lowering life cycle costs: from front end planning to a zero shutdown goal
TRANSCRIPT
Lowering Life Cycle Costs: From Front End Planning to a Zero Shutdown Goal
Rich Tree & Lou Traglia Commissioning Agents, Inc.
Agenda • The Problem with Equipment
– Life Cycle Costing (LCC) and the Decisions of Factory/Line Design
• Front End Planning (FEP) – Maintenance Prevention
• Shutdowns – Current State of Industry – Cost of Shutdowns – Why Maintenance Should Never Drive Shutdowns
• Linking FEP, LCC, and Shutdowns – The Future State
The Problems We Face With Equipment
Problem 1.Difficult to Operate 2.Difficult to Maintain 3.Chronic Defects 4.Many Adjustments 5.Complicated Design 6.Difficult to Achieve High Initial OEE 7.Unsafe – Not Failsafe
Impact on LCC Need more manpower – ↑RC Requires High Maintenance Costs – ↑RC Increases Cost of Goods - ↑RC Needs more costly manpower - ↑RC Increase equipment cost - ↑IC and more breakdowns, ↑RC ↑IC & ↑ RC Accidents - ↑RC
𝐿𝐿𝐿𝐿𝐿𝐿 = �𝐼𝐼𝐿𝐿 + �𝑅𝑅𝐿𝐿
IC = Initial Costs RC = Running Costs
Empirical Life Cycle Cost Profile
Production Friendly Equipment
Front End Planning – Maintenance Prevention
Construction Industry Institute (CII) Research Benchmarked over 600 projects: • $37 billion total project costs Average results of “good” FEP effort: • Costs: 10% lower overruns • Schedule: 7% shorter delivery • Changes: 5% fewer
Maintenance Prevention (MP) Design:
What is a Shutdown & How Much Does it Cost?
How much does an hour of downtime cost your company in lost revenue?
$500,000,000𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟365 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑦𝑦𝑑𝑑𝑦𝑦 × 24 ℎ𝑦𝑦𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑
=$57,078ℎ𝑦𝑦
Problems with Shutdowns
Prevailing Drivers for S/D • Preventive Maintenance • Corrective Maintenance • Projects • Fear?
Issues • Lost Production/Lost Revenue • Durations not Restrained
– S/D go for Weeks/Months – Relied Upon
• Disruptive to Operations Flow • Maintenance Efforts Often Induce
Problems • HR Challenge • Encourages Poor Planning &
Scheduling
Why Routine Maintenance Should Never Drive Shutdowns
Common Industry Maintenance Practices: • Routine elastomer replacements • Mechanical seal replacements • Heat exchanger pressure tests • Routine Derouging/Passivation • AHU pre-filters/belts • Cleanroom/HEPA Testing All driven by overly conservative thinking. Need to use risk-based and evidence-based decision making
2011 BioForum Operation Group non-scientific survey of their membership
“Have the right spare parts on hand, have at least two weeks of your backlogged maintenance planned and do the maintenance when the opportunity arises – that is the essence of good planning…”
Optimize Maintenance
Future State –The Drive to Zero Shutdowns
• All capital projects utilize FEP methods – Maintenance Prevention – Production friendly equipment – Procurement decisions based on LCC – Design in maintainability
• Shutdowns – the exception, not the norm – Use risk based decisions and optimize maintenance – Intrusive preventive maintenance creates as many problems as you attempt to
solve – Know the requirements and don’t do more than required – it doesn’t statistically
make you better – Use existing data to help with your decisions
Challenge the Assumptions