Company

LOGO

An Efficient Program of Lubrication

And Detection of Bearing failuresin Port Cranes

Ernesto Gayle

Jefe de Mantenimiento Predictivo

Panama Ports Company

Objetives

Description and History of Panama Ports Company andthe benefits we obtained through implementing anefficient lubrication system for Port Cranes.

Showing and describe the steps to follow for developingan efficient lubrication system for port cranes.

History of Panama Ports Company

Since 1997, Panama Ports Company (PPC) has been chargedwith the administration of two ports, one in each extreme of thecanal. The Balboa Port located in Panama city (Pacific Ocean) andthe Cristobal Port located in the city of Colon (Atlantic Ocean)

In the present Panama Ports Company has invested over $1,000Millions between both ports, to became Mega Ports and to increasethe capacity of the management of the freight to 6.5 milions TEUs.

Panama Ports Company mission is to become a leading port in America for services and logistics.The objective is aimed at facilitating the growth to trade and the global economy by means of newtechnical ports and auxiliary services.

Panama Ports is a one of a kind successful company operated byHutchison Port Holdings Group (HPHG), the major investment and portoperator of the world. It is also a leader in the adaptation of industrialtechnology that has improved the strength of the transport and logisticschain. With 45 ports around the world HPHG is a subsidiary of HutchisonWhampoa Limited (HWL). In 1994 if began to formally focus on control ofthe ports and services around the world.

For 9 years Panamá Ports Company has been working to achive the actual TEU’s by means ofincorporating new technology in their ports and in their auxiliary services. They have also includedwell trained personal to provide profesional customer service. and they are continually researchingefficient practices throughout the whole company in order to fulfill the challenge of addressing alldemands in a timely, efficient manner.

History resultsAs we can see in the followig graphics Panama Ports Company (PPC) presents an importantincrement in the port sector of the country (Panamá), when compared to the other two principal portadministrations of Panamá.

0

1,000.000

2,000.000

MIT PPC CCT

Movimientos por TEU’s de Contenedores nacionales de los tresPrincipales Terminales Portuaria en Panama entre Enero y Octubre del2006 y 2007

2006 2007

1,119.195

777,590

483,296

1,044.787

1,626,430

635,474

Tasa de crecimiento de Enero a Octubredel 2006 al 2007

-6.6

137.5

31.5

MIT

PPC

CCT

% %

%

Fuente de Informacion: Departamento de Estadistica Generales, Autoridad Portuaria de Panama

Use stragedy and results

In two years, due to the institution of efficient practices and the implementation of predictivemaintanance techniques, technologies and strategies, the engineering department, has transformedmaintenance practices into World Class Maintenance. This strategy has included the utilization ofsuch Predictive Technologies as: Oil Analysis, Thermography, Vibration and Ultrasound. The lattertechnology is the one that will be the topic of focus. We will explain the development, implementationand results during this presentation. It is important to mention that only the implementation of theUltrasound technology in the Ports Cranes of Balboa ports, exclusivly on bearing testing, gave usexcelent results in 2007 with a saving of over USD 95,000.00, without mentioning the use of thetechnology in other port equipment.

The following graphic indicates the distribuition of the savings obtained on the implementation of 14ports cranes and the history of bearing failures during the year 2007.

$80,640.0084%

$15,120.0016%

Ahorro de hora hombre

Ahorro de consumo degrasa

0%

25%

50%

75%

100%

Ene.

Feb.

Mar.

Abr. May.

Jun. Jul. Sep.

Oct. Nov.

Ago.

Dic.

Fecha de inicio de implementación

% fallas % fallasinesperadas

Age of the equipment

Tendecy and Global Envoronment

% Costs de Mantto vs. Costs ofProduction

Considering the prior results, Panama Ports Company shows in a positive and efficient way a completion of4 of the principal global goals for the companies around the world.

Increase from the age of our assets

Lubrication Plan and efficent inspections using Ultrasoundtechnology, extended bearing life and prevented a chain reaction offailure of similar flaws

Budget Mantto.

Reduction of the Costs of Mantto. Vs Cost of ProductionSome of the results of an efficient Lubrication plan lead to thereduction of the of maintenance cost since it used just thenecessary amount of lubrication, shortening the time of disable ofthe machine, time of maintenance and amount of man- hoursrequired . This improved the readiness of the machine for theirrespective operation increases.

Reduction of the Budget of MaintenanceUpon reducing the man-hours used and the consumption ofLubrication, the effective monitoring of the machines allows toknow their condition ahead of time. it helps us to manage theBudget of Maintenance of efficient form, demonstrating that agood plan of maintenance also one could translate like a newstrategy of making business.

cont.

Reduction of PersonnelAn efficient Plan of Lubrication allows to administer the humanresource of effective way, since taking in consideration amaintenance practice based on the condition of the machine. Inthe case of lubrication, this proven a reduction of man- hours usedby consequence of the decrease of the time of the lubrication.

Personnel

In few words.....

We passed of the practice Reactivate

Reactivate

At the beginning of the Reliability

OperationalOperational

IntrinsicIntrinsic

And the Development of the Reliability

How we managed toreach this point?

Primer Paso

Knowing the machines where we want to apply Technology

Currently, the Port of Balboa Panama Ports Company consists of thefollowing equipment:

14 Cranes Pórtico (QC)- 12 Cranes Hyundai- 2 Cranes ZPMC

48 Cranes Patios (RTG)

6 Reach Stackers

28 Empty C. Handler

190 Tractors

- 12 Cranes Hyundai- 2 Cranes ZPMC

Description of the Machines

What it is a Crane Pórtico (QC) and their funtionWhat it is a Crane Pórtico (QC) and their funtion

video

The role of a crane Pórtica within the organization is toload and unload container ships.

The integration of the functions of Hoist, Trolley, Boomand Gantry allow comply with the main objective of theteam, which why it is very important to identify thecomponents, in this case (bearings) involved todetermine their method of maintenance

This Crane is the priority # 1Within Terminal Port, becausefrom here it starts, ending thecycle of loading or unloading.

Second StepAnalysing the application of technology in the machine and its scope

Considering the Predictive Technologies (Oil Analysis, Thermography, Ultrasound, vibration, etc.), athorough study where they analyzed each component of the crane, determining the most effectivemethod of maintaining. We considered factors such as type of failures of the components (Random,Regular), methods of maintenance (CBM, OTB, FTM, etc.) and other additional factors. This allowedus to identify the strengths and limitations of each technology Predictive leading to the integration ofeach, as a single system.

video

After the analysis wascreated documentation andintegration of coverage ofthe Predictive Technologythroughout the crane,establishing thepercentage of coverage foreach technology, itsimportance and benefit,thus creating the initial toolfor sustaining andjustification for theacquisition of equipment ofeach technology.

Cont.

This step also set out the following points:

1. Critical components or equipment.

2. Creating Training Programs.

3. System unique identification of each machine andcomponents.

4. Creation of Technical Data Sheet for each machine orcomponent.

Changing Organizational Structure

Jefe deIngenier ía

Jefe del Puertode Balboa

Sup. Mec. deGrúa Pórtica

Sup. MantaPredictivo

Sup. Elec. deGrúa Pórtica

Tec. EspecialistaPredictivo

Tec. Especializadode Lubricación

Tec. Analista deLubricante

Lubricación de las Grúas mediante la Tecnología de Ultrasonido

Control de Contaminación

Tecnolog ía de Ultrasonido

Tecnolog ía de Infrarroja

Tecnolog ía de Vibració n

T écnicas de Inspecciones dePdm

Jefe del Puertode Cristóbal

Changing Organizational Structure

Control deContaminaciónTecnología de

UltrasonidoTecnología deInfrarrojaTecnología deVibraciónTécnicas deInspecciones dePdm

Lubricación de las Grúasmediante la Tecnología deUltrasonido

The Organizational Structure of EngineeringDepartment was modified by the creation of

Predictive Section. This decision has been veryimportant because it has helped set the focus

necessary resource for the development of the goalsalready established by Section.

Cont.

Third Step

Acquisition of Ultrasound Device

A study in the current market for equipment manufacturers Ultrasound whereAcquired as a first device ULTRAPROBE 10000 with their full kit.

Fourth Step

Training of the Technical Personnel

Training of Plant and Certifications:

This training enabled the staff to acquire the technical knowledge of the use andproper handling of the ultrasound equipment.

AdvantagesThe ultrasound technology is easy to handle simple language to the domainof its concepts, being easier to understand compared to other technologies.

This helped prepare the human resource of low and medium level ofknowledge, for the use of ultrasound equipment to manage the lubrication ofthe cranes.

AdvantagesThe ultrasound technology is easy to handle simple language to the domainof its concepts, being easier to understand compared to other technologies.

This helped prepare the human resource of low and medium level ofknowledge, for the use of ultrasound equipment to manage the lubrication ofthe cranes.

Fifth Step

Ejemplo de deÁrea de

InspeccionMachinery

Room

inicio

final

Entrada

Salida

video

This step creates a route inspection throughout thecrane, while starts establish reference value decibels ateach point, under similar operating conditions (speed,load, etc.). Immediately nomenclature is provided withan identification for each bearing.

This step creates a route inspection throughout thecrane, while starts establish reference value decibels ateach point, under similar operating conditions (speed,load, etc.). Immediately nomenclature is provided withan identification for each bearing.

Creating Reference Route and Inspection Crane Pórtica

Sixth Step

Start Inspections

The Maintenance Plan is divided into two Stage:

1. Lubrication of the machine based on status.

2. Inspection routine bearing.

LubricaciónLubricación¿se

detectofalla?

¿sedetectofalla?

Registrode DatosRegistrode Datos

Cierre deOrdene

de Trabajo

Cierre deOrdene

de Trabajo

Notificaciónal Tec.

Predictivo

Notificaciónal Tec.

Predictivo

si

no

Lubrication of the machine based on statusDuring the lubrication of the bearings by the Technical Specialists Lubrication establishing a routineinspection at a frequency of lubrication monthly, based on the condition of the bearing at the time that it isrunning. The use of ultrasound technology to determine the amount required lubricating the bearing and itscurrent status. The following flow indicates the steps performed subsequent to run lubrication of the bearing.

video

Sixth Step

When any problem in the bearing is detected, the TechnicalPredictive Specialist is immediately notified for further inspection.

Rutina deInspeccionRutina de

Inspeccion¿se

detectofalla?

¿sedetectofalla?

Registrode DatosRegistrode Datos

Cierre deOrdene

de Trabajo

Cierre deOrdene

de Trabajo

Creación deOrden Trabajo

Correctiva

Creación deOrden Trabajo

Correctiva

si

no

Establecerfecha de

reinspeccion

Establecerfecha de

reinspeccion

¿sedetectofalla?

¿sedetectofalla?

nosi

NotificarNotificar

Inspection routine bearing

Cont.

The Technical Predictive Specialist performs a routine inspection throughout the crane at frequent intervalseach month and a half. The ultimate goal is that through continuous lubrication and inspection a TechnicalExpertise for Lubrication will be gained and from this experience, the ability to perform the detection andanalysis of faults in the bearings.

video

Lubrication Of The Crane

Cont.

This step also set out the following points:

1. Maintenance Report.

Sample Inspection Report

This step also set out the following points :

1. Maintenance Report.

2. History System Machine

3. System building Job Order.

4. Preventive Maintenance Program.

5. Predictive Maintenance Program.

6. Root Cause Analysis

Seventh Step

Measure Result

1. Maintenance costs were reduced by 50% 2. Failures unexpected is reduced by 55% 3. Time repair and overhaul low of 60% 4. Spare Inventory was reduced by 30% 5. MTBF increased by 30% 6. Availability of machine increased by 30%

66 Great Benefits Mantt. PredictiveGreat Benefits Mantt. Predictive

Our target is to reflect the following benefitsOur target is to reflect the following benefits............

Cont.

$80,640.0084%

$15,120.0016%

Ahorro de hora hombre

Ahorro de consumo degrasa

$80,640.0084%

$15,120.0016%

Ahorro de hora hombre

Ahorro de consumo degrasa

1. Maintenance costs is reduced by %

4. Spare Inventory is reduced by %

Considering the above, so far we have obtained results in items 1 and 4, since applying the technologyduring 2007. It reflects a savings of the man-hours used. Maintenance being done before with 4 to 5technicians, only takes place with 2 technicians and in less time. The consumption of lubricants isreduced while achieving control of and changing poor lubrication practices by technicians.

0%

25%

50%

75%

100%

Ene. Feb. Mar. Abr. May. Jun. Jul. Sep. Oct. Nov.Ago. Dic.

Fecha de inicio de implementación

% fallas % fallasinesperadas

2. Failures unexpected is reduced by %

5. MTBF increased by %

6. Availability of machine increased by %

The following chart reflects achievements in points 2, 5 and 6 from the moment we implemented thePredictive technology in Feb. 2007. Notice how the % of bearing failures starts reducingas well as thepercentage of unexpected failures (Break Down) caused by bearings.

Cont.

This step also set out the following points :

1. Control Systems cost.

2. Indexes Maintenance.

3. Inventory control system.

MACHINE ROOM

Area outside of the Crane

Head block of the Crane

Technologies Predictives

AnalysisOil

Vibration

Ultrasound

Pdm

Thermography

Methods of start for theReliability of Machinery

Innovations

Indexes Measurement

Training

Utilization

Inter-Departmental Communications

Qual./ Job Descriptions

Process

Maintenance Information Integration

Work Execution

Spare Parts

Work PlanningWork Identification

0

1

2

3

4

5

6

7

8

9

10

PLANT AVERAGE World Class Work Process Technology Management People Operations

1.2 Work Planning 10.0 8.01.3 Spare Parts 10.0 5.01.4 Work Execution 10.0 5.01.5 Work Order Close out 10.0 8.0

10.0 8.0 8.02.1 Work Management Systems 10.0 5.02.2 Maint. & Diagnostics Technologies 10.0 8.02.3 Information Integration Systems 10.0 5.0

10.0 5.0 5.03.1 Cont. Improve. Methods 10.0 5.03.2 Accountability 10.0 5.03.3 Organization 10.0 4.03.4 Leadership 10.0 6.03.5 Global Metrics & Reporting 10.0 7.03.6 Communications Mechanisms 10.0 6.03.7 Goal Setting 10.0 6.03.8 Benchmarking 10.0 4.0

10.0 4.0 4.04.1 Training 10.0 6.04.2 Utilization 10.0 5.04.3 Inter-Departmental Communications 10.0 4.04.4 Qual./ Job Descriptions 10.0 4.0

10.0 4.0 4.05.1 Process 10.0 6.05.2 Maintenance Information Integration 10.0 8.0

10.0 8.0 8.01.1 Work Identification 10.0 8.0

Work Process Points available Points assignedWork Identification: (score 1 point if this area was evaluated plus) 1 1

If FDP/SRCM process is in place 1 1If a formalized Root Cause program is in place 2 2If PdM is being used 2 1If PM tasks are reviewed and optimized 2 1

If few emergency work orders are created 1 1If problems are identified automatically by technology 1 1

Work Planning: (score 1 point if evaluated plus) 1 1If formalized planning and scheduling program is in place 2 1If priorities are set and approved 2 1

If work is scheduled greater than 1 week in advance 1 1If standard work packages are used 1 1If material is available when needed 1 1If schedule compliance is greater than 95% 1 1Does the work process take into account new technologies deployed throughout theplant 1 1

Spare Parts: (score 1 point if evaluated plus) 1 1If a Spare Parts Policy has been established 3 1If spare parts are inventoried and controlled 2 1If overstocks and obsolete parts are purged 2 1

If CMMS equipment index is electronically linked to stores stock 2 1Work Execution: (score 1 point if evaluated plus) 1 1

If personnel are trained/briefed 2 1If appropriate tools are available 2 1If the latest technology is utilized 2 1

If no rework is required 3 1Work Order Close-out: (score 1 point if evaluated plus) 1 1

If as-found condition is documented 1 1If work performed is documented 1 1If as-left condition of the equipment is documented 1 1

If problems are noted 2 1If post-maintenance testing is identified 2 1If a feedback mechanism is in place 1 1If documentation is done automatically using technology, rather than entering thedata in multiple locations 1 1

Total 50 50

TechnologiesWork Management Systems: (score 1 point if evaluated plus) 1 1

If formalized Maintenance Management system is in place 3 1If a CMMS is used 2 1If maintenance history is captured 2 1If work requests generated form asset technologies, are integrated 2 1

Maintenance and Diagnostics Technologies: (score 1 point if evaluated plus) 1 1If condition based technologies are being used 2 1If predictive technologies are being used on Machinery 1 1If predictive technologies are being used on Valves and instruments 1 1If loop performance diagnostics being used 1 1If proactive technologies are being used 1 1

If preventive technologies are being used. 1 1If the information is being utilized in the maintenance decision work planning 2 1

Information Integration Systems: (score 1 point if evaluated plus 1 1If condition status reporting mechanisms exist 2 1

If information is integrated from multiple sources 3 1

If the systems are available to multiple users 2 1If the information is current 2 1

Total 30 18

Work Culture & ManagementContinuous Improvement Methods: (score 1 point if evaluated plus) 1 1

If repetitive problems are identified 3 1If periodic self-appraisals are conducted 2 1

If Root Cause Analysis is performed 2 1

If work processes are updated to reflect employee skills and deployed technology 2 1Accountability: (score 1 point if evaluated plus) 1 1

If personnel know the organizational roles and responsibilities 2 1

If personnel know what is expected of them 2 1If employees are held accountable for their performance 3 1If performance is linked to plant success 2 1

Organization: (score 1 point if evaluated plus) 1 1

If owners are identified for processes, technology, equipment 3 1

If teams are formed as needed 3 1If everyone is involved in Maintenance Optimization 3 1

Leadership: (score 1 point if evaluated plus) 1 1If management endorses PM 3 1If expectations are set 3 3

If budget is allocated for the initiative to be successful 3 1Global Metrics and Reporting: (score 1 point if evaluated plus) 1 1

If metrics are linked to plant strategies, goals, and initiatives 2 1If metrics are defined 1 1If the metrics adequately measure success 2 1

If the metrics adequately measure success 2 1If current status is distributed/posted 2 2

Communication Mechanisms (Inter-Organization): (score 1 point if evaluated plus) 1 1If information is exchanged between groups 3 1

If management issues and expectations are routinely communicated to employees 3 1if a routine management feedback mechanism is in place 3 3

Goal Setting: (score 1 point if evaluated plus) 1 1If goals have been set for the maintenance program 2 2If the goals were aligned with the overall plant objectives 3 1

If the workforce participates in goal setting 2 1If all employees know the goals 2 1

Benchmarking: (score 1 point if evaluated plus) 1 1If performed a comparison to standard industry practices 3 1If benchmarked practices against Best-in-Class 3 1

If employees were made aware of the results 3 1Total 80 43

People SkillsTraining: (score 1 point if evaluated plus) 1 1

If a training program exists 3 1If the training program is responsive to new needs 3 1If the program is periodically reviewed for content/direction 3 3

Utilization: (score 1 point if evaluated plus) 1 1

If productive work time is maximized with planning 3 1If multi-discipline coordination occurs 2 1If the “Fix It Now” approach is used 2 1If reviews of productivity and utilization factors are performed 2 1

Inter-Department Communication: (score 1 point if evaluated plus) 1 1If work team members communicate with each other 3 1If personnel learn from each other 3 1If team to team communication occurs 3 1

Qualifications/Job Descriptions: (score 1 point if evaluated plus) 1 1

If accurate job descriptions exist 3 1If qualification's/ requirements have been established 3 1If qualifications are maintained 3 1

Total 40 19

OperationsProcess : (score 1 point if evaluated plus) 1 1

If a smart field based architecture is used 3 3If equipment performance or loop variability performance requirements areestablished 3 1If loop level audits and or process audits been performed 3 1

Maintenance Information Integration: (score 1 point if evaluated plus) 1 1If diagnostic information is readily available to the operators 1 1

If diagnostic information is 'organized' in a usable format 2 2

If the operators std work practices incorporate the use of diagnostic technology 2 2If operator can investigate issue using plant deployed technology 2 1If the operator can perform corrective tasks using plant deployed technology 2 1

Total 20 14Cumulative Total 220 144

Integration of all Sections

HVPIER 13

RTG

QCBM

Predictive

Building 2

video

Final Goal

QC y RTG Muelle 13Predictivo HV & BM

Increased Reliability

Management

QC y RTG Pier 13Predictive HV & BM