Facilities Management Reliability PDF

SESSION NO.: R4.
39
Thursday, MARCH 18, 2010
ROOM NO.: 339
Successful Facilities Management Auditing & Benchmarking

Ralph W. W Pete Pete Peters
Founder-President-Coach The Maintenance Excellence Institute Raleigh and Oak Island NC www.PRIDE-in-Maintenance.com
Key Session Objectives

1. Review $s that The Scoreboard for Facilities
Management Excellence benchmarking process can enable
2. Review the strategy for Continuous Reliability

p ( (CRI). ) Improvement 3. Review the process to create The Reliability & Maintenance Excellence Index 4. Define What is PRIDE in Maintenance?
Terms:
Top Leader Maintenance Leader Craft Leader
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The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Different Types of Benchmarking

1. Benchmark: A point of reference for a
measurement. Surveying benchmarks are special-purpose "monuments", typically small concrete obelisks, approx. 3 feet tall and 1 foot at the base, set permanently into the earth.
2 Strategic Benchmarking: Improving 2. Impro ing

performance by examining successful approaches used by high high-performers. performers 9 Example The Scoreboard for Facilities Management Excellence
Different Types of Benchmarking (cont)

3. Global Benchmarking: Applies to the total maintenance process and overall best practices for the business of maintenance Example The Scoreboard for Facilities Management Excellence 4. Internal Benchmarking: Involves partners within same organization (multiple sites). Also benchmarking at shop level using The Reliable Maintenance Excellence Index
Benchmarking Your Maintenance Organization

The Scoreboard for Facilities Management Excellence
The Reliable Maintenance Excellence Index
We Will Review These Two Benchmarking Tools
Maintenance Around the World

REMEMBER: MAINTENANCE IS FOREVER!!
Fleet Operations Discrete Manufacturing Continuous Process Industries
Scope of Maintenance
Plus Many Pl M More Types of Maintenance

Healthcare Operations
Facility Management Operations
Public Utilities
Maintenance??
Burj Al Arab: A 7 Star Hotel
Russian Airport p Control TowerKamchatka Peninsular

Burj Khalifa
Burj Khalifa Tower formerly known as Burj Dubai prior to its inauguration, is a skyscraper in Dubai, UAE and is the tallest man made structure ever built, at 828 m (2,717 ft).
Todays Very Real Challenges

Challenge One: Maintain existing f ili i and facilities d equipment i in i safe f and d reliable conditions. Challenge g Two: Improve, p , enhance and then maintain existing physical assets , regulatory g y to achieve environmental, life safety/security standards & energy practices. best p
Todays Very Real Challenges

Challenge Three: Enhance, renovate and add to existing physical assets using capital funds and then maintain the additions. Challenge g Four: Commission new physical assets and assume increased p of work to maintain plus p more scope work from Challenges One, Two and Three as assets g get older, , older & older
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Face These Four Very Real Maintenance g With the Facts! Challenges
Add staff ??? Not unless you have these facts!
1. Know your Total Maintenance Requirements Requirements 2. Top Leaders also know your Total Maintenance Requirements q & know the facts 3. Top Leaders know the costs & risks of deferred maintenance. (DGWMC is about gambling & stats) 4. Document productivity of current resources Other Options???
9 Use more contractors? 9 Improve craft productivity? 9 Work smarter, not harder? Or Improve asset reliability? Increase Wrench Time Work smarter and harder?
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9 Eliminate a reactive strategy GO PRO-active!
Facing Todays Maintenance Challenges

The Bottom Line normally is this;
Assuming g growth g with little or no additions in staff
Real Maintenance Leaders

Must Discard the Status Status Quo Quo - Forget the Past! Must Improve the business of maintenance Must implement Best Practices such as; Effective planning, estimating and scheduling Improved p Preventive Maintenance/Predictive Maintenance (PM/PdM) etc/etc/etc Lead Maintenance Forward as a Business;
YOUR OWN PER$ONAL BUSINE$$

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What is Your Answer to This Question?
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Facing Todays Maintenance Challenges
Conduct Scoreboard for Facilities Management g Excellence Assessment
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Know Your Current State of Maintenance

The Reliability Pyramid shown on the next page illustrates the five stages of maintenance development development. Where are you?
Stage 1: Daily Maintenance & a desire to continuously improve &

not gamble with maintenance costs.
Stage g 5: Achieving g reliability y and maintenance excellence with the

goal of total operations success.
Get Stage 1 Right! Moving beyond Stage 1 will achieve significant

b fit Fi benefits. First t you must t know k where h you are! !
Define your current state of maintenance via The Scoreboard

for Facilities Management Excellence assessment process. process
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The Reliability Pyramid

STAGE 5
Operational Excellence
Assure alignment of financial operations, corporate leadership sales and marketing leadership, marketing, and customers
Total Operations Success
Equipt Overall Simplify/ Unit Effectiveness Standardize Concurrent Equipt Engrn. g Acqn. Life Cycle Reliability Cost Anal. Analysis
Reliability and Maintenance Excellence

Courtesy of Strategic Asset Management
STAGE 4
Engineered Reliability
Systematically eliminate sources of potential i l system failure f il
Reliability Focus
STAGE 3
Organizational Excellence
C eate t Create the ee environment o e t to maximize a e the staff contribution
Craft Flexibility Condition Monitoring Failure Prediction PdM / CMMS Integration TPM External Maintenance / versus Operator Operations Internal Performed Integration Benchmarks Maintenance
STAGE 2
Proactive Maintenance
Gain G i control t l of f equipment i t condition
Failure Mode Analysis
Proactive Maintenance
Craft Skills Enhancement
Equipment History
STAGE 1
Preventive Maintenance
Work Management Processes Planning and Scheduling Work Execution & Review
CMMS System MRO Materials Management
Daily Maintenance: Gain Work Initiation / control of the work Prioritization
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Introducing The Scoreboard g Excellence for Facilities Management

Other TMEI Scoreboards for Excellence Include:
Scoreboard for Maintenance Excellence (Manufacturing)
Scoreboard for Fleet Management Excellence Scoreboard for Healthcare Facilities Mgmt Excellence Scoreboard for Golf Course Maintenance Excellence
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200 200+ plus Scoreboard Assessments Scoreboard Assessments
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The Scoreboard for g Excellence Facilities Management Recognized as Todays Most Complete and Comprehensi e Assessment Tool Comprehensive
27 Best Practice categories & 300 evaluation items Defines your baseline as to where you are You could compare your baseline to other organizations i ti Comparing to others not important Its about what you do to move the ball Provides the path forward for reliability & maintenance i t excellence ll .
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The Scoreboard for g Excellence Facilities Management Proven as Todays Most Complete and Comprehensi e Assessment Tool. Comprehensive
Used by TMEI for over 300 + assessments & by over 4,000 4 000 worldwide organizations as an internal benchmarking tool Available at www.Pride-in-Maintenance.com www Pride in Maintenance com Free with purchase of Maintenance Benchmarking & Best Practices (MBBP) from McGraw-Hill &TMEI. (Chapter 7, page 122) MBBP is really 3 3-4 4 books in one as compared to small books by other authors . 20
CATEGORY
The Scoreboard for Facilities Management Excellence Category Descriptions (Part 1) The Organizational Culture and PRIDE in Maintenance Facilities Organization, Administration and Human Resources Craft Skills Development Facilities Management Supervision/Leadership Business Operations, Budget and Cost Control Work Management and Control: Maintenance and Repair (M/R) Work Management and Control: Construction and Renovation (C/R) Facilities Maintenance and Repair Planning and Scheduling Facilities Construction and Renovation Planning /Scheduling and Project Management Facilities Planning and Property Management Facilities Condition Evaluation Program Facilities Storeroom Operations and Internal MRO Customer Service MRO Materials Management and Procurement
Evaluation Items
Total Points in Category
A. B. C. D. E. F F. G. H. I. J. K. L. M.
5 10 10 10 15 10 5 15 10 10 5 15 10
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50 100 100 100 150 100 50 150 100 100 50 150 100
CATEGORY
The Scoreboard for Facilities Management Excellence Category Descriptions (Part 2 Continued) Preventive Maintenance and Lubrication Predictive Maintenance and Conditioning Monitoring Technologies Building Automation and Control Technology Utilities Systems Management Energy Management and Control F iliti Engineering Facilities E i i S Support t Safety and Regulatory Compliance Security Systems and Access Control Facilities Management Performance Measurement Computerized Maintenance Management System (CMMS) and Business System Shop Facilities, Equipment, and Tools Continuous Reliability Improvement Grounds and Landscape Maintenance Housekeeping Service Operations
Evaluation Items
Total Points in Category
N N. O. P P. Q. R. S S. T. U. V. W. X. Y. Z. ZZ.
20 10 5 10 10 10 15 10 15 15 10 10 15 15
200 100 50 100 100 100 150 90 150 150 100 100 150 150
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Total Evaluation Items and Points
300
3000
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Focus on Your TARGETS

Taking Aim at Recommendations to Gain Excellence from Training Success
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The Goal & The Commitment

The Goal: Implement and measure results of solutions
we define by y each Scoreboard assessment or during g TrueWorkShop events.
The Commitment: We are committed to a long term

partnership for achieving measurable results. To help continuously expand current successes To help implement our recommendations To document results & the value of our services To become a valuable technical resource To have all clients use maintenance for profit optimization.
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Scoreboard Baseline Ratings

TOTAL BENCHMARK POINT RANGES 90% to 100% of Total Points 80% to 89% of Total Points 70% to 79% of Total Points 60% to 69% of Total Points 50% to 59% of Total Points 49% or Less of Total Points OVERALL SCOREBOARD RATING SUMMARY THE BASELINE AS TOTAL O A SCO SCORE EXCELLENT: 2700 to 3000 Total Points VERY GOOD: 2400 to 2699 Total Points GOOD: 2100 to 2399 Total Points AVERAGE: 1800 to 2099 Total Points BELOW AVERAGE: 1500 to Less than 1799 Total Points POOR: 1499 Total Points or less BASELINE POINTS FOR EACH EVALUATION ITEM 10 9 8 7 6
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Your Return on Maintenance Investment

Financial Results Customer Satisfaction Results
5% to 20% increase in
capacity/throughput
10% to 30% increase in asset

availability/reliability
20% to 30% increase in craft

productivity/wrench time
10% to 20% reduction in actual

maintenance costs
10% to 20% reduction in stock outs 20% to 30% greater inventory

accuracy and control
10% to 20% decrease in parts

inventory & asset accountability
20% to 30% increase in planned

work and schedule compliance
Fully implemented projects of this type provide a conservative range of direct savings/benefits and gained value from 10% to 20% in annual maintenance and MRO materials costs. Most operations achieve significant measurable improvements in many key performance measures measures. Also this project will also provide important intangible benefits for employee relations, attitudes and internal and external customer satisfaction.27
Introduction
to
Continuous Reliability Improvement
(CRI)
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Conduct Scoreboard for Facilities Management g Excellence Assessment
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Continuous Reliability Improvement-CRI
Develop Your Scoreboard for Facilities The Maintenance Excellence Institute: WorldwideExcellence Services With Measured Shop Level Results Management
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CONTINUOUS RELIABILITY IMPROVEMENT GOES BEYOND RCM AND TPM
Physical Asset and Equipment Resources Synergistic S i ti Team T Based Resources Craft Labor Resources
Craft Knowledge and Technical Skill Resources

Spare Parts and Material Resources
Information Resources and CMMS
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The Synergy of Team Efforts
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The Synergy of Team Efforts
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Todays Maintenance Leader Must:

Know Where You Are Know Where You Want To Go Have Strategic, Tactical or Operational Plans Have Do It Now Action Items Be a true Maintenance Leader Measure M performance f & validate lid results l Apply CRI across total maintenance operation
.
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Return on Maintenance Investment (ROMI)

Financial Results
5% to 20% increase in capacity/throughput 20% to 30% increase in craft productivity/wrench time 10% to 20% reduction in actual maintenance costs Customer Satisfaction Results 10% to 30% increase in asset availability/reliability 10% to 20% reduction in stock outs 20% to 30% greater inventory accuracy y
20% to 30% increase in planned 10% to 20% decrease in parts work inventory value Maintenance process improvement can provide direct savings/benefits and gained value from 10% to 20% in annual maintenance and MRO materials costs. You can achieve measurable results in many areas. And you can provide important benefits for employee relations, relations attitudes and both internal and external customer satisfaction.
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Understanding Potential Benefits

With a Net Profit Ratio of 5 Percent; the Potential for Maintenance to Contribute to the Bottom Line Can be Significant
Maintenance Direct S Savings i A Profit of $1 $1,000 $10 000 $10,000 $20,000 Offsets Savings of $50,000 Not Having $75 000 Having $75,000 $100,000 $150,000 $175,000 $ , $200,000 Equivalent Sales R Required i d Requires Sales of $20 $20,000 $200 000 $200,000 $400,000 $1,000,000 in Sales $1 500 000 $1,500,000 $2,000,000 $3,000,000 $3,500,000 $ , , $4,000,000
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Developing Your Maintenance Excellence Strategy Define where you are with a Scoreboard for Facilities Management Excellence assessment Get third-party support for an objective benchmark assessment Define your priorities for where you want to go Develop potential direct & indirect benefits Gained value from increased uptime Gained G i d value l from f craft ft productivity d ti it Gained value from MRO materials management
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Developing Your Maintenance Excellence Strategy Establish A Reliable Maintenance Excellence Index
NEXT
Communicate maintenance goals with operations or customers and get their buy-in and support Ensure maintenance operation has buy-in as well
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Develop a Reliable Maintenance Excellence Index A Reliable Maintenance Excellence Index Must;
Identify key performance indicators that really matter Gain G i consensus on agreed d upon goals l & targets t t Define weighted value of the relative importance of each performance indicator Have metrics that validate projected benefits, gained value and total operations success Metrics Cover All 6 Maintenance Resources If Possible
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The Reliable Maintenance Excellence Index
The RMEI measures key resources that contribute to

profit optimization optimization, greater customer service and more effective facilities management; People p resources; ; internal craft labor & outside contractors Dollar resources; overall budget dollars of maintenance and
the customer MRO parts and material resources Planning resources and customer service Critical assets; uptime, availability or OEE & reliability Information resources; how data becomes true information via effective CMMS CMMS Benchmarking g System y
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A Reliable Maintenance Excellence Index Provides;
A very powerful, one page Excel spreadsheet 12-15 key metrics combined for a composite Total RMEI
Performance Value A very y balanced scorecard for the total facilities and maintenance process. An ideal method for measuring Continuous Reliability Improvement across a multiple operations & work units Support to applying and measuring the impact of standard b t practices best ti Example: Maintenance planning & scheduling: We must define results of an investment in a planner positions!!
Developing Your Reliable Maintenance Excellence Index
Current Month Perf
Baseline Perf. Level
Weighted Value of Each Metric
Developing Your Reliable Maintenance Excellence Index

All Perf. Goals Are Met
So Perf. Perf Level Scores are All 10s
Step Description
The 10 Step Process for RMEI Development
A B C D E F
Developing Reliable Excellence Performance 10Your to 15 metrics are Maintenance selected & agreed upon by the Index organization. process + operational p ones. Metrics Select metrics for total maintenance p
Current The actual monthly performance level for the metric . This value Month will also be noted in one of the incremental values blocks below Performance the performance goal. This value will correspond to a value for F, the performance level scores which go from 10 down to 1 Performance The pre-established performance goal for each of the RMEI Goal metrics. For example, if the Current Months Performance is at the Performance Goal level, the performance level score for that goal will ill be b a 10, 10 the th maximum i score. Baseline The baseline performance level prior to start of RMEI Performance performance measurement. Not always available. Use a 1-3 g as a baseline after start of RMEI. months performance average Current Depending on the current months performance, a performance Performance level score (F) will be obtained. This value then goes to the Score Current Performance Score row and serves as the multiplier for the (G) the Weighted Value of the Performance Metric Performance Values from 10 down to one, which denotes the level of current Level performance, compared to the goal. If current performance predetermined g goal, ,ap performance value of 10 is achieves the p given. Each metric is broken down into incremental values from the baseline to the goal. Each incremental value in the column corresponds to a performance level value. This value becomes the The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results Current Performance Score.
Step
Description
The 10 Step Process for RMEI Development (cont)

importance p of each of the metrics. These values are obtained via a team process and a consensus on the relative importance of each metric that is selected for the RMEI. All of the weighted values sum to 100.
G H I J
Value of the Performance Metric Performance Value Score
Developing Your Reliable Maintenance Excellence Index Weighted The values along this row are the weighted value or relative
The Weighted Values (G) are multiplied by (E) the Current Performance Scores to get the Performance Value Score (H). The sum of the Performance Value Scores for each of the metrics and the composite value of monthly maintenance performance on all ll RMEI metrics t i
Total RMEI Performance V l Value Total RMEI Performance Values Over Time
Location for tracking Total RMEI Performance Values over a number of months
Important Notes
1. 2. 3 3. 4. The RMEI is a composite of key metrics, each with relative importance Each RMEI metric can be trended and linked to the monthly RMEI Th RMEI should The h ld be b balanced b l d across the h total l maintenance i operation i Other metrics of lesser value can also be tracked.
21 Maintenance Performance Metrics to Consider for Your Reliable Maintenance Excellence Index with
PRIDE
-in-
Maintenance
PRIDE-in-Maintenance com PRIDE-in-Maintenance.com
Go For It @
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#
1. 2.
Performance Metric and Purpose

% Overall Maintenance Budget Compliance: To evaluate
management of $ assets; Obtained from monthly financials
Goal
98% TBD
Actual Maintenance Cost per Unit of Production or (Maintenance ( a te a ce Cost Per e Square Squa e footage ootage Maintained: a ta ed To o
evaluate/benchmark actual costs against stated goals/baselines or against industry standards; Obtained from asset records and monthly CMMS WO file of completed WOs for the month. Obtained from production results and financial report. report Provides ideal support to ABC Costing practices 98%
3.
% Customer or Capital Funded Jobs Completed as S h d l d and Scheduled d within ithi +// 5% of fC Cost tE Estimate: ti t To
measure customer service & $ assets plus planning effectiveness; Obtained from funded WO types from the CMMS WO files, comparing date promised to date completed and estimated cost to actual cost 95%
4.
% Other Planned Work Orders Completed as Scheduled: To
measure customer service and planning effectiveness; Obtained from a query of all planned WO types in CMMS WO files and comparing date promised to date completed. Could be expressed in % based on craft hours.
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#
5.

Schedule Compliance: To evaluate how effectiveness scheduling was
in regards to executing to meet scheduled dates/time; Obtained from query of CMMS completed WO file where all scheduled jobs coded and their actual completion compared to actual planned completion date/time
Goal
95%
6.
proactive improvement initiatives (CRI,/RCM/etc); Obtained from a query of all true emergency WO types in CMMS WO files and comparing to total WOs completed. Could be expressed in % based on craft hours. 7.
% Planned Work Orders versus % True Emergency Work Orders: To evaluate positive impact of PM, planning processes and other
Planned
80% to 85%
% Craft Time to Work Order for Customer Charge Backs: To monitor
TBD
craft resource Accountability for Internal Revenue Generation (or External); Obtained from a query of all WO types in CMMS WO files that are charged back comparing these craft hours to total craft hours paid 8. accountability and to support internal revenue generation ; Obtained from a query of all WO types in CMMS WO files and summation of actual craft
hours
% Craft Time to Work Orders: To monitor overall craft resource
100%
#
9.

% Craft Utilization (Actual Wrench Time): To maximize craft
resources for productive, value-adding work and to evaluate effectiveness of planning process; Obtained from a query of all craft hours reported to non craft work from CMMS time keeping WO files and summation of actual craft hours
Goal
60% to 70%
10. % Craft Performance (Against Reliable Estimates for PM and d planned l d work): k) To T maximize i i craft ft resources, to t evaluate l t planning effectiveness and also to determine training ROI; Obtained from completed WO file in CMMS 11. Craft Quality and Service Level: To evaluate quality and service level of repair work as defined by customer; Obtained from WO file in CMMS where all call backs are tracked and monitored via work control and planning processes.
95%
98% +
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The Overall Craft Effectiveness Factor (%)

CU: Craft Utili ti Utilization
CSQ: Craft Service Quality
CP: Craft Performance
OCE = %CU x CP x CSQ

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Goal
65%
12. Overall Craft Effectiveness (OCE): To evaluate cumulative positive impact of overall improvements to Craft Utilization (CU), Craft Performance (CP) and Craft Quality and Service Excellence (CQSE) in combination; Obtained from using results of measuring all three OCE Factors: a) Craft Utilization, Utilization b) Craft Performance and c) Craft Quality and Service Excellence 13. % Work Orders with Reliable Planned Times: To measure planners planner s effectiveness at developing reliable planning times; Obtained from completed WO file in CMMS where panning times are being established for as many jobs as possible by planner/supervisor
70 %
14 % Overall Preventive Maintenance Compliance: (Could 14. 100% (C ld be b by b type asset, production department/location or by supervisory area): To evaluate compliance to actual PM requirements as established for assets under scope p of responsibilities; p ; Obtained from completed p WO file in CMMS
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#
15 15.

Gained $Value from Craft Utilization & Performance: To
determine actual gained $ value of craft productivity gains as compared to original estimate and/or the initial baseline; Obtained only from using results of measuring two of the OCE Factors: a) Craft Utilization, b) Craft Performance.
Goal
TBD
16.
management and inventory control policies; Obtained from cycle count results lt and d could ld be b based b d on item it count t variances i or on cost t variance i 17.
% Inventory Accuracy: To evaluate one element of MRO material
98%
evaluate another element of MRO material management against original estimates and the initial baseline MRO inventory value; Obtained from inventory valuation summation at end of each reporting period
% or $ Value of Actual MRO Inventory Reduction: To
10%

inventory reduction goals; Obtained from tracking stock item demand and recording stock outs manually or by coding requisition/purchase orders for the items not available p per demand
Goal
????
18 Number of Stock Outs of Inventoried Stock Items: To monitor actual stock item availability per demand plus to monitor any negative impact of MRO .
19 $ Value of Direct Purchasing Cost Savings: To track direct cost savings from progressive procurement practices as another element of MRO materials .
management. Could apply to contracted services, valid benefits received from performance f contracting, t ti contracted t t d storerooms, t vendor d managed di inventory; t
TBD
Obtained via best method per a standard procedure that defines how direct purchasing savings are to be accounted for
20 Overall Equipment q p Effectiveness ( (OEE): ) World class metric to evaluate
cumulative positive impact of overall reliability improvements to Asset Availability A), Asset Performance (P) and Quality (Q) of output all in combination. (Similar to OCE above but for the most critical production assets); Obtained via downtime reporting process, p , operations p performance p on critical assets and the resulting g quality q y of output p
85%
21 % Asset Availability/Uptime: To evaluate trends in downtime due to maintenance and the positive impact of actions to increase uptime; Obtained via .
downtime reporting process
TBD
Many More Metrics Available

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Some Other Maintenance Metrics

Category Benchmark
Y Yearly l M Maintenance i t Cost: C t Total Maintenance Cost/Total Manufacturing Cost Maintenance Cost/Replacement Asset Value of the Plant and Equipment Hourly Maintenance Workers as a % of Total Planned Maintenance: / Maintenance Planned Maintenance/Total Planned & Scheduled Maintenance as a % of hours worked Unplanned Down Time Reactive Maintenance Run to Fail (Emergency + Non-Emergency) Maintenance Overtime: Maintenance Overtime/Total Company Overtime Monthly Maintenance Rework: Work Orders Reworked/Total Work Orders Inventory Turns: Turns Ration of Spare Parts
< 10-15% < 3% 15% > 85% ~85-95% ~0% < 15% < 10% < 5% ~0% > 2-3
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Some Other Maintenance Metrics

Category Benchmark
Training: For at least 90% of workers, hours/year p g on Worker Training g( (% of p payroll) y ) Spending Safety Performance: OSHA Recordable Injuries per 200,000 labor hours Housekeeping Monthly Maintenance Strategies: 9Preventive Maintenance: Total Hours PM/Total Maintenance Hours Available 9Predictive Maintenance: Total Hours PdM/Total Maintenance Hours Available 9Planned Reactive Maintenance: Total Hours PRM/Total Maintenance Hours Available 9Reactive Emergency: Total REM/Total Maintenance Hours Available 9Reactive Non-Emergency: Total RNEM/Total Maintenance 62 Hours Available Plant Availability: Available Time/ Maximum Available Time Contractors: Contractors Cost/Total Maintenance Cost
> 80 hours/year ~4% <2 ~96% ~20% ~50% ~20% 2% ~2% ~8% > 97% 35-64%
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What is PRIDE in Maintenance?

People l Really ll Interested di in Developing l i Excellence ll
In
Maintenance
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P l People:
It is About You and Your People (Technicians, Engineers Supervisors, Engineers, Supervisors Contractors, Contractors Storeroom Staff) and Top Leaders as well!

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Really:
It is Wanting, Desiring and Being Very Committed to Improving the Total Maintenance Process.

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Interested in:
Something of Importance That We Want to Improve or Change for the Good of Ourselves and Our Organization & Customers

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Developing:
Learning About and Building the Skills for Implementing Today Todays s Best Practices Practices. And Developing Our Most Importance Resource; Our PEOPLE!

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Excellence:
Achieving Reliability and Maintenance Excellence to Achieve Total Operations Success . Success of the Total Operation is THE GOAL
So What is PRIDE in Maintenance to You?

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Please Remember:
As a Maintenance Leader Leader, You Must Set the Example with
PRIDE in Maintenance
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Remember You Must Be a Salesman Too!
Maintenance Leaders Remember That Nothing Happens Until Somebody Sells Something!
Mr Red Motley Mr. Motle Said This a Long Time Ago
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Our Proven Approach is the Foundation of the new McGraw-Hill Book By TMEI Founder Ralph W. Pete Peters
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Additional Materials
Results from an Assessment of the T t l Maintenance Total M i t Operation O ti
TMEI Case Studies
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Assessment Deliverables to Achieve Validated Results 1. Maintenance Excellence Strategy Team chartered to facilitate world-class maintenance 2. A World-class maintenance strategy defined by The Scoreboard for Facilities Management Excellence with a recommended Plan of Action for Implementation 3. An in-depth assessment of current maintenance practices 4. Recognition of current successes 5. Develop and present PRIDE-in-Maintenance sessions to crafts work force and other staff 6. Recommendations for improvement to the current i t ll ti of installation f CMMS
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Assessment Deliverables to Achieve Validated Results 7. Implement The CMMS Benchmarking System to measure CMMS status, improvement actions & define functionality gaps. 8. Results previewed with Maintenance Leaders first!! 9 Prepare a Recommended Implementation Plan with 9. Tactical/Operations action plans and timelines 10. Define all improvement opportunities a) Define projected savings/benefits b) Develop timeline for achieving results 11. We implement The Reliable Maintenance Excellence Index to measure results. Note: This includes a d documented t d procedures d for f data d t extraction. t ti
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Assessment Deliverables to Achieve Validated Results
12. The Reliable Maintenance Excellence Index also validates the value of TMEI Services and is ready to implement 13. We define a Support Plan of Action for best practice support from The Maintenance Excellence Institute and our worldwide Alliance Team 14. Preliminary review of overall results and the plan by Maintenance Leaders 15. Written and oral presentation of results to Top Leaders and Maintenance Leaders 16 Implementation beginning from Day One with methods in 16. place to validate results: The Reliable Maintenance Excellence Index!
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Why The Maintenance Excellence Institute ?

Alliances
The Maintenance Excellence Institute views the initial client interactions as the formation of a long-term alliance. Our success is contingent upon the success of each of our valued clients. Our Alliance Members form the skills base for serving you with todays most comprehensive and cost effective support for total maintenance and MRO materials management improvement. Our breadth of experience allows us to understand your overall operation, your total maintenance and storeroom operation; combining this into an overall solution for total operations success. Our geographical distance apart is not a limitation in todays electronic world to provide for term cost effective implementation support. We work for your validated results, not just deliverables or a report. The engagement whether large or small is not successful until the solutions are implemented and validated. Three important deliverables validate results for every client; a Scoreboard for Maintenance Excellence, a CMMS Benchmarking System plus The Reliable Maintenance Excellence I d at Index t th the shop h floor fl level. l l We will only be successful when we work as a team with each client, collaborating and sharing expertise and working side-by-side with cooperation and commitment. Our clients team will bring an in-depth understanding of its operation. We will bring our proven methodology, valuable lessons learned and years of expertise in Maintenance Excellence Services, Operational Services and Training for Maintenance Excellence. The Maintenance Excellence Institute believes in the basics, simplicity and innovation toward profit-centered and customer-centered maintenance. We will view your operation and maintenance business as if it was our own. We never recommend solutions that are not cost-justified and without measurable results. The goal is to help you achieve and implement your overall business goals for profit optimization while gaining maximum value from your current maintenance operation.
Total Operations Success
Validated Results
Collaboration, Cooperation, Commitment
Profit and CustomerCentered
We guarantee at least at 10 to 1 return on your investment when using our services and implementing our action plans.
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Past Scoreboard Assessments & Support

Anderson Packaging IL Atomic Energy Canada (2 sites) Air Combat Command (3 Air Force Bases) Boeing Commercial Airplane Group (55 sites) BP Texas City Refinery TX Braun Medical-PA Bucyrus International-WI BP Texas City Refinery-TX Carolinas Medical Center-NC Cascade Engineering Engineering-MI MI (4 sites) Caterpillar (IL) Big Lots Distribution Centers-OH, CA AL, CA, AL PA (4 sites) Consolidated Thermoplastics (3 sites) Cooper Tools/Cooper Industries (9 plants) Dominion Terminal Associates-VA Associates VA DIMON International-NC & VA-4 sites Ford Motor (Canada) Engine Plant General Foods-NY GlaxoSmithKline-NC Goldkist Great River Energy-ND Heinz USA-OH Lucent L t Technologies-NE T h l i NE (2 sites) it ) Marathon Oil -LA, IL,MI and TX (4 sites) The Th M MarMaxx M Group-NE G NE National Defense-PA
Past Scoreboard Assessments & Support

Purolator-NC Rocketdyne Propulsion-CA (Div of B i ) Boeing) Rockwell International-WI Rohm & Haas-TX SIDERAR (8 Steel Mills Argentina) University of NC-CH Facilities Services Div (6 work units) University of NC NC-CH CH Building Services PRIDE in Maintenance Sessions EMCOR- VIOX Facilities Services-OH (Contract Maintenance Provider) Western Regional Maintenance-NC Dept of Health & Human Services (3 sites) The Werner Company-PA, IL and AL (3 sites) Wyeth-Ayerst -VA (3 sites in U.S.) Wyeth Medica (Ireland) Weyerhaeuser-WA NC Department of Transportation (15 Division level shops & 100 county shops National i Gypsum-NY, G GA & AL A (3 sites) NYCOMED (Puerto Rico) P l id Corporation-MA C i MA Polaroid Pratt & Whitney (Canada) Broward County Schools (FL)
Training for Worldwide Organizations
Maintenance Excellence Case Studies
The Mainten
Case Study:
University of North Carolina, Facilities Services Division
The Facilities Services Division for the University of North Carolina-Chapel Hill (UNCFSD)provides the facilities management operations for North Carolinas largest university campus with staffing of over 1000 personnel from housekeeping, architectural design, construction/renovation, landscaping, f iliti maintenance facilities i t and d MRO i inventory t management. t UNCFSD purchased a Facilities Maintenance Management System (FMMS) in 1998 and uses CMMS for plant maintenance within its Co-Generation plant maintenance operation. CMMS has served well over the past years since Co-Generation plant construction in the early 1990s. From the facilities side side, there were opportunities to improve the MRO supply chain processes processes, particularly with regard to warehousing operations, inventory management and purchasing modules for maintenance and construction materials. UNCFSD determined that it was time to evaluate how well their over facilities management operations was working and what new technologies with regard to a FMMS systems and MRO supply chain could take it into the 21st century. More demands for services were imminent with recent passage of a $3.1 Education Bond Issue for construction for the overall UNC system of 16 campuses plus community colleges. The following engineering activities were provided: Completed a comprehensive supply chain and maintenance needs analysis. This included interviews with approximately 100 personnel at all levels of the organization to determine how MRO materials management and the FMMS was performing for the entire organization. This included both hourly and salaried positions. Documented work flows and all systems that interfaced with the current FMMS and determined with an economic analysis to see if the present system could be modified or upgraded to answer future needs.
Case Study
University of North Carolina, Facilities Services Division (Continued)
The following facilities engineering services were provided: (continued) Developed recommended MRO supply chain and maintenance best practices to provide the foundation for achieving g over $3,000,000 , , in direct savings g and gained g value. Determined with an economic analysis to see if the present FMMS system could be modified or upgraded to answer future needs for a rapidly changing maintenance environment. Provided a clear course for UNCFSD to pursue strategic, tactical and immediate operational improvements. Key areas included; Plan for new organizational function to provide a central function for MRO materials management, shop level and construction planning function and improved procurement processes. Plan of action for developing complete control and visibility of MRO inventories, modernization of off campus storage areas, areas creation of an on campus storage area and establishment of shop level storage sites. Plan for upgrading existing FMMS with functionalities for more effective MRO materials management and planning. Complete position description description, job rating guide and procedures for establishing shop level planning positions Standard operating procedures for a UNCFSD Facilities Management Excellence Index to measure direct savings and gained value of all operational improvement initiatives. Provided g guidelines for continuous measurement of strategic g best practice improvement via The Scoreboard for Facilities Management Excellence and The FMMS Benchmarking System
Case Study
Rockwell International (now AMERITOR)
The Rockwell International (Rockwell) site in Wisconsin manufactures large transmissions and axle assemblies for heavy construction and transportation equipment. Rockwells maintenance p program g was in desperate p need of effective storeroom operations, p , work management, g , PM execution and lack of even basic CMMS functionality was creating a serious challenge for effective plant operations throughput. Effective maintenance management was a serious missing link. To get immediate help before catastrophic failures, Rockwell engaged Advanced Technology Services Inc (ATS) to manage maintenance, improve/operate the storeroom, establish CMMS and to provide a maintenance planner via contracted services. This project was a partnering effort between MEI staff and ATS to help Rockwell implement essential best practices within this highly unionized environment. ATS determined that it was necessary get basic practices in place so that their contract services could perform. More demands for equipment reliability, increase uptime, better quality from precision machining centers, regulatory compliance, compliance and better service from existing craft resources made the topic of achieving maintenance excellence a business survival opportunity. The following engineering services to support the Rockwell manufacturing plant were provided: Completed review of existing asset database on legacy system, prepared and migrated asset data to CMMS. CMMS Developed modernization plan for storeroom, purged old parts from existing storeroom and developed parts database for CMMS after complete inventory of good parts. Relocated storeroom to new location in center of plant and established effective parts service Analyzed the best maintenance practices to provide the foundation for CMMS Supported start up of contract planner position, new storeroom attendants and measurement process for Continuous Reliability Improvement
Case Study
Boeing Commercial Airplanes Group
The Boeing Commercial Airplanes Group (BCAG) is a division of The Boeing Company, the worlds largest manufacturer of commercial jetliners and military aircraft and the largest NASA contractor. As the largest producer of commercial jetliners, BCAG operates four strategic manufacturing centers in Washington as well as locations in Wichita, Kansas and Long Beach, California. The Th F Facilities iliti A Asset tM Management t Organization O i ti (FAMO) l located t di in S Seattle ttl h has centralized t li d responsibility ibilit and d technical leadership of facilities management and maintenance operations in all regions. Through their Advanced Maintenance Process (AMaP), FAMO was implementing a progressive and comprehensive five-year maintenance excellence initiative throughout BCAG and pursuing the implementation of world-class p maintenance practices. FAMO leaders were very committed to improving, standardizing and supporting corporate-wide maintenance best practices and having a system in place to measure results. After introducing the AMaP program at BCAG, FAMO leaders needed a method to benchmark results, measure benefits, identify obstacles to progress, and determine improvements needed to make AMaP more effective. FAMO needed to review the best practice elements of their AMaP program and to develop a Boeing Scoreboard for Facilities Maintenance Excellence. In turn, the internal benchmarking guide that evolved would be used to provide an objective evaluation of AMaP progress at each region down to group (maintenance manager) and team first line supervisor) levels. Part of the solution included using The Scoreboard for Facilities Management Excellence as the baseline guide and working with the FAMO team to determine the key AMaP evaluation criteria to be added. The Boeing Scoreboard for Facilities Management Excellence was developed &define the BCAG maintenance excellence strategy, providing evaluation criteria to measure implementation progress at all levels in FAMO. A craft survey was developed and conducted with over 3000 members of the craft work force.
Case Study
Boeing Commercial Airplanes Group (continued)
Results from this project included: Boeing Scoreboard for Facilities Maintenance Excellence developed Developed plan of action for assessments in all regions (over 50 site operations) Developed survey for crafts, planners, and customers of maintenance (technical work force over 3,000) Boeing B i Scoreboard S b d for f Facilities F iliti Maintenance M i t E Excellence ll assessment t conducted d t d in i all ll regions: i Developed ratings and specific improvement opportunities for group leaders and team leaders Identified various sites as centers of excellence for sharing of best practices Completed survey and compiled results from crafts, planners, and customers FAMO operation p evaluated with The Scoreboard for Facilities Management g Excellence as baseline g guide Improvement to existing planning and scheduling process developed Improvements to corporate-wide performance measurement process recommended As a result of this project FAMO had well-defined strategy for maintenance excellence and support plan for implementation. It also had a process established to measure implementation progress and ROI. Key results included: Recommended enhancements to AMaP best practices and FAMO operations identified with potential savings of over three times the cost for implementation Clearly defined a maintenance excellence strategy for the Boeing Scoreboard for Facilities Management Excellence Established a current evaluation of AMaP progress in each region Conducted an overall evaluation of FAMO operations Refined maintenance performance measurement process and readied a Facilities Management Excellence Index for implementation Put into place a world-class CMMS and standard best practices for implementation at all sites Developed a method for greater accountability and productivity of all craft labor and material resources Renewed the focus on effective planning and scheduling processes
The Mainten
Case Study
Siderar SAIC
Siderar SAIC is the largest steel company in Argentina with a production level of over two million tons per year. Siderar operates seven plants within the province of Buenos Aires. It is a fully-integrated producer that uses iron ore and coal as raw materials to produce coke, pig iron, and steel to manufacture hot and cold rolled sheet and coated products. Siderar wanted to upgrade their in-house developed Computerized Maintenance Management System (CMMS), consider the use of SAP-R/3 or implement another CMMS system-CMMS throughout its seven plants. They also wanted to improve corporate-wide maintenance best practices, have a system in place to measure results and ensure that the functionality of a new CMMS would fully support their maintenance improvement results, efforts. Siderar SAIC needed a review of their total maintenance operation at all seven plants and to define recommended best practices and functional requirements for a world-class CMMS. Working with the Siderar team, a solution was developed that included a Scoreboard for Facilities Management Excellence assessment and specific recommendations for improvements at all plants, the definition of functional requirements for a future CMMS, and a recommended performance measurement process. Results over the course of the project include: Developed functional requirements for a corporate-wide CMMS Established method to evaluate vendors and developed short list Evaluated SAP-R/3 plant maintenance and procurement module and ROI Evaluated CMMS and ROI as the option to SAPs Plant Maintenance module Established a recommended Siderar CMMS strategy Recommended CMMS vendor: CMMS Established CMMS implementation plan and a Siderar CMMS Benchmarking System to measure progress
Case Study
Siderar SAIC (continued)
Conducted benchmark assessment at the seven Siderar plants Developed a Scoreboard for Facilities Management Excellence rating for each Defined specific improvement opportunities of over $4 million Developed improvement to existing planning and scheduling process Introduced work measurement techniques Developed measurement of planning effectiveness Defined improved preventive/predictive maintenance (PM/PdM) opportunities Revised and upgraded PM/PdM procedures Increased compliance to PM/PdM schedules Defined need for improved storeroom and shop operations Developed need for strategic storeroom master planning Implemented new storeroom procedures Improved inventory control and accuracy Developed a corporate-wide performance measurement process Established performance goal for each metric Documented D t d the th process with ith written itt standard t d d procedures d Established the Siderar Facilities Management Excellence Index (MEI) Siderar SAIC was able to develop the best approach to CMMS and achieve their corporate-wide maintenance goals with a method to measure results. Key outcomes included: Best practices with potential savings of over $4 million identified for implementation A corporate-wide CMMS strategy developed to integrate a best-of-breed CMMS with SAP-R/3 financials
Case Study
Siderar SAIC (continued)
A Siderar CMMS Benchmarking System in place to measure CMMS implementation progress An overall maintenance excellence strategy with strategic, tactical and operational actions established as a result of the total maintenance operations assessment Maintenance performance measurement process established A world-class CMMS and standard best practices in place for implementation at all seven p plants A method for greater accountability and productivity of all craft labor and material resources A Siderar Scoreboard for Facilities Management Excellence established to periodically evaluate overall maintenance excellence progress at each of the seven plants
Case Study
NC Dept. of Transportation, Div. of Highways Equipment Unit
The NC DOT directs, plans, constructs, maintains and operates the second largest state-maintained transportation system in the nation. The Equipment Unit maintains a fleet of over 20,000 pieces of equipment for highway repair and construction via a central depot operation and over 100 field shops. Due to the scope p of NCs transportation p system y and g growth of overall highway g y maintenance requirements, q , continuous improvement of fleet management was identified as being essential to the NCDOH mission. A comprehensive Equipment Management System and other improvements were needed to support this extensive fleet operation where annual replacements alone ranged from 20 to $40 million per year. The Equipment Management System which was implemented statewide over a 2 year period provided the following:
A computerized system for equipment inventory, parts inventory, repair history, work control, planning/scheduling, performance reporting and more effective preventive maintenance A comprehensive statewide renewal of the PM program that included operator level PM tasks Equipment E i t Services S i Pl Planners; over 50 planners l selected, l t d t trained i d and di installed t ll d i in selected l t d shops h f for minor/major i / j repair i and PM scheduling, providing estimated repair time, shop schedules, parts coordination and increased customer service to field operations Improved PM effectiveness that increased equipment uptime, increased equipment life and reduced annual equipment repair costs by over $5,000,000 per year Improved parts service and overall management in central warehouse and at shop sites with a net reduction of over $2,000,000 per year in parts inventory costs Improved planning and customer service to field operations with increased craft wrench time valued at over $3,000,000 per year Increased time for service to outside agencies resulting in new revenue of over $1 $1,500,000 500 000 per year A pioneering effort for fleet management, viewed by numerous agencies from US and around the World
Case Study
Consolidated Stores/BigLots Inc.
Consolidated Stores Corporation which is now BigLots Inc. is one of Americas leading value-specialty retailers. Their Closeout Division operates 1,230 stores in 43 states, doing business as Odd Lots, Big Lots, Mac Frugels, and Pic N Save. Their Toy Division consists of 1,320 toy stores in all 50 states, Puerto Rico and Guam for KB Toys, KB Toy Works, KB Toy Outlet, and KB Toy Express. Consolidated Stores wanted to establish standard maintenance best practices and significantly improve maintenance operations in all of its four distribution centers (DCs) totaling over seven million square feet. They also wanted to have these company-wide maintenance best practices available for use in new and future DCs. Consolidated Stores desired to conduct a Scoreboard for Facilities Management Excellence assessment at two pilot DCs to determine a recommended strategy at all DCs in the future future. Results from the assessments indicated the need for an improved Computerized Maintenance Management System (CMMS), better preventive maintenance (PM), improved planning between DC operations and maintenance, improved storeroom operations, improved shop and storeroom facilities, and the need for a method to measure maintenance performance and service. A Consolidated Stores Maintenance Excellence Strategy Team was chartered to provide direction and support to implementation of the recommendations and to define a common measurement process to validate projected savings. A combined team effort with all levels of Consolidated staff significantly contributed to a true Consolidated Stores solution. Results over the initial 12 months of the project included: Conducted final selection and implementation of a new CMMS at four DCs Established system on central server for exclusive use by maintenance DC sites Trained crafts people and DC operations personnel in PRIDE in Maintenance topics Established E t bli h d CMMS Benchmarking B h ki System S t t gain to i full f ll utilization tili ti
Case Study
Consolidated Stores/BigLots Inc. (continued)
Implemented a planning and scheduling process at each DC Developed corporate-wide planner position description/grade Selected and trained one planner and backup per DC in Effective Maintenance Planning and Scheduling Supported planners with shop level training Measured planning performance Initiated improved Preventive Maintenance Revised and upgraded PM procedures at all sites Improved support from DC operations staff Improved storeroom and shop operations Developed strategic storeroom master plan Improved I d inventory i t control t l and d accuracy with ith bar b code d applications li ti Established modernized central shop and central storeroom at Columbus,OH DC Established new storeroom at Montgomery, AL DC Established written standard operating procedures for use at all sites Work order and work control Planning and scheduling Storeroom operations and parts procurement Implemented corporate-wide performance measurement process Consensus on corporate-wide metrics (13) Performance goal for each metric established Facilities Management Excellence Index (MEI) established for each DC
Summary: Corporate-wide goals and measurable results achieved as follows:

1. Development/implementation of a corporate-wide strategic maintenance excellence plan 2. Common CMMS and standard best practices in place and ready to apply at future DCs 3. Greater accountability and productivity of all craft labor and material resources quickly y brought g online with effective maintenance p practices 4. A new DC q 5. A renewed focus on PM and planning coordination with DC operations 6. Storeroom modernization and improvement and measurable results 2 times original projections The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results
Case Study
Marathon Oil Company
Marathon Oil Company (Marathon) has four major refineries for gasoline and oil products in four states and a corporate office in Findlay, Ohio. Marathon purchased a Computerized Maintenance Management System (CMMS) in 1987 and is now operated from a network in Findlay, Ohio. This system has served Marathon well over the past nine years, particularly with regard to the warehousing and purchasing modules for maintenance control. Marathon determined that it was time to evaluate how well this system was working and what new technologies with regard to a CMMS system could take it into the 21st century. More demands for equipment q p history, y regulatory g y compliance, p and real-time cost data had made this topic p a top pp priority y for Marathon. The following engineering services were provided: Completed a comprehensive needs analysis for four refining sites. This included interviews with approximately pp y 200 p personnel at all levels of the organization g to determine how the CMMS was performing for the entire organization. This included both hourly and salaried positions. Documented all systems that interfaced with the CMMS for future compatibility. Determined with an economic analysis to see if the present system could be modified or upgraded to answer Marathons Marathon s future needs for a rapidly changing maintenance environment. Analyzed all CMMS vendors to see what technologies could best fit into Marathons future plans. It was determined that reliability was the key for future major cost reductions. Analyzed the best maintenance practices to provide the foundation for a CMMS. Provided P id d a clear l course f for M Marathon th t to pursue.
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SESSION NO.: R4.

Thursday, MARCH 18, 2010

ROOM NO.: 339

Successful Facilities Management Auditing & Benchmarking

Key Session Objectives

2. Review the strategy for Continuous Reliability

Different Types of Benchmarking

2 Strategic Benchmarking: Improving 2. Impro ing

Different Types of Benchmarking (cont)

Benchmarking Your Maintenance Organization

The Reliable Maintenance Excellence Index

We Will Review These Two Benchmarking Tools

Maintenance Around the World

Plus Many Pl M More Types of Maintenance

Facility Management Operations

Burj Al Arab: A 7 Star Hotel

Russian Airport p Control TowerKamchatka Peninsular

Todays Very Real Challenges

Todays Very Real Challenges

9 Eliminate a reactive strategy GO PRO-active!

Facing Todays Maintenance Challenges

Real Maintenance Leaders

YOUR OWN PER$ONAL BUSINE$$

What is Your Answer to This Question?

Facing Todays Maintenance Challenges

Conduct Scoreboard for Facilities Management g Excellence Assessment

Know Your Current State of Maintenance

Stage 1: Daily Maintenance & a desire to continuously improve &

Stage g 5: Achieving g reliability y and maintenance excellence with the

Get Stage 1 Right! Moving beyond Stage 1 will achieve significant

Define your current state of maintenance via The Scoreboard

The Reliability Pyramid

Reliability and Maintenance Excellence

Failure Mode Analysis

Craft Skills Enhancement

CMMS System MRO Materials Management

Daily Maintenance: Gain Work Initiation / control of the work Prioritization

Introducing The Scoreboard g Excellence for Facilities Management

Scoreboard for Maintenance Excellence (Manufacturing)

200 200+ plus Scoreboard Assessments Scoreboard Assessments

Total Points in Category

Total Points in Category

Total Evaluation Items and Points

Focus on Your TARGETS

The Goal & The Commitment

The Commitment: We are committed to a long term

Scoreboard Baseline Ratings

Your Return on Maintenance Investment

10% to 30% increase in asset

20% to 30% increase in craft

10% to 20% reduction in actual

10% to 20% reduction in stock outs 20% to 30% greater inventory

10% to 20% decrease in parts

20% to 30% increase in planned

Continuous Reliability Improvement

Continuous Reliability Improvement

Conduct Scoreboard for Facilities Management g Excellence Assessment

Continuous Reliability Improvement-CRI

Continuous Reliability Improvement

Craft Knowledge and Technical Skill Resources

Continuous Reliability Improvement

Information Resources and CMMS

Continuous Reliability Improvement

Continuous Reliability Improvement