VICTOR D. MANRIQUEZSOLSENCO

WORK MANAGEMENTTRACK 5GUIDES ON PREPARATION AND METRICS FOR OUTSOURCED MAINTENANCE SERVICE CONTRACTS

Victor D. Manriquez, CMRP

• Lima - Peru, 1962

• Mechanical Engineer; Pontificia Universidad Catolica del Peru

• MSc Renewable Energies; Universidad Internacional de Andalucia, Spain

• Diploma in Magisterial Formation, Pontificia Universidad Catolica del Peru

• 30 years of professional experience in mining, oil and energy industry sector.

• Contributor of the magazines “Mantenimiento en Latinoamérica” (24 articles since 2009 “Predictiva 21” (8 articles since 2014), Machinery Lubrication (2014) and Solutions (2013).

• Presenter in Peruvian Congress of Mechanical Engineering and Peruvian Congress of Maintenance Engineering (2012, 2014, 2015)

• Presenter in the 21st SMRP Annual Conference in Indianapolis (2013)

• I teach courses and make workshops related to M & R issues in Peru and Costa Rica since 2009.

80’s Companies in charge of all functions

90’s Privatization of public companies

Maintenance Outsourcing

Oil & GasMining

CBM

+ Execution

+ Planning & Scheduling

+ Reliability

DLTL, PPL, MARC

Maintenance Outsourcing

Scope Metrics

Contracts Main Issues

Scope examples

1.Full Industrial Maintenance of Malvinas natural gas liquids separation plant and Pisco fractioning plant.

2.Service for execution of predictive maintenance, non-destructive tests and lubrication and proactive tribology.

3.Service for the full maintenance of equipment from the plants of Mining Company Atacocha S.A.

Scope examples

4.Service of maintenance for installations from BPZ.

5.Maintenance service in PPAL/PVEN Plants of Repsol in Ventanilla in charge of Cobra Peru S.A.

6.Integral Maintenance service of equipment in Block Z-1 from operations of Pacific Rubiales Energy Peru.

Example 1

Service classifications

Scope of the services

Exclusions

Risk Based Inspection (RBI)

Erosion control and cathodic protection

Scope of types of maintenance

Extended description of services

Example 4“To perform routine and non-routine maintenance tasks in the production facilities from BPZ in the fields of Corvina and Albacora in Tumbes region. The services include predictive, preventive and corrective maintenance in the electrical, mechanical and instrumentation and predictive of the facilities production. WGP will perform the maintenance strategy established in the CMMS assuring the availability and integrity of the installations. The scope is defined and structured in the WBS shown in Annex 1. During this 1st stage, it will be identified the general list of equipment for plant and the information will be reviewed, including P&IDs, PFDs, Plot plans, Datasheets, O&M handbooks (that includes the equipment exploded view, BOM’s) and spare parts, additionally it will be performed the validation of equipment in field, identifying their operating context”.

Points referred in scope examples

Type of maintenance to perform

Assets included in the service

Location of the assets

Term of the contract

Technical disciplines/specialties included

Exclusions

What items should we include in the scope of the contract?

How are selected the metrics to monitor the contract's performance?

Contract Metrics

Example 1 Metric

% Average Weight Factor Objectives

A System Global Availability (D

30%

1 D ≥ 99.00%

- 0.99 @ + 0.99 Variable lineal

96.00% ≤ D < 99.00%

-1 D < 96.00%

B Reliability of vital and critical equipment (C)

20%

1 C ≥ 99.00%

0 97.00% ≤ C < 99.00%

-1 C < 97.00%

C EHS Management Index (IGEHS)

30%

1 IGEHS ≥ 95.00%

- 0.99 @ + 0.99 Variable lineal

75.00% ≤ IGEHS < 95.00%

-1 IGEHS < 75.00%

D % Total WO Compliance (OMt)

8%

1 OMt ≥ 90.00%

0 85.00% ≤ OMt < 90.00%

-1 OMt < 85.00%

E % Planned WO Compliance (OMp)

12%

1 OMp ≥ 98.50%

0 97.5% ≤ OMp < 98.5%

-1 OMp < 97.5%

System Global Availability (D)

BDR = Best Demonstrated Production Ratio

SMRP Guideline 6.0 Demystifying Availability

System Global Availability (D)Availability formula for stand alone equipment

Availability formula for sectors

Reliability (C) / Work Orders

Backlog

HH Backlog = N°WO * HH/WOHH/WO = value calculated with arithmetical average from the last year. The 1% of extreme values are not included.HH DOT/Week = H – H from basic dotation for maintenance service = Theoretical H - H x ALFAALFA = 0.92 * Personnel Productivity

Example 2N° Metric

Y1 Predictive Maintenance Program compliance Y2 Required service precision Y3 Efficacy and efficiency in the data collect work Y4 Delivery on time of Predictive, NDT and Lube Reports Y5 Delivery on time of Management metrics Y6 Attending to Emergencies and/or overtimes. Y7 Cover and nonscheduled compliance Y8 Safety standards compliance. (Zero Accidents). Y9 Training Program Contractor and Client compliance Y10 Contractor personnel satisfaction in their relation with the client.

Example 6 METRIC FORMULA

Metrics / Reference

1. Availability Uptime (Hours) / [Total time available (Hours) – Idle time (Hours)] x 100

SMRP 2.2 EFNMS T2

2. MTBF (Mean Time Between Failures)

Uptime (Hours) / Number of failures SMRP 3.5.1 EFNMS T17

3. MTTR (Mean Time To Repair)

Total Time To Repair (Hours) / Numbers of Repairs

SMRP 3.5.2 EFNMS T21

4. MTBM (Mean Time Between Maintenance)

Uptime (Hours) / Numbers of maintenance actions

SMRP 3.5.3

5. Reliability (Based in uptime)

[Calendar time (hours) – Unscheduled downtime (Related to equipment’s failure). (hours)]/Calendar time (hours) x 100

6. Frequency Index (Numbers of injuries * 1000000)/ Total number of worked hours

EFNMS O6

7. Severity Index (Number of lost days * 1000000)/ Total number of worked hours

EFNMS O7

Example 6 METRIC FORMULA

Metrics / Reference

9. Rework [Corrective Work Identified as Rework (hours) ÷ Total Maintenance Labor Hours] × 100

SMRP 4.1

10. Planned work [Planned Work Executed (hrs) ÷ Total Maintenance Labor Hours (hrs)] × 100

SMRP 5.3.1

11. Actual Hours to Planning Estimate

(Actual Work Order Hours ÷ Planned Hours) × 100

SMRP 5.3.4

12. Work Orders Program compliance

(Number of work orders performed as scheduled ÷ Total number of scheduled work orders) × 100

SMRP 5.4.4 EFNMS O22

13. Backlog (Ready) Ready Work ÷ Crew Capacity SMRP 5.4.9

14. Stock Outs (Number of Inventory Requests with Stock Out ÷ Total Number of Inventory Requests) × 100

SMRP 5.5.33 EFNMS O26

PROPOSED SCOPE

ISO 55001:2014

8 Operation

8.3 Outsourcing

PROPOSED SCOPE

ISO 37500:2014

Phase 1: Outsourcing strategy analysis

Phase 2: Initiation and selection

Phase 3: Transition

Phase 4: Deliver value

ISO 37500:2014

Phase 2

7.7 Outline agreements and in item

7.8 Negotiate and establish agreements.

Phase 4

9.3 Monitor and review service performance

9.10 Manage the agreement.

EN 13269:2007

Guideline on preparation of maintenance contracts

ObjectivesCreate a clear relation between client and maintenance contractor

Quality in maintenance contracts to minimize suing.

To emphasize field and scope of the maintenance service.

Assist in the contract negotiation

Identify the type of contract.

Simplify the comparison between maintenance contracts

Facilitate the specifications for the required results from the maintenance services.

Activities

Chapter 4

Maintenance activities and phases previous to the maintenance contract.

Chapter 5

Proposed structure for contract and contents.

Contract and Contents Proposed Structure

5.1 General

5.2 Heading

5.3 Objective

5.4 Definitions for the contract

5.5 Scope of the tasks

5.6 Technical arrangement

5.7 Commercial arrangement

5.8 Organizational Arrangements

5.9 Legal arrangements

Scope5

.5 S

cop

e o

f th

e

task

s5.5.1 Operation location

5.5.2 Maintenance location

5.5.3 Content

5.5.4 Time

5.5.5 Impediment

5.5.6 Delay

Scope5

.6 T

ech

nic

al

arra

nge

me

nt 5.6.1 Verification

5.6.2 Technical Information

5.6.3 Spare parts/materials and consumables

Proposed MetricsProblems Metrics with ad hoc definitions

Metrics without definition

Metrics not related to the management objectives

Alternative definitions for standard metrics

Proposed Objectives

• SpecificS

• MeasurableM

• AttainableA

• RelevantR

• Time BasedT

SMRP Metrics

PILLAR SUBJECT # METRICS

1 BUSINESS MANAGEMENT 4

2 MANUFACTURING PROCESS RELIABILITY 6

3 EQUIPMENT RELIABILITY 9

4 ORGANIZATION & LEADERSHIP 4

5 WORK MANAGEMENT 44

TOTAL 67

EFNMS Metrics

GROUP INDICATOR LEVEL

LEVEL 1 LEVEL 2 LEVEL 3 TOTAL

Economic indicators 6 8 10 24 Technical Indicators 4 2 15 21

Organizational Indicators 8 2 16 26

TOTAL 18 12 41 71

Conclusions

Definition of the scope of the contract

Smart Objectives

Use of standardized metrics

SMRP BoK recommendations

Establish references

QUESTIONS?