institute is included in the Appendix B.
Course abstracts and objectives are available in our 2003 Catalog available for download at our Web Site
at www.PRIDE-in-Maintenance.com

Our Maintenance Experience
• Atomic Energy Canada Limited (2 sites) • Rockwell International
• Boeing Commercial Airplane Group (55 sites) • Rohm & Haas
• Braun Medical • Siderar SAIC (8 sites in Argentina)
• Bucyrus International • University of North Carolina Facilities Services
• Carolinas Medical Center Division (6 work units)
• Consolidated Stores/BigLots (4 sites) • University of NC-CH Building Services
• Consolidated Thermoplastics (3 sites) Department, Facilities Services Division
• Dominion Terminal Associates (Ongoing)
• DIMON International (4 sites) • University of NC-CH Energy Services Department,
• Eli Lilly (Puerto Rico) Facilities Services Division (Future)
• Ford Motor (Canada) • Victor Insulator
• General Foods • VIOX Facilities Services (Contract Services Firm)
• GlaxoSmithKline • The Werner Company (3 sites)
• Great River Energy • Wyeth-Ayerst (3 sites in U.S.)
• Heinz USA • Wyeth Medica (Ireland)
• Lucent Technologies (2 sites) • Weyerhaeuser
• Marathon Ashland Petroleum (4 sites) • NC Department of Transportation (15 sites)
• The Marmaxx Group • National Gypsum (3 sites)
• National Defense • NYCOMED (Puerto Rico)
• Purolator • Polaroid Corporation
• Rocketdyne Propulsion (Div of Boeing) • Pratt & Whitney (Canada)

Approach for Assessment of the
Total Maintenance Operation

Office: 919-270-1173 or Fax: 919-846-9804

Phase I: Project Deliverables to Achieve Results
1. A Maintenance Excellence Strategy Team chartered to facilitate world-class maintenance
2. A World-class maintenance strategy defined by the Scoreboard for Maintenance Excellence with a
recommended Plan of Action for Implementation
3. An in-depth assessment of current maintenance practices during Phase I
4. Recommendations in 27 maintenance excellence evaluation categories
5. Recognition of current successes
6. Develop and present PRIDE in Maintenance sessions to crafts work force and other staff
7. Recommendations for improvement to the current installation of CMMS
8. A CMMS Benchmarking System to measure CMMS improvement success or define functionality gaps and
support replacement
9. Recommended Implementation Plan with Tactical/Operations action plans and timelines
10. Definition of all improvement opportunities with definition of all savings/benefits and timeline for achieving
11. Performance measurement process documented via a written standard operations procedure
12. A Maintenance Excellence Index to validate results and value of MEI services ready to implement after
Phase I assessment
13. Plan of action for best practice support from The Maintenance Excellence Institute
14. Preliminary review of results by the client
15. Written and oral presentation of results to client leaders at end Phase I and all defined milestones
16. Implementation beginning from Day One with methods in place to validate results

Phase I: Achieving Maintenance Excellence
Methodology
The Maintenance Excellence Institute envisions a seven-step approach to perform
the required assessments, analyses, plan for implementations, and to measure
results. Step 2
a. Establish Client
a. Establish Client
Specific Scoreboard
Specific Scoreboard
for Maintenance
for Maintenance
Excellence
Step 1 Excellence Step 3 Step 4 Step 5
b. Conduct
b. Conduct
Establish Maintenance Assessment of Total Develop Performance
Establish Maintenance Assessment of Total Evaluate CMMS, Define Recommended Develop Performance
Excellence Strategy Maintenance Evaluate CMMS, Define Recommended Measurement Process
Excellence Strategy Maintenance Develop Recommended Path Forward and Measurement Process
Team; Confirm Operation and Develop Recommended Path Forward and and a Client Specific
Team; Confirm Operation and Strategy and Redefine Estimated and a Client Specific
Objectives, Priorities Present PRIDE in Strategy and Redefine Estimated Maintenance
Objectives, Priorities Present PRIDE in Improvement Savings Maintenance
and Metrics Maintenance Sessions Improvement Savings Excellence Index
and Metrics Maintenance Sessions Opportunities Excellence Index
Opportunities
c. Develop Best
c. Develop Best
Practice
Practice
Recommendations
Recommendations
NOTE: Concurrent Support for Step 2 will be to present PRIDE in Maintenance sessions for
NOTE: Concurrent Support for Step 2 will be to present PRIDE in Maintenance sessions for
craft work force and other staff as a communications session. Objectives are to set the stage for
craft work force and other staff as a communications session. Objectives are to set the stage for
the MEI Action Plan and for promoting profit-centered maintenance attitudes and practices. An
the MEI Action Plan and for promoting profit-centered maintenance attitudes and practices. An
overview of this session that is provided within Step 2 is provided.
overview of this session that is provided within Step 2 is provided.

Phase I: Achieving Maintenance Excellence
Methodology (continued)
The Maintenance Excellence Institute Team envisions results from Step 1 through Step
7 being implemented and becoming the performance measurement foundation for Best
Practices Implementation during Phase II.
Step 6 Step 7
Step 5
(Continued) Refine Client
Written and Oral Refine Client
Written and Oral Scoreboard for
Presentation of Scoreboard for
Presentation of Maintenance
Assessment Results Maintenance
Step 5 The Client’s Assessment Results Excellence
Step 5 The Client’s Excellence
Maintenance
Maintenance
Excellence Index
Excellence Index
Provides a Key
Provides a Key
Deliverable and Plan for staffing and
Deliverable and Define Action Plan, Plan for staffing and
Methodology in Place Define Action Plan, execution of Action
Methodology in Place define specific target execution of Action
to Validate Results define specific target Plan to Continue
to Validate Results dates with firm Plan to Continue
dates with firm Improvement Process
schedule of Support Improvement Process
schedule of Support
Steps1 through 7 are defined in more detail on the pages that follow.

Phase I: PRIDE in Maintenance Presentation
Step 2b of our Maintenance Excellence Assessment process includes a very important communications
feature to support PRIDE in Maintenance and Teamwork within each client’s operation. All sessions are
developed scheduled and presented by Ralph “Pete” Peters, President of MEI. An overview is included below:
PRIDE in Maintenance
Session Length: Approx 1 Hour
• Session Overview: Without support from the craft work force and real shop level PRIDE in Maintenance,
achieving maintenance excellence can be extremely difficult. This session was developed specifically for
presentation to the crafts work force and other Client staff. It serves as a means to gain support, understanding
and greater cooperation for maintenance excellence initiatives within all types/sizes of plant, fleet, facilities and
healthcare maintenance operations. It provides a brief overview of the Maintenance Excellence Assessment and
expected results. It also provides positive reinforcement to the crafts worker that their job is important and their
ideas will be welcomed. Since they perform a mission essential role in the success of their respective
organizations, it emphasizes the need for positive input from them during times when they might be interviewed
during the assessment.
• This session is tailored to help explain current improvement initiatives (MEI/Client Action Plan) being considered or
that are currently being implemented by the Client. PRIDE in Maintenance strives to instill a philosophy of profit-
centered maintenance into the thinking and attitudes of each craft person. It supports teamwork, eliminates fear of
changing the status quo and enhances the importance of our most valuable (and often a very scarce maintenance
resource)- the craft person. This presentation is also typically scheduled for presentation during the on site time for
a Maintenance Excellence Assessment. Scheduling is flexible to coordinate with shift start ups, shift overlaps and
ideally is presented to every member of the craft work force, storeroom and support staff.
• Clients are able to review and approve all materials prior to presentation. Materials developed are client-specific,
handouts are provided to each attendee and the session is video taped. Client receives rights for future use of
their PRIDE in Maintenance video and internal future use of all custom materials prepared for their session.

Phase I Assessment: Typical Timeline
Phase I – Achieving Maintenance Excellence

Number of Months Prior to 1 Weeks 2 3
Start
1. Establish team, objectives, and priorities Step 1
2a Define Client Scoreboard for Maintenance Step 2a
Excellence
2b. Conduct Phase I Assessment and Step 2b
Present PRIDE in Maintenance sessions
PRIDE in Maintenance Step 2b
2c. Develop best practice recommendations
Step 2c
3a. Evaluate current CMMS installation and
Step 3a
Develop CMMS Benchmarking System
4. Define path forward and savings Step 4
5. Develop methodology for implementation Step 5
of Client Specific Maintenance Excellence
Index
6a Client preliminary review of results Step 6a
6b Finalize written report and oral

presentation of results during Week 3 Step 6b
7. Refine Client Scoreboard and Define

Implementation Action Plan with timelines Step 7

Next Steps

Planificacion Indices

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Planning

The Maintenance Excellence Institute

Presentation Based Upon Extracts From

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 2

1.To show how Craft Productivity in every type of

2. Participants will learn how to develop and implement a

3.Participants will be able to determine and select the right

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 3

Challenge One: Maintain existing facilities and equipment in safe and

Most maintenance organizations must assume growth with

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 5

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 6

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 7

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 8

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 9

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 10

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 11

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 12

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 13

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 14

Three Key Elements

Overall Craft Effectiveness (OCE)

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 15

3. Typically, low craft utilization is due to no fault of the craft

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 16

2. Waiting on parts and finding parts or part information

3. Waiting on other information, drawings, instructions, etc.

4. Waiting for the equipment to be shut down

5. Waiting on rental equipment to arrive

6. Waiting on other crafts to finish their part of the job

7. Travel to/from job site

8. Make-ready, put away, clean up, meetings, troubleshooting, etc.

Bottom Line: Lack of Effective Planning and Scheduling

Level of Total Wrench Actual Hands On Average Wrench

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 18

Example: With effective planning and scheduling we can achieve at least a

Total Gain in Equivalent Number of Craft Positions: 5

Total Gained Value of 5 Equivalent Positions: $187,200

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 19

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 20

 What size operation can justify formal planning and

 Invest in a Planner Position

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 21

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 22

Five Important Tools From The Maintenance Excellence Institute

 Ensures application predictive maintenance technologies

 Ensures best use of overall energy resources

Today’s More Comprehensive and Effective Assessment Tool:

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 24

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 25

O. Preventive Maintenance and Lubrication 18 180

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 26

CATEGORY The Scoreboard for Facilities Management Excellence Evaluation

A. The Organizational Culture and PRIDE in Maintenance 5 50

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 27

N. Preventive Maintenance and Lubrication 20 200

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 28

Benchmarking Your CMMS Installation: The CMMS Benchmarking System provides a

PLANNING FOR MAINTENANCE EXCELLENCE The Maintenance Excellence Institute 29

The CMMS Benchmarking System EVALUATION

1. CMMS Data Integrity 6

2. CMMS Education and Training 4

3. Work Control/Work Management 5

4. Budget and Cost Control 5

What size operation can justify formal planning and

Invest in a Planner Position

Ensures application predictive maintenance technologies

Ensures best use of overall energy resources