3 Maintenances Role in an Effective Am Program

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MaintenanceMaintenance’’s Role in an Effectives Role in an EffectiveAsset Management ProgramAsset Management Program(Issues to Consider and Address)(Issues to Consider and Address)

Ed Ed LeClair LeClair – – CDM CDM

Asset Management and Capital Planning Asset Management and Capital Planning

Workshop Workshop

September 7, 2006September 7, 2006

The Promise of Asset ManagementThe Promise of Asset ManagementProgramsPrograms

Asset Management promises:

Improved system reliability

Reduced cost of ownership Effective decision-making regarding asset

maintenance, rehabilitation and replacement

Improved funding capabilities



Asset Management Seeks to AnswerAsset Management Seeks to Answer

the Following Questionsthe Following Questions

What assets are owned, where are they, whatcondition are they in, and what is theirremaining service life?

What are your assets worth in real dollars?

What needs to be done to preserve yourassets (repair, rehabilitate and/or replace)?

When will you need to rehabilitate or replace

your assets, and how much will it cost? Ultimately, what can you do to prevent

unexpected asset failures?

MaintenanceMaintenance – – The Frontline of AssetThe Frontline of AssetManagement (AM)Management (AM)

Maintain Assets

Maintain, Repair and Rehabilitate Assets

Keep Related Asset Information

What do we own and what’s its condition

Performance requirements

Analyze Asset Data

How do our assets fail

Develop Asset Management Plans

How can we keep assets from failingunexpectedly

How can we keep assets performing effectivelyand efficiently



Asset/Maintenance Management:Asset/Maintenance Management:

Complimentary PracticesComplimentary Practices – – Yes, ButYes, But……

What we frequently see: No link between business (AM) outcomes and

maintenance practices

Maintenance is heavily reactive (Costly)

Ineffective planning/scheduling “Hand onWrench” time low (Low uptime)

Work isn’t tracked effectively (No analysis)

Disciplined priorities do not exist

Maintenance plans are not evaluated Distrust of corporate goals (Job security)

The Road to Failure is Often Paved With GoodThe Road to Failure is Often Paved With GoodIntentionsIntentions – – What Can Be Done? Where to Start?What Can Be Done? Where to Start?

No ‘One-Size-Fits-All’ Approach toAsset/Maintenance Management Business Practices

Improvement is an iterative process

Begin by developing a Documented MaintenanceVision/Strategy (Begin with the end in sight)

Purpose Statement – The framework for Maintenance’s contribution to the organization

Goals/Objectives – Link to organizational goals, form basis for performance measures

Measures/Reports – Connect the dots between “what I do” and “how it contributes to

organizational success”



Develop a Documented MaintenanceDevelop a Documented Maintenance

StrategyStrategy Takes a fairly abstract and complex management

concept and makes it actionable

Key Maintenance Strategy Elements (Fundamental)

Recording of asset information

– Registry/Hierarchy/Condition/Valuation

Determine criticality of assets

Development of Asset Management Plans

– Planned/predictive maintenance

Organizational Structure/Staffing/Skills

Planning & scheduling

Use of CMMS


Strategy (continued)Strategy (continued)

Develop detailed standard operatingprocedures for each strategy elementincluding:

What needs to be done,

Why it needs to be done,

Who needs to do it,

How it will be accomplished,

When and/or how frequently it needs to bedone.

Involve staff charged with the plan’sexecution in its design




StrategyStrategy – – Recording of Asset InformationRecording of Asset Information

Develop your asset registry/information

Identify and record Maintenance Managed Items (MMI)

– Strike the right balance between suitable detail and cost

– Identify and track rebuildable components

Key Equipment Specifications (New Construction and/orRehabilitations): – Location

– Associated system and sub-system

– Asset Identifier

– Size/capacity

– Material

– Installation date and estimated remaining useful li fe

– Installation and/or replacement value

Equipment Failure Events

– Failure modes/consequences and repairs


StrategyStrategy – – Asset HierarchyAsset Hierarchy

Develop the Asset Hierarchy:

Organize your assets for cost and conditionroll-up and analysis

– Update as necessary

Parent/Child relationships Asset/Maintenance Management implications

Strike the right balance between suitable detailand cost




StrategyStrategy – – Asset Condition and ValueAsset Condition and Value

Assessing Assets’ Condition:

Many excellent condition monitoring methodsexist

Inspection assessments are sufficientlyeffective for most needs

More sophisticated assessment techniques arecomponent specific

Invest proportionally according to assetcriticality

Monitor asset condition over time

Strike the right balance between suitable detailand cost

Develop a Documented MaintenanceDevelop a Documented MaintenanceStrategyStrategy – – Asset Condition and ValueAsset Condition and Value Assessment practices

Visual inspections

Performance testing

Diagnostic testing

Typical condition assessment program:

Utility staff or contract service providers

Criteria for condition assessments

Frequency/staging

Remaining Asset Useful Life/Value

Generally straight-line depreciation

Operating context of assets




StrategyStrategy – – Asset CriticalityAsset Criticality

Rank Assets’ Criticality: – Not all assets are created equal, “mission

critical”

– Update regularly

– Asset/Maintenance Management implications

– Maintenance takes the lead in determiningprobability of failure

Ranking Criteria

– Consequence of failure and probability of failure

– Consequence of failure

– Safety – Economics – Statutory Obligations

Develop a Documented MaintenanceDevelop a Documented MaintenanceStrategyStrategy – – Asset Management PlansAsset Management Plans

Total Asset Management Plan (TAMP) is theaggregate of all individual asset plans

Designed to prevent or manage asset failure

Planned maintenance:

Inspection/lubrication/etc

Scheduled overhaul/replacement tasks

Predictive maintenance

Task selection:

Failure Modes, Effects and ConsequenceAnalysis (FMECA)

Reliability Centered Maintenance (RCM)Process




StrategyStrategy -- Asset Management PlansAsset Management Plans

Develop a Documented Maintenance StrategyDevelop a Documented Maintenance Strategy --Organizational Structure/Staffing/SkillsOrganizational Structure/Staffing/Skills

Workload and service

delivery options

Asset Management Plan

Organizational Structure

Internal Maintenance

Staff/Skills

Operations staff

involvement

Outside contractors




StrategyStrategy – – Planning & SchedulingPlanning & Scheduling

Planning and Scheduling:

Elements of a planned/scheduled job:

– Need is shown – work is scoped

– Analysis – job is broken out to component tasks

– Required skills – are identified and time estimatesmade

– Materials – are identified, ordered and on hand

– Special tools – are gathered

– Required specs and drawings are on hand

– Related activities – are listed and scheduled

– Disciplined priorities

– Communication



Why plan and schedule work?

Productivity losses: – Waiting for instructions/spare parts

– Multiple trips between worksite and the storeroom for partsand materials

– Not having proper tools/information

– Work site not ready

– “3-5 hours of execution time can be saved for every hour ofadvance preparation”

Planning = Thoughtful and Analytical – Information capture/accuracy

– Maintains records

– Generates reports

– Tracks overall performance





Supervisor versus Planner/scheduler Usually determined by utility’s operating

context

Develop a Documented MaintenanceDevelop a Documented MaintenanceStrategyStrategy – – Use of CMMSUse of CMMS

A CMMS Supports Asset ManagementPractices by:

Cataloging the inventory of assets

Storing and retrieving asset data includingwork history

Providing necessary information for

repair/replace decisions Providing ability to record and track labor and

material costs

Tracking asset’s life-cycle costs (labor andmaterial) and rehabilitations

All but the smallest utilities will find it hard toapply AM practices without a CMMS




StrategyStrategy – – Maintenance MeasuresMaintenance Measures

Maintenance performance measures can helptrack results, improve service, andcommunicate results and what’s important

Many good maintenance measures exist, but…

Measures Background:

First make sure you’re doing the right work,then measures can help determine if you’redoing the work right (outcomes versusoutputs)

Measure systems should be positive, notpunitive

Not an end, but just the beginning…

The Road to Failure is Often Paved WithThe Road to Failure is Often Paved WithGood IntentionsGood Intentions – – The Final AnalysisThe Final Analysis

Asset Management promises:

Improved system reliability

Reduced cost of ownership

Effective decision-making regarding assetmaintenance, rehabilitation and replacement

Improved funding capabilities

Asset Management needs: Accurate asset information capture and

analysis

Appropriate asset management plans

Effective execution of maintenance activities

Maintenance involvement in CIP

Skilled and motivated maintenance staff



QUESTIONS?QUESTIONS?

3 Maintenances Role in an Effective Am Program

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