Maintenance & Reliability Practices

Survey Findings

1

R & M Practices Questionnaire ❚ 84 questions ❚ 90% multiple choice, 10% open-ended questions ❚ 60 plants contacted to participate in survey ❚ 43 completed questionnaires returned ❚ Survey results will be sent to all participating companies

2

1

R & M Practices Questionnaire ❚ Divided into the following areas: 1. Business Perspective 2. Management and Organization 3. Reliability Strategy and Plan 4. Reliability Engineering (Technical Support) 5. Maintenance and Repair 6. Performance Management 7. Integrated Support Services 8. Human Resources 9. Materials Management 10. Economic Evaluation/Justification of R & M Investments 11. General Information 3

Participating Companies Type of industry Oil and gas extraction Manufacturing: Food, beverages & tobacco Manufacturing: Wood and paper products Manufacturing: Pharmaceutical & drugs Manufacturing: Chemical and allied products Manufacturing: Non metallic (rubber, stone, glass) Manufacturing: Primary metals (aluminum, steel, etc.) Manufacturing: Fabricating metal; cans, plumbing Manufacturing: Industrial and commercial machinery Manufacturing: Electronic and components Manufacturing: Transportation, land based vehicles Manufacturing: Transportation, aircraft, parts Utilities: Electricity generation Defense

TOTAL Small/medium size plants: R & M personnel less than 60.

Small/medium Plants

Large Plants

1 3 2 2 1 1 1 1 1 6 1 1

21

1 4 1 4 1 2 1 1 2 3 2

22 4

2

Participating Companies Classification by Size Production Process Discrete Continuous/Batch TOTAL

Small/Medium

Large

11 (26%) 10 (23%)

9 (21%) 13 (30%)

21

(49%)

22

(51%)

TOTAL 20 23

43

(47%) (53%)

(100%)

• 55% of plants work in a union environment

5

Survey Results ❚ Business Perspective ❙ Lack of awareness of the R & M function to the overall business ❙ Only 60% of plants show senior management involvement. ❙ Lack of strategic R & M performance measures. (Maintenance costs as % of CGS, Maintenance costs as % of RAV, etc.) ❙ 55% of plants have a formalized vision, mission and policy related to R & M. 6

3

Survey Results ❚ Reliability Strategy and Plan ❙ Only 49% of plants have an explicit R & M strategy ❙ Maintenance operations in plants are still carried out in a reactive mode. ❙ 52% of plants have more than 90% of their critical equipment covered by a PM/PdM program ❙ 70% of plants experience problems in coordinating maintenance activities with operations

Total Maintenance Activities Categorized by Types of Maintenance Predictive Maintenance 12%

Other 2%

Reactive Maintenance 55%

Preventive Maintenance 31%

7

Survey Results ❚ Reliability Engineering ❙ Lack of a reliability engineering orientation in their R & M activities ❙ Only 49% of plants have a reliability engineering support group. ❙ Approximately half of the plants do not perform any failure analysis on their breakdowns

Reliability Engineering Activities Performed in Plants 60 50 40 30 20 10 0

activity

8

4

Survey Results ❚ Maintenance and Repair ❙ Only 39% of plants have all maintenance jobs covered by Work Orders (WO) ❙ Only 44% of respondents have a dedicated maintenance planner ❙ On average, 5 hours/day are spent by craftsmen performing hands-on work activities ❙ Overtime averages 15% of total time. ❙ Although 90% of plants have a CMMS, only 23% of plants are planning and scheduling all their work activities through the system 9

Participating Companies Type of Industry

Number of Plants

Oil and Gas Extraction Manufacturing: Food, beverages, tobacco Manufacturing: Wood & paper products Manufacturing: Pharmaceutical & drugs Manufacturing: Chemical & allied products Manufacturing: Non metallic (rubber, etc.) Manufacturing: Primary Metals Manufacturing: Fabricating metal, cans,… Manufacturing: Industrial & commercial machinery Manufacturing: Electronic and components Manufacturing: Transportation, land based vehicles Manufacturing: Transportation, aircraft, parts Utilities: Electricity generation Defense

1 1 7 3 6 1 3 1 2 2 3 9 3 1

Total

43 10

5

Participating Companies D i s c r e t e Continuous/ P l a n t s Batch Plants

Type of industry Oil and gas extraction Manufacturing: Food, beverages & tobacco Manufacturing: Wood and paper products Manufacturing: Pharmaceutical & drugs Manufacturing: Chemical and allied products Manufacturing: Non metallic (rubber, stone, glass) Manufacturing: Primary metals (aluminum, steel, etc.) Manufacturing: Fabricating metal; cans, plumbing Manufacturing: Industrial and commercial machinery Manufacturing: Electronic and components Manufacturing: Transportation, land based vehicles Manufacturing: Transportation, aircraft, parts Utilities: Electricity generation Defense

Total

1 1 7 3 6 1 1 1 2 2 3 9

2

3 1

20

23 11

Participating Companies Age of Participating Plants 8 7 6 5 4 3 2 1 0 Less Between Between Between Between Between Greater than 10 11 and 21 and 31 and 41 and 51 and than 60 60 50 40 30 20 Age

(years)

• Average age : 32.6 years (median 31 years) 12

6

Participating Companies Who Completed the Questionnaire? Other Plant/Maintenance Planner Reliabily Manager/Engineer Maintenance Supervisor Maintenance Manager 0

10

20

30

40

50

Frequency of Responses (%)

13

Survey Results ❚ Management & Organization Figure 2: Does the Plant have a M & R plan that supports the business plan? If so, is it understood by maintenance personnel? In process of development 19%

Undestood 27% Yes 44% Neutral 10% No 36%

Not understood 8%

❙ Most common organizational structure is a combination organization ❙ Evident lack of management direction ❙ Only 44% of plants have an explicit R & M plan that supports the business plan ❙ 63% (27% of all plants) agree the plan is understood and accepted by maintenance and other affected areas. 14

7

Survey Results

Figure 3: M & R Performance Measures 70 60

❚ Performance Measurement ❙ Most widely used: Availability, safety indices, and % of planned work ❙ Strategic level indicators are seldom used. ❙ Only one third of companies use benchmarking

50 40 30 20 10 0

15

Survey Results ❚ Materials Management ❙ Significant amount of stock out of items ❙ Maintenance is only responsible for their inventory in 75% of plants ❙ 55% of plants agree there is cooperation between maintenance and purchasing functions

Figure 8: Distribution of Stock outs of Requested Items in Stores

More than 50% 15% Between 30 and 50% 15% Between 20% and 30% 10%

Less than 5% 30%

Between 5 and 20% 30%

16

8

Survey Results ❚ Economic Evaluation ❚ /Justification of R&M Investments ❙ Half of respondents have an economic evaluation procedure ❙ Measures involving the time value of money are seldom used.

Figure 9: Economic Measures Used in Companies that have an Evaluation Procedure for Investments in M&R Improvement Projects 80 70 60

Frequency 5 0 of response 4 0 (%) 30 20 10 0 Payback period

ROI

Internal rate of return

Present worth

Other

Measures

17

9