Maintenance and Reliability Case Studies and Bench-marking Data

Copyright 2009 GPAlliedCopyright 2009 GPAllied©©

Best Practice Benchmarking“Best Practice Plants have Best Practice Behaviors and those

behaviors drive Best Practice Results”

• Focused on 35 Companies that have known corporate reliability initiatives in 8 verticals– Automotive, Chemical Processing, Food & Beverage, Metals &

CMining, Petro-Chemical, Pharmaceutical, Power Generation/Transmission Pulp & Paper

• Focused on 35 Best Practice Elements Across 4 Primary AreasLeadership– Leadership

– Work Management– Reliability Engineering– Asset Health Managementg

• Results represent performance at 633 sites in over 20 countries• Additional 250 sites in overall database


Best Practice Benchmarking“I could agree with you, but then we’d both be wrong”

1. Chemical Processing 522

2. Petro-Chem 498

3 Pulp & Paper 4683. Pulp & Paper 468

4. Automotive 465

5. Pharmaceutical 431

6. Metals & Mining 430

7. Power 373


8. Food & Beverage 369

Case Study Results Ph ti l I d tPharmaceuticals Industry

• Prior to Reliability InitiativePrior to Reliability Initiative – Patented product going off patent

• After Reliability Initiativey– Reactive Maintenance 71% 7%– Overtime 22% 5% – Maintenance Employees

(FTEs) 350 250Added 9 Planners 7 PdM– Added 9 Planners, 7 PdM Technicians and 8 Reliability Engineers…

Copyright 2009 GPAlliedCopyright 2009 GPAllied©©Source: John Schultz

Case Study Results (continued) Ph ti l I d tPharmaceuticals Industry

• After Reliability Initiative• After Reliability Initiative– Availability increased 12%– Healthy Assets 35% 85%y % %– Production Deviations to 1/10th of

previous levelsMaintenance Budget reduced 40%– Maintenance Budget reduced 40%

– Inventory reduced 33%– Insurance Premiums reduced 30%

Copyright 2009 GPAlliedCopyright 2009 GPAllied©©Source: John Schultz

Case Study Results - Steel Industry

• Prior to Reliability Initiative y– On verge of bankruptcy

• After Reliability Initiative• After Reliability Initiative– Reactive Maintenance 70% 20%– Availability 78% 91% (based on 8,760 hours)

P d t Q lit (Yi ld) 76% 91%– Product Quality (Yield) 76% 91%– Inventory reduction of $40 million– Maintenance Costs reduction of 50%

M t P fit bl St l P d 1999– Most Profitable Steel Producer 1999– Ranked as #1 Steel Maker in the World by Dow Jones

Copyright 2009 GPAlliedCopyright 2009 GPAllied©©Source: Dofasco

Case Study Results - Food Processing

• Operational Asset Utilization increased 4% for each of 21 flourmillsfor each of 21 flourmills– Equivalent to adding an additional plant to the

system– Significant savings also realized by not having to

ship out of position

Copyright 2009 GPAlliedCopyright 2009 GPAllied©©Source:


• Two of a business unit’s largest food processing plants increased their OEE 9% inprocessing plants increased their OEE 9% in 4 years– Reduced maintenance spend by 28% p y– Reduced parts inventory by nearly 30%



• Meat Processing– Doubled head/day production over the past 3– Doubled head/day production over the past 3

years – $45 million swing in P&L



• European Food OilsA business unit consisting of 16 plants dropped– A business unit consisting of 16 plants dropped maintenance costs by 27% and improved RAV by 1.4% in 3 years

– At the same time, realized a 20% increase in OEE


Case Study Results - Salt• A facility has reduced Maintenance cost to

RAV ratio by 3% over the last 3 years– Equates to $2 million maintenance cost savings

from baseline year while increasing plant reliabilityreliability

– Facility had a history of missed shipments to key clients prior to initiative


Case Study Results - Chemical Processing d Mi iand Mining

• Increase OEE by nearly 30% in 2 yearsIncrease OEE by nearly 30% in 2 years– 22% reduction in their annual maintenance

expenditure– $15 million per year on the bottom line


Case Study Results - Power Generation

• Successfully extended time between plannedSuccessfully extended time between planned turnarounds by 30%– Reduce time in turnaround by 20% – 23% reduction in maintenance costs


Documents

Maintenance and Reliability Case Studies and Bench-marking Data