RCM - Maintenance RCM - Maintenance Philosophy of the Future? Philosophy of the Future?

by Peter Ormond, Strategic by Peter Ormond, Strategic Corp., AustraliaCorp., Australia

Reliability Centred Reliability Centred MaintenanceMaintenance

Original paper by Nowlan and Heap, Original paper by Nowlan and Heap, 19781978

Major re-work in RCM II by John Major re-work in RCM II by John MoubrayMoubray

SAE Standard JA1011 in 1999SAE Standard JA1011 in 1999

Maintenance PhilosophiesMaintenance Philosophies

Breakdown Maintenance

Industrial Revolution

Preventive or Change-out Maintenance

Second World War

Predictive or Condition

Based Maintenance

Mid ’60’s

Reliability Centred

Maintenance

Mid ’80’s

BHP’s ExperienceBHP’s Experience

Steel Industry World Wide ReviewSteel Industry World Wide Review Man-hours per Liquid Tonne of SteelMan-hours per Liquid Tonne of Steel Four Best Practice OrganisationsFour Best Practice Organisations Biggest difference – Maintenance Biggest difference – Maintenance

treated as a PROFIT CENTREtreated as a PROFIT CENTRE BHP was managing Maintenance as BHP was managing Maintenance as

COST CENTRECOST CENTRE

BHP Action PlanBHP Action Plan

Understand ProblemUnderstand Problem Set Overall TargetSet Overall Target

Target 40% Reduce in Maint. Cost Per Target 40% Reduce in Maint. Cost Per Tonne in 5 yearsTonne in 5 years

Develop Approach for SolutionDevelop Approach for Solution 7 Step Plan7 Step Plan

BHP’s 7 Step PlanBHP’s 7 Step Plan

1.1. Re-EducationRe-Education

2.2. Re-Define Roles & ResponsibilitiesRe-Define Roles & Responsibilities

3.3. Re-Develop MeasurementsRe-Develop Measurements

4.4. Provide Processes and SystemsProvide Processes and Systems

5.5. Apply Strategy Based MaintenanceApply Strategy Based Maintenance

6.6. Formalise Continuous ImprovementFormalise Continuous Improvement

7.7. Focus on Waste ReductionFocus on Waste Reduction

EducationEducation

Develop a new technique for Develop a new technique for applying training - SBLapplying training - SBL

Develop a high level training Develop a high level training packagepackage Introduction to Maintenance and its Introduction to Maintenance and its

ManagementManagement Apply training package to ALL Apply training package to ALL

employeesemployees

BHP’s 7 Step PlanBHP’s 7 Step Plan

1.1. Re-EducationRe-Education

2.2. Re-Define Roles & ResponsibilitiesRe-Define Roles & Responsibilities

3.3. Re-Develop MeasurementsRe-Develop Measurements

4.4. Provide Processes and SystemsProvide Processes and Systems

5.5. Apply Strategy Based MaintenanceApply Strategy Based Maintenance

6.6. Formalise Continuous ImprovementFormalise Continuous Improvement

7.7. Focus on Waste ReductionFocus on Waste Reduction

Roles & ResponsibilitiesRoles & Responsibilities

New understandings required new New understandings required new definitionsdefinitions

Some changes to organisational Some changes to organisational structurestructure

Once-off exerciseOnce-off exercise

BHP’s 7 Step PlanBHP’s 7 Step Plan

1.1. Re-EducationRe-Education

2.2. Re-Define Roles & ResponsibilitiesRe-Define Roles & Responsibilities

3.3. Re-Develop MeasurementsRe-Develop Measurements

4.4. Provide Processes and SystemsProvide Processes and Systems

5.5. Apply Strategy Based MaintenanceApply Strategy Based Maintenance

6.6. Formalise Continuous ImprovementFormalise Continuous Improvement

7.7. Focus on Waste ReductionFocus on Waste Reduction

MeasurementsMeasurements

The only way to make permanent change The only way to make permanent change is to change the way things are measuredis to change the way things are measured

Split measurements between KPI’s and Split measurements between KPI’s and the PI’s that feed themthe PI’s that feed them

KPI’s are ALL Historical, Summary and KPI’s are ALL Historical, Summary and UNCONTROLLABLEUNCONTROLLABLE

Measuring is not enough, interpreting the Measuring is not enough, interpreting the measures is the important stepmeasures is the important step

BHP’s 7 Step PlanBHP’s 7 Step Plan

1.1. Re-EducationRe-Education

2.2. Re-Define Roles & ResponsibilitiesRe-Define Roles & Responsibilities

3.3. Re-Develop MeasurementsRe-Develop Measurements

4.4. Provide Processes and SystemsProvide Processes and Systems

5.5. Apply Strategy Based MaintenanceApply Strategy Based Maintenance

6.6. Formalise Continuous ImprovementFormalise Continuous Improvement

7.7. Focus on Waste ReductionFocus on Waste Reduction

Processes and SystemsProcesses and Systems

Follow-on from all the previous stepsFollow-on from all the previous steps Includes fully developed processes, Includes fully developed processes,

procedures, documentation, etc.procedures, documentation, etc. Also includes adequate computer Also includes adequate computer

systems, both hard and software, as systems, both hard and software, as well as appropriate trainingwell as appropriate training

BHP’s 7 Step PlanBHP’s 7 Step Plan

1.1. Re-EducationRe-Education

2.2. Re-Define Roles & ResponsibilitiesRe-Define Roles & Responsibilities

3.3. Re-Develop MeasurementsRe-Develop Measurements

4.4. Provide Processes and SystemsProvide Processes and Systems

5.5. Apply Strategy Based MaintenanceApply Strategy Based Maintenance

6.6. Formalise Continuous ImprovementFormalise Continuous Improvement

7.7. Focus on Waste ReductionFocus on Waste Reduction

Strategy Based Strategy Based MaintenanceMaintenance

Understand Profit Centre Understand Profit Centre MaintenanceMaintenance

Travel World looking for solutionsTravel World looking for solutions RCM recognised as fitting exactly with RCM recognised as fitting exactly with

required philosophyrequired philosophy Love results – Hate effort requiredLove results – Hate effort required

Develop Methodology to enhance Develop Methodology to enhance RCM (RCM Turbo)RCM (RCM Turbo)

BHP’s 7 Step PlanBHP’s 7 Step Plan

1.1. Re-EducationRe-Education

2.2. Re-Define Roles & ResponsibilitiesRe-Define Roles & Responsibilities

3.3. Re-Develop MeasurementsRe-Develop Measurements

4.4. Provide Processes and SystemsProvide Processes and Systems

5.5. Apply Strategy Based MaintenanceApply Strategy Based Maintenance

6.6. Formalise Continuous ImprovementFormalise Continuous Improvement

7.7. Focus on Waste ReductionFocus on Waste Reduction

Continuous Maintenance Continuous Maintenance ImprovementImprovement

Appoint responsibilityAppoint responsibility Formalise processFormalise process Recognise shortcomings of P-D-C-ARecognise shortcomings of P-D-C-A Change Act to AUTHORISEChange Act to AUTHORISE

BHP’s 7 Step PlanBHP’s 7 Step Plan

1.1. Re-EducationRe-Education

2.2. Re-Define Roles & ResponsibilitiesRe-Define Roles & Responsibilities

3.3. Re-Develop MeasurementsRe-Develop Measurements

4.4. Provide Processes and SystemsProvide Processes and Systems

5.5. Apply Strategy Based MaintenanceApply Strategy Based Maintenance

6.6. Formalise Continuous ImprovementFormalise Continuous Improvement

7.7. Focus on Waste ReductionFocus on Waste Reduction

Waste ReductionWaste Reduction

Very similar to Continuous Very similar to Continuous Maintenance ImprovementMaintenance Improvement

Look outside ‘normal’ Maintenance Look outside ‘normal’ Maintenance spheresphere

Same structure but less frequentSame structure but less frequent

BHP Steel’s ResultsBHP Steel’s Results

Achieved Achieved 50%50% reduction in reduction in 6 6 years years Pointed to two factors having greater Pointed to two factors having greater

impact than anticipated:impact than anticipated: Re-Education of all employees into Re-Education of all employees into

common understanding of Maintenancecommon understanding of Maintenance Implementation of RCM (RCM Turbo)Implementation of RCM (RCM Turbo)

World Wide ViewWorld Wide View

Late ’80’sLate ’80’s Paper based analysesPaper based analyses Several successful exercisesSeveral successful exercises No PC ToolsNo PC Tools Almost no-one had heard of RCMAlmost no-one had heard of RCM

World Wide ViewWorld Wide View

Mid’90’sMid’90’s Many heard of RCM but few Many heard of RCM but few

knowledgeableknowledgeable Several ToolsSeveral Tools ‘‘Other’ systems claiming to be RCMOther’ systems claiming to be RCM SAE Standard JA1011SAE Standard JA1011

World Wide ViewWorld Wide View

Current 2000+Current 2000+ Few organisation not heard of RCMFew organisation not heard of RCM Most organisations have some-one with Most organisations have some-one with

detailed knowledgedetailed knowledge Many organisations have Reliability GroupMany organisations have Reliability Group Many others trying to start projectsMany others trying to start projects RCM Incorporated into University CoursesRCM Incorporated into University Courses

How does it all fit How does it all fit together?together?

Business Plan

Plant Strategy

Operating requirements Inventory plant items Life Plans for critical plant items (RCM analysis)

Document Retrieval SystemWork instructions

CMMS Task lists

Maintenance plansWork orders

RCM-Turbo The Versatile RCM-Turbo The Versatile ToolTool

Equip Codes

Fail Analysis

Task Analysis

Opt Freq

Grp Tasks

Resource Bal

Scheduling

KPI

Review

Reactive Maintenance Systems MaturityProactive

Imp

rovem

en

t S

tep

s

RCM-Turbo The Versatile RCM-Turbo The Versatile ToolTool

Equip Codes

Fail Analysis

Task Analysis

Opt Freq

Grp Tasks

Resource Bal

Scheduling

KPI

Review

CMMS

Imp

rovem

en

t S

tep

s

Reactive Maintenance Systems MaturityProactive

RCM-Turbo The Versatile RCM-Turbo The Versatile ToolTool

Equip Codes

Fail Analysis

Task Analysis

Opt Freq

Grp Tasks

Resource Bal

Scheduling

KPI

Review

RCM

CMMS

Imp

rovem

en

t S

tep

s

Reactive Maintenance Systems MaturityProactive

RCM-Turbo The Versatile RCM-Turbo The Versatile ToolTool

Equip Codes

Fail Analysis

Task Analysis

Opt Freq

Grp Tasks

Resource Bal

Scheduling

KPI

Review

RCM

RCM-Turbo RCM-Turb

o

CMMS

Imp

rovem

en

t S

tep

s

Reactive Maintenance Systems MaturityProactive

Cost of Inspection

Cost of Failure

Total Annual

Business Cost of Maint.

Optimum Frequency

Time

MTBF

FTM - Optimum Frequency based on Probability of Failure in MTBF

Frequency OptimisationFrequency Optimisation

70% Confidence non-failure

92% Confidence non-failure

Warning Time

P

F1 F

Warning TimeWarning Time

Cost of Inspection

Cost of Failure

Total Annual

Business Cost of Maint.

Optimum Frequency

Time

MTBF

CBM - Optimum Frequency based on Confidence of non Failure in Warning Time

Warning Time

Cost of Planned Repair

Frequency OptimisationFrequency Optimisation

Frequency Optimisation Frequency Optimisation GraphGraph

Frequency Optimisation Frequency Optimisation GraphGraph

Benefits Obtained fromBenefits Obtained from Frequency Optimisation Frequency Optimisation

Many Tasks Increase in Frequency – Many Tasks Increase in Frequency – Increasing ReliabilityIncreasing Reliability

Many Tasks Reduce in Frequency – Many Tasks Reduce in Frequency – Reduced Costs without Compromising Reduced Costs without Compromising ReliabilityReliability

Average Cost Reduction Average Cost Reduction 10% – 15%10% – 15% Assists ‘What If..?’ Scenario TestingAssists ‘What If..?’ Scenario Testing Justification of Maintenance DecisionsJustification of Maintenance Decisions

Benefits of RCMBenefits of RCM

Changing Organisations to Changing Organisations to Profit Profit CentreCentre rather than rather than Cost CentreCost Centre MaintenanceMaintenance

A Methodology to apply Business A Methodology to apply Business Decision to Maintenance PlanningDecision to Maintenance Planning

Supports all Current Maintenance Supports all Current Maintenance TechniquesTechniques

Consistent with and sub-part of TPMConsistent with and sub-part of TPM

Title QuestionTitle Question

RCM – Maintenance Philosophy of the RCM – Maintenance Philosophy of the Future?Future?

YES !