William Calder

Asset Maintenance Manager,

Kelvin Power, South Africa

KELVIN POWER

22-24 November 2010, Johannesburg

HISTORY OF KELVIN POWERHISTORY OF KELVIN POWERHISTORY OF KELVIN POWERHISTORY OF KELVIN POWER

1950’S: City of Johannesburg

A STATION (11 Boilers & 6 Turbines)

1960’S: City of Johannesburg

B STATION (7 Boilers & 7 Turbines)

AUG 2001: AES - Privatisation

MAR 2003: GLOBELEQ purchased from AES

MAR 2006: GLOBELEQ retirement

AUG 2007: KELVIN POWER CONSORTIUM PURCHASE

BACKGROUND

• KELVIN POWER STATION – Two Separate power stations

• “A” STATION - x6 off 30MW Turbo Generatorsx11off 85 Ton/hr Boilers

• “B” STATION - x7 off 60MW Turbo Generatorsx7 off 250 Ton/hr Boilers

• FUEL – Coal from separate coal stockpiles

• COMMON – High voltage Yard & Control room

• ASH PLANT – Circulate ash waterto ash dams

• Cooling Water – Diepsloot 54 Kmpiped

CORE BUSINESSCORE BUSINESSCORE BUSINESSCORE BUSINESS

• Supplying electricity to City Power, which is City of Johannesburg’s electricity utility.

• DEMAND – Maximum Availability during Winter months.

• Lower dispatch and load during summer months.

82% Availability

12% Planned

6% Forced Outages

0% Tolerance

The 3 P’s :

People

Passion

Plant Performance

Introduction

Moving beyond Maintenance

– Asset Management

Although Maintenance Management has been practiced for many years at Kelvin Power Station it is clear that the traditional approach to maintenance is not only outdated, caused major degradation, but also outright dangerous in many cases. The complexity of not only the physical assets themselves, but also the environment surrounding the assets, demands a much more formal and structured approach.

Introduction (continued)

A new innovative, formal and structured process is being put in place as from 2009 and continually enhanced because “Continuous Improvement” is a cardinal slogan in the vocabulary of Asset Management. These processes, policies and procedures provide clear direction as how the Asset Management Department is managed, controlled, coordinated and directed. To ensure synergy between the various Departments, policies and procedures have been adopted from Kelvin Power documents (programs, budgets etc) whilst others have been produced solely for the use of the Asset Management Department

The “Complex Arena” of

Asset Maintenance

Management

Vision

• Kelvin Asset Management

Department will be the most

professional and admired

Department at Kelvin Power Station

Mission Statement

• Asset Management Department will ensure that all assets are maintained in accordance with the safety and environmental legislation in the most cost effective way and highest acceptable quality standards to ensure operational plant availability and meeting customer expectations

Mission

Asset Maintenance Asset Maintenance ManagementManagement

Safe and Safe and EnvironmentalEnvironmentalFriendly PlantsFriendly Plantsand Operationsand Operations

CostCostEffective Effective

MaintenanceMaintenance

OperationalOperationalCapability Capability ––

Plant Availability,Plant Availability,ReliabilityReliability

Product andProduct andService QualityService Quality

Customer andCustomer andClient ServiceClient Service

Key Objectives To Be Achieved

• A more structured and professional approach to the management of assets at Kelvin Power Station

• Laying the foundation and building on the process of Planned Preventative Maintenance.

• Instilling the concept of Quality of workmanship and technical excellence.

• Setting standards

• Measuring utilisation of Asset Management workforce

Key Objectives To Be Achieved

• Substantially improve the utilisation of the

available manpower

• Improve Team Leaders skills – Technical

Excellence

• Improve technical skills of artisans and

assistances

• Most of all ensuring a dynamic, motivated

and successful Asset Management

Department

Asset Management Strategy

Loop

1. Set Mission2. Set

Objectives3. Develop

Strategy4. PlanTactics

5. Execute Tactics

6. MeasureResults

7. FeedbackResults

Understand the Problem

Audit of Maintenance Maturity Level

48Formal CMMS in place10101010

27Breakdown overtime monitored and frowned upon 9999

25Appointment/training of specialists (Pumps, hydraulics etc)8888

47Maintenance Team Leaders Trained7777

37Supervision Rolls and Responsibilities6666

37Management indices are regularly reported & acted upon5555

38Continuous improvement is formal & participative4444

48Disciplined works order system. Recorded, & maintained3333

38Planned preventative maintenance is an essential part of

strategy2222

48Maintenance Business Process Established1111

Audit

‘09

Achieved

2010MATURITY LEVEL OBJECTIVE

Audit in 2009 compared to Audit 2010

8

8

88

7

8

5

77

83

3

4

3

44

2

2

1

4

0

1

2

3

4

5

6

7

8

9

10

B usiness pro cess

P lanned M tce

W/ Orders

Impro vement

Superv is io n

M aint . T eam T ra ined

A pp/ T ra in Spec

A cco untabilit y

Overt ime

C M M S

Asset Management Processes – Process

& Administration Manual

• The key tool for the Department’s manager

• The key tool for all of the employees in the Department

• The foundation and benchmark to be used for making substantial improvements in the Asset Management Department

• Ability to audit the processes

• Ability to quantify performance

• Ability to identify specific areas for improvement

Asset Management – Process &

Administration Manual

• All key processes identified

• All key sub processes identified

• All processes defined

• Ensures integration of processes within the department

• Provides key links to processes that are necessary in other departments

Process Manual - Contents

A - Policy & process document

B - Kelvin Success Triangle, Vision, 3 P’s

C - AOP Programme

D - Kelvin Annual Budget

E - Kelvin Authorities Matrix

F - Department Annual Strategic Objectives

G - Organisation Structure

H - Policy Document

I - Dept. Performance Targets

J - Manager – performance contract

K - Asset Management Dept. Code of Conduct

L - Job Descriptions

Process Manual - Contents

M - Key Roles & Responsibilities

N - Dept. Administration Process

O - Dept. Numbering Breakdown Structure

P - Dept. Audit Review

Q - Asset Management Dept. Control –Daily

Reports

R - Monthly Report to General Manager

S - Asset Management Department Process

T - Procedures

Planned Preventative

Maintenance

• If maintenance is considered to ensure that equipment within a power station or any other physical asset continues to perform its intended function then preventative maintenance is a series of planned preventative tasks performed to counteract known causes of potential failures of those functions.

The Basic Underlying Strategy

Planned Maintenance

Corrective Maintenance

Emergency Safety Corrective MaintenancePreventative Maintenance

Unplanned Maintenance

Asset ManagementStrategy

95% 5%

10% Manning

90% Manning

Reinforcing the Basics of Routine

Work Management

Work Identification

Process

Planning Process Scheduling

Process

Work Assignment

Process

Work Execution

PerformanceAnalysisProcess

Sustained Maintenance

ProcessContinuous Improvement

Loop

Work OrderPackages

Work Plans,Procedures &Quality docs

HistoricalData

Up-Grades and AdditionsTo Maintenance Plans Additional Tasks &

PlanningImprovements

Emergency

Required Work

Response

The Work Management FlowEngineering

�Safety Inspections, �Change Modifications�Insurance Risk Items

Work Identification

Work Planning

Work Scheduling

Work Assignment

Work Execution

Work Analysis

EMERGENCY

PM & ConditionMonitoring

programupdates

Work order Planningupgrades

Work Scheduling

Improved workProcedures

Work AssignmentImprovements,

Trainingrequirements

FEEDBACK FORCONTINUOUS IMPROVEMENT

Maintenance

� Preventative maintenance� Condition Monitoring� Corrective Maintenance� Maintenance Modifications

Net Capacity

Materials Requirements,Resource Coordination

Progress Information Problems Encountered

Completion

EquipmentAvailability for

Maintenance

Operations

� Equipment Condition� Operating Priorities� Corrective Maintenance

60%32%

8%

OPSRAISE OWN W/O WITH

CORRECTDETAIL

CRAFT,GL, ETCPUT W/O (“WAPPR”)

MAINT.APPLY FOR PERMIT.REPAIR

DEFECTS.TAG REMOVED BY MAINT.

(PROPER FEEDBACKAND DONE NEATLY.)

IF OUTAGE IS NEEDED,MAINT.

PUT IN REQUIRED STATUSHERE IT GOES FROM ’WAPPR’

TO APPROPRIATE STATUS

STATUS KEEPS W/O OPEN. PLANNER

FILTER UNDERSTATUS .TRANSFER

DATA OVER TO M.S PROJECTS

TO USE IN OUTAGE/ PROJECT

PLANNINGCOMPLETE/CLOSE

W/O(FINAL STAGE)

W/O AND PERMITGIVEN IN BY MAINT..

PLANNING TO CLOSEW/O

MAXIMOON COMPLETION OF

W/O & PERMIT CLEARED IN BY MAINT.

MAINTPlANNER USES MAXIMO

. HAS 2 DAILY MEETINGS WITH TEAM LEADER/CHARGE HAND

TO SCHEDULEAND ALLOCATE W/O PLANNER TO PRINT W/O

AND ISSUE TO MAINT. (APPLY FOR PERMIT.

REPAIRDEFECTS.

TAG REMOVED BY MAINT.)

OPS WILL ONLY GIVE PERMIT WHEN HE/SHE

GETS A W/O

ONLY “APPR” IF WORK CAN BE DONE IMMEDIATELYWITHOUTNEED FOR OUTAGE.

MICRO SCHEDULINGTO TAKE PLACE

DAILY WITH MAINT.BY PLANNING

(3 DAYS AHEAD.)

PERMIT SENTBACK TO OPS

C.M (Generated CMMS)

WGO-WAITING G.OWPROJ-PROJECT TYPE DEFECT

WSRO-WAITINGSTEAM RANGE OUTAGE

OPS TAGSDEFECTIVE ITEM

TO STOPDUPLICATION.TAG MUST

HAVE W/O ON IT.

Corrective Maintenance – flow diagram process

SCHEDULEDBY

PLANNINGTO MAINT.

COMPLETE /capture defects repaired info /

CLOSE /PM W/O

BY PLANNING

REPAIRDEFECTS.IF NEEDED

USE W/O FOR PERMIT.PAPER WORK TO

HAND BACK TO PLANNER

MAINTPLANNER USES

MAXIMO. HAS 2 DAILY

MEETINGS WITH TEAM LEADER/CHARGE HAND

TO SCHEDULEAND ALLOCATE W/O

PLANNING TO CLOSEW/O

MAXIMOON COMPLETION OF

W/O

PLANNER PRINTS ,ISSUESMANUALLY.

MAINT APPLY FOR PERMIT.REPAIR DEFECTS.

TAG REMOVED BY MAINT.

WGO-WAITING G.OWPROJ-PROJECT TYPE DEFECT

WSRO-WAITINGSTEAM RANGE OUTAGEINPRG-IN PROGRESS

THE PLANNERWILL GIVE THE

P.M W/O MANUALLY.THIS WILL BE DONEWEEKLY PLANNER/

TEAM LEADER/CHARGEHANDS

CAN SLOT TIMES AND APPOINT PERSONSTO DO THE WORK.

CANNOTREPAIRDEFECT

IMMEDIATELY,MAINT TAG

DEFECT(Maint. gives

feedback on w/o)

PLANNERCREATE FOLLOW-UP W/O

(ORIGINAL PM W/OIS THEN CLOSED)

P.M (Generated CMMS)

OPS WILL ONLY GIVE PERMIT WHEN HE /SHE

GETS A W/O

DO INSPECTION/PM

MORNINGMEETING

,DO MICRO SCHEDULING

PERMIT BACK TO OPS.

Preventative Maintenance flow diagram process

Breakdown flow diagram process

Breakdowns

OPS CREATE W/O ON MAXIMOREADY FOR STANDBY PERSON .

.

ON ARRIVAL OF STANDBY,OPS MAKES A PRINT.

PERMIT IS APPLIED FOR BY MAINT .

PERMIT CAN BEISSUED WITH W/O NUMBER

REPAIR DEFECTS

NEXT DAY,TEAM LEADER SIGNS OFF

DEFECT SHEET AND PERMITSENT TO PLANNER

PLANNER CAPTURESFOR DATA ONLY

PERMIT SENTBACK TO OPS

FOR SAFE KEEPING .

Work Order Request

Technical Support

InformationFacility Support

Man Supervision

Asset Management - Roles & Responsibility Structure

Role of Mechanical/Electrical Leader

� Emphasis must be on “Technical Excellence & Coaching”

• Supportive of the Maintenance Manager and rest of Team

• Technical Investigations. (Bloodhound, analytical skills)

• High level problem solving

• Coaching

• Manage Major Maintenance Projects

• Research and recommend new equipment

• Investigate and report on plant tripping events

• Identify areas were Occupational, Health and Safety standards are not complied too

• Develop work procedures and quality control documentation

• Pre-empt possible failures, non conformance

Role of Maintenance Supervisor – Who

best to do the job

� Emphasis on “Supervision & Coaching”

• Quality of workmanship

• Reliability

• Budget: preparation & control

• Compliance with RM schedule

• Compliance/Weekly master schedule

• Contractors on site

• Manpower planning

• Overtime

• Labour performance

• Labour utilization

• Utilization of skills

• On the job training (coaching)

• Training needs assessment

• Maintenance of tools, equipment

• Enforce safety standards

• Identification of stock items

• Definition of stock levels

• Materials issue & return control

• Spares forecast/prediction

Role of Maintenance Planner – What

and when to do the job�Emphasis must be on “Information”

• Development/update of maintenance plan

• Preparation of weekly master schedule

• Maintenance logistics planning

• Upkeep of equipment register

• Finance. Control of costs

• Backlog control

• Warranty control

• Quality & integrity of data. Record keeping Maximo

• Preparation & distribution of management reports

• Regular analysis of data

• Documented maintenance best practice (procedures & standards)

• Documentation control

Asset Management - Dashboard

Safety Environment Team:

CM's PM's

Outstanding CM'sTBMBTMEDMIDMMills

Asset Management Bashboard

Incident Action Closure

Maintenance Costs

Hydrogen Seal

Safety, Environmental & Incidents Reliability, PM-Schedules, CM's, PM's & Absentiseem Root Cause Analysis

Reliability

Safety and Man-hours

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Jan March May July Sept Nov

LTA

's

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Man

-hou

rs

Environmental incidents

0

1

2

3

4

5

6

7

8

9

10

Jan Feb March April May June July August Sept Oct Nov Dec

157

95

62 60.5

95

45 50 47.37

020406080

100120140160180

MONTH TOTALACTION ITEMS

ACTIONCLOSURES

ACTIONS INPROGRESS

SEPT '09 OCT '09 NOV '09 DEC '09

5000

7000

6000

8000

0

5000

10000

15000

20000

25000

30000

Rands

Rand contribution

Maintenance Cost

Variable cost

Fixed cost

Overheads

Materials

Reliability

0

10

20

30

40

50

60

70

80

90

100

Jan Feb M arch April M ay June July August Sept Oct Nov Dec

Corrective Maintenance

0

2

4

6

8

10

12

Jan

FebM

arch

April

May

June Ju

lyAug

ust

Sept

Oct

Nov Dec

activ

ities

Preventative Maintenance

0

1

2

3

4

5

6

7

8

9

10

Absentiseem

0

1

2

3

4

5

6

7

8

9

10

Jan

FebM

arch

April

May

June July

Augus

tSep

t

Oct

Nov Dec

no. o

f peo

ple