Abstract

Reliability and Maintenance functions and work processes exist to support business objectives, like financial return to investors while maintaining the right to operate from local communities.

Continuous Improvement in Reliability and Maintenance performance is difficult when the Corporate Environment is rapidly Changing, through asset portfolio changes from mergers & acquisitions and personnel changes from retirements & resignations.

During the new normal of constant change, Leadership is essential for success, whether we are requesting resources and influence from leadership or rallying sites to support proven practices.

DuPont has seen more than our share of opportunities and challenges during the last decade, and Tim will share Learnings from what worked well and what could have been done better.

1

Learnings from Leading Reliability and Maintenance Improvement in a Changing Corporate Environment

Learnings from Leading Reliability and Maintenance Improvement in a Changing Corporate EnvironmentAbbreviated Speaker Bio From 1987-2005 at a DuPont site here in Tennessee, Tim established and managed programs for Predictive Maintenance (PdM), Non Destructive Testing, Mechanical Integrity, Root Cause Analysis (RCA), and Reliability Centered Maintenance (RCM). He also served 3 years as a certified Six Sigma Black Belt.

In late 2005 Tim moved to a corporate R&M consulting role, and today is DuPont’s Principal Consultant for Reliability & Maintenance Engineering. He is responsible for identifying reliability & maintenance best practices, and then leveraging them through DuPont’s Reliability & Maintenance Council and Core Team. He’s been central in the design & implementation of 2nd & 3rd generation corporate reliability improvement initiatives, the company’s lead root cause analysis facilitator for numerous high profile investigations, and 2018 SMRP Conference Chair. He’s DuPont’s subject matter expert in RCA, PdM, RCM, R&M Metrics, and work processes.

Tim is a Certified Maintenance and Reliability Professional (SMRP) and a Certified Reliability Leader (AMP). Tim has travelled to over 20 countries on 4 continents, and he speaks Spanish

and some Portuguese. He lives in Dickson, Tennessee, just west of Nashville. 2

3

At DuPont, we empower the world with essential innovations to thrive…

University of Tennessee MARCON 2020 Keynote

March 12, 2020

Learnings from Leading Reliability and Maintenance Improvement

in a Changing Corporate Environment

Timothy R. Holmes, CRL, CMRP

DuPont’s Core Values

4

Safety &health

Respect for people

Highest ethical behavior

Protect the planet

Nutrition & BioSciences (to merge with IFF early 2021)• Biomaterials: Sorona®• Dietary Supplements • Food & Beverage Ingredients• Industrial Enzymes & Bioactives• Pharmaceutical Ingredients

DuPont’s Businesses and Product Lines TodaySafety and Construction• Construction Materials: Tyvek®, Corian®• Personal Protective Equipment: Kevlar®, Nomex® • Fabrics, Fibers, Nonwovens• Water Solutions

5

Electronics and Imaging• Advanced Printing Solutions• Electronic Solutions: Kapton®• Industrial Films• Medical Devices & Materials

Transportation and Industrials• Adhesives• Molykote® specialty lubricants• Packaging Materials and Solutions• Resins: Zytel® HTN, Hytrel®, Kalrez®

DuPont’s History• Gunpowder & explosives• Owned 38% of GM in 1920• Paints, dyes, & pigments• Polymers neoprene, nylon, Teflon®,

Kevlar®, Nomex®, Tyvek®, Corian®• Agricultural chemicals• Refrigerants, including Freon®• Owned Conoco 1981-1999• Divested Conoco, fibers, coatings• Spun off Chemours• Dow-DuPont merge & spin• Spinning off Nutrition & BioSciences

to merge with IFF

6

Lessons Learned – “Tell ‘em what you’re going to tell ‘em”

7

1. Be Proactive - Change is an Opportunity and a Challenge

2. Equipment and Proven Practices are basically the same Everywhere

3. Keep up with Technology and how to Sell it in your Organization

4. Standardize and Simplify

5. Continually Transfer Knowledge

6. Value People

7. Expect Divestitures and Spins, Mergers and Acquisitions

Learnings from Leading Reliability and Maintenance Improvement in a Changing Corporate Environment

Be Proactive - Change is an Opportunity and a Challenge• DuPont’s been through Divestitures, Acquisitions, Mergers (of equals),

and Spins in 10 years• Look for the proverbial “Silver Lining” – it’s usually there• Lead, vs just letting the change happen to you

• You can come out of these periods leaner, more focused, with best of both worlds ideas & tools

• Such reorganizations result in synergy savings, market focus, and differentiated management strategies when done well

• Reorganization redirects resources from other improvement activities to:• Developing and applying ground rules on Intellectual Property• Divvying software licenses (dominant user? need 2nd license?)• Making copies & trimming IT databases (SAP, libraries of corporate

procedures and tools)• It’s rewarding when you overcome challenging Barriers and Obstacles

8

Equipment & Proven Practices are the same Everywhere• Equipment doesn’t know the name of the company of facility

where it’s installed

• Alignment, Balancing, Lubrication, etc. are fundamental practices on every continent

• The Maintenance Work Process everywhere involves identifying work (through predictive maintenance/sensors/our 5 senses), planning, scheduling, preparing, doing, documenting

• Design for Reliability, Bad Actor Analysis, FRACAS (including physical failure & root cause analyses) are standard reliability engineering work processes and tools in every company

• In R&M we don’t really change what we do, we just vary in the tools we use to do it

9

Keep up with Technology & Sell it in your Organization• Walkaround PdM (data collections & analysis) is being replaced by online condition monitoring

(wifi and wireless sensors), pattern recognition, and centralized specialists

• Where applicable and available use multilingual technology (e.g. SAP in 12 languages)

• The Business Case or Value Proposition has become a huge part of our role:

• Impact on Production Volume (TEEP/OEE) and Cost of Manufacturing (energy, spares, etc.)

• Learn to develop the Business Case in the language and format that your leadership looks for

• We’re dealing with people, so ROI + success story = more powerful business case

• Pilot, document, replicate successes (replicas, not exact copies)

• If possible, interconnect data systems (Big Data, Industry 4.0)

• Use standard key fields

• Use import/export functionality10

Standardize and Simplify• Simplification is important, to minimize the effort required to achieve & sustain the gains

• Standard Work Roles & role combination matrices allow standardization of tasks by role and effective combination of roles into positions

• Role Standardization Supports Communities of Practice

• Don’t combine roles with competing objectives/time horizons (RE/ME)

11

• Standardization is important, so that as much as possible, everyone does it the same way

• CMMS master data hierarchy, equipment classes, failure history codes• Use harmonized standards, e.g. SMRP metric definitions, for consistency,

benchmarking• Where it doesn’t compromise standardization, allow localization to:

• build ownership• adjust to cultural nuances

Continually Transfer Knowledge• You never know when someone will leave (with your expertise) – institutional memory

• retirements, better offer somewhere else (competing for talent), spin offs & divestitures

• Change brings personal opportunity – but only if you’ve built skillsets and bench strength

• Use Learning Management Systems to share computer based training & not reinvent wheels

• Ramp up new employees quickly – build a sense of purpose & value, not just their knowledge

• New generations think and learn differently, value different things – challenge & develop them

• Hire to refresh the organization, not just replace who left

12

Value People• We can always be better than we are – nobody is the best at everything

• Provide clear direction, challenging and meaningful work, and resources to get work done

• If we aren’t careful, people can get lost in structural changes

• In mergers & acquisitions• value diversity of thought• look for best of both worlds solutions• give people a say in what their future looks like

• During spins & downsizing• (if you can) identify those looking to retire & those with a preference for their future, vs. just

dividing up by needed manpower, Knowledge, Skills, and Abilities• keep people informed as best you can (much can’t be shared until the right time),

13

Divestitures and Spins, Mergers and AcquisitionsBoards of Directors, on behalf of stockholders, are always looking to combine assets along the lines of future growth potential and profit …• DuPont divested (spun) Conoco into a separate company• DuPont divested Fibers to Koch Industries, and much of it became Invista• DuPont divested Performance Coatings into what became Axalta• DuPont acquired Danisco, which had acquired Genencor• DuPont spun Chemicals, Pigments, & Flouroproducts into a separate company, Chemours• DuPont merged (merger of equals) with Dow, realigned product lines, and spun into 3

companies – Dow (polymers), Corteva (agriculture), and DuPont (specialty products)• DuPont Nutrition and Biosciences is being spun off to a merger of equals with IFF

14

Divestitures and Spins, Mergers and Acquisitions• Not all Mergers are the same … “merger of equals”• After Dow-Dupont split back up into 3 companies – Dow, Corteva, DuPont:

• Dow only absorbed 2 former DuPont sites, so it made sense for them to conform to Dow• Both Corteva & DuPont were closer to 60% former DuPont assets & personnel and 40%

former Dow assets & personnel, so it made sense for those 2 companies to both be hybrids• Accept challenges to your paradigms (e.g. food safety vs. process safety)• During spins, particularly if splitting sites, manage critical spares inventory and carrying cost• Set aside as much time as you can for Integration

• Cultural differences are very challenging (business centric vs. functional decision rights)• Site size, location, support models (location of SMEs), etc. impact best organizational model• Compare work processes and procedures, tools and training, etc. (especially CMMS)• Decide on the new hybrid way of doing things• Give people time & mentoring to change to the new standard, including training & practice

• There can be legal restrictions on timing, e.g. how soon you talk to future colleagues, depending on whether you were competitors pre-merger

15

Lessons Learned - “Tell ‘em what you told ‘em”1. Be Proactive - Change is an Opportunity and a Challenge

2. Equipment and Proven Practices are basically the same Everywhere

3. Keep up with Technology and how to Sell it in your Organization

4. Standardize and Simplify

5. Continually Transfer Knowledge

6. Value People

7. Expect Divestitures and Spins, Mergers and Acquisitions

16

© 2019 DuPont de Nemours, Inc. All rights reserved. DuPont™, the DuPont Oval Logo, and all products, unless otherwise noted, denoted with ™, ℠ or ® are trademarks, service marks orregistered trademarks of affiliates of DuPont de Nemours, Inc. Nothing contained herein shall be construed as a representation that any recommendations, use or resale of the product or

process described herein is permitted and complies with the rules or regulations of any countries, regions, localities, etc., or does not infringe upon patents or other intellectual property rights ofthird parties.

The information provided herein is based on data DuPont believes to be reliable, to the best of its knowledge and is provided at the request of and without charge to our customers. Accordingly,DuPont does not guarantee or warrant such information and assumes no liability for its use. If this product literature is translated, the original English version will control and DuPont hereby

disclaims responsibility for any errors caused by translation. This document is subject to change without further notice.

dupont.com

Thanks!