Why the Asset Reliability and

Maintenance Management Business

Functions Need to be Regulated

Terry Wireman, C.P.M.M.

Vesta Partners, LLC

The “Best”?

Sustainability…
‰ Long term commitment to maintenance and reliability
What companies are recognized as having the “Best” maintenance
and reliability programs?
‰ Let’s make a list…

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Regulated Industries

Airlines
‰ Maintenance & Reliability
Nuclear
‰ Maintenance & Reliability

Airlines

FAA Regulations
‰ Advisory Circular
ƒ Preventive Maintenance

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FAA Regulations

Sec. 43.3
Persons authorized to perform maintenance, preventive maintenance, rebuilding, and
alterations.
(a) Except as provided in this section and Sec. 43.17 [Canadian Provision], no person may
maintain, rebuild, alter, or perform preventive maintenance on an aircraft, airframe, aircraft
engine, propeller, appliance, or component part to which this part applies. Those items, the
performance of which is a major alteration, a major repair, or preventive maintenance, are
listed in appendix A.
(b) The holder of a mechanic certificate may perform maintenance, preventive
maintenance, and alterations as provided in Part 65 of this chapter.
[(c) The holder of a repairman certificate may perform maintenance, preventive
maintenance, and alterations as provided in part 65 of this chapter.]
(d) A person working under the supervision of a holder of a mechanic or repairman
certificate may perform the maintenance, preventive maintenance, and alterations that his
supervisor is authorized to perform, if the supervisor personally observes the work being
done to the extent necessary to ensure that it is being done properly and if the supervisor is
readily available, in person, for consultation. However, this paragraph does not authorize
the performance of any inspection required by Part 91 or Part 125 of this chapter or any
inspection performed after a major repair or alteration.

FAA Regulations

Part 65
Sec. 65.103

Repairman certificate: Privileges and limitations.

(a) A certificated repairman may perform or supervise the maintenance,

preventive maintenance, or alteration of aircraft or aircraft components
appropriate to the job for which the repairman was employed and certificated,
but only in connection with duties for the certificate holder by whom the
repairman was employed and recommended.

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FAA Regulations

65.77
Experience requirements.
Each applicant for a mechanic certificate or rating must present either an appropriate
graduation certificate or certificate of completion from a certificated aviation maintenance
technician school or documentary evidence, satisfactory to the Administrator, of --
(a) At least 18 months of practical experience with the procedures, practices, materials,
tools, machine tools, and equipment generally used in constructing, maintaining, or altering
airframes, or powerplants appropriate to the rating sought; or
(b) At least 30 months of practical experience concurrently performing the duties
appropriate to both the airframe and powerplant ratings.

FAA Regulations

Sec. 65.75
Knowledge requirements.
(a) Each applicant for a mechanic certificate or rating must, after meeting the
applicable experience requirements of §65.77, pass a written test covering the
construction and maintenance of aircraft appropriate to the rating he seeks, the
regulations in this subpart, and the applicable provisions of parts 43 and 91 of
this chapter. The basic principles covering the installation and maintenance of
propellers are included in the powerplant test.
(b) The applicant must pass each section of the test before applying for the oral
and practical tests prescribed by §65.79. A report of the written test is sent to the
applicant.

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FAA Regulations

65.91
(c) To be eligible for an inspection authorization, an applicant must --
(1) Hold a currently effective mechanic certificate with both an airframe rating
and a powerplant rating, each of which is currently effective and has been in
effect for a total of at least 3 years;
(2) Have been actively engaged, for at least the 2-year period before the date he
applies, in maintaining aircraft certificated and maintained in accordance with
this chapter;
(3) Have a fixed base of operations at which he may be located in person or by
telephone during a normal working week but it need not be the place where he
will exercise his inspection authority;
(4) Have available to him the equipment, facilities, and inspection data
necessary to properly inspect airframes, powerplants, propellers, or any related
part or appliance; and
(5) Pass a written test on his ability to inspect according to safety standards for
returning aircraft to service after major repairs and major alterations and annual
and progressive inspections performed under part 43 of this chapter.

FAA Regulations

Sec. 65.105

Display of certificate.

Each person who holds a repairman certificate shall keep it within the immediate
area where he normally exercises the privileges of the certificate and shall
present it for inspection upon the request of the Administrator or an authorized
representative of the National Transportation Safety Board, or of any Federal,
State, or local law enforcement officer.

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 However – They still have fun…
P = The problem logged by the pilot.
S = The solution and action taken by the engineers.
*************************************
P: Left inside main tire almost needs replacement.
S: Almost replaced left inside main tire.
P: Test flight OK, except autoland very rough.
S: Autoland not installed on this aircraft.
P: No. 2 propeller seeping prop fluid.
S: No. 2 propeller seepage normal. Nos. 1, 3 and 4 propellers lack normal
seepage.
P: Something loose in cockpit.
S: Something tightened in cockpit.
P: Dead bugs on windshield.
S: Live bugs on backorder.
P: Autopilot in altitude-hold mode produces a 200-fpm descent.
S: Cannot reproduce problem on ground.
P: Evidence of leak on right main landing gear.
S: Evidence removed.
P: DME volume unbelievably loud.
S: DME volume set to more believable level.
P: Friction locks cause throttle levers to stick.
S: That's what they're there for!
P: IFF inoperative.
S: IFF always inoperative in OFF mode.
P: Suspected crack in windscreen.
S: Suspect you're right.
P: Number 3 engine missing.
S: Engine found on right wing after brief search.
P: Aircraft handles funny.
S: Aircraft warned to straighten up, fly right, and be serious.
P: Target radar hums.
S: Reprogrammed target radar with words.
P: Mouse in cockpit.
S: Cat installed.
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NRC Regulations

§ 50.65 Requirements for monitoring the effectiveness of maintenance at nuclear power plants.
The requirements of this section are applicable during all conditions of plant operation, including normal shutdown operations.
(a)(1) Each holder of an operating license for a nuclear power plant under this part and each holder of a combined
license under part 52 of this chapter after the Commission makes the finding under § 52.103(g) of this chapter, shall
monitor the performance or condition of structures, systems, or components, against licensee-established goals, in a
manner sufficient to provide reasonable assurance that these structures, systems, and components, as defined in
paragraph (b) of this section, are capable of fulfilling their intended functions. These goals shall be established
commensurate with safety and, where practical, take into account industrywide operating experience. When the
performance or condition of a structure, system, or component does not meet established goals, appropriate corrective
action shall be taken. For a nuclear power plant for which the licensee has submitted the certifications specified in §
50.82(a)(1) or 52.110(a)(1) of this chapter, as applicable, this section shall only apply to the extent that the licensee shall
monitor the performance or condition of all structures, systems, or components associated with the storage, control, and
maintenance of spent fuel in a safe condition, in a manner sufficient to provide reasonable assurance that these
structures, systems, and components are capable of fulfilling their intended functions.

(2) Monitoring as specified in paragraph (a)(1) of this section is not required where it has been demonstrated that the
performance or condition of a structure, system, or component is being effectively controlled through the performance of
appropriate preventive maintenance, such that the structure, system, or component remains capable of performing its
intended function.

(3) Performance and condition monitoring activities and associated goals and preventive maintenance activities shall be
evaluated at least every refueling cycle provided the interval between evaluations does not exceed 24 months. The
evaluations shall take into account, where practical, industry-wide operating experience. Adjustments shall be made
where necessary to ensure that the objective of preventing failures of structures, systems, and components through
maintenance is appropriately balanced against the objective of minimizing unavailability of structures, systems, and
components due to monitoring or preventive maintenance.

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NRC Regulations

•SSC – Structures, Systems, and Components

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NRC Regulations

NUMARC 93-01
The importance of proper maintenance to safe and reliable nuclear plant
operation has long been recognized by the nuclear utility industry and
the Nuclear Regulatory Commission (NRC). The industry, since 1982,
has placed increased emphasis on improving maintenance because of
its importance in improving overall plant performance. The industry
recognizes that good maintenance is good business and is not an
option, but a necessity.

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NRC Regulations

3.0 RESPONSIBILITY
Each utility will implement a plant-specific program to meet the
intent of the Maintenance Rule. The purpose of this guideline is
to assist in developing and implementing plant-specific
programs. This guideline provides flexibility for individual utility
implementation.

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Maintenance Preventable Functional Failures

EXAMPLES OF MPFFs 34
5 NOTE: "FUNCTIONAL" HAS BEEN ADDED TO PROVIDE EMPHASIS ON
6 ASSURING SAFETY FUNCTIONAL PERFORMANCE (INCLUDING FAILURES
7 THAT CAUSE SCRAMS) RATHER THAN ADDRESSING A DEFICIENCY THAT
DOES NOT AFFECT A SAFETY FUNCTION 89
10
11 FAILURES DUE TO THE IMPLEMENTATION OF INCORRECT MAINTENANCE
12 PROCEDURES.
13
14 FAILURES DUE TO INCORRECT IMPLEMENTATION OF CORRECT
15 MAINTENANCE PROCEDURES.
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17 FAILURES DUE TO INCORRECT IMPLEMENTATION OF MAINTENANCE
18 PERFORMED WITHOUT PROCEDURES CONSIDERED WITHIN THE SKILL
19 OF THE CRAFT.
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21 FAILURES OF THE SAME KIND OCCURRING AT A UTILITY THAT HAVE
22 OCCURRED IN INDUSTRY AS DEFINED BY INDUSTRY-WIDE
23 OPERATING EXPERIENCE THAT COULD HAVE BEEN PRECLUDED BY
24 AN APPROPRIATE AND TIMELY MAINTENANCE ACTIVITY.
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26 FAILURES THAT OCCUR DUE TO THE FAILURE TO PERFORM
27 MAINTENANCE ACTIVITIES THAT ARE NORMAL AND APPROPRIATE
28 TO THE EQUIPMENT FUNCTION AND IMPORTANCE. EXAMPLES
29 INCLUDE FAILURE TO LUBRICATE WITH THE APPROPRIATE
30 MATERIALS AT APPROPRIATE FREQUENCIES, FAILURE TO ROTATE
31 EQUIPMENT THAT IS IN A STANDBY MODE FOR LONG PERIODS.

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How would Regulatory Compliance Impact your
Company??

What if you went to work one morning and you had a complete
series of regulations that you and your organization had to
comply with?
Would the regulations force the executive management of your
plant or facility to support a sustainable maintenance and
reliability strategy?

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But Wait - Aren’t You Already Regulated?

OSHA
EPA
FDA
MOC

We only have time to consider a few examples.

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OSHA

Safety and Health

How do we do?
‰ Each day more than 15 American workers fail to
return home to their loved ones.
ƒ OSHA Fact Sheet

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OSHA Prosecution

Criminal Prosecution of Willful Deaths

The OSH Act also provides that where OSHA can document that an employer willfully violated an OSHA
standard and that violation caused the death of a worker, the matter may be referred to the Justice
Department for consideration for criminal prosecution. Any criminal prosecution that the Department of
Justice pursues is usually in addition to civil citations and penalties.
Criminal referral is one enforcement tool that OSHA uses. But many cases in which willful citations are issued
as a result of fatality investigations do not merit criminal prosecution. The basic reason is that each
element of a criminal violation, including willfulness, must be proven to a jury beyond a reasonable doubt.
By contrast, to have a civil citation upheld, OSHA may meet a lesser standard of proof—preponderance of
the evidence.
The Department of Labor does not refer a case that OSHA and the Office of the Solicitor do not believe can
meet the higher burden of proof required for acceptance by the Department of Justice for consideration for
criminal prosecution.

U.S. Department of Labor

www.osha.gov
(800)

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OHSA Top Ten

The Top 10
The OSHA 2005 top 10 contains most of the same standards that have appeared on the list for the last
several fiscal years. Scaffolding violations hold the top spot for the fourth year in a row. Ladder
violations are the only new entrant to the top 10. The complete list is as follows:
‰ 1. Scaffolding (1926.451) 2005 marks the fourth straight year that scaffolding holds the top
violation spot. Scaffolding violations make up more than 10 percent of all violations found by
OSHA inspectors. Employers are bound to protect employees from falls and falling objects while
working on or near scaffolding at heights of 10 feet or more.
‰ 2. Hazard Communication (1910.1200) Hazard communication violations hold the No. 2 spot for the
second year in a row. Hazard communication violations account for approximately 8.5 percent of
all violations. Failure to develop and maintain a written program is by far the most pervasive type
of this standard violation.
‰ 3. Fall Protection (1926.501) Employers are required to provide protection for employees working
above 6 feet. Fall protection was also No. 3 on OSHA's top 10 list in the fiscal year of 2004.
‰ 4. Respiratory Protection (1910.134) Employers are required to establish and maintain a
respiratory protection program. Respiratory Protection violations have moved up from No. 5 on the
2004 list. The majority of the violations involve failure to establish a program, failure to provide
medical evaluations to determine employee ability to use a respirator and failure to provide
respirators.
‰ 5. Lockout/Tagout (1910.147) This standard outlines minimum performance requirements for
controlling hazardous energy during machinery maintenance. Violations of the lockout/tagout
standard have shown modest improvement from its 2004 inclusion as No. 4 on the list.
‰ 6. Powered Industrial Trucks (1910.178) Violations involving powered industrial trucks moved up
two spots from last year's No. 8 ranking. The violations are heavily weighted towards training
inadequacies.
‰ 7. Electrical (Wiring) (1910.305) This standard covers the grounding of electrical equipment and
has slightly improved over 2004's sixth-place ranking.
‰ 8. Machine Guarding (1910.212) Machine guarding violations have improved since the 2004 fiscal
year. However, 3.5 percent of all OSHA violations still involve failure to provide and use proper
safety guarding procedures.
‰ 9. Electrical (General Requirements) (1910.303) This standard differs from the electrical wiring
standard in that it covers general safety requirements for designing electrical systems. Taken
together, the two electrical violations would rank No. 4 on the list of top 10- most-violated OSHA
standards.
‰ 10. Ladders (1926.1053) This standard covers the general requirements for ladder safety. The 2005
fiscal year marks the first inclusion for ladders.

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EPA Regulations

Indoor Air Quality

‰ Facility Operation & Maintenance
ƒ Drivers include quality of maintenance, materials used, and
procedures to ensure effective maintenance
¾ Equipment operating schedules
¾ Control of odors & contaminants
¾ Ventilation quantities
¾ HVAC equipment maintenance & schedules
¾ HVAC inspections
¾ Building maintenance schedules
¾ Purchasing (emissions of material purchased)
¾ Preventive maintenance management

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HVAC Standard

Two organizations have developed a standard that will help ensure a consistent
minimal level of HVAC maintenance and inspection to preserve a system’s
ability to achieve acceptable thermal comfort, energy efficiency, and indoor air
quality in commercial buildings.
The American Society of Heating, Refrigerating and Air-Conditioning Engineers
(ASHRAE) and the Air Conditioning Contractors of America (ACCA) have
released ANSI/ASHRAE/ACCA Standard 180-2008, Standard Practice for
Inspection and Maintenance of Commercial Building HVAC Systems, the first
standard to address inspection and maintenance of HVAC systems.

Sept 5, 2008
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FDA Regulations

Items from an FDA inspection checklist:

‰ Is all equipment which comes in contact with food cleaned
and sanitized as often as necessary to prevent
contamination of the product?
‰ Is there any build-up or seepage of of cleaning solvents or
lubricants on the equipment that contaminate food?
‰ Is the equipment hard to disassemble for clean-up or
inspection?

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OSHA - MOC

Officially designated 29CFR 1910.119, the OSHA PSM

regulations state that any time a critical component in an
oil or chemical plant changes, a formal MOC program is
required to ensure that the proposed change is made
safely
‰ Mechanical Integrity-Requires the on-site employer to
establish and implement written procedures for the ongoing integrity
of process equipment particularly those components which contain
and control a covered process.

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Double-Teamed?

On both the federal and state levels, prosecutors increasingly are using
environmental laws instead of the Occupational Safety and Health Act (OSH
Act)1 to prosecute employers causing or threatening to cause the death or
serious injury of their employees.
Environmental laws are supplanting the OSH Act because, unlike the relatively
modest penalties contemplated by traditional workplace safety law,
environmental statutes carry the possibility, not only of substantial pecuniary
penalties, but also of felony convictions and lengthy incarceration. There is more
than a modicum of irony in the fact that the prosecutors who are vigorously
enforcing workplace safety standards appear to have all but abandoned the
OSH Act.

∗Legal Brief prepared by Daniel Riesel (Columbia Law School, 1961) and Dan Chorost
(New York University School of Law, 1996) are attorneys specializing in environmental law
and litigation at Sive, Paget & Riesel, P.C., 460 Park Avenue, New York, New York 10022,
(212) 421-2150.

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How many more standards impact maintenance
and reliability?

How many violations are there of existing standards?

‰ Compare the Federal Register
How many regulatory Lawsuits are filed annually?
How many civil lawsuits are filed each year due to violations of
basic safety and health procedures?

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What does it take to make a “sustainable” maintenance and

reliability strategy?

Develop the Maintenance and Reliability Business

‰ Mission – Vision Statements
Organize to Execute the Business Plan
‰ Geographical Organizational Structures
‰ Organizational Reporting Structures
‰ Roles and Responsibilities
‰ Appropriate Staffing Levels
Develop a Performance Management System
‰ Determine Linkage necessary to connect the maintenance and
reliability business to corporate business objectives (Profitability)
‰ Insure that all regulatory objectives are also properly measured

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Business Control System –
“Management 101”

‰ The Business - Establish goals, objectives, policies and procedures

‰ KPIs - Establish permissible variance from the guidelines
‰ Performance Management - Measure the performance and compare to the guidelines
‰ Compare the evaluation to the permissible variance
‰ Identify the variation exceptions to tolerance
‰ Determine the cause for the excessive variation exception
‰ Determine the corrective action to bring the variation back within tolerance
‰ Plan the implementation of the corrective action
‰ Schedule the implementation of the corrective action
‰ Implement the corrective action
‰ Evaluate the results of the corrective action and modify as required
‰ – Continuous Improvement

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Getting Started..

Steps to Sustainability:
‰ Develop an Awareness of the Need for M & R Process Compliance
‰ Obtain Senior Management Support and Commitment
‰ Develop Cross Organizational Support
ƒ Communication about compliance
‰ Obtain the Proper Resources to Design, Develop, and Track Performance
of a sustainable M & R Process
‰ Collect Accurate, Timely, and Meaningful Data and KPI’s
‰ Link the M & R Process to Long Term Goals and Return on Investment
‰ Assessing the new System’s Effects

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Timing…

You can start now and be proactive

Or
You can wait until it is forced on you by regulatory agencies –

The choice is yours

But it will eventually happen…

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Terry Wireman

TWireman@vestapartners.com

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