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Ultrasound World VI 2010

Presented by: Mike Aroney

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And to Accomplish the Mission

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Reliability is Critical to a Fighter Pilot

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To Land Safely

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Maintenance Personnel are Key to Success

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What Tool? When? (Right Tools, Right Time)

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The Global Opportunity

GDP
$46.6 Trillion

Industrial
$14.9 Trillion

Maintenance Spend
$447 Billion 1.5-8X OEE multiplier

Its Ok to get excited about Maintenance!

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Best Practice Benchmarking

I could agree with you, but then wed both be wrong

1. Chemical Processing 2. Petro-Chem 3. Pulp & Paper 4. Automotive 5. Pharmaceutical 6. Metals & Mining

522 498 468 465 431 430

7. Power
8. Food & Beverage

373
369
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Areas of Return
Cost reductions
Labor utilization Contractor costs Overtime Materials cost reductions (inventory/usage) Energy usage

OEE improvements (capacity)

Availability Efficiency Quality

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Reliability Engineering in Maintenance?

Failure modes that no technologie s detect

Maintenance Costs ($)

Equipment on PM (%) Copyright 2010 GPAllied

Failure Patterns
Initial Break-in period Bathtub
Pattern A = 4%
Time Time

Pattern D = 7%

Wear out
Pattern B = 2%

Pattern E = 14%

Random

Fatigue
Pattern C = 5%

Infant Mortality
Pattern F = 68%

Age Related = 11%

Random = 89%
Source: John Moore Copyright 2010 GPAllied

Review of Vendor PM Recommendations

New Task 12% Extended Interval 23% Use As Is 38%

Reduce Interval 6%

Delete 21%
Tasks Analyzed
(include 96 new failure modes)

Source: Steve Turner, OMCS International

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PM Evaluation Categorize PM Recommendations

PM Task Action Recommendation
Non-Value Added or Reassign to Ops Replace with PdM

# of Tasks
5,876

% of Tasks
29.4%

Man-Hours Represented
23,867

6,437

32.2%

28,222

Re-Engineer No Modifications Required Totals

5,200 2,487 20,000

26.0% 10.4% 100.0%

26,221 8,987 87,297

Source: Allied PM Evaluation at a Steel Mill

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PM/PdM Optimization Organizational Impact

FTE Positions
PM Techs PdM Techs Planners Reliability Engineers RE Techs Balance of Crew

Before
43 0 0 0 0 57*

After
17 11 8 2 5 57*

Totals
* Notes

100*
Wrench time @ 28% 35 contractors 18% OT

100*
Wrench time @ 50% 12 contractors 5% OT
Source: Allied PM Evaluation at a Steel Mill Copyright 2010 GPAllied

Capture Hidden Capacity Crafts Level

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 Nothing was missing, but we found three more

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How Do You Get There From Here?

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Synergy of AND Optimizes Reliability

High

+27%
Business Process and Culture Maturity
Improved Bottom Line Performance Lack of System Support

+75%
Significantly Improved Bottom Line Performance Practices and Systems Aligned

Baseline
Informal Manual Planning Processes Below Average Business Performance

-7%
Systems are not Complemented by Effective Business Processes Significant Inefficiencies

Low

Low

Technology Maturity

High
Source: Brynjolfsson (MIT), Wireman, Troyer, Allied Copyright 2010 GPAllied

Asset Health Processes

Management Efficient
Proactive Workflow Planning & Scheduling Material Management Reliability Engineering Operator Care

Leadership Effective
Creating a Culture of Discipline and Execution

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Change Management Values

80%

40%

3:4

29%

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System Variation = Inefficiency

1. Selection 2. Leadership 3. Training 4. Reinforcing System

We have processeswe just dont follow them

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If You Have Good:

Leadership Alignment Teamwork Change Management Innovation (both shop floor and R&D) Youre in an excellent position to achieve world class performance
If you dont have this, it doesnt matter much what tools you use

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LEAN/Six Sigma - Systems Thinking

Leadership is Effective - Actions Act and Influence New Thinking and New Behaviors Management is Efficient - Decisions Decide, Direct and Control Unfreeze & Freeze

Management Tools Leadership People

Processes

Philosophy

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Leadership
Leadership- the ability to inspire ordinary people to consistently perform at an extraordinary level Ron Moore

Leadership is an influence process. When you are a leader, you identify the needs of your team members and strive to satisfy those needs so they can achieve their objectives and the objectives of the organization Ken Blanchard

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Most Organizations Are Not Aligned

According to Harris Interactive Research (2006), only:
37% of employees had a clear understanding of what the organization was trying to achieve 20% were enthusiastic about organizational goals 20% saw a clear connection between their tasks and organizational goals 15% felt the organization enabled them to achieve their goals 15% felt they were in a high trust environment 10% felt their organization held people accountable 13% felt there was a high-trust, highly cooperative working relationships with other groups or departments
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Process Fragmentation
The Battle of:
The Verticals vs. the Horizontals

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Organization Culture Is Driven by 3 Things:

1. Systems
Performance management, information, training, etc

2.

Structure
Command and control/directive or team based/self-directed; centralized decisions of import or decentralized decision making

3.

Style of Leadership
Detached, command and control or engaged and participative

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Maturity Continuum
1. Be proactive 2. Start with the end in mind 3. Put first things first 4. Think win/win 5. Seek first to understand, then to be understood 6. Synergize 7. Sharpen the saw
Interdependent
5 6

4 7

Independent
3

2
Steven Covey 7 Habits of Highly Effective People

Dependent

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The Fleas And The Elephant

If you are not achieving performance objectives blame the system, not the people - Deming

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Culture: How We Learn It. . .

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Managing Culture Change

Culture what people do when the boss isnt around

- Ian Fife, Shell

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An Organizations Reliability Culture =

Operators operate and maintainers fixthey are independent functions or Operations and maintenance work together interdependently to keep the assets in likenew condition so When you push the button, it runs on demand at designed capacity and desired quality
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Production and Maintenance Relationship

Production

I better get out of here before they blame me for the oil leak

Maintenance

Before
From Parker Smith (Eastman Chemicals) - 2004 MARCON Keynote Presentation

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Production and Maintenance Relationship, contd

After
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Managing Change
Six (6) Factors for Changing Culture:
1. Dissatisfaction with the current state 2. Compelling vision of the desired state 3. Plan of action that will enable movement from current state to target state 4. Engaged Executive Leadership and Workforce 5. Structure for executing 6. Information and Skill management

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Stabilize the Changes

Realign or Develop standards, procedures
Train people in these, assessing compliance, and measuring conformance Incorporate standards into:
Succession Planning, Performance Objectives, ISO 9000 certification, Daily Management System

Install Reinforcing Systems

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The Leaders Role in Leading Change

Recognize the need for change
Have vision Inspire Communicate Engage

Set example

Commitment

Plan / Adapt / Network, build the coalitions

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Questions?

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About the Speaker

Mike brings 20 years of executive leadership experience with exceptional success developing and executing Business Strategy, Change Management, Organizational Transformations, and Leadership Coaching, and Maintenance and Reliability Excellence for Shipyard and Ships Intermediate Maintenance Activities. His specific experience includes: NAVSEA Program Manager for the Navy Enterprise Maintenance Automated Information System (NEMAIS), project reengineering processes for material management, work control, planning and scheduling, budgeting, personnel management, reliability engineering, and operator care for Navy ships maintenance throughout all Navys SIMAs and Ship Yards from 2000 to 2004. Mike was Program Manager for the NAVSEA Project Management College providing executive oversight on curriculum and delivery to Carrier Availability Project Teams from 2003 to 2005.

Mike Aroney Director, Change Management

EDUCATION MBA MS Education BA Public Administration CERTIFICATIONS Executive Leadership Strategic Planning AFFILIATIONS SMRP AMP CONTACT Mike Aroney GPAllied, LLC 4360 Corporate Rd Suite 110 Charleston, SC 29405 Work: 843-469-5458 maroney@gpalllied.com

He is adept at providing customized solutions to achieve and sustain changes in an organizations culture, and align the organizational to optimize execution and results of new business approaches for maintenance and reliability. Mike has successful executive experience developing business objectives and strategy, and aligning functional departments to execute and sustain $1.7 billion in revenue. Mike coached and advised senior executive teams, developed strategies and plans and follow-through with coaching and guidance to implement best practices in Reliability Excellence.
He has industry experience with: Alcoa, Century Aluminum, CMC Steel, Novellis, Swagelok, Pfizer Pharmaceuticals, Merck Pharmaceuticals, Johnson & Johnson Ortho, Pearl Harbor Naval Shipyard, Joint Forces Command, Naval Sea Service Command, Madison Metropolitan Water District, Los Angeles Metropolitan Water District, and US Sugar Corporation to name a few.

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