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Define success for your asset performance management Move to a more planned environment Improve control of assets Lower operating costs and increase revenue opportunities Measure to motivate
Too few or incorrect metrics that don’t trade off Improvement in one may result in deterioration of another
Too many measurements No focus across the organization Expensive to collect and track Increased likelihood of errors
Risks of not using the right metrics Major safety, environmental or operational failures Reduced efficiency resulting in financial loss Total plant shutdown
MRO spending: US companies spend $100 Billion annually on capital equipment and services
Energy spending: US companies spend $400 Billion annually on energy – and climbing
Next to personnel, the single highest cost for a typical manufacturing facility is energy
So why do companies maximize asset availability / performance / quality (ie, OEE) without properly understanding the two biggest cost drivers?
Would you take on the cost of a high performance limousine, that is always available, and gives you a quality ride from A to B, if it has a high purchase price, guzzles gas, requires a team of people to maintain, has a poor economic life, and is scoffed by passersby?
From a survey conducted last fall by Plant Services magazine, it is clear that business leaders are concerned about rising energy prices – 77.3% felt energy prices would have the highest impact
What current trends do you think will have the most impact on operations in U.S. manufacturing plants? (check all that apply)
A. Criticality AnalysisLooking Forward based on Engineering Design
1. What does this component do?
2. What happens if it fails?• Catastrophic• Major safety, environmental or operational impact (eg total shutdown)
• Reduced efficiency• Other financial loss (eg. quality problems)• Negligible impact (therefore run to failure)
3. What maintenance program is required for this component (cost/benefit analysis)?• Reactive (run to failure)• Preventive (time-based inspection)• Predictive (condition-based monitoring – what are the predictors?)
Examples: replace the light bulb; change the oil; replace the bearings
C. Predictive Maintenance AnalysisLooking Forward Based on History/Eng/Stats
Identify high cost failures: (eg, engine failure)
Examine history of failure and determine correlated conditions prior to failure: (eg, temperature, energy usage, or excessive emissions prior to engine failure)
Track trends in condition of predictor: (eg, spikes in energy usage and trends to upper control limit)
Take appropriate action depending on severity: (eg, activate an alarm, send an email, and/or launch a PM routine to inspect)
Improve equipment performance and reliability using root cause analysis: (e.g., monitoring energy consumption increases MTBF)
D. Lifecycle AnalysisRepair/Replace Decision Based on Cost History
Determine problem codes that resulted in high repair/replace costs charged to a given asset: (eg, spent average of $10,000 on replacing type 1 motors)
Examine historical data to determine root cause:(eg, spikes from power source vs faulty motor)
Perform cost/benefit analysis for repair/replace decisions: (eg, $200 to filter spikes vs $10,000 to replace motor)
Replace asset/component if total cost of repair exceedsreplacement cost, assuming alleviation of root cause: (eg, if spikes, don’t replace motors; if faulty motor, it may be cost-effective to replace with alternative motor)
Repeat for predictive based on engineering probabilities: (eg, high probability that motor will fail within the year based on energy consumption)
Large asset-intensive company in energy sector More than 1000 assets Multiple CMMS/EAM packages looking to consolidate No clear maintenance strategy Poor history records
Solution:
Chose key assets/components for pilot Tracked history via CMMS/EAM Used analysis tools to determine optimal maintenance policy
Current SituationNeed for Automated Continuous Commissioning
Equipment is not properly commissioned, operated nor maintained even though capabilities of PLC and BAS continue to increase and maintenance programs are in place
Improper operations lead to inefficiencies and reduced lifetime of the equipment
Commissioning and retro-commissioning fixes do not persists over time
Manual periodic commissioning can be expensive Field demonstrations of diagnostic tools indicate
Many assets are improperly operating, including those that are newly commissioned
Even when problems are identified, operators rarely take corrective actions
• ongoing process for monitoring systems and assets, diagnosing and resolving issues, and making energy consumption as efficient as possible while maintaining or improving asset performance.• includes all asset life-cycle operating and maintenance aspects from physical maintenance, to control strategies, to prioritizing and implementing retrofits.
optimize current operations
Cost Benefits
20 % + energy reduction formonitored assets
DOE Continuous Commissioning Guide BookIndependent Study by Texas A&M
… to improve a company’s overall equipment operating performance at the least cost and environmental impact. Energy is the single largest indirect operating expense; > 80% of O&M expense Energy is the largest contributor of CO2 Gases which comprise 63% of all GHG
… to improve a company’s overall equipment operating performance at the least cost and environmental impact. Energy is the single largest indirect operating expense; > 80% of O&M expense Energy is the largest contributor of CO2 Gases which comprise 63% of all GHG
Energy integration into EAM strategy…
Maintenance Program Management: factoring asset operating performance (Energy consumption) into maintenance strategy and activities
Alert Management: alerting of existing asset condition or trend outside of optimum operating parameters for assessment or remediation
Planning: assessing existing asset configuration (design basis) and performance (energy consumption) for optimization
Environmental Sustainability:Intuitive Actionable Information
The G.A.S. index reduces complex manufacturing and facility operating problems of optimizing asset design performance at the least total energy cost and environmental risk into simple, intuitive presentation of actionable information.
G.A.S. Index = Availability * Performance * Quality * Energy Efficiency
The G.A.S. index reduces complex manufacturing and facility operating problems of optimizing asset design performance at the least total energy cost and environmental risk into simple, intuitive presentation of actionable information.
G.A.S. Index = Availability * Performance * Quality * Energy Efficiency
Environmental Sustainability:Operating Performance vs. Energy Cost
Infor EAM Asset Sustainability Edition
Asset performance management can reduce energy consumption by 6% to 20% These percentages have been established by international studies which indicate that a company’s asset management operations would benefit from integrating energy consumption into their asset management strategy.
Terry Wireman; Benchmarking Best Practices in Maintenance Management ISBN: 0-8311-3168-3
Asset performance management can reduce energy consumption by 6% to 20% These percentages have been established by international studies which indicate that a company’s asset management operations would benefit from integrating energy consumption into their asset management strategy.
Terry Wireman; Benchmarking Best Practices in Maintenance Management ISBN: 0-8311-3168-3
“Six Key Metrics to Align Asset Management & Energy Efficiency.”
Contact Infor? Call Infor at 1-800-260-2640 Email Infor at [email protected]
Next step? Take the Green Assessment: go.infor.com/green Demo & report:http://www.infor.com/goinggreen/solutions/greeneam/as/ Attend the next live demo of Infor EAM Asset Sustainability Edition on