Wem PDF

WEM
Uptime® Elements ™
Passport
E xecutio
k n
Work Execution Management

IN PREPARATION FOR
r
o
W
Part of the Certified Reliability Leader
Body of Knowledge WEM
nt
M anage me
preventive maintenance • planning and scheduling

operator driven reliability
mro-spares management • defect elimination
computerized maintenance management system
WEM
Work Execution
Management
Pm Ps Odr Mro De Cmms

ISBN 978-194872-56-7
HF012017
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10 9 8 7 6 5 4 3 2 1
WEM Contents
preventive maintenance
Pm Introduction.......................................................... 3
Key Terms and Definitions................................... 3
Preventive Maintenance Goals............................ 4
Types of Preventive Maintenance
Activities.......................................................... 5
Steps to Developing a Preventive
Maintenance Program..................................... 6
Key Performance Indicators for Preventive
Maintenance.................................................... 11
What Every Reliability Leader Should Know....... 13
Summary.............................................................. 14
References............................................................ 14
planning and scheduling

Ps Introduction.......................................................... 17
The Planning Process.......................................... 19
Scheduling............................................................ 22
Scheduling Flows................................................. 25
iii
Key Performance Indicators for Planning
and Scheduling................................................ 28
Summary.............................................................. 32

Odr Introduction.......................................................... 35
Purpose of Operator Driven Reliability................ 39
Planning for Operator Driven Reliability.............. 39
Implementing Operator Driven Reliability........... 40
Continuous Improvement and Operator
Driven Reliability.............................................. 44
Benefits of Operator Driven Reliability................ 46
Summary.............................................................. 48
References............................................................ 49
mro-spares management
Mro Introduction.......................................................... 53
iv
The Importance of MRO Spares Management... 55
Developing a MRO Spares Management
System............................................................. 57
MRO Spares Management Process Flow............ 63
Measuring the Success of MRO Spare Parts
Management.................................................... 64
Summary.............................................................. 66
defect elimination
De Introduction.......................................................... 69
Why Do You Need Defect Elimination?................ 71
Creating a Defect Elimination Culture With
the Uptime Elements Approach...................... 82
How Does Defect Elimination Work Best?.......... 85
How Defects Affect Safety................................... 87
Summary.............................................................. 89
References............................................................ 90
v
computerized maintenance
Cmms management system
Introduction.......................................................... 93
Purpose of a CMMS............................................. 96
Steps to CMMS Success...................................... 99
Lessons Learned from Past CMMS Projects....... 105
Summary.............................................................. 107
References............................................................ 108
Acknowledgment............................................... 109
vi
The Uptime Elements is a holistic system
based approach to reliability
that includes: Technical Elements,
Cultural Elements, Leadership Elements
Work Execution
WEM Management
Pm Ps
preventive planning and
maintenance scheduling
Odr Mro
operator driven mro-spares
reliability management
De Cmms computerized
defect maintenance
elimination management
system
® ™
Uptime Elements
Technical Activities Leadership Business Processes
Reliability Engineering Asset Condition Work Execution Leadership

REM for Maintenance ACM WEM LER for Reliability AM Asset Management
Management Management
Ca Rsd Aci Vib Fa Pm Ps Es Opx Sp Cr Samp

criticality reliability asset vibration fluid preventive planning and executive operational strategy and corporate strategic asset
analysis strategy condition analysis analysis maintenance scheduling sponsorship excellence plans responsibility management
development information plan
Re
reliability
Rca
root cause
Ut
ultrasound
Ir
infrared
Mtmotor
Odr Mro
operator driven mro-spares
Hcm Cbl Ri Ak Alm
human capital competency risk asset asset lifecycle
engineering analysis testing thermal testing reliability management management based management knowledge management
imaging learning
Cp Rcd Ab Ndt Lu De Cmms computerized

Int Rj Dm Pi Ci
capital reliability alignment and non machinery defect maintenance integrity reliability decision performance continuous
project centered balancing destructive lubrication elimination management journey making indicators improvement
management design testing system
A Reliability Framework and Asset Management System™

Reliabilityweb.com’s Asset Management Timeline
Operate
Business Residual
Needs Analysis Design Create/Acquire Maintain Dispose/Renew
Liabilities
Modify/Upgrade
Asset Lifecycle
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Pm
preventive
maintenance
Introduction
A Preventive and Predictive Maintenance Technology
Pm
magazine study reveals that breakdown maintenance
would cost a company approximately $17 to $18 per
year per installed horsepower. However, if the company
has an effective preventive maintenance program in
place, the maintenance cost drops to $11 to $13 per
installed horsepower per year. This clearly shows main-
tenance activities that are performed in a breakdown or
reactive mode are much more expensive than mainte-
nance that can be performed in a preventive or planned
mode. Therefore, from a pure cost perspective, preventive
maintenance has a distinct advantage.
Key Terms and Definitions

Bill of Material – A list of materials needed to com-
plete a particular assembly or fabrication job; A listing
of items necessary to support the operations and main-
tenance of an asset or component.
Computerized Maintenance Management System – A
software system that keeps records and tracks all main-
tenances activities, (e.g., maintenance work orders, PM
3
schedules, PM masters, material parts, work plans and

asset history).
Failure – Inability of an asset/component to perform its
designed function.
Preventive Maintenance – A maintenance strategy
based on inspection, component replacement and over-
hauling at a fixed interval, regardless of its condition at
the time. Usually, scheduled inspections are performed
to assess the condition of an asset.
Preventive Maintenance Goals

There are many goals for preventive maintenance (PM)
programs. The first goal is to eliminate maintenance-re-
lated equipment downtime on equipment that is
capacity constrained in order to gain additional capacity.
By reducing the amount of maintenance-related down-
time related to equipment failures, additional capacity
is gained. This capacity can be utilized to either increase
production rates for any products that it produces (where
there is market demand) or eliminate any redundant
equipment currently used to produce the product.
A secondary goal is to use the PM program to extend
the usable life of the equipment, sometimes by as much
as 40 percent. A third goal is to reduce the amount of
4
reactive or breakdown work the maintenance organiza-

tion performs. This increases maintenance productivity,
Pm
thereby reducing maintenance costs.
An additional goal for a good PM program is to
focus on reducing the equipment’s energy consump-
tion. For example, heat exchangers or coolers that are
cleaned at the right frequency eliminates wasted energy.
Also, improved coupling alignment accuracy eliminates
wasted energy. Finally, there are regulatory agencies,
process safety management and international standards
organizations that all have requirements that are PM
related. A good PM program will ensure the company
focuses on these major goals.
Types of Preventive Maintenance

Activities
Three basic activities form the foundation of a PM pro-
gram. They are:
• Good equipment inspections and services,

• Proper lubrication,
• Proper fastening procedures.
Studies have shown that up to 50 percent of all equip-

ment failures have a root cause in one of these three
5
areas. If organizations focus on just these PM basics,

most would see a reduction in the amount of reactive
work they are performing and a subsequent increase in
equipment availability and maintenance productivity.
Steps to Developing a Preventive

Maintenance Program
There are basic steps for developing a good preventive
maintenance program that adds value to an organization.
The first step is to investigate why the organization
is developing or changing the PM program. In some
cases, developing a PM program is necessary when new
equipment is brought into a plant or facility. In many
companies, however, a PM program already exists. In
these cases, it is a matter of modifying the preventive
maintenance program because of poor equipment
performance, recommendations from maintenance reli-
ability engineering based on equipment performance, or
some environmental, health and safety requirements that
have changed. Whatever the driver for change, it is good
for senior management to endorse and support changes
made to the PM program.
If the reason for developing the PM program is
new equipment, then the person responsible for the
6
development of the PM program should obtain all the

pertinent information from the manufacturer. If the
Pm
manufacturer’s manual is not available or is very limited
in scope, then the person can find a similar equipment
item that currently exists in the plant. If this is not an
option, then a similar equipment item may be found in
another plant within the corporation. If this is not an
available source of information, then existing equipment
with a neighboring plant or even with a competitor’s
plant may be used as a baseline. Even if one of these
methods were chosen, it would be good to consult with
existing supervisors, technicians and maintenance engi-
neers to ensure the PM program being developed is
sufficient to accomplish its goals.
If the PM program is being modified for preexisting
equipment, then all the current PM information should
be collected for review. This would include all current
PM tasks for the trades and technicians. It would also
include gathering the equipment’s history. This would
allow for an investigation into the effectiveness of the
preventive maintenance that currently exists. In addi-
tion, equipment histories should be consulted to find any
equipment problems that have developed that are not
currently addressed by the PM program. Once all this
7
information is gathered, the PM requirements can be

reviewed and any deficiencies noted. Armed with histor-
ical data and the existing PM program, the maintenance
reliability engineer can then properly develop or modify
the required PMs.
The next step is to determine PM requirements.
Most companies use a calendar-based program, where
typically there are daily, weekly, monthly, quarterly, semi-
annual, or annual tasks. Each of these PMs would then
list a specific set of tasks or actions that must be taken
for the PM. The more specific details provided for each
task, the more successful the PM is going to be. For
example, when a task says to check for leaks, specific
fittings on the inlet side of the pump, specific fittings on
the outlet side of the pump and certain valves, such as
directional control valves or pressure relief valves, should
be mentioned.
Often times, companies feel that experienced person-
nel or journeyman-level personnel should know how to
check for things without specifying them. However, this
is not always the case. In many companies, there are gaps
in individuals’ experience and/or training. This will lead
to poor results on inspections, which leads to negative
feelings about the preventive maintenance program. In
8
addition, many current training programs are not effec-

tive and lead to craft skills being insufficient without
Pm
providing this level of detail.
Preventive maintenance tasks also allow for training
of existing craft employees. A new technician can be
assigned a PM and be shadowed by a supervisor or an
experienced technician. As the supervisor observes the
technician performing the PM step-by-step, coaching
can be provided, if necessary. The supervisor can then
certify that the employee can properly perform the PM
task, allowing the technician to perform the task in the
future without any supervision. This becomes a perfor-
mance-based training program, also commonly called
on-the-job training.
In addition to the detailed task description, the PM
task should specify the bill of materials (BOM) for the
PM. If the PM requires spare parts, such as filters, lubri-
cants, etc., this should be specified to help eliminate any
delays in performing the PM activity while the techni-
cian is gathering or hunting for spare parts. Specifying
spare parts on the PM also prevents the scheduling of
the PM without the parts being kitted or staged, which
again, helps to increase labor productivity of the tech-
nician performing the PM.
9
Once the PM tasks have been detailed, the next step

is linking them to the appropriate equipment. In most
cases, this is done by a computerized maintenance man-
agement system (e.g., CMMS or EAM system), which
allows a PM library to be developed so each library task
is associated to one or more pieces of equipment.
The subsequent step is to set the maintenance
planning and scheduling parameter. The schedul-
ing parameter is a trigger to activate the preventive
maintenance task. Some examples are calendar-based
PMs, time-based PMs, usage-based PMs, or, in some
advanced companies, condition-based PMs. Once the
proper scheduling parameter is set, they are filed in the
PM library until the schedule calls for them to be acti-
vated. A scheduling call is when the calendar time, the
usage, or the measured condition has been exceeded.
The computerized management system is notified and
the system automatically generates the PM based on
the scheduling call. It is then sent to the appropriate
crew for execution.
When developing a PM program, there are several
common mistakes to avoid. The first is trying to address
the wrong types of failures with the PM program. It is
difficult to develop a PM program to eliminate infant
10
mortality failures, random failures, abuse or misuse of

equipment, or normal wear out failures.
Pm
Basic PM programs should be used to address equip-
ment failures that become obvious as the equipment
begins the wear out phase of its life. These age-related
wear outs or failures should be the focus of a basic
PM program. As equipment becomes older, it requires
closer attention to its maintenance. Major overhauls
or major equipment rebuilds may partially reestablish
the equipment’s lifecycle curve. Good data analysis
will allow an organization to be cost effective when
determining the schedules for age-related preventive
maintenance.
Key Performance Indicators for

Preventive Maintenance
Four key performance indicators (KPIs) for preventive
maintenance are recommended to begin with, realizing
that others can be added/substituted as the PM program
matures. They are:
• Preventive maintenance schedule compliance – Mea-

sured by comparing the PM tasks that are scheduled
in a given time period (usually a week) to those that
were actually completed in that given time period.
11
This should be calculated as a percentage. While

this number may be low when a PM program is first
started, the indicator should be in the 95 percent or
higher range for a more mature PM program.
• Preventive maintenance planning accuracy – Mea-
sured by comparing the estimated labor and material
resources on the PM plan to those that were actually
utilized while performing the PM task. Calculated as
a percentage, this number should be in the 95 per-
cent or higher range to enable good scheduling of PM
tasks.
• Preventive maintenance tasks overdue – Looks at the
PMs that were scheduled but not completed within
a given time frame. The difficulty in using this indi-
cator is setting a policy of when a PM is overdue. Is
a weekly PM overdue a day after it was specified to
be performed? A week? A month? Once the policy
is properly set for each type of PM, the indicator can
be extremely useful in keeping the PM program on
schedule.
• Preventive maintenance results – Measured in several
ways, however, the most common is to compare the
reactive or breakdown maintenance work as a per-
centage of the total maintenance work performed.
12
If a PM program is effective, the total amount of

reactive maintenance work should be less than 20
Pm
percent of the total work performed. Reactive work
should be clearly defined and tracked. For example, a
common definition of reactive work is any work that
is not scheduled a week in advance; in some organi-
zations this is also known as scheduled break work,
since it has to break into the weekly schedule to be
performed.
What Every Reliability Leader

Should Know
• Preventive maintenance forms the foundation of any

maintenance and reliability process.
• The entire organization needs to value the PM process.
• The PM checksheets need to be detailed so they can
be used to train new technicians.
• The PM program should focus on eliminating “wear
out” equipment failures.
• PM programs should reduce the amount of reac-
tive work to less than 20 percent of the maintenance
activities.
13
Summary
Preventive maintenance is one of the most important
building blocks of work execution management. It
provides the stability necessary for the maintenance
organization to become efficient and effective in other
work execution management requirements. Without an
effective PM program, organizations will continue to be
stuck in a reactive mode of work.
References
Wireman, Terry. Zero Breakdown Strategies. Fort Myers:
Reliabilityweb.com, 2012.
Wireman, Terry. Maintenance Strategy Series Volume 1 -
Preventive Maintenance. Fort Myers: Reliabilityweb.com,
2011.
14
Ps
planning and
scheduling
Introduction
Assuming basic controls and disciplines, such as pre-
ventive maintenance and MRO spare management, are
in place, improving maintenance effectiveness begins by
understanding the impact planning and scheduling has
Ps
on maintenance costs. The general rule is that proactive
work can be performed for one-fourth to one-half of
the cost of reactive work. The three basic areas of sav-
ings are maintenance labor, maintenance materials and
contractors.
The goal of maintenance planning and scheduling
is to improve maintenance labor productivity, thus
eliminating waste from work processes. In a reactive
maintenance environment, (greater than 20 percent of
the maintenance resources deployed on unplanned and
unscheduled work), the maintenance labor productivity
will be less than 30 percent. With an effective planning
and scheduling process, the maintenance labor pro-
ductivity may reach the 60 percent level. This basically
doubles the amount of work that can be performed by
the same resources.
17
Maintenance material costs are also reduced by

maintenance planning and scheduling. With better
maintenance controls (including forecasted demands)
in place, material costs are reduced by:
• Better pricing from vendors due to forecasted

demand.
• Optimum stocking levels and an appropriate service
level.
• Less loss due to expired shelf life of spares/supplies.
• Lower expediting costs.
• Fewer storage locations due to just-in-time spare part
delivery/usage.
• Kitting and staging, further increasing the efficiency
of the maintenance resources.
These cost savings can be substantial, further reducing

materials costs for an organization with effective mainte-
nance stores and purchasing process. In addition, where
internal maintenance labor productivity and material
costs are reduced by planning and scheduling, contractor
costs are also reduced. Contractor costs are reduced in
the same way internal maintenance resources are, which
is a more efficient and effective deployment of resources.
18
The Planning Process

There are some organizational considerations for main-
tenance planning and scheduling. Maintenance planning
requires a dedicated individual(s) to plan and schedule
maintenance activities. The difficulty is to ensure a plan-
Ps
ner has sufficient time to properly plan the work. Some
organizations try to estimate a planner’s workload by the
number of work orders planned per day. However, this is
typically not effective since the complexity of the work
can vary. The best method for determining planner work
load is by the number of technicians for which work
is planned. A good ratio of maintenance technicians
to planners ranges from 15:1 to 20:1. If the numbers
are higher than that, the effectiveness of the planning
program is negatively impacted. If the number of tech-
nician is less than that, then the planner is typically not
properly engaged.
The 15:1 to 20:1 ratio also assumes the individual is
planning and scheduling for the assigned technicians. If
the organization decides to have both a planner and a
scheduler position, then the ratio of employees will need
to be increased. The ratio may increase to a 30:1 planning
ratio and a 60:1 scheduling ratio. However, if the ratio is
not reasonably maintained, then the quality of planning
19
and scheduling suffers and the effectiveness of planning

and scheduling becomes questionable. This has been the
cause of the majority of failed and terminated planning
programs in industry.
Since there are many organizational and geographical
considerations to the planner’s and scheduler’s activities,
these staffing numbers should be used as general starting
points. The effectiveness of the planner and scheduler
should be monitored and staffing ratios adjusted to
ensure they are maximizing the efficiency of the main-
tenance technicians.
Not all maintenance work needs to be planned and
scheduled. It is up to each organization to decide on the
criteria for planning and scheduling. For some organi-
zations, a maintenance task that requires one technician
skill, takes less than an hour or two to complete and has
parts in stock does not require planning and scheduling.
These become just “go-do” or “fill in” jobs. However, a
decision tree or process flow should be made for plan-
ning and scheduling. A process flow first begins by
asking whether or not planning is required. If the work
meets the minimum criteria for planning and schedul-
ing, then the work is assigned to the designated planner.
The planner will investigate the task and ensure it meets
20
the criteria for being planned. In some cases, the work

may become part of an outage or shutdown turnaround.
If the work requires a more complex planning process, it
is typically handed off to a specific planner that performs
those activities.
Ps
The planner investigates the work and determines the
following:
• All required materials;

• The craft type and skill level specified;
• The required number of craft technicians;
• A listing of all required tools;
• A list of any non-standard equipment;
• A detailed description of all job steps;
• Descriptions of all safety requirements;
• Any OSHA, EPA, or other federal or state require-
ments (permits, etc.).
It is the maintenance planner’s job responsibility to

ensure that all this information is provided for each
non-emergency work order. This is why the planner/
craft technician ratio is so important. If a planner is to
provide all this information, he or she will be limited to
the number of work orders that can be processed in a
given time period.
21
Once the plan is complete with all details, the

work order is moved to the scheduling process. As the
schedule is being developed, there are specific inter-
actions between planner and supervisor that must be
understood. The first-line supervisor in maintenance is
responsible for seeing that the job is executed accord-
ing to the job plan provided by the planner. While the
planner determines the type of technician and the skill
level required, the supervisor assigns a specific techni-
cian(s) to the work order. This requires the supervisor
being on the floor with the crew at least six out of the
eight hours available on the shift. The supervisor should
not be tied to administrative or paperwork functions for
more than two out of eight hours available on the shift.
This requirement is important to allow proper control of
assigned technicians, since the supervisor is responsible
for their activities.
Scheduling
Scheduling brings the entire activity together. A main-
tenance schedule is most effective when performed on a
weekly basis. Some companies try to schedule on daily,
monthly, or some other time frame. However, these
schedules either lack the control or are too confining to
22
be effective. Examining a weekly schedule is the most

effective for maintenance since it allows flexibility, yet
still has enough control to avoid wasting resources. For
example, a daily schedule can be disrupted when it is set
16 hours before the starting time of the schedule. Once
Ps
the schedule is set and the planners go home for the day,
any breakdowns or emergencies that occur before they
come back will disrupt the schedule. On a day-to-day
basis, the daily schedule will be unreliable and inaccurate.
The weekly schedule is far more accurate because it
allows for emergencies and other schedule interruptions.
The amount of emergency work, small interruptions,
preventive maintenance and other work can be tracked
and averaged on a weekly basis.
Consider the following schedule example:

10 men x 40 hours 400 hours
2 contract employees x 40 hours + 80 hours
5 O.T. shifts x 8 hours + 40 hours
____________

Total weekly hours to schedule = 520 hours
23
Deductions
30% emergency work (.3 x 520) 156 hours
5% absenteeism + 26 hours
20% PM work + 104 hours
____________
Total Deductions = 286 hours
Total to Schedule = Available - Deductions

= 520 hours - 286 hours
Total to Schedule = 234 hours
If the planner schedules 234 hours of work from the

backlog for the week, the assigned crew would have a
high probability of completing the tasks. If this “net
capacity” scheduling technique is used to set the amount
of work to schedule, scheduling accuracy of 95 percent
or more can be achieved.
24
Scheduling Flows
The manner in which the maintenance scheduling pro-
cess takes place depends on the organizational structure,
but these steps should be followed each week:
1. The planner gathers any uncompleted work that is
Ps
outstanding at the end of the week.
2. The planner calculates the craft capacity for the next
week.
3. The planner deducts outstanding (incomplete) work
from the craft capacity.
4. The amount of craft capacity that is left is the total
number of hours that can be scheduled from the
craft backlog of planned work.
5. Based on priority, date needed and equipment
availability (or other company specific parameters),
the planner selects the work orders from the back-
log for scheduling. Note: Any work that is put on
the schedule for the next week must be ready to
schedule. This means all parts, tools, outside con-
tractors, rental equipment, etc., must be ready. Any
work that is put on the schedule before it is ready to
execute will result in lost productivity and wasted
resources.
25
6. The planner continues to select work from the back-

log, matching labor resource requirements to craft
availability. Once craft availability is fully utilized,
the schedule is complete. The planner may put sev-
eral additional jobs in a category of optional work
as a supplement to the schedule. This is in the event
the amount of reactive work is lower than expected
or there is a change in production schedules, restrict-
ing the equipment that will be available to work on
during the week.
7. The tentative schedule is presented to the main-
tenance manager for review and maintenance
approval.
8. The maintenance manager meets with production/
operations/facility manager(s) by Thursday of the
week before the schedule is to start. The manager(s)
may want to rearrange some priorities, add some
additional work, defer some work, etc. The result
of the interchange between the managers should
finalize the schedule.
9. The finalized schedule is routed back to the planner.
The planner begins printing all work orders, parts
pick lists for the stores, contractor notifications and
permits, and notifies equipment rental agencies.
26
10. The planner puts information about each work order

into a packet, along with next week’s schedule, and
delivers them to the supervisor that is responsible
for the work execution by noon on Friday.
11. The supervisor reviews the work on the schedule
Ps
and resolves any questions before the end of the day
on Friday. This allows the supervisor to prepare the
order in which the work is to be executed during the
following week.
12. The supervisor determines the order in which the
work is to be done and matches the craft technicians
to the work.
13. As the week progresses, the supervisor turns in all
completed work orders to the planner. The planner
completes the record keeping (this may be a clerical
job, depending on the resources available).
14. The planner monitors the progress of work comple-
tion for all scheduled work and by Thursday is ready
to begin developing the schedule for the next week.
The process starts again.
Based on the company, some variations and adjust-

ments must be made to make this sample scheduling
flow. If multiple planners are utilized, it will require that
27
multiple schedules are coordinated. Multiple crafts also

will require additional coordination. Multiple operations
managers will require multiple meetings and perhaps
multiple schedules. Area maintenance will work slightly
different than centralized maintenance. However, if the
basic principles are applied and enforced by all managers
involved, good effective scheduling will occur.
No maintenance schedule will ever be effective if good
planning is not enforced. Effective schedules require that
each work order have:
• Accurate craft requirements,

• Accurate materials requirements,
• Accurate contractor requirements,
• Accurate equipment/tools requirements,
• Accurate date needed, priority, etc.
With effective planning programs, effective mainte-

nance scheduling will be achieved.
Key Performance Indicators for

Planning and Scheduling
There are three key performance indicators (KPI) for
planning and scheduling. The first is the percentage of
work distribution by type of work order. This indicator
28
monitors the work distribution for an organization by

showing the majority of work performed by the orga-
nization and where most of the resources are being
consumed. Although the terminology may differ in
organizations, a typical series of categories are reactive,
Ps
preventive and corrective orders. Some organizations
may choose to add one or two additional categories
(e.g., predictive or overhaul), but the number should be
kept small.
This KPI is derived by dividing the total hours for a
specific type of work by the total hours for all types of
work and expressed as a percentage. These figures are
calculated and should show a 20/40/40 distribution. The
reactive should be less than 20 percent, the preventive
should be in the 40 percent range, and the planned and
scheduled (weekly) corrective work should be about 40
percent.
The second KPI is planning compliance. This indica-
tor checks the accuracy of the estimates for the work that
is on the weekly schedule. The indicator is important for
organizations moving toward an integrated scheduling
program where maintenance and operations schedules
are combined. Any inaccuracies in the maintenance
schedule have a direct impact on the production or
29
operations schedule. In organizations where schedule

integration is not an issue, this indicator is still benefi-
cial because the maintenance schedule will have some
impact on the production or operations schedule.
This KPI is the labor hours planned (estimated) for
the work order compared to the labor hours actually used
to complete the work. It is derived by dividing the hours
estimated for the work orders on the week’s schedule by
the actual time it took to perform those work orders. The
tracking system should give managers the ability to drill
down into the data to see which specific work orders are
causing any discrepancies. This information can then
be used to improve the effectiveness of the planners.
If the reason for non-compliance is not related to the
planning process, it will highlight another issue that can
be corrected, which will improve maintenance efficiency
and effectiveness.
The third KPI is scheduling compliance. This indica-
tor compares the hours that were scheduled to work to
the hours that were actually worked and is expressed as
a percentage. Some organizations will use the number of
work orders, which is acceptable as long as the detailed
hours are also made available. This is important for deter-
mining the actual cause of any scheduling discrepancy.
30

Should Know
• Planned and scheduled work can be performed at a

quarter to half the cost of the same work performed
in a reactive mode.
Ps
• The planning and scheduling function will impact the
maintenance labor and materials costs for repairs.
• For an effective planning and scheduling function, a
ratio of 15 to 20 technicians per planner is required.
• For an effective planning and scheduling function,
the work that needs to be planned should be clearly
defined and developed in a process flow diagram.
• The planning and scheduling function should process
at least 80 percent of all maintenance activities.
Summary
Proper planning and scheduling of maintenance activi-
ties are critical if maintenance costs as part of an asset’s
overall lifecycle costs are going to be controlled. If the
guidelines presented in this Uptime Element are fol-
lowed, then maintenance planning and scheduling can
be successful. This will be true whether maintenance is
scheduled by the maintenance department or as part of
31
a team effort. Successful team-based maintenance orga-

nizations also can utilize the guidelines presented in this
Uptime Element.
32
Odr
operator
driven
reliability
Introduction
Operator driven reliability (ODR) is a process that
involves operators in the maintenance reliability of their
equipment. ODR selects tasks previously performed by
maintenance technicians and reassigns these tasks to
operators. However, ODR is only effective when oper-
ators are focused on specific tasks. The operators must
be properly trained and coached in the performance of
Odr
each task.

Asset Management – An organizational process to
maximize value from an asset during its life; The man-
agement of the life of an asset to achieve the lowest
lifecycle cost with the maximum availability, perfor-
mance efficiency and highest quality.
Best Practice – A technique, method, or process that is
more effective at delivering a desired outcome than any
other technique, method, or process. This practice usually
becomes as benchmark; a practice that leads to superior
performance in a specific process.
Breakdown – An unexpected interruption to the service
of a particular asset.
35
Breakdown Maintenance – Maintenance performed

in response to a breakdown; this type of maintenance
typically costs two to four times as much compared to
the same maintenance performed in a planned mode.
Cleaning – The act of removing contamination or other
materials from an asset.
Continuous Improvement (CI) – The process of con-
stantly improving an organization’s processes; Recurring
activity to enhance performance.
Downtime – The amount of time when the assets/
machines in a plant or facility are not producing because
of failure, down for maintenance, or other reasons.
Equipment Capacity – The ability of equipment to
produce a product or provide a service at a given per-
formance rate over a specified time period.
Equipment Uptime – The time period during which an
equipment item is performing at design specification;
the inverse of downtime.
Idling and Minor Stoppage – A type of equipment
loss caused by small stoppages of the equipment; usual
causes are small and require little effort to repair or reset,
however, the losses can be significant when accumulated
over time.
36
Operational Involvement – The involvement of opera-

tions personnel in some aspect of maintaining equipment
or assets. Synonymous with Operator Involvement.
Operations Personnel – Personnel working in the oper-
ations department.
Planned and Scheduled – Activities in maintenance
where resources are determined in advance and time is
estimated to carry out the work.
Odr
Predictive Maintenance (PdM) – An advanced
maintenance technique focused on using technology
to determine the condition of assets and then taking
appropriate actions to avoid failures. Synonymous
with Condition-Based Maintenance and On-Condition
Maintenance.
Preventive Maintenance (PM) – A maintenance strat-
egy based on inspection, component replacement and
overhauling at a fixed interval, regardless of its condition
at the time. Usually, scheduled inspections are performed
Reactive Work – Maintenance activities that occur with
little or no notice; these activities interrupt the weekly
maintenance schedule and cost two to four times as
much as when they can be planned and scheduled.
37
Reduced Speed/Capacity Losses – Losses incurred

when equipment or assets are allowed to perform at less
than design speed or capacity.
Reliability – The probability that an asset, item, or
system will perform its required functions satisfactorily
under specific conditions within a certain time period.
Root Cause Analysis (RCA) – Identification and eval-
uation of the reason for an undesirable condition or
nonconformance; A methodology that leads to the dis-
covery of the cause of a problem or root cause.
Routine Lubrication – The act of carrying out lubri-
cation on an equipment or asset on a regular schedule.
Start-up Inspections – Inspections typically carried
out by operational personnel while starting up the
equipment.
Technical Training – Training in the technical trades
areas, such as electrical, mechanical and fluid power.
Thermography – A predictive technology that detects
infrared energy emitted from an object, converts it
to temperature and displays an image of temperature
distribution.
Work Order – A paper or electronic document specify-
ing the work needed on an asset.
38
Purpose of Operator Driven Reliability

The purpose of operator driven reliability is twofold.
The first is to free up maintenance technicians with the
involvement of operators. With operators performing
tasks that maintenance technicians usually perform frees
up maintenance resources to be redeployed on higher
level predictive and reliability focused tasks. The second
purpose is to find tasks that create less downtime for the
Odr
operators to perform than if a maintenance technician
was required to perform the task. Both of these ODR
goals must be balanced against operational tasks already
assigned to operators to prevent any loss of production
caused by the operator performing maintenance reliabil-
ity tasks on the equipment.
Planning for Operator Driven Reliability

Certain prerequisites must be in place before ODR can
be implemented. The first is preventive maintenance.
Most of the ODR tasks that will be assigned to oper-
ators will be PM tasks that maintenance technicians
typically have performed previously. So unless a good,
documented PM program has been developed and is
being properly executed, it will be difficult to find the
proper tasks for the operators. A second prerequisite
39
is a good spare parts or maintenance supply program.

This is necessary to ensure that operators will have the
proper spare parts or maintenance supplies for the tasks
they may be asked to perform. This might include items,
such as filters, lubricants and small tools like grease guns
or hand tools. A third prerequisite is a properly docu-
mented work order system. This will help in identifying
specific, documented tasks that maintenance has been
performing for possible transfer to operators. These
types of tasks are typically small adjustments or routine
services for equipment that are outside the normal pre-
ventive maintenance program.
Implementing Operator Driven

Reliability
To properly implement ODR, it is necessary to clearly
understand why ODR is being implemented. It should
be clear that implementing ODR is going to produce
additional equipment availability or reliability, or it is
going to free up maintenance resources to be redeployed
in higher level predictive or reliability activities. In many
cases, companies have tried to implement ODR to elim-
inate maintenance technicians. This approach has never
been successful. It’s important that the organization has
40
the proper focus if it’s going to be successful in imple-

menting ODR.
Once the decision has been made to implement
ODR, the development process begins by examining
PM tasks currently being performed by maintenance
technicians. Next, review work order history to look
for routine tasks that operators could perform that are
not PM tasks. It would also be good to review all small
maintenance activities that are captured as reactive work
Odr
orders or perhaps even captured in a manual log for
potential inclusion in the ODR program.
Some criteria for identifying possible tasks for trans-
fer from maintenance operations might be:
• One basic skill is required, such as mechanical or

electrical.
• No special tools or equipment are required to perform
the task.
• No significant disassembly is required to perform the
task.
• No specialized craft skill is required to perform the
task.
After potential tasks have been identified, they should

be simplified to the point where a small diagram and
41
several basic steps detailing how to perform the task

can be easily documented. Depending on how advanced
the ODR program will be developed, it is possible to
separate the tasks into several categories. One category
might be fundamentals that focuses on the basics and
includes minor adjustments or lubrication-related tasks.
A second category might be troubleshooting. A very
brief “if then – then this” type of troubleshooting chart
may be developed for small breakdown tasks. These
might include things like electrical resets or clearing
and resetting a mechanical jam. A third category of tasks
could be improvement type activities that focus on the
elimination of idling or minor stoppage delays.
When the tasks to be transferred have been chosen,
each task should be reviewed, since performing tasks
require the proper skills and different skill levels for each
of the major trades. For example, if it is an electrical task,
providing safety instructions for a button to be reset
requires a different skill set than for a wire to be dis-
connected. If it is a mechanical task, safety instructions
for a minor adjustment will differ in skill requirements
than those for clearing a mechanical jam. As the skills
are being specified for each task, it is important to ask,
“Does the skill required to properly perform the task
42
exceed the operator’s capabilities or the level of capabili-

ties that the company is willing to train the operator?” If
the required skill exceeds the operator’s capabilities, then
the task should be rejected for ODR and remain with
maintenance personnel. If the skill required is within
the operator’s current capabilities or the capabilities to
which the company is going to train the operator, then
the task qualifies for ODR and a duties/steps/needs
analysis must be performed.
Odr
To properly perform a duties/steps/needs analysis,
it’s important to understand what this involves. Once
each task to be transferred to operations is identified,
it needs to be broken down into a hierarchy. Duties are
the tasks that are to be transferred. Steps are the individ-
ual actions that are required to perform the duties. The
needs is the knowledge and skill required to perform the
steps in the duties. Some operators may already have the
knowledge and skills required to perform each step in
the duty. Other operators may have none of the knowl-
edge and skills required, while some operators may have
partial knowledge and skills. Therefore, it is necessary
for a training program to be developed for each of the
duties. This training program is typically referred to as a
single point lesson or one point lesson. Every operator
43
should be provided with a copy of the single point lesson

for each duty they are to perform. This ensures they are
qualified to perform the duties that are required.
After studying and practicing the single point lesson,
the operator is typically certified by performing the duty
while being observed by a supervisor, a representative
from the training department, or a highly-skilled opera-
tor that has been designated by management to perform
the observations (sometimes referred to as the on-the-job
trainer). The goal is to ensure the operator can perform the
duty safely and in a quality manner. Once certified, the
operator typically signs a copy of the single point lesson,
verifying proper training and confidence in performing
the duty. It is countersigned by the individual designated
to perform the job observation and a copy is provided
to the operator and the HR department. The operator is
now qualified to perform the assigned duty. This process is
repeated until an operator has been certified on all single
point lessons for the duties required to perform.
Continuous Improvement and Operator

Driven Reliability
As ODR continues to be implemented in many com-
panies throughout the world, there are additional
44
improvement opportunities being discovered. One

opportunity is developing a maintenance/operations
team that both operates and maintains the equipment.
In this team environment, team members with main-
tenance skills take the lead when the equipment needs
maintenance, training other team members in proper
maintenance techniques utilizing the already developed
one point lessons. Conversely, the operations team mem-
bers coach maintenance team members in operating the
Odr
equipment properly. This team environment has been
successful and will operate in most organizations with
very little supervision.
Another opportunity being used in many companies
is a blended operator-maintenance technician role. In
this role, the operator position is filled by an individ-
ual that has journeyman-level maintenance technician
skills. This provides the operator with the knowledge of
when to operate the equipment and when to perform
maintenance on it.
Whatever techniques are ultimately developed
by a company, the goals always should be to free up
maintenance resources to redeploy on higher level tech-
nical assignments and improve equipment reliability by
increasing uptime and performance efficiency.
45
Benefits of Operator Driven Reliability

When attempting to quantify the benefits of ODR, it
is necessary to understand its variability and how it is
implemented from company to company. While some
companies will engage operations personnel in very
basic tasks, others will utilize them in very detailed,
maintenance-intensive tasks. However, as a broad goal,
operations personnel should be utilized at a minimum
to take ownership in 10 to 40 percent of all preventive
maintenance duties. This should correspondingly free
up 10 to 40 percent of previous Pm-focused mainte-
nance resources to be redeployed in predictive activities,
such as vibration analysis or thermography, and reli-
ability activities, such as performing root cause failure
analysis.
Since maintenance resources are now performing
higher-level activities, this impacts equipment avail-
ability and performance efficiency positively. Increasing
availability and performance efficiency ultimately
increases the capacity of the equipment. The goal is to
achieve design capacity for a piece of equipment. In
some advanced ODR-centered organizations, mainte-
nance resources are also made available for higher-level
reliability analysis. This higher-level reliability analysis
46
is focused on improving the design of the equipment,

thereby increasing overall reliability and, ultimately, the
capacity of the equipment. It is these improvements that
are the ultimate benefits of ODR.

Should Know
• Operator driven reliability is a process that involves
Odr
operators in the maintenance and reliability of their
equipment.
• The first goal of ODR is to produce additional equip-
ment availability or reliability.
• The second goal of ODR is to free up maintenance
technicians by transferring some of the basic main-
tenance and reliability tasks on the equipment to the
operators.
• One of the most important ODR steps is to decide
on the criteria for ODR tasks that can be transferred
to the operators.
• Each ODR task should be comprised of one or more
single point lessons.
47
Summary
Operator driven reliability is an operational strategy that
allows operations personnel to perform basic mainte-
nance and reliability tasks on their equipment. The focus
is always to free up maintenance personnel by having
operations personnel perform basic maintenance tasks
so maintenance personnel can conduct higher-level
maintenance reliability activities on the equipment. The
ultimate goal is to increase the capacity of the equip-
ment to achieve design capacity. In some organizations,
it is even possible to redesign the equipment and safely
increase the capacity to new levels of design capacity.
The end result will be increased profitability and com-
petitiveness for the company.
48
References
Shirose, Kunio. TPM Team Guide. New York:
Productivity Press, 1995.
Suzuki, Tokutaro. TPM in Process Industries.
New York: Productivity Press, 1994.
Wireman, Terry. Training Programs for Maintenance
Organizations. New York: Industrial Press, 2009.
Wireman, Terry. Inspection and Training for TPM.
Odr
New York: Industrial Press, 1992.
49
Mro
mro-spares
management
Introduction
By delivering savings in the areas of overall spare parts
cost, maintenance labor productivity costs, purchasing
costs, and equipment downtime costs, MRO spares
management is an essential component to any work exe-
cution management system. MRO spares management
should have an organizational structure that eliminates
wasted maintenance productivity, standard work pro-
cesses for receiving, issuing and returning of stock items,
appropriate numbering system for stock inventory, and
key performance indicators for measuring service level
and total valuation trend.
Mro
Critical Spares – Key parts and/or components of an
asset that need to be in stock or readily available because
unavailability can cause major production or service
interruptions.
Inventory – The value (quantity) of goods or material on
hand. Inventory can be classified into four categories: 1)
Finished goods, 2) Work-in-Process, 3) Raw material,
4) Maintenance and operating items, such as spare parts
and operating supplies, including consumables.
53
Inventory and Procurement – A function within an

organization responsible for procuring and storing spare
parts, equipment and, in some cases, raw materials. This
function is required to support the maintenance function
if maintenance activities are to be carried out effectively
and efficiently.
Purchase Orders – Orders produced by the purchasing
department to procure spare parts for the company.
Purchasing – The functional department responsible
for securing the raw materials and spare parts necessary
for the company to produce its product or provide its
service. Synonymous with Procurement.
Routine Spares – Spare parts that are used on a regular
basis to maintain equipment or assets.
Service Level – The percentage of time spare parts are
in stock in the storeroom before they are required.
Stockout – A situation where required materials/parts
are not available from the store inventory or within an
agreed upon time.
Stores – The function within an organization/plant
responsible for maintaining the inventory of spare parts
and tools.
54
Stores and Procurement – The function in a company

responsible for ordering, purchasing and maintaining
spare parts. Synonymous with Inventory and Purchasing.
The Importance of MRO Spares

Management
The importance of MRO spares management is best
understood when it is viewed in the context of the
impact that MRO spares have on organizational profit-
ability. When examining maintenance expenses, MRO
spares, in most organizations, will comprise 40 to 60
percent of all maintenance costs. One would only have to
Mro
consider their organization’s overall maintenance expen-
ditures to understand the importance of MRO spares
management.
In addition to pure spare parts costs, the manner in
which spare parts are managed has an impact on main-
tenance labor productivity. For example, in organizations
where materials are not managed correctly, the following
wastes occur:
• Technicians waiting on materials;

• Technicians traveling to get materials;
• The time it takes for technicians to transport materials;
55
• Technicians looking for parts in remote storage

locations.
These labor productivity losses can amount to up to

50 percent of a technician’s time. For technicians who
are paid $40 to $50 per hour, this can be a very expensive
waste of resources.
Besides labor productivity losses, an even greater loss
occurs with equipment-related downtime. If there is an
equipment breakdown and there are no spare parts on
hand, the equipment is down for an extended period of
time while parts are being procured and delivered. Even
if the part can be delivered in an hour, one would have
to examine downtime costs for the equipment during
that hour. Some equipment downtime rates range from
as low as $5 to $10,000 per hour to as high as over
$100,000 per hour. A secondary consideration is when
low cost or counterfeit spare parts are purchased. While
the spare parts may function initially, the life expectancy
for them is extremely short. This results in unnecessary
downtime to perform work to replace the part a second
time, incurring additional downtime cost.
If one were to look at MRO spares from just this per-
spective, it would seem that spare parts inventories should
be very high. However, there is a second perspective that
56
must be explored. There is a holding cost incurred while

spare parts are in inventory. This can amount to up to 30
percent of the purchase price of the spare part. This is an
annual cost as well. So for a company holding a $10 million
inventory, the holding cost may be as high as $3 million
per year. As such, the maintenance department may want
to keep a large inventory, while the inventory and purchas-
ing department will try to keep a small inventory. This
leads to some internal conflict. It is for this reason that is
necessary to have a well-organized, well-maintained and
data-driven MRO spares management system.
Mro
Developing a MRO Spares Management
System
When beginning the development of a MRO spares
management system, it is good to understand the busi-
ness reason for the task. There are three areas that should
drive MRO spares management development. They are:
1. A decrease in maintenance labor productivity due to

spare parts;
2. An increase in equipment downtime due to spare
parts;
3. An increase in overall inventory valuation.
57
Once the reason for the MRO spares management

system is understood, it allows the decision-making
process to be clarified and the MRO spare parts man-
agement development process can begin.
The first decision to be made relates to the location
of the MRO spares storage. The location should closely
match the geographical arrangement of the maintenance
area. If the maintenance section is centralized, the MRO
spares storage also should be centralized. If the mainte-
nance organization is in an area configuration, then the
MRO spares storage also should be in an area configu-
ration. If this rule is not followed, there will be wasted
maintenance productivity while obtaining spare parts.
While an argument can be made for kitting and delivery
systems, this typically is only successful in organizations
with very mature maintenance planning and scheduling
processes.
Once storage locations are decided upon, the next
decision is organization of each storage area. Depending
on the size of the storage area, there are several tech-
niques that can be used. Some companies like to organize
their spare parts by type. This is typically used in larger
storerooms. A second option is to organize spare parts by
equipment. This is typically used in smaller storerooms.
58
Whichever method is used, the spare parts should be

stored correctly to ensure they are not damaged during
storage. Regardless of which method is used, shelf, bin
and aisle locations for each of the storage areas should
be specified. This will allow a very specific location to
be assigned to each spare part, eliminating any delay in
finding the spare part.
The next important decision to be made pertains to
securing the spare parts while they are being stored. It
is best to have a storeroom attendant in each of the
storage locations when anyone is procuring spare parts.
While some companies will block this, contending it is
Mro
too expensive, this is typically not the case. If one would
examine the dollar value of inventory reconciliation (the
dollar value of “lost” items) that could occur annually
and compare this amount to the cost of a storeroom
attendant, the position can easily be cost justified. In
addition to just issuing parts, the storeroom attendant
will be executing many of the other MRO spares pro-
cesses, such as issuing, receiving and stocking spare parts.
An identification system for MRO spare parts also
needs to be decided upon and developed. This typically
starts with the development of a part numbering system.
There are many ways to develop the part numbering
59
system. However, one method that should NOT be used

is relying on the vendor or manufacturer’s part number.
Vendors and manufacturers periodically change or
modify part numbers. Since this is a record key number
for the inventory system, which means once it is devel-
oped, it cannot be changed without losing all of the
historical information attached to the record, using a
vendor number will create many problems in MRO
spares.
Once the location has been determined, the store-
room properly arranged and a part identifying system
developed, it is necessary to develop the stocking policies
and calculations. There are many formulas for developing
reorder points, reorder quantities and desired stock-
ing levels. The relationship between these terms are
important to understand since stocking calculations will
determine how effective the stores will be in providing a
satisfactory service level. The larger the number of spare
parts in inventory that a company holds, the higher its
safety stock will be and the higher the inventory valua-
tion (in dollars). When a spare part drops to the reorder
point, an order should be placed to restock the item. The
reorder point is equal to the desired minimum quantity
on hand plus the safety stock. The safety stock is the
60
anticipated usage from the time the order is placed until

the time the order is received. The calculation for safety
stock, reorder point and reorder quantity is important
for maintaining the proper service level for spare parts.
A service level for the storeroom is basically the per-
centage of time when a spare part is required and when
it is actually on hand. A 95 to 97 percent service level
is considered necessary to support good maintenance
planning and scheduling. If the service level is below 95
percent, then there will typically be large productivity
losses due to spare parts being out of stock. If the ser-
vice level is above 97 percent, then the holding cost for
Mro
the inventory is typically excessive. Each company will
have variables, such as supplier relationships, that will
have some minor impact on the service level percent-
ages. However, the 95 to 97 percent is considered a best
practice target.
So the two general rules are:
1. The larger the safety stock, the lower the risk of stock out
and the higher the cost of holding inventory.
2. The smaller the safety stock, the higher the risk of stock out
and the higher the cost of purchasing.
61
In addition to most routine spare parts, MRO spares

management is also responsible for critical spares. Many
of these critical spares are assemblies, subassemblies, or
major components. These critical spares also may be
rebuildable units that need additional levels of tracking,
such as if the spare is ready to use or is in a shop being
rebuilt. These types of spares will typically need larger
storage areas with support equipment for moving critical
spares in and out of storage. How these units are stored
is extremely important since they can be easily damaged
while stored. For example, rotating equipment stored
without being properly supported can quickly damage
bearings supporting an armature or rotor. It is essential
that each critical spare is stored properly to prevent these
types of costly damage. It is unlikely that critical spares
are going to be stored in the same location as routine
spares. This is why it is essential that these larger stor-
age areas are properly cataloged, secured and monitored
to ensure that critical spares are properly tracked and
maintained.
A computerized MRO tracking system is often part
of a computerized maintenance management system
(CMMS). The tracking system should contain key infor-
mation, such as:
62
• Part number;
• Detailed part description;
• Part location, specifically aisle, bin, shelf location;
• Type or class of part;
• Manufacturer;
• Vendor;
• On-hand quantity, reorder point, max-min level, etc.
While some computerized systems contain extensive

amounts of detail, any system that properly maintains
the inventory tool point that supports proper inventory
practices for good maintenance planning and scheduling
Mro
will be sufficient.
MRO Spares Management Process Flow

Once the basics of MRO spares management is in place,
the next step is to develop proper process flows. Process
flows detail how the MRO spares should function. These
process flows should be developed, presented to man-
agement and agreed upon as the way the MRO spares
business should be operated. Some of the process flows
include:
• Requesting spare parts;

• Issuing spare parts;
63
• Replenishing spare parts;

• Replenishing free issue parts;
• Rebuildable spares;
• Spare parts receiving processes;
• Inventory adjustments;
• Inventory reconciliation.
All of the MRO spares process flows must be clearly

understood by the organization if MRO spare parts
management is to be successful.
Measuring the Success of MRO Spare

Parts Management
The success of MRO spare parts management can be
measured using many different key performance indica-
tors (KPI). However, three of the basic key performance
indicators are:
1. Service level,
2. Inventory valuation,
3. Annual reconciliation.
The service level is important since it measures the

percent of time spare parts are available when required.
The benchmark for this indicator is 95 to 97 percent.
64
This indicator is balanced by the inventory valuation,

which is the total dollar value of all spare parts in stock.
If the service level is too high, then the inventory val-
uation will be trending high. If the service level is too
low, then the inventory valuation also will be trending
low. The overall management controls for the MRO
spare parts processes is balanced by annual reconcilia-
tion. Annual reconciliation is the dollar value of all the
spare parts that have been lost by unrecorded trans-
actions for the year. If this dollar value is high, then
the MRO spare parts processes are not working. If this
dollar value is low, then the overall processes are work-
Mro
ing. If the three KPIs are balanced, it should give any
organization assurance that it is properly managing its
MRO spare parts.

Should Know
• MRO spares makes up 40 to 60 percent of all main-
tenance costs.
• The MRO spares management has a significant
impact on maintenance productivity.
• The MRO spares locations should be configured to
make maintenance acquisition of spares convenient.
65
• The MRO spares management should balance staffing

levels versus annual inventory reconciliation losses.
• The MRO spares management function should try to
achieve a 95 to 97 percent service level to the mainte-
nance organization.
Summary
MRO spares management is an important part of any
work execution management system. Since MRO spare
parts may make up 40 to 60 percent of a maintenance
budget, it is essential that the MRO controls focus on
minimizing spare parts costs without having a negative
impact on the service level. An efficient and effective
MRO spares organization is a key to ensuring this can
be achieved. In addition, having the proper MRO spares
work processes, monitored by the appropriate KPI’s, will
insure the inventory costs are kept at the proper level,
while providing the maintenance organization with the
required level of service.
66
De
defect
elimination
defect elimination
Introduction
What is a defect? Defects are anything that creates
waste, erodes value, reduces production, compromises
health, poses safety risks, or negatively impacts the
environment.
What is defect elimination? Defect elimination is
about eliminating the things that are creating the defects.
There are five sources of defects:
1. Raw Material and Process Inputs

Low quality raw material, highly contaminated, not
meeting quality specifications, highly corrosive, lack
of hardness or material defects
2. Operational Discipline
De
Overspeed, underspeed, overload, missing operator
procedures, functions overridden, failure to report
early indications of malfunction
3. Maintenance Workmanship
Missing work specifications, low skills, not using the
right tools properly, rushed work, wrong work type
69
4. Maintenance Material and Storage

Low quality replacement parts and components,
poor storage, counterfeit material, expired material,
water ingress, contamination, poor distribution and
handling
5. Design, Build, Install
Not fit for purpose, not built to standard, not accep-
tance tested, not installed properly, poor access to
maintain, poorly designed

Defect – A condition that causes deviation from design
or expected performance and leads to failure; A fault;
Can be hidden and not become apparent until they cause
a failure.
Downtime – Amount of time when assets/machines in
a plant or facility are not producing because of failure,
down for maintenance, or other reasons
Elimination – To completely remove or get rid of
something
Planned Work – Work that has gone through a formal
planning process to identify labor, materials, tools safety
requirements, etc., to perform that work effectively; This
70
defect elimination
information is assembled into a job plan package and

communicated to craft workers prior to start of work
Reactive Work – Maintenance activities that occur with
little or no notice; These activities interrupt the weekly
maintenance schedule and cost two to four times as
much as when they can be planned and scheduled
Reliability – The probability that an asset, item, or
system will perform its required functions satisfactorily
under specific conditions within a certain time period
The 1% solution – 1 out of 100 “fix it” work orders as
“don’t just fix it, improve it” work orders
Total productive maintenance (TPM) – A mainte-
nance strategy that originated in Japan and emphasizes
operations and maintenance cooperation; Goals include
De
zero defects, zero accidents, zero breakdowns and an
effective workplace design to reduce overall operations
and maintenance costs
Why Do You Need Defect Elimination?

In most reliability improvement programs, small teams
of reliability specialists are typically focused on address-
ing the 20 percent of assets that are the “bad actors”
where 80 percent of the reliability risk exists.
71
While this is a value-added function, it is not enough

to stem the pace of defects entering into the system
through careless work habits.
Successful high reliability organizations engage and
empower a cross-functional frontline workforce in
self-directed, action-oriented defect elimination activities
to create the dual benefits of reducing the defects that
cause many of the frequent failures and creating a culture
of reliability leadership at all levels of the organization.
Let’s take a closer look.
Understanding Failure
The basic difference between the failure patterns of com-
plex and simple items has important implications for
maintenance.
The reason for doing time directed
maintenance tasks
Single piece and simple items frequently demonstrate
a direct relationship between reliability and age. This
is particularly true where factors, such as metal fatigue
or mechanical wear, are present or where the items are
designed as consumables (e.g., short or predictable life
spans).
72
FAILURE PATTERNS
Random failures account for 77-92% of total failures and age related failure characteristics for the remaining 8-23%.
BATHTUB WEAR OUT FATIGUE
Probability of Failure
AGE RELATED
Time Time Time
RANDOM INFANT MORTALITY

%
Failure Pattern Percentage Sources: RCM
by Nowlan and Heap, US Navy, Bromberg
RANDOM
Time Time Time
Reprinted with permission from NetexpressUSA Inc. d/b/a Reliabilityweb.com. Copyright © 2016. All rights reserved. No part of this graphic may be reproduced or transmitted in any form or by any means without the prior express
written consent of NetexpressUSA Inc., Reliability® and Reliabilityweb.com® are trademarks and registered trademarks of NetexpressUSA Inc. in the U.S. and several other countries.
Figure 1: Failure patterns (Source: Reliabilityweb.com)
defect elimination
73
De
In these cases, an age limit based on operating time

or stress cycles may be effective in improving the overall
reliability of the complex item of which they are a part.
The reason for doing condition directed tasks

while focusing on defect elimination
Complex items frequently demonstrate some infant
mortality, after which their failure probability increases
gradually or remains constant and a marked wear out
age is not common.
In many cases, a scheduled overhaul increases the
overall failure rate by introducing a high infant mortal-
ity rate into an otherwise stable system.
The failure characteristics shown in Figure 1 were first
noted in the report titled, Reliability-Centered Main-
tenance by F. Stanley Nowlan and Howard F. Heap.
Follow-on studies in Sweden in 1973 and by the U.S.
Navy in 1983 produced similar results. In these three
studies, random failures accounted for 77 to 92 percent of
the total failures and age related failure characteristics for
the remaining eight to 23 percent.
Aging assets only cause a small percentage of failure.
Estimates state that approximately 4 percent of defects
become failures over long periods of time (i.e. 20-50
74
defect elimination
years). These defects are generated even if the assets are

not operated at all.
Basic wear and tear is responsible for approximately
12 percent of total failures.
The remainder of the failures are random in pattern,
in other words, they are not related to time, age, or use.
Some estimates correlate the remaining 84 percent
of random failures are due to careless work habits. That
is right – careless work habits are introducing defects
that eventually grow into failure causes faster than your
inspection and restoration programs can prevent or
detect them.
Careless work habits, a concept developed by Win-
ston Ledet, author of, Don’t Just Fix it, Improve It!,
simply means not providing the care that assets need
to run perfectly.
De
Careless work habits ARE NOT the same as working
in a malicious or irresponsible way. They are the every-
day, small actions that are mostly preventable, however,
because they are not distinguished or acknowledged,
they remain covered by a veil of invisibility. You cannot
improve what you do not acknowledge or cannot dis-
tinguish. In addition, the amount of maintenance and
inspection it would take to overcome careless work
75
habits would not be sensible from a resource or cost

perspective.
5 Primary Sources of Defects

Defects are being introduced through five primary
sources:
• Raw materials and process inputs;

• Operational discipline;
• Maintenance workmanship;
• Maintenance material and storage;
• Design, build and installation.
A benchmarking study of 1,000 work orders con-

ducted by Winston Ledet revealed early insights into
why so much work was unplannable due to careless work
habits that cause breakdowns.
The first source of defects was the raw materials work-
ers processed through their equipment that ate away at
their equipment for 21 percent of the defects. Next, how
they operated their equipment caused 29 percent of the
defects. The workmanship of the maintenance people
caused 21 percent of the defects. The maintenance mate-
rial used in the repair of equipment caused eight percent
of the defects. (Ledet states that percentage might be
76
Uptime® De
defect
TM
elimination
Elements SOURCES OF DEFECTS
CERTIFIED RELIABILITY LEADERS™ ENGAGE ACTION-ORIENTED, CROSS-FUNCTIONAL TEAMS TO ELIMINATE DEFECTS AND CREATE A CULTURE OF RELIABILITY®
3 RULES OF DEFECT ELIMINATION: WHAT IS A DEFECT? As it pertains to the world of business,

 Everyone should participate in at least 2 defect elimination a defect is anything that deviates from perfection and leads
projects per year. to customer dissatisfaction. Defects are anything that creates
waste, erodes value, reduces production, compromises health,
 Small cross-functional teams take action together to
eliminate defects. PRIMARY
5 poses safety risks or negatively impacts the environment.
WHAT IS ELIMINATION? To completely remove or get rid of
 Defect elimination wins will be recorded, reported on SOURCES
(something).
and celebrated.
RAW MATERIAL MAINTENANCE

OPERATIONAL MAINTENANCE DESIGN, BUILD,
AND PROCESS MATERIAL AND
DISCIPLINE WORKMANSHIP INSTALL
INPUTS STORAGE
Low quality raw material, highly Over-speed, under-speed, over- Missing work specifications, Low quality replacement parts Not fit for purpose, not built
contaminated, not meeting quality load, missing operator procedures, low skills, not using the right and components, poor storage, to standard, not acceptance
specifications, highly corrosive, functions overridden, failure to report tools properly, rushed work, counterfeit material, expired material, tested, not installed properly,
hardness or material defects early indications of malfunction wrong work type water ingress, contamination, poor poor access to maintain,
distribution and handling poorly designed
A Hero’s Journey guide to building a Level 5

THE 1% SOLUTION: Attribution: The concepts of Defect Elimination,
A Hero’s Journey Guide to Organizational Change leadership process for organizational change
• Learn how to create a Level 5 leadership process
• Learn strategies & tools for organizational evolution • Learn how defects affect bottom line results
• Learn how defects affect bottom line results
• Learn how to use the Hero’s Journey to build a learning organization
• Learn how to use the Hero’s Journey to build a learning organization
• And much, much more!
Don’t Just Fix It, Improve It
• And much, much more! the 1% Solution and the 5 Sources of Defects were
James Emery continues his Heroic Change journey in this second installment of the Heroic
James Emery is struggling with balancing his various roles as husband, father, and plant manager for Modern Products Change series. Due to his staggering success in improving the Modern Products Manufac-
Manufacturing. When an accident occurs at the plant, leaving people seriously injured, James feels responsible. He is turing Atlanta site, James has recently been promoted to Reliability Champion at its corpo-
faced with his own inner demons as the incident brings back memories of a devastating accident that haunts his past. rate offices. James has specifically been tasked with improving each of the Modern Products
Manufacturing sites. Throughout the journey, James faces site managers who resent his
The accident is the impetus to drastic changes in James’ personal life and career. He embarks on a difficult journey
of Heroic Change, likening the journey to the Holmes poem he admires in which the chambered nautilus, in its silent
interference in managing their own sites, site managers who appreciate the help but lack
the skills of leadership, and other obstacles that threaten to derail his hopes of a successful
ISBN 978-0-9825-1631-7 originally developed, practiced, shared and taught
toil as the spiral grows, leaves the past for the new. company-wide change effort in which his own career success is depending upon. James faces
“1 out of 100 “fix-it” work orders should be a
By Winston P. Ledet, Winston J. Ledet & Sherri M. Abshire

James faces a long road of mistakes and missteps while facing opposition from his subordinates and pressure from conflicting emotions, seemingly insurmountable obstacles, and the impossible challenges of
his superiors. In his relentless pursuit to create lasting change, James gathers allies by building a shadow network of balancing family and work, managers versus leaders, and profitability versus safety in both
employees who support his plan for change. James fights to gain respect for his out-of-the-box thinking, while trying his personal and professional journey. Will the Atlanta site continue to improve and sustain
By Winston P. Ledet, Michelle Ledet Henley & Sherri M. Abshire

to hold his family together as he spends long hours at work. More importantly, he fights to create a safe place for the change? Or will Atlanta regress while James’ attention is focused on the other sites? Will
employees to work while satisfying his superiors with improved performance. James be successful in his company-wide change effort? All of these questions and more will
by Winston Ledet. Reliabilityweb.com and the entire
be revealed in this heartfelt journey to discovering how Level 5 Leadership at Work can guide
James’ struggle is not unlike the mysterious life and death of the nautilus. He uses the nautilus, as well as a shield, as sym-
an entire organization into truly lasting Heroic Change.
bols to provide him with inspiration for his own life and spiritual growth as he travels the path to lasting Heroic Change.
Level 5 Leadership At Work Book 2 of the Heroic Change Series

Don’t Just Fix It, Improve It! Book 1 of the Heroic Change Series
by Winston P. Ledet, Michelle Ledet Henley & Sherri M. Abshire
Level 5 Leadership at Work industrial world owe Mr. Ledet an eternal debt
by Winston P. Ledet, Winston J. Ledet & Sherri M. Abshire
of gratitude for providing one of the true keys to

ISBN 978-0-9838741-5-7
“don’t just fix-it, improve it” work order.”
By Winston P. Ledet, Winston J. Ledet & Sherri M. Abshire By Winston P. Ledet, Michelle Ledet Henley & Sherri M. Abshire
Winston Ledet, Creator, The Manufacturing Game®, TMG Frontline Solutions LLC creating a reliability culture.
Reprinted with permission from NetexpressUSA Inc. d/b/a Reliabilityweb.com. Copyright © 2016. All rights reserved. No part of this graphic may be reproduced or transmitted in any form or by any means without the prior express written consent of
Figure 2: Sources of defects (Source: Reliabilityweb.com) NetexpressUSA Inc. Uptime®, Reliability®, Certified Reliability Leader™, Reliabilityweb.com®, A Culture of Reliability® and Uptime® Elements™ are trademarks and registered trademarks of NetexpressUSA Inc. in the U.S. and several other countries.
defect elimination
77
De
a little low since it was the procurement people who

collected this data.) And finally, design was the source
of 21 percent of the defects. The point Ledet raises is
that everyone in the organization adds some defects.
Reducing the rate of defect generation is what is meant
by the term defect elimination.
An organization’s response to defects is determined by
its operating domain or maturity level. Table 1 illustrates
the four operating domains described in the Uptime
Elements Reliability Framework and Asset Manage-
ment System.
According to Ledet, there are three potential modes
of action that an organization can take when dealing
with defects:
1. React to the difficulties it faces without growing

capability;
2. Plan, seeking to impose its will on anticipated future
circumstances;
3. Choose to create a culturally based system of pur-
poseful action that embeds new ways of working into
the everyday actions of workers.
It is important to recognize what kinds of organiza-

tional behaviors are dominant so they can be stabilized
78
Table 1: Four operating domains
Domain Reactive Planned Precision World Class
Behavior Responsive Planned Work Organization Learning
Traits Discipline Organization
Reliability Fix it after it fails Fix it before it Improve it to Design out defect
fails reduce failure flow and failure
effects and modes
consequences
Defect Defect Activities Some Team is

Elimination elimination directed by empowerment to empowered to
through formal management stem the flow of prioritize defect
work request – low level defects elimination targets
low feedback and report results
Feedback The equipment Anticipation of Elimination of Defects and

Loops tells you what to failure tells you defects and failures designed
work on what to work failures tell you out of new assets
on what to work on based on failure
knowledge
defect elimination
79
De
and a plan to progress can be created. Traditional, com-

monly accepted wisdom for most organizations whose
behaviors could be described as reactive, would see them
working to progress to the next domain: planned. The
Uptime Elements approach suggests that the planned
domain is still a reactive domain because focus has not
been placed on removing the defects that cause 40 per-
cent of the failures and limit the planned maintenance
effectiveness. Remember, Ledet states that you cannot
plan breakdowns.
There are two typical paths to choose at this point.

1. Organizations can place enormous effort into moving
to the planned domain, a move that could move you
further away from reliability, regardless of how effec-
tive your small team of reliability experts accomplish;
2. Skip the planned domain altogether and put all
efforts into moving to the precision domain where
defect elimination is the focus, while the small team
of reliability specialists continues to focus on the
larger, technical reliability risks and reliability engi-
neering for maintenance solutions. This approach is a
critical strategy in many highly reliable organizations.
80
defect elimination
CHOICE 2
CHOICE 1 Trying To Plan
Unplannable Work
Eliminate Unplannable
Moves You Away From
Work Moves You
A Reliability Culture
Toward Sustainable
Reliability Culture
Uptime Elements is used by many organizations to

create that culturally based system that empowers the
frontline workforce with new ways of working that focus
on removing those defects from the system that would
eventually result in asset failures.
Connecting to the Aim and Organizational

Objectives
“How do I map my job to the delivery of the company’s
aim and organizational objectives?”
De
Every employee who cannot answer that question is
unwittingly contributing to the carelessness category of
defects. You need everyone in the workforce to develop
careful work habits.
Careful work habits can be defined as noticing defects
when they are very small and removing them before they
generate other defects or cause failure events.
81
Creating a Defect Elimination Culture

With the Uptime Elements Approach
Three factors are critical for success in eliminating
defects.
A. Widespread, cross-functional, frontline workforce
engagement
Language
Provides
alignment to
"what"
Why
Alignment to
Reliability?
Aim
Stakeholder
(destination)
concerns
Empowered
and engaged
frontline
reliability
culture
Figure 3: Connecting organizational objectives and aim

at the employee level
82
defect elimination
• All employees, including core contractors, should be

actively engaged in the defect elimination process.
Studies show that defects can be introduced from a
variety of sources, including operations, workman-
ship, parts quality, raw materials and design. This
makes it essential for personnel from all areas to
participate in the effort to grasp how they are creat-
ing defects in their everyday work and take action to
stop the creation of those defects. The Uptime Ele-
ments approach states that 80 percent of the frontline
workforce should be involved in at least two defect
elimination projects per year.
B. Action, not recommendations

• It is not enough to understand the impact of defects
and develop the ability to identify them. It is essen-
De
tial that identified defects be removed in a way that
prevents their return, going beyond solving today’s
problem by preventing tomorrow’s as well.
Targeting defect elimination actions on frequently
failing equipment provides a quick return on invest-
ment, as well as the repetition necessary to create
new, proactive defect elimination habits that ensure
sustainability.
83
During defect elimination identification, candi-

dates for root cause analysis (RCA) or engineering
management of change (MOC) also will be discovered
and should be staged for follow-up by the reliability
engineering for maintenance specialists team. It is
important to set up your work management system
to track, record and report defect elimination as a work
type or activity, as well as create a holding area for
RCA and MOC candidates.
To stress the main point here: Successful defect
elimination is focused on small, cross-functional
teams who take action together and create improve-
ments in less than 90 days, with little or no capital
money.
C. Follow-up
• With many cross-functional, defect elimination action
teams working simultaneously, effective coordination
is imperative. A system must be implemented to sup-
port the coordination of activities and to celebrate
successes. An effective follow-up system walks the
fine line between managing the chaos and becoming
a choke that slows progress and curbs the enthusiasm
of the frontline workforce.
84
defect elimination
Celebrations and reporting success are keys to

spreading the knowledge and engaging more people
in defect elimination.
The optimized pace of defect elimination work is
1 out of 100 fix it work orders as a “don’t just fix it,
improve it” work order. More than one percent over-
whelms the work execution management capability
and defeats the purpose.
How Does Defect Elimination

Work Best?
People follow the path of least resistance. Therefore,
make it easy for people to identify and eliminate defects
at the lowest levels of the organization by minimizing
paperwork, making resources available, rewarding defect
elimination, celebrating successes and not focusing on
De
defect elimination efforts that are unsuccessful. Defect
elimination reduces equipment downtime and costs
come into line, making it unnecessary to focus on cost
cutting.
Launching defect elimination action teams for one
percent of the fix it work orders performed reduces total
defects by 54 percent in three years and 73 percent in
six years. It also embeds reliability leadership habits into
85
the work culture as a keystone habit. Combining the

improvement work with normal fix it work prevents
extra shutdowns to accomplish the improvements. Using
the work management system to schedule and record
defect elimination helps to target frequently failing
equipment to reduce the distraction, thus allowing the
organization to focus on higher value work.
The creation of keystone habits will increase safety
and improve reliability, thereby increasing company
profits. For companies to be successful at creating a new
keystone habit, three things are required:
1. A skillful set of workers who are dedicated to per-

forming their jobs correctly;
2. An energetic group of leaders who are willing to
implement a new keystone habit, thereby providing
the workforce with the tools and the freedom to use
their knowledge and expertise to make decisions;
3. A “hall of fame” strong manager with recognized
integrity and authenticity who is willing to invest
the capital to create a culture of reliability leadership
and industry leading performance.
86
defect elimination
The Life of a Defect

Careful work habits can be defined as noticing defects
when they are very small and removing them before they
generate other defects or cause failure events.
This is the essence of total productive maintenance as
practiced in Japan. Workers there tighten the loose nut
instead of waiting for the equipment to break and then
fix it. Operators in these Japanese plants carry wrenches
and are empowered to tighten loose nuts and fasteners.
How Defects Affect Safety

If equipment was built, operated and maintained per-
fectly, there would be very few safety problems. Failures
inevitably direct energy into places that cannot bear the
amount or intensity of the energy and, therefore, cause
De
collateral damage. This misdirected energy is the source
of hazards to people and equipment.
Personal safety programs create capacity in the orga-
nization to cope with hazards when they happen, while
process safety management programs eliminate the
defects that are the root causes of the failures and hazards.
87

Should Know
Defects are anything that creates waste, erodes value,
reduces production, compromises health, poses safety
risks, or negatively impacts the environment.
Defects are being introduced through five primary
sources:
• Raw materials and process inputs;
• Operational discipline;
• Maintenance workmanship;
• Maintenance material and storage;
• Design, build and installation.
Some estimates state that 84 percent of failures are

due to careless work habits. Yes, careless work habits
are introducing defects that eventually grow into failure
causes faster than your inspection and restoration pro-
grams can prevent or detect them.
Defect elimination is focused on eliminating the
work that originates with defects that eventually cause
a failure.
For defect elimination to be successful, a cross-func-
tional, frontline workforce must be granted authority to
take actions to eliminate defects.
88
defect elimination
Think small when it comes to candidates for defect

elimination. Put larger, more complex failures in for root
cause analysis or engineering management of change.
Summary
To be successful in creating sustainable results from your
efforts, one percent of work orders must be aimed at
defect elimination. Statistics show that launching defect
elimination teams for one percent of work orders per-
formed can reduce total defects by 54 percent in three
years and 73 percent in six years. This goal also embeds
defect elimination and reliability leadership into the
work culture, which translates into the triple bottom
line of people, planet and profits. While one percent
may seem low to some, it is the sweet spot for creating
significant results and supporting a continuous reliability
De
leadership culture.
89
References
Ledet, Winston P.; Ledet, Winston J.; Abshire,
Sherri M. Don’t Just Fix It, Improve It! Fort Myers:
Ledet, Winston P.; Henley Ledet, Michelle; Abshire,
Sherri M. Level 5 Leadership at Work. Fort Myers:
Special thank you to Winston Ledet, June Ledet, Michelle
Ledet Henley and The Manufacturing Game, TMG Frontline
Solutions LLC, for their contribution and guidance.
90
Cmms
computerized
maintenance
management
system
Introduction
A computerized maintenance management system
(CMMS) is a software system designed to computerize
most maintenance processes. The work order is the cen-
tral hub for any CMMS. It is typically written against a
piece of equipment or a building, floor, or room locator
usually in a facility. When the work order is completed,
it is filed in the history for that particular piece of equip-
ment or location in a building and is then available for
historical analysis.
As the work order is planned, scheduled and exe-
cuted, other parts of the CMMS will post data to the
work order. For example, as labor costs are charged to a
work order, they are recorded in the labor module and
electronically posted to the work order. Also, any spare
parts that are used to complete the work are recorded in
the inventory module and electronically posted to the
work order. The same would apply for contractors, rental
equipment, spare part rebuilds, and other miscellaneous
Cmms
costs and information. Even preventive and predictive
maintenance tasks will be generated as a work order and
completed and posted to the appropriate history.
93

Computerized Maintenance Management System
(CMMS) – A software system that keeps records and
tracks all maintenances activities, (e.g., maintenance
work orders, PM schedules, PM masters, material parts,
work plans and asset history).
Computerized Maintenance Management System
(CMMS) Usage – The utilization of a CMMS; many
companies only achieve a 50 percent utilization rate, pre-
venting a realization of the full return on the investment
in the software.
Inventory – The value (quantity) of goods or material on
hand. Inventory can be classified into four categories: 1)
Finished goods, 2) Work-in-Process, 3) Raw material,
4) Maintenance and operating items, such as spare parts
and operating supplies, including consumables.
Inventory and Procurement – A function within an
organization responsible for procuring and storing spare
parts, equipment and, in some cases, raw materials. This
function is required to support the maintenance function
if maintenance activities are to be carried out effectively
and efficiently.
94
Maintenance Performance – Comparing the results

of the maintenance function to the goals and objectives
set for it.
Performance Measurement – A quantifiable indicator
used to assess how well an organization or business is
achieving its desired objectives.
Performance Measures – Indicators used to measure
the performance of a function within a company.
Planner – A dedicated role with the single function of
planning work tasks and activities.
Planning and Scheduling – The process of defining
what is needed to perform maintenance work and how
it should be performed (planning) and determining
which jobs get worked on, when and by whom based
on their priority, resources available and asset availability
(scheduling).
Predictive Maintenance (PdM) – An advanced mainte-
nance technique focused on using technology to determine Cmms
the condition of assets and then taking appropriate actions
to avoid failures. Synonymous with Condition-Based
Maintenance and On-Condition Maintenance.
Preventive Maintenance (PM) – A maintenance strat-
egy based on inspection, component replacement and
95
overhauling at a fixed interval, regardless of its condition

at the time. Usually, scheduled inspections are performed
Purchasing – The functional department responsible
for securing the raw materials and spare parts necessary
for the company to produce its product or provide its
service. Synonymous with Procurement.
Stores – The function within an organization/plant
responsible for maintaining the inventory of spare parts
and tools.
Stores and Procurement – The function in a company
responsible for ordering, purchasing and maintaining
spare parts. Synonymous with Inventory and Purchasing.
Supervisor – A first line manager usually responsible
for a group of eight to 12 employees in a traditional
organization.
Work Order – A paper or electronic document specify-
ing the work needed on an asset.
Purpose of a CMMS
There are four main purposes for companies to select,
implement and utilize a CMMS.
96
1. Enforcing/enabling maintenance processes. The

CMMS provides a structure for enforcing mainte-
nance disciplines. Every CMMS, whether purchased
from a vendor or developed in-house, has its own
philosophy of how maintenance should operate.
This philosophy governs how and what information
is collected on a work order, stores and purchas-
ing procedures, reports and many other areas. The
structure and philosophy of the CMMS will also
determine how an organization manages mainte-
nance. Selecting the right CMMS, therefore, is very
important.
At this point, a question similar to “which came
first, the chicken or the egg?” comes up for the CMMS
selection team. In this case, however, the question is:
“Does a good manual system or paperwork system
need to be in place before computerizing or does
computerizing provide a guide to good maintenance
processes?” Many consulting firms will answer “yes” Cmms
to the first part and then spend months helping a
company develop the paperwork systems for manag-
ing maintenance. When the CMMS is implemented,
many of these paperwork processes that the manual
system just put into place must be changed in order
97
to use the computerized system. If you are going to

select a CMMS first, then it should be implemented
and utilized to enforce the processes that it requires
to be successful. This can save considerable time and
money. If the right system is selected initially, then
developing a manual system first is a waste of time.
2. Facilitating record keeping. The CMMS should

also provide a faster, more accurate record keeping
methodology. Paperwork systems generally have
only one point for data entry, whereas a CMMS may
have many points, allowing for faster record keeping.
Because the CMMS is usually definitive on the data
it requires, the data going into the system must be
checked for validity. This check ensures the data is
more accurate and complete than what is found in
a paperwork system. The accuracy and timeliness of
the data provide managers with better information
on which to base their decisions.
3. Improving record keeping. The CMMS should
also have the ability to provide snapshot or summary
reports that allow a manager to see data in a concise,
meaningful form. These reports eliminate the need to
browse through pages of data trying to find a trend
98
or even a particular fact. The reporting function is

a variable in many CMMSs. Good analysis report-
ing is not available in some commercially available
CMMS packages since not all of them provide analy-
sis or exception type reports. Some only provide lists,
impairing the usefulness of the system.
4. Integration with other corporate systems. The
integration of the CMMS data with other corporate
data is another important reason for implementing
a CMMS. In many companies with a stand-alone
CMMS, the information from the CMMS must
be taken to another system and manually inputted
or uploaded to another corporate system, such as
accounting, or in some cases, purchasing. The use of
a fully integrated system eliminates this need and
also improves data accuracy since the opportunity
to make a mistake while manipulating the data is
removed.
Cmms
Steps to CMMS Success
The three phases in any successful CMMS project are
selection, implementation and utilization.
99
CMMS Selection
When beginning the CMMS selection process, it is
important to clearly understand why the company is
selecting or changing its existing CMMS. It could be
that the manual system is just overwhelmed or the cur-
rent CMMS is not meeting organizational or functional
demands. As a first step, the organization should begin
identifying what they need the CMMS to do. This will
involve detailing maintenance processes to ensure the
CMMS will properly support them. In addition, there
may be desired maintenance processes that the orga-
nization is not currently executing, so these will need
to be specified as part of the CMMS needs. A list of
system desired features also needs to be developed. A
third list would include functions that are wanted, but
not demanded.
These three lists will need to be developed into a
CMMS requirements specification. It should be kept in
mind that the requirements specification can sometimes
grow to an unmanageable level. As the requirements
specification is being developed, it should be noted that
the requirements need to be balanced with the price.
Typically, the larger the CMMS requirements specifi-
cation, the larger the price of the CMMS system.
100
Once the requirements specification is completed,

it is necessary to contact vendors of CMMS products.
The Internet or published articles or books can be used
to locate vendors. Once vendors have been identi-
fied, it is necessary to provide them with copies of the
requirements specification. This will allow the vendors
to determine whether or not their products meet the
specification. When at least three to five vendors respond
positively to the requirements specification, scheduling
of demonstrations and product evaluations can begin.
The vendors should conduct demonstrations with the
CMMS selection team. In addition, it is beneficial to
have the selection team participate in a conference room
pilot where they have an opportunity to work with the
software and a limited database.
Once it is determined that there is one or more
products that meet the specification, it’s time to make a
single selection and begin negotiating with the vendor.
Negotiations with the vendor will include pricing of Cmms
the software, training, any required interfaces and any
needed consulting. Once a satisfactory price point has
been determined, the purchase is finalized and schedul-
ing of system implementation begins.
101
CMMS Implementation
Whether a new CMMS has been purchased or an exist-
ing one reimplemented, CMMS implementation all
begins with the master data. The master data is all data
required for the CMMS to operate properly. In most
systems, it includes, but is not limited to, equipment and/
or asset information, such as the equipment number, the
preventive maintenance inspections, spare part infor-
mation, purchasing information, personnel information
and existing equipment/asset history data. While this
appears to be a simple list, companies may have thou-
sands of pieces of equipment, thousands of preventive
maintenance inspections, thousands of spare parts, etc.
This is one area that is usually underestimated when it
comes to the effort during implementation. There lit-
erally may be man-years of effort into collecting and
loading the master data.
Once all the data has been collected, it is necessary to
provide resources to enter or update all the master data
in the CMMS. Without this level of effort, the CMMS
can never produce the results that it was designed to
deliver. Once all the data is loaded into the system, it
can be rolled out to the organization. In rolling it out,
it is important that all the roles and responsibilities are
102
determined for those that will be using the system. At a

minimum, this will include maintenance planners, main-
tenance supervisors and maintenance technicians. Each
individual utilizing the system needs to understand the
importance of performing their role and the impact it
has on data accuracy. This will involve extensive train-
ing for the planners and supervisors. If there is clerical
support for planners and supervisors, they need to be
appropriately trained as well.
At this point, the system can be turned on or “go
live.” This means it is ready to be utilized for managing
maintenance. A review is typically conducted to ensure
that all data is entered into the system correctly and all
individuals have been properly trained and are aware
of how they should interact with the system. After the
system has been in use for three to six months, it is nec-
essary to conduct an audit of how the system is being
utilized to ensure it is meeting its business goals. If there
are any shortfalls, which are usually centered on data Cmms
accuracy, the proper roles and responsibilities should be
investigated and corrections made. Once it is determined
the CMMS is being utilized correctly, annual system
reviews should be conducted to make sure the proper
level of use continues.
103
CMMS Utilization
CMMS utilization should be reviewed periodically to
ensure that all the original implementation goals and
objectives are still being achieved. This usually involves
auditing the master data and how the system is being
used by the maintenance organization. Auditing the
master data will highlight whether or not all the system
data is being inputted and processed correctly. Since the
system will not have changed since the implementation,
if there is a problem in this area, it is typically because
someone is not using the system correctly. If this is the
case, a review of organizational roles and responsibili-
ties is necessary. This is where most of the master data
problems will occur after an implementation. The review
should also examine whether the maintenance organi-
zation is still using the system correctly. Unfortunately
over time, many maintenance organizations begin to
look for shortcuts in using their system. This will usu-
ally compromise how the system is utilized. When a
system utilization audit is conducted, a major part of
this should be reevaluating the maintenance roles and
responsibilities. This will ensure the CMMS is properly
utilized and is delivering the proper business support.
104
Lessons Learned from Past

CMMS Projects
The lessons learned from past CMMS projects are
focused on three areas:
• Training – Proper training of users has been a problem

for CMMS projects for decades. The implementation
of a CMMS is like any other project. Right at the end,
projects run out of time and money. The last line item
where money could be saved is training. So rather
than allow end users the proper amount of training,
days of training are shortened to hours, or in some
cases, eliminated completely. This sub optimizes the
use of the system and prevents it from delivering any
business results. End user training is mandatory if the
CMMS is to be successful.
• User Involvement – User involvement should begin in

the selection process. End users of the product should
Cmms
be brought in when it is being determined what func-
tionality is required from the system. The same end
users should stay involved with the CMMS through
the selection and implementation processes. This cre-
ates the ownership necessary to make the CMMS
project successful. Without end user participation,
105
ownership is never established and employees never

buy-in to full system utilization.
• Ongoing Usage – Proper, ongoing usage of the

CMMS is determined by the proper roles and respon-
sibilities, and proper resources. If it is not clear who
should be using the system, how they are to use it
and when they are to use, the master data becomes
corrupt and there is no real value derived from the
information in the system. In some cases when the
system is implemented, extra resources are on hand.
However, when the implementation is finished, these
resources disappear and the remaining employees are
overloaded and will not use the system correctly. There
should be detailed analysis performed to make certain
proper resources are available to ensure ongoing usage
of the CMMS.

Should Know
• The work order is the key component of any CMMS.
• The key to selecting the correct CMMS for any
organization is to properly define the organization’s
business requirements.
106
• The key to implementing any CMMS is to insure the

end users have the proper amount of training based
on their job role.
• The keys to fully utilizing any CMMS is to insure the
master data is accurate and the organization contin-
ues to use the system based on the defined business
processes.
• Ongoing end-user training, particularly in the case of
organizational turnover is key to successful ongoing
utilization of a CMMS.
Summary
A CMMS is a valuable tool for ensuring good main-
tenance data is collected. The CMMS also can be used
to support or enforce good maintenance processes. The
CMMS can also help employees fulfill their assigned
roles and responsibilities in maintenance. The key is to
select the proper system, implement it correctly and then Cmms
provide the proper level of ongoing resources. If this
is done, then the CMMS will be able to support best
practices in maintenance management.
107
References
Wireman, Terry. Successfully Utilizing CMMS/EAM Systems,
Maintenance Strategy Series, Volume 4. Fort Myers:
108
Acknowledgment
The Uptime® Elements™ were originally created by Terrence
O’Hanlon, CEO and Publisher of Uptime® magazine and
Reliabilityweb.com®, in consultation and close cooperation
with Reliabilityweb.com co-founder Kelly Rigg O’Hanlon.
Early versions were reviewed by Erin Corin O’Hanlon and
Ian Jaymes O’Hanlon. The initial idea was inspired during a
parent-teacher meeting with science teacher Mark Summit
at Canterbury School in Fort Myers, Florida.
Development of this concept could not have happened
without the mentoring by true masters in the, reliability
and asset management communities, including Terry Wire-
man; Paul Barringer; Dr. Robert Abernathy; Jack Nicholas
Jr.; Anthony “Mac” Smith; Ron Moore; Bob DiStefano;
Steve Turner; Joel Levitt; Ramesh Gulati; Winston Ledet;
June Ledet; Michelle Ledet Henley; Heinz Bloch; Christer
Idhammar; Ralph Buscarello; Edmea Adell; Celso De Aze-
vedo; JohnWoodhouse; the entire AEDC/Jacobs/ATA team
led by Bart Jones; and many more people who have been kind
and generous in sharing their expertise.
Early stage evolution definition and development by
Steve Thomas, Ramesh Gulati, Jeff Smith, Grahame Fogel,
John Schultz and the Allied Reliability Group team, and PJ
Vlok proved invaluable to its current state. Early presentation
of these elements resulted in valuable feedback from mem-
109
Acknowledgment
bers of the Oklahoma Predictive Maintenance Users Group

(OPMUG), Fort Myers Institute of Technology (formerly
High Tech Central), and attendees of CBM-2013 Condi-
tion Monitoring Conference and other learning events held
at the Reliability Leadership Institute in Fort Myers, Florida.
The Uptime Elements revision team includes contribu-
tions from Sandra DiMatteo, Scotty McLean, Anne-Ma-
rie Walters, David Armstrong and Greg Bentley of Bentley
Systems, Derek Burley of Blue Sky Reliability, Jack Poley of
CMI, Allan Rienstra of SDT, Dan Ambre of Full Spectrum
Diagnostics, Jim Hall of The Ultrasound Institute, Ramesh
Gulati of Jacobs and Christo Roux of Outotec Oyj. A huge
effort was made by Rhys Davies, Paul Scott, Danielle Hum-
phries and Claire Gowson of eAsset Management on the
new Asset Management passports.
There was a very strong effort to move thinking around
reliability strategy development and the updated RCM Proj-
ect Managers’ Guide that came from Derek Burley, Sam Paske,
Nick Jize, Tim Allen, Doug Plucknette and John Fortin.
The entire Reliability Leadership Institute Community of
Practice drove the revisions with many lessons and special
contributions from Randy Rhine and Rylan Eades of Honda
NA, Eric Newhard, Medtronic, Rob Bishop and Waldemar
Rivera of BMS, and George Williams of B. Braun.
The Reliabilityweb.com and Uptime Magazine team led
by Jenny Brunson and including Jocelyn Brown, Melody
110
Acknowledgment
McNeill, Dave Reiber, Joel Levitt, Maura Abad and Heather

Clark, made further refinement.
The biggest contributions have come from the existing
Certified Reliability Leaders who helped up reach our initial
goal of 1,000 CRLs within the first 26 months. Your active
participation and your leadership by example has inspired us
to continue to refine Uptime Elements to engage, empower
and align would-be reliability leaders who can positively im-
pact their organizations, their communities and the world.
We hope you will join us in our new CRL-2020 goal of
10,000 Certified Reliability Leaders by the year 2020 and
one in outer space!
Associations, such as the Association of Asset Manage-
ment Professionals, the Association for Facilities Engineer-
ing, the Vibration Institute, the Operational Excellence So-
ciety, the American Society of Civil Engineers, MIMOSA,
Fiatech, The Asset Leadership Network, the National Prop-
erty Management Association, the American Society for
Testing and Materials and The American Society of Non-
destructive Testing, have also created a foundation for this
work through their efforts to create guidance, metrics and
an ever expanding body of knowledge around maintenance,
reliability and asset management practices.
111
CRL Body of Knowledge
The Association of Asset Management Professionals (AMP)
has developed an exam and certification based on the
Uptime Elements and it’s Reliability Leadership system. It
is designed to create leaders who focus on delivering value to
the triple bottom line of:
• Economic prosperity,
• Environmental sustainability,
• Social responsibility.
The body of knowledge that creates the foundation for the
exam and certification includes:
1. The Uptime® ElementsTM Passport series
2. The Journey by Stephen Thomas
3. Don’t Just Fix it, Improve It! by Winston P. Ledet,
Winston J. Ledet and Sherri M. Abshire
4. Uptime® ElementsTM Dictionary for the Reliability Leader
and Asset Manager by Ramesh Gulati
All books are available at

www.mro-zone.com and Amazon.com
NOTES
NOTES
NOTES
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NOTES
WEM
Uptime® Elements ™
Passport
E xecutio
k n

IN PREPARATION FOR
r
o
W
Part of the Certified Reliability Leader
Body of Knowledge WEM
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M anage me
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mro-spares management • defect elimination

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Work Execution Management

preventive maintenance • planning and scheduling

Pm Ps Odr Mro De Cmms

© 2017 Netexpress USA, Inc. d/b/a Reliabilityweb.com

This book, or any parts thereof, may not be reproduced,

For information: Reliabilityweb.com

Uptime®, Reliabilityweb.com® and Uptime® Elements™ are the trademarks or

planning and scheduling

operator driven reliability

Reliability Engineering Asset Condition Work Execution Leadership

Ca Rsd Aci Vib Fa Pm Ps Es Opx Sp Cr Samp

Cp Rcd Ab Ndt Lu De Cmms computerized

A Reliability Framework and Asset Management System™

reliabilityweb.com • maintenance.org • reliabilityleadership.com

Key Terms and Definitions

schedules, PM masters, material parts, work plans and

Preventive Maintenance Goals

reactive or breakdown work the maintenance organiza-

Types of Preventive Maintenance

• Good equipment inspections and services,

Studies have shown that up to 50 percent of all equip-

areas. If organizations focus on just these PM basics,

Steps to Developing a Preventive

development of the PM program should obtain all the

information is gathered, the PM requirements can be

addition, many current training programs are not effec-

Once the PM tasks have been detailed, the next step

mortality failures, random failures, abuse or misuse of

Key Performance Indicators for

• Preventive maintenance schedule compliance – Mea-

This should be calculated as a percentage. While

If a PM program is effective, the total amount of

What Every Reliability Leader

• Preventive maintenance forms the foundation of any

Maintenance material costs are also reduced by

• Better pricing from vendors due to forecasted

These cost savings can be substantial, further reducing

The Planning Process

and scheduling suffers and the effectiveness of planning

the criteria for being planned. In some cases, the work

• All required materials;

It is the maintenance planner’s job responsibility to

Once the plan is complete with all details, the

be effective. Examining a weekly schedule is the most

Consider the following schedule example:

Total to Schedule = Available - Deductions

Total to Schedule = 234 hours

If the planner schedules 234 hours of work from the

1. The planner gathers any uncompleted work that is

6. The planner continues to select work from the back-

10. The planner puts information about each work order

Based on the company, some variations and adjust-

multiple schedules are coordinated. Multiple crafts also

• Accurate craft requirements,

With effective planning programs, effective mainte-

Key Performance Indicators for

monitors the work distribution for an organization by

operations schedule. In organizations where schedule

What Every Reliability Leader

• Planned and scheduled work can be performed at a

a team effort. Successful team-based maintenance orga-

Key Terms and Definitions