RCM - Maintenance Philosophy of the Future? by Peter Ormond, Strategic Corp., Australia

Reliability Centred Maintenance Original paper by Nowlan and Heap, 1978 Major re-work in RCM II by John Moubray SAE Standard JA1011 in 1999

Maintenance Philosophies Predictive or Condition Based Maintenance Preventive or Change-out Maintenance Reliability Centred Maintenance Breakdown Maintenance Industrial Revolution Second World War Mid ’60’s Mid ’80’s

BHP’s Experience Steel Industry World Wide Review Man-hours per Liquid Tonne of Steel Four Best Practice Organisations Biggest difference – Maintenance treated as a PROFIT CENTRE BHP was managing Maintenance as COST CENTRE

BHP Action Plan Understand Problem Set Overall Target Target 40% Reduce in Maint. Cost Per Tonne in 5 years Develop Approach for Solution 7 Step Plan

BHP’s 7 Step Plan Re-Education Re-Define Roles & Responsibilities Re-Develop Measurements Provide Processes and Systems Apply Strategy Based Maintenance Formalise Continuous Improvement Focus on Waste Reduction

Education Develop a new technique for applying training - SBL Develop a high level training package Introduction to Maintenance and its Management Apply training package to ALL employees

BHP’s 7 Step Plan Re-Education Re-Define Roles & Responsibilities Re-Develop Measurements Provide Processes and Systems Apply Strategy Based Maintenance Formalise Continuous Improvement Focus on Waste Reduction

Roles & Responsibilities New understandings required new definitions Some changes to organisational structure Once-off exercise

BHP’s 7 Step Plan Re-Education Re-Define Roles & Responsibilities Re-Develop Measurements Provide Processes and Systems Apply Strategy Based Maintenance Formalise Continuous Improvement Focus on Waste Reduction

Measurements The only way to make permanent change is to change the way things are measured Split measurements between KPI’s and the PI’s that feed them KPI’s are ALL Historical, Summary and UNCONTROLLABLE Measuring is not enough, interpreting the measures is the important step

BHP’s 7 Step Plan Re-Education Re-Define Roles & Responsibilities Re-Develop Measurements Provide Processes and Systems Apply Strategy Based Maintenance Formalise Continuous Improvement Focus on Waste Reduction

Processes and Systems Follow-on from all the previous steps Includes fully developed processes, procedures, documentation, etc. Also includes adequate computer systems, both hard and software, as well as appropriate training

BHP’s 7 Step Plan Re-Education Re-Define Roles & Responsibilities Re-Develop Measurements Provide Processes and Systems Apply Strategy Based Maintenance Formalise Continuous Improvement Focus on Waste Reduction

Strategy Based Maintenance Understand Profit Centre Maintenance Travel World looking for solutions RCM recognised as fitting exactly with required philosophy Love results – Hate effort required Develop Methodology to enhance RCM (RCM Turbo)

BHP’s 7 Step Plan Re-Education Re-Define Roles & Responsibilities Re-Develop Measurements Provide Processes and Systems Apply Strategy Based Maintenance Formalise Continuous Improvement Focus on Waste Reduction

Continuous Maintenance Improvement Appoint responsibility Formalise process Recognise shortcomings of P-D-C-A Change Act to AUTHORISE

BHP’s 7 Step Plan Re-Education Re-Define Roles & Responsibilities Re-Develop Measurements Provide Processes and Systems Apply Strategy Based Maintenance Formalise Continuous Improvement Focus on Waste Reduction

Waste Reduction Very similar to Continuous Maintenance Improvement Look outside ‘normal’ Maintenance sphere Same structure but less frequent

BHP Steel’s Results Achieved 50% reduction in 6 years Pointed to two factors having greater impact than anticipated: Re-Education of all employees into common understanding of Maintenance Implementation of RCM (RCM Turbo)

World Wide View Late ’80’s Paper based analyses Several successful exercises No PC Tools Almost no-one had heard of RCM

World Wide View Mid’90’s Many heard of RCM but few knowledgeable Several Tools ‘Other’ systems claiming to be RCM SAE Standard JA1011

World Wide View Current 2000+ Few organisation not heard of RCM Most organisations have some-one with detailed knowledge Many organisations have Reliability Group Many others trying to start projects RCM Incorporated into University Courses

How does it all fit together? Business Plan Plant Strategy Operating requirements Inventory plant items Life Plans for critical plant items (RCM analysis) CMMS Task lists Maintenance plans Work orders Document Retrieval System Work instructions

RCM-Turbo The Versatile Tool Review KPI Scheduling Improvement Steps Resource Bal Grp Tasks The is not intended to be an exhaustive list of activities required to take an organization from being Reactive to Pro-active. However it illistrates the point that there are a number of steps involved. Opt Freq Task Analysis Fail Analysis Equip Codes Reactive Maintenance Systems Maturity Proactive 46

RCM-Turbo The Versatile Tool Review KPI Scheduling Improvement Steps Resource Bal Grp Tasks At some point, the Computerized Maintenance Management System can start running the maintenance schedule. Opt Freq CMMS Task Analysis Fail Analysis Equip Codes Reactive Maintenance Systems Maturity Proactive 47

RCM-Turbo The Versatile Tool Review KPI RCM Scheduling Improvement Steps Resource Bal Grp Tasks RCM analysis is an important part of taking a maintenance organization towards Best Practice. But it is not he whole story. Opt Freq CMMS Task Analysis Fail Analysis Equip Codes Reactive Maintenance Systems Maturity Proactive 48

RCM-Turbo The Versatile Tool Review KPI RCM Scheduling Improvement Steps Resource Bal Grp Tasks RCM-Turbo is designed to not only perform the RCM analysis, but also address the other necessary steps in achieving World’s Best Practice. Opt Freq CMMS Task Analysis Fail Analysis Equip Codes Reactive Maintenance Systems Maturity Proactive 49

Frequency Optimisation MTBF Total Annual Business Cost of Maint. Cost of Failure Cost of Inspection Time Optimum Frequency FTM - Optimum Frequency based on Probability of Failure in MTBF

Warning Time P F1 F 70% Confidence non-failure

Frequency Optimisation MTBF Total Annual Business Cost of Maint. Cost of Failure Cost of Planned Repair Cost of Inspection Time Optimum Frequency Warning Time CBM - Optimum Frequency based on Confidence of non Failure in Warning Time

Frequency Optimisation Graph Here is a sample screen showing the frequency curve for the selected item. Also shown is the optimum frequency (the lowest point on the curve) along with the anticipated Availability and Reliability at the chosen frequency. It is important to understand that the figures used are the total costs associated with performing the maintenance at each frequency point. It includes the process down-time costs as well as the direct maintenance costs of performing the maintenance action. 67

Benefits Obtained from Frequency Optimisation Many Tasks Increase in Frequency – Increasing Reliability Many Tasks Reduce in Frequency – Reduced Costs without Compromising Reliability Average Cost Reduction 10% – 15% Assists ‘What If..?’ Scenario Testing Justification of Maintenance Decisions

Benefits of RCM Changing Organisations to Profit Centre rather than Cost Centre Maintenance A Methodology to apply Business Decision to Maintenance Planning Supports all Current Maintenance Techniques Consistent with and sub-part of TPM

Title Question RCM – Maintenance Philosophy of the Future? YES !