mine machine productivity rev e

8/4/2019 Mine Machine Productivity Rev E

http://slidepdf.com/reader/full/mine-machine-productivity-rev-e 1/27

MINEvolution 2011

UTILISING SMART TOOLS TO MANAGE THE

BUSINESS & COST OF FLEET MAINTENANCE

Trevor Hughes



Utilising Smart Tools to manage the cost of Fleet Maintenance Slide 2

+Maintenance Management Consultants

+Established in 2006

+Substantial growth over the last 3 years

(grown from 5 employees to 10 currently)

+Quickly established ourselves as leaders in

Classified Plant Management ( Clients include

Newcrest – Telfer, FMG, CPM, RTIO, BHPBilliton)

+Developed in close association with Ramesys

Global a Maintenance Budgeting & Reporting System

+Passionate about helping our clients achieve their

goals

Asset Management Engineers




• Why does in house Maintenance & MARC’s fail to

meet targets?

+ Poorly managed by the client rep and/or MARC Contractor

+ Lack of understanding of the MARC or Maintenance targets

+ Lack of appropriate infrastructure

+ Maintenance is not being driven

+ Too busy fighting bushfires

+ Lack of meaningful KPI’s. Focus on the “ lag” indicators

+ “Honeymoon” period

In House Maintenance & MARC’s




• Objective Maintenance Audit Tool

+ Audited 20 Sites using an Objective

Maintenance Audit Tool

+ Focuses on 8 key areas of Maintenance Management

+ Overall Results

o Max = 55.3%

o Average 46.4%

o Min 28.3%

Case Study – Smart Tools 1




Audit Results

63% 64%

59%57%

38%

63% 64%

58%

35%34% 31%

23% 22%

28%

23% 22%

0%

10%

20%

30%

40%

50%

60%

70%

Org Struct /Culture /

Leadership

WorkManagement

Contractor Management

MaterialsManagement

PerformanceMeasurement

AssetManagement /

Cont Impr

Budgeting &Cost Control

InformationTechnology

Focus should

be here

Performance Measurement includes all Maintenance KPI’s




• Is important for business success

• So why is it often so badly done?

+ Too busy trying to do our jobs

+ Often the hardest part to measure and understand

BUT IT DOESN’T HAVE TO BE! BUT IT DOESN’T HAVE TO BE!

• Imagine a tool that could give you a quick, high level

snapshot of your business performance.

+ “One Minute Manager”

Performance Measurement




•You can’t control what you don’t or can’t measure

+ Why are some KPI’s measured and not others

o In the contract (Availability)

o Easier to measure

•Two types of KPI’s

+ Lead Indicators

o Measure of your inputs or efforts

+ Lag Indicators

o Measure of the results of your inputs/efforts

Maintenance KPI’s




•Lead Indicators (Measure of your inputs or efforts)

+ Maintenance Business Process KPI’s

o Jobs by type completed in a period (by jobs & by hours)

o Schedule Loading

o Schedule Completion

o Schedule Work Ratio (by jobs & by hours)

o Preventive Ratio (by jobs & by hours)

o PM or Service Completion

o Outstanding Work

Lead Indicators


http://slidepdf.com/reader/full/mine-machine-productivity-rev-e 9/27Utilising Smart Tools to manage the cost of Fleet Maintenance Slide 9

•Lag Indicators (Measure of the results of your inputs/efforts)

+ Output measures

o Availability

o Utilisation

o % Run Time

o Reliability (measured as MTBF)

o Performance against Budget

•One Minute Manager

+ Lead indicators drive the lag indicators

Lag Indicators



•If the “lead” indicators are so important why

aren’t they measured very well?

+ Lack of processes

+ Lack of systems to capture the lead indicators+ Extra resource just to manage the information

•Smart Tools

+ Simple to use+ Extracts existing information out of your Maintenance Systems

+ Ensures the processes are followed and changes behaviour

Smart Tools



Case Study – Smart Tools 2

• Key Performance Indicator System

Next weeks scheduled

work is locked in theKPIS the week before

At the completion of the

scheduled week another snapshot of the CMMS

is taken

1

2

3

The KPIS compares

what you said you weregoing to do with what

you did do

This information is driven from data already in your CMMS



PM COMPLETION

(Ratio of system generated PM work orders (jobs) completed against

the PM work orders scheduled for the same period)

0

10

20

30

40

50

60

70

Week No

N o o f W

O ' s

0%

20%

40%

60%

80%

100%

120%

PM's Sched 32 62 29 33 52 49 37 26 42 47

PM's Comp 21 56 28 24 47 42 27 20 38 30

% 66% 90% 97% 73% 90% 86% 73% 77% 90% 64%

1106 1107 1108 1109 1110 1111 1112 1113 1114 1115

Key Performance Indicator System

+PM or Service Completion trending down

+Will lead to increased breakdowns

+Increased breakdowns reduce availability & reliability



SCHEDULE COMPLETION

(The ratio of completed scheduled work orders, compared to all work

orders scheduled for the same period)

0

10

20

30

40

50

60

70

80

90

Week No

N o o f W O ' s

0%

20%

40%

60%

80%

100%

120%

Sched WO's 47 75 43 53 64 80 60 55 51 70

Sched WO's Comp 34 66 39 38 57 57 42 33 46 47

% 72% 88% 91% 72% 89% 71% 70% 60% 90% 67%

1106 1107 1108 1109 1110 1111 1112 1113 1114 1115


+ Again Schedule Completion is trending down

+ If you are not working on what you said you would do,

then what are you working on




+ If you are not working on scheduled jobs then you must beworking on unscheduled jobs



•Often told what the Maintenance Budget is+ Meet contractual obligations

+ No work plan budget based on OEM recommendations

to justify budget

+ No automatic reforecasting of major component changes

•Case Study 3 - Smart Tools - MBRS+ Simple to use (designed for planners & supervisors)

+ Activity based budget

+ Automatic reforecasting (will automatically update the forecast based

on actual run hours)

+ Multiple scenarios and budget periods

+ Linked to your Maintenance system (SAP, Pronto, Ellipse)

Why are the “beancounters” always on my case



Maintenance Budget by Task or Activity

+ All the details behind the planned budget expenditure.



Reducing the Budget

+ Realistic reductions can be made to the budget by intelligent ‘stretching’ of service

intervals. + Compared against baseline budget to evaluate cost savings

+ Risk / return assessments can be made.



Maintenance Cost Variances

+ Quickly identify and drill down to the problem areas.

+ Allows focus on analysing reasons for failure and

+ Identifying corrective actions to prevent future failures.



Investigating the Variances



What is the Full Year Cost Outcome?



• What would the one minute manager do?

+ Focus on the lead indicators

+ If the lead indicators are under control then the lag

indicators will be under control

+ If the lag indicators are under control then the “Operations

Manager” will be off my back

+ Weekly focus on activities

+ Monthly focus on costs

+ If the costs are under control then the “beancounters” will

be off my back

In Summary



In Summary

• Utilise “smart” tools to collect, manage & report the data

+ Maintenance Systems Audit Tool

+ Maintenance Key Performance Indicator System

+ Maintenance Budgeting & Reporting System

+ Classified Plant Management System

• It is not difficult to improve Performance Measurement + Smart tools support the analysis of variance against plans

However, understanding problems is only valuableHowever, understanding problems is only valuable

if actions are taken to improve performanceif actions are taken to improve performance



•Case Study 1 – Maintenance Auditing Tool

+ Significant Maintenance Improvement

+ Standardised business processes and KPI reporting over 6 sites

•Case Study 3 - MBRS

+ Maintenance Budget was not cut

+ Used to justify manning levels

•Case Study 4 - CPMS

+ Reduces risk of non compliance with the MSIR 1995

+ Improves the management of Classified Plant on site

Outcomes / Lessons Learned



SMART MAINTENANCE IS GOOD BUSINESS !

Remember

mine machine productivity rev e

Documents