Finding the Hidden Factory


Ultrasound World VI

2010

Presented by: Mike Aroney


And to Accomplish the Mission


Reliability is Critical to a Fighter Pilot


To Land Safely


Maintenance Personnel are Key to Success


What Tool?

When?

(Right Tools, Right Time)


The Global Opportunity

• GDP

– $46.6 Trillion

• Industrial

– $14.9 Trillion

• Maintenance Spend

– $447 Billion

– 1.5-8X OEE multiplier

“It’s Ok to get excited about Maintenance!”


Best Practice Benchmarking

1. Chemical Processing 522

2. Petro-Chem 498

3. Pulp & Paper 468

4. Automotive 465

5. Pharmaceutical 431

6. Metals & Mining 430

7. Power 373

8. Food & Beverage 369

“I could agree with you, but then we’d both be wrong”


Areas of Return

• Cost reductions– Labor utilization

– Contractor costs

– Overtime

– Materials cost reductions (inventory/usage)

– Energy usage

• OEE improvements (capacity)– Availability

– Efficiency

– Quality


Reliability Engineering in Maintenance?

Failure modes that

no technologie

s detect

Mai

nte

nan

ce C

ost

s ($

)

Equipment on PM (%)


Time Time

Age Related = 11% Random = 89%

Failure Patterns

BathtubPattern A = 4%

Wear outPattern B = 2%

FatiguePattern C = 5%

Initial Break-in periodPattern D = 7%

RandomPattern E = 14%

Infant MortalityPattern F = 68%

Source: John Moore

Copyright 2010 GPAllied©Source: Steve Turner, OMCS International

Reduce Interval

6%

Use As Is

38%

Delete

21%

Extended Interval

23%

New Task

12%

Tasks Analyzed (include 96 new failure modes)

Review of Vendor PM Recommendations


87,297100.0%20,000Totals

8,98710.4%2,487No Modifications

Required

26,22126.0%5,200Re-Engineer

28,22232.2%6,437Replace with PdM

23,86729.4%5,876Non-Value Added or

Reassign to Ops

Man-Hours

Represented

%

of Tasks

#

of Tasks

PM Task Action

Recommendation

Source: Allied PM Evaluation at a Steel Mill

PM Evaluation Categorize PM Recommendations


PM/PdM Optimization Organizational Impact

FTE Positions Before After

PM Techs 43 17

PdM Techs 0 11

Planners 0 8

Reliability Engineers 0 2

RE Techs 0 5

Balance of Crew 57* 57*

Totals 100* 100*

* Notes Wrench time @ 28%

35 contractors

18% OT

Wrench time @ 50%

12 contractors

5% OT

Source: Allied PM Evaluation at a Steel Mill


Capture Hidden Capacity Crafts Level


• “…Nothing was missing, but we found three

more…”


How Do You Get

There From Here?


Synergy of “AND” Optimizes Reliability

Technology Maturity

Bu

sin

ess

Pro

cess

an

d

Cu

ltu

re M

atu

rity

+27%• Improved Bottom

Line Performance

• Lack of System

Support

Source: Brynjolfsson (MIT), Wireman, Troyer, Allied

High

LowLow

+75%• Significantly Improved

Bottom Line

Performance

• Practices and Systems

Aligned

Baseline •Informal

• Manual Planning

Processes

• Below Average

Business Performance

-7%• Systems are not

Complemented by Effective

Business Processes

• Significant Inefficiencies

High


Asset Health Processes

• Management – Efficient

– Proactive Workflow – Planning & Scheduling

– Material Management

– Reliability Engineering

– Operator Care

• Leadership – Effective

– Creating a Culture of Discipline and Execution


Change Management Values

80%

3:4

40%

29%


System Variation = Inefficiency

“We have processes…we just don’t follow them”

1. Selection 3. Training

2. Leadership 4. Reinforcing System


If You Have Good:

• Leadership

• Alignment

• Teamwork

• Change Management

• Innovation (both shop floor and R&D)

You’re in an excellent position to achieve

world class performance

– If you don’t have this, it doesn’t matter much

what tools you use


Philosophy

Processes

People

Tools

LEAN/Six Sigma - Systems Thinking

Management

Leadership

Management is Efficient - Decisions

Decide, Direct and Control – “Unfreeze & Freeze”

Leadership is Effective - Actions

Act and Influence – “New Thinking and

New Behaviors”


Leadership

• “…Leadership- the ability to inspire ordinary

people to consistently perform at an

extraordinary level…” – Ron Moore

• “…Leadership is an influence process.

When you are a leader, you identify the

needs of your team members and strive to

satisfy those needs so they can achieve their

objectives and the objectives of the

organization…” – Ken Blanchard


Most Organizations Are Not Aligned

• According to Harris Interactive Research (2006), only: – 37% of employees had a clear understanding of

what the organization was trying to achieve

– 20% were enthusiastic about organizational goals

– 20% saw a clear connection between their tasks and organizational goals

– 15% felt the organization enabled them to achieve their goals

– 15% felt they were in a high trust environment

– 10% felt their organization held people accountable

– 13% felt there was a high-trust, highly cooperative working relationships with other groups or departments


Process Fragmentation

• The Battle of:

– The “Verticals” vs. the “Horizontals”


Organization Culture Is Driven by 3 Things:

1. Systems– Performance management, information,

training, etc

2. Structure– Command and control/directive or team

based/self-directed; centralized decisions of import or decentralized decision making

3. Style of Leadership– Detached, command and control or engaged

and participative


Maturity Continuum

Interdependent

1

Dependent

Independent

2

3

4

5 6

7

Steven Covey

7 Habits of Highly

Effective People

1. Be proactive

2. Start with the end

in mind

3. Put first things

first

4. Think win/win

5. Seek first to

understand, then

to be understood

6. Synergize

7. Sharpen the saw


The Fleas And The Elephant

• “…If you are not achieving performance

objectives blame the system, not the

people…” - Deming


Culture: How We Learn It. . .


Managing Culture Change

• “…Culture – what people do

when the boss isn’t around…”

- Ian Fife, Shell


An Organization’s Reliability Culture =

• Operators operate and maintainers fix…they are independent functions

or

• Operations and maintenance work together interdependently to keep the assets in like-new condition so…

• “When you push the button, it runs on demand at designed capacity and desired quality”


From Parker Smith (Eastman Chemicals) - 2004 MARCON Keynote Presentation

Production

Maintenance

I better get out of here beforethey blame me for the oil leak

Production and Maintenance Relationship

Before


After

Production and Maintenance Relationship, cont’d


Managing Change

• Six (6) Factors for Changing Culture:

1. Dissatisfaction with the current state

2. Compelling vision of the desired state

3. Plan of action that will enable movement from

current state to target state

4. Engaged Executive Leadership and Workforce

5. Structure for executing

6. Information and Skill management


Stabilize the Changes

• Realign or Develop standards, procedures

• Train people in these, assessing compliance,

and measuring conformance

• Incorporate standards into:– Succession Planning, Performance Objectives,

ISO 9000 certification, Daily Management System

Install “Reinforcing Systems”


The Leader’s Role in Leading Change

• Recognize the need for change

• Have vision

• Inspire

• Communicate

• Engage

• Set example

• Plan / Adapt / Network, build the coalitions

Commitment


Questions?


Mike brings 20 years of executive leadership experience with exceptional success

developing and executing Business Strategy, Change Management, Organizational

Transformations, and Leadership Coaching, and Maintenance and Reliability Excellence

for Shipyard and Ships’ Intermediate Maintenance Activities. His specific experience

includes: NAVSEA Program Manager for the Navy Enterprise Maintenance Automated

Information System (NEMAIS), project reengineering processes for material

management, work control, planning and scheduling, budgeting, personnel

management, reliability engineering, and operator care for Navy ships’ maintenance

throughout all Navy’s SIMAs and Ship Yards from 2000 to 2004. Mike was Program

Manager for the NAVSEA Project Management College providing executive oversight on

curriculum and delivery to Carrier Availability Project Teams from 2003 to 2005.

He is adept at providing customized solutions to achieve and sustain changes in an

organization’s culture, and align the organizational to optimize execution and results of

new business approaches for maintenance and reliability. Mike has successful executive

experience developing business objectives and strategy, and aligning functional

departments to execute and sustain $1.7 billion in revenue. Mike coached and advised

senior executive teams, developed strategies and plans and follow-through with

coaching and guidance to implement best practices in Reliability Excellence.

He has industry experience with: Alcoa, Century Aluminum, CMC Steel, Novellis,

Swagelok, Pfizer Pharmaceuticals, Merck Pharmaceuticals, Johnson & Johnson Ortho,

Pearl Harbor Naval Shipyard, Joint Forces Command, Naval Sea Service Command,

Madison Metropolitan Water District, Los Angeles Metropolitan Water District, and US

Sugar Corporation to name a few.

About the Speaker

Mike Aroney

Director, Change ManagementEDUCATION

MBA

MS Education

BA Public Administration

CERTIFICATIONS

Executive Leadership

Strategic Planning

AFFILIATIONS

SMRP

AMP

CONTACT

Mike Aroney

GPAllied, LLC

4360 Corporate Rd Suite 110

Charleston, SC 29405

Work: 843-469-5458

[email protected]

Finding the Hidden Factory

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Transcript of Finding the Hidden Factory