L&T White Paper - Maintenance Excellence Krishnan

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Best Practices involved in Work Order Data/History Maintenance

Krishnan Narayanan

First Published Date: April 2008

Re-Published on: June 2015

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What Makes a Good ‘Best-of-

Class’ EAM Solution?

Naturally, an asset-intensive company’s focus is on

the solution’s maintenance capabilities. It should

include leading-edge asset management

functionalities and allow the company to create the

most effective maintenance strategy, using

techniques such as closed-loop reliability-centered

maintenance (RCM). A modern solution is able to

supply information to the whole company, not just the

maintenance department. It will offer comprehensive

integration with the other business systems across the

organization. It should be linked to systems in

production, safety (Environmental, Health & Human),

planning, warehouse, procurement, finance, project

management and human resources. The ability to

offer a complete cross-departmental view of the

business will give a company the visibility, and in

turn, the agility it needs to be competitive.

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About the Authors

Krishnan Narayanan

Krishnan Narayanan is a senior member of L&T

Technology solutions Asset Management Services

Practice. He has more than 11 years of experience,

specializes in managing EAM initiatives to help process

industries implement Information Management

practices & EAM implementation. He comes from a

comprehensive US based EAM consulting profile with

strong experience in preventive maintenance & spares

management consulting engagements. He is a

Mechanical engineer and holds a post graduate

diploma degree in Operations and Maintenance

Management.

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Table of Contents

1. INTRODUCTION .................................................................................... 5

What Makes a Good ‘Best-of-Class’ EAM Solution? ..................................................................... 2

2. "BEST OF CLASS” MAINTENANCE EXCELLENCE ................................................. 5

Step One – Thorough Evaluation .................................................................................................... 6

Step Two – Implement Standards .................................................................................................. 7

Step Three – Enhance existing IS ................................................................................................... 7

3. MAXIMIZING MAINTENANCE OPERATIONS FOR PROFIT OPTIMIZATION ..................... 8

CMMS Benchmarking ........................................................................................................................ 8

CMMS Data Integrity (Accuracy and Completeness of Data) ..................................................... 8

Work Control ..................................................................................................................................... 8

Budget and Cost Control ................................................................................................................. 8

Planning and Scheduling ................................................................................................................. 9

Materials Management .................................................................................................................... 9

Maintenance Performance Measurement ................................................................................... 10

Other Use of CMMS ......................................................................................................................... 10

4. SYSTEM UTILIZATION AND LIFE CYCLE SUPPORT ............................................. 11

5. MAXIMIZING THE BENEFITS FROM CMMS ....................................................... 12

6. USING THE IN-HAND WORK ORDER HISTORY - THE PROCESS ............................... 13

Work Order History benefits ........................................................................................................ 14

7. L&T APPROACH - "BEST OF CLASS” ............................................................ 14

8. MAINTENANCE EXCELLENCE IMPLEMENTATION– AN EXAMPLE .............................. 16

DataStream 7i (Chevron Texaco) ................................................................................................. 16

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1. Introduction

CMMS systems have bought the ability to greatly enhance our efforts in many areas. One of

the widest reaching of all these areas is the ability to standardize the maintenance work

orders via work order templates. If this function is used to greatest effect it is the area

that will best reflect efficiency changes via continuous improvement processes.

The focus of work order templates can be organized into three distinct areas:

Preventative maintenance inspections and overhauls

Corrective actions / repairs leading from equipment failures

Trouble shooting guides for breakdown tasks

In order for the system to be used to its best effect each work order template needs to

contain the following information as a minimum:

Safety information and guides

Known durations

Tools required

Procedures for execution

Information regarding parts and materials that may be required

Tips for more ease of future work

Resource requirements

2. "Best of Class” Maintenance excellence

CMMS programs are touted as tools that provide work, materials and asset management,

along with reporting capabilities to help maximize productivity and service levels,

optimize performance and extend the life of company assets.

CMMS is simply an enabling tool that, when combined with other elements of a well-

rounded maintenance operation, will help achieve the desired levels of performance.

Many companies have spent millions of dollars installing a CMMS and training their people

to use it from a mechanical standpoint. However, they have not taken the critical next

step of incorporating CMMS into a more holistic maintenance work order management

operating methodology that will truly produce results that drive value.

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The following "Best of Class" steps illustrate the components required to attain

maintenance operational excellence. These components are: Fundamentals, which include

basic maintenance processes; Preventive and Predictive Techniques, which focus on the

interface among departments, training, asset management and assessments; and

Optimization, which is the ideal operational state.

The Three big steps are,

1. First, leaders should conduct a true self-evaluation of where the company's

maintenance operation is in relation to where they want or need it to be.

2. Next, they should implement a maintenance management operating methodology

that optimizes available tools and systems to provide good planning, good work

assignment, good follow-up and good reporting.

3. Third, processors should enhance their CMMS to make it user-friendly and enable it

to be a better tool that supports the overall maintenance management

methodology.

Step One – Thorough Evaluation

A thorough evaluation process covers as many as eight areas. They shall include:

Maintenance organization

Maintenance training programs

Work order management

Planning and scheduling

Predictive and preventive maintenance

Maintaining inventory and purchasing

Maintenance reporting

Maintenance automation

The maintenance assessment shall use a series of questions, observations and values to

evaluate each of eight critical elements of maintenance. Once completed, the evaluation

highlights strengths and weaknesses of a company's maintenance practices, pinpointing

exactly where deficiencies exist. The knowledge gained through this process then is used

to determine what needs to be done differently and what tools--in addition to a CMMS--

must be brought into the mix to make the operation more effective

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Step Two – Implement Standards

The key element in a "Best of Class" maintenance system is an effective closed-loop

maintenance management operating methodology that causes companies to do four

things:

Plan and prioritize the work for optimal results.

Assign the work properly to make sure the right skill sets to execute the work

properly are in the right place at the right time.

Follow up to ensure work is being done at the right quality level to achieve a good

outcome and review for real-time analysis and timely corrective action.

Generate reporting that includes Pareto analysis of equipment downtime and

mean-time–to-failure (MTTF), breakdown analyses and cost analyses that

demonstrate how the maintenance operation is performing against the plan.

Step Three – Enhance existing IS

This step is built on the premise that without an effective work management system,

there is no good work order history. Without a CMMS to capture the right equipment

history, a good analysis is not possible, which means accurate MTTF benchmarks do not

exist for use in catapulting a maintenance organization to the second steps: effective

predictive versus reactive maintenance.

So, the third step toward maintenance improvement is enhancing the company's CMMS to

better support the maintenance management operation methodology.

Ensuring that the CMMS is properly configured and populated with accurate, meaningful

information is a critical requirement of this step. For example, every CMMS contains or

should contain a full library of required preventive maintenance steps (PMs). Often, these

PMs are not well written, accurately timed or properly linked to bills of material and parts

planning. Therefore, the PM effort provides little or no real value to maintenance and

operations.

One of the more tedious elements within this step involves making the CMMS more user-

friendly as a glorified work order system. Many of the more robust CMMS packages are

often so cumbersome to operate in their off-the-shelf form that most people will go to

great lengths to avoid using them.

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When the system is customized to become more user-friendly, the work order process now

requires least time to input. Maintenance professionals are no longer frustrated with the

process, and more time is spent on productive maintenance.

3. Maximizing Maintenance Operations for Profit

Optimization

CMMS Benchmarking

This provides a methodology for developing a benchmark rating of your existing CMMS to

determine how well this tool is supporting best practices and the total maintenance

process. It can also be used as a method to measure the future success and progress of a

CMMS system implementation that is now being installed. Maintenance best practices are

the key and the CMMS is the information technology tool that links it all together.

CMMS Data Integrity (Accuracy and Completeness of Data)

Equipment (asset) history data

Spare parts inventory master record

Preventive Maintenance tasks/frequencies data of applicable assets

Direct responsibilities for maintaining parts equipment/asset database and

inventory database to be assigned

Work Control

A work control function to be established or a well-defined documented process

shall be used

On-line work request (or manual system) to be used to request work based on

priorities

Work order system used to account for 100% of all craft hours available

Backlog reports to be prepared by type of work to include estimated hours required

Well defined priority system to be established based on criticality of equipment,

safety factors, cost of downtime, etc.

Budget and Cost Control

Craft labor, parts and vendor support costs are to be charged to work order and

accounted for in equipment/asset history file

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Budget status on maintenance expenditures by operating departments shall be

available

Cost savings & improvements due to CMMS and best practice implementation to be

documented

Deferred maintenance and repairs identified to management during budgeting

process.

Life-cycle costing is supported by monitoring of repair costs to replacement value

Planning and Scheduling

A documented process for planning & scheduling to be established

The level of proactive planned work to be monitored and document the

improvement that occurs.

Craft utilization (true wrench time) to be measured and document the

improvement that occurs.

Daily or weekly work schedules are to be available for planned work

Status of parts on order to be available for support to maintenance planning

process

Scheduling coordination between maintenance and operations shall be increased

Emergency repairs, hours and costs to be tracked and analyzed for reduction.

“Actual wrench time of the maintenance workforce is about 35%“

Source: EPRI Report NP-5159M

Materials Management

Inventory management module to be fully utilized and integrated with work order

module

Inventory cycle counting based on defined criteria to be used and inventory

accuracy to be raised to acceptable limits as defined by the management

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Parts kiting to be used for planned jobs

Electronic requisitioning capability are made available and used

Critical and/or capital spares are to be designated in parts inventory master record

database.

Reorder notification for stock items are to be generated and used for reorder

decisions

Warranty information and status to be available

Maintenance Performance Measurement

Downtime (equipment/asset availability) due to maintenance to be measured and

document the improvement that occurs.

Craft performance against estimated repair times to be measured and document

the improvement that occurs.

Maintenance customer service levels are to be measured and document the

improvement that occurs.

The maintenance performance process is to be well established and based on

multiple indicators compared to baseline performance values

Other Use of CMMS

Maintenance leaders to use CMMS to manage maintenance as internal business.

Operations staff understands CMMS and uses it for better maintenance service.

Engineering changes related to equipment/asset data, drawings and specifications

are to be effectively implemented.

Hierarchies of systems/ subsystems are to be maintained and/or used for

equipment/asset numbering in database.

Failure and repair codes are to be used to track trends for reliability improvement.

Maintenance standard task database are made available and to be used for

recurring planned jobs.

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4. System utilization and life cycle support

Operating the plant within the design parameters supports process reliability during

system utilization. During the previous stages these parameters were defined and used to

develop reliability strategies. It is now required to operate the plant within these

parameters. From a production point of view it is important to operate the plant at most

effective and efficient throughput. From a maintenance perspective, operating the

equipment outside the design parameters may have adverse effects on the equipment

condition. A management system to monitor the operations and flag deviations is

essential.

Work management plays an important role in reducing mean time to repair (MTTR), the

prime measurement for equipment maintainability. Effective management processes and

systems should be followed to ensure that work is identified in time and that the

description is clear enough for the maintenance planner and supervisor to know what must

be done. A suitable and well-defined priority system ensures that high priority tasks are

awarded the necessary attention within the agreed time frame. It also allows for improved

planning and scheduling of less urgent or important tasks. This reduces time wastage and

ensures that resources, both services and material, are available when the job

commences.

The reliability strategies that were developed and entered into the CMMS during the

previous stages are implemented during the system utilization and support phase. These

plans are executed via the work management process as discussed in the previous

paragraph. An important aspect during this stage is the collection of failure data. The

operators gather the data on the plant and feed it into the CMMS in order to build the

foundation for reliability analysis. This data is used to evaluate whether the reliability

strategies are effective or needs to be revised. It is also the source data for conducting

root cause failure analysis with the aim to eliminate defects.

During this stage, both online condition monitoring and scheduled condition-based

maintenance tasks must be diligently executed, monitored and corrective actions taken

when deviations occur.

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Operational Reliability essential elements

5. Maximizing the Benefits from CMMS

Today’s information technology for CMMS/EAM offers the maintenance leader an

exceptional tool for managing the overall Maintenance operation and maintenance

processes as an internal business and “profit center”.

Improved Work Control

Improved Planning and Scheduling

Enhanced Preventive and Predictive Maintenance (PM/PdM)

Improved Parts and Materials Availability

Improved Materials Management

Improved Reliability Analysis

Increased Budget Accountability

Increased Capability to Measure Performance and Service

Increased Level of Maintenance Information

•Maintenance Strategy for assets

•Maintenance effectiveness feedback

•Extending the MTBR

•Operating with the design specification

•Process and procedure understanding of workforce

•Built in reliablity from the design phase

•Multi Skilling through online training

•Shortening of MTTR

•Involment in maintenance plans

•Ownership of Operational assets

•Interface with management activities

HUMAN RELIABLITY

EQUIPMENT MAINTAIN ABILITY

EQUIPMENT RELIABILITY

PROCESS RELIABILITY

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6. Using the In-Hand Work Order History - The Process

The Functional Location has one or many pieces of physical equipment that serves the

function. If the notification does not specify the equipment number of the asset being

addressed, it makes it extremely difficult to record history and to analyze the data.

Maintenance history (PM history) is important for the following reasons:

1. Recording maintenance activities: From the point of view of system safety, it

must be possible to prove that the maintenance and inspections requested in the

past were actually carried out.

2. Investing in replacements: The history of a technical object contains important

information on investing in replacements. Apart from cost factors, information on

breakdown behavior and damage frequency can have a considerable influence on

decisions regarding new investments.

3. Repetitive planning: A detailed history is very beneficial to maintenance planning.

Analyzing completed orders enables comparisons to be made between plants,

technical systems, equipment or assemblies in order that conclusions may be

drawn on how to create an optimum PM strategy. For the short-term planning of

individual orders, you can refer to a similar historical order and thus considerably

simplify and speed up the planning process for the current order.

A good PM history must facilitate a differentiated analysis that is object-specific, function-

related or task-oriented and thereby provide answers to the following:

At which functional locations was a particular piece of equipment installed in

recent years? What was its breakdown behavior in relation to the usage site?

(object-related history)

What pieces of equipment were installed at a particular functional location in

recent years? Were pieces of equipment from different manufacturers suited

equally well to this functional location? (function-related history)

At which functional locations or pieces of equipment was a particular problem or

type of damage established in recent a year, that was repaired by installing a

replacement material? (task-related history)

Escalations can be used to monitor for conditions that need further evaluation or follow-

up

Corrective Work Order against a Location without a criticality assigned

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Failure Mode identified on a Corrective Work Order on a Critical/Important

Location that has not been previously added to the FMEA matrix

Failure Mode identified on a Corrective Work Order on a Critical/Important

Location that has a PM linked for prevention

PM tasks that are not linked to the prevention of any Failure Modes

Work Order History benefits

Various Benefits on maintaining History are:

Actual to Estimate or Actual to Standard

Multiple Production Targets

Multiple Cost-Capture Methods

Redirection of Production

Event History

7. L&T Approach - "Best of Class”

The below diagram would depict L&T’s proposed approach on "Best of Class” Maintenance

Excellence model for a PM life-cycle management.

The proposed “Best of Class” model for the process industry integrates the different

framework and 3 big steps for excellence that has been discussed above. Thereby, the

model consists of three steps the maintenance management framework, the process

excellence and operational reliability. The model is further described based on the

different components of operational reliability and lean sigma CI methods.

The components that are implemented by L&T on various programs for process industries

are highlighted in green. The core capabilities of L&T on maintenance excellence are

provided in blue and the potential future engagements or areas of interest are given in

black.

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L&T’s proposed approach on "Best of Class” Maintenance Excellence

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8. Maintenance Excellence Implementation– An example

An engagement on Maintenance Excellence for Chevron Texaco Company by L&T is

provided below.

DataStream 7i (Chevron Texaco)

About DataStream 7i - In 2006 Infor acquired DataStream. DataStream 7i, the leading

CMMS/EAM software is now Infor EAM, a flexible, powerful and proven Enterprise Asset

Management system. It gives you control and visibility of your operating and maintenance

costs as well as energy consumed by your assets.

More than 10,000 organizations worldwide are already using Infor EAM to better manage,

maintain, and track their assets. Infor EAM has industry specific functionality designed to

help manufacturing, facilities management, life sciences, fleet/transportation, and public

sector organizations solve their critical asset performance challenges.

The engagement model was primarily for:

Asset Management – Identifies, tracks, locates, analyzes, warranty tracking

Work Management – Work orders, PM’s, history, scheduling

Inspection Management – Condition based and risked based management of assets

Materials Management – Streamlines

Data Collection – Allows automated collection of data (meters, PLC readings, work

orders, etc.)

With Infor EAM (formerly DataStream 7i), companies can expect results such as:

15% improvement in asset utilization

5% improvement in equipment reliability

20% improvement in labor productivity

20% reduction in inventory carrying costs

50% increase in warranty cost recovery

50% reduction in purchasing process costs

5% improvement in quality of output

30% reduction in spare parts inventory levels

20% Reduction in energy consumption

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DataStream Dashboards & Scorecards

Balanced Scorecard and personalized dashboard for viewing Maintenance Scoresheet.

The Scorecard displays both commercial & operational reports in customized forms per

asset’s requirement

Historical Review

Ability to quickly find what the root problem is and correct the problem rather than “band

aiding” - System actively tracks and analyzes failures allowing preventative maintenance

rather than crisis management

About L&T Technology Services

L&T Technology Services is a wholly-owned subsidiary of Larsen & Toubro with a focus

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highly skilled professionals, 11 global delivery centers and operations in 35 locations

around the world, we constantly find flexible ways of working, tailored to our

assignments and customer needs.

For more information, visit us at www.lnttechservices.com

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