RAM Study Technical

8/10/2019 RAM Study Technical

http://slidepdf.com/reader/full/ram-study-technical 1/23

International Study of PlantReliability and Maintenance

Effectiveness (RAM)



2Proprietary and Confidential

© 2011 HSB Solomon Associates LLC

www.SolomonOnline.com

M³ – Measure. Manage. Maximize.®, Comparative Performance Analysis™, CPA™, NCM³®, Q1 Day 1™, EII®, CEI™, CWB™, and Solomon

Profile® II are registered and proprietary trademarks of Solomon. Theabsence of any indication as such does not constitute a waiver of any andall intellectual property rights that Solomon has established.

Solomon Trademarks






Written authorization required before sharing IP with a third party

Mutual trust and obligations

Solomon’s IP

Client IP

Input Data

Methodology, Metrics& Database

Aggregated IndustryResults

Client Results

Potential Third Parties

Company Annual

Reports & Websites

Investment Community

Taxing Authorities

Consulting Firms

Non-Disclosure Agreement (NDA)

Protecting Intellectual Property (IP)






Solomon RAM Study History

Adapted for refiningusing Solomon FuelStudy process families(e.g., CDU, FCC, etc.)

2010

1995

RAM Study developedin response to arequest from theChemical

Manufacturers Association

1996

Implemented in thechemical process industryusing 17 process familiescovering >200 chemicals

2000

2008

Developed EquivalentMaintenance Complexity(EMC) factor to enhance

data normalization

RAM Study databasecontains >1,000 sites with

>8,000 process units

Re-designed RAM Studylaunched with increased value

and decreased client effort

2012






Global competition

has brought infactors previously

nonexistent

Why Participate in the RAM Study?

Desire to increase

thru put withoutmajor capitalinvestment

Knowledge orbelief that othershave developed

or adopted betterRAM practices

Benchmarkingparticipants consistentlyoutperform competitors

and demonstrateimprovement better than

industry average

Improved reliabilitytranslates into increasedavailability, capacity and

product quality

Lower cost labor, lessstringent governmentregulation, developing

markets, accessibility toraw materials, etc.






Set priorities for

alternativeimprovementaction plans

Why Participate in the RAM Study?

Realistic

performanceimprovement

targets

Long-termviability of site orprocess unit

Those operating at a lossor with unsustainable

margins will not survive

Avoid arbitrary costcuts with short-term

benefits and long-term

consequences

Choose the improvementswith the best payback ineither production or cost






Mechanical availability <97%

Unreliability (characterized by equipmentfailures) is your largest downtime contributor

Increased uptime would provide much needed capacity

Equipment failures are driving maintenance behaviors

Total plant maintenance turnaround (shutdown) occursmore frequently than once every 5 years

Breakdown maintenance is your normal mode of operation

Another Solomon Study (e.g., Fuels or Olefin Study)

points to reliability as an improvement opportunity

You Need to Benchmark Your Reliability

Performance Using the RAM Study If …






Maintenance costs are >1.4% of PRV

Maintenance costs are your highest fixed cost

Corrective maintenance costs exceed preventive andpredictive maintenance costs

Maintenance costs are not effectively controlled

Maintenance activities are predominantly corrective innature (something broke, now you must repair it)

Reactive maintenance is your normal mode of operation

Another Solomon Study (e.g., Fuels or Olefin Study)

points to maintenance as an improvement opportunity

You Need to Benchmark Your Maintenance

Performance Using the RAM Study If …






Reliability and Maintenance Benchmarking

Reliability

Maintenance

Normalized margin loss (maintenance downtimetimes standard margin) due to a facility’smechanical unavailability and failure to perform asdesigned compared to peers in the same industry

The cost of conserving a facility’s physical assetsso they operate at design performance levelscompared to peers in the same industry






Reliability and Maintenance Equilibrium

Reliability and Maintenance Are Inextricably Linked

Reliability

Maintenance

Cannot cost cut your wayto improved reliability

Maintenance costs aredriven by reliability…orthe lack thereof

Best performers achieve high reliability at low cost!

Poor performers have high cost with low reliability!






High Mechanical Availabilityand Low Cost

Low Mechanical Availability

and High Cost

94

95

9596

96

9797

98

98

15 20 25 30 35

Maintenance Efficiency Index (MEI™)

M e c h a n i c

a l A v a i l a b i l i t y ,

%

Not Sustainable E f f e

c t i v e n e s s

Efficiency

Industry Leaders

Facility

Sustainable

The Path to First Quartile






Reliability and Maintenance Optimization

M a i n t e n

a n c e C o s t s

Availability 100%

Total

Reactive

Proactive

Where are you on this graph?






13

Reliability and Maintenance Benchmarking

The RAM Study answers these questions

• Where can reliability and maintenance performance beimproved at your company, site, and process unit?

• How much improvement is reasonable, stated inquantifiable terms?

• What are the likely causes of performance gaps with peersand how can they be effectively addressed?

The key lies in the validity of comparisons

• The RAM Study’s PRV and EMC metrics ensure validcomparisons






25

0

5

10

15

20

R o t a

t i n g E q u i p m

e n t L a b o r , k

H o u r s

0 500 1,000 1,500 2,000

Plant Replacement Value, US $M

PRV Equalizing MetricRotating Equipment Craftsmen Labor Hours vs Unit PRV






0 5 10

25

0

5

10

15

20

15 25

R o t a

t i n g E q u i p m

e n t L a b o r , k

H o u r s

20

Rotating Equipment EMC, k

EMC Equalizing MetricRotating Equipment Craftsmen Labor Hours vs Unit EMC






EMC Basis

Standard Routine Labor Hours

The nominal amount of labor hours required to maintain aplant for a given size, location, configuration, and age

where:

x j = j

th

equipment type countyk = k th process type size value

zl = lth region and age values

a j = coefficient for the jth process component

p j =scaling exponent for the

j

th

EMC (Standard Routine Labor Hours)

∑ Equipment

Types (j)

= a j* ∑Process

Types (k)

p

x j +

j

ak*

p

yk +

k

∑ Region – Age

Variables (l)

al*

p

zl

l






RAM Study Peer GroupsChemical/Petrochemical Process Families

1. Olefins (19)

2. Olefin Intermediates (61)

3. Chlorinated Hydrocarbons (11)

4. Primary Aromatics (12)

5. Intermediates (22)

6. Polyolefin Thermoplastics (6)

7. Other Thermoplastics (19)

8. Elastomers (9)

9. Other Petrochemicals (18)

Number in parenthesis indicates the number of different chemicals or types within the process family.

10. Solid Inorganic Chemicals (8)

11. Liquid Inorganic Chemicals (3)

12. Gaseous Inorganic Chemicals (4)

13. Chlor-Alkali Products (4)

14. Fibers (5)

15. Agricultural Chemicals (4)

16. Fine Chemicals (2)

17. Utilities (17)






RAM Study Peer GroupsRefining Process Families

1. CDU – Atmos. Crude Distillation

2. VAC – Vacuum Crude Distillation

3. FCC – Fluid Catalytic Cracker

4. HYC – Hydrocracker

5. REF – Catalytic Reformer

6. ALKY – Alkylation

7. COK – Coker

8. DHYT – Distillate Hydrotreater

9. SRU – Sulfur Recovery Unit

10. LPG – LPG Recovery

11. PP – Power Plants

12. WWT – Wastewater Treatment

13. INC – Incineration

14. TNK – Tankage

15. BLEN – Blending

16. TER – Terminals






M a i n t e n a n c e C o s t G a p E l e m e n t s

Gap Analysis

Costs, US $/yr

R e l i a b i l i t y G a

p E l e m e n t s

Lost Margin, US $/yr (downtime attributable toreliability and maintenance causes)

RAM Study Process

Industry Data

Peer groupings based on industry(refining vs chemicals), processfamily (CDU, olefins, etc.), andphysical asset configuration(centrifugal pumps, heatexchangers, etc.)

Peer GroupBest Performers

Participant Performance

CostOpportunity

Gap

Peer GroupBest Performers

Participant Performance

Lost MarginOpportunity

Gap






MarginOpportunities

Lost productionattributable to

reliability andmaintenance causes

Monetizedbased on Solomon

standard margin

RAM Study Unique Deliverables

CostOpportunities

Laborcompany and

contractor

Materialrepair materials

Supportsupervisors and stafffor company andcontractor

Results provided by company, site, & process unit

DowntimeOpportunities

Turnaroundsfrequency and duration

Short Overhaulsfrequency and duration

Corrective

Maintenancemean time betweenfailure






Benefits of RAM Study Participation

• Provides granularity regarding reliability and maintenanceimprovement opportunities (The RAM Study is a detailed

performance analysis versus a macro financial analysis such asSolomon’s Fuel Study)

• Captures improvement opportunities by plant, process unit,equipment category, and craft

• Provides insights and opportunities for both routine (non-turnaround) and turnaround maintenance

• Benchmarks downtime attributable to reliability andmaintenance causes versus peers in the same industry

• Benchmarks maintenance costs versus peers in the sameindustry






>>

Continuing to do what

you have always donewill not providethe desiredoutcomes and couldhave adverse

consequences

Summary

BEST PERFORMERS | keep getting better | (fact – not opinion)

Since 1980, we have used our proprietary benchmarkingmethodology—Comparative Performance Analysis (CPA™)—to

show clients where their operations stand against the spectrumof their competition

POOR PERFORMERS | are falling further behind | (fact – not opinion)

You are not alone—we can help!

If your mechanical

availability is not>97%, you are

needlessly losingtoo muchvaluable

productioncapacity >>

With each 1% gain in

mechanicalavailability, you canrealize a significant

reduction inmaintenance

costs>>

If your maintenance

costs are not wellbelow 1.4% of PRV,

you are needlesslyspending toomuch money

>>





www SolomonOnline com

Contact Information for Questions,

Comments, or to Request an Invitation

Two Galleria Tower

Suite 1500

13455 Noel Road

Dallas, Texas 75240

Al Poling

RAM Study Project Manager

Phone: +1-972-739-1731

Email: [email protected]


Documents

RAM Study Technical