Reliability: Reliability: Next Generation Next Generation

Asset ManagementAsset Management

James Robert Dickens, Ph.D.James Robert Dickens, Ph.D.

Temple-Inland Inc.Temple-Inland Inc.

Forest Products GroupForest Products Group

Diboll, TexasDiboll, Texas

What is “Reliability”?What is “Reliability”?

Let’s define reliability as the readiness of a Let’s define reliability as the readiness of a machine to produce first-run quality at design machine to produce first-run quality at design capacity for the expected lifetime of the asset.capacity for the expected lifetime of the asset.

Unreliability is easy to spot: Unreliability is easy to spot: Machines broken downMachines broken down Machines running below design capacityMachines running below design capacity Machines not producing first-run quality Machines not producing first-run quality Machines running below design capacity Machines running below design capacity andand not not

producing first-run qualityproducing first-run quality

Functional FailureFunctional Failure

““Functional failure” occurs when the Functional failure” occurs when the machine is still operating, but at reduced machine is still operating, but at reduced capacity or quality. capacity or quality.

What is the Purpose of What is the Purpose of Maintenance?Maintenance?

There are two basic ways to approach There are two basic ways to approach maintenance:maintenance: Fix what’s broke Fix what’s broke

Reactive – restore capacityReactive – restore capacity Every day is full of surprisesEvery day is full of surprises Lots of “What happened?”Lots of “What happened?” Improvement means reacting fasterImprovement means reacting faster

Keep equipment in like-new conditionKeep equipment in like-new condition Proactive – preserve capacityProactive – preserve capacity Work is planned days or weeks ahead of timeWork is planned days or weeks ahead of time Lots of “What if?”Lots of “What if?” Improvement means avoiding breakdownImprovement means avoiding breakdown

Maintenance as CultureMaintenance as Culture

Maintenance reflects the culture of the Maintenance reflects the culture of the organization.organization.

And, maintenance is part of the culture of And, maintenance is part of the culture of the organization.the organization.

In order to fundamentally change In order to fundamentally change maintenance, there must be a culture maintenance, there must be a culture change.change.

Maintenance as CultureMaintenance as Culture

The journey toward reliability is more than The journey toward reliability is more than implementing a set of tools.implementing a set of tools.

In other words, reliability is more than just In other words, reliability is more than just a program.a program.

Management of ChangeManagement of Change

Three important points about change:Three important points about change:Change always takes timeChange always takes timeChange is always difficultChange is always difficultChange takes commitment and leadership at Change takes commitment and leadership at

all levelsall levelsLeadership requires vision – a clear Leadership requires vision – a clear

picture of the destination – and the ability picture of the destination – and the ability to effectively transmit that vision to others. to effectively transmit that vision to others.

Topics of DiscussionTopics of Discussion

Maintenance progresses from reactive to Maintenance progresses from reactive to proactiveproactive

Culture change is driven in part by metricsCulture change is driven in part by metrics The maintenance organization forms a cohesive The maintenance organization forms a cohesive

systemsystem Roles and responsibilities are clearly definedRoles and responsibilities are clearly defined Improvement requires an ongoing investment in Improvement requires an ongoing investment in

capabilitiescapabilities Case studies illustrate the value of condition Case studies illustrate the value of condition

monitoringmonitoring

Stages of ProgressStages of Progress

Stages of ProgressStages of Progress

The journey toward reliability tends to The journey toward reliability tends to progress in several identifiable stages:progress in several identifiable stages:

1.1. ReactiveReactive

2.2. PreventivePreventive

3.3. PredictivePredictive

4.4. ProactiveProactive

ReactiveReactive Run-to-failure*Run-to-failure*

Git-R-Dun:Git-R-Dun: If it’s broke, fix it quick and fix it cheap.If it’s broke, fix it quick and fix it cheap. If it ain’t broke, don’t fix it.If it ain’t broke, don’t fix it. If it’s broke but still runs, fix it later.If it’s broke but still runs, fix it later. If it’s making a funny noise, don’t worry about it.If it’s making a funny noise, don’t worry about it.

** Run-to-failure may be considered cost-effective Run-to-failure may be considered cost-effective for non-critical items with non-hazardous failure for non-critical items with non-hazardous failure modes.modes.

PreventivePreventive

Preventive Maintenance (PM)Preventive Maintenance (PM)Time-basedTime-basedMaintenance carried out at predetermined Maintenance carried out at predetermined

intervals, or to other prescribed criteria, intervals, or to other prescribed criteria, and intended to reduce the likelihood of a and intended to reduce the likelihood of a functional failure. functional failure.

PM is not a silver bulletPM is not a silver bulletExcessive PM is not cost-effectiveExcessive PM is not cost-effective

PredictivePredictive

Predictive Maintenance (PdM)Predictive Maintenance (PdM)Condition-based (trending)Condition-based (trending)Use of measured physical parameters Use of measured physical parameters

against known engineering limits for against known engineering limits for detecting, analyzing, and optimizing the detecting, analyzing, and optimizing the resolution of equipment problems before a resolution of equipment problems before a failure occurs.failure occurs.

Monitor while runningMonitor while runningBest-suited for critical equipmentBest-suited for critical equipment

ProactiveProactive

Prevention of failures prior to and during Prevention of failures prior to and during the service life of the equipmentthe service life of the equipmentAlignmentAlignmentBalancingBalancingLubricationLubricationCleanlinessCleanlinessRoot cause failure analysis (RCA)Root cause failure analysis (RCA)Failure Modes and Effects Analysis (FMEA)Failure Modes and Effects Analysis (FMEA)

MetricsMetrics

Importance of MetricsImportance of Metrics

In any organization, the tendency is to In any organization, the tendency is to measure what’s important, and then to measure what’s important, and then to manage what’s measured.manage what’s measured.

Both inputs and outputs can be measured.Both inputs and outputs can be measured.Many “management” measures are Many “management” measures are

outputs (e.g., cost, productivity, quality, outputs (e.g., cost, productivity, quality, downtime).downtime).

The Danger ZoneThe Danger Zone

Measurements can make one nearsightedMeasurements can make one nearsightedTend to focus on one thing at a time, rather Tend to focus on one thing at a time, rather

than the whole system (suboptimize)than the whole system (suboptimize)Try to manage today based on what Try to manage today based on what

happened yesterday (react)happened yesterday (react)Tend to look at things on a surface level and Tend to look at things on a surface level and

may not realize the impact of things that are may not realize the impact of things that are not being measured (fight fires)not being measured (fight fires)

MetricsMetrics

One of the key metrics is OEEOne of the key metrics is OEEOverall Equipment Effectiveness (%)Overall Equipment Effectiveness (%)

= Uptime x Throughput x Quality = Uptime x Throughput x Quality OEE balances three important measures OEE balances three important measures

of success – can’t focus on one to the of success – can’t focus on one to the exclusion of the othersexclusion of the others

OEE is an “output” measure – after-the-OEE is an “output” measure – after-the-factfact

MetricsMetrics

Additional metrics focus more attention on Additional metrics focus more attention on “inputs” - activities that reduce failures “inputs” - activities that reduce failures over timeover time

Examples:Examples:% PM completed on time% work orders generated by PM% OT hours of total maintenance hours% PM hours of total maintenance hours% critical equipment monitored by PdM

Elements of MaintenanceElements of Maintenance

Elements of MaintenanceElements of Maintenance

Maintenance is an integrated system that Maintenance is an integrated system that includes numerous functional includes numerous functional responsibilitiesresponsibilities

Elements of MaintenanceElements of Maintenance Preventive MaintenancePreventive Maintenance Predictive MaintenancePredictive Maintenance Reliability EngineeringReliability Engineering Planning & SchedulingPlanning & Scheduling Storeroom ManagementStoreroom Management Standard Maintenance ProceduresStandard Maintenance Procedures Equipment StandardsEquipment Standards Asset CriticalityAsset Criticality Computerized Maintenance Management Computerized Maintenance Management

System (CMMS)System (CMMS)

Roles and ResponsibilitiesRoles and Responsibilities

Roles and ResponsibilitiesRoles and Responsibilities

Within the mill environment, the Within the mill environment, the contribution of each employee must be contribution of each employee must be clearly defined.clearly defined.

Key RolesKey Roles

Maintenance ManagerMaintenance Manager Maintenance SupervisorMaintenance Supervisor

Mechanical TechniciansMechanical Technicians Electrical TechniciansElectrical Technicians

PlannerPlanner SchedulerScheduler Storeroom ManagerStoreroom Manager Control System EngineerControl System Engineer Reliability EngineerReliability Engineer

Production workersProduction workers

Ongoing InvestmentOngoing Investment

Ongoing InvestmentOngoing Investment

Enhancing the effectiveness of reliability Enhancing the effectiveness of reliability requires an ongoing investment in requires an ongoing investment in capabilities:capabilities:PersonnelPersonnelTrainingTrainingEquipmentEquipment

Predictive CapabilitiesPredictive Capabilities

Investment in predictive capabilities may Investment in predictive capabilities may include the following techniques:include the following techniques:Vibration testingVibration testingThermographyThermographyMotor circuit evaluationMotor circuit evaluationUltrasonic testingUltrasonic testingOil analysisOil analysis

Case StudiesCase Studies

Refiner MotorRefiner Motor

An unusual vibration on the refiner deck led to An unusual vibration on the refiner deck led to further investigation of a 1,250 HP refiner motor.further investigation of a 1,250 HP refiner motor.

The motor was monitored closely until The motor was monitored closely until preparations were made to remove the rotor.preparations were made to remove the rotor.

Vibration testing had detected broken rotor bars. Vibration testing had detected broken rotor bars. The motor was rebuilt with no unscheduled The motor was rebuilt with no unscheduled

downtime and with a cost avoidance of about downtime and with a cost avoidance of about $50k compared to catastrophic failure.$50k compared to catastrophic failure.

Press Servo PumpPress Servo Pump Routine vibration monitoring detected an Routine vibration monitoring detected an

anomaly near one of the servo pump bearings.anomaly near one of the servo pump bearings. The anomaly was monitored closely over the The anomaly was monitored closely over the

next several months.next several months. After two significant increases, management After two significant increases, management

was notified of a potentially critical condition.was notified of a potentially critical condition. During the next routine shutdown, a worn motor During the next routine shutdown, a worn motor

coupling was determined to be the source of the coupling was determined to be the source of the vibration.vibration.

The coupling was replaced and the motor and The coupling was replaced and the motor and pump were laser-aligned without further loss of pump were laser-aligned without further loss of production. production.

ConclusionConclusion

The Reliability JourneyThe Reliability Journey

As illustrated in this presentation, the As illustrated in this presentation, the ongoing application of reliability concepts ongoing application of reliability concepts has the potential for creating a competitive has the potential for creating a competitive advantage by maintaining equipment in advantage by maintaining equipment in good operating condition. good operating condition.

Appendix:Appendix:The Economic Cost The Economic Cost

of Poor Reliabilityof Poor Reliability

Measuring the Cost of Measuring the Cost of MaintenanceMaintenance

Direct cost of maintenance is easy to Direct cost of maintenance is easy to measure based on the P&L.measure based on the P&L.Cost of labor & burdenCost of labor & burdenCost of materials, parts, equipment, servicesCost of materials, parts, equipment, services

Direct cost of maintenance is only the tip Direct cost of maintenance is only the tip of the iceberg.of the iceberg.

Indirect cost of maintenance is hidden out Indirect cost of maintenance is hidden out of sight.of sight.

Cause and EffectCause and Effect

One of the big challenges for managing One of the big challenges for managing maintenance is the extended time between maintenance is the extended time between actionsactions and and consequencesconsequences..

All failures have a cause, but the cause and All failures have a cause, but the cause and effect may be separated by weeks, months, or effect may be separated by weeks, months, or years.years.

E.g., failure to properly align and balance a E.g., failure to properly align and balance a newly installed machine may be the “event” newly installed machine may be the “event” that led to the machine’s breakdown two years that led to the machine’s breakdown two years later. later.

Cause and EffectCause and Effect

In order to gain the long-term benefits of In order to gain the long-term benefits of proactive maintenance, the short-term proactive maintenance, the short-term tasks must be carried out with discipline – tasks must be carried out with discipline – even though there are daily pressures to even though there are daily pressures to the contrary. the contrary.

DowntimeDowntime

Downtime occurs when the plant is not Downtime occurs when the plant is not producing new product. producing new product.

What is the direct cost of lost sales due to What is the direct cost of lost sales due to downtime?downtime?

For a typical medium-sized board plant in a good For a typical medium-sized board plant in a good market, lost sales alone will account for several market, lost sales alone will account for several million dollars per year. This is probably the million dollars per year. This is probably the biggest loss component.biggest loss component.

Downtime should be measured against the total Downtime should be measured against the total available hours (24/7/365).available hours (24/7/365).

Productivity LossesProductivity Losses

Functional failure occurs when the plant is Functional failure occurs when the plant is running, but at reduced capacity or running, but at reduced capacity or diminished quality.diminished quality.

UptimeUptime can be a misleading metric when can be a misleading metric when we’re running slow. we’re running slow.

OEE reflects losses from a functional OEE reflects losses from a functional failure.failure.

DowngradeDowngrade

Run-time downgrade may result from Run-time downgrade may result from equipment operating outside of tolerances.equipment operating outside of tolerances.

Start-stop downgrade occurs each time Start-stop downgrade occurs each time there is a line stop. there is a line stop.

Transition LossesTransition Losses

Transition losses occur during Transition losses occur during changeovers.changeovers.Lost productionLost productionScrap and secondsScrap and seconds

Transition losses become more critical as Transition losses become more critical as product runs shorten.product runs shorten.

Production SchedulingProduction Scheduling

In a produce-to-order system, expected In a produce-to-order system, expected process losses are offset by increasing the process losses are offset by increasing the scheduled production output. scheduled production output. Increases lead timeIncreases lead time Increases inventory (on-grade and Increases inventory (on-grade and

downgrade)downgrade)

Excess InventoryExcess Inventory

Inventory tends to pile up around machines with poor Inventory tends to pile up around machines with poor reliability. reliability. bottleneckingbottlenecking quality problemsquality problems

Spare parts inventory is managed according to the JIC Spare parts inventory is managed according to the JIC model – keeping one of everything “just-in-case.”model – keeping one of everything “just-in-case.”

The carrying cost of excess inventory can easily be in The carrying cost of excess inventory can easily be in the hundreds of thousands of dollars every year. the hundreds of thousands of dollars every year.

The higher the inventory, the greater the risk of damage The higher the inventory, the greater the risk of damage and obsolescence.and obsolescence.

Excess Shipping CostsExcess Shipping Costs

In a reactive maintenance culture, spare In a reactive maintenance culture, spare parts will inevitably have to be expedited. parts will inevitably have to be expedited.

Safety & Environmental ImpactSafety & Environmental Impact

Poor reliability has the potential to affect Poor reliability has the potential to affect safe operation of equipment and safe operation of equipment and compliance with environmental compliance with environmental requirements.requirements.

Excess Capital RequirementsExcess Capital Requirements

In a reactive maintenance culture, In a reactive maintenance culture, reliability may be boosted by:reliability may be boosted by:Over-design of equipmentOver-design of equipmentRedundant systemsRedundant systemsSurge capacity (to mitigate short outages)Surge capacity (to mitigate short outages) Increased warehouse capacity Increased warehouse capacity

ReworkRework

Repairs not done right the first time will Repairs not done right the first time will lead to rework.lead to rework.How many of your equipment problems are How many of your equipment problems are

newnew problems? problems?Management may be inclined to Management may be inclined to

compensate for excessive unscheduled compensate for excessive unscheduled downtime by cutting back on scheduled downtime by cutting back on scheduled maintenance . . . in turn leading to more maintenance . . . in turn leading to more unscheduled downtime.unscheduled downtime.

Cycle Time InflationCycle Time Inflation

Unscheduled line stops and operating Unscheduled line stops and operating below design capacity add to the process below design capacity add to the process cycle time.cycle time. Increased downgrade, higher work-in-Increased downgrade, higher work-in-

process, longer lead timeprocess, longer lead time

Can you afford it?Can you afford it?

The total cost of poor reliability may be The total cost of poor reliability may be many times in excess of the annual many times in excess of the annual maintenance budget.maintenance budget.