Fundamentals of Asset Management

Fundamentals of Asset Management
Step 7. Optimize Operations & Maintenance (O&M) Investment A Hands-On Approach
Toms bad day
Fourth of 5 core questions

4.
What are my best O&M and CIP investment strategies?

z z
What alternative management options exist? Which are the most feasible for my organization?
AM plan 10-step process
Develop Asset Registry
Assess Condition, Failure Modes
Determine Residual Life
Determine Live Cycle & Replacement Costs
Set Target Levels of Service (LOS)
Determine Business Risk (Criticality)
Optimize O&M Investment
Optimize Capital Investment
Determine Funding Strategy
Build AM Plan
4. What are my best O&M and CIP investment strategies?

Root Cause; RCM; PdM; ORDM
Recall view 4: Management framework

Asset Management Business Processes Asset Management Plans Strategic Initiatives Annual Budgets
Operating Budget
Capital Budget
Definition
Maintenance - normal support, periodic and minor in nature,
required to sustain performance and functionality of an asset consistent with design, manufacturer, and operational requirements
What triggers a work order?

Computerized Maintenance Management System (CMMS)
Input Through put Output
z z z
Citizen complaints Supervisor drive-bys Field crew observations PdM/condition-based maintenance

z z z z
z z z z z z
Work order generation Crew scheduling Crew outfitting Crew performance Job costing Materials management
System architecture & integration Database architecture Field interface Spatial interface
Importance Of The Work Order: Asset Level

WORK ORDER
Type: PM or UM
Tells us planned (PM) or unplanned (UM) maintenance costs Builds life cycle cost history; ties to warehouse management Tells us actual direct costs of activity Tells us the activity used; necessary for activity analysis Useful in failure mode analysis Necessary for causal analysis Indirect costs on business; impact on customers (consequence analysis) Used in efficiency analysis
Estimated bill of quantities Actual Labor Plant Materials Procedure followed Failure mode noted Primary cause of failure Memos Impact on customers Unproductive time Other issues
Data feedback enables substantive analysis

Bottom-line maintenance KPIs from an AM perspective

Metric
Availability % Failure analysis % Planned work % Overtime Relative maintenance cost Technician productivity % Rework
Definition
The portion of time that a plant or major system is available for producing output of the required quality and quantity The portion of equipment downtime events that undergo a thorough analysis of failure modes, effects, and root causes The portion of corrective maintenance work hours that are planned and scheduled in advance (not unplanned breakdowns) The portion of maintenance work hours that are performed at an overtime rate Annual maintenance spending as a percentage of asset replacement value of the plant being maintained The percent of work hours spent on productive activities versus nonproductive (rework, waiting for parts, etc) The portion of maintenance work that has to be redone due to poor installation, shoddy workmanship or incorrect diagnosis
Target
95 99% 85 100% 85 95% 5 8% 1.5 2.5% 70 85% 2 - 5%
Importance of the work order: Portfolio level

WORK ORDER
Asset Assetdetails details z Type z Type z Category z Category z Size z Size z Condition z Condition z Performance history z Performance history z Failure modes z Failure modes
Asset-linked costs enable significant analysis

1.
What type of sewer suffers the greatest number of blockages caused by tree roots? How many failures are experienced by water mains of different ages in different ground conditions?
2.
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What Distinguishes EAMS from CMMS?

CMMS Asset Registry
Work Order 1 Work Order 2 Work Order N
Asset 1
Asset 2
Asset N
Focus is on the maintenance work order and maintenance performance for a defined period
Focus is on an assets performance over its life cycle and on aggregate performance of asset groups
11
The asset portfolio view - 1
12
13
14
The Cost of Maintenance

Rule of thumb Roughly speaking, planned maintenance costs one-third less than unplanned maintenance for the same task
15
Transition to Planned Maintenance

Mapping MappingTotal total Cost costthe practical side
Unplanned costs -
+
Planned costs
Total cost
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10 Y11
Y12
Time/Usage
16
Evolution of maintenance techniques

Unplanned (reactive) maintenance Proactive strategies Preventive maintenance Predictive maintenance
Condition-based
Usage-based
Run to failure
(Redesign)
17
Fitting maintenance strategies to failure curve

3 2
Predictive maintenance condition-based strategies
Corrective maintenance reactive-based strategies
Failure occurs Repair scheduled Failure reported Repair initiated
Performance
X X 1
Preventive maintenance time- and usagebased strategies
Vibration Oil X X Noise X Heat X
Parts, manuals & tools located
Time
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Cost comparison strategies & tacticsthe maintenance toolbox

Core strategies
Total productive maintenance Reliability centered maintenance Zero breakdown maintenance
Operational tactics
Design reliability analysis Accelerated deterioration elimination Failure lead-time analysis Asset condition assessment Infrastructure, equipment, & component standardization Demand criticality classification Early equipment management Commodity configuration management Location failure analysis Maintenance prevention Design for serviceability Standardized failure codes
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Total productive maintenance

z z
Embraces both asset design and maintenance Goal is to maximize Overall Equipment Effectiveness (OEE), where
OEE = availability x performance efficiency x first-time-through quality
Focuses on developing a comprehensive asset management plan for each asset for the life of the asset Ties maintenance objectives to the value chain (set-up time, lack of materials, poor quality, equipment functional failures, etc.)
20
Zero breakdown maintenance

Comprised of six core strategies
1. 2. 3. 4.
5. 6.
Eliminate continuing deterioration by establishing basic equipment conditions Eliminate continuing deterioration by complying with conditions of use Restore equipment to its optimal condition by restoring deterioration Restore processes to their optimal condition by abolishing conditions that cause accelerated deterioration Lengthen equipment lifetimes by correcting design weaknesses Eliminate unexpected failures by improving operating and maintenance skills
21
Zero breakdown maintenance

Strategies are deployed in four steps 1. Reduce variation in failure intervals 2. Lengthen equipment life 3. Periodically restore deterioration 4. Predict equipment life from its condition
22
Reliability-centered maintenancethe seven fundamental questions

1.
2.
3. 4.
5. 6.
7.
What are the functions and associated performance standards of the asset in its present operating context? In what ways does it fail to fulfill its functions? What causes each functional failure? What happens mechanically when each failure occurs? In what way does each failure matter? What can be done to predict or prevent each failure? What should be done if a suitable proactive task cannot be found?
Techniques
z
z z z z
Function and performance standards Functional failures Failure modes Failure effects Failure consequences Proactive tasks
23
Intervention actionRCM
24
Intervention actionRCM, cont.
25
Alignment of routine O&M activities with organizational strategies

Routine O&M and capital activity cycle
Plan Schedule
Organizational strategies
LOS performance targets: strategic (customer) and tactical (asset unit) levels
Agency-wide asset performance targets
Control Eval.
Execute
26
Using failure modes to determine probability of failure

Decision Issues
Start
Is capacity an issue?
Failure Mode
Likely before other modes?
Yes
Yes
Capacity
No
Has LOS changed from design?
Yes
Yes
LOS
No
Is physical reliability an issue?
Yes
Yes
Mortality
No
Redoit has to fail somehow
No
Is cost to operate an issue?
Yes
Yes
Efficiency
27
Tactical-level failure modes

Treat as mortality mode Is there a cost-effective non-asset solution?
Yes
Activate solution
No
Is operator error the cause?
Yes
Activate solution
No
Is proactive maintenance an option?
Yes
Test proactive maintenance No
Yes
Activate solution
Run to failure, refurbish, or replace (ORDM)
28
Failure mode-based management logic

Failures
Are Significant
Are Not Significant
Cannot Be Prevented by Maintenance
Can Be Prevented by Maintenance
Prevention Effective? Yes No Repair & Monitor
Redesign, Replace, Overhaul
Schedule for Maintenance
Run to Failure, Repair
29
Mortality failure mode: Determining appropriate maintenance tactics

Test proactive maintenance Is failure predictable?
No
Consider run-tofailure with planned corrective failure response
Yes
Is prediction feasible?
No
Yes
Based on condition?
Yes
Cost effective?
Yes
Consider condition-based maintenance (CBM)
No
Based on usage?
Yes
Cost effective?
Yes
Consider usage-based maintenance (UBM)
No
30
Predictive maintenance and the monitoring interval

Monitoring Interval
P X
Too late!
Performance
P to F interval
F Failure X
Time Can the progression of the failure be detected? Is there typically enough time to respond? Does consequence exceed cost of cure?
Fundamentals of Asset Management 31
Cause and effect diagramwhat to monitor

Effect
Main breaker thrown
Effect-Cause
Breaker overload Motor overload Bearing dry
Root Cause
Grease cap failed
Bearing stressed
Misaligned
Pump overload
Impeller jammed
Effect Cause Effect Cause Effect
Breaker failure
Not fully seated
Defective breaker case
Defective
Defective
Cause
32
Condition-based maintenance: Vibration analysis
33
Power evaluation
34
Most condition indicators are not visible to the unaided eye
Visual inspection
Infrared view
35
Alignment of inspection and correction data

Coupling & bearing failure Inspection
36
Baseline machine performance tests
Baseline at handover sets life cycle benchmark. Conforms to factory test curves? Fundamentals of Asset Management 37
Status sheet (summary)

Overall condition Picture of machine Description All nameplate data Electrical data
Vibration data Alignment data

Fundamentals of Asset Management 38
Equipment status list

Severity color code
39
Failure codes
z
Use cause-effect diagrams to create codes Define codes by class of asset Use drop-down list
Failure Code
z z z z z z z
Coupling failure Lube fault Misaligned Operator error Overloaded Water damage Worn
40
Condition-based maintenance
Nameplate Data
++
Vibration Signature Sonic Signature Thermal Signature Electrical Signature Performance Oil Residue Signature Signature Electromagnetic Signature
Some failures
Are significant
Are not significant
Some of these
2
Can be prevented by maintenance
3
Is preventive Corrective Maintenance maintenance Reactive Based Strategies effective? Repair Repair Failure Yes No Initiated Scheduled Occurs
Failure Reported Parts, Manuals & Tools Located Service Restored
Performance
Cannot be prevented by maintenance
Predictive Maintenance Condition Based Strategies
X
Redesign, replace overhaul
X 1
Vibration Oil X Program these Run to failure,XAudible Noise for repair X maintenance Tactical Heat X
Repair failures & monitor
Preventive Maintenance Time and Usage Based Strategies
Time
41
Toward a maintenance strategy business case

Table 6.6 Mitigation Strategies: Reuse Scheme Only Failure Modes
Maintenance Scenario A Maintenance Budget Probability Improvement cause by maintenance Maintenance Budget $15,000 0.5 Reduction Maintenance Scenario B Maintenance Scenario C Maintenance Budget $7,000 Maintenance Budget $3,500 Same Probability 1.3 Increase
Improved Probability System / sub-system / of Failure component Delivery Channel 0.010 Pump Station 0.150 1 pump fails 0.050 2 pumps fail 0.025 3 pumps fail 0.005 All pumps fail Control System 0.050 Power supply / sub-station Rising Main 0.030 Pressure or pipe deflection 0.050 Adjacent construction work 0.050 Massive earth movement 0.050 Ground movement HOR Storage 0.050 HORS structure 0.050 Variable Gate - Outlet 5W Variable Gate - Outlet to eastern carrier 0.050 0.050 Penstocks - Actuator Fail 0.050 Penstocks - Manual Overide External Factors 0.200 Power Failure Total Sum of Maximum Value
Business Risk Improved Business Improved Business Risk Exposure ($) Probability of Risk Probability of Exposure ($) Failure Exposure ($) Failure $ 302 0.010 $ 302 0.010 $ 302 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 648 684 761 302 1,512 907 1,512 2,268 2,268 1,368 342 342 342 342 3,024 16,925 8,474 0.300 0.100 0.050 0.010 0.050 0.030 0.050 0.050 0.050 0.050 0.100 0.100 0.100 0.100 0.200 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,296 1,368 1,523 605 1,512 907 1,512 2,268 2,268 1,368 684 684 684 684 3,024 20,689 8,485 0.390 0.130 0.065 0.013 0.050 0.030 0.050 0.050 0.050 0.050 0.130 0.130 0.130 0.130 0.200 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,685 1,778 1,980 786 1,512 907 1,512 2,268 2,268 1,368 889 889 889 889 3,024 22,947 8,942
Conclusion
Justifiable maintenance between $1,500 and $3,500 per annum.
42
Major components of asset data

Used to create an asset ID z Physical attributes z Geo-reference z O&M manuals z Drawings and photos z Life cycle costs z Knowledge and strategy
43
Tying together failure, reliability, and design
Military Handbook 189, Reliability Growth Management 1981
44
Linking maintenance and design

Evaluate development options Prepare operational specifications and procedures, develop maintenance and inspection strategies, prepare input to asset reference plan, develop facility data
Maintainability checks RCM

Prepare and consolidate plans and budgets
Development design
Design & construction Improve
Plan
Review and update maintenance strategies, performance, estimates, reference plan, FEMCA
Decide on remedy or improvement (or abandonment)
Schedule
Schedule asset related work
Abandonment
ORDM Analysis of asset performance and maintenance system effectiveness
Analyze
Execute
Identify and define unforseen work
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Key points from this session

Given my system, what are my best O&M strategies? Key Points:
z
Reactive emergency maintenance can be the most expensive type of maintenance and should typically make up no more than 20% to 25% of total maintenance effort Preventive and predictive-based pro-active strategies should comprise the bulk of the effort Assets, especially dynamic assets, leave discernable clues as to their capacity to perform. The most cost effective maintenance strategy for a given asset is determined by the likelihood of failure and the consequence of failure. Run to failure may well be the most costeffective maintenance strategy for a given asset, but only when coupled with a carefully developed failure response plan.
Associated Techniques:
z z z z
Condition-based monitoring plans and deployment Reliability Centered Management Root cause analysis Asset maintenance strategies (zero breakdown, total productivity, reliability centered maintenance) Failure response plans
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Toms spreadsheet
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Fundamentals of Asset Management

Step 7. Optimize Operations & Maintenance (O&M) Investment A Hands-On Approach

Toms bad day