This is a report for Melbourne Cricket Club asset management and will be defined by many factors .ISO55000 is not a standard for asset management; is a standard for management systems. It does not provide details of how to manage assets, but simply provides the elements that must be carried out for a management system (for example, it is a characterization of a business management system that casually has to do with management of the teams), emphasizing the management of the creation of value and the risk1. For Melbourne Cricket Club, asset management is a novelty in the public and private sector that originally stems from management techniques used in the financial market and which is used in high-risk environments such as civil aviation, the high-tech industry for hospitals and nuclear power plants.
Asset Management Techniques &Some key Areas to Consider
PMO - Maintenance Optimization Part 1
For this reason MCC asset maintenance, is seen, in leading organizations, not only as a cost to be avoided, but in conjunction with reliability engineering, as a driving function of business. It is considered as a valuable contribution associated with the business, which contributes to the productivity of the assets and to the continuous improvement of their performance2.
The dilemma that most of us face (and usually, it is not our environment of responsibilities); is that we are managers, that alone we must improve the reliability, within organizations that scarcely have sufficient resources to keep the plants in operation3.In this case, the scarce maintenance resources are rationed and failures consume them. For MCC, preventive maintenance is injured, resulting in an increased frequency of failures, creating a vicious circle
In addition, to lost productivity due to unplanned maintenance, the mentality of quick repair promotes a "maintenance fires", or temporary maintenance, which commonly aggravates the situation. Temporary repairs require additional work for final correction, or in the worst case, fail before being corrected.
Often in the effort to reduce costs, recourse is made to staff reductions, with morale declining, remaining staff is left to consume by despair and tension, leading to a drop in labor standards. In such organizations, plant availability appears to fall and stabilize at the lowest level; a level such that no new faults are produced, because the plant practically does not operate; in other words, it is being repaired. For MCC to improving the maintenance processes involves the reengineering of the same and an increase in the efficiency of the resources.
Eliminate all Non-Purpose or Non-Cost Effective Maintenance Tasks
Eliminate all duplicate efforts in which different groups are running equal PM (Preventive Maintenance) on the same equipment. Directing the philosophy of maintenance to maintenance based on condition.
Add maintenance tasks oriented to prevent Failure Mode , which historically have led to failures, with economic criteria and prioritization
Distribute Workload to Operators and the Entire Organization
The long-term vision should promote such a process that, achieving its goals in a systematic way and remains as a "dynamic program", generating a continuous improvement fueled by the learning of new experiences and technological advances.
MCC asset management program is sponsored by SIRF and is the preferred method of analysis by one of the largest mining companies in the world. The methodology, training programs and software are known as PMO2000TM.
MCC Asset Management System
The purpose of this section is to describe the PMO optimization process, using the PMO2000TM methodology. This section also looks at how to address those problems that asset managers have and how PMO optimization can help solve these problems.
Comparison of PMO Optimization and RCM Maintenance Analysis Methods
The document demonstrates how PMO generates the same maintenance program as RCM, six times faster and six times more economic. Maintenance budget must be used to finalize the construction and cover extra expenses, he must take care of the disorderly arrival of spare parts and basically has little or no information about the modes and effects of failure of the plant. For MCC, very rarely, maintenance documentation is given to the maintenance department, much less a maintenance plan for a new plant. Organizations applying best practices develop an RCM-based maintenance plan during the design phase. The policy is defined quickly and usually by people not suitable for it. The problems presented from the beginning are: There is no coherence between the philosophy of analysis and the policies that are implemented. Maintenance personnel, because of their resistance to change, generally define maintenance policies based on intrusive maintenance, overhauls and / or over-maintenance with the aim of preventing failures, creating more damage than good to the reliability of the plant. There are no guidelines to audit the program or plan, only those who established the policies know its foundation (if any). It is practically impossible to control the plan and measure its results in an objective way. MCC plan in operation once the plant is in operation and fails, more maintenance tasks are created, the frequencies of the existing ones are increased and the duplication of tasks is started, in addition the maintenance staff to demonstrate that it does something creates and executes tasks that are supposed to prevent failures, but that do not really have any purpose.
MCC Asset Management in Production
The requirements of Preventive Maintenance (PM) exceed available resources, preventive tasks are diminished, failures appear preventable and unplanned maintenance consumes more man hours than necessary. The number of temporary repairs goes out of control, extra costs are generated related to the conversion of these temporary repairs to definitive and / or waste more resources as a result of forgetting the temporary jobs that have been developed. The vicious cycle of failures, temporary repairs and PM reduction gains prominence and consolidation. Appear Management consultants who propose a cost reduction approach and recommend staff cuts and budget, which only serves to strengthen the vicious circle and increase maintenance rpm. The end result is a moral problem for maintenance and low plant performance. Many organizations just like MCC turn to RCM to develop a maintenance program with the goal of regaining control. In the panorama of the vicious circle that has been used RCM as an analysis tool is highly inefficient, as it consumes excessive amounts of valuable and scarce resources for maintenance and operations6. RCM was not created to be used as an analysis tool in mature organizations. Improvement Tactics Dupont Experience - Four Strategies There are studies that give recommendations for resolving conflict, other than looking for ways to make cultural changes, asset managers should focus on key areas, such as: For MCC,developing well-focused and effective maintenance policies, improving maintenance planning and scheduling under revised policies focusing efforts on troubleshooting .The DuPont model appears in the Manufacturing Game which illustrates the above points. The following table shows how DuPont has modeled the effect of various maintenance strategies on the availability of a plant in operation PM(Taken from Manufacturing Game - DuPont analysis shows that a company focused only in improving planning, its availability will improve in a system.
MCC Improvement Tactics
If you only focus on maintenance scheduling, availability will improve . If it is only oriented towards preventive and predictive maintenance, availability will decrease due to over-maintenance. If the organization works on all three aspects, there will be a improvement in availability. These results are quite attractive, however DuPont found that adding a fault elimination process to the strategies already mentioned would achieve an increase in on plant availability. Problems with most Preventive Maintenance programs.The most common problem with maintenance programs for mature plants that were not solidly designed at the outset was that between 40% and 60% of Preventive Maintenance tasks do very little for plant performance. The conclusions of several PMO studies are: There are duplicate tasks. Some tasks are done very frequently and some very late. Some tasks do not generate benefits. Some tasks are intrusive or based on overhauls, when they should be based on condition8. There are many faults that are costly and easily preventable. This creates a dilemma for improving productivity, because even though planning and programming are perfect they will not help improve a maintenance program that is inefficient in itself. Offer different options for minimizing or eliminating faults 8. The recommendation to implement all strategies is to ensure that decisions are made based on a RCM analysis, carried out in the design phase of a new plant and for the plant in operation, PMO is the means to rationalize all Preventive Maintenance PM) and thus assure that there is added value and that there is no duplication of tasks
PMO2000 from A to Z
The PMO2000 process for MCC Asset management consists of nine steps.
Program Ranking the Project It should be noted that a PMO2000 process should be based on the criticality or ranking of the plant systems. This criticality can be obtained by reviewing the hierarchy of equipment or its prioritization in job scheduling and subdividing or filtering the information by systems and / or equipment for analysis. Once the criticality of the systems is identified and measured, the project focuses on meeting the strategic objectives of the organization. Critical systems tend to be those that impact
the organization as follows: They present high risks for safety and the environment. They have a significant impact in terms of plant costs and production. They consume excess labor to be operated and maintained. Once the criticality study has been done, this is the basis for determining the priority in which the systems will be analyzed and the rigor of cad (Woodson & Lewis 2004).
Maintenance Plan Based on RCM for MCC
RCM or Reliability Centered Maintenance is one more technique to develop a maintenance plan in an industrial facility and has some important advantages over other techniques. Initially it was developed for the aviation sector, where the best results for the safety of air navigation were not obtained. Later it was transferred to the military field and much later to the industrial one, after checking the excellent results that had given in the aeronautical field.
The fundamental objective of the implementation of a Reliability Centered Maintenance or RCM in an industrial plant is to increase the reliability of the installation, that is to say, to reduce the time of plant shutdown by unforeseen faults that prevent to comply with the production plans. The secondary but equally important objectives are to increase availability, that is, the proportion of the time the plant is ready to produce, and at the same time to reduce maintenance costs. The analysis of the potential failures of an industrial installation according to this methodology brings a series of results:
It analyzes all possibilities of failure of a system and develops mechanisms that try to avoid them, whether they are caused by causes intrinsic to the own equipment or by personal acts.
It determines a series of actions that allow guaranteeing a high availability of the plant.
The actions tending to avoid failures can be of several types:
Determination of maintenance tasks that prevent or reduce these faults
Improvements and modifications in the installation
Measures that reduce the effects of failures, in case they cannot be avoided
Determination of the spare stock that is desirable to remain in the plant, as one of the palliative measures of the consequences of a failure
Operating procedures, both operation and maintenance
Seven Key Questions
RCM is therefore based on highlighting all the potential failures that an installation can have, identifying the causes that cause them and determining a series of preventive measures that avoid such failures in accordance with the importance of each one of them. Throughout the process, a series of key questions are raised that must be resolved for MCC Asset Management:
What are the functions and operating standards in each system?
How does each team fail?
What is the cause of each failure?
What parameters monitor or alert a fault?
What are the consequences of each failure?
How can each failure be avoided?
What should be done if a failure cannot be avoided?
The solution to these questions for each of the systems that compose an industrial installation leads to the determination of potential failures, the causes of these and the preventive measures that will have to be adopted.
Summary of the 5 Phases of RCM
The process of failure analysis and implementation of preventive measures goes through a series of phases for each of the systems in which an industrial plant can be decomposed:
Phase 1: Clear definition of what is intended to implement RCM and determination of indicators, and assessment of these before starting the process.
Phase 2: Codification and listing of all systems, subsystems and equipment that make up the plant. For this it is necessary to collect schemas, functional diagrams, logical diagrams, etc.
Phase 3: Detailed study of the operation of the system and determination of system specifications List of primary and secondary functions of the system as a whole. List of main and secondary functions of each subsystem
Phase 4: Implementation of preventive measures.
Phase 5: Evaluation of the measures adopted, through the evaluation of the selected indicators are associated with cyclic faults in which there is a zone in a given time.
Cyclic Failure Patterns
The last three fault patterns correspond to complex electronic, hydraulic and pneumatic equipment. These fault patterns are associated with random faults, where a useful life of the components is not known. Random failure may be sudden or progressive. If it is sudden, there is no way to prevent it and must be mitigated. In the event that the fault is random and progressive, the operating conditions can be monitored to determine a suitable period for treating a failure mode.
The steps to restore the system function after the failure should be indicated. When considering the causes of failure, the patterns related to age, randomness and mortality should be considered
childish. These relationships are described in 6 types of failure patterns. Failures correspond to simple elements or complex equipment that are in direct contact with the product. These defaults patterns are associated with fatigue, corrosion. These fault patterns are cyclic where there is a zone at a time.
Types of Cyclic Fault Patterns
Random failure may be sudden or progressive. If it is sudden, there is no way to mitigate it. In the event that the fault is random and progressive, the operating conditions can be monitored to determine a suitable period for treating a failure mode. shows the cyclic fault random error patterns. In summary, the possible tasks associated with fault types are described in RCM.
MCC Asset Management Decision-Making Analysis
The analysis decision making is the proccual determines the consequences of the failure and the strategy needed to prevent or mitigate the effect of failures.
According to MCC asset management for each fault mode identified, the consequence produced by each fault is determined. The consequence of the failure in which a mode of failure or a multiple fault is important and there are 4 types of consequences:
Consequences of Hidden Faults
Tasks for each type of decision-making analysis
Decision-making analysis is the process by the ends of the consequences of the failure and the strategy needed to prevent or mitigate the effect of failures. This process obeys the Diagram of the process of analysis of intake in the mode of identified fault, determines the consequence produced by each fault. The consequence of failure is the way in which a failure mode or a multiple fault is important. There are 4 types of concealed shadow consequences. These kinds of consequences do not have a direct impact, but expose the organization to multiple failures with serious and catastrophic consequences.
Grouping of maintenance tasks obtained from the decision-making process. Finally, the implementation stage of maintenance based on reliability and audits consists of loading the new maintenance plan into the maintenance planning computer system and its due execution. This process should be continuously evaluated with reviews or audits every one or two years, according to what the organization plans. 4. Benefits of maintenance application focused on reliability The benefits of implementing the RCM process are as follows:
Increased safety and environmental integrity.
The RCM process works to prevent or eliminate environmental and safety risks
Better operational performance. The RCM process works to improve production quantity, product quality and customer service.
Higher cost-efficiency of maintenance. The RCM process analyzes each of the events that causes the unavailability of a system, thus evaluating the activities that ensure results on the maintenance of the equipment.
Longer Life of Expensive Components.
Better teamwork and greater staff motivation. The RCM process establishes a single language between the production and maintenance area, establishing a better communication between both parties. Additionally, the staff involved with the process is motivated because it acquires a 'sense of ownership' of the process.
The process of developing maintenance plans using the RCM methodology focuses on the application of maintenance tasks according to the events that cause unavailability of the systems. In this way, only the necessary activities are performed to continue to fulfill the functions that the user wants, reducing maintenance costs for unnecessary tasks.
In most RCM processes preventive maintenance decreases by 60% while maintenance on condition increases by 40%. This is because there are conditions that indicate the occurrence of a failure and that before the RCM process were not considered.
The RCM process develops a document in which events are recorded that cause loss of function, so that it serves as a catalog of faults, in which maintenance personnel can resort to detect and diagnose faults.
The RCM process develops the technical level of production personnel because it allows them to become familiar with the facilities and their operation.
MCC asset technological advances of recent years have awakened the interest of companies to achieve operational excellence, starting a new era in asset management. This is perceived by a majority of managers of companies whose business is based on the maintenance of assets. And they perceive it because they see as a great opportunity the possibility of using, analyzing and applying all the information that is currently obtainable to achieve a better efficiency in maintenance operations.
A study by Ernst & Young indicates that achieving operational excellence could lead to a 43 percent reduction in costs in a sector such as oil and gas, and could reduce the number of security incidents by a similar percentage. Operational excellence applied to asset management would lead organizations to benefit from increased asset integrity and improved planning and execution of maintenance activities, reducing critical incidents by as much as 50 percent.
The large amount of data that is currently available thanks to IoT and M2M devices, data storage and processing capabilities provided by big data platforms, and the possibilities offered by advanced analytics techniques are contributing to that the future in the maintenance of assets is preventive rather than corrective. With a clear objective, to help the companies and public
Organisms to assure the reliability of the assets, increasing their availability, their time of operation and improving their safety, and reduce the costs in the maintenance of the equipment. The new technologies offer real and tangible benefits. MCC future is already a reality.
Factors such as ambient temperature, humidity level, or excessive vibration influence the performance of the machines. The collection and correlation of operational and environmental data provides a clearer picture of the performance and maintenance requirements of the machines. This allows to predict the maintenance requirements of each equipment. And prevention is always cheaper than cure.
The number of beneficiaries is large considering the wide range of assets (transformers, pumps, wind turbines, panels, pipelines, vehicles), and the risks associated with their malfunction or inactivity are immense, that is why a reliable maintenance strategy is a priority not only for key sectors such as energy, transport or the public sector, but also for others such as the manufacturing sector. In an IDC survey of manufacturing companies, 38% of respondents acknowledge that the focus of their maintenance operations is reactive with a focus on fixing failures rather than preventing them.
But in MCC however, there is strong evidence to suggest that this is changing, and will revolutionize the way companies will deliver asset maintenance services in the coming years, based on a more proactive and therefore more proactive approach.
MCC Asset Risks
Companies such as MCC have already begun work on this line, directing their maintenance strategy to a more predictive dynamic, through which they can identify the elements of an elevator that need to be repaired and replaced before unplanned outages of the service. For this, it has tended to also update its processes, train its more than 20,000 technicians, as well as modify its service contracts with its customers to incorporate this new way of offering its elevator maintenance service.
Scheduled preventive maintenance represents a breakthrough, but it is not the ultimate goal. Prescriptive maintenance is the next big step forward in the evolution of asset management. Prescriptive maintenance systems use algorithms to evaluate multiple variables and provide greater reliability of results. This means moving to more preventive maintenance by incorporating intelligence into the process, improving efficiency in planning maintenance operations to maximize the viability and operation of equipment and optimize the management of material and human resources.
The benefits of applied analytics are clear, such as the increase in the average life of equipment, by avoiding serious breakdowns. But it also helps to have a better understanding of the assets
and what we need for to stop them from working. A greater knowledge of the maintenance activity allows us to know in advance what materials we will need to carry out the maintenance task (tools, spare parts, vehicles ...), the number and training of the operators that will be necessary and how much time we will need to repair it. With all this information we can develop solutions that allow incorporating business intelligence in the automation of the process of planning and allocation of resources in the scheduling of maintenance tasks, reducing costs, minimizing risks and ultimately improving the efficiency of the process. Advanced analysis tools can help us, therefore, to improve the management of maintenance operations. Let's take an example. Suppose a component of a pump starts vibrating more than normal or the sound of a machine changes the frequency of its pitch, indicating something unusual is occurring. The sensor can pick up that change, and analyzing that data using fault prediction models (based on manufacturer information, historical data of the equipment and the behavior of other similar equipment) detects a loss of performance in the next 36 hours. This gives the maintenance team the opportunity to schedule their repair according to the capacity available, sending the operator with the appropriate skills for repair; with the necessary tools and spare parts for their replacement; and adjusting it to the scheduling and programming of maintenance equipment. Therefore, the use of solutions based on analytical models, will allow us to maximize asset uptime (avoiding unplanned pump downtime) and also to have information to minimize the times that maintenance teams should act on the pump, reducing the time that the workers needed for their repair.
In addition, the system can use all this information to automate the scheduling of maintenance activities. That is to say, it will be able to optimize the planning of the operative, looking for the optimal work plan to minimize the costs of the maintenance operations, adjusting the resources to those merely necessary to solve the incidence and the level of contracted support. Companies such as MCC, which offer maintenance services for air conditioning systems, are already doing so . Today the study of data allows us to detect patterns and trends that can guide us in the development of maintenance plans more efficient and effective. The future of the maintenance operations aims at a personalized treatment of the assets.
It is also necessary to take into account the utilization rate of the item to select the mathematical model appropriate The constraints imposed on investment in inventories are usually expressed in terms of the desire of senior management to achieve a certain level of turnover. This is not good, in the first place, because it would be treating the inventory for maintenance as a commercial inventory and secondly, an overall value for the rotation is simply an average figure that does not provide information for proper decision making. As discussed at the beginning of this article, one of the complexities of inventory management for maintenance is the wide variety of items with different values ??of the rotation indicator depending on the utilization rate, from materials with very high turnover, eg spare parts generic, to materials with an extremely low rotation, generally very critical and of very high price. The fundamental parameters that determine the necessary investment are:
The delivery time
Demand V. The ideal companies to undertake an MRO inventory optimization program are those that have the following characteristics:
Large variety and quantity of articles
Subjective key performance indicators (KPIs)
High inventory value
High levels of obsolescence.
The typical consequences of the previous situation are:
Around 25% of the time, maintenance personnel leave the warehouse without the requested items or quantities
About 10% of the material purchased today • Less than 3% of the surplus material will be returned to the original supplier. The questions that arise as a result of this situation is the first step in solve the problem of MRO inventory management
The management of assets for MCC for maintenance has not been given the importance it has, since in many companies the maintenance people consider that this is not their problem. The reality is that the bulk of total maintenance costs are made up of the direct cost of the materials and the cost associated with the decision to keep them stored. The inventory affects the rate of return on investment, primarily because it generates costs for its maintenance and secondly because it is part of the business assets. In view of the above, it is very important to carefully service the maintenance inventory management to minimize the necessary investment without affecting the continuity of the operations in a safe and efficient way. The optimization of inventories is a process that must be carried out in all the organizations to contribute to improve the profitability of the company.
Asset Management (BSI 2008)
Asset Management (BSI 2004)
Asset Management (BSI 2008)
Asset Management (BSI Standards Ltd 2014)
Ben-Daya M, Kumar U and Murthy D, Introduction To Maintenance Engineering
Campbell J and Jardine A, Maintenance Excellence (Marcel Dekker 2001)
Coelho S and others, Visual Tool For Supporting Asset Management Performance, Risk, And Cost Analysis (IWA Publishing 2016)
Crespo Ma?rquez A, Di?az V and Ferna?ndez J, Advanced Maintenance Modelling For Asset Management
Damodaran A, Investment Valuation (Wiley 2012)
Developing Performance Indicators For Maintenance And Asset Management (Industrial Pr 2014)
Gulati R, Maintenance Best Practices (Industrial Press, Incorporated 2012)
Keathley E, Digital Asset Management
Kuschel T, Capacitated Planned Maintenance (Springer 2017)
Leondes C, Knowledge-Based Systems (Academic 2000)
Lohmann N, Song M and Wohed P, Business Process Management Workshops
Mathew J and others, Engineering Asset Management And Infrastructure Sustainability (Springer London 2012)
Mehairjan R, Risk-Based Maintenance For Electricity Network Organizations (Springer 2017)
Rezg N, Dellagi S and Khatab A, Joint Optimization Of Maintenance And Production Policies
Rezg N, Dellagi S and Khatad A, Joint Optimization Of Maintenance And Production Policies (Wiley 2014)
Sifonte J and Reyes-Picknell J, Reliability Centered Maintenance - Reengineered
Sustainable Practices, Performance Measures, And Management (2012)
Wireman T, Benchmarking Best Practices In Maintenance, Reliability And Asset Management
Woodson J and Lewis E, Coming On Home Soon (GP Putnam's Sons 2004)