performance management successful physical asset maintenance · successful physical asset...

2012 ARS, Europe: Warsaw, PolandTrack 1, Session 6

Begins at 10:30 AM, Thursday, March 29th

Successful Physical Asset Maintenance Performance Management

Arkadiusz BurnosOperations Manager, Consultant

BalticBerg Consulting

PRESENTATION SLIDESPRESENTATION SLIDESThe following presentation was delivered at the:

International Applied Reliability Symposium, EuropeMarch 28 - 30, 2012: Warsaw, Polandhttp://www.ARSymposium.org/europe/2012/

The International Applied Reliability Symposium (ARS) is intended to be a forum for reliability and maintainability practitioners within industry and government to discuss their success stories and lessons learned regarding

the application of reliability techniques to meet real world challenges. Each year, the ARS issues an open"Call for Presentations" at http://www.ARSymposium.org/europe/presenters/index.htm and the presentations

delivered at the Symposium are selected on the basis of the presentation proposals received.

Although the ARS may edit the presentation materials as needed to make them ready to print, the content of the presentation is solely the responsibility of the author. Publication of these presentation materials in the

ARS Proceedings does not imply that the information and methods described in the presentation have been verified or endorsed by the ARS and/or its organizers.

The publication of these materials in the ARS presentation format is Copyright © 2012 by the ARS, All Rights Reserved.

Arkadiusz Burnos, BalticBerg Consulting Slide Number: 2Session 6Track 1

Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

AgendaAgenda

Introduction – 5 min

What is the successful approach in Asset Management? – 5 min

Performance in Asset Management and Maintenance – 5 min

KPIs for Maintenance and Asset Management – 10 min

BalticBerg Practices in performance measurement – 5 min

Known KPIs for Maintenance and Asset Management – 5 min

PMS implementation case study – 5 min

Analyzing KPIs – 5 min

Universal Maintenance Performance Indicator – UMPI – 10 min

Questions 5 min


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

IntroductionIntroduction

BalticBerg…

Professional operations management consulting

Solving real management problems for manufacturing, mining and transportation companies

Best possible return on investment

Dedicated solutions

Knowledge and experience of large group of consultants

Modern cooperation with customers

Subject expert patronage of trade shows: MAINTENANCE – since 2010:

Also patronage for over 20 regular maintenance and operations related events in Poland and Central Europe.


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

IntroductionIntroduction

Major question:

What is level of you maintenance and asset management today?

Also important question is:

Where should your maintenance and asset management be in 1, 2, 5 years from now?


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

What is the successful approach in What is the successful approach in Asset Management?Asset Management?

Methodologies, tools and

strategies around AM and

maintenance

Total Productive Maintenance

Lean Maintenance

Reliability Centered Maintenance

Min. Life Cycle Cost

Preventive Maintenance

PMORisk Based

MaintenanceSix Sigma

Life Cycle Max. Condition Based

Maintenance

MRO Strategic Sourcing

MaintenanceOutsourcing


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12What is the successful approach in What is the successful approach in Asset Management?Asset Management?

Asset Management / Maintenance Management Assessment

• Operations strategy

• Maintenance strategy

• Maintenance budgeting

• Utilization of CMMS/EAM Systems

• MRO supply chain management

• Vendors management

• Performance Management (Measurement and Analysis)

• Maintenance processes

• Planning and Scheduling

• Condition Monitoring

• Reliability approach

• Life cycle cost management

• Outsourcing management / Contractors management

• Work culture

• HSE

• And many more…

Select areas and gain

information

Improve particular operations and proceed to best practice level


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

Performance in Asset Management Performance in Asset Management and Maintenanceand Maintenance

Performance is an accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed. In a contract, performance is deemed to be the fulfillment of anobligation, in a manner that releases the performer from all liabilities under the contract.

Performance can be understood in many ways. In maintenance and asset management it is a description of accomplishment desired operations in several categories: reliability, economy, quality,equipment and work force output, energy consumption etc.

What is PMS? (Performance Measurement System)


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12


PMS – Performance Measurement Systems contain tools and guidelines for performance measurement and

analysis activities. These guidelines should define primarily the interpretation details (examples), validation

and analysis methods (etc.)

What are performance measurement tools?


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12


Examples of performance measurement tools:

Score cards Score matrixes Quality cards (Key) Performance Indicators Assessment forms

Others…

Which tools are most often used in maintenance / asset management?


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12Performance in Asset Management Performance in Asset Management and Maintenanceand Maintenance


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

Key Performance Indicators Key Performance Indicators -- KPIsKPIs

Key performance indicators are describing selected groups of information.

Maintenance key performance indicators are tools for:

Quantitative description of existing, historical or predicted operational situation

Maintenance operations diagnose

Motivating and result review with technical and managerial staff

Continuous improvement by searching and eliminating important variances from required values

Monitoring of changes which have place in maintenance system

Gaining existing and historical operational performance-related values for comparing them with other organizations. (KPIs are an introduction step to internal and external benchmarking analysis.)


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

KPIs for MaintenanceKPIs for Maintenance

Structure of KPIs (according to EN 15341 and EN 13306)

Economical Technical Organizational

Level 1 E1, E2, E3, E4, E5, E6

T1, T2, T3, T4 Q1, Q2, Q3, Q4, Q5, Q6, Q7, Q8

Level 2 E7, E8, E9, E10, E11, E12, E13, E14

T5, T6, T7, T8, T9, T10, T11, T12, T13, T14, T15, T16

O9, O10

Level 3 E15, E16, E17, E18, E19, E20, E21, E22, E23, E24

T17, T18, T19, T20, T21

O11, O12, O13, O14, O15, O16, O17, O18, O19, O20, 021, O22, O23, O24, O25, O26


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12


Availability:

MTBF:

Is it an acceptable definition?


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12


MTTR:

[T21] MTTR = tpn / m

Scheduled work ratio:

[O5] OW = WO / WF

Costs of maintenance vs. cost of replacement:

[E1] E1 = CM / Cre

Costs of maintenance:

[E5] CP = CM / P

Is it an acceptable definition?

What should the KPI definition contain?


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

BalticBerg Practices in performance BalticBerg Practices in performance measurementmeasurement Practices improved during last 5 years.

Over 160 predefined KPIs for Asset Management and Maintenance.

Involved long term work of more than 12 experts in performance management.

Many SMEs joined projects where BB practices has been used.

What we define for KPIs in maintenance in BalticBerg…


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

BalticBerg Practices in performance BalticBerg Practices in performance measurement measurement –– example PMSexample PMS

BalticBerg’s best practices:• One-page document• Avoiding of abbreviations• Key interpretation definition

with useful links• Clear definition structure


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

Known KPIs for Maintenance and Known KPIs for Maintenance and Asset ManagementAsset Management

EN - Economical KPIs

KPI1 (EN) – Total Maintenance Cost in relation to Asset Replacement Value

KPI2 (EN) – Maintenance Inventory Value in relation to Asset Replacement Value

KPI3 (EN) – Maintenance Inventory Turnover

KPI4 (EN) – Preventive Maintenance Cost in relation to Total Maintenance Cost


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12Known KPIs for Maintenance and Known KPIs for Maintenance and Asset ManagementAsset Management

EN - Technical KPIs

KPI5 (EN) – Mean Time Between Failures

KPI6 (EN) – Mean Time To Repair

KPI7 (EN) – Mean Technical (Hands-On) Repair Time

KPI8 (EN) – Downtime Hours (Breakdown) in relation to Operating Time


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

Known KPIs for Maintenance and Known KPIs for Maintenance and Asset ManagementAsset Management

EN - Organizational KPIs

KPI9 (EN) – Preventive Maintenance Hours in Total Maintenance Hours

KPI10 (EN) – Overtime Ratio

KPI11 (EN) – Predictive Maintenance Hours in Total Maintenance Hours

KPI12 (EN) – Overhead Ratio (Maintenance Personnel Ratio)


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

PMS implementation case studyPMS implementation case study

BalticBerg Performance Measurement

System


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

Analyzing KPIsAnalyzing KPIs

- Analysis of isolated KPIs- Value analysis- Variance analysis- Trend analysis

- Relation analysis:- Correlation analysis- Influence analysis

- …

- Multi criteria analysis


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12



Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12



Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

Multi criteria analysis of performanceMulti criteria analysis of performance

• Analyze many criteria

simultaneously

• Easy and quickly select sub-

systems with bad performance

• Easily compare differed systems

• Make the process automated easily

• Support continuous improvement


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

Universal Maintenance Performance Universal Maintenance Performance Indicator Indicator -- UMPIUMPI

UMPI - A trial to answer technical managers’ requirements:

• Analyze many criteria simultaneously

• Easy and quickly select sub-systems with bad performance

• Easily compare differed systems

• Make the process automated easily

• Support continuous improvement

Using numerical taxonomy and few easy steps for

transforming data to useful information…


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12Universal Maintenance Performance Universal Maintenance Performance Indicator Indicator -- UMPIUMPI

A quick view to the Universal Maintenance Performance Indicator

(UMPI)…

UMPI allows to position operated technical assets

(or e.g., maintenance organizations) in order from these the

best maintained/managed to the worst ones, taking into

consideration many criteria (organizational, economical and

technical…).

Step 1 – Define the matrix of observation


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12


Step 2 – Choose stimulation direction

Step 3 - Set the same range (here standarization 0-1)


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12


Step 4 – Weight variables (optional, here weight based on

variance)

Step 5 – Measure distance to the patter


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12



Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12Universal Maintenance Performance Universal Maintenance Performance Indicator Indicator -- UMPIUMPI

What we search for?


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

Object ei Level in ranking

Object 58 0,629 1.

Object 46 0,598 2.

Object 11 0,509 3.

Object 40 0,503 4.

Object 41 0,410 5.

Object 24 0,373 6.

Object 18 0,345 7.

Object 25 0,334 8.

Object 48 0,323 9.

Object 82 0,321 10.

.. .. ..

Object 100 0,147 75.

Object 89 0,146 76.

Object 42 0,146 77.

Object 95 0,141 78.

Object 12 0,139 79.

Object 13 0,138 80.

Object 62 0,136 81.

Object 86 0,135 82.

Object 19 0,1349 83.

Object 98 0,1341 84.

Object 44 0,133 85.

Object 75 0,1304 86.

Object 10 0,1302 87.

Object 92 0,129 88.

Object 66 0,127 89.

Object 90 0,125 90.

Object 56 0,121 91.

Object 99 0,119 92.

Object 3 0,1185 93.

Object 94 0,1182 94.

Object 80 0,104 95.

Object 74 0,093 96.

Object 63 0,090 97.

Object 35 0,047 98.

Object 97 0,024 99.

Object 65 0 100.



Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

Successful Asset Management/Maintenance Successful Asset Management/Maintenance Performance Management SummaryPerformance Management Summary

BalticBerg Performance Measurement

System

• Manage change• Assign responsibility• …

• Make right decisions• Clearly define what

needs to be changed• …


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

Where to Get More InformationWhere to Get More Information Adamkiewicz A., Burnos A., Influence of maintenance strategies on the reliability of gas

turbines in power systems of floating production, storage and offloading units (FPSO), 28-th international scientific conference DIAGO® 2009. Technical diagnostics of machines and Manufacturing equipment. Vysoká škola báňská – Technická Univerzita Ostrava. Asociace Technických Diagnostiků České Republiky, o.s., CD, Ostrava, Rožnov pod Radhoštěm, 27.- 28. January 2009

Adamkiewicz A., Burnos A., The maintenance of the ship turbines with the application of the key performance indicators, Journal of POLISH CIMAC „Diagnosis, reliability and safety”, Gdansk, 2010

Det Norske Veritas, Ofshore Reliability Data Handbook 3rd Edition, OREDA Particiants, Hovik 1997

Kolenda M., Taksonomia numeryczna. Klasyfikacja, porządkowanie i analiza obiektów wielocechowych, Wydawnictwo Akademii Ekonomicznej we Wrocławiu, Wrocław 2006

Tarczyński W., Rynki kapitałowe. Metody ilościowe, Placet, Warszawa 1997

Tarczyński W., Taksonomiczna miara atrakcyjności inwestycji w papiery wartościowe, Przegląd Statystyczny nr 3/1994

PN-EN 13306

PN-EN 15341


Ap

pli

ed R

elia

bil

ity

Sym

po

siu

m,

Eu

rop

e 20

12

Thank you, do you have any questions?Thank you, do you have any questions?

Eng. Arek Burnos MSc, MBA

Business Operations Manager, BalticBerg Consulting

Contact details:

[email protected], +48 505 173 493

performance management successful physical asset maintenance · successful physical asset...

Documents