Improving Equipment

Reliability using a CMMS/EAM

Ben Stevens, OMDEC Inc -

IPAMC 2006

Ben Stevens OMDEC Inc – www.ipamc.org

Improving Equipment Reliability using a CMMS/EAM
 CMMS/EAM Evolution
Phase 0 – Manual
operation, no
CMMS

Phase 2: Phase 4:
Phase 3:
Automate Processes: Analysis,
Phase 1: Use of Workflow,
Work Request/Work Information,
Automate Forms: Work Management
Order Knowledge Base,
Work Orders Emergence of EAM
Work Order/ Integration with
Purchase Orders Merge and
Material Issue intelligent agents
Issue slips eliminate tasks
Work Order/ to improve the
Time cards Streamline
Purchasing quality of the
Specifications functions
Maintenance Plan

Project led by Project led by

Project led by IT;
Project led by IT; Business Unit; Maintenance;
KPI’s are IT
KPI’s are IT KPI’s are cost KPI’s are equipment
efficiency,
efficiency, reduction, reliability, number of
database type,
database type materials usage failures, quality of
degree of
employee maintenance, use of
integration
productivity best practices
35% 40% 20% 5%
Ben Stevens OMDEC Inc – www.ipamc.org
Improving Equipment Reliability using a CMMS/EAM
Cost of Failure

Cost of Failure =
Cost of Repair +
Cost of Lost Revenue +
Penalty Costs

Ben Stevens OMDEC Inc – www.ipamc.org

Improving Equipment Reliability using a CMMS/EAM
Failure Costs

Ben Stevens OMDEC Inc – www.ipamc.org

Improving Equipment Reliability using a CMMS/EAM
The Risks of Equipment Failure

Unit Repair Repair Outage Repair Failure Failure Failure Run Risk Risk
Cost Time cost per Risk Cost time Probab Ratio
Hour 30 days

Niigata 25,000 15 hours 1,000 40,000 100,000 28 days 25% 193,000 193:40 =
Diesel 5:1

Yuko 120,000 1 week 2,000 361,000 250,000 60 days 15% 470,000 470:361 =
Turbine 1.3:1

Ben Stevens OMDEC Inc – www.ipamc.org

Improving Equipment Reliability using a CMMS/EAM
 Ben Stevens OMDEC Inc – www.ipamc.org
Improving Equipment Reliability using a CMMS/EAM
 Ben Stevens OMDEC Inc – www.ipamc.org
Improving Equipment Reliability using a CMMS/EAM
Risk versus Time in Equipment
Failure

Run Next Scheduled

Cost Risk Outage

Run
Risk

Repair
Risk
Repair
Risk

Time

Ben Stevens OMDEC Inc – www.ipamc.org

Improving Equipment Reliability using a CMMS/EAM
Equipment Failure Risk Ratio

Risk Ratio
Maximum Acceptable
Predicted Risk
Level of risk
20 Ratio level

15
Next Planned
10 shutdown date

Aug 1 Sep 1 Oct 1 Nov 1

Ben Stevens OMDEC Inc – www.ipamc.org

Improving Equipment Reliability using a CMMS/EAM