reliability conference presentation - milan sochor oct 19 09
DESCRIPTION
Presentation: Reliability Excellence Through Culture Change and Continuous Improvement (Presented by Milan Sochor along with full paper for 2009 Smart Ideas conference in Johannesburg, South Africa)TRANSCRIPT
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Reliability Excellence
Culture Change and Continuous Improvement
2009
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AltaSteel
Edmonton, Alberta, Canada• Established 1955
• 315,000 tons/year
• $200M/year
• 420 employees
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AltaSteel
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Seeking Improvement
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Seeking Improvement
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External Practices Assessment
AltaSteel
-Largely 1st generation
- Some aspects of 2nd generation
IVARA Corporation
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External Practices Assessment
IVARA Corporation
Practices & Technologies Adoption
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Improvement Plan
Sound Technical Solutions = Quick Wins
Company Culture Change = Sustainable Results
Repair-focus > Reliability-focus
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Proactive Maintenance Initiative (PMI)
Purpose:
– Improve equipment performance, reduce costs
– Continuous improvement
– Sustained by AltaSteel personnel
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Proactive Maintenance Initiative (PMI)
• Securing future prosperity
• Knowledge retention
• Company culture change
• Urgent !
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Engaging the Union
Letter of Agreement:
Partnership to jointly implement PMI
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Change Methodology
Involvement = Ownership = Sustainability
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PMI Steering Committee
Purpose:
To jointly establish the culture and business practices that achieve and sustain reliability excellence.
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PMI Organizational Structure
Life-Cycle Engineering
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PMI Organizational Structure
Life-Cycle Engineering
Work Management
Focus Group
Materials Management
Focus Group
Reliability
Focus Group
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Focus Groups
• Unity
• Cooperation
• Purpose
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Process Development
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Process Development
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Key Performance Indicators
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New Roles
• Stores personnel
• Maintenance Planner/Schedulers
• Reliability Specialist
• Maintenance Manager
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Training and Communication
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Pilot Area
• Test and adapt to processes
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Celebrating Successes
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Asset Management Software
Implementation
• Set-up
• Data loading
• Integration
• Training
• “Live” September 21st , 2009
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Lessons Learned
Leadership
• Vision
• Leadership Involvement
• Managing Expectations
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Lessons Learned
People
• Not Just Maintenance
• Resistance to Change
• Collaboration
• Ownership
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Benefits Realized
• Skills• Union/Management relationship• Collaboration• Increased acceptance
• Workforce involvement• Knowledge transfer
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Benefits Realized
• Processes & organizational structure
• System for managing work• Best practices applied
• Storage facilities• Reduced contractors• Overall Equipment Effectiveness
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Overall Equipment Effectiveness (OEE)
Availability x Efficiency x Quality
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Asset Optimization Commitment
Overall Equipment
Effectiveness
(OEE)
Year
Actual OEE
OEE Targets
Best In Class OEE = 80%
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Return on Investment
Estimated Net Present Value $15MXXXXXXXXXXXX
Annual Operational
Profit Benefit
(USD Million)
Year
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Conclusion
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