ralph w pete peters nfmt session 031810

SESSION NO.: R4.39 Thursday, MARCH 18, 2010 ROOM NO.: 339

Successful Facilities Management Auditing &Management Auditing &

BenchmarkingBenchmarking

Ralph W “Pete” PetersRalph W. Pete PetersFounder-President-Coach

The Maintenance Excellence InstituteRaleigh and Oak Island NCRaleigh and Oak Island NC

www.PRIDE-in-Maintenance.com

Key Session ObjectivesKey Session Objectives1. Review $’s that The Scoreboard for Facilities

Management Excellence benchmarking process can enable

2. Review the strategy for Continuous Reliability Improvement (CRI).p ( )

3. Review the process to create The Reliability & Maintenance Excellence IndexMaintenance Excellence Index

4. Define “What is PRIDE in Maintenance?”

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 2

Terms: Top Leader Maintenance Leader Craft Leader

Different Types of Benchmarking

1. Benchmark: A point of reference for a measurement. Surveying benchmarks aremeasurement. Surveying benchmarks are special-purpose "monuments", typically small concrete obelisks, approx. 3 feet tall and 1 foot atconcrete obelisks, approx. 3 feet tall and 1 foot at the base, set permanently into the earth.

2 Strategic Benchmarking Impro ing2. Strategic Benchmarking: Improving performance by examining successful approaches used by high performersapproaches used by high-performers.

Example The Scoreboard for Facilities Management ExcellenceThe Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 3

Management Excellence

Different Types of Benchmarking (cont)

3. Global Benchmarking: Applies to the total maintenance process and overall best practices for the “business of maintenance”

Example The Scoreboard for Facilities Management Excellence

4. Internal Benchmarking: Involves partners within same organization (multiple sites). Also benchmarking at shop level using


The Reliable Maintenance Excellence Index

Benchmarking Your Maintenance OrganizationThe Scoreboard

for Facilities Management Excellence

The ReliableThe Reliable Maintenance

Excellence Index

We Will Review These

Two Benchmarking Tools


Maintenance Around the World

REMEMBER: MAINTENANCE IS FOREVER!!

Continuous Process

Fleet Operations

Discrete

Scope of

Continuous ProcessIndustries

DiscreteManufacturing

Pl MMaintenance

Plus ManyMore Types of Maintenance

Facility Management Operations Healthcare

OperationsPublic Utilities


…. Public Utilities

Maintenance??

Burj Al Arab: A “7” Star Hotel

Russian Airport Control Tower-


pKamchatka Peninsular

Burj Khalifa Tower formerly known as

Burj Khalifaformerly known as

Burj Dubai prior to its inauguration, is a

skyscraper in Dubai, UAE and is the tallest man made structure ever built, at 828 m

(2,717 ft).


Today’s Very Real Challenges

Challenge One: Maintain existing f ili i d i i f dfacilities and equipment in safe and reliable conditions.

Challenge Two: Improve, enhance and g p ,then maintain existing physical assets to achieve environmental, regulatory , g ylife safety/security standards & energy best practices.


p

Today’s Very Real Challenges

Challenge Three: Enhance, renovate and add to existing physical assets using capital funds and then maintain the additions.

Challenge Four: Commission new gphysical assets and assume increased scope of work to maintain plus more p pwork from Challenges One, Two and Three as assets get older, older & older


g ,

Face These Four Very Real Maintenance Challenges With the Facts!g

Add staff ??? Not unless you have these facts!1. Know your “Total Maintenance Requirements”1. Know your Total Maintenance Requirements2. Top Leaders also know your Total Maintenance

Requirements & know the factsq3. Top Leaders know the costs & risks of deferred

maintenance. (DGWMC is about gambling & stats)4. Document productivity of current resources

Other Options???Use more contractors? Improve asset reliability?Eliminate a reactive strategy –GO PRO-active!Improve craft productivity? Increase Wrench Time


Improve craft productivity? Increase Wrench Time Work smarter, not harder? Or Work smarter and harder?

Facing Today’s Maintenance ChallengesThe Bottom Line normally is this;

Assuming growth with little or no additions in staffg g

Real Maintenance LeadersMust Discard the “Status Quo” Forget the Past!Must Discard the Status Quo - Forget the Past!Must Improve the “business of maintenance” Must implement Best Practices such as;Must implement Best Practices such as;

Effective planning, estimating and scheduling Improved Preventive Maintenance/Predictive pMaintenance (PM/PdM) ………etc/etc/etc

Lead Maintenance Forward as a Business;


YOUR OWN PER$ONAL BUSINE$$

What is Your Answer to This Question?


Facing Today’s Maintenance Challenges

Conduct Scoreboard for Facilities ManagementgExcellence

Assessment


Know Your Current State of Maintenance

“The Reliability Pyramid” shown on the next page illustrates the five stages of maintenance developmentillustrates the five stages of maintenance development. Where are you?Stage 1: Daily Maintenance & a desire to continuously improve &Stage 1: Daily Maintenance & a desire to continuously improve & not gamble with maintenance costs.

Stage 5: Achieving reliability and maintenance excellence with the g g ygoal of “total operations success”.

Get Stage 1 Right! Moving beyond Stage 1 will achieve significant b fit Fi t t k h !benefits. First you must know where you are!

Define your current “state of maintenance” via The Scoreboard for Facilities Management Excellence assessment processfor Facilities Management Excellence assessment process.

15

The Reliability PyramidReliability

and Maintenance

STAGE 5Operational ExcellenceAssure alignment of financial operations, corporate leadership sales and marketing and customers

Total Operations

ExcellenceOverall

UnitEffectiveness

EquiptSimplify/

Standardize

ConcurrentEngrn.

EquiptAcqn.

STAGE 4Engineered ReliabilitySystematically eliminate sources of

i l f il

leadership, sales and marketing, and customers Success

Courtesy of Strategic AssetReliability

Focus

gLife CycleCost Anal.

Acqn.ReliabilityAnalysis

Craft

Maintenance /OperationsIntegration

Externalversus

Internal

TPMOperator

Performed

STAGE 3Organizational ExcellenceCreate the environment to maximize

potential system failure Strategic Asset Management

CraftFlexibility

Integration Benchmarks Maintenance

Condition Monitoring

Failure PredictionFailure Mode Analysis

ProactiveMaintenanceSTAGE 2

Proactive MaintenanceG i t l f i t

C eate t e e o e t to a ethe staff contribution

PdM / CMMS Integration

Craft SkillsEnhancement

EquipmentHistory

PreventiveMaintenance

Work Management Processes

CMMS SystemSTAGE 1

Daily Maintenance: Gain

Gain control of equipment condition

16

Work Initiation /Prioritization

Planning and Scheduling

Work Execution & Review

MRO Materials Management

Daily Maintenance: Gain control of the work

Introducing The Scoreboard for Facilities Management Excellence

Other TMEI Scoreboards for Excellence Include:

g

Other TMEI Scoreboards for Excellence Include:Scoreboard for Maintenance Excellence (Manufacturing)Scoreboard for Fleet Management ExcellenceScoreboard for Fleet Management ExcellenceScoreboard for Healthcare Facilities Mgmt ExcellenceScoreboard for Golf Course Maintenance ExcellenceScoreboard for Golf Course Maintenance Excellence

17

200+ Scoreboard Assessments200 plus Scoreboard Assessments

18

The Scoreboard for Facilities Management Excellence

Recognized as Today’s Most Complete and Comprehensi e Assessment Tool

g

Comprehensive Assessment Tool– 27 Best Practice categories & 300 evaluation items– Defines your baseline as to “where you are”– You could compare your baseline to other

i tiorganizations– Comparing to others not important– It’s about what you do to “move the ball” – Provides the path forward for reliability &

i t llmaintenance excellence.19

The Scoreboard for Facilities Management Excellence

Proven as Today’s Most Complete and Comprehensi e Assessment Tool

g

Comprehensive Assessment Tool.– Used by TMEI for over 300 + assessments & by

over 4 000 worldwide organizations as an internalover 4,000 worldwide organizations as an internal benchmarking toolAvailable at www Pride in Maintenance com– Available at www.Pride-in-Maintenance.com

– Free with purchase of Maintenance Benchmarking & Best Practices (MBBP) from McGraw-Hill& Best Practices (MBBP) from McGraw-Hill &TMEI. (Chapter 7, page 122)

– MBBP is really 3-4 books in one as compared toMBBP is really 3 4 books in one as compared to small books by other authors .

20

CATEGORY The Scoreboard for Facilities Management ExcellenceCategory Descriptions (Part 1)

Evaluation Items

Total Points

in Category

A. The Organizational Culture and PRIDE in Maintenance 5 50

B. Facilities Organization, Administration and Human Resources

10 100

C. Craft Skills Development 10 100

D. Facilities Management Supervision/Leadership 10 100E. Business Operations, Budget and Cost Control 15 150F Work Management and Control: Maintenance and Repair 10 100F. Work Management and Control: Maintenance and Repair

(M/R)10 100

G. Work Management and Control: Construction and Renovation (C/R)

5 50

H. Facilities Maintenance and Repair Planning and Scheduling

15 150

I. Facilities Construction and Renovation Planning /Scheduling and Project Management

10 100/Scheduling and Project Management

J. Facilities Planning and Property Management 10 100

K. Facilities Condition Evaluation Program 5 50

21

L. Facilities Storeroom Operations and Internal MRO Customer Service

15 150

M. MRO Materials Management and Procurement 10 100

CATEGORY The Scoreboard for Facilities Management ExcellenceCategory Descriptions (Part 2 Continued)

Evaluation Items

Total Points in Category

N Preventive Maintenance and Lubrication 20 200N. Preventive Maintenance and Lubrication 20 200

O. Predictive Maintenance and Conditioning MonitoringTechnologies

10 100

P Building Automation and Control Technology 5 50P. Building Automation and Control Technology 5 50

Q. Utilities Systems Management 10 100

R. Energy Management and Control 10 100

S F iliti E i i S t 10 100S. Facilities Engineering Support 10 100

T. Safety and Regulatory Compliance 15 150

U. Security Systems and Access Control 10 90

V. Facilities Management Performance Measurement 15 150

W. Computerized Maintenance Management System (CMMS)and Business System

15 150

X. Shop Facilities, Equipment, and Tools 10 100

Y. Continuous Reliability Improvement 10 100

Z. Grounds and Landscape Maintenance 15 150

22

ZZ. Housekeeping Service Operations 15 150

Total Evaluation Items and Points 300 3000

Focus on Your TARGETSTaking Aim at Recommendations to Gain Excellence from Training Success

24

The Goal & The CommitmentThe Goal: Implement and measure results of solutions we define by each Scoreboard assessment or during y gTrueWorkShop events.

The Commitment: We are committed to a long termThe Commitment: We are committed to a long term partnership for achieving measurable results.

To help continuously expand current successesTo help continuously expand current successesTo help implement our recommendations To document results & the value of our servicesTo become a valuable technical resource To have all client’s use maintenance for profit

25optimization.

Scoreboard Baseline RatingsTOTAL BENCHMARK

POINTRANGES

OVERALL SCOREBOARD RATING SUMMARY

AS O A SCO

BASELINE POINTS FOR EACH

EVALUATIONTHE BASELINE TOTAL SCORE

EVALUATIONITEM

90% to 100% of Total Points EXCELLENT: 2700 to 3000 Total Points 10

80% to 89% of Total Points VERY GOOD: 2400 to 2699 Total Points 9

70% to 79%70% to 79% of Total Points GOOD: 2100 to 2399 Total Points 8

60% to 69%of Total Points AVERAGE: 1800 to 2099 Total Points 7

50% to 59% of Total Points BELOW AVERAGE: 1500 to Less than

1799 Total Points6

26

49% or Less of Total Points POOR: 1499 Total Points or less 5

Your Return on Maintenance Investment

Financial Results Customer Satisfaction Results

• 5% to 20% increase in capacity/throughput

• 20% to 30% increase in craft

• 10% to 30% increase in asset availability/reliability

• 10% to 20% reduction in stock outs20% to 30% increase in craft productivity/wrench time

• 10% to 20% reduction in actual maintenance costs

• 10% to 20% reduction in stock outs• 20% to 30% greater inventory

accuracy and controlmaintenance costs

• 10% to 20% decrease in parts inventory & asset accountability

• 20% to 30% increase in planned work and schedule compliance

Fully implemented projects of this type provide a conservative range of Fully implemented projects of this type provide a conservative range of direct savings/benefits and gained value from 10% to 20% in annual direct savings/benefits and gained value from 10% to 20% in annual

maintenance and MRO materials costs. Most operations achieve significant maintenance and MRO materials costs. Most operations achieve significant measurable improvements in many key performance measures Also thismeasurable improvements in many key performance measures Also this

Fully implemented projects of this type provide a conservative range of Fully implemented projects of this type provide a conservative range of direct savings/benefits and gained value from 10% to 20% in annual direct savings/benefits and gained value from 10% to 20% in annual

maintenance and MRO materials costs. Most operations achieve significant maintenance and MRO materials costs. Most operations achieve significant measurable improvements in many key performance measures Also thismeasurable improvements in many key performance measures Also this

27

measurable improvements in many key performance measures. Also this measurable improvements in many key performance measures. Also this project will also provide important intangible benefits for employee project will also provide important intangible benefits for employee relations, attitudes and internal and external customer satisfactionrelations, attitudes and internal and external customer satisfaction..

measurable improvements in many key performance measures. Also this measurable improvements in many key performance measures. Also this project will also provide important intangible benefits for employee project will also provide important intangible benefits for employee relations, attitudes and internal and external customer satisfactionrelations, attitudes and internal and external customer satisfaction..

IntroductionIntroduction to

Continuous Reliability ImprovementContinuous Reliability Improvement

(CRI)(CRI)


Continuous Reliability Improvement

Conduct Scoreboard for Facilities ManagementgExcellence

Assessment


Continuous Reliability Improvement-CRI

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 30Develop Your Scoreboard for Facilities

Management Excellence

Continuous Reliability ImprovementCONTINUOUS RELIABILITY IMPROVEMENT

GOES BEYOND RCM AND TPM

Craft LaborS i ti T

Physical Assetand Equipment

Resources

Resources

Continuous

Synergistic TeamBased Resources

ContinuousReliability

ImprovementSpare Partsand MaterialResources

Craft Knowledgeand Technical

Skill Resources Resources

InformationResources and

CMMS


CMMS

The Synergy of Team Efforts


Today’s Maintenance Leader Must:

• Know “Where You Are”

•Know “Where You Want To Go”

• Have Strategic, Tactical or Operational Plans

• Have “Do It Now” Action Items

• Be a true Maintenance Leader

M f & lid l• Measure performance & validate results

• Apply CRI across total maintenance operation


….

Return on Maintenance Investment (ROMI)

Financial Results Customer Satisfaction Results

• 5% to 20% increase in capacity/throughput

• 20% to 30% increase in craft

• 10% to 30% increase in asset availability/reliability

• 10% to 20% reduction in stock 20% to 30% increase in craft productivity/wrench time

• 10% to 20% reduction in actual maintenance costs

outs• 20% to 30% greater inventory

accuracyactual maintenance costs• 10% to 20% decrease in parts

inventory value

y• 20% to 30% increase in planned

workMaintenance process improvement can provide direct savings/benefitsMaintenance process improvement can provide direct savings/benefitsMaintenance process improvement can provide direct savings/benefitsMaintenance process improvement can provide direct savings/benefitsMaintenance process improvement can provide direct savings/benefits Maintenance process improvement can provide direct savings/benefits

and gained value from 10% to 20% in annual maintenance and MRO and gained value from 10% to 20% in annual maintenance and MRO materials costs. You can achieve measurable results in many areas. materials costs. You can achieve measurable results in many areas.

And you can provide important benefits for employee relationsAnd you can provide important benefits for employee relations

Maintenance process improvement can provide direct savings/benefits Maintenance process improvement can provide direct savings/benefits and gained value from 10% to 20% in annual maintenance and MRO and gained value from 10% to 20% in annual maintenance and MRO materials costs. You can achieve measurable results in many areas. materials costs. You can achieve measurable results in many areas.

And you can provide important benefits for employee relationsAnd you can provide important benefits for employee relations


And you can provide important benefits for employee relations, And you can provide important benefits for employee relations, attitudes and both internal and external customer satisfaction.attitudes and both internal and external customer satisfaction.And you can provide important benefits for employee relations, And you can provide important benefits for employee relations, attitudes and both internal and external customer satisfaction.attitudes and both internal and external customer satisfaction.

Understanding Potential BenefitsWith a Net Profit Ratio of 5 Percent; the Potential for

Maintenance to Contribute to the Bottom Line

Maintenance Direct S i

Equivalent Sales R i d

Can be Significant

Savings Required$1 $20

$1,000 $20,000 $10 000 $200 000

A Profit of Requires Sales of

$10,000 $200,000$20,000 $400,000 $50,000 $1,000,000 $75 000 $1 500 000

Savings ofOffsets

Not Having

in Sales$75,000 $1,500,000

$100,000 $2,000,000 $150,000 $3,000,000 $175,000 $3,500,000

Having…


$ , $ , ,$200,000 $4,000,000

Developing Your Maintenance Excellence Strategy

• Define “where you are” with a Scoreboard for Facilities Management Excellence assessmentFacilities Management Excellence assessment

• Get third-party support for an objective benchmark assessmentbenchmark assessment

• Define your priorities for “where you want to go”• Develop potential direct & indirect benefits

• Gained value from increased uptimeG i d l f ft d ti it• Gained value from craft productivity

• Gained value from MRO materials management


management

Developing Your Maintenance Excellence Strategy

• Establish A Reliable Maintenance Excellence Index

NEXT

• Communicate maintenance goals with operations or customers and get their buy-in and support


• Ensure maintenance operation has buy-in as well

Develop a Reliable Maintenance Excellence Index

A Reliable Maintenance Excellence Index Must; • Identify key performance indicators that really matter

G i d l & t t• Gain consensus on agreed upon goals & targets • Define weighted value of the relative importance of each

performance indicator• Have metrics that validate projected benefits, gained value and

total operations success

Metrics Cover All 6 Maintenance Resources If Possible

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results44

The Reliable Maintenance Excellence Index

• The RMEI measures key resources that contribute to profit optimization greater customer service and moreprofit optimization, greater customer service and more effective facilities management;

• People resources; internal craft labor & outside contractorsp ;• Dollar resources; overall budget dollars of maintenance and

the customer • MRO parts and material resources• MRO parts and material resources• Planning resources and customer service• Critical assets; uptime, availability or OEE & reliability • Information resources; how data becomes true information

via effective CMMS• CMMS Benchmarking System


g y

A Reliable Maintenance Excellence Index Provides;

• A very powerful, one page Excel spreadsheet • 12-15 key metrics combined for a composite Total RMEI12-15 key metrics combined for a composite Total RMEI

Performance Value • A very “balanced scorecard” for the total facilities and y

maintenance process. • An ideal method for measuring Continuous Reliability

Improvement across a multiple operations & work units • Support to applying and measuring the impact of standard

b t tibest practices• Example: Maintenance planning & scheduling: We must

define results of an investment in a planner positions!!

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results

define results of an investment in a planner positions!!

Developing Your Reliable Maintenance Excellence Index

Current MonthPerf

Baseline Perf. Level


Weighted Value of

Each Metric

Developing Your Reliable Maintenance Excellence Index

All Perf. Goals

Are Met

So PerfSo Perf. Level Scores are All 10”s


Developing Your Reliable Maintenance Excellence IndexStep Description The 10 Step Process for RMEI Development

A Performance Metrics

10 to 15 metrics are selected & agreed upon by the organization. Select metrics for total maintenance process + operational ones.p p

B Current Month

Performance

The actual monthly performance level for the metric . This value will also be noted in one of the incremental values blocks below the performance goal. This value will correspond to a value for F, the performance level scores which go from 10 down to 1the performance level scores which go from 10 down to 1

C Performance Goal

The pre-established performance goal for each of the RMEI metrics. For example, if the Current Month’s Performance is at the Performance Goal level, the performance level score for that goal

ill b 10 th iwill be a 10, the maximum score.

D Baseline Performance

The baseline performance level prior to start of RMEI performance measurement. Not always available. Use a 1-3 months performance average as a baseline after start of RMEI.g

E Current Performance

Score

Depending on the current month’s performance, a performance level score (F) will be obtained. This value then goes to the Current Performance Score row and serves as the multiplier for the (G) the Weighted Value of the Performance Metricthe (G) the Weighted Value of the Performance Metric

F Performance Level

Values from 10 down to one, which denotes the level of current performance, compared to the goal. If current performance achieves the predetermined goal, a performance value of 10 is


p g , pgiven. Each metric is broken down into incremental values from the baseline to the goal. Each incremental value in the column corresponds to a performance level value. This value becomes the Current Performance Score.

Developing Your Reliable Maintenance Excellence IndexStep Description The 10 Step Process for RMEI Development (cont)

G Weighted Value of the

The values along this row are the weighted value or relative importance of each of the metrics. These values are obtained via

Performance Metric

pa team process and a consensus on the relative importance of each metric that is selected for the RMEI. All of the weighted values sum to 100.

H Performance The Weighted Values (G) are multiplied by (E) the CurrentH Performance Value Score

The Weighted Values (G) are multiplied by (E) the Current Performance Scores to get the Performance Value Score (H).

I Total RMEI Performance

V l

The sum of the Performance Value Scores for each of the metrics and the composite value of monthly maintenance performance

ll RMEI t iValue on all RMEI metrics

J Total RMEI Performance Values Over

Location for tracking Total RMEI Performance Values over a number of months

Time

Important NotesImportant Notes1. The RMEI is a composite of key metrics, each with relative importance2. Each RMEI metric can be trended and linked to the monthly RMEI3 Th RMEI h ld b b l d h l i i


3. The RMEI should be balanced across the total maintenance operation4. Other metrics of lesser value can also be tracked.

21 Maintenance Performance Metrics to Consider for Your

Reliable Maintenance Excellence IndexPRIDE

Reliable Maintenance Excellence Indexwith-in-

MaintenanceGo For It @

PRIDE-in-Maintenance comPRIDE-in-Maintenance.com


# Performance Metric and Purpose Goal

1. % Overall Maintenance Budget Compliance: To evaluate 98%management of $ assets; Obtained from monthly financials

2. Actual Maintenance Cost per Unit of Production or (Maintenance Cost Per Square footage Maintained: To

TBD ( a te a ce Cost e Squa e ootage a ta ed oevaluate/benchmark actual costs against stated goals/baselines or against industry standards; Obtained from asset records and monthly CMMS WO file of completed WOs for the month. Obtained from production results and financial report Provides ideal support to ABCproduction results and financial report. Provides ideal support to ABCCosting practices

3. % Customer or Capital Funded Jobs Completed as S h d l d d ithi / 5% f C t E ti t

98%Scheduled and within +/- 5% of Cost Estimate: To measure customer service & $ assets plus planning effectiveness; Obtained from funded WO types from the CMMS WO files, comparing date promised to date completed and estimated cost to actual costdate promised to date completed and estimated cost to actual cost

4. % Other Planned Work Orders Completed as Scheduled: To measure customer service and planning effectiveness; Obtained from a query of all planned WO types in CMMS WO files and comparing date

95%


query of all planned WO types in CMMS WO files and comparing date promised to date completed. Could be expressed in % based on craft hours.

5. Schedule Compliance: To evaluate how effectiveness scheduling was 95%


in regards to executing to meet scheduled dates/time; Obtained from query of CMMS completed WO file where all scheduled jobs coded and their actual completion compared to actual planned completion date/time

6. % Planned Work Orders versus % True Emergency Work Orders: To evaluate positive impact of PM, planning processes and other proactive improvement initiatives (CRI,/RCM/etc); Obtained from a query of all true emergency WO types in CMMS WO files and comparing to total

80% to

85% Plannedof all true emergency WO types in CMMS WO files and comparing to total

WOs completed. Could be expressed in % based on craft hours.

Planned

7. % Craft Time to Work Order for Customer Charge Backs: To monitor TBDcraft resource Accountability for Internal Revenue Generation (or External); Obtained from a query of all WO types in CMMS WO files that are charged back comparing these craft hours to total craft hours paid

8. % Craft Time to Work Orders: To monitor overall craft resource accountability and to support internal revenue generation ; Obtained from a query of all WO types in CMMS WO files and summation of actual craft hours

100%


hours

9. % Craft Utilization (Actual Wrench Time): To maximize craft 60%


% Craft Utilization (Actual Wrench Time): To maximize craft resources for productive, value-adding work and to evaluate effectiveness of planning process; Obtained from a query of all craft hours reported to non craft work from CMMS time keeping WO files and summation of actual craft hours

to70%

summation of actual craft hours

10. % Craft Performance (Against Reliable Estimates for PM d l d k) T i i ft t l t

95%and planned work): To maximize craft resources, to evaluate planning effectiveness and also to determine training ROI; Obtained from completed WO file in CMMS

11. Craft Quality and Service Level: To evaluate quality and service level of repair work as defined by customer; Obtained from WO file in CMMS where all call backs are tracked and monitored via work control and

98% +

CMMS where all call backs are tracked and monitored via work control and planning processes.


The Overall Craft Effectiveness Factor (%)

CU: Craft Utili ti

CP: Craft Performance

CSQ: Craft Service

Utilization Performance Quality

56OCE = %CU x CP x CSQThe Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results

12. Overall Craft Effectiveness (OCE): To evaluate cumulative positive 65%


Overall Craft Effectiveness (OCE): To evaluate cumulative positive impact of overall improvements to Craft Utilization (CU), Craft Performance (CP) and Craft Quality and Service Excellence (CQSE) in combination; Obtained from using results of measuring all three OCE Factors: a) Craft Utilization b) Craft Performance and c) Craft Quality andFactors: a) Craft Utilization, b) Craft Performance and c) Craft Quality and Service Excellence

13. % Work Orders with Reliable Planned Times: To measure planner’s effectiveness at developing reliable planning times; Obtained

70 % planner s effectiveness at developing reliable planning times; Obtained from completed WO file in CMMS where panning times are being established for as many jobs as possible by planner/supervisor

14 % Overall Preventive Maintenance Compliance: (C ld b b 100%14. % Overall Preventive Maintenance Compliance: (Could be by type asset, production department/location or by supervisory area): To evaluate compliance to actual PM requirements as established for assets under scope of responsibilities; Obtained from completed WO file in CMMS

100%

p p ; p


15 Gained $Value from Craft Utilization & Performance: To TBD


15. Gained $Value from Craft Utilization & Performance: To determine actual gained $ value of craft productivity gains as compared to original estimate and/or the initial baseline; Obtained only from using results of measuring two of the OCE Factors: a) Craft Utilization, b) Craft

TBD

Performance.

16. % Inventory Accuracy: To evaluate one element of MRO material management and inventory control policies; Obtained from cycle count

lt d ld b b d it t i t i

98%

results and could be based on item count variances or on cost variance

17. % or $ Value of Actual MRO Inventory Reduction: To evaluate another element of MRO material management against original

10%evaluate another element of MRO material management against original estimates and the initial baseline MRO inventory value; Obtained from inventory valuation summation at end of each reporting period


18 Number of Stock Outs of Inventoried Stock Items: To monitor actual ????


. stock item availability per demand plus to monitor any negative impact of MRO inventory reduction goals; Obtained from tracking stock item demand and recording stock outs manually or by coding requisition/purchase orders for the items not available per demand p

19.

$ Value of Direct Purchasing Cost Savings: To track direct cost savings from progressive procurement practices as another element of MRO materials management. Could apply to contracted services, valid benefits received from

f t ti t t d t d d i t

TBD

performance contracting, contracted storerooms, vendor managed inventory; Obtained via best method per a standard procedure that defines how direct purchasing savings are to be accounted for

20 Overall Equipment Effectiveness (OEE): World –class metric to evaluate 85%q p ( )cumulative positive impact of overall reliability improvements to Asset Availability A), Asset Performance (P) and Quality (Q) of output all in combination. (Similar to OCE above but for the most critical production assets); Obtained via downtime reporting process, operations performance on critical assets and the resulting quality of outputp , p p g q y p

21.

% Asset Availability/Uptime: To evaluate trends in downtime due to maintenance and the positive impact of actions to increase uptime; Obtained via downtime reporting process

TBD


Many More Metrics Available

60


Some Other Maintenance MetricsCategory Benchmark

Y l M i t C tYearly Maintenance Cost:

Total Maintenance Cost/Total Manufacturing Cost < 10-15%

Maintenance Cost/Replacement Asset Value of the Plant and Equipment < 3%

Hourly Maintenance Workers as a % of Total 15%

Planned Maintenance:

Planned Maintenance/Total Maintenance > 85%/

Planned & Scheduled Maintenance as a % of hours worked ~85-95%

Unplanned Down Time ~0%

Reactive Maintenance < 15%Reactive Maintenance < 15%

Run to Fail (Emergency + Non-Emergency) < 10%

Maintenance Overtime:

Maintenance Overtime/Total Company Overtime < 5%

Monthly Maintenance Rework:

Work Orders Reworked/Total Work Orders ~0%


Inventory Turns:

Turns Ration of Spare Parts > 2-3

Some Other Maintenance MetricsCategory Benchmark

Training:Training:

For at least 90% of workers, hours/year > 80 hours/year

Spending on Worker Training (% of payroll) ~4%p g g ( p y )Safety Performance:

OSHA Recordable Injuries per 200,000 labor hours < 2Housekeeping ~96%

Monthly Maintenance Strategies:Monthly Maintenance Strategies:Preventive Maintenance: Total Hours PM/Total Maintenance

Hours Available ~20%

Predictive Maintenance: Total Hours PdM/Total Maintenance ~50%Hours Available ~50%

Planned Reactive Maintenance: Total Hours PRM/Total Maintenance Hours Available ~20%

Reactive Emergency: Total REM/Total Maintenance Hours 2%

62

Reactive Emergency: Total REM/Total Maintenance Hours Available ~2%

Reactive Non-Emergency: Total RNEM/Total Maintenance Hours Available ~8%

> 97%


Plant Availability: Available Time/ Maximum Available Time > 97%

Contractors: Contractors Cost/Total Maintenance Cost 35-64%

What is PRIDE in Maintenance?P l R ll I d i D l i E llPeople Really Interested in Developing Excellence

In

MaintenanceMaintenance


P lPeople:It is About You and Your People (Technicians,

Engineers Supervisors Contractors StoreroomEngineers, Supervisors, Contractors, Storeroom Staff) and Top Leaders as well!

What is PRIDE in Maintenance?



Really:Really: It is Wanting, Desiring and Being Very

Committed to Improving the TotalCommitted to Improving the Total Maintenance Process.




Interested in:Interested in: Something of Importance That We Want to Improve

or Change for the Good of Ourselvesor Change for the Good of Ourselves

and

Our Organization & CustomersOur Organization & Customers

IThe Maintenance Excellence Institute: Worldwide Services With Measured Shop Level Results 67


Developing:Developing: Learning About and Building the Skillsfor Implementing Today’s Best Practices Andfor Implementing Today s Best Practices. AndDeveloping Our Most Importance Resource;

Our PEOPLE!



Excellence: Achieving Reliability and Maintenance Excellence to Achieve Total Operations Success . Success of the Total Operation is “THE GOAL”

So What is PRIDEPRIDEin


Maintenance to You?

Please Remember:As a Maintenance LeaderAs a Maintenance Leader,

You Must Set the Example with PRIDEPRIDE

in Maintenance


Remember You Must Be a Salesman Too!

Maintenance LeadersMaintenance Leaders“Remember

That Nothing Happens Until Somebody SellsSomething!”

Mr Red Motle Said This a Long Time Ago


Mr. Red Motley Said This a Long Time Ago

Our Proven Approach is the Foundation of the new McGraw-Hill

Book By TMEI FounderRalph W. “Pete” Peters

72

Additional MaterialsAdditional Materials

Results from an Assessment of the T t l M i t O tiTotal Maintenance Operation

TMEI Case StudiesTMEI Case Studies


Assessment Deliverables to Achieve Validated Results

1. Maintenance Excellence Strategy Team chartered to facilitate world-class maintenance

2. A World-class maintenance strategy defined by The Scoreboard for Facilities Management Excellence with a recommended Plan of Action for Implementationrecommended Plan of Action for Implementation

3. An in-depth assessment of current maintenance practicespractices

4. Recognition of current successes 5. Develop and present PRIDE-in-Maintenance sessions to

crafts work force and other staff6. Recommendations for improvement to the current

i t ll ti f CMMS


installation of CMMS


7. Implement The CMMS Benchmarking System to measure CMMS status, improvement actions & define functionality gaps.

8. Results previewed with Maintenance Leaders first!!9 Prepare a Recommended Implementation Plan with9. Prepare a Recommended Implementation Plan with

Tactical/Operations action plans and timelines 10.Define all improvement opportunities10.Define all improvement opportunities

a) Define projected savings/benefitsb) Develop timeline for achieving results

11.We implement The Reliable Maintenance Excellence Index to measure results. Note: This includes a d t d d f d t t ti


documented procedures for data extraction.


12. The Reliable Maintenance Excellence Index also validates the value of TMEI Services and is ready to implementthe value of TMEI Services and is ready to implement

13. We define a Support Plan of Action for best practice support from The Maintenance Excellence Institute and our worldwide Alliance Team

14. Preliminary review of overall results and the plan by Maintenance Leaders

15. Written and oral presentation of results to Top Leaders and Maintenance Leaders

16 Implementation beginning from Day One with methods in16. Implementation beginning from Day One with methods in place to validate results: The Reliable Maintenance Excellence Index!


Why The Maintenance Excellence Institute ?

The Maintenance Excellence Institute views the initial client interactions as the formation of a long-term alliance. Our success is contingent upon the success of each of our valued clients. Our Alliance Members form the skills base for serving you with today’s most comprehensive and cost effective support for total maintenance and MRO

Alliances

Our breadth of experience allows us to understand your overall operation, your total maintenance and storeroom operation; combining this into an overall solution for total operations success. Our geographical distance apart is not a limitation in today’s electronic world to provide for term cost effective implementation support.

materials management improvement.

Total Operations

Success world to provide for term cost effective implementation support.

We work for your validated results, not just deliverables or a report. The engagement whether large or small is not successful until the solutions are implemented and validated. Three important deliverables validate results for every client; a Scoreboard for Maintenance Excellence, a CMMS Benchmarking System plus The Reliable Maintenance Excellence I d t th h fl l l

Validated Results

Index at the shop floor level.

We will only be successful when we work as a team with each client, collaborating and sharing expertise and working side-by-side with cooperation and commitment. Our client’s team will bring an in-depth understanding of its operation. We will bring our proven methodology, valuable lessons learned and years of expertise in Maintenance Excellence

Collaboration, Cooperation,

Services, Operational Services and Training for Maintenance Excellence.The Maintenance Excellence Institute believes in the basics, simplicity and innovation toward profit-centered and customer-centered maintenance. We will view your operation and maintenance business as if it was our own. We never recommend solutions that are not cost-justified and without measurable results. The goal is to help you achieve and implement your overall business goals for profit optimization while gaining maximum

Commitment

Profit and

77

implement your overall business goals for profit optimization while gaining maximum value from your current maintenance operation.

We guarantee at least at 10 to 1 return on your investment when using our services and implementing our action plans.

Customer-Centered

Past Scoreboard Assessments & Support • Anderson Packaging IL• Atomic Energy Canada (2 sites)• Air Combat Command (3 Air Force

• Cooper Tools/Cooper Industries(9 plants)

• Dominion Terminal Associates VA• Air Combat Command (3 Air Force Bases)

• Boeing Commercial Airplane Group (55 sites)

• Dominion Terminal Associates-VA• DIMON International-NC & VA-4

sites • Ford Motor (Canada) Engine Plant(55 sites)

• BP Texas City Refinery TX • Braun Medical-PA• Bucyrus International-WI

• Ford Motor (Canada) Engine Plant• General Foods-NY• GlaxoSmithKline-NC• Goldkist• Bucyrus International-WI

• BP Texas City Refinery-TX• Carolinas Medical Center-NC• Cascade Engineering MI (4 sites)

• Goldkist• Great River Energy-ND• Heinz USA-OH

L t T h l i NE (2 it )• Cascade Engineering-MI (4 sites)• Caterpillar (IL)• Big Lots Distribution Centers-OH,

CA AL PA (4 sites)

• Lucent Technologies-NE (2 sites)• Marathon Oil -LA, IL,MI and TX (4

sites)Th M M G NE


CA, AL, PA (4 sites)• Consolidated Thermoplastics (3 sites)

• The MarMaxx Group-NE• National Defense-PA

Past Scoreboard Assessments & Support

• Purolator-NC• Rocketdyne Propulsion-CA (Div of

B i )

• The Werner Company-PA, IL and AL (3 sites)

Boeing)• Rockwell International-WI• Rohm & Haas-TX• SIDERAR (8 Steel Mills Argentina)

• Wyeth-Ayerst -VA (3 sites in U.S.)• Wyeth Medica (Ireland)• Weyerhaeuser-WA

• SIDERAR (8 Steel Mills Argentina)• University of NC-CH Facilities Services

Div (6 work units)• University of NC-CH Building Services

• NC Department of Transportation (15 Division level shops & 100 county shops

i G GA & A (3University of NC CH Building Services PRIDE in Maintenance Sessions

• EMCOR- VIOX Facilities Services-OH (Contract Maintenance

• National Gypsum-NY, GA & AL (3 sites)

• NYCOMED (Puerto Rico)P l id C i MAProvider)

• Western Regional Maintenance-NC Dept of Health & Human Services (3 sites)

• Polaroid Corporation-MA• Pratt & Whitney (Canada)• Broward County Schools (FL)


Training for Worldwide Organizations


Maintenance Excellence Case Studies

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level ResultsThe

Mainten

Case Study:University of North Carolina, Facilities Services Division

The Facilities Services Division for the University of North Carolina-Chapel Hill (UNCFSD)provides the facilities management operations for North Carolina’s largest university campus with staffing of over 1000 personnel from housekeeping, architectural design, construction/renovation, landscaping, f iliti i t d MRO i t tfacilities maintenance and MRO inventory management. UNCFSD purchased a Facilities Maintenance Management System (FMMS) in 1998 and uses CMMS for plant maintenance within it’s Co-Generation plant maintenance operation. CMMS has served well over the past years since Co-Generation plant construction in the early 1990’s. From the facilities side there were opportunities to improve the MRO supply chain processes particularly withfacilities side, there were opportunities to improve the MRO supply chain processes, particularly with regard to warehousing operations, inventory management and purchasing modules for maintenance and construction materials. UNCFSD determined that it was time to evaluate how well their over facilities management operations was working and what new technologies with regard to a FMMS systems and MROoperations was working and what new technologies with regard to a FMMS systems and MRO supply chain could take it into the 21st century. More demands for services were imminent with recent passage of a $3.1 Education Bond Issue for construction for the overall UNC system of 16 campuses plus community colleges. The following engineering activities were provided:

Completed a comprehensive supply chain and maintenance needs analysis. This included interviews with approximately 100 personnel at all levels of the organization to determine how MRO materials management and the FMMS was performing for the entire organization. This included both hourly and salaried positions.Documented work flows and all systems that interfaced with the current FMMS and determined


Documented work flows and all systems that interfaced with the current FMMS and determined with an economic analysis to see if the present system could be modified or upgraded to answer future needs.

Case StudyUniversity of North Carolina, Facilities Services Division (Continued)

The following facilities engineering services were provided: (continued)Developed recommended MRO supply chain and maintenance best practices to provide the foundation for achieving over $3,000,000 in direct savings and gained value.g , , g gDetermined with an economic analysis to see if the present FMMS system could be modified or upgraded to answer future needs for a rapidly changing maintenance environment.Provided a clear course for UNCFSD to pursue strategic, tactical and immediate operational improvements. Key areas included;

Plan for new organizational function to provide a central function for MRO materials management, shop level and construction planning function and improved procurement processes.

Plan of action for developing complete control and visibility of MRO inventories, modernization of off campus storage areas creation of an on campus storage area andmodernization of off campus storage areas, creation of an on campus storage area and establishment of shop level storage sites.

Plan for upgrading existing FMMS with functionalities for more effective MRO materials management and planning.

Complete position description job rating guide and procedures for establishing shop levelComplete position description, job rating guide and procedures for establishing shop level planning positions

Standard operating procedures for a UNCFSD Facilities Management Excellence Index to measure direct savings and gained value of all operational improvement initiatives.

Provided guidelines for continuous measurement of strategic best practice improvement


g gvia The Scoreboard for Facilities Management Excellence and The FMMS Benchmarking System

Case StudyRockwell International (now AMERITOR)

The Rockwell International (Rockwell) site in Wisconsin manufactures large transmissions and axle assemblies for heavy construction and transportation equipment. Rockwell’s maintenance program was in desperate need of effective storeroom operations, work management, p g p p , g ,PM execution and lack of even basic CMMS functionality was creating a serious challenge for effective plant operations throughput. Effective maintenance management was a serious missing link. To get immediate help before catastrophic failures, Rockwell engaged Advanced Technology Services Inc (ATS) to manage maintenance, improve/operate the storeroom, establish CMMS and to provide a maintenance planner via contracted services. This project was a partnering effort between MEI staff and ATS to help Rockwell implement essential best practices within this highly unionized environment. ATS determined that it was necessary get basic practices in place so that their contract services could perform. More demands for equipment reliability, increase uptime, better quality from precision machining centers, regulatory compliance and better service from existing craft resources made the topic of achievingregulatory compliance, and better service from existing craft resources made the topic of achieving maintenance excellence a business survival opportunity. The following engineering services to support the Rockwell manufacturing plant were provided:

Completed review of existing asset database on legacy system, prepared and migrated asset data to CMMSCMMS.Developed modernization plan for storeroom, purged old parts from existing storeroom and developed parts database for CMMS after complete inventory of “good parts”.Relocated storeroom to new location in center of plant and established effective parts serviceAnalyzed the best maintenance practices to provide the foundation for CMMS


Analyzed the best maintenance practices to provide the foundation for CMMSSupported start up of contract planner position, new storeroom attendants and measurement process for Continuous Reliability Improvement

Case StudyBoeing Commercial Airplanes Group

The Boeing Commercial Airplanes Group (BCAG) is a division of The Boeing Company, the world’s largest manufacturer of commercial jetliners and military aircraft and the largest NASA contractor. As the largest producer of commercial jetliners, BCAG operates four strategic manufacturing centers in Washington as well as locations in Wichita, Kansas and Long Beach, California. Th F iliti A t M t O i ti (FAMO) l t d i S ttl h t li d ibilit dThe Facilities Asset Management Organization (FAMO) located in Seattle has centralized responsibility and technical leadership of facilities management and maintenance operations in all regions. Through their Advanced Maintenance Process (AMaP), FAMO was implementing a progressive and comprehensive five-year maintenance excellence initiative throughout BCAG and pursuing the implementation of world-class maintenance practices. pFAMO leaders were very committed to improving, standardizing and supporting corporate-wide maintenance best practices and having a system in place to measure results. After introducing the AMaP program at BCAG, FAMO leaders needed a method to benchmark results, measure benefits, identify obstacles to progress, and determine improvements needed to make AMaP more effective. FAMO needed to review the best practice elements of their AMaP program and to develop a Boeing Scoreboard for Facilities Maintenance Excellence. In turn, the internal benchmarking guide that evolved would be used to provide an objective evaluation of AMaP progress at each region down to group (maintenance manager) and team first line supervisor) levels.Part of the solution included using The Scoreboard for Facilities Management Excellence as the baseline guidePart of the solution included using The Scoreboard for Facilities Management Excellence as the baseline guide and working with the FAMO team to determine the key AMaP evaluation criteria to be added. The Boeing Scoreboard for Facilities Management Excellence was developed &define the BCAG maintenance excellence strategy, providing evaluation criteria to measure implementation progress at all levels in FAMO. A craft survey was developed and conducted with over 3000 members of the craft work force.


Case StudyBoeing Commercial Airplanes Group (continued)

Results from this project included:Boeing Scoreboard for Facilities Maintenance Excellence developed

– Developed plan of action for assessments in all regions (over 50 site operations)– Developed survey for crafts, planners, and customers of maintenance (technical work force over 3,000)

B i S b d f F iliti M i t E ll t d t d i ll iBoeing Scoreboard for Facilities Maintenance Excellence assessment conducted in all regions:– Developed ratings and specific improvement opportunities for group leaders and team leaders– Identified various sites as centers of excellence for sharing of best practices– Completed survey and compiled results from crafts, planners, and customers

FAMO operation evaluated with The Scoreboard for Facilities Management Excellence as baseline guidep g gImprovement to existing planning and scheduling process developedImprovements to corporate-wide performance measurement process recommended

As a result of this project FAMO had well-defined strategy for maintenance excellence and support plan for implementation. Italso had a process established to measure implementation progress and ROI. Key results included:

Recommended enhancements to AMaP best practices and FAMO operations identified with potential savings of over threeRecommended enhancements to AMaP best practices and FAMO operations identified with potential savings of over threetimes the cost for implementationClearly defined a maintenance excellence strategy for the Boeing Scoreboard for Facilities Management ExcellenceEstablished a current evaluation of AMaP progress in each regionConducted an overall evaluation of FAMO operationsRefined maintenance performance measurement process and readied a Facilities Management Excellence Index forimplementationPut into place a world-class CMMS and standard best practices for implementation at all sitesDeveloped a method for greater accountability and productivity of all craft labor and material resourcesRenewed the focus on effective planning and scheduling processes

The Maintenance Excellence Institute: Worldwide Services With Measured Shop Level ResultsThe

Mainten

Renewed the focus on effective planning and scheduling processes

Case StudySiderar SAIC

Siderar SAIC is the largest steel company in Argentina with a production level of over two million tons per year. Siderar operates seven plants within the province of Buenos Aires. It is a fully-integrated producer that uses iron ore and coal as raw materials to produce coke, pig iron, and steel to manufacture hot and cold rolled sheet and coated products. Siderar wanted to upgrade their in-house developed Computerized Maintenance Management System (CMMS), consider the use of SAP-R/3 or implement another CMMS system-CMMS throughout its seven plants. They also wanted to improve corporate-wide maintenance best practices, have a system in place to measure results and ensure that the functionality of a new CMMS would fully support their maintenance improvementresults, and ensure that the functionality of a new CMMS would fully support their maintenance improvement efforts. Siderar SAIC needed a review of their total maintenance operation at all seven plants and to define recommended best practices and functional requirements for a world-class CMMS. Working with the Siderar team, a solution was developed that included a Scoreboard for Facilities Management Excellence assessment and specific recommendations for improvements at all plants, the definition of functional requirements for a future CMMS, and a recommended performance measurement process.Results over the course of the project include:

Developed functional requirements for a corporate-wide CMMS– Established method to evaluate vendors and developed short listEstablished method to evaluate vendors and developed short list– Evaluated SAP-R/3 plant maintenance and procurement module and ROI– Evaluated CMMS and ROI as the option to SAP’s Plant Maintenance module

Established a recommended Siderar CMMS strategy– Recommended CMMS vendor: CMMS


– Established CMMS implementation plan and a Siderar CMMS Benchmarking System to measureprogress

Case StudySiderar SAIC (continued)

Conducted benchmark assessment at the seven Siderar plants– Developed a Scoreboard for Facilities Management Excellence rating for each– Defined specific improvement opportunities of over $4 million

Developed improvement to existing planning and scheduling process– Introduced work measurement techniques– Developed measurement of planning effectiveness

Defined improved preventive/predictive maintenance (PM/PdM) opportunities– Revised and upgraded PM/PdM procedures– Increased compliance to PM/PdM schedules

Defined need for improved storeroom and shop operations– Developed need for strategic storeroom master planning– Implemented new storeroom procedures– Improved inventory control and accuracy

Developed a corporate-wide performance measurement process– Established performance goal for each metric

D t d th ith itt t d d d– Documented the process with written standard procedures– Established the Siderar Facilities Management Excellence Index (MEI)

Siderar SAIC was able to develop the best approach to CMMS and achieve their corporate-widemaintenance goals with a method to measure results. Key outcomes included:

Best practices with potential savings of over $4 million identified for implementation


Best practices with potential savings of over $4 million identified for implementationA corporate-wide CMMS strategy developed to integrate a best-of-breed CMMS with SAP-R/3 financials

Case StudySiderar SAIC (continued)

A Siderar CMMS Benchmarking System in place to measure CMMS implementationprogressAn overall maintenance excellence strategy with strategic, tactical and operational actionsestablished as a result of the total maintenance operations assessmentMaintenance performance measurement process establishedA world-class CMMS and standard best practices in place for implementation at all sevenplantspA method for greater accountability and productivity of all craft labor and material resourcesA Siderar Scoreboard for Facilities Management Excellence established to periodicallyevaluate overall maintenance excellence progress at each of the seven plants


Case StudyNC Dept. of Transportation, Div. of Highways’ Equipment Unit

The NC DOT directs, plans, constructs, maintains and operates the second largest state-maintained transportation system in the nation. The Equipment Unit maintains a fleet of over 20,000 pieces of equipment for highway repair and construction via a central depot operation and over 100 field shops. Due to the scope of NC’s transportation system and growth of overall highway maintenance requirements, p p y g g y q ,continuous improvement of fleet management was identified as being essential to the NCDOH mission. A comprehensive Equipment Management System and other improvements were needed to support this extensive fleet operation where annual replacements alone ranged from 20 to $40 million per year. The Equipment Management System which was implemented statewide over a 2 year period provided the following:

A computerized system for equipment inventory, parts inventory, repair history, work control, planning/scheduling, performance reporting and more effective preventive maintenanceA comprehensive statewide renewal of the PM program that included operator level PM tasksE i t S i Pl 50 l l t d t i d d i t ll d i l t d h f i / j iEquipment Services Planners; over 50 planners selected, trained and installed in selected shops for minor/major repair and PM scheduling, providing estimated repair time, shop schedules, parts coordination and increased customer service to field operationsImproved PM effectiveness that increased equipment uptime, increased equipment life and reduced annual equipment repair costs by over $5,000,000 per yearImproved parts service and overall management in central warehouse and at shop sites with a net reduction of over $2,000,000 per year in parts inventory costsImproved planning and customer service to field operations with increased craft wrench time valued at over $3,000,000 per year Increased time for service to outside agencies resulting in new revenue of over $1 500 000 per year


Increased time for service to outside agencies resulting in new revenue of over $1,500,000 per year A pioneering effort for fleet management, viewed by numerous agencies from US and around the World

Case StudyConsolidated Stores/BigLots Inc.

Consolidated Stores Corporation which is now BigLots Inc. is one of America’s leading value-specialty retailers. Their Closeout Division operates 1,230 stores in 43 states, doing business as Odd Lots, Big Lots, Mac Frugel’s, and Pic’ ‘N’ Save. Their Toy Division consists of 1,320 toy stores in all 50 states, Puerto Rico and Guam for KB Toys, KB Toy Works, KB Toy Outlet, and KB Toy Express. Consolidated Stores wanted to establish standard maintenance best practices and significantly improve maintenance operations in all of its four distribution centers (DCs) —totaling over seven million square feet. They also wanted to have these company-wide maintenance best practices available for use in new and future DCs.Consolidated Stores desired to conduct a Scoreboard for Facilities Management Excellence assessment at two pilot DCs to determine a recommended strategy at all DCs in the futureDCs to determine a recommended strategy at all DCs in the future. Results from the assessments indicated the need for an improved Computerized Maintenance Management System (CMMS), better preventive maintenance (PM), improved planning between DC operations and maintenance, improved storeroom operations, improved shop and storeroom facilities, and the need for a method to measure maintenance performance and service. A Consolidated Stores Maintenance Excellence Strategy Team was chartered to provide direction and support to implementation of the recommendations and to define a common measurement process to validate projected savings.A combined team effort with all levels of Consolidated staff significantly contributed to a true Consolidated Stores solution. Results over the initial 12 months of the project included:Results over the initial 12 months of the project included:

Conducted final selection and implementation of a new CMMS at four DCs– Established system on central server for exclusive use by maintenance DC sites– Trained crafts people and DC operations personnel in PRIDE in Maintenance topics

E t bli h d CMMS B h ki S t t i f ll tili ti


– Established CMMS Benchmarking System to gain full utilization

Case StudyConsolidated Stores/BigLots Inc. (continued)

Implemented a planning and scheduling process at each DC– Developed corporate-wide planner position description/grade– Selected and trained one planner and backup per DC in Effective Maintenance Planning and Scheduling– Supported planners with shop level training

Measured planning performance– Measured planning performanceInitiated improved Preventive Maintenance

– Revised and upgraded PM procedures at all sites– Improved support from DC operations staff

Improved storeroom and shop operations– Developed strategic storeroom master plan

I d i t t l d ith b d li ti– Improved inventory control and accuracy with bar code applications– Established modernized central shop and central storeroom at Columbus,OH DC– Established new storeroom at Montgomery, AL DC

Established written standard operating procedures for use at all sites– Work order and work control– Planning and scheduling– Storeroom operations and parts procurement

Implemented corporate-wide performance measurement process– Consensus on corporate-wide metrics (13)– Performance goal for each metric established– Facilities Management Excellence Index (MEI) established for each DC

Summary: Corporate-wide goals and measurable results achieved as follows: 1. Development/implementation of a corporate-wide strategic maintenance excellence plan 2. Common CMMS and standard best practices in place and ready to apply at future DCs 3. Greater accountability and productivity of all craft labor and material resources 4. A new DC quickly brought online with effective maintenance practices


q y g p5. A renewed focus on PM and planning coordination with DC operations 6. Storeroom modernization and improvement and measurable results 2 times original projections

Case StudyMarathon Oil Company

Marathon Oil Company (Marathon) has four major refineries for gasoline and oil products in four states and a corporate office in Findlay, Ohio. Marathon purchased a Computerized Maintenance Management System (CMMS) in 1987 and is now operated from a network in Findlay, Ohio. This system has served Marathon well over the past nine years,operated from a network in Findlay, Ohio. This system has served Marathon well over the past nine years, particularly with regard to the warehousing and purchasing modules for maintenance control. Marathon determined that it was time to evaluate how well this system was working and what new technologies with regard to a CMMS system could take it into the 21st century. More demands for equipment history, regulatory compliance, and real-time cost data had made this topic a top priority for q p y g y p p p p yMarathon. The following engineering services were provided:

Completed a comprehensive needs analysis for four refining sites. This included interviews with approximately 200 personnel at all levels of the organization to determine how the CMMS was pp y p gperforming for the entire organization. This included both hourly and salaried positions.Documented all systems that interfaced with the CMMS for future compatibility.Determined with an economic analysis to see if the present system could be modified or upgraded to answer Marathon’s future needs for a rapidly changing maintenance environment.answer Marathon s future needs for a rapidly changing maintenance environment.Analyzed all CMMS vendors to see what technologies could best fit into Marathon’s future plans. It was determined that reliability was the key for future major cost reductions.Analyzed the best maintenance practices to provide the foundation for a CMMS.P id d l f M th t


Provided a clear course for Marathon to pursue.

ralph w pete peters nfmt session 031810

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