1. Best in Class 15 % 5 % 80 % 100 % Reactive / Deviation work Too little, too late 60 % 20 % 100 % Industry Average Non-value added Too much, too early Base work Right Work at the Right Time Cost of Not Doing the Right Work

2. Copyright © 1996-2004, Ivara Corporation. All rights reserved Are Time Based PMs the Answer?

3. Age Probability of Failure Assumed most items wear out at about the same age Preventive Maintenance (time based) The PM itself could cause failure Traditional View of Failure

4. The majority of failures are random, not age related >80% random <20% age related Condition Related Random Failure Age Related Bathtub Infant Mortality Fatigue Related The Reality of Failure There are six failure patterns 2% 4% 5% 7% 14% 68%

5. Today’s Definition of Failure Failure starts here Conditional probability of failure P Potential Failure P-F Interval F Equipment not performing intended function Functionally failed Today’s definition of failure Equipment broken Old definition of failure Time

6. Today’s Definition of Failure Failure starts here Conditional probability of failure P Potential Failure Reliability Window F Functionally failed Today’s definition of failure Equipment broken Time