value driven maintenance discover the hidden treasure in your organization mark haarman, managing...
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Value Driven MaintenanceValue Driven Maintenance
Discover The Hidden Treasure In Your Organization
Discover The Hidden Treasure In Your Organization
Mark Haarman, Managing PartnerBirmingham, 18 April 2012
2Copyright Mainnovation 2011
Agenda
1.Maintenance
Dilemma
1.Maintenance
Dilemma
2.Value Of
Maintenance
2.Value Of
Maintenance
3.Most ValuableMaintenanceOrganization
3.Most ValuableMaintenanceOrganization
4.Continuous
Improvement
4.Continuous
Improvement
3Copyright Mainnovation 2011
Importance of Maintenance is Still Neglected
• Each management will tell you that maintenance is important
• “Without maintenance we will have no production and no safe working facilities”
• However, in economic downtimes maintenance is primarily seen as cost center
• Maintenance manager is not able to show the added value of maintenance ....
• ... because he/she does not speak the language of the board
• With all consequences as such
4Copyright Mainnovation 2011
Value Driven Maintenance® (VDM)
• VDM is developed by Mainnovation in close cooperation with leading maintenance organizations from different industries
• VDM makes the economic added value of maintenance quantifiable and supports the priority setting
• VDM facilitates the development of the Most Valuable Maintenance Organization (MVMO) ...
• ... and makes maximum use of proven best practices and is fully embedded in leading EAM systems
5Copyright Mainnovation 2011
Companies Using VDM
Ports & RoadsPorts & Roads
ManufacturingManufacturing
Oil & ChemicalsOil & Chemicals
Life SciencesLife Sciences
WaterWater
Public TransportPublic Transport
Energy & UtilitiesEnergy & Utilities
Paper & PulpPaper & Pulp
MarineMarine
Food & BeveragesFood & Beverages
6Copyright Mainnovation 2011
Agenda
1.Maintenance
Dilemma
1.Maintenance
Dilemma
2.Value Of
Maintenance
2.Value Of
Maintenance
3.Most ValuableMaintenanceOrganization
3.Most ValuableMaintenanceOrganization
4.Continuous
Improvement
4.Continuous
Improvement
8Copyright Mainnovation 2011
Case - IFF
•Leading company in flavors and fragrances
•European production centre in Tilburg, The Netherlands
•Company data:
• Replacement asset value = € 105 M
• Technical availability = 87%
• EBITDA = € 40 M
• Maintenance costs = € 2.8 M
• SHE-factor = 1.0
• Value MRO inventory = € 1.1 M
•Leading company in flavors and fragrances
•European production centre in Tilburg, The Netherlands
•Company data:
• Replacement asset value = € 105 M
• Technical availability = 87%
• EBITDA = € 40 M
• Maintenance costs = € 2.8 M
• SHE-factor = 1.0
• Value MRO inventory = € 1.1 M
€ 50 M € 12 M
€ 1 M
€ 0
9
Case - BP
10Copyright Mainnovation 2011
Agenda
1.Maintenance
Dilemma
1.Maintenance
Dilemma
2.Value Of
Maintenance
2.Value Of
Maintenance
3.Most ValuableMaintenanceOrganization
3.Most ValuableMaintenanceOrganization
4.Continuous
Improvement
4.Continuous
Improvement
16Copyright Mainnovation 2011
Maximum Use of Proven Best Practices
RCMRCM
RBIRBI
SLASLA
OEEOEE
Supply Chain Integration
Supply Chain Integration
TPMTPM
ConditionMonitoringCondition
Monitoring
OperatorMaintenance
OperatorMaintenance
Asset BasedCosting
Asset BasedCosting
18Copyright Mainnovation 2011
VDM Process Map
1.1Plan
equipmentperformance
1.2Monitor
equipmentperformance
1.3Analyze
performancelosses
2.1Manage
PM strategy
2.3Manage PM
schedules andtask lists
2.2Identify
critical spares
2.4Evaluate
PMstrategy
3.1Collect
maintenancerelated SHE-legislation
3.2Translate SHE-legislation inPM strategy
3.3Measure
SHE factor andperformance
4.1Budget
maintenancecosts
4.2Monitor
maintenancecosts
4.6Claim
damages
4.3Analyze
maintenancecosts
4.5Claim
warranties
5.2Prepare
work orders
5.4Schedule
work orders
5.3Manage
work permits
5.5Issue
work orders
5.1Receive
notifications
5.6Manageproject
6.1Execute
maintenance
6.2Register
work orderresults
7.7Create
purchaserequests
7.8Review
proposals
7.10Send
purchaseorders
7.11Match
invoices
7.12Managesuppliers
7.9Manageframe
agreement
7.2Monitor
inventoryvalue
7.1Receive andstock spares
7.5Manage
catalogue
7.6Transport
spares
7.4Count
inventory
7.3Issue spares
8.1Develop
outsourcingstrategy
8.2Supervisecontractor
9.1Manage
Skill profiles
9.2Managepersonal
certificates
9.3Manage
workforcecapacity
9.4Register
10.1Manage
equipmentdata
10.3Manage
drawings andmanuals
10.4Collect real
time condition data
10.2Manage
equipmentpermits
9.5Calibrate
tools
4.4Issue
investmentrequest
19Copyright Mainnovation 2011
Embed Processes in IT and Organization
MM GK ME WVB PL MON IM INK
C A/R I
A I R I C C C
A C R I C C
A C I R C
A R C
A I R C C
20Copyright Mainnovation 2011
Case - Volvo Cars
• Volvo Cars manufactures cars in 5 plants in Sweden and Belgium
• Volvo Cars is well known because of its innovative maintenance approach and TPM awards
• After years of focus on Asset Utilization Volvo Cars wanted a maintenance model that helped them to find the right balance between uptime and costs
• Volvo has adopted VDM as their standard maintenance management philosophy
• In 2005 they started with the implementation of standardized VDM work processes:
– based on internal and external best practices
– fully supported by their Maximo system
• 2010: 50% cost reduction on biggest plant
21Copyright Mainnovation 2011
Agenda
1.Maintenance
Dilemma
1.Maintenance
Dilemma
2.Value Of
Maintenance
2.Value Of
Maintenance
3.Most ValuableMaintenanceOrganization
3.Most ValuableMaintenanceOrganization
4.Continuous
Improvement
4.Continuous
Improvement
22Copyright Mainnovation 2011
Continuous Value Improvement
• Growing in professionalism means creating value
• When realistic achievable level of professionalism is reached, the value potential is utilized
• Automatically, the secondary value driver becomes the dominant one
• MVMO needs to be redesigned based on the new core competences
• Without loosing the achieved level of professionalism of the other value drivers
24Copyright Mainnovation 2011
Case – Conagra Foods
• Leading Food Company in US with 100 plants
• With Conagra Performance System (CPS) towards World Class Maintenance
• VDM programm based on TPM and RCM:
– Internal/external benchmarking
– Standard work processes
– Standard SAP EAM
– Equipment Reliability Improvement
• Global and local performance management with Maintenance KPI Dashboard (VDM Inside)
• Built in leading Business Intelligence software (SAP Business Objects and IBM Cognos) and fully integrated with SAP EAM and Maximo