Identifying, Mitigating and Eliminating Risk with an Asset Management Strategy

Risk Based Asset ManagementRisk-Based Asset Management
Identifying, Mitigating and Eliminating Risk with an AssetIdentifying, Mitigating and Eliminating Risk with an Asset
Management Strategy
Mike Poland, CMRP, Life Cycle Engineering
1© Life Cycle Engineering 2013© Life Cycle Engineering 2013

Introduction
Name tent introduction
Teambuilding/Grouping activity
Course learning objectivesCourse learning objectives
Participant expectations
2© Life Cycle Engineering 2013

Learning Objectives (1 of 2)
1. Describe the four phases in implementing a risk-
based asset management programbased asset management program
2. Demonstrate how to effectively classify assets
a. Create asset catalogs
b. Develop a functional hierarchy
3. Demonstrate methods for analyzing assets
a. Perform a criticality analysis
b. Create a functional block diagram
c. Perform a failure mode and effects analysis

Learning Objectives (2 of 2)
4. Map control strategies to predominant failure
modes
a. List elements of an effective job plan (PM)
b. Develop task modules for a maintenance
plan, including resource planningp , g p g
5. List key performance indicators to effectively
measure control strategiesg
6. Calculate overall equipment effectiveness

The Model:The Model:
Risk-Based Asset Management
SStrategy

Risk-Based Asset Management Model
•Learning to
OPERATIONAL STABILITY
Learning to
See MeasureMeasureControlControlAnalyzeAnalyzeClassifyClassify
Process Flow Diagram
Value Stream Mapping
Relationship Models
Equipment Criticality
Failure Analysis
Risk Analysis
Standard Work
Operating Procedures
Preventive
Predictive
Condition Monitoring
R t M it i
OEE
TCO
Asset Utilization
MTBFy
Risk Ranking
Remote Monitoring
Operator Care
Critical Spares
MTBF
MTTR
Continuous ImprovementContinuous Improvement
PlanPlan DoDo CheckCheck ActAct

Strategy documented in a planStrategy documented in a plan
Asset Management Plan Key
CComponents

Key Components
• Asset Operation Planp
• Asset Risk Plan
• Asset Maintenance Plan• Asset Maintenance Plan

Asset Management Plan
Asset
Operations Plan
Asset
Maintenance Plan
Asset
Risk Plan
Operating Parameters
Planned Utilization
Maintenance Parameters
Asset Hierarchy
Risk Parameters
Risk strategy, tolerance
Staffing Requirements
Raw/WIP Materials Requirements
Materials Handling Requirements
Energy/Utilities Requirements
Continuous Operating Hours
Production Schedule Variation
Criticality Ranking Index
Failure Modes and Effects
Maximum Continuous Operation
Mean-time-between-failure
Mean-time-between-maintenance
Mean-time-to-repair
Risk definition and categorization
Loss data collection
Risk indicator data collection
Control self-assessment
Risk assessment and analysis
Expected/Unexpected
Incoming Materials Specifications
Finished Products Specifications
Production Minimum Lot Size
Planned Capital Life
Performance Variables (KPIs)
Performance Tracking Process
p
Mean-time-to-rebuild
PM/PdM Requirements
Overhaul/Rebuild Requirements
Skills/Staffing Requirements
Anticipated Useful Life
Expected/Unexpected
Loss Control Scores
Real exposures
Controls quality
Cost benefit analysis
Risk mitigation and transferPerformance Tracking Process
Business Risk Assessment
Reliability Risk Assessment
Standard Work
strategy
Standard Work

The Asset Operation Plan
• Standard operating proceduresp g p
• Start-up / Shut–down procedures
• Materials procedures• Materials procedures
• Operator care procedures

The Asset Risk Plan
• Risk identification
• Risk analysis
• Risk mitigation
1. Identify
the Hazards
6.
Supervise
and Review
Risk mitigation
• Communication
plan
2. Assess
the Risks
5.
Implement
Risk
Controls
plan
• Risk management
table
3. Analyze
Risk Control
Measures
4. Make
Control
Decisions
table

The Benefits of Risk Management
MANAGEMENT
• Awareness of real
exposures
INFORMATION
• Expected Loss –
how much do I lose
on average?
• Unexpected Loss
DATA
exposures
• Knowledge of
controls quality
• Cost benefit analysis
• Improved risk
mitigation and
Eco
FOUNDATION
• Risk strategy,
tolerance
• Unexpected Loss –
how much I could
reasonably expect
to lose in a bad
year?
• Control Scores –
• Loss data collection
• Risk indicator data
collection
• Control self-
assessment
mitigation and
transfer strategy
onomicPro
• Roles and
responsibilities
• Policies and
procedures
• Risk definition and
categori ation
how good are the
controls I have in
place?
• Risk assessment and
analysis
• Automatic notification
• Follow-up action
reports
ofit
© American Society for Quality
categorization
Management & Control Quality

The Asset Maintenance Plan
The Infrastructure:
• Database development• Database development
• Asset definitions
• Required attributes
• Functional/Reliability block diagramsy g
• Hierarchy development
• Criticality analysis• Criticality analysis
• Failure mode and effects analysis

Task module creation
• Mapping failure modes to failure detection• Mapping failure modes to failure detection
methods
R b ild/R f bi h t it i• Rebuild/Refurbishment criteria
• Assigning crafts and trades
• Determining frequency
• Establishing durationsEstablishing durations
• Level loading tasks

Developing preventive maintenance tasksp g p
• Failure-based
• Comprehensive procedureComprehensive procedure
• Organized structure
• Repeatable results
• Acceptance criteria

Predictive technologies – the big 5g g
1. Thermography
2 Oil analysis2. Oil analysis
3. Ultrasonic analysis
4. Vibration analysis
5. Motor Current analysis

MRO supportpp
• Developing bill of materials
• Determining critical spare part thresholdsDetermining critical spare part thresholds
C ti i tContinuous improvement
• Value metrics
• Feedback process

•Learning to
See MeasureControlAnalyzeClassify
Relationship Models
Failure Analysis
Risk Analysis
Risk Ranking
Standard Work
Preventive
Predictive
Remote Monitoring
Operator Care
OEE
TCO
Asset Utilization
MTBF
MTTROperator Care
Critical Spares
Continuous Improvement
Plan Do Check Act
Classify Phasey
Value Stream Maps

Classify Phase
• Process flow diagramsg
• Value stream maps
• Asset catalogsAsset catalogs

• A pictorial representation of the flow of
material and information as the product is
being built
• Follow a product’s production path from
beginning to end, and draw a visual
t ti f i threpresentation of every process in the
material and information flows
D “f ” f h l• Draw a “future state” map of how value
should flow

VSM Icons

Current State Mapping
• Understand how the shop floor currently
operates
• Material and information flows
• Start with the “door to door” flow
• Draw using iconsDraw using icons
• Walk the flow and get actual numbers
N t d d ti• No standard times
• Draw by hand with pencil

Current State Map
Supplier Customer
Quarterly Forecast
Daily Ordering
Monthly Forecast
Weekly Deliveries
Planning & Control
25 / Day
Weekly
Shipments Weekly
S h d l
Daily Ship
S h d lSchedule ScheduleDaily
Check
68Parts
C/T = 12 min
C/O = 0 min
U/T = 85%
OP60
(Ship)
OP50OP40OP30OP20OP10
10Parts
5Parts 4Parts 12Parts 8Parts
C/T = 21 min
C/O = 0 min
U/T = 85%
C/T = 21 min
C/O = 0 min
U/T = 85%
C/T = 21
min
C/O = 0 min
C/T = 24 min
C/O = 0 min
I
IIIII
U/T 85%
12 min
0.32days0.4 days
21 min
0.2 days
21 min
0.16 days 0.48 days
21 min 24 min 99 min
4.28 days
U/T = 85% U/T = 85% C/O = 0 min
U/T = 85%
C/O 0
U/T = 85%
Takt Time = 450min /25 pieces = 18
2.72 days
a t e 50 / 5 p eces 8
min

•Learning to
Relationship Models
Failure Analysis
Risk Analysis
Risk Ranking
Standard Work
Preventive
Predictive
Remote Monitoring
Operator Care
OEE
TCO
Asset Utilization
MTBF
MTTROperator Care
Critical Spares
Plan Do Check Act
Classify Phase:y
Hierarchy Development

Hierarchy Development
Hierarchy is the systematic classification ofy y
items into generic groups based on factors
possibly common to several of the items
( )(location, use, equipment subdivision, etc.) in
a parent – child relationship.

Functional Hierarchy
(1)
Business
Category
(2)
tionData
Discuss this model and the
Functional Hierarchy
Guidelines in your(2)
Installation/
Business Unit
(3)
Cost Center/ Op Unit
Use/Locat
Guidelines in your
workbook (pg. 7)
(4)
Function
(5)
System
n
System
(6)
Sub system/asset
ntSubdivisio
(7)
Component/Maintainable Item
(8)
Part/ BOM
Equipmen
Part/ BOM

Functional Hierarchy Activity
1. Join into groups
2. Determine a system where an air compressor
would be in operation
3. Refer to the compressor user guide
4. Create a functional hierarchy, mapped to they, pp
motor as the lowest maintainable asset
a. You can use the pyramid model, levels 1-9y
to organize your hierarchy

Client - 1 Company
ABC
Hierarchy
Facility - 2
ABC
Plant ABC
y
Answer
Key
Building - 3
Function - 4
Building 312
Distribution
y
System - 5
Distribution
Pneumatic Drive
S t
Sub-system - 6
System
Air
Compressor
Component - 7
Part /BOM - 8
Motor
Gasket

Asset Definition
• Once the hierarchy is established, the level 7y ,
components are standardized into asset types
and minimum attributes are assigned to
support:
– BOM development
– PM/PdM development
– Failure analysis

Asset Data
Detailed information such as:
• Asset criticality
• Nameplate dataNameplate data
• Engineering specification
• Property detailProperty detail
• Other searchable characteristics

Data Collection Guidelines
• Workbook has Data
Collection
Guidelines for
reference (pg 9)reference (pg. 9)
• Discuss
– Data collection
process
– Field data gathering

•Learning to
Relationship Models
Failure Analysis
Risk Analysis
Risk Ranking
Standard Work
Preventive
Predictive
Remote Monitoring
Operator Care
OEE
TCO
Asset Utilization
MTBF
MTTROperator Care
Critical Spares
Plan Do Check Act
Analyze Phase:y
Criticality Analysis

Criticality Analysis
• Criticality is defined as a state of importance.y p
• As a measure, it represents the severity of a
failure in relation to its consequences.q
• Equipment criticality is a ranking reflecting the
magnitude of the consequences resulting frommagnitude of the consequences resulting from
an equipment failure.

Contributors to Criticality
Consequences usually considered are theq y
impact on:
• Environment
• Health
• Safetyy
• Production or value stream
• ReputationReputation

Criticality Thought Process
Determining function of equipment, system, item
process, etc.
Is it main equipment or an auxiliary item?
Is it a unique Item or common with others?
Redundancy – Duplication – Alternative
Do you have a standby backup?
Do you have alternative means to continue normal operation?
What is the likelihood of a failure mode occurring?
(High/low)
Consider history of failures for equipment
Consider possibility and frequency of failures
What are the consequences of failure?
Any production losses as a result of failure? How much?
Any safety, environmental, or business losses as a result of
failure?
What is the likely period out of operation?
Can the repair be done on site?
Are spare parts available? How long to get parts if not in
stock?
What is the longest time for repairing the failure?
What is the longest time for repairing the failure?

•Learning to
Relationship Models
Failure Analysis
Risk Analysis
Risk Ranking
Standard Work
Preventive
Predictive
Remote Monitoring
Operator Care
OEE
TCO
Asset Utilization
MTBF
MTTROperator Care
Critical Spares
Plan Do Check Act
Analyze Phase:
Failure Mode and Effects Analysis
(FMEA)

Block Diagrams
• The precursor to developing a functionalp p g
hierarchy and a maintenance strategy is the
functional and reliability block diagrams.

Block Diagrams
• Functional and reliability block diagramsy g
illustrate the operation, interrelationships, and
interdependencies of functional entities.
• More than one block diagram will usually be
required to display alternative modes of
operation, depending upon the definition
established for the system.

Functional Block Diagram: Purpose
• The primary purpose of the functional blockp y p p
diagram (FDB) is to ensure that the RE
determines all of the functions provided by and
/within the asset and/or system so that
functional failures can be determined and
analyzedanalyzed.

FBD: Description
• Shows major system components, their functional
relationships to one another, and the incoming and
t i i t foutgoing interfaces.
• Includes:
– Interfaces to distributive systemsInterfaces to distributive systems
– Interfaces between subsystems
– Power, data, and structural interfaces
Out interfaces represent active functions– Out interfaces represent active functions
– Passive functions, such as containment of fluids, may be
internal to the functional block diagram
Note: For purposes of failure analysis, the RE assumes that
all incoming functions are available

FBD Example
Temperature& Pressure Readout
Instrumentation& Monitors
20
Automatic Shutdown
Signals
(Temperature & High Pressure)
Signal to Control Valve
Electrical
Control
Motor
10
Electric Power Pump
50
High
Pressure
Torque
Pressure Control
Valve
Bearing
Lubrication
System
30
50
Oil Mist
Water60
Fresh Water
Sump
Fresh Water Suction
40
Clean Fresh Water
Strainer

Functional Block Diagram Activity
1. Join with a partner or group
2. Distribute the air compressor user manual (handout)
3 Review the user manual3. Review the user manual
4. Draft an FBD for the air compressor
a Sho major s stem componentsa. Show major system components
b. Show relationships between systems
c. Show ingoing and outgoing interfaces

Answer – FBD Activity
PRESSURE
READOUT
INSTRUMENTATION
&
AUTOMATIC
STARTUP
MONITORSSHUT DOWN
ELECTRIC
CONTROL
MOTOR COMPRESSOR PRV
120
VAC
TORQUE PRESSURIZED
AIR
CUT IN
95 PSI
PRESSURE
RELIEF @
125 PSI
TANK
2 GALLON CAPACITY

FMEA
• Developed by US military and standardized byp y y y
automotive industry
• Top-down method
• Based on industrial and in-plant historical data
• Generally limited to major sub-systemsy j y
Can include components, but failure modes,
probability of failure, etc. based on experience, not
b bilit t blprobability tables

Example Of FMEA Analysis
Pass out completed example FMEA for class to see
OR show onscreen example (RBAM FMEA completed example)

Terms
• Occurrence ranking:g
– A subjective estimate of the probability that
a failure mode will occur.
– What different variables or factors are
involved in determining occurrence?

Terms
• Detection ranking:g
a cause of a potential failure will be
detected and corrected before reaching the
end user.
a cause of a potential failure will be
d t t d d t d b f f ildetected and corrected before a failure can
occur.

Terms
• Risk Priority Number (RPN):y ( )
– The product of severity, occurrence, and
detection rankings
– Severity x Occurrence x Detection = RPN
– Sometimes divided by 30 to give you a 100– Sometimes divided by 30 to give you a 100
scale

Uses of FMEA
1. Root-cause failure analysis
a Methodology for understanding potential forcing functionsa. Methodology for understanding potential forcing functions
that caused problem
2. Drives preventive maintenance programp p g
a. Identified forcing functions and failure modes determine the
specific PM inspections that should be done to preserve the
asset and prevent failures
3. Drives asset management program
a. Determines the fundamental requirements, e.g. operations
and maintenance, for the asset
4. Drives asset utilization plans

Uses of FMEA
5. Drives modifications and upgrades
a. Many of the identified forcing functions
and failure modes can be eliminated by
specific modifications or changes inspecific modifications or changes in
design
6 Drives standard work practices (SWP)6. Drives standard work practices (SWP)
upgrades
a Forcing functions or failures caused bya. Forcing functions or failures caused by
setup or operating methods can be
eliminated

Reliability Engineering FMEA
• Engineer must understand the machine org
production system
– Machine or operating dynamics
– Inherent design strengths and limitations
– Failure modes of components, sub-assemblies andp ,
systems
• Requires homework and self-study to gain thisq y g
knowledge

Reliability Engineering FMEA
• Must be driven or supported by data
– Focus Team FMEA relies exclusively on “native
knowledge”
– Engineering FMEA also uses, but all three criteria
must be verified using existing historical data
• Level of detail must be as good as can be
accomplished
– Focus Team uses 80-20 rule
– Engineering must strive for at least 90-10

FMEA Activity: Air Compressor
1. On the FMEA form (handout) list two
t ti l f ti l f ilpotential functional failures
2. List five possible failure modes for any of the
functional failures of the compressorfunctional failures of the compressor
a. See functional block diagram and list of
failure mode descriptors in workbookfailure mode descriptors in workbook
3. Input failure effects into the form
f f4. Input failure causes into the form
5. Enter data given in instructions to calculate
RPN
RPN

•Learning to
Relationship Models
Failure Analysis
Risk Analysis
Risk Ranking
Standard Work
Preventive
Predictive
Remote Monitoring
Operator Care
OEE
TCO
Asset Utilization
MTBF
MTTROperator Care
Critical Spares
Plan Do Check Act
Control Phase:
Effective Job Plans

The PM Process
PlPlan
DoAct
CheckCheck

The PM Program
High
Op
Total Maintenance Cost
BLost Production
peratingBudget
Proactive
Maintenance
B
MaintenanceCost
Lost Production
Caused by Failures
Lack of PM Access
M
ts
Cost of PMCost of Repairs
Maintenance
Budget
Level of MaintenanceLow High
Low

Three Phases of PM
DetectionDetection
• The key element
Analysis
• Defines the specific problem from
hi h th t i i twhich the symptom originates
Correction
• The return of the PM/PdM
investment

Understand Degradation Process
Avoid consequence of failure
Functional failure-
System not meeting
All requirements
Onset of failure
Detect potential failure-
system meeting all
requirements
Cond
qequ e e ts
dition
Maintenance
Window
Pending Failure
not detected
Broken
Time
Window
“PF interval" Performance
Losses
Source: Ivara Corp, Hamilton, Ontario
Time

P-F Interval Curve and Domains
Changes in Vibration P-
F interval 1-9 months
Thermography Thermal
Anomalies interval 1-3 months
Acoustic
Emissions
Ultrasound
Wear Debris in oil
interval 1-6 months
Audible noise P-
F interval 1-4
Ultrasound
interval 1-10
months
P2P1
weeks
Heat by touch P-
F interval 1-5
days
P3
P2
days
Predictive
Domain
Protective
Domain
Failure
(bearing seizes)
PLUS F
Elimination
Program
Identification
program
Collateral Damage
Source: Allied Services Group

PM Inspection Results
• Inspection feedback is essential
• Feedback should identify potential
equipment conditions needing correctiveequipment conditions needing corrective
action
Th b f ti k d• The number of corrective work orders
helps to refine the PM program
• Rule of thumb: Every six inspections
should result in one corrective work order

•Learning to
Relationship Models
Failure Analysis
Risk Analysis
Risk Ranking
Standard Work
Preventive
Predictive
Remote Monitoring
Operator Care
OEE
TCO
Asset Utilization
MTBF
MTTROperator Care
Critical Spares
Plan Do Check Act
Control Phase:
Maintenance Plan Task Modules

Task Creation Guidelines
• Step-through Task Creation Guidelines sheet in
workbook (pg. 19)
• Review the Example Task Module on next slide
(pg. 24)

Example Task Module
EQUIPMENT NUMBER DESCRIPTION LOCATION DOCUMENTATION VALIDATED
ITEM#
FREQUENCY
(Days)
CRAFT
CRAFTSMEN
REQD
EQUIPMENT
CONDITION
TYPE
EST.TIME(Hrs)
ANNUAL(Hrs)
01 1 ENG/RM 1 RUNNING PM 0DAILY SERVICING ROUTINES
305-2-1 Disc Brake System Drill Floor Maintenance Manual
SPECIAL TOOLS/MATERIALS
REMARKS
305-2-1 Drawworks, Dreco SSGD-750-GE Drill Floor General Service Manual
MAINTENANCE TASK DESCRIPTION
PROCEDURE/
TASK#
01 1 ENG/RM 1 RUNNING PM 0
02 7 ENG/RM 1 SHUTDOWN PM 0
04 90 CE 1 SHUTDOWN PM 0
CHECK DISC BRAKE FRICTION PADS, CHECK LUBE OIL PUMPS, CHECK
HYDRAULIC OIL PUMPS AND ACCUMULATOR BOTTLES, LUBRICATE TORQUE
ARM AND INSPECT WIRE ROPE
INSPECT LUBE OIL DISTRIBUTION LINES, CHECK GEAR OIL SPRAY NOZZLES,
CHECK OPERATION OF HYDRAULIC PUMPS, INSPECT DRAWWORKS DRIVE
GEARS, INSPECT THE TORQUE ARMS, OBTAIN LUBE OIL AND HYDRAULIC OIL
INSPECT INTEGRITY OF ELECTRICAL COMPONENTS
DAILY SERVICING ROUTINES
WEEKLY SERVICING ROUTINES
VERIFY OPERATION OF ISOLATION BARRIERS, CHECK PRESSURE
SAMPLE, REMOVE AND REPLACE LUBE OIL FILTER ELEMENT, REMOVE AND
REPLACE HYDRAULIC OIL FILTER ELEMENT
INSPECT GEARS, CHECK HIGH SPEED GEAR WOBBLE, CHECK PINION GEAR
BACKLASH, CHECK PINION GEAR TOOTH CONTACT, INSPECT, DISASSEMBLE
AND CLEAN LUBE OIL COOLING PLATE HEAT EXCHANGER, INSPECT PIPING,
HOSES, CONNECTIONS AND FOUNDATION FASTENERS, DRAIN AND FLUSH
HYDRAULIC POWER UNIT, CHECK BRAKE CALIPER DELAY SYSTEM, CHECK
BRAKE DISK CONDITION AND NDE INSPECTION OF FOUNDATION BOLTS
07 360 CE 1 SHUTDOWN PM 0
PERFORM COMPLETE OVERHAUL AND NDE OF DRAWWORKS ASSEMBLY,
REMOVE AND REPLACE HPU AND HYDRAULIC SYSTEM HOSES, REPLACE
DRAWWORKS BRAKE CALIPER SPRING PACKS, NDE CALIPER PISTONS, NDE
CALIPER MOUNT AND GUIDE BARS CHECK BRAKE CALIPERS ALIGNMENT
PERFORM CONDITION EVALUATION OF DRAWWORKS PRIOR TO SPS - TO
DETERMINE OVERHAUL REQUIREMENTS
TRANSMITTERS, TEMPERATURE SWITCHES, LEVEL SWITCHES, DIFFERENTIAL
PRESSURE SWITCH, VALVE ON/OFF SOLENOID, HAND OPERATED SWITCH,
ENCODER AND DEADLINE ANCHOR PRESSURE TRANSMITTER
0.0
0.0
0.0
0.0
CALIPER MOUNT AND GUIDE BARS, CHECK BRAKE CALIPERS ALIGNMENT,
INSPECT DRAWWORKS LUBRICATION SYSTEM, CHECK LUBE OIL PRESSURE
RELIEF AND FLOW CONTROL VALVES, AND NDE FOUNDATION BOLTS AND
SKID WELDS
ANNUAL SCHEDULED MAINTENANCE HRS
ANNUAL SHUTDOWN HRS
ANNUAL SENIOR TOOLPUSHER/DRILLING HRS
ANNUAL CHIEF ENGINEER/MECHANIC HRS
0.0
0.0
ANNUAL CHIEF ELECTRICIAN HRS
ANNUAL 3RD PARTY HRS

Task Module Activity
• Join in groupsg p
• Draft at least four maintenance tasks into the
blank Task Module Worksheet (workbook,
pg.25)
• Resources:
– Task Module Guidelines (workbook)
– Compressor user guide
– Example task module

•Learning to
Relationship Models
Failure Analysis
Risk Analysis
Risk Ranking
Standard Work
Preventive
Predictive
Remote Monitoring
Operator Care
OEE
TCO
Asset Utilization
MTBF
MTTROperator Care
Critical Spares
Plan Do Check Act
Measure Phase:
Key Performance Indicators

Which Measures to Use?
• Review the KPI
definitions in o r
KPIs for your RBAM
definitions in your
workbook as we
detail each KPI (pg.
program:
• OEE
28)
– Formula
– Purpose
• Maintenance cost
per RAV
Purpose
– Data source
– Links to business
RASI
• PM compliance
– RASI
– Frequency

Maintenance Cost per RAV
Total Maintenance Cost
Replacement Asset Value (RAV)
• Total Maintenance Cost: all labor, material,
and contract services required to maintain
facility assets
• Replacement Asset Value: value of replacing
i ti t t t t ti texisting assets at current construction costs,
using like technologies

Review other KPI elements
Maintenance Cost per RAV:p
– Data source
– Links to businessLinks to business
– RASI
– FrequencyFrequency

PM Compliance
# of Scheduled PM Work Orders Completed
# of Scheduled PM Work Orders
The acceptance criteria should be within 10% of
the scheduled frequency of the PM.
For example, for a monthly (30 day) PM work
order to be considered an “on-time
l ti ” it ld b li h d ithicompletion,” it would be accomplished within
3 days (plus or minus) of the scheduled date.

Review Other KPI Elements
Predictive Maintenance Compliance:p
– Data source
– Links to businessLinks to business
– RASI
– FrequencyFrequency

•Learning to
Relationship Models
Failure Analysis
Risk Analysis
Risk Ranking
Standard Work
Preventive
Predictive
Remote Monitoring
Operator Care
OEE
TCO
Asset Utilization
MTBF
MTTROperator Care
Critical Spares
Plan Do Check Act
Measure Phase:
Calculate OEE

Measuring Losses from Ideal (Lean)
PerformancePerformance
Theory Of Constraints
10% 10%
100%
15%
20%
15%
10%
15%
10% 10%
20%
25%
80%
90%
Time Loss
10%
20%
15%
10%
20%
5%
5%
10%
10%
10%
60%
70%
Time Loss
Rate Loss
Yield Loss
No Demand
Asset Utilization
10%
5%0%
40%
50%
30%
Step #1 Step #2 Step #3 Step #4 Step #5
Manufacturing Process Steps
CustomerRAW
Manufacturing Process Steps

Uptime (OEE)
Operating Time
Scheduled Time
Uptime (%) =
Note: Uptime only excludes “lack of sales/demand”
Scheduled Time
p y

Rate
Average Rate
R t (%)
Best Demonstrated or Design
Rate
Rate (%) =
Note: The Best Demonstrated Rate or Design Rate,
use the greater of the two. Best Demonstrated
corresponds to three highest consecutive days (1% of
annual time). If data is only available by week, then
use best one week (2%).

Quality
First Pass Units
*Q lit (%)
First Pass Units
Total Units
*Quality (%) =
Note: The FPQ corresponds to the volume
(Units) of product within specification when the(Units) of product within specification when the
material leaves the production line or machine,
compared to the total volume (Units) quantitycompared to the total volume (Units) quantity
processed by the production line or machine.
* Place holder term sometimes referred to as yield
Place holder term sometimes referred to as yield

Daily Logging OEE
Review the OEE Daily Log sheet in your workbook forReview the OEE Daily Log sheet in your workbook for
an example of how to calculate OEE on a daily
basis (pg. 31).

OEE Calculator Activity
• Calculate the business case potential for OEEp
using the OEE Calculator activity in your
workbook (pg. 32).
• What do the results tell you about how to use
OEE to manage your program?

OEE Scenario Activity
1. Read the OEE
scenario in yourscenario in your
workbook (pg.
33).
2. Determine the
OEE for the
d ti liproduction line.
3. Graph the asset
tili ation lossesutilization losses
per the
scenario.
scenario.

Making OEE a Leading, Visual Indicator
ng
r
and
ator
led
me
uled
me
over
of
al
ct
Operati
Hour
NoDema
NoOpera
Schedu
Downtim
Unsched
Downtim
Change-o
Lacko
Materia
Defec
U
C
1 X X X
2 X X
3 X
4 X
5 X X
6 X
7 X X
8 X
8 X

Total Cost of Ownershipp

TTotalCCostoffOwnnershipp

The Four Phase RBAM Model:
R i d A ti PlReview and Action Plan

RBAM Four Phase Review
OPERATIONAL STABILITY
•Learning to
Relationship Models
Failure Analysis
Standard Work
Preventive
Predictive
C diti M it i
OEE
TCO
Asset UtilizationRelationship Models
y
Risk Analysis
Risk Ranking
Remote Monitoring
Operator Care
Critical Spares
Asset Utilization
MTBF
MTTR
Plan Do Check Act

RBAM Action Plan
• Use the four-phase template in your workbook to
develop an action plan (pg.34). Include:
– Activities to target in all four phases: classify,
analyze control measureanalyze, control, measure
– Specific actions you will take in the next 30
days to support RBAMdays to support RBAM
– Support you will need to build the RBAM
program at your site
• Debrief your plan to the class

Congratulations!
Celebrate learningg

Thank You!
Interested in learning more?
Mike Poland CMRPMike Poland, CMRP
Dir., Asset Management Services
MPoland@LCE.com@
www.LCE.com
Visit Life Cycle Engineering at Booth #908

Identifying, Mitigating and Eliminating Risk with an Asset Management Strategy

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