Partners in Training - skf-STRATEGY

SKF Asset Efficiency
Optimization (AEO)
Presented by Walter Del Degan

2014-04-15
Run
‘til it hurts ?
Operations pushes productivity to the limit.
Maintenance works miracles to keep the equipment
running. The result is too often costly damage to
your machine assets.
Why do we conduct maintenance?
We conduct maintenance because we think it

would cost us more if we did not conduct
maintenance.
Maintenance is, and always has been, a risk

control measure.
Risk & Benefits
Potential loss Net benefit of

(no maintenance) maintenance
• Production
Probable loss
• Safety
(with maintenance)
• Environment
• Others
Reliability Vs Cost
Overall Equipment Maintenance cost as a

Effectiveness % of replacement value
Typical 65 - 70% 4 - 5%
Reactive Mode
World-class 85% <2%
So Can We Just cut Costs to Achieve

World Class Maintenance ?
Typical Maintenance Facts
• Fact: unplanned maintenance is 1.5 to 3x more costly than planned

maintenance and 70% is unplanned
• Fact: 30% of PM activities are a waste of time for your tradesmen
and equipment
• Fact: Most time-based overhauls are uneconomic and cause
maintenance-induced failures
• Fact: 24% of your maintenance stores inventory hasn’t moved in 24
months
• Fact: You are only using < 30% of the functionality of your CMMS /
EAM
All of these will be affected by Asset Management
Source: PricewaterhouseCoopers LLP
October 30, 2007 © SKF Group Slide 5

Influence of Urgent vs Planned Work
Direct Time
cost factor factor
Breakdowns 3x 3-6x
Unplanned work 1.5x 1.5 - 3x
Planned work 1x 1x
Note: You can have well planned work, but not do the right work or not do it
right.
Therefore it’s necessary to follow rework, cancelled work and Condition Based
work
The Cost of Not Doing
The Right Work At The Right Time

Industry World
average class
Deviation work - URGENT 60 % 15 %

Too little, too late
Non-value added – TIME BASED

20 % 5%
Too much, too early
Condition Based work 20 % 80 %

The Right Work at the Right Time
100 % 100 %
Reliability Vs Cost
Overall Equipment Maintenance cost as a

Effectiveness % of replacement value
Typical
Reactive Mode ... or what
65 - 70%
is the difference
4 - 5%
between these organisations?

World-class 85% <2%

Efficiency vs. effectiveness
Efficiency: task-oriented
Wrong Tasks Right Tasks

Performed Well Performed Well
Wrong Tasks Right Tasks

Performed Poorly Performed Poorly
Effectiveness: result-oriented

SKF Asset Efficiency Optimization (AEO)
1. Do you know, why

you do, what you do?
2. Does it
matter?
5. Do you learn
and improve?
3. Did you do what

you should, well?
4. Do you know
what it means?
SKF Asset Efficiency Optimization (AEO)
Maintenance Strategy Project Business Goals

Maintenance
PM = Preventive Maintenance (time-
Strategy PRM = based)
Know why you do what you do
Reliability Issues (Design) Plant Asset Management and
RCA
Proactive Reliability Maintenance
Maintenance Program (Living Program)
(what) Pre-Defined Priorities PM PRM ODR RTF
ODR = (predictive and corrective)
RTF = Operator Driven Reliability (observe)
RCA = Run to Failure (reactive
maintenance)
Root Cause Analysis
Work PRM/ODR Collection and Analysis
Optimize (why)
Identification Information Integration and Decision
(when) Work Order Generation

Corrective Operators
Maintenance Initiators
Do what you should do well

Work Standard Job Plans Planning Spare Parts
and Procedures Alignment
Control
Rolling Schedule
(who)
Work Work Execution
Execution Post Maintenance Testing

Know
(how) what you did means, act upon and learn from it!
Update Program
Where to start?
• Changing from a mostly reactive maintenance

strategy to a proactive strategy is a large undertaking
• What should the first step be?
• Focus on only “bad actors”?
• Improve time-based tasks only?
• Improve condition-based tasks only?
• ?
• Do you need to do a self-assessment to understand
where opportunities are?
• Most already know, or are convinced they do……
Maintenance maturity
Reliability-focused maintenance practices
Operator Driven Reliability (ODR)

Front line operators identify/describe/communicate
machine information to the plant-wide team.
Proactive Reliability Maintenance (PRM)

Predictive maintenance applied to help
The range of identify root causes of machine/process
problems.
maintenance
Predictive Maintenance (PdM)
practices Machine condition assessed using condition
monitoring technologies; unplanned shutdowns
reduced.
Preventive Maintenance (PM)

Unplanned and planned shutdowns
scheduled to overhaul equipment at pre-
determined intervals.
Reactive/Corrective
Fix it when it breaks approach; unplanned
shutdowns occur when the machine breaks.
Conditions for maintenance
Maintenance doesn't start in the maintenance department,

it starts in production.
• What are the demands on production ?
• Production targets, costs, etc.
• What shall maintenance department achieve to comply ?
• OEE, MTBF, costs, etc.
• What is the overall maintenance strategy ?
• Preventive -, predictive-maintenance, TPM
• Which equipment is critical ?
• Which are the common goals?
• Who is responsible for the maintenance budget?
SKF Asset Efficiency Optimization

Maintenance
Strategy Reliability Issues (Design) Plant Asset Management and PRM = based)
RCA
maintenance)
Root Cause Analysis
Optimize (why)


Control
Rolling Schedule
(who)
Work Work Execution
(how) Update Program

AEO Strategy

Maintenance
RCA
Maintenance Program (Living Program) ODR = (predictive and corrective)
Pre-Defined Priorities PM PRM ODR RTF RTF = Operator Driven Reliability (observe)
maintenance)
Root Cause Analysis
Maintenance Strategy is set by:

• Business goals
• Functional requirements of the process
• Financial, health/safety and environmental impact of operations
• Available resources and technologies
Business goals determine criticality
An AEO Strategy must understand the client’s business goals to assess

component criticality and assign the necessary maintenance tasks:
• Production ( tons / day )
• Cost per ton
• Maintenance costs per ton
• Health / Safety goals
• Environmental goals
Criticality Matrix
A typical Criticality Matrix classifies Health/Safety, Financial, Environmental criteria

Strategy focuses maintenance on business
goals
• The Right Maintenance, on

• The Right Components, at
• The Right Time, by
• The Right People, for
• The Right Reasons (business goals)
AEO Strategy ensures the client’s maintenance strategy answers the

questions:
• What equipment (components) in the facility are “critical” to achieve the business
goals ?
• What components are not critical ?
• What maintenance tasks are necessary to meet the business goals ?

Balancing Efficiency vs. Effectiveness
Strategy Development Work Planning Work Scheduling
Sustaining
Continuous
The Right Tasks Improvement
Loop
Performed Well Maintenance
Management
Cycle
Work History Work Execution

Analysis/Assessment
Effectiveness Efficiency
MSR results: Component Criticality Analysis
Component Criticality Analysis
2000
1800
1600 Total
No. of Components
1400 Components
Analyzed
1200
Client Critical
1000 Components
800
600 Post SRCM
Component
400
Criticality
200
0
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5
MSR results: Component Criticality Analysis
Cost Savings Based on Man-Hours Saved
$250,000
$200,000
$150,000
Cost Savings
$100,000
$50,000
$0
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Total
MSR results: Work Order Reduction
Work Order Reduction Analysis
140,000
120,000
100,000
80,000 Cost Before SRCM @ 35.00/W.O.

Dollars
Cost After SRCM @ 35.00/W.O.

60,000 Cost Savings
40,000
20,000
0
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Total
Plant
Benefits of AEO Strategy
• Optimizes maintenance program

• Establishes lowest costs to achieve business goals
• Identifies potential reliability improvements
• Focuses inspection and predictive maintenance
technologies on the right tasks
• Improves Computerized Maintenance Management
System (CMMS) utilization
• Creates basis for "Living Program" for continual
maintenance improvement and management of change
Strategize > Identify
AEO Identification
Maintenance in right time
Failure Early Early

arise Early
Full
function
Equipment status
Noise
Overheated
Degrade
d
Maintenance in
right time
No
Function
Planning & spare parts
Maintenance
cost
Time
Collect data on the implemented routes

Analyse data
In-data 1
Interpretate
Analyse
In-data 2
In-data 3
In-data 4
Decide preventive or corrective actions
If data is in alarm, the operator must make

(or is prompted to make) a decision as to
where responsibility lies for preventive or corrective action
In-data 1
Work order
Interpretate
Analyse
Decide
In-data 2
actions
In-data 3 •Change Bearing
in pump P-12
In-data 4
Learning and Feedback

Decision support for beer drinkers
Symptom Cause Action

Rotate the glass so opening is
Feat wet and cold Glass is held in wrong angle
pointing towards the ceiling.
Stand beside closest dog and

Feat wet and warm Bad control of bladder
complain to the owner.
Find someone who will buy you a

Beer pale and tasteless Glass is empty
new beer.
Opposite wall is covered with

Stand up and hold your self to the
lamps or your mouth is full of You have fallen backwards
bar.
cigarette stub
Mouth is not open or glass is

Beer is tasteless and the front Go back to the toilet and practice
taken to wrong part of the
of your shirt is wet in the mirror.
face.
Assets/Components/Failures/Faults
(AC Motor Example)
ASSET COMPONENT FAILURES FAULT TYPE
AC Motor Rotor Cracked/Worn rotor Mechanical Looseness
Unbalance Unbalance
Broken/Cracked rotor Rotor Bar Pass Freq.

bars
Stator Loose Stator Harmonics of Line Freq.
Eccentric Stator Eccentric Stator
Bearing Excessive Friction Bearing Damage
Lack of Lubrication
Faults/Symptoms/Key Features
(AC Motor Example)
FAULT TYPE SYMPTOM KEY FEATURE
Mechanical 1X RPM Radial 0.8x – 1.2x Running Speed, min. 4 FFT lines
Looseness (Moderate) Moderate: 0.15 IPS, Severe: 0.225 IPS
OR
(Moderate)
2X RPM Radial 1.8x – 2.2x Running Speed, min. 4 FFT lines
(Moderate) Moderate: 0.08 IPS, Severe: 0.12 IPS

AND AND
Broken Mounting Operator Instruction via MARLIN or similar:

“Check torque on mounting bolt and record”
Bolt Moderate: <20 ft-lbs, Severe: <5 ft-lbs
OR
Cracked Bearing Operator Instruction via MARLIN or similar:
Describes database Housing “Inspect bearing housing and report
configuration parameters condition”
needed to make the
measurement or
observation
Some companies collect data this way …
What is the value of this information??
Simplify the data collection
Inspection routes with barcode
Daily Weekly #11

Pump-pressure
(6178SL-
Pumppressure)
Normal 5 ‘PSI A’
#12
#13
#14
Visual inspection
Check and collection of different parameters
Instructions for the personnel
Data is compared to set alarm levels

Identifying machine conditions and the AEO
path
How do we prioritise?
• The Lucky Wheel?

• Draw Straw?
• The Loudest Voice?
• What We Feel Like Today?
• Depends On the Weather?
• Where it’s Squeaking Most?
Prioritisation of Work requests
SKF @ptitude Decision Support Success
Stories
LAM paper mill
• Implemented @DS software on 1,820 assets
• Improved repeatability and accuracy of
diagnostics (92% accurate)
• Reduced PdM technicians from 3 to 2
NAM combined generation utility
• Implemented @DS on nine coal fired units
• Reduced analysis time by over 60%
• Diagnostic accuracy was greater than 95%
European gas turbine plant
• Maintained equipment reliability with reduced staff
• Captured knowledge to train new employees
• Reduced data analysis time by 70%
HM @D Work Notification
I S Identify > Control
DCS
CMM
DC CMM
S S
SKF AEO Work Management Process

Maintenance
RCA
maintenance)
Work
Control
PRM/ODR Collection and Analysis
Root Cause Analysis
Optimize (why)


Control
Rolling Schedule
(who)
Work Work Execution

Why do we conduct maintenance?
We conduct maintenance because we think it

would cost us more if we did not conduct
maintenance.
Maintenance is, and always has been, a risk

control measure.
Control in Maintenance
What is it that we want to control?

• Is this equipment running as expected?
• Is any work for this equipment planned?
• Do we have the capacity available to perform the job?
• Are the resources for this work scheduled?
• Do we have the materials on hand?
• What are the cost of the work?
• Can production give up capacity?
Goals of planning and scheduling
• To coordinate skills, parts, special tools and time to

complete the job the first time.
• Provide a capability to collect, store and communicate

equipment history.
• Provide the capability to look forward, anticipate and

communicate needs.
Planning
The process to decide:

• Resources
• Staff
• Tools
• Spares, consumable supplies
• Instrument
• Documentation
• Time
• Method
• Description
– How
• Work sequence
• Defining the costs
Assumptions
A planned job has a better

chance of being
performed effectively
than an unplanned job
Planned work is easier to
do than unplanned or
emergency work
Any job that is not a true
emergency should be
planned - to some extent
Impact on Direct Work
Event Unplanned Planned

Instructions 5% 3%
Tools & Materials 12% 5%
Travel to and from Job 15% 10%
Coordination Delays 8% 3%
Idle at Job Site 5% 2%
Late Starts and Early Quits 5% 1%
Authorized Breaks 10% 10%
Excess Personal Time 5% 1%
Subtotal 65% 35%
Direct Work Accomplished 35% !! 65%

Nyman & Levitt, 2001
Where’s the mechanic
Estimates From Maintenance Association Surveys
WAITING,
ADMIN, 84 MIN 17.5% 30 MIN 6.2%
RECEIVING INSTRUCTIONS, LATE START/EARLY

28 MIN 5.8% QUIT, 25 MIN 5.2%
PICK UP/PUT AWAY DIRECT WORK, 140

TOOLS, 15 MIN 3.1% MIN 29.3%
IDLE TIME, 53 MIN 11.0%
TRAVEL, 82 MIN 17.0%

PERSONAL, 23 MIN 4.8%
.
Impact on Output
Two Crews without Planner Two Crews with Planner

2 Supervisors 2 Supervisors
0 Planner 1 Planner
20 Total Craftspeople 19 Total Craftspeople
35% Direct Work 65% Direct Work
7.0 Effective Workers 12.4 Effective Workers
Improved output from Planning and Scheduling equals 77%

Where There’s No Planning, there’s …
• no control of backlog
• lack of equipment history
• work orders are only a
minor percentage of work
accomplished
• no job cost information
• no performance
measurement
• maintenance downtime
costs are not tracked
Control > Execute
Do the right work right!
How much are you gambling with life?
Theoretical length of life
Length of life
in reality
Costs !
How much are you gambling with life?
• Who decides supplier?

• Who has the technical
knowledge?
• Who decides after lubrication
frequency?
• How often do you adjust intervals
and quantity?
• How often do you maintain you
automatic systems?

Execute > Optimize
Continuous Improvements
Increase time between failures (MTBF)

Decrease time for repairs (MTTR)
Decrease time for waiting (MWT)
Technology updates
KPI’s
• Effect
• Efficiency
• Maintenance cost
Proactive reliability maintenance from SKF
The four key elements of

PRM:
• Predictive maintenance
• Prognostics and root cause
analysis Predictive
• Key performance Maintenance
indicators
• Operational
review Proactive
Reliability
Operational Maintenance Prognostics and Root
Review from Cause Analysis
SKF
Key Performance
Indicators
Success
• Culture - corporate culture

willing to embrace change.
• Technology - as a tool to
facilitate improvements.
• Process – technology
supported by enhanced
processes.

Maintenance
RCA
maintenance)
Root Cause Analysis
Optimize (why)


Control
Rolling Schedule
(who)
Work Work Execution

“A Dynamic and Living Process for Continuous

Improvement”
• Strategize-Identify-Control-Execute-Optimize
Client Needs Analysis (CNA)
Client Needs Analysis (CNA) helps us understand the

maintenance maturity compared to industry benchmarks
The Winning Way 2008-02-18
2008-02-19 ©©SKF
SKFReliability
ReliabilitySystems
Systems Slide
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SKF Asset Efficiency

Presented by Walter Del Degan

We conduct maintenance because we think it

Maintenance is, and always has been, a risk

Potential loss Net benefit of

Overall Equipment Maintenance cost as a

World-class 85% <2%

So Can We Just cut Costs to Achieve

• Fact: unplanned maintenance is 1.5 to 3x more costly than planned

All of these will be affected by Asset Management

Source: PricewaterhouseCoopers LLP

October 30, 2007 © SKF Group Slide 5

Unplanned work 1.5x 1.5 - 3x

The Right Work At The Right Time

Deviation work - URGENT 60 % 15 %

Non-value added – TIME BASED

Condition Based work 20 % 80 %

Overall Equipment Maintenance cost as a

between these organisations?

October 30, 2007 © SKF Group Slide 8

Wrong Tasks Right Tasks

Wrong Tasks Right Tasks

October 30, 2007 © SKF Group Slide 9

1. Do you know, why

3. Did you do what

Maintenance Strategy Project Business Goals

Work PRM/ODR Collection and Analysis

(when) Work Order Generation

Do what you should do well

Work Work Execution

Execution Post Maintenance Testing

• Changing from a mostly reactive maintenance

Operator Driven Reliability (ODR)

Proactive Reliability Maintenance (PRM)

Preventive Maintenance (PM)

Maintenance doesn't start in the maintenance department,

Maintenance Strategy Project Business Goals

Work PRM/ODR Collection and Analysis

(when) Work Order Generation

Work Standard Job Plans Planning Spare Parts

Work Work Execution

Execution Post Maintenance Testing

(how) Update Program

Maintenance Strategy Project Business Goals

Maintenance Strategy is set by:

An AEO Strategy must understand the client’s business goals to assess

• Production ( tons / day )

• Cost per ton

• Maintenance costs per ton

• Health / Safety goals

A typical Criticality Matrix classifies Health/Safety, Financial, Environmental criteria

• The Right Maintenance, on

AEO Strategy ensures the client’s maintenance strategy answers the

• What components are not critical ?

• What maintenance tasks are necessary to meet the business goals ?

Strategy Development Work Planning Work Scheduling

Work History Work Execution

Component Criticality Analysis

Cost Savings Based on Man-Hours Saved

Work Order Reduction Analysis

80,000 Cost Before SRCM @ 35.00/W.O.

Cost After SRCM @ 35.00/W.O.

• Optimizes maintenance program