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1.0 INTRODUCTION
Kenya Ports Authority (KPA) is statutory body under the Ministry of Transport.It was established by an Act of Parliament on 20th January, 1978 with amandate to maintain, operate, improve and regulate all scheduled Seaportsalong Kenyas coastline. In 1986, the Authoritys mandate was expanded toproviding port services after it merged with the former autonomous Kenya
Cargo Handling Services Company.
According to the Kenya Ports Authority 2009/10 2011/12 Business PlanProjections, the volume of cargo handled at the Port of Mombasa is expectedto rise to 19.7 million tons by the year 2012.
It is therefore evident that the port will be under considerable pressure, giventhat some areas of port operations such as Container Terminal are fullysaturated.
To accommodate the increased volume of traffic, substantial investmentshave been made over the last three years, towards modernization andupgrading of the existing facilities to cater for the growing shippingrequirements and to enhance port capacity. To improve efficiency inoperations, the Authority will continue implementing the EquipmentReplacement Programme with the aim of reducing costs of maintenance andimproving equipment reliability
Kenya Ports Authority comprises of the following Divisions:
a) Corporate Services
b) Finance
c) Human Resource and Administration
d) Operations
e) Habour Master
f) Corporation Secretary and Legal Services and
g) Technical Services
The Kenya Ports Authority Technical Services Division is responsible for allaspects of engineering comprising civil, mechanical, electrical and marineservices
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The strategic action plans and activities for the Division are presented in theTable1 below
NO OBJECTIVE ACTIVITIES INDICATORS BUDGET2001/10Kshs M
PROJECTIONTOTALKshs M
2010/11Kshs M
2011/12Kshs M
1. Improve powersupply efficiency
Upgrading ofPort supply andimprovementof lightingwithin the Port
and ICDs
No poweroutage
160.0 120.0 80.0 360.0
2. Reduce costs ofmaintenance andimproveequipmentreliability
Adherence tomaintenancepolicy andequipmentreplacementprogramme
Increasedequipmentavailability andreliability.
310.0 250.0 155.0 815.0
3. Improve andsustain highquality portinfrastructure
Refurbishmentof berths,yards, roads,buildings andpermanentway.
Increased yardcapacity andimproved trafficflow
364.0 300.0 200.0 864.0
Conversion ofberths 11 14into containerberths
Increasedcontainerhandlingcapacity
200.0 350.0 100.0 650.0
Developmentof a CFS atMariakani.
CFS developedand increasedcontainerthroughput
0 50.0 150.0 200.0
Developmentof secondKipevu Bridge,lorry parking,
Kipevu roadand MCTAccess road
Improved trafficflow
100.0 250.0 100.0 450.0
Dredging of thehabour channel
Greater accessfor vesselscalling at thePort
180.0 200.0 700.0 1,180.0
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2.0 Focal Problem to be pursued by the Project
Kenya Ports Authority has for the last few years been experiencing pressureon its Cargo handling Equipment due to the increase of the Maritime trade andthe opening up of the Southern Sudan to Investors. Marked by the aginginfrastructure and the overstretched cargo handling equipment mentionedabove, Kenya Ports Authority is under constant international shipping lines andclearing and forwarding firms pressures to meet the optimum equipmentavailability and reliability to the required safety standards of interstate portusers and appropriately balance those demands against the interests of theEast and Central Africa economic growth. Future increase in Mombasa Portusers (increase in containerized cargo) and economic growth, in the regionand beyond, will increase the demand for reliable cargo handling equipmentand further aggravate this problem.
2.1 Equipment Maintenance ChallengesThe Kenya Ports Authority main challenges and strategic issues which requiresurgent attention and which needs to be looked at afresh are:
Increased equipment maintenance costs
Reduced equipment life
Reduced equipment reliability / efficiency
Quality of maritime services offered
Reduced Productivity
Diminishing profits
Preventive and predictive maintenance compliance
2.2 Performance Based Maintenance Costs ControlMaintenance costs are directly related to people and equipmentperformance, and the keys to controlling performance are to:
Establish and implement a plan through a management system
Identify and measure appropriate process and labour relatedquantities and variables
When the measured quantity or variable indicates a deviationfrom plan, identify the fundamental problem causing thedeviation
Establish the corrective action required
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Apply the corrective action
Continue to measure the variables and quantities to determinewhether the corrective action is working
Feed results into future plans
This is a tall order; the identification of the fundamental problem in manycases is an entire management process in itself.It is important to relate the specific concept of cost control to the generalconcept of performance control. A trap many managers fall into is trying tocontrol costs directly. Although costs can be measured and compared to aplan (budget) they cannot be directly controlled since costs result fromphysical quantities. In reality costs can only be effectively controlled bymanaging their related quantities and solving problems related to them.Performance Based Cost Control is a management approach whichprovides answers to the questions which naturally follow from the general listabove:
How to appropriately identify the physical quantities and
variables that must be measured? At what frequency should they be measured?
What resource inputs are required to exercise control, and fromwhere must they come?
At what organizational level should each problem be analyzedand corrective action executed?
How to establish what the "real problem is?
What management methodology is required?
The variables to be controlled are those that directly affect the physicalquantities comprising costs; they must be defined in small enough "packages"
to allow an appropriate corrective action to be identified and applied. If thevariable is too broad in scope, such as poor availability, the fundamentalproblem requiring corrective action is difficult to identify. However, if thevariable is preventive maintenance compliance yesterday, the information isspecific enough to assess the problem and to take appropriate correctiveaction if a deviation has occurred.
Therefore statistical data, to be effective, must be organized in ahierarchy that corresponds to the organization. Summary indices, suchas mechanical availability of the truck fleet, are designed to alert highermanagement to problems on an exception basis. The summaryinformation must be built from more specific information, e.g.
availability of each unit; downtime hours each shift; reason for thedowntime, etc
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CONTROLCHARACTERISTICS
FEEDBACKINFORMATIONFREQUENCY
APPROPRIATEMANAGEMENTRESPONSE
Category A cost pointsrepresent costs that are afunction of variables that canbe directly controlled byfrontline supervision if anappropriate managementsystem is used. E.g. thevariable related to the physicalquantity unproductivemaintenance man-hours , partsrequisition, lost productivity
Small managementresource input fordesired control.
Relatively easytactical decisionsare measurementrequired tomaintain control.
High frequencymeasurements
First linemanagementcontrol through asystem
Category B cost pointsrepresent opportunities nottaken. These are costs thatmany times are"institutionalized" in theprocess, and are assumed tobe a cost of doing businessthat cannot be changed. E.g.untrained maintenance staff
Moderate resourceinput required.
Some formal studyrequired.
Significant tacticaldecisions requiredby "middlemanagement"
Medium frequencymeasurements
Project approach bythe Authoritysmiddlemanagement
Category C of costs requires
major strategic decisions bysenior management. They arecost points which, if attackedincorrectly or ignored, mayeventually result in the failureof the business.
High resourceinputs required.
Significantengineering studyrequired.
Strategic decisionsnecessary byseniormanagement.
Low frequencymeasurements
Strategic planguided by seniorKPA management
Category D cost points arecosts that absorb energy andcreate wasted time becausethey are fixed over relativelylong time frames. An exampleof a Category D cost point is along term maintenance leaseor contract that cannot bebroken in the short term.
Essentially fixed costswhich are uncontrollablewithin a realistic timeframe.
Low frequency Top KPAmanagement
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3 Stratification of Cost Points
As hinted earlier, the maintenance costs transcend traditional organizational
entities. For this reason, a non-traditional approach is required to control themaintenance variables which directly affect physical quantities related tomaintenance cost points.This calls for a highly coordinated Maintenance Team which must then definethe cost point quantities, their related variables and set performanceobjectivesThis coordination between maintenance and operations must occur at arelatively low organizational level and must be an inherent part of themaintenance management system that is being implemented. Theconfrontational or adversary approach that sometimes exist between thesesister departments will always result in a higher than necessary maintenance
costs.The figure below describes the general sequence for implementing amaintenance cost control program
ANALYZE UNIT
OPERATION
CONDUCT COST
ANALYSIS
CONDUCT
ORGANIZATION
ANALYSIS
DEFINE
PERFORMANCE
MEASURES
DEFINE COSTS
POINTS
STRATIFY COST
POINTS
DEFINE
CONTROLLED
VARIABLES
SET
OBJECTIVESIMPLEMENT
ESTABLISH
SYSTEMS AND
PROCEDURES
ESTABLISH
PROBLEM
SOLVING MODEL
GENERAL SEQUENCE OF IMPLEMENTING A MAINTENANCE COSTS CONTROL PROGRAM
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3.0 Problem, Objective and Strategy Analysis
3.1 Problem Analysis
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HIGH COSTS OF
EQUIPMENT
MAINTENANCE
INCOMPETENCEUNRELIABLE CARGO
HANDLING EQUIPMENTS
LOW STAFF MORALE
UNTRAINED
MAINTENANCE
STAFF
UNPLANNED
MAINTENANCE REGIME
POOR ATTITUDE
TOWARDS WORK
POOR EQUIPMENT
HISTORY
LACK OF
MAINTENANCE
TOOLS
BAD WORKING CULTUREUNCONDUCIVE WORKING
ENVIRONMENT
FEWER POTENTIAL
CLIENTS / CUSTOMERS
HIGH COST OF
CONDUCTING BUSINESS
REDUCTION IN BUSINESS
VOLUME
REDUCTION IN CLIENTS /
CUSTOMERS
LOW REVENUE
COLLECTION
DIMINISHING PROFITS
PROBLEM ANALYSIS
TRAINING BUDGET
REDUCTIONPOOR
INFRASTRUCTURE
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3.2 Objective Analysis
REDUCED COSTS OF
EQUIPMENT
MAINTENANCE
COMPETENCERELIABLE CARGO
HANDLING EQUIPMENTS
HIGH STAFF
MORALE
TRAINED
MAINTENANCE
STAFF
PLANNED MAINTENANCE
REGIME
RIGHT ATTITUDE
TOWARDS WORK
ENHANCED
EQUIPMENT
RECORDKEEPING
MAINTENANCE
TOOLS
AVAILABILITY
CHANGE OF WORKING
CULTURE
CONDUCIVE WORKING
ENVIRONMENT
MORE POTENTIAL
CLIENTS / CUSTOMERS
REDUCED COST OF
CONDUCTING BUSINESS
INCREASE IN BUSINESS
VOLUME
INCREASE IN CLIENTS /
CUSTOMERS
HIGH REVENUE
COLLECTION
ENHANCED PROFITS
OBJECTIVE ANALYSIS
TRAINING BUDGET
ALLOCATION
IMPROVED
INFRASTRUCTURE
EFFECTS
CAUSES
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3.3 Strategy Analysis
Benefits to target groups
Equipment maintenance is a process used to maximize the productivity ofequipment for its entire life span. Some of the benefits which all the
stakeholders stand to benefit in directly or indirectly are: Reduction in unplanned equipment downtime
Increased production capacity
Reduced maintenance expenditures
Longer equipment useful life
Involvement of equipment operators in maximizing equipmentperformance
Improved equipment efficiency.
Equipment Maintenance and Sustainability
In the last few years, Sustainability has become a key issue in the maritimeindustry. It has grown as more and more people have understood that it is alsoa very profitable way to run a business. It has been asked several times howthe maintenance function can contribute to sustainability.
The biggest contribution is that when we maximize equipment uptime andeffectiveness, we reduce waste for the entire product supply chain. When wesuffer from equipment stoppages, we almost always generate waste of somesort. It might be raw materials used to manufacture the product, or packagingmaterials, and/or energy.
The farther into the container / loose cargo handling process where the wasteoccurs, the more it costs. If we have minor stoppages in the packagingequipment, we lose not only packaging materials, but finished product and allthe materials, labor, and energy that have gone into them.
In the area of energy conservation, effective equipment maintenance cancontribute by making sure that the replacement component parts that we useare energy efficient. Motors are a good example. The energy efficiency ofmotors can vary greatly, and we should be sure that we spend a little more tosave the energy that we can.
An effective maintenance organization enhances the sustainability of theoverall manufacturing effort by making sure that our equipment is bothreliable and efficient. This finally leads to sustained productivity andprofitability
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4.0 Work Breakdown Structure
A work breakdown structure (WBS) in project management and systemsengineering, is a tool used to define and group a project's discrete workelements in a way that helps organize and define the total work scope of theproject. A work breakdown structure element may be a product, data, aservice, or any combination.
A WBS also provides the necessary framework for detailed cost estimating andcontrol along with providing guidance for schedule development and control.Additionally the WBS is a dynamic tool and can be revised and updated asneeded by the project manager.
5.0 Project Network Diagram: Activity on Node
Activity-on-node is a project management term that refers to a precedencediagramming method which uses boxes to denote schedule activities. These
various boxes or nodes are connected from beginning to end with arrows todepict a logical progression of the dependencies between the scheduleactivities. Each node is coded with a letter or number that correlates to anactivity on the project schedule.Typically, an activity-on-node diagram will be designed to show whichactivities must be completed in order for other activities to commence. This isreferred to as finish-to-start precedence meaning one activity must befinished before the next one can start. In the diagram below, activities A and Dmust be done so that activity E can begin. It is also possible to create othervariations of this type of diagram. For example, a start-to-start diagram isone in which a predecessor activity must simply be started rather than fully
completed in order for the successor activity to be initiated.
An activity-on-node diagram can be used to provide a visualrepresentation of the network logic of an entire project schedule. Or, it
can be used for any smaller section of the schedule that lends itself tobeing represented as having a defined beginning and end. To keep thelogic in the diagram simple, it may be most effective to include onlycritical path schedule activities. The planned start date of each nodemay also be listed in the diagram legend in accordance with the projectmanagement timeline
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http://en.wikipedia.org/wiki/Project_managementhttp://en.wikipedia.org/wiki/Systems_engineeringhttp://en.wikipedia.org/wiki/Systems_engineeringhttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Project_managerhttp://project-management-knowledge.com/definitions/a/definitions/p/precedence-diagramming-method/http://project-management-knowledge.com/definitions/a/definitions/p/precedence-diagramming-method/http://project-management-knowledge.com/definitions/a/definitions/p/predecessor-activity/http://project-management-knowledge.com/definitions/a/definitions/s/successor-activity/http://project-management-knowledge.com/definitions/a/definitions/n/network-logic/http://project-management-knowledge.com/definitions/a/definitions/c/critical-path/http://project-management-knowledge.com/wp-content/uploads/2008/01/AON-Diagram.jpghttp://en.wikipedia.org/wiki/Systems_engineeringhttp://en.wikipedia.org/wiki/Systems_engineeringhttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Project_managerhttp://project-management-knowledge.com/definitions/a/definitions/p/precedence-diagramming-method/http://project-management-knowledge.com/definitions/a/definitions/p/precedence-diagramming-method/http://project-management-knowledge.com/definitions/a/definitions/p/predecessor-activity/http://project-management-knowledge.com/definitions/a/definitions/s/successor-activity/http://project-management-knowledge.com/definitions/a/definitions/n/network-logic/http://project-management-knowledge.com/definitions/a/definitions/c/critical-path/http://en.wikipedia.org/wiki/Project_management7/31/2019 Reduction of High Maintenance Costs by Noah Olela Abong'o
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REDUCTION OF
MAINTENANCE
COSTS 5/31/11
0 DAYS
FORMULATION
OF
MAINTENANCE
POLICY
2 WEEKS
APPROVAL OF
THE
MAINTENANCE
POLICY DRAFT
1 WEEK
PRESENTATION OF
MAINTENANCE
PLAN BUDGETARY
PROPOSALS
3 WEEKS
ALLOCATION AND
AVAILABILITY OF
MAINTENANCE
FUNDS
4 WEEKS
TRAINING OF
THE
MAINTENANCE
TEAM
4 WEEKS
ADVERTISEMEN
T OF EQUIPMENT
REPLACEMENT
TENDERS
1 WEEK
INSPECTION
AND
ACCEPTANCE
1 WEEK
TRAINING OF
THE
OPERATIONS
TEAM
4 WEEKS
OPENNING AND
EVALUATIONS OF
TENDER
2 WEEKS
MAKING
EQUIPMENT
PAYMENTS
5 WEEKS
PRESENTATION
OF PROPOSALS
1 WEEK
AWARDING OF
NEW
EQUIPMENT
TENDER BIDS
4 WEEKS
DECOMMSSIONIN
G OF DEFECTIVE /
OBSOLETE
EQUIPMENT
3 WEEKS
COMMSSIONING
OF NEW
EQUIPMENT
1 WEEK
IMPLEMENTING
THE APPROVED
MAINTENANCE
PLAN
8 WEEKS
ACTIVITY ON NODE NETWORK DIAGRAM OF THE PROJECT INDICATING THE DURATIONS OF ACTIVITIES AND THE CRITICAL PATH
THE CRITICAL PATH OF THE PROJECT
REDUCTION OF THE OVERALL KPA EQUIPMENT MAINTENANCE COSTS TO ECONOMICALLY VIABLE LEVELS
6.0 Stakeholder Analysis, Stakeholder Identification & StakeholderInterests
StakeholderGroup
What are theymost Interested
What is their bigconcern?
What do we needto do to get their
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in? support?
KenyaGovernment
Revenue remittanceIncrease Revenuecollection base
Subsidize therequired additionalexpenditure
Kenya Ports
AuthorityManagement
Returns on
investment (Profits)
Maximize revenue
and minimizeexpenditure
Show both
feasibility andviability of theproject
Kenya PortsAuthorityemployees
Good remuneration Job Security Capacity Building
Suppliers andContractors
Getting businessopportunities
Exploiting businessopportunities for
enhanced profits
Sensitization
Shipping linesand Clearing &forwardingAgencies
Doing businesscheaply
Maximize profits inservices offered
Sensitization
Kenya RevenueAuthority
Collection of taxes Increasing taxcollection bracket(base)
Mutualcooperation /memorandum of
understanding
7.0 Project Log Frame Matrix
THE PROJECT LOGICAL FRAMEWORK
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Objectives Indicators Means of Verification Assumptions
GOAL
Enhancement of Kenya PortsAuthority overall profitability bymaximizing revenue generationand minimizing cargo handlingequipment maintenance
expenditure through:
Reduction ofmaintenance labourand material costs
Reduction of production/ service loss( whichincludes lack of abilityto offer the stipulatedservices resulting froman inadequatemaintenance program
Equipmentreliability
Equipmentavailability
Containersthroughput
Profitability
Equipmentefficiency
EquipmentDowntimerecords
Equipmentmaintenanceexpenditure
Spares andmaterialsinventory
Customersatisfaction &complaintssurvey
Establishment of acost basedmaintenanceregime and itscompliance
Allocation offinancial resourcesfor training ofmaintenancepersonnel
Adherence toequipmentreplacement policy
Implementingchangemanagement
OUTPUTS
Implementation of theEquipment replacementpolicy
Trained 100maintenance staff oneffective equipmentmaintenance regime
Adopted minimizationof equipmentmaintenance costs
policy
Implementing cost basedequipmentmaintenance
Training of the400 techniciansand 200 operatorsin the nextfinancial year
Rehabilitation ofthe two defectiveFront-
loaders to improveequipmentavailability
Site equipmentinspection
Staffdevelopmentand progressionrecords
Revenue andTariffs quarterlyreports
proc
Stability of theKenya Shillingagainst the foreigncurrency
Necessaryapprovals from allthe relevantstakeholders
Availability of thebudgetedimplementationfunds
ACTIVITIES
Maintenance activities / workincludes the following:
Work identification
Work planning
Work scheduling
Work execution
Equipment historyrecording
Work analysis
Implementation ofthe Equipmentreplacementpolicy
Training of 100
maintenance staffon effectiveequipmentmaintenanceregime
Adoption ofminimization ofequipmentmaintenance costs
TechnicalservicesMaintenancereports
Procurement andsupplies records
Finance
departmentreports
Securing all necessaryadministrative and financialapprovals together withfinancial commitments forthe entire project
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policy
TOTAL:Kshs155.0M
8.0 Project Implementation Schedule & Framework for
Monitoring and Evaluation
8.1 Equipment Maintenance Implementation Schedule
Scope of Maintenance Regimes
Planned preventive maintenance is regular, repetitive work done tokeep equipment in good working order and to optimize its efficiency andaccuracy. This activity involves regular, routine cleaning, lubricating, testing,calibrating and adjusting, checking for wear and tear and eventually replacingcomponents to avoid breakdown.
Productive preventive maintenance refers to the proper selection ofequipment to be included in planned preventive maintenance. Decisions mustbe made on what to include, to reduce costs; inexpensive units that are notnecessarily included in the planned preventive maintenance programme canbe replaced or repaired when they break down. The overriding consideration iscost-effectiveness.
An important aspect of planned preventive maintenance is the participationand commitment of the user / operator. Preventive maintenance should startwith users, and the bulk of the work should be their responsibility. The task
must be performed daily, with joint activities involving the user and atechnician engineer at the end of the week. Highly technical repairs, which arethe engineer's responsibility, may be scheduled every six months.
Setting up a planned preventive maintenance systemIn order to establish an effective, efficient planned preventive maintenancesystem, a registry filing system is needed. The manufacturer's manual forpreventive maintenance of the equipment can be supplemented by computerpackages in setting up such a system; if a computer is not available, a manualfile can be set up. The planned preventive maintenance administrative systemrequires the following:
Equipment inventoryAll equipment in the hospital that is in the care of the service workshop shouldbe recorded. All relevant information about the equipment must be entered,including its location, records of repair and maintenance and themanufacturer.
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A reference number is given and written on a printed paper label, which isattached to each item. This number is recorded in a ledger of equipment withfull identifying details.Definition of maintenance taskThe work that must be done to maintain each item of equipment in safe andreliable operating condition must be defined; this is known as themaintenance task. These tasks can be established by consulting the
manufacturer's literature and product information.
Establishing intervals of maintenanceAfter determining what is to be done, the frequency of the task /maintenance scheduling must be decided based on the technicalrequirements involved. A heavily used item must be cleaned and checkedmore frequently than one which is used less often; however, minimumstandards must be set. The frequency suggested in the manufacturer'smanual can be used as a guide, but the actual usage should determine themaintenance procedure required.
8.2 Framework for Monitoring and Evaluation
Monitoring and Evaluating Maintenance Effectiveness
Preventive maintenance (PM) is at the heart of maintaining equipmentreliability. But one of the dilemmas is how to verify that the right preventivemaintenance is being performed at the appropriate times. The solution is tomonitor the corrective maintenance (CM) performed during the reportingperiod.
Preventive maintenance is one part of the overall equipment reliabilityprocess, which also includes the corrective maintenance and corrective action(CA) programs.
Preventive Maintenance (PM) includes:
Periodic maintenanceplanned activities on a routine basis.
Planned maintenanceplanned activities initiated by the results ofpredictive or periodic activities.
Predictive maintenanceperiodic monitoring and diagnosis of
equipment to forecast and prevent failure.
In the past, determining the effectiveness of the PM portion of the equipmentreliability process has been reactive at best. The indicators used were capacityloss and unplanned shutdowns due to equipment failures. We havedetermined a more proactive method that allows us to check and adjust ourPM strategy before any problems become severe enough to warrant capacityloss.
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Establish goals
Corrective maintenance on components contained in the PM program is usedas an indicator of equipment physical condition. Although the total numberprovides a means to trend, a review of the individual component workpackages provides more meaningful information on the reliability of theequipment in question.
Evaluate data
Each corrective maintenance work package is evaluated against the currentpreventive maintenance strategy. Frequency and content may be altered thento prevent recurrence of the required Corrective Maintenance. In some cases,predictive maintenance is initiated to better monitor equipment functionality.
Trends by component type can be established to determine if there is specificweakness in an overall strategy (see Fig. 1). For example, multiple CM workpackages over a six-month period on check valves could indicate an overall
weakness in the frequency in which a PM is performed or a change in thesystems affected. Multiple high vibration conditions on pumps could indicate apoor alignment process. A detailed review allows the unit to identify specificareas to target for improvement.
Risk analysis
The total number of components affecting the overall plant risk assessment isalso tracked on a monthly basis. This provides a specific indicator of PMs doneon critical plant equipment.
An adverse trend would show the need to increase the priority of the PMreview process.
Cost benefit
By tracking man-hours required for these corrective activities, a monthly costcan be quantified and annual cost estimated. This provides the data forcost/benefit analysis to improve PM strategy through the purchase of newvibration data collection equipment, acoustic detection equipment, or in a
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recent case, installation of infrared inspection windows on motor terminalboxes.
This last example allowed post-work testing after motor termination andprovided the means for predictive monitoring. Cost of installation on thetargeted population was far less than the cost of one motor failure.
Most companies / organizations already track the corrective maintenanceperformed at some regular interval. Comparing that data to the componentsmaintained by preventive maintenance is easily done by hand or with a simplespreadsheet program. Knowing the physical condition of a preventivemaintenance program provides the feedback loop vital to continuousimprovement of the overall equipment reliability process.
9.0 Project Concept Paper
9.1 Introduction
With increasing automation and the reliance on large complex containercranes complete with substantial mechanized backup equipment,maintenance in modern port operations has assumed a very large impact onport economics. Unfortunately, the effectiveness of the maintenanceperformed at many ports has lagged behind that of operations. This has beendue in large part because of the emphasis placed on cargo handling and therelated technical advancements in cargo handling equipment. Cargooperations, by its very nature is amenable to monitoring and control asoperating statistics, e.g. containers handled per berth hour, etc. are easilycomputed and can be compared to budgeted figures. Control parametersuseful for managing the maintenance function, however, are more difficult to
quantify which may explain its lack of development as compared to cargooperations. The following tend to characterize most port maintenanceprograms:
Most of the maintenance work is unscheduled and is related to equipmentbreakdowns affecting cargo operations.
Senior management personnel tend to view maintenance personnelprimarily in a standby mode, to be called upon in the event of criticalbreakdowns.
Maintenance organizational accountability tends to be centered aroundshift coverage, rather than on area or equipment groups.
Direct and indirect (loss of loading/unloading time) maintenance costs arehigher than they should, or could be.
The objective of port maintenance should be to ensure the operability ofequipment as to maximize discounted cash flow for the port over its lifetime.Meeting this objective requires a substantial amount of planning and resourcecontrol on the part of maintenance management personnel. In our experience
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over the past decade in maintenance management consulting around theworld in various industries, the objective can best be met through theimplementation of an integrated management system, along with relatedtraining, containing the following elements:
An organization structure emphasizing accountability and the means tomeasure performance.
Planning and scheduling for the short term (each shift) as well asforecasting for the intermediate and longer terms.
Short term performance monitoring based on scheduled milestone eventsduring the course of daily work.
Accurate documentation of work performed, and its entry into equipmenthistory files.
Effective preventive maintenance program.
Reporting of performance indicators appropriate to the organizational levelbeing monitored.
The remainder of this paper deals with suggested approaches toimplementing these elements in a port operation.
Project Goal
Project Goal Statement
The Kenya Ports Authority should balance the needs of all Port users and the
International Shipping Lines and Clearing & Forwarding Agents by providingsafe, affordable and reliable cargo handling equipment at all times. Thereliable equipments and their maximum availability will offer mobility choicesand complement the faith and trust which the Shipping lines and CargoClearing Agents have in the Port of Mombasa as a Port of choice. In so doing,Kenya Ports Authority will support their economic initiatives, preserve and/orenhance their business ventures, facilitate speedy cargo movements andimprove the lives of its citizenry quality of life, now and into the future.
Scope of the Project
This project will cover all the maintenance activities in Mombasa, Nairobi ICD,Kisumu ICD and the Lamu Station.
Expected Project Output
The requirement for maintenance process has change drastically from the oldconcept of fix-it-when-it-broke to a more complex approach, which entailed
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adopted maintenance strategy of a more integrated approach and alignment.Nowadays, management has become aware that maintenance will also be partof the investment decision-making, thus prompting managers to take intoaccount the sources of funding and the impact investment has on credit linesand taxes and not only to focus on upfront cost and depreciation rates.
The goal of maintenance program is also changing and with the rapid
technological development, improvement of equipment and technology will beone of the key aspects of improved maintenance practiced for betterproductivity, effectiveness and profitability.
Project Inputs and the Work Plan
Project InputsThese include all the resources needed to successfully complete the project,namely:
Human resource
Financial resource
Time resource
Materials and spares
Tools necessary for the projects
Vehicles and other physical amenities.
Developing an Annual Work Plan
An annual work plan and budget should flow from the strategic long-termgoals and objectives developed earlier.
The work plan should list all expected maintenance projects for the year:preventive maintenance, general maintenance, major and minor repairs,custodial operations, refurbishments and equipment modifications. It shouldalso include projects needed to reduce backlogs of deferred maintenance.
Work Plan linked to the 2011 / 2012 KPA Kshs. 150.00Million Annual
Budget
The annual work plan should link directly to the yearly maintenance budgets.Projects in the work plan transform from ideas into reality only when they areincluded in operating or capital budgets. In the budget, maintenancemanagers should balance maintenance needs against available funding.
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20/20
The annual budget shows for the coming year what money is needed for eachproject in the annual work plan, including projects intended to reducemaintenance backlogs.
Budget development requires preparing cost estimates for annual operations,such as personnel and supplies costs, as well as for capital costs, such asmaking major repairs.
Each years capital budget should flow from the longer-range capitalimprovement program described earlier.
The amount of spending needed for equipment maintenance depends on thecosts of equipments identified needs, the extent of deferred maintenance,and the planned period over which the Kenya Ports Authority hopes to reduceequipment existing deficiencies. Higher spending in any given year will bringconditions to their desired level faster; lower spending lengthens theequipment downtime.
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