Role of Strategic Maintenance Management in Role of Strategic Maintenance Management in Plant Profitability Plant Profitability

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Role of Strategic Maintenance Management in Role of Strategic Maintenance Management in Plant Profitability Plant Profitability

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Professor Salih O. DuffuaaProfessor Salih O. DuffuaaSystems Engineering DepartmentSystems Engineering Department

King Fahd University of Petroleum and MineralsKing Fahd University of Petroleum and Minerals

Salih DuffuaaSalih DuffuaaSalih DuffuaaSalih Duffuaa

• Dr. Duffuaa is a Professor of Industrial and Systems Dr. Duffuaa is a Professor of Industrial and Systems Engineering at the Department of Systems Engineering at Engineering at the Department of Systems Engineering at King Fahd University of Petroleum and Minerals, Dhahran, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia. He received his PhD in Operations Research Saudi Arabia. He received his PhD in Operations Research from the University of Texas at Austin, USA. His research from the University of Texas at Austin, USA. His research interests are in the areas of Operations research, Optimization, interests are in the areas of Operations research, Optimization, quality control, process improvement and maintenance quality control, process improvement and maintenance engineering and management. engineering and management.

• He teaches course in the areas of Statistics, Quality control, He teaches course in the areas of Statistics, Quality control, Production and inventory control, Maintenance and reliability Production and inventory control, Maintenance and reliability engineering and Operations Management. He consulted to engineering and Operations Management. He consulted to industry on maintenance , quality control and facility planning. industry on maintenance , quality control and facility planning. He authored a book on maintenance planning and control He authored a book on maintenance planning and control published by John Wiley and Sons and edited a book on published by John Wiley and Sons and edited a book on maintenance optimization and control. He is the Editor of the maintenance optimization and control. He is the Editor of the Journal of Quality in Maintenance Engineering, published by Journal of Quality in Maintenance Engineering, published by Emerald in the United Kingdom.Emerald in the United Kingdom.

Objective of the PresentationObjective of the PresentationObjective of the PresentationObjective of the Presentation

• Maintenance RoleMaintenance Role

• Strategic Maintenance Management.Strategic Maintenance Management.

• Strategic maintenance decision.Strategic maintenance decision.

• Capacity planning decisions and issues.Capacity planning decisions and issues.

• Measuring the performance of your Measuring the performance of your strategic maintenance management on plant strategic maintenance management on plant profitabilityprofitability

• Conclusions and further research.Conclusions and further research.

Maintenance DataMaintenance DataMaintenance DataMaintenance Data

• 100 billion spent annually on maintenance 100 billion spent annually on maintenance in the USA.in the USA.

• Downtime costs as much as $ 50,000 per Downtime costs as much as $ 50,000 per hour.hour.

• 30-40% of downtime is caused by poor 30-40% of downtime is caused by poor design or maintenance.design or maintenance.

• 18% of maintenance work unnecessary.18% of maintenance work unnecessary.

IntroductionIntroductionIntroductionIntroduction

• Maintenance Systems are critical to organizations

in order to meet their goals and objectives.• Maintenance can be used to provide competitive

advantages. • Maintenance management has evolved over time.

Now days concepts such as strategic maintenance management are emerging.

Evolution of Maintenance ManagementEvolution of Maintenance ManagementEvolution of Maintenance ManagementEvolution of Maintenance Management

• Prior to 50Prior to 50thth: Necessary evil: Necessary evil

• 50-70 : Preventive maintenance 50-70 : Preventive maintenance

• 7070thth : Life cycle costing, RCM and : Life cycle costing, RCM and Productive maintenance. Productive maintenance.

• 80 : TPM an RCM80 : TPM an RCM

• 9oth-date: Strategic view of maintenance9oth-date: Strategic view of maintenance

IntroductionIntroductionIntroductionIntroduction

PLANNING ORGANIZING

Maintenance Process

Maintenance strategy Maintenance Load Forecasting

Maintenance Capacity

Maintenance Organization

Maintenance Scheduling

Process design

Standards Performance Measurement

Project Management

MONITOR

FEEDBACK

CONTROL

Work control Material control Inventory control Cost control Managing for quality

INPUT OUTPUT

Operational

Machines

Equipment

&

Facilities

Labor

Equipment

Management Spares

Variations in

Maintenance

Demand

* Scheduling

Role of MaintenanceRole of MaintenanceRole of MaintenanceRole of Maintenance

• Organization objectivesOrganization objectives

• Profitability.Profitability.• Return on investment (ROI).Return on investment (ROI).• Customer service.Customer service.• Safety and environmentSafety and environment• Cost.Cost.• Community development.Community development.

Role of MaintenanceRole of MaintenanceRole of MaintenanceRole of Maintenance

• Maintenance has a high impact on business Maintenance has a high impact on business profitability, through its impact onprofitability, through its impact on

• Equipment capacityEquipment capacity• Availability (A)Availability (A)• Rate (R)Rate (R)

• Product quality (QR)Product quality (QR)• SafetySafety• Health and the environmentHealth and the environment• Cost of production. Cost of production.

Quantification of the ImpactQuantification of the ImpactQuantification of the ImpactQuantification of the Impact

• Maintenance provide productive capacity (PC).Maintenance provide productive capacity (PC).

• Productive capacity is a function of utilization Productive capacity is a function of utilization and over all equipment effectiveness (OEE).and over all equipment effectiveness (OEE).

• OEE = A *OEE = A * R * QR R * QR

• PC = U * OEE where :PC = U * OEE where : U is utilization U is utilization

Strategic Maintenance ObjectivesStrategic Maintenance ObjectivesStrategic Maintenance ObjectivesStrategic Maintenance Objectives

• Maximize AvailabilityMaximize Availability• Ensure equipment are operating at full capacity Ensure equipment are operating at full capacity

(rate)(rate)• Integrate and continuously improve all elements Integrate and continuously improve all elements

to ensure the best quality rate.to ensure the best quality rate.• Improve equipment utilization.Improve equipment utilization.

Strategic MaintenanceStrategic MaintenanceStrategic MaintenanceStrategic Maintenance

Strategic maintenance has three dimensionsStrategic maintenance has three dimensions

• Managerial dimensionManagerial dimension

• Technical DimensionTechnical Dimension

• OperationalOperational

• Commercial or economicCommercial or economic

Operational StrategyOperational StrategyOperational StrategyOperational Strategy

• ImplementationImplementation

• Production schedulingProduction scheduling• Spare parts inventorySpare parts inventory• Keeping with technologyKeeping with technology• Developing competencies Developing competencies

Commercial Economics Commercial Economics Commercial Economics Commercial Economics

ImplementationImplementation

• Sales and marketing.Sales and marketing.

• Production costs.Production costs.

• Maintenance costsMaintenance costs

Managerial DimensionManagerial DimensionManagerial DimensionManagerial Dimension

ImplementationImplementation

• Aligning maintenance objectives with Aligning maintenance objectives with organizational objectives.organizational objectives.

• Performance evaluationPerformance evaluation

• Human resources capacityHuman resources capacity

Technical DimensionTechnical DimensionTechnical DimensionTechnical Dimension

• Functional requirementsFunctional requirements

• Design upgradeDesign upgrade

• Maintaibility requirement Maintaibility requirement

Maintainability requirement Maintainability requirement Maintainability requirement Maintainability requirement

• Knowledge about system and plant conditionKnowledge about system and plant condition • Technical know how Technical know how • Data baseData base• InspectionInspection• Monitoring.Monitoring.

• Selection optimal mix of maintenance policesSelection optimal mix of maintenance polices• PredictivePredictive• PreventivePreventive• ReactiveReactive

Predictive Approach (PA)Predictive Approach (PA)Predictive Approach (PA)Predictive Approach (PA)

CharacteristicsCharacteristics

• Maintenance performed at needed time.Maintenance performed at needed time.

• Asses probability of failureAsses probability of failure

• Technology based.Technology based.

• AdvantageAdvantage

• Lower costsLower costs

• Extend equipment life cycleExtend equipment life cycle

• Assist in identifying root causeAssist in identifying root cause

• DisadvantageDisadvantage

• Requires investmentRequires investment

• Requires additional skillsRequires additional skills

Preventive Approach (PA)Preventive Approach (PA)Preventive Approach (PA)Preventive Approach (PA)

Characteristics Characteristics • Time based.Time based.

• Forecast and prepares for planned down time.Forecast and prepares for planned down time.

• AdvantageAdvantage• Improves resource planningImproves resource planning

• Reduces down timeReduces down time

• Control budgetControl budget

• DisadvantageDisadvantage• Activities performed regardless of need.Activities performed regardless of need.

• Possibility of statistical and human errors.Possibility of statistical and human errors.

Reactive Approach (PA)Reactive Approach (PA)Reactive Approach (PA)Reactive Approach (PA)

• Characteristics Characteristics • Run to failure.Run to failure.

• NO routine tasks performed.NO routine tasks performed.

• AdvantageAdvantage• Do not spend money unless you have to.Do not spend money unless you have to.

• DisadvantageDisadvantage• Most expensive approach.Most expensive approach.

• Less availabilityLess availability

• Longer down time.Longer down time.

• Higher capital costs.Higher capital costs.

Planning Strategic ApproachPlanning Strategic ApproachPlanning Strategic ApproachPlanning Strategic Approach

• Planning predictive strategyPlanning predictive strategy• Creative a proactive culture, long term Creative a proactive culture, long term

commitment and accountability. commitment and accountability. • Ensure availability of skills and knowledgeEnsure availability of skills and knowledge• Continuously review new technologies.Continuously review new technologies.

• Planning preventive strategyPlanning preventive strategy• Ensure availability of skills and knowledgeEnsure availability of skills and knowledge• Availability of reliability dataAvailability of reliability data

Planning Strategic ApproachPlanning Strategic ApproachPlanning Strategic ApproachPlanning Strategic Approach

• Planning reactive strategyPlanning reactive strategy

• Establish service providers.Establish service providers.• Procedure to limit down time.Procedure to limit down time.• Effective inventory management.Effective inventory management.

Capacity planning decisionsCapacity planning decisions Capacity planning decisionsCapacity planning decisions

• The deployment of the strategy requires providing The deployment of the strategy requires providing the right capacity that include qualified personnel, the right capacity that include qualified personnel, tools and equipment.tools and equipment.

• The competencies needed.The competencies needed.

• The organization and support.The organization and support.

Continuous AssessmentContinuous AssessmentContinuous AssessmentContinuous Assessment

• Goals and targets.Goals and targets.

• Performance measurementsPerformance measurements• OEEOEE

• Productive capacityProductive capacity

• ROIROI

• CostCost

• Technology adaptationTechnology adaptation

• Learning and developmentLearning and development

• Action plansAction plans

MissionMissionMissionMission

• The mission of the CEIM is to serve and support The mission of the CEIM is to serve and support organizations to develop and improve their organizations to develop and improve their maintenance systems to the best quality maintenance systems to the best quality standards: and enhance the educational process standards: and enhance the educational process for students and faculty by providing for students and faculty by providing opportunities for quality research and projectsopportunities for quality research and projects..

• The vision for CEIM is to be the leading center in The vision for CEIM is to be the leading center in maintenance management and engineering in the maintenance management and engineering in the region and a first class source of knowledge and region and a first class source of knowledge and information in the area of maintenance globally. information in the area of maintenance globally.

VisionVisionVisionVision

The CEIM mission shall be accomplished by The CEIM mission shall be accomplished by pursuing the following objectives:pursuing the following objectives:

• High-quality industrial projects and training : High-quality industrial projects and training : Conduct projects and relevant training programs in Conduct projects and relevant training programs in the area of maintenance for industry that meet or the area of maintenance for industry that meet or exceed their expectations.exceed their expectations.

• Excellence in basic and applied research: Excellence in basic and applied research:

Conduct original and high-quality basic and applied Conduct original and high-quality basic and applied research at the frontier of the area of maintenance.research at the frontier of the area of maintenance.

ObjectivesObjectivesObjectivesObjectives

• Enhance the educational process for Enhance the educational process for students: Assist students in conducting their students: Assist students in conducting their master's theses, senior projects and co-op master's theses, senior projects and co-op training programs through effective links training programs through effective links with industrywith industry..

ObjectivesObjectives ObjectivesObjectives

OpportunitiesOpportunitiesOpportunitiesOpportunities

• Create partnerships and cooperate with industry Create partnerships and cooperate with industry through industrial membership program of the through industrial membership program of the Center.Center.

• Serve industry in an efficient manner.Serve industry in an efficient manner.

• Offer well-guided training programs.Offer well-guided training programs.

• Link industry in the Kingdom with international Link industry in the Kingdom with international centers in the area of maintenance.centers in the area of maintenance.

OpportunitiesOpportunitiesOpportunitiesOpportunities

• Advance research and applications in the area of Advance research and applications in the area of maintenance.maintenance.

• Focus on inter-disciplinary research.Focus on inter-disciplinary research.

• Enhance students’ learning experienceEnhance students’ learning experience

Center Programs and ActivitiesCenter Programs and ActivitiesCenter Programs and ActivitiesCenter Programs and Activities

• High-quality industrial projects.High-quality industrial projects.

• Training programs.Training programs.

• Industrial consultations.Industrial consultations.

• Certification programs.Certification programs.

• Workshops and seminarsWorkshops and seminars

Center Programs and ActivitiesCenter Programs and ActivitiesCenter Programs and ActivitiesCenter Programs and Activities

• Link with international experts and Link with international experts and centers.centers.

• Faculty mentoring and team-workingFaculty mentoring and team-working

• Create opportunity for student projects.Create opportunity for student projects.

• Multi-disciplinary research.Multi-disciplinary research.• Industry open houseIndustry open house..

ResourcesResourcesResourcesResources

• Experienced faculty and staff.Experienced faculty and staff.

• Graduate Students.Graduate Students.

• Laboratories and software.Laboratories and software.

• Agreement with international centers in the area.Agreement with international centers in the area.

International CollaborationInternational CollaborationInternational CollaborationInternational Collaboration

• The center will establish agreements with The center will establish agreements with international centers. Already contacts started international centers. Already contacts started with:with:

• University of TorontoUniversity of Toronto• MIRCEMIRCE• University of Salford.University of Salford.• Queensland University in AustraliaQueensland University in Australia

Thank you for listening Thank you for listening

Questions or comments are welcomed.Questions or comments are welcomed.