“Maintenance Control”
An AMC based guideline to achieve better control of the maintenance aiming for more cost-effective water treatment systems.
Thesis: MSc Assetmanagement Control.
Student: W.J. van Vuuren.
Scientific Supervisor: Michel Kuijer.
Enterprise Supervisor: Ed Steenbergen.
Date: 27 febr 2013
Thesis Presentation
“MSc. Assetmanagement Control”
13:00 Welcome.
13:15 Thesis presentation.
13:45 Public Defense.
14:15 Assessment by the Examining Panel.
14:30 Presentation of Results and Diploma.
14:45 Reception.
15:30 Closing.
Content presentation
1. Introduction
2. Literature
3. Interviews
4. Guideline
5. Test of guideline
6. Conclusions and
recommendations
1. Introduction
Management area WSRL
l 177 Sewage pumping stations.
l 39 Water treatment installations.
l 570 km Pressure pipeline
0%
10%
20%
30%
40%
50%
60%
70%
80%
2003 2004 2005 2006 2007 2008 2009 2010
Preventive
Corrective
1. Introduction
Problem definition
Degree of control maintenance for a cost effective exploitation of the water treatment system.
WSRL
Paper industry
Petro chemical
Expansion management
area
Expected efficiency
Not predictable
Increasebudget
1. Introduction
Research question
How to achieve better control of the maintenance aiming for more cost-effective water treatment systems?
By the development of an AMC based guideline to achieve better control of the maintenance aiming for more cost-
effective water treatment systems.
2. Literature
Examined literature
l Internal control processes; (WSRL) COSO theory
l Financial control; Management accounting theory
l Technical control; RCM theory, RAMS theory
l Asset management control; AMC theory
3. Interviews
Findings out of interviews
Goal to verfy and validate problem, theory and
direction of solution and determine possible supplementary guideline requirements
l Discrepancy between strategic performance demands and risk driven maintenance objectives.
l Strategic difficult to express baseline exceeding in Euro.
l Tactical level can be better organized.
l Room for improvement cost effectiveness.
l No extra guideline criteria have emerged.
Conclusion: Need for a guideline
4. Guideline
Physical
Capital
Asset
Clean
water
Strategic Tactical Operational
LCM-
modelOBS
Asset performance (actuals)
Pro-active (acting on expected asset behavior)
Conscious re-active (acting on actual asset behavior)
Asset requirements (baselines)
Water
management
plan
So
cia
l n
ee
d
Double-loop learning Single-loop learning
Budget
Costs
Expected cost effectiveness
Realized cost effectiveness
4. Guideline
4. Guideline
Str
ate
gic
man
ag
me
nt
level
1. Forming maintenance control team.
2. Arrange instrumentation.
3. Risk assessment. (Act) Conscious re-active
Pro-active
4. Define control measures. (Plan) Pro-active
Conscious re-active
5. Information en communication. (Do)
4
3
1
2
Op
era
tio
nal m
an
ag
em
en
t le
vel
Tactical managment level
6. Monitoring. (Check)
4. Guideline
1. Forming maintenance control team
Multidisciplinary to obtain an integral approach.
l Water treatment technology
l Maintenance management/ engineering/ technology
l Operational/ tactical/ strategic alignment knowledge
l Assetmanagement and related knowledge
l Complemented with knowledge and experience for a specific event
Str
ate
gic
man
ag
men
t le
vel
1. Forming maintenance control team.
2. Arrange instrumentation.
3. Risk assessment. (Act)
Conscious re-active
Pro-active
4. Define control measures. (Plan) Pro-active
Conscious re-active
5. Information en communication. (Do)
4
3
1
2
Op
era
tio
na
l m
an
ag
em
en
t le
ve
l
Tactical managment level
6. Monitoring. (Check)
4. Guideline
l Structuring system
l Integration AMICO
l Develop dashboard/ portal
l Develop, determine integral strategic risk matrix
KPI Maintenance Cost-effectiveness
(operational watertreatment function)
2. Arrange instrumentationNot measurable, not
manageable, not controllable,
not communicable.
Str
ate
gic
ma
na
gm
en
t le
vel
1. Forming maintenance control team.
2. Arrange instrumentation.
3. Risk assessment. (Act) Conscious re-active
Pro-active
4. Define control measures. (Plan)
Pro-active
Conscious re-active
5. Information en communication. (Do)
4
3
1
2
Op
era
tio
nal
man
ag
em
en
t le
vel
Tactical managment level
6. Monitoring. (Check)
4. Guideline
l Determine the criticality of technical functions without detailed analysis
l Risk = f (uncertainty); uncertainty can be reduced by reducing the lack of information and knowledge.
l Detail information tuned in
to the criticality.
Pro-active. 3. Risk assessment (Act) 4. Define control measures (Plan)
MeasuringMaintenance Cost-effectiveness
RCM study
ComprehensiveLCM-model
PartialLCM-model
Str
ate
gic
ma
nag
me
nt
level
1. Forming maintenance control team.
2. Arrange instrumentation.
3. Risk assessment. (Act)
Conscious re-active
Pro-active
4. Define control measures. (Plan) Pro-active
Conscious re-active
5. Information en communication. (Do)
4
3
1
2
Op
era
tio
na
l m
an
ag
em
en
t le
ve
l
Tactical managment level
6. Monitoring. (Check)
4. Guideline
Conscious re-active. 3. Risk assessment (Act)/ 4. Define control measures (Plan)
Learning from unwanted events. (prevent)
l Prioritize occurred risks using integral matrix
l Determination root cause (RCA)
l Determination possible control measures
l Business-case control measures
l Selection control measures (tactical and operational)
l Database lessons learned (best practices)
Str
ate
gic
ma
nag
men
t le
ve
l
1. Forming maintenance control team.
2. Arrange instrumentation.
3. Risk assessment. (Act)
Conscious re-active
Pro-active
4. Define control measures. (Plan)
Pro-active
Conscious re-active
5. Information en communication. (Do)
4
3
1
2
Op
era
tio
nal
man
ag
em
en
t le
vel
Tactical managment level
6. Monitoring. (Check)
4. Guideline
5. Information and communication (Do)
Successful implementation control measures.
l Communication selected measures by Asset portals. (detailing the how, who, where, when and why)
l Implementation measures and allocate budgets. (training, adjustment maintenance concepts / process / project plans)
l Arranging LCM-model.(Comprehensive/ partial)
Str
ate
gic
ma
nag
men
t le
vel
1. Forming maintenance control team.
2. Arrange instrumentation.
3. Risk assessment. (Act)
Conscious re-active
Pro-active
4. Define control measures. (Plan)
Pro-active
Conscious re-active
5. Information en communication. (Do)
4
3
1
2
Op
era
tio
na
l m
an
ag
em
en
t le
ve
l
Tactical managment level
6. Monitoring. (Check)
4. Guideline
6. Monitoring (Check)
Continuous monitoring to achieve maintenance cost effectiveness.
l Determination performance killers and cost drivers.(Pareto analysis)
- Monitoring by LCM-model.
- Monitoring operational functions by dashboard . (Maintenance Cost-effectiveness)
Str
ate
gic
man
ag
me
nt
level
1. Forming maintenance control team.
2. Arrange instrumentation.
3. Risk assessment. (Act)
Conscious re-active
Pro-active
4. Define control measures. (Plan)
Pro-active
Conscious re-active
5. Information en communication. (Do)
4
3
1
2
Op
era
tio
na
l m
an
ag
em
en
t le
vel
Tactical managment level
6. Monitoring. (Check)
5. Test of guideline
Test of guideline
Verification:
l Explicit managing on system cost effectiveness is not (yet) possible.
l The relationship between the maintenance process and the intended program effects are not completely explicit.
Except for the findings above the guideline fulfills the other criteria set.
Validation:
l The application of the guideline is a process so its effect is only really measurable in the long term.
The guideline is based on generically accepted, verifiable justifiable methods and techniques based on professional existing knowledge.
6. Conclusions and recommendations
Conclusions
l Insufficient frameworks to determine PK and CD.
l Performance of a water treatment system which are expected by the board are not always in line with the performance based on risk-driven maintenance.
l No similar guideline found within the water treatment systems. Way of working depends on individuals involved.
l Frames water treatment system cannot (yet) be fully rationalized.
l The guideline can be operationalised based on available data.
l By structurally identifying PK and CD, defining control measurements, monitoring (PDCA) the actuals will be more in line with the baselines.
6. Conclusions and recommendations
Improvement factors
l Continuous structured process to achieve more control with respect to cost-effectiveness of water treatment system.
l Better choice in level of detail of information tailored to the criticality of technical functions.
l Better connection between strategic and operational level.
l Better tools / information which makes it possible to control and communicate maintenance cost effectiveness.
l Improved baseline agreements with strategic level.
l Increased focus on capital assets by modifying the COSO model which gives the physical asset a more central role.
l More focus on “perform the right activities” rather than “perform activities right”.
6. Conclusions and recommendations
Recommendations
l Expand AMICO functionality so that sub-systems can be related to system level.
l Wider deploying LCM-model than only the control functionality.
l Investigate if the application of the guideline can be centralized in the central control room.
l Investigate how transition from input-driven organization to output-driven can be executed and further consequences.
l Further investigation how RA baselines can de set by changing operational conditions. (RWA instead of DWA)
l Develop maintenance cost effectiveness the other operational functions.
6. Conclusions and recommendations
Recommendations
l Investigate further which context changes give rise to a reassessment of the criticality of technical functions.
l In addition to PK and CD investigate the value killers.
l Investigate if the degree of WVO compliances can be weighted with respect to the WVO compliance percentage.
l Deploy an asset portal for management communication.
l To achieve implementation of the guideline it is recommended to set up an implementation plan with a important focus on organizational change.
Questions??
2. Literature
Findings out of literature
2. Literature
Findings out of literature
Enrich the WSRL-COSO framework with physical capital assets
Check
Do
Plan
Act
Correct
EvaluatieMonitor
Execute
Plan
Do
Check
Act
Plan
2. Literature
Findings out of literature
1. WSRL-COSO theory
2. Management accounting theory
3. AMC theory
4. RCM theory
5. RAMS theory
The cycle of control
2. Literature
Findings out of literature
SMCE (act) =
SMCE (System Maintenance Cost-effectiveness) =
SE (act)
MC (act)
SMCE (basl) = SE (basl)
MC (basl)
X 100%
C SCE =
SE
4. Guideline
Design guideline
l AMC Approach as a backbone
l Relevant elements to consider for each AMC step.
Theoretical research
Guideline criteria
AMC steps
l To realize products each AMC step.
l Guideline criteria linked up with the AMC steps.
4. Guideline
2. Arrange instrumentation
Str
ate
gic
ma
na
gm
en
t le
vel
1. Forming maintenance control team.
2. Arrange instrumentation.
3. Risk assessment. (Act) Conscious re-active
Pro-active
4. Define control measures. (Plan)
Pro-active
Conscious re-active
5. Information en communication. (Do)
4
3
1
2
Op
era
tio
nal
man
ag
em
en
t le
vel
Tactical managment level
6. Monitoring. (Check)
4. Guideline
Str
ate
gic
ma
nag
me
nt
level
1. Forming maintenance control team.
2. Arrange instrumentation.
3. Risk assessment. (Act)
Conscious re-active
Pro-active
4. Define control measures. (Plan) Pro-active
Conscious re-active
5. Information en communication. (Do)
4
3
1
2
Op
era
tio
na
l m
an
ag
em
en
t le
ve
l
Tactical managment level
6. Monitoring. (Check)
Pro-active. 3. Risk assessment (Act)/ 4. Define control measures (Plan)
4. Guideline
4. Guideline
4. Guideline