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How to reduce the amount of non – correct information in Salino

MASTER THESIS

Master of Science
In
Asset Management Control

HOW TO REDUCE THE AMOUNT OF


NON-CORRECT INFORMATION IN SALINO

Tutor: Mr. Willem van ‗t Spijker PhD


Student: Mr. Jorge Bosaans

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How to reduce the amount of non – correct information in Salino

ACKNOWLEDGEMENTS

First of all, I would like to thank Dr. John Stavenuiter, AMC Centre, UNAB, and
Hogeschool Zeeland to allow me to get in touch with this amazing new body of
knowledge: the asset management which has become my main field of interest
because it encompasses several of the disciplines I have enjoyed with along
my professional career, but now from a new and awe-inspiring approach.
I also want to thank Dr. Willem van ‗t Spijker for giving me his valuable
counseling and support during my research.
My acknowledgements also go to the Chilean Navy for allowing me to pursue
this research on its most valuable asset: the Fleet and its logistical
management, which was converted in the laboratory during the research
period. I deeply hope that the result of it serves to improve at least a little bit
some logistic processes.
I also want to thank the group of people at the Directorates who answered the
questionnaires, the professionals who worked with me in the SALINO
application and the team who participated in the interviews. Their time spent
and their willingness to cooperate with me have comprised my gratitude.
Without their valuable and enthusiastic participation this research could have
not arrived to port.
At last, but not the least, I want to thank my tribe: my wife Carmen for her
permanent support and graciousness for allowing me to take away so many
home hours, to my children Jorge Andrés, Juan Cristóbal and Sebastián
because they have always been my inspiration and my motivational incentives
in all my personal and professional challenges, and to my brother Juan who,
with his particular sense of humor, always encouraged me to pursue my
academic work.

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How to reduce the amount of non – correct information in Salino

CONTENT

Content Page
Acknowledgement ………………………………………………………….. 2
Abstract …………………………………………………………………... 5
I Introduction ……………………………………………………………….. 5
The Problem ……………………………………………………………... 8
Research Map …………………………………………………………… 12
Conceptual Framework …………………………………………………. 13
Logistical Managerial …………………………………………………… 14
II Literature Review ………………………………………………………… 20
Asset management ……………………………………………………… 20
Data quality ………………………………………………………………. 28
Data as an asset ………………………………………………………… 30
Applying data quality principles to data ………………………………. 33
Data cleansing …………………………………………………………… 35
Business Intelligence (BI) ………………………………………………. 36
Salino ……………………………………………………………............. 38
III Methodology ……………………………………………………............... 43
IV Results …………………………………………………………................. 56
V Discussion ………………………………………………………………… 60
VI Conclusions ………………………………………………………………. 61
VII Recommendations ……………………………………………................ 62
VIII Cost – benefit analysis ………………………………………................ 63
IX Suggestion for further work ………………………………................... 66
X References …………………………………………………….................. 67
Bibliography ……………………………………………………………… 67
Web references …………………………………………………............ 69
Documents ………………………………………………………............ 70
XI Appendices ……………………………………………………………….. 71
Appendix A: Survey 1 ……………………………………………............. 71
Appendix B: Survey 2 ……………………………………………............. 75
Appendix C: Application run ……………………………………………… 77
Appendix D: Face-to-face interview …………………………………….. 84
Appendix F: MINCOM Ellipse …………………………………………….. 85

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How to reduce the amount of non – correct information in Salino

LIST OF FIGURES

Figures Page
Figure 1: Relations among the variables 11
Figure 2: Research map 12
Figure 3: CN Organization 13
Figure 4: Relationship among stakeholders 18
Figure 5: Flow of logistic information 19
Figure 6: Life cycle of an asset 21
Figure 7: Asset management objectives through LC 22
Figure 8: Conceptual design of an improved AMCS 23
Figure 9: The LCM-team 23
Figure 10: Example of Life cycle cost 24
Figure 11: Cost-effective structure 27
Figure 12: Hierarchical framework for data quality 30
Figure 13: Model of data policy 32
Figure 14: Steps for process management approach 34
Figure 15: Salino environment 40
Figure 16: Flow of information in Salino 42
Figure 17: Ishikawa Analysis Diagram 55
Figure 18: Data quality dimensions 56
Figure 19: Number of WO with errors 57
Figure 20: Rates of accuracy errors per ship 58
Figure 21: Relative occurrence of problems 59

LIST OF TABLES

Tables Page
Table 1: Data quality dimensions 29
Table 2: Results of Survey 1 47
Table 3: Results of Survey 2 48
Table 4: Most mentioned registers 50
Table 5: Results of Application run 51
Table 6: Problems leading to errors 53
Table 7: Root causes for accuracy errors 54
Table 8: Problems that lead to errors 58

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How to reduce the amount of non – correct information in Salino

HOW TO REDUCE THE AMOUNT OF


NON-CORRECT INFORMATION IN SALINO

Abstract

The Navy implemented a powerful integrated information system that provides a means to
collect valuable data generated throughout the entire Navy, which after being processed
becomes useful information that supports the logistical managerial decision making
process at several levels and stores historical data for future use. During a 12-year period
of operation, some flaws have been detected. Now, when there is the commitment to
achieve cost-effective management of assets, it is necessary to ensure the information
delivered by the system be free of errors. The research determines the sources of main
non-correct information, identifies its causes, and recommends actions to reduce the
amount of errors, estimating the costs and benefits of its implementation.

The good news about computers is that they do what you tell them to do. The bad news is that they do what
you tell them to do.
Ted Nelson

Keywords: Data quality – Information quality – asset management – life cycle - cost effectiveness

I Introduction

The Chilean Navy (CN), motivated by the recent renovation of the entire fleet and
the budgetary cuts, decided to improve its logistical managerial performance in
order to be able to manage its assets in the most cost-effective way (DGSA, 2008).

This decision was made after the close contact established with the navies
providers of the incorporated units, UKRN1 and RNLN2, when it was evident there
was a need for updating the processes of material logistics management to meet
the growing operational demand on the Fleet. This need came out because on the
one hand, the greater complexity of components of the units incorporated recently,
and the smaller life cycle of the higher technology components of the equipment on

1
United Kingdom Royal Navy
2
Royal Nederland Navy

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How to reduce the amount of non – correct information in Salino

the other hand. This scenario obligates having personnel with updated knowledge
and skills to be able to analyze and manage, among others, the cost/effectiveness
rate of the assets during their entire life cycle.
In addition, this modernization pursues the objectives of managing staff knowledge
in the best way, possible streamline processes, applies good engineering practices
of systems engineering and adapts better to the new procedures of defense project
evaluation and resources allocation. (DGSA, 2008). The concepts stated in this
document constitute a big challenge.
The decision mentioned above was reinforced by the appointment of a high
ranking Officer as Project Leader of the Logistic Modernization Project,(DGSA,
2008).

The two paramount issues to achieve cost effective management control of the
assets are to control the systems effectiveness (SE) and their lifecycle cost
(LCC).(Stavenuiter, 2002).
To get control on SE and LCC of the assets, it is necessary to collect and process
an enormous amount of data that is generated all over the organization, then
process it to produce, store and deliver useful information to support the decision
making processes at different levels of the organization. To do this, the Navy
implemented an integrated information system called SALINO3, which is an ERP4
type of information system, which means it integrates internal and external
management information across the entire organization.
SALINO is defined in the Manual, which is an oficial document of the CN, as ―an
information system designed to support the administration of the material in an
integrated and online way, allowing automatic processes and enabling total
visibility of the assets, contributing to logistics decision making process‖(Manual de
SALINO, 1999,pp.4). This visibility considers the knowledge of place, status, cost,
and lifetime prediction of the naval material.
It was developed 12 years ago, on a Mincom Information Management System
MIMS – ELLIPSE software with a central database ORACLE. A more detailed

3
Sistema de Apoyo Logistico Naval=Naval Logistic Support System
4
Enterprise Resource Planning

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How to reduce the amount of non – correct information in Salino

description provided by SALINO management is given in Chapter II Literature


Review.
More than 10.000 users from different organizational levels are connected to the
system and perform around 2.500 transactions per day.(SIAMA5, 2011)
Through a DMZ6 which gives access to the OMEGA7 system of ASMAR8 and the
Naval Missions from abroad.
Even though SALINO is a powerful ERP that provides a means to collect data
generated throughout the entire Navy, which after being processed becomes
information that, among others, supports the decision making process of logistical
management at several levels and stores historical data for future use, some flaws
have been detected by the users of the information processed by the system,
mainly the Material, Maintenance and Technical Directorates (they are identified
and their functions described at I.c. Logistical Managerial) .
Some of these flaws are related to the amount of non-correct data entered into the
system, which has been detected by the Maintenance Information Service (SIAMA,
2009) when a revision of the data entered to the maintenance module was
performed. Before that, the Material Directorate gave instructions to reduce errors
in data entered in SALINO due to a data audit received by the DTIA9 (DGSA,
2007). Other types of flaws are procedure related: different types of costs are
wrongly charged. For instance, the electric power consumed by the units of the
fleet in Valparaiso is charged to the Supply Center which is the owner of the plant
that delivers the energy but not to the units that consume it (DGSA, 2009). Parts
used in the RxR10 process are charged to the DIRISNAV11 that manages the
process but not the unit that owned the installation (DIRISNAV, 2008). Fuel
consumed by units deployed to international missions is charged to the logistical
authority not to the unit. (DABA, 2009).

5
SIAMA: Servicio de Información Mantenimiento de la Armada=Maintenance Information Service
6
DMZ: Demilitary Zone= a physical or logical subnetwork that contains and exposes an organization's external
services to a larger untrusted network, usually the Internet.
7
OMEGA: the ERP of ASMAR.
8
ASMAR: Astilleros y Maetranzas de la Armada= the shipyard of the Chilean Navy.
9
DTIA: Direccion de Telecomunicaciones e Informatica de la Armada= CN TIC Directorate
10
RxR: Repair by replacement
11
DIRISNAV: Direccion de Ingeniería de Sistemas Navales= Naval Systems Engineering Directorate
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Some other flaws are associated with the software: in the historical maintenance
information stored in the system the parts which failure has been the most frequent
cause of the installation failure are not highlighted, impeding the logistic managers
to take preventive actions on those specific parts (DABA, 2010).
Another type of flaw that is charged to the SALINO system is its lack of capability
to perform data mining which is the process of extracting patterns from the data
stored in it, to transform that data and information into business knowledge. (This
concept will be further explained in Chapter II Literature Review - Business
Intelligence).
Finally, a more generalized claim is that arising from the Technical Directorates
and it is related to the usefulness of the information coming out of SALINO that
they need to support their logistical managerial decisions. The users complain of
errors, incompleteness, and inconsistencies.(DGSA, 2009-1)

THE PROBLEM:
The Navy strongly needs to identify some relevant flaws in SALINO and find a way
to fix them in order to improve its logistical managerial decision making process to
manage its assets in a more cost – effective way (Directive DGSA, 2008).

Keeping this in mind, research was done to detect the flaws of SALINO, confirming
those mentioned above and searching for others, selecting those most relevant,
determining their causes and recommending appropriate actions to be taken in
order to improve the way in which SALINO supports the logistical managerial
decision making processes in the Chilean Navy.
To do this, the research question is:

How to reduce the non-correct information in SALINO?

In order to answer this question, the research was conducted according the
methodology described ahead, and answering the following sub questions:

1. - What is SALINO?

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Its philosophy, structure, capabilities, functionalities, and general


characteristics had to be learned. To do this, the researcher attended a short
course on SALINO at the Academia Politécnica Naval (APN 12) and obtained a
training account to become familiar with the system, its characteristics and
capabilities as well. In this activity it was very important to acquire the knowledge
of the system, but also it was important to be familiar with the environment that
people who enter data into SALINO are faced with in order to have a closer
experience about that feeling.

2. - What are the flaws of SALINO that produce the highest amount of
errors/misinformation of SALINO?
To answer this question the researcher had to corroborate the existence of
the flaws indicated previously searching at the Directorates that originated the
documents where the flaws are claimed (DGSA, 2009., SIAMA, 2009) and looked
for other still not identified. Then a selection was made in order to pick out the one
that was viewed as the most important for the users to support their decision
making processes.
This was done, first by establishing what dimension or characteristic of the data is
more significant for the decision making process conducting a survey among
SALINO users at the Technical Directorates to sustain , on their own judgment, the
data dimension which is the most significant for the appropriate support to the
decision making process. Data dimension as defined by Wang, R and Strong, D.
1996 is a set of data quality attributes that represent a single aspect or construct of
data quality.
After this, a second survey was conducted, this time with the technician of the
Maintenance Information Service, to find out in what areas or modules of SALINO
have the greatest amount of errors in this data dimension.
Having this information at hand, an empiric measure was performed on a
significant amount of assets (five out of eight ships of the Fleet) to confirm or reject
the users perception about the flaws of SALINO. Using an application, developed
for this research by IT personnel of the Maintenance Information Service jointly
with the author, the exact amount of errors of SALINO was counted, in the module

12
APN: Academia Politecnica Naval = Naval Politechnical Academy

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How to reduce the amount of non – correct information in Salino

elected, over the total amount of current transactions that means transactions on
maintenance works open.
3. - What are the possible causes of the flaws?
From the flaws selected, the researcher determined the causes.
To do this, the author went to the source of the data entry process, the five ships
that participated in the measurement of errors. A combination of semi-structured
interview and in-depth group interviews were performed in order to come up with
the causes of the flaws.
The first set of semi-structured face-to-face individual interviews (Saunders, 2009)
with ten technicians pertaining to the ships where the data analyzed came from
(two per ship) that perform the data entry was intended to gather information about
their work environment and their relation to SALINO related tasks in order to
identify possible problems.
After all individual interviews were accomplished, a final in-depth group interview
was held with all the interviewees (minus three who could not attend) in order to
come up with the causes of errors, starting from the problems identified in the
previous activity. The Ishikawa (Fishbone) Diagram method and Brainstorming
techniques were used to establish the causes.

4. - How to remove or diminish these causes?


The researcher finalized with a recommendation of a set of actions to be
taken or changes to be implemented to reduce non-correct information in SALINO.
Actions oriented to facilitate the use of SALINO interface were analyzed in
brainstorming meetings with experts at the Maintenance Information Service and
SALINO Management Office. Action oriented to train and motivate the personnel
was elaborated by the author based on competences developed in Module 5
Motivation of the Master of Science in AMC13 course (Kwakernaack, 2009). Finally,
action oriented to detect in line errors was produced by the author based on the
application developed for this research.
A cost – benefit estimation of its implementation is presented. As learned in the
Master Course, where the core is how to achieve cost-effectiveness in assets
management, (Stavenuiter, 2002), the benefits of reducing or eliminating the

13
AMC: Asset Management Control
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causes of errors obtained from the actions recommended must be analyzed in


front of their costs.
The relations among the variables are shown in the figure 1.

RELATIONS AMONG VARIABLES

Fig. 1 Relations among the variables of the research

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Conceptual framework

In order to understand the logistical managerial decision making process within the
CN, it is necessary to describe first the whole organization structure and then the
entities directly associated to the asset management and how they interrelate
among them. The information that follows in these paragraphs was extracted from
the CN official website .
In the following figure the big picture of the organization is shown.

ORGANIGRAM OF THE CHILEAN NAVY

C in C &
STAFF

OPERATIONS MATERIAL PERSONNEL FINANCE COAST


ASMAR
COMMAND DIRECTORATE DIRECTORATE DIRECTORATE GUARDS

SYS. ENG. BUDGETING MARITIME OPS


FLEET HHRR
DIRECTORATE DIRECTORATE DIRECTORATE

R&D EDUCATION ACCOUNTING MARITIME INT


SS
DIRECTORATE DIRECTORATE DIRECTORATE DIRECTORATE

NAVAL MAINTENANCE WELFARE


AVIATION DIRECTORATE DIRECTORATE

MARINE SUPPLY HEALTH CARE


CORPS DIRECTORATE DIRECTORATE

Fig. 3 CN Organization

The superior command of the organization is represented by the Commander in


Chief and the Staff. Five subordinate units report to this command:
1. The Operations Command concentrates more than the 85% of the capital
assets of the organization. It commands the Fleet, the Submarine
Command, Naval Aviation, the Marine Corps, and other smaller forces. It
corresponds to the Operator in the LCM14-team model of AMC15, explained
later.

14
LCM-team: Life Cycle Management - team
15
AMC: Asset Management Control

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The main logistic effort of the organization is focused whithin this command.
Here are the assets that allow reaching the organization its main goal: to
win the war at sea.
2. The Material Directorate is the design authority under the LCM-team model
of AMC. It embraces the Systems Engineering Directorate which leads the
maintenance phase of the assets, the Research & Development Directorate
that leads the design phase of the assets, the Maintenance directorate that
leads the execution of the planned maintenance at the shipyards, and the
Supply Directorate that leads the procurement processes.
3. The Personnel Directorate performs the selection, education, healthcare,
welfare, development and dismissal of personnel.
4. The Finance Directorate manages de financial assets of the CN.
5. The Coast Guard Directorate is the body of the CN, through which the state
of Chile oversees the compliance with the laws and international
agreements in force, to protect human life at sea, the environment, natural
resources and regulating the activities that develop in the aquatic area of its
jurisdiction, with the purpose to contribute to the development of the
maritime nation
6. In a customer – supplier relationship is ASMAR the repair and construction
shipyard of the CN. It is in charge with executing the second and third level
maintenance of the assets and it acts as the main contractor for the fourth
level maintenance carried out in the factory or third parties. It is the
Maintainer in the LCM-team model of AMC.

Logistical Managerial

During the operation/maintenance phase, which is the longest phase of the life
cycle of the asset, the following actors play important roles and their tasks and
interaction are relevant to accomplish the goal of achieving cost effective
management control of the capital assets.
The following text is based on the CN intranet description of the roles of the
members of the organization.

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How to reduce the amount of non – correct information in Salino

1. Material Directorate :
This is the logistical organization of the material at the highest level of the
institution, which has the mission to exercise the upper management of the
material and provide the material and technological resources to the Navy,
with the purpose of contributing to the fulfillment of its permanent mission. In
short:
a. Performs the long term planning of maintenance.
b. Authorizes alteration of systems
c. Assigns resources

2. Units Recuperation Directorate (DRUA16) (also mentioned as Maintenance


Directorate):
The DRUA manages the naval unit‘s recuperation and repair processes,
with the purpose of contributing to the fleet support and to optimize the use
of the CN resources. To do this:
It establishes the repair directives, works to be executed, and defines the
resources needed. (Planning)
It executes the planned repairs assuming the command of the unit. It gives
support during the period. (Execution)
It determines the materials needs managing the procurement in order to
ensure the timely availability. (Materials management).
It gathers information and experiences from repairs, analyzes them and
proposes recommendation to optimize the process.
In short:
a. Performs the short term maintenance planning.
b. Negotiates with ASMAR.
c. Manages maintenance resources.
d. Controls maintenance.
e. Acquires materials.

3. Technical Directorates:
Theses directorates are:

16
DRUA: Dirección de Recuperación de Unidades de la Armada= Units Recupation Directorate
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The DIRISNAV manages the assets life cycle, serving as senior technical
authority. It manages the projects of replacements, alterations and
modifications; and in addition it manages the modernizations that
specifically are allocated by the DGSA, representing the institution in the
areas related to technology.
Advises and technical support to the Operational Command and technical
divisions. It manages the maintenance of 2nd, 3rd and 4th level of the
ammunition institutional. It advises the DGSA in the process of training and
technical training of the staff that operates and maintains the equipment and
systems. With the purpose of contributing to achieve the expected
availability in institutional planning, maximizing the reliability and operational
efficiency of the material and the naval systems assigned to their tuition by
the DGSA.
The DABA17 that manages the logistic functional element of supply, with the
purpose of delivering support and service of excellence to the naval forces
and to the land installations of the CN.
The DTIA has to ensure the timely processing and delivery of instructions
and information entered to the communications networks of the CN and the
availability and reliability of the systems and equipment associated. Counsel
to the Staff and CON18 in the construction and updating of the
communication planning. It is the superior technical authority on the ITC
material of the CN over its entire life cycle.
The SIAMA19 that has to program and control the implementation of the
planned maintenance system (SIMPLA) to all the maintainable material of
the organization, with the exception of the flight material of the Naval
Aviation Command, serves as administrator of the functional subsystems,
functional operations and maintenance of the SALINO system.
Disseminates in the Intranet the necessary information to optimize the
management of maintenance in the institution. Analyzes the quality of the

17
DABA: Dirección de Abastecimiento de la Armada = Supply Directorate
18
CON: Comando de Operaciones Navales = Naval Operations Command
19
SIAMA: Servicio de Información de Mantenimiento de la Armada =Maintenance Information Directorate

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data of preventive and corrective maintenance entered by users into the


SALINO system.
Calculates and disseminates in the CN Intranet the value of the operational
availability of the naval units and the Marine Corps. Keep updated the
Material Configuration of the assets which means keeping control of the
location of every piece of equipment installed on board.
In short, these directorates:
a. Establish rules.
b. Authorize and prioritize work or projects.
c. Propose and assesses alterations.
d. Manage contracts and plans.

4. Ships – Operators:
They are the capital assets of the CN, and are the central part of our
concern and the subject of AMC efforts (Stavenuiter, 2002).

a. Project managers.
b. Performs first level maintenance.
c. Demands second and third level maintenance.
d. Controls safety.
e. Presents ship to trials.

5. ASMAR: This is the shipyard of the CN. Its main mission is to meet the
requirements of maintenance and naval construction of the CN. Additionally,
it can deliver the same services to the maritime market.
The company is organized in three industrial plants located in the ports of
Valparaiso, Talcahuano -the biggest infrastructure and capability - and
Punta Arenas. Its headquarters are located in Valparaiso. In short:

a. Performs second and third level maintenance.


b. Main contractor for fourth level maintenance.
c. Demands parts.
d. Controls quality and schedule.

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6. Inspectorates (off Valparaiso). They are representative offices of DIRISNAV


in Talcahuano and Punta arenas.
a. Verifies rules compliance.
b. Represents technical directorates.
c. Performs diagnosis and proposes solutions.
d. Technical supports to ships.

At this time I would like to highlight a finding: the procurement of parts for
maintenance is performed by several Technical Directorates instead of ASMAR
which is the entity executing the maintenance actions. In my opinion, is where
there is quite an opportunity for improvement.
The following figure shows their actual relationships:

Stakeholders in the Maintenance Process

D.G.S.A.(Material Direct)
• Long term planning.
• Authorize alterations.
• Asign resources.

D.R.U.A. (Maint. Direct) D.I.S.N. – D.A.B.A - D.T.I.A.


• Short term planning. SHIP- OPERATORS
• Establish rules.
• Negociate with • Project manager.
• Authorize &prioritize works.
ASMAR. • Demand 2nd & 3r level maint.
• Propose/evaluate
• Manage resources. • Perform 1est level maint. alterations.
• Control maintenancee • Manage resources. • Administer contracts &
• Material procurement. • Control safety. planns.
• Present ship for trials. • Material procurement.

ASMAR INSPECTORATES –(OFF Valpso Insp)


• Perform 2º&3ºlevel maint. • Verify rules compliance.
• Demand parts. • Represent Technical Directorates
• Control quality &schedule. • Diagnostic & propose solutions.
9 • Technical suppot to ships.

Fig. 4 Relationships among the main stakeholders in the maintenance process

In the previous figure it can be seen that Material Directorate is the superior
authority of the logistics actors, giving its output (long term planning, authorizations
and resources) to its executor branches: DRUA, and Technical Directorates. These
organizations relate to ASMAR, which is the entity that performs the maintenance,

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How to reduce the amount of non – correct information in Salino

directly in the case of DRUA and through the Inspectorates in the case of the rest
of the Technical Directorates.
The ship, which is at the center of the figure, also it is the central and main
stakeholder of the organization because it is the reason why the others exist.
The logistical information flows through the organization from the assets where
transactional data is generated and entered into Salino according to its rules. After
being processed and stored, it is delivered as logistic information to the Technical
Directorates where the logistic analysis and decision making process are
performed, then transferred to the Material Directorate from where ILS20 policy and
instructions emerge to achieve the needed cost – effective management of the
assets. This flow of information is shown in the next figure.

LIFE CYCLE OF LOGISTIC INFORMATION

Conceptual Map
FLOW OF THE LOGISTIC INFORMATION

DATA
ELIPSE
USER SALINO
DATA ENTER TABLES
RULES FOR
“ENTERING DATA”

ILS

CONSULTANTS
MATERIAL
ADMINISTRATION
LOGÍSTIC
O. L. M. LOGISTIC
ANALISIS INFORMATION
MANGMNT (TECHNICAL (PROCESSED DATA)
DIRECTORATES)
22

Fig 5 Flow of the logistic information trough the organization

20
ILS: Integrated Logistic Support
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II Literature Review

Asset management

Capital assets as the ships of the Chilean Navy fleet are high-cost technical
systems which are capable of meeting operational requirements. (Stavenuiter,
2002). Going a little further into detail, we can say that these types of physical
assets (to differentiate them from the financial assets) also have some other
attributes that characterize them:
 Have a high degree of complexity
 Long life cycle
 High cost of acquisition, operation, and maintenance.
 Components with fast technical obsolescence.
 Its disposal has significant cost.
Other major physical assets considered as capital assets are aircrafts, railways,
power generation plants, mining facilities, power distribution systems, and so on.
Asset management is defined as a management approach to manage all
processes (specify, design, produce, operate, maintain and dispose) needed to
achieve a capital asset capable to meet the operational need in the most effective
way for the customer/user. (Stavenuiter, 2002). If we add the concept of efficiency
to this definition we mean that the asset management must be performed at the
lowest cost.
The following figure obtained from the web site of EMA Inc. illustrates the concept
of lifecycle of an asset in a very complete form, because it starts from the very
beginning of the life cycle of an asset: the identification of the need. Most authors
define the start with the design, but prior to this it is required to identify the need of
an asset. This figure also incorporates the phase of planning which also includes
the budget required.
Additionally, the figure incorporates the phase modify/upgrade or modernize the
asset, which not many authors consider.

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THE LIFE CYCLE OF AN ASSET

Fig. 6: The phases of the asset life cycle (EMA Inc web site)

The British Standard for Asset Management (PAS 51-1, 2008) defines asset
management as: ―systematic and coordinated activities and practices through
which an organization optimally and sustainably manages its assets and asset
systems, their associated performance, risks and expenditures over the lifecycle,
for the purpose of achieving its organizational strategic plan‖.
International Society for Engineering Asset Management (ISEAM) gives this
definition: ―The continuous process covering the whole lifecycle of an asset from
conceptual design through to construction/manufacture, operational use,
maintenance, rehabilitation and/or disposal. This definition lacks of the efficiency
concept (cost). (Amadi-Echendu et. al, 2010), (EAM Review Volume 1,2010).
Nicholas Hastings gives the following definition for asset management: ―it is the set
of activities associated with:
 Identifying what assets are needed.
 Identifying funding requirements.
 Acquiring assets.
 Providing logistic and maintenance support systems for assets.
 Disposing or renewing assets,
So as to effectively and efficiently met the desired objectives‖.(Hastings, N., 2009)

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These definitions imply that asset management is the management of the asset
during its whole life; that is, from the identification of the need, through
specification, purchasing/constructing, operating, maintaining and then managing
the consequences from the decision of refitting or replacing the asset before
decommissioning and disposal or recycling the components.
The four asset management objectives to be achieved are: (Stavenuiter, 2002 )
1. Specify system functionality taking into account the user needs which is the
starting point of the life cycle of the capital asset.
2. Acquire system functionality which implies all the acquisition phase that
starts with the design and ends with the construction phase.
3. Achieve cost – effectiveness. This objective is considered the most
important (Juran, 1998, Blanchard, 2008). Nevertheless, a system can only
demonstrate its cost- effectiveness during the operation phase.(Stavenuiter,
2002).
4. Last objective is justify phase out, because there are many environmental
and government regulations that have to be taken into account.

OBJECTIVES FROM NEED TO PHASE OUT

Fig 7 Asset management objectives through life cycle (Stavenuiter, 2002)

In order to achieve cost effective management control of a capital asset it would be


helpful to have an asset management control system (AMCS) than can be
applicable to any organization, to manage any asset, in any of their life cycles.
Stavenuiter (2002) proposes a conceptual design of an improved AMCS shown in
the figure:

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ASSET MANAGEMENT CONTROL SYSTEM

Figure 8 Conceptual design of an improved AMCS (Stavenuiter, 2002)

This design, called the Life cycle management systems, LCM-systems, seeks the
optimization of management control and logistics support with respect to the
functionality of the technical asset.
In this model the LCM-team, a three-foot table, plays a fundamental role in the
asset management processes because each represents the entire set of
stakeholder interested in achieving cost effectiveness: operators, maintainers, and
design authority. In order to succeed they have to work coordinately.

Fig 9 The LCM-team (Stavenuiter, 2002)

Asset management is a structured program to optimize the life-cycle value of the


physical asset by reducing the total cost of ownership, while providing the required
level of service. To carry out this program it is necessar to implement an asset
management system to minimize the total cost of owning, operating, maintaining,
and replacing the asset, while ensuring reliable and uninterrupted delivery of
quality service. (Lin, S, 2006) et al.

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LIFE CYCLE COST OF AN ASSET

Fig 10 Example of life-cycle costs elements contribution over the life cycle of an asset (Stavenuiter, 2002)

The above figure shows a fact that is often overlooked: that the major portion of the
total cost of ownership of an asset is maintenance cost rather than acquisition cost.

From the figure it can be understood that the ownership of this type of physical
asset implies management of enormous amounts of financial resources that are
spent by many actors in different departments of the organization, during a
significant period of time.

On the other hand, the goal is to manage the asset in the most cost-effective way,
which means to minimize the total cost and to try to reach the highest
effectiveness.

Since the system effectiveness can be defined as a function of performance (P),


availability (A), and dependability (D), or

SE = (P) (A) (D)

Where P constitutes the appropriate combination of system operational factors


(e.g., range, accuracy, speed); A refers to the probability the system will be
operable, when called upon, at the start of a given mission; and D refers to the
probability the system will successfully complete its mission, given that the system
is operational at the start of its mission. (Blanchard, 2008).

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There are a huge amount of actors that participate to achieve the effectiveness
desired (operators, maintainers, logistic partakers and suppliers) which work has to
be coordinated and managed.

Cost – effective asset management aims to optimize utilization, increase output,


maximize availability, and lengthen lifespan, while simultaneously minimize costs
(Baskarada, 2006)

The process of asset management is sophisticated because it is an engineering


and planning process that requires a great amount of data that has to be collected
from many different parts of the organization, then it has to be properly processed,
and delivered timely to other substantial number of actors within the organization to
be used to support the decision making process at different levels of the
organization. Furthermore, the information has to be stored for many years in order
to identify long-term trends and for forensic purposes (Lin, S. et. Al., 2006)
Asset Management is not a new field that has suddenly come out of nowhere; we
have carried out asset management activities since we started utilizing capital
assets, such as power plants, ships, buildings, or any kind of production assets.
However, changes in technology and business environment mean that asset
management is more important that before and has a new focus, among other
reasons, because growing turbulence of markets, globalization and increasing
competition, pressure for higher profitability, so Asset Management has become a
new discipline and gradually has gained the attention in many places in the world
(Telli van der Lei, et al, 2012)

From the above, it becomes clear that to carry out a cost-effective asset
management it is necessary to have a strong and reliable asset management
system supported by an information system that is able to collect data from many
different places of the organization, process it, store it and deliver the obtained
information to be used at diverse levels of the organization to be a foundation for
the decision making process.

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At this time it is convenient to state that strictly speaking there is a distinction


between two words that are usually used synonymously: data and information.
The Oxford dictionaries define Data as facts and statistics collected together for
reference or analysis and Information as data as processed, stored, or transmitted
by a computer.
In practice, managers differentiate information from data intuitively, and describe
information as data that has been processed. (Pippino, L. et. Al.2002)
For the purpose of this research we will make this distinction.

Moreover, we can distinguish three types of data: transactional data, analytical


data and master data,.
Transactional data (TD) are the elements that support the ongoing operations of an
organization. TD may include order management, purchasing, maintenance
activities. Rather than being the objects of a transaction such as customer or
product, TD is the describing data using time and numeric values.
In the realm of cost effective asset management, examples of transactional data
related to cost are all the resources spent in maintenance (materials, services, and
wages of maintainers). Transactional data related to performance are those to
calculate availability (up time and down time hours) like repair time, waiting time,
and research time.
Also related to performance are data to calculate reliability, like MTTF 21, mission
time, number of failures; and availability like Up time (operation times) and down
time due to failures (waiting time + search time + repair time)

Analytical data (AD) are the numerical values, metrics, and measurements that
provide business intelligence and support organizational decision making. AD is
characterized as being the facts and numerical values in a dimensional model,
which is a data model referred to a dimension or category of information, for
example time, location, often used in data warehousing systems (Inmon, W. 2005).
Data warehouse is defined by Kimball, R. et al, 2011 as a copy of transaction data
specifically structured for query and analysis. A further explanation will be given
ahead.

21
MTTF: Mean time to failure
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Generally, AD resides in fact tables surrounded by key dimensions like product,


account, location, and date/time. Nevertheless, AD are defined as the numerical
measurements rather than being the describing data.

Master data (MD) refers to the key organizational entities, are static and may
include data about products, configuration, employees, and suppliers. MD
represents the business entities over which the organization´s transactions are
executed. MD is typically persistent, non transactional data utilized by multiple
systems that defines the primary elements around which analytics are conducted.
(www.bi-insider.com)
Examples of master data in the realm of cost effective asset management are
configuration data (systems, installations, and components), cost of acquisition and
the base line for costs and performance.
As was mentioned before, in order to manage assets cost-effectively an enormous
amount of data – information has to be collected, processed, stored and delivered.
To illustrate this, the cost-effective structure given by Juran (1988) and presented
by Stavenuiter (2002) is appropriate to highlight some of the main items that
generate data in both system effectiveness and total (life cycle) costs. This
structure is shown in Fig.11.
COST-EFFECTIVE STRUCTURE

Fig 11 Cost-effectiveness structure according Juran, 1988 (Stavenuiter, 2002

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Data Quality

Before talking about data quality, let us review the concept of quality.
According Juran, ―Quality‖ means freedom from deficiencies—freedom from errors
that requires doing work over again (reworking) or that result in field failures,
customer dissatisfaction, and customer claims, and so on.

Many researchers have proposed definitions for data quality and have identified its
dimensions (Lin, S. et. Al. 2006). But there is not a unique set of dimensions, so a
widely-accepted data quality definition is provided by Wang, R. and Strong, D.
1996, pp6, which is centered on the user needs: ―quality data are data that are fit
for use by the data consumer‖
From the literature it seems that there is not a universal definition of data quality,
neither is there an agreed framework of data quality dimensions
The four data quality dimensions more frequently mentioned are: accuracy,
completeness, timeliness, and consistency. (Lin, S. et. Al. 2006).
The dimension is defined by McGilvrey, 2008, ―As an aspect or feature of
information and a way to classify information and data quality needs‖, but a more
concise definition is the one given by Wang, R. and Strong, D.1996 : ―Dimension is
a set of data quality attributes that represent a single aspect or construct of data
quality‖.

After the literature review performed by the author, the identification of dimensions
made by Wang, R. and Strong, D. 1996, appears to be the most complete.
Moreover, they group the twenty dimensions into a hierarchical structure with four
categories of dimensions that encompass the rest of the dimensions facilitating the
understanding and communication with data consumers in doing further research
on this issue.

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Data Quality Dimensions

Dimension Description
Believability The extent to which data are accepted as true, real, and credible.
Value-added The extent to which data are beneficial and provide advantages from their use.
Relevancy The extent to which data are applicable and helpful for the task at hands.
Accuracy The extent to which data are correct, reliable, and certified free of errors.
Interpretability The extent to which data are in appropriate language and units and the data
definitions are clear.
Easy of understanding The extent to which data are clear without ambiguity and easily comprehended.
Accessibility The extent to which data are available or easily and quickly retrievable.
Objectivity The extent to which data are unbiased (unprejudiced) and impartial.
Timeliness The extent to which the age of the data is appropriate for the task at hand.
Completeness The extent to which data are of sufficient breath, depth, and scope for the task at
hand.
Traceability The extent to which data are well documented, verifiable, and easily attributed to
a source.
Reputation The extent to which data are trusted or highly regarded in terms of their source
or content.
Representational The extent to which data are always presented in the same format and are
consistency compatible with previous data.
Cost-effectiveness The extent to which the cost of collecting appropriate data is reasonable.
Easy of operation The extent to which data are easily managed and manipulated (i.e., updated,
moved, aggregated, reproduced, customized).
Variety of data and The extent to which data are available from several differing data sources
data sources
Concise The extent to which data are compactly represented without being overwhelming
(i.e., brief in presentation, yet complete and to the point).
Access security The extent to which access to data can be restricted and hence kept secure.
Appropriate amount of The extent to which the quantity or volume of available data is appropriate.
data
Flexibility The extent to which data are expandable, adaptable, and easily applied to other
needs.

Table 1 Data quality Dimensions (Wang, R. and Strong, D., 1996)

As mentioned above, after field research they labeled the four categories of dimensions as
: accuracy the category that includes accuracy, objectivity, believability, and reputation;
relevancy the category that includes value-added, relevancy, timeliness, completeness,
and appropriate amount of data: representation the category that includes interpretability,
easy of understanding, representational consistency, concise representation; and
accessibility the category that includes accessibility and access security.

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HIERARCHICAL FRAMEWORK FOR DATA QUALITY

Figure 12 A Conceptual hierarchical framework for data quality. From Wang,R. and Strong,D. 1996.

Data as an asset.

It is trite to hear that data is a critical asset in the information age. Also it is known
that the enormous amount of data acquired and stored by organizations is growing
by leaps and bounds. (Redman, 2004). Also it is very well known the phrase ―a
decision is not better than the quality of the data used to make that decision‖. Data
is a crucial input to decision making and planning. Data are ―the facts and figures‖
associated with every aspect of an organization nowadays and indeed of every
aspect of life in the information age.
Therefore, the value of the data for an organization is out of doubt.
The definition given by Investopedia.com for Asset: ―A resource with economic
value that an individual, corporation or country owns or controls with the
expectation that it will provide future benefit‖, which is appropriate for financial
assets and physical asset as well.
If we consider this definition, we can establish, without any doubt, that the data
managed within an organization is an asset and it should be treated accordingly.
But, what should be done for that? Redman 1995, proposes four simple but
powerful practices:
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First, develop an inventory of data assets in a similar manner that it is done with
the other traditional assets of a company (employees, equipment).
The same way that someone is not able to imagine that an organization doesn´t
have the appropriate data to control its traditional assets: where are they located,
how many are they, which are their characteristics, we should think about data
accordingly. We should ask how much data do we have, where are they located,
how much are redundant, what are their quality level, what processes create the
data, how do we use the data.
Second, define what sort of asset data is. Most data is very dynamic, being
created, stored, processed, transmitted, used, and updated at very high rates. By
recognizing this dynamic nature of the data and the importance of the processes
for creating or acquiring the data, means that the processes are also a real asset.
Third, align responsibilities for data quality. If we focus on the highest level there
are three main activities related to data: acquire data, store data and using data. It
is advisable to establish a data policy in order to designate responsibility for each
activity.
Many actors within the organization are both data creators and data users. For
instance a maintainer is a user of master data of equipment (characteristics,
components) and at the same time is data creator of the maintenance activities
data (failures, time to repair, spares used). A model of data policy is shown in the
following figure:

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EXAMPLE OF DATA POLICY

Fig. 13 Model Data Policy, from Redman 1995

Fourth, establish customer – supplier relationship for data. This technique is being
used in organizations highly committed with continuous improvement. These
partnerships work well for data sharing also.
But putting into practice this partnership is not always easy, so the first thing to do
is to give the supplier clear and operable definitions of what it is required. Data
supplier often has a primary function different of taking care of the data quality, so
it is important to educate them about the consequences of incorrect data and their
responsibilities.
Finally, nothing is free: to improve in data quality we must invest resources on it.

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Applying quality principles to data


After we have revised the concepts of data quality and have stated that data are
assets, we should be able to apply general principles of quality to data.
We must apply to the data the same quality principles that traditionally have been
applied to products and services. From Juran, 1999, we know that quality means
―those features of products which meet customer needs and thereby provide
customer satisfaction and are free from deficiencies”. pp 2.2.
Keeping this in mind, we know that a product/service that satisfies the customer
needs better than the one of the competence is of higher quality, so the best
parameter to measure quality should be the customer satisfaction. Therefore, it is
mandatory to identify the customer and what does he/she needs.
There are three approaches to reach high quality applied to data:
1. Error detection and correction. The typical action is to inspect the product
for compliance of quality requisites. The easiest way is to inspect everything
and rejected items are discarded or reworked. This approach is quite
expensive. There are several techniques to detect poor quality data. For
instance, to improve data accuracy we must compare data with the real
world counterpart, but this technique does not lead to sustained
improvement because it doesn´t attack the causes of errors.
Another technique is the so called Data Base bashing that is used when
data is stored in two or more databases. Corresponding data are compared
and those that agree are assumed correct. This technique is easier and
cheaper than the previous one, especially because it can be performed
electronically. This technique also doesn‘t attack the causes of errors.
A third technique is called data editing and it consists in computerized
checking of data against constrains on the data. It is a validating action for
the value of the data at a given register.
These all three techniques are ineffective because they are performed
downstream from the creation of data values, either at storage or usage, so
the improvement you can get is not sustained.
2. Process management. The objective of process management is to detect
and get rid of the causes of errors. The steps to apply this approach are
shown in the following figure:

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Process management approach

Figure 14. Steps for Process Management Approach. Redman 1995

The focus of this approach is on processes that create the data values and then
can identify the causes that produce the errors.
3. Process design. This approach focuses on making processes less inclined
to errors. In this approach is required the participation of IT people. The
redesign of the processes may include the incorporation of some automated
forms of entering data like bar code devices.

As quality systems develop, they rely less on inspection/rework, more on process


management and ultimately on process design. (Redman, 1995)

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Data cleansing.

According to Maltetic, J. 2000, data (field) errors rates in organizations are around
5% or more (Error rate = number of erred fields/number of total fields), unless
extreme measures have been taken to avoid data errors. (Orr, K. 1998). Other
organizations are expected to have errors rates much higher (Mendoza, R., 2009).
Therefore, it is required to find a solution to clean the data that means to explore
the data sets searching for errors and correct them. To perform this task by hand is
practically impossible for any real data set, even though many companies spend
millions of dollars per year detecting and correcting errors this way. (Redman, T.
1996). Furthermore, being itself a manual process it is prone to error and
extremely expensive.
Data cleansing is the process of eliminating the errors and inconsistencies in data
and solving the object problem. (Galhardas, H. et. al., 1999).
Kimball, R., 1996, proposes a methodology for data cleansing breaking down the
process into six steps: elementizing, standardizing, verifying, matching, house
holding, and documenting.
But this approach, as the software tools for data cleansing offered by the main
companies in the marketplace for data cleansing are oriented to clean very large
customer address lists.
In a more general orientation Maltetic, J. and Marcus, A. 2000, state that a general
method for data cleansing should have these three phases:
 Define and determine errors types.
 Search and identify errors instances.
 Correct the uncovered errors.
Each of these phases constitutes a complex problem in itself. To solve them, the
characteristics of the specific task at hand must be taken into account.

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Business Intelligence BI

Even though the term Business Intelligence (BI) is quite new, the first BI systems
showed up almost fifty years ago (Power, 2004).The same systems we recognize
now as BI were also known as decision support or executive information systems
(EIS), but BI is much more than this two information systems (IS).
BI can provide decision makers with valuable information and knowledge by
leveraging a variety of sources of data, as well as structured and unstructured
information. The data and information could reside within or outside the
organization, could be obtained from multiple sources, and could be either
quantitative or qualitative (Sabherwal, R. and Becerra-Fernandez, I., 2011). Here it
is good to remember something said before in this papeer: information is data
processed. Information is a subset of data including only those data that possess
context, relevance, and purpose.
There are many definitions of BI, and the definition given by Nagask, 2004
describes it quite good:
“BI systems combine data gathering, data storage, and knowledge management
with analytical tools to present complex internal and competitive information to
planners and decision makers”.
Within this definition stands the idea that BI systems deliver actionable information
at the right time, where needed, and in the form needed to assist decision makers.
(Actionable information: provides data that can be used to make specific business
decisions. Actionable information is specific, consistent and credible. For example,
a report which shows trends in "employee retention" is important and interesting,
but not necessary actionable. However a dashboard or simple red/yellow/green
report which shows managers the turnover rate by department, accompanied by
the "top three reasons for leaving the company" is far more actionable)(Bersin,
2011)
There are many components of productive BI, but two of them have had great
recognition and application in the industry (Langseth and VIvatran, 2003): Data
Warehousing and Data Mining.

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Data warehouse.
The data warehouse (DW) is an information tool that is based on a heap of
information, both detailed and summary, which comes from data that may be found
in databases and operational data from other external sources (data external to the
company itself or old data contained in another media type, etc.). It provides a
complete solution comprising a mix of hardware, software, knowledge of the
business, and system integration capabilities. (De Pablos, et. al.1998)
A DW is a database that contains data that has been cleansed and transformed
into informational form. (Informational data: data that is extracted from the
operational data and then transformed for end-user decision maker).
Other reason to separate the stored data in the warehouse from the operational
data bases is to avoid slow down the latter.

Data Mining.
Data mining (DM) is the practice of automatically searching large stores of data to
discover patterns and trends that go beyond simple analysis. Data mining uses
sophisticated mathematical algorithms to segment the data and evaluate the
probability of future events.(Oracle, 2008).

The key properties of data mining are:

 Automatic discovery of patterns: by building models that use algorithms to


act on a set of data certain patterns can be discovered.
 Prediction of likely outcomes: many forms of data mining are predictive. For
example, a model can predict availability of a system based on past failure
rate or spare consumption.
 Creation of actionable information: data mining can derive actionable
information from large volume of data. For example, a car leasing agency
might use a model that identifies customer segment to design a promotion
on targeting high income customers.
 Focus on large data sets and databases: this type of operations make sense
performed on large amount of data. It is not possible to infer trends based
in a few data.
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Data mining is accomplished by building models that use an algorithm to act on a


set of data. Several forms of data mining are predictive. For example, a model
might predict failures of equipment based on the consumption of a specific spare.
Other forms of data mining identify natural groupings in the data. For example, a
model might identify the segment or group of all the equipment that have certain
future condition based on registered down time, spare consumption, and MTTR22.
Data can be mined whether it is stored in flat files, spreadsheets, database tables,
or some other storage format. The important criteria for the data are not the
storage format, but its applicability to the problem to be solved.
Proper data cleansing and preparation are very important for data mining, and a
data warehouse can facilitate these activities. However, a data warehouse will be
of no use if it does not contain the data that is needed to solve the given
problem.(Oracle, 2008).
As it can be seen, these tools are very valuable in the realm of assets
management because they can provide a powerful drive to managers to make
better decision since they are based on information of better quality.

SALINO

This is an ERP type information system which is defined as a system that is used
to manage and coordinate all the resources, information, and functions of a
business.
(Wikipedia).
This information was obtained from the SALINO Office and extracted from the
SALINO tutorial in the CN Intranet.
It was developed on the world class platform software MIMS Open Enterprise. This
software has been successfully installed in other navies like Australia, Canada,
and England. (MILU Sr. Consultants).

22
MTTR: Mean time to repair
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It has also been installed in many mining plants like Mantos Blancos, Anaconda,
Disputada de Las Condes, Doña Inés de Collahuasi, and other firms, all of them
highly physical assets intensive companies.
Since it is an integrated system it works with a unique catalog and unique
registers. These characteristics minimize identification problems and facilitate
global visibility of stocks.
It incorporates Integrated Technical Manuals in digital formats (CD23, ROM24, and
network) which facilitate information interchange between maintainers and material
supply systems. Having technical manuals within the system allows the users, not
just deal with stock numbers and descriptions of the items but also available are
drawings, pictures, assembly instructions, and so on.
It allows capturing 100% of the transactions in the maintenance and materials
areas avoiding the need of written reports between them. The procedure compels
to enter every maintenance activity, preventive and corrective, and every action on
material acquisition, so all the operational data produced must be entered into the
system.
It also allows measuring the logistical support effort since the acquisition of the
equipments, during operation and maintenance, until its disposal (the whole life
cycle). This is a consequence of the point stated previously, because the system is
able to trace all the resources oriented to support logistically the assets and their
subsystems. And this is a very important characteristic of the system, because it
would allow managing the assets since you only can manage what you can control
and you only can control what you can measure.
The Naval Intranet connects users all over the country and the commercial
missions abroad. The CN has implemented a robust and reliable Intranet managed
by DTIA which interconnects six LAN´s located in Iquique, Valparaiso, Con Con,
Santiago, Talcahuano, and Punta Arenas. LAN´s of Valparaiso and Talcahuano
are the biggest and strongest and are implemented on optical fiber rings. Through
a DMZ the Intranet connects with the Naval Mission at London and Washington
and also it gives access to OMEGA, the system of ASMAR. This communication
infrastructure allows the users to interact with SALINO from any unit of the CN.

23
CD = Compact disc
24
ROM = Read only memory
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The next figure shows the way the LAN´s are interconnected

SALINO ENVIRONMENT

Materials & MaIntenance


INTEGRATED SYSTEM
SALINO ENVIRONMENT
INTERCAMBIO DIGITAL DE INFORMACION

USA Local Area Network UK


(IQUIQUE)

FLEET - Molo Optical Fiber Ring Local Area Network


(CON CON)

Local Area Network


Optical Fiber Ring (VALPARAISO - VIÑA)
Darsena

Local Area Network


(PUNTA ARENAS)
Local Area Network
(TALCAHUANO) 7
(P.M.) Integrated Technical Manuals (P.W.)

Fig 15 SALINO environment (Adapted from SALINO tutorial)

In the previous figure, at the center, it is the Valparaiso LAN which is the main and
the broadest of all. It also encompasses Viña del Mar and it hosts the servers of
SALINO. The Fleet docked in Valparaiso at the sea breaker is part of this LAN.
To the right it is the Con Con LAN which encompasses the Naval Aviation and the
Marine Corps installations, located 40 kilometers north from Valparaiso.
At the bottom of the figure to the left it is Talcahuano LAN which is constructed on
a fiber optic ring. It is connected to ASMAR LAN represented by the big A, this way
SALINO communicates with OMEGA which is the ERP system of ASMAR.
The ships docked in Talcahuano at the basin are also connected to this LAN.
To the right, it is Punta Arenas LAN which encompasses the third Naval Zone
installations including units based in Puerto Williams located 3.500 kilometers
away from Valparaiso.
In the upper part of the figure, to the right and the left are represented the Naval
missions at London and Washington respectively, They are connected through a
DMZ to the servers in Valparaiso.

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MIMS has four subsystems:


 Maintenance and Operations Management
 Materials Management
 Finance Management (partially in Salino)
 Human Resources Management (partially in Salino)

Other characteristics of MIMS Open Enterprises:

Client – Server architecture, which allows the user interact with the system and to
run its own applications, leaving to the server the tasks of processing the
information and managing the net.
Clients are in MS Windows environment. This facilitates the training and the use of
the system because this operating system is very familiar to the majority of the
users.
Easy access from PC connected to the CN LAN. This allows the users to interact
with SALINO not only from his/her workstation but also from any other connected
to the CN Intranet.
User access control (User RUT25 + password). It gives the required security
standard to grant access only to authorized users.
Every transaction registers who made it and who authorized it. This characteristic
is very important for forensic purposes.
User access to the system depends upon their profile (security). Not every user
have access to all the modules of SALINO, the profiles of everyone have been
designed so the users have access just to the information they need to know for
the proper accomplishment of their job.
It is structured on five Data Bases: Catalog, Suppliers, Equipments, Documents
Control, and Personnel. The Equipment DB is the central one because it contains
all the equipments (installations) of the assets controlled by the SALINO system.
The information flows across the organization from the user level where the data is
entered, until the upper level where operators use the information generated by the
system to support their decision making processes.

25
RUT = National identification number of a person in Chile (Rol único tributario)
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HIERARCHICAL FLOW OF INFORMATION

FLOW AND VALIDATION CJA


OF INFORMATION CON
ADMINISTER COMMAND DGSA

EXECUTOR COMMAND DABA DISN CJE

EXECUTOR UNIT COMM. OF.

EX. OF
AUTHORIZE

HEAD OF DEPT.
HEAD DEPT.

OF MAT OF in Charge Of in Charge


DATA

Shop Maintainer Maintainer Maintainer 7

Fig16 Flow of information within Salino (adapted from SALINO tutorial)

This figure represents the flow of the information from its origin to the use at the
top of the organizational pyramid. The data is created and entered into the system
at the lowest level of the organization by the maintainers and technicians at the
shop, the validated in the next step by the material officer or officer in charge and
finally it is authorized at the third step of the user level by the head of department
or executive officer. This is the user level where the data information is created,
then it flows to the operators level where the information is used. The first step is
the Commanding officer following to the executor command represented by the
technical directorates finishing at the administrative command represented by the
Material Directorate and the organization command.

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III Methodology

1. - The research started with a review of SALINO to learn its philosophy, structure,
capabilities, functionalities, and general characteristics. Then, a training account
was obtained to get access to the system.
In order to learn about the system the author attended a training course on
SALINO at the Academia Politécnica Naval (APN), between March and April 2012.
The SALINO module is part of a one semester course, Job Management, given to
students in second year of the Technical Mechanics specialty, in order to develop
the competences to act as SALINO users to the future graduates of APN.
This activity was very valuable for the author because it allowed him to acquire the
knowledge of the system, and also it was important to become familiar with the
environment that people who enter data into SALINO are faced with in order to
have a closer experience about that feeling.

2. - The AMC Master Course material and the bibliography were studied in order to
have the proper tools to accomplish the objective of the research which is how to
reduce the amount of non-correct information in SALINO. It was necessary to
review aspects on asset management, data quality, and data as an asset before to
start the field research. The existence of non-correct information in the system
means that the information delivered to the users doesn´t meet the user‘s needs
and this entails a data quality problem (Wang, R. and Strong, D. 1996), so it was
important to review aspects on data quality. A detailed revision of data
warehousing and data mining concepts was made because one the users blames
was the lack of this type of capabilities in SALINO.

3. - Research on the detected flaws to corroborate or deny their existence.


In the first phase, the research was initiated by studying the alleged existing flaws
detected in the previous phase of research (Bosaans, 2009-1) in order to verify
that they really exist.

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Positive evidence was found to prove that they exist or existed. Some of them
were solved and others are waiting resolute authorization to implement the
remedy.
First alleged flaw: lack of visibility of cost of electric power consumed by the ships
when they are in Valparaiso docked to the breakwater, the entire consumption is
charged to the Supply Center which is the owner of the substation that delivers the
energy but not to the ship that consumes it (DGSA, 2009). Although this problem
deals with the lack of capability of measuring the electric power, users blames are
directed towards SALINO because the information delivered by it does not fit their
needs. A project was initiated (DOCA26, 2011) to install electrical equipment to
register the individual consumption of electricity of each ship in port in order to
reflect the cost incurred by everyone in this item. Five measurement equipment per
dock are proposed to be installed at the breakwater.
Second alleged flaw: Parts used in the RxR27 process are charged to DIRISNAV28
which manages the process but not the unit that owned the installation (DIRISNAV,
2008).
RxR is a procedure in which there exists, for some critical installations, a set of
spare installations in a ready-to-use condition stocked and administered by the
DIRISNAV. When an installation on board fails and the time for reparation exceeds
the span defined for that installation, is replaced for one of the stocked ready-to-
use installations. That is the reason why the cost of the repair is charged to
DIRISNAV which is the administrator of the equipments in this condition.
A proposal was made to Systems Engineering Directorate to change the procedure
that charges the costs of parts used to repair equipment in the RxR mode,
charging it to the owner instead of to the Directorate (SIAMA, 2010) in order to
reflect actual maintenance cost of the asset.
Third alleged flaw: Fuel consumed by units deployed on international missions is
charged to the logistical authority not to the unit. (DABA, 2009). This was fixed.
Now a credit is open to the unit for the fuel consumption (DABA, 2011).

26
DOCA: Departamento de Obras y Contrucciones de la Armada = Land Contrutions Department
27
RxR: Repair by replacement
28
DIRISNAV: Dirección de Ingeniería de Sistemas Navales= Naval Systems Engineering Directorate
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Fourth alleged flaw: in the historical maintenance information stored in the system
the parts which failure has been the most frequent cause of the installation failure
are not highlighted, impeding the logistic managers to take preventive actions on
those specific parts (DABA, 2010). Applications to Salino have been made to
highlight failures of high frequency of occurrence to advice managers to perform
preventive actions on those equipments.(DGSA, 2012).
Fifth alleged flaw: SALINO lack of capability to perform data mining which is the
process of extracting patterns from the data stored in it, to transform that data into
business intelligence.(DGSA, 2009-1). During the upgrade of SALINO actually in
progress, it is considered a module of Business Intelligence (BI) in order to add the
capability of extracting patterns from the data stored in it, to transform the
information obtained from the data into knowledge.(DGSA, 2012)
Sixth and a more generalized claim is that this arises from the Technical
Directorates and it is related to the usefulness of the information coming out of
SALINO that they need in order to support their logistical managerial decisions.
The users complain errors in the information delivered by SALINO that they use in
their decision making processes.(DGSA, 2009)
From the statement of the problem we see that we face a case related to the
accomplishing of the requirements since the system is not delivering the
information in the way that the users need it.
So it was necessary to search not only in SALINO but also and especially with the
users because according to Wang, R. and Strong, D. 1996 p.p.6 ―data quality is
defined as data that are fit for use by data consumers‖.
As this part of the research consisted in a significant proportion in interaction with
users through surveys and interviews, the first step was to get the permission for
that.
This was, by far, the toughest part of the work due to the difficulty to gain access to
the information because most of it is classified. It took a lot more time than
expected.
Thanks to the author´s condition of Retired Officer and active service professor of
the APN, permission was granted to pursue the research, previous a presentation
to the DGSA of the scope of the work and the possible benefits for the
organization.

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Then the DGSA instructed the technical directorates to appoint the personnel to
answer the surveys. The authorization was granted under the condition that the
names and ranks of the personnel who answered the surveys were not made
public and be with held by the author for custody for security reasons.
This condition had an additional benefit for the research: as the persons were told
their names and ranks wouldn´t be revealed, they were in a better frame of mind to
answer the questions and to be more sincere.
Prior to start the surveys three pilot tests were performed on the questionnaires to
be used in the surveys and interview.(Saunders, 2009). The test of the first survey
questionnaire was addressed to five technicians attending to training courses at
the APN, former members of Directorates, the test of the second survey
questionnaire was addressed to three technicians of the SIAMA, and the test of the
interview questionnaire was addressed to four technicians attending training
courses at APN, former crew members of ships of the Fleet.
These tests allowed to the author to refine the questionnaires to be sure that the
respondents did not have problems to answer the questions.
On the other hand these tests served the author to get a certain previous
evaluation of the questions validity.
This first survey was conducted to determine, according user opinion, which quality
data dimension is the most relevant for the quality of logistic information that they
use to support their decision making processes. The hierarchical data quality
dimension model proposed by Wang, R. and Strong, D. 1999 was used (Fig.12).
This survey was directed at 83 people pertaining to Technical Directorates
(Material, Systems engineering, Maintenance, Repairs, and Technical
Inspectorates) during May and July.
These persons are engineers and technicians who use the information delivered
by SALINO, analyze it and make decisions based on it. They also prepare reports
for higher ranking engineers to perform analysis and decision making of a higher
level. So they are the first line user of the information. That is the reason they were
chosen to answer the first survey.
The objective of the survey was to find out which is the most important quality data
dimension for the user to support their job.

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It had a single question: ―After reviewing the description of the twenty basic data
quality dimension and the way they are grouped to conform four: accuracy,
relevancy, representational and accessibility, which of this is the most important to
support your decision making process?‖
Since the variable to be measured is an opinion, an investigative question was
used (Saunders, et. al,2007). The author´s interest was to find out which data
quality dimension is viewed by the users as the most important in order to focus his
research on the occurrences of errors in that dimension.
The search was narrowed to a single dimension because the time spent in
administrative paperwork to gain access to the information did not leave enough
time to broaden the scope.
Sent to them was the description of the twenty dimensions of the model and the
form they are grouped into four higher level dimensions: accuracy, relevancy,
representational and accessibility. They were asked to indicate which the most
important data quality dimension is, in order to support their decision making
processes. Only 64 answered the survey. The rest never gave an acceptable
excuse. The position of the participants, the questions and the result are shown in
the Appendix A and a summary is shown in the next table:

SEARCH OF THE MOST IMPORTANT DIMENSION

Table 2: Result of survey 1: Most important dimensions.

The purpose of this survey was to determine which data quality dimension was
more important for the users to support their decision making processes. Hence,
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the work will focus in this dimension to continue the research in order to quantify its
frequency and the causes of its occurrence.

With this information the second phase of the research was started. This time the
search effort was oriented to find out more massive errors in the system and to try
to find a way to reduce them in order to improve the information that supports the
decision making process.

To do this, a second survey was conducted. This time the purpose of the survey
was to determine what part of Salino processes presented more accuracy errors.
The survey was directed to twenty technicians of the Maintenance Information
Service to identify in which of the logistics modules of Salino are found the higher
number of accuracy errors. The modules are: Work orders (WO), Task program
(TP), Group Work (GW), or Application Parts List (APL).
This Service was selected because it is the organization within the CN that revise
in a closer way the maintenance information generated by Salino.
The Job participants, the questions and the results of the survey are listed in the
Appendix D and a summary is shown in the table 3

SEARCH OF MODULE WITH THE HIGHEST NUMBER OF ERRORS

Table 3: Result of survey 2: Most frequent module with errors.

The objective of this survey was, as stated, to find out what part of Salino
processes presented more accuracy error, based on the opinion and experience of
the persons who use the information.
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The survey had two questions:


Question one: - In your opinion, which module of Salino in the maintenance area
shows the highest amount of accuracy errors?

This investigative question (Saunders, et. al., 2007) was intended to find out the
opinion of the users about the module of SALINO that presents the highest number
of accuracy errors, in order to know where to perform the next step in the search
process which is the measurement.
Question two: Designate a register, in the module you chose, you think is the most
frequently erroneous, was intended to know about the users opinion what registers
within the module selected were wrongly filled more frequently. The reason for this
question was to know which registers to use in the application to be developed in
the next step to perform the measurement
This survey was also performed via Internet, between June and July.
The result of this survey stated widely (95% of the users opinion) that the module
of work orders was the one that showed the highest amount of accuracy errors
detected at Salino.
Even though, we need to be sure of the results of this survey and check the
opinions of the expert against the facts: the positive evidence, to measure the
actual number of errors.
To do this, an application was developed to run in Salino in order to verify and
quantify the information delivered by the experts.
In this application the seven most mentioned registers of the Work Order module
as showing errors most frequently were checked:

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Table 4 : Most mentioned registers with errors

Register Relative %
frequency
Work order status 5 25
Overscheduled 3 15
Equipment status versus failure effect 3 15
coherence
Has CN status? 2 10
Has task assigned? 2 10
Has text in the task? 2 10
Has extended text in the Work Order? 3 15

The application was developed by the author with the assistance of two ITC
technicians of the Maintenance Information Service (one systems analyst and one
programmer).
This application was run over the data of the WO currently open, which means
pertaining to maintenance activities in progress of five assets of the Fleet docked
at Valparaiso at the time of the search. (Due to the confidentiality of the information
the assets are identified as Case 1, Case 2, Case 3, Case 4 and Case 5).
The objective of this application was to measure the exact amount of accuracy
errors found in a specific module of SALINO at a given moment on real assets in
order to:
a) Measure and corroborate or deny the opinion of users.
b) Search for the causes on a validated real scenario.

The detailed result of the application is shown in Appendix C and a summary is


shown in the next table.

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ERRORS IN OPEN WORK ORDERS

Table5: Result of application: Number of errors in open W.O.

With this surprising result, taking into consideration that data error rates in
organizations are around 5% (Orr,K., 1998), the next step in the research was to
try to find out the cause for the so high rate of errors.
A semi- structured face-to-face individual interview (Saunders, et. al., 2007) with
two technicians of each asset was performed. During these sessions the
interviewees were asked to explain: their job on board, the priority of them, the way
they relate with Salino, how friendly they find the procedure and the interface to
enter the data, and their knowledge about the use and importance of the data they
enter in Salino.
The objective of these interviews was to find out what do the people in charge of
entering the data into SALINO have to face when they perform their task, in order
to discover what aspects difficult their job or are seen as problematic so can lead
to commit error, as a way to come up with the root causes of the errors detected in
the search.
There were performed ten one-hour individual interviews with ten people (two per
asset measured with the SALINO application)
The questions asked were:
Question one: Explain your job on board: identify the tasks. Intended to know how
the person perceived their work (amount and relevance) and by listing their tasks

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clarify all the activities they have to do. The answers showed they are used to
haveing their working day full of activities.
Question two: Prioritize them (five). Intended to know what priority had for each
interviwee the task of entering data into SALINO. No one mentioned it in the first
place, 2 in fourth place, 6 in fifth place and two didn‘t include it in the first five
priorities.
Question three: Describe how friendly or tough you find the prodedure and the
interface to enter the data in the W.O. module. Intended to obtain the opinion of the
interviewees about the friendliness or usability of the system when entering the
data into the W.O. module. Two answered they feel just ok with the task even it is
time consuming, the rest alleged the procedure is complex, time consuming, and it
has too many registers to fill.
Question four: What do you know about the use of the information generated by
the data you enter and how important do you think it is this data, Why? Intended to
know the interviewees opinion about the importance of the task they do and what
are consequences of performing the task in an unaccurate way. Most mentioned
problems leading to errors were lack of solid knowledge of the use and importance
of the data and too many registers to fill in (nine mentions). As a result of these
interviews a set of seven problems that could cause commiting errors was stated
.
This was done as follows: during the interviews, every time a problem that can lead
to commit errors raised or was mentioned, that problem was annotated.
In the case that the situation narrated in the answer involved a problem but was
not explicitly stated as one, the interviewer asked to the interviewee if he
recognized that situation as a problem. If so, it was annotated.
Problems detected were grouped in three categories: Organization related, System
related and People related.

The problems identified were:

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Table 6: Problems leading to errors mentioned

Problem that can lead to cause errors Times % over total Category
mentioned problems Of Cause
Lack of time 7 14,3 Organization
Other jobs more important or more urgent 5 10,2 Organization
Procedure quite complex 8 16,3 System
Many registers to fill in 9 18,4 System
Too time consuming 7 14,3 System
Lack of knowledge about use and importance 9 18,4 People
of data.
Lack of training 4 8,1 People

One week after the interviews ended, an in-depth group interview was held.
The objective of this interview was twofold: first, to get a consensus about the
problems detected from previous interviews, and recognize them as causes of
errors entered in SALINO, eliminate those not agreed or add others not already
included; and second, based on this information (the causes agreed), find out the
so called root-causes, basic or underlying causes of errors through a group
discussion facilitated by the author who acted also as interviewer.
It was very difficult to get permission for this meeting and then to procure the time
frame in which the participants appointed could attend to it. But finally, it was held
on September on board.
To achieve the objective of the interview the Ishikawa (Fishbone) Diagram
technique was used. (Ishikawa, K., 1986), (Ishikawa, K., 1991)
We started with a ten-minute briefing to explain the subject and the method.
Then a blank diagram was presented on a flipchart to the interviewees. In the head
box was then written the Effect in the most concise form: Errors entered into the
W.O. module of SALINO.
The next step was to write down the categories selected in the previous interviews:
Organization, System and People.
The next step was to generate the causes in each category. This was done using
Brainstorming (Brainstorming: ―is a group or individual creativity technique by
which efforts are made to find a conclusion for a specific problem by gathering a
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list of ideas spontaneously contributed by its member(s)‖. The term was


popularized by Alex Faickney Osborn in the 1953 book Applied Imagination)
(Wikipedia).There were generated seven causes already stated in the previous
interviews, no one was eliminated neither no one was added.
Then, following the same procedure fourteen sub causes were generated:
The sub causes generated are listed and explained in table 7

Table 7: Root causes for accuracy errors in WO module

Category Cause Sub cause Explanation


People Lack of Course too The course on SALINO at APN is a module
training short within the subject Job Management and there
are few hours dedicated to SALINO, so the
competences acquired are not adequate.
People Lack of Lack of There are no other courses , so the people
training continuum just keep the skills on the modules they use
training most often and forgot the rest.
People Ignorance Poor Users are not informed properly about the use
about use & motivation of the data and the tremendous impact that a
importance wrong decision can cause because a non-
of data correct information due to inaccurate data.
People Ignorance Poor Users don´t have continuous information
about use & communication feedback about accuracy errors so they think
importance they are doing well.
of data
System Procedure Poor interface Register are not in the screen in a logical
too complex design sequence they have to be filled, so the users
have to go back and forth to enter the data.
System Procedure Too many There are many instructions to follow to
too complex rules correctly enter the data.
System Procedure Authorization People who authorize transactions use too
too complex delays much time to accomplish the task.
System Too many Extended text There are almost one hundred registers to go
registers through. There are many extended text that
are to be filled according the user criteria. This
slows down the process and as they don´t
follow a standardization they lead to errors.
System Time Too much The amount of information to enter is so much
consuming information that it doesn´t motivate to dedicate so much
time.
System Time Navigation Users have to go through ten screens to enter
consuming through the data, which is frustrating. To navigate the
screens ship is priority
Organization Other tasks Sailing During sailing periods, there is no time
more available for entering data into SALINO
important because other tasks have higher priority.
Organization Other tasks Operations Perform operations is also a priority
more
important
Organization Lack of time Exercises Users have to participate in many exercises,
at port and at sea, so the time left for
administrative work is scarce.
Organization Lack of time Naval duties Also these activities demand too much time so
the time to enter the data is little.

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Then, with the same procedure the five most relevant causes were selected.
So the selected sub causes are:
a. Lack of continuum training
b. Poor motivation
c. Poor interface design
d. Extended text
e. Navigation through screens

They can be grouped in two:

a. People related: Lack of motivation – training


b. System related: procedure - interface too complex
The finished Ishikawa (Fishbone) Diagram is shown in Fig. 17.

CAUSES FOR ACCURACY ERRORS IN WO MODULE

Ishikawa (Fishbone) Analysis Diagram for Error Causes


in SALINO
Sailing

Lack of Course too short Other tasks


training More important
Lack of continuum
training Operation

Poor motivation Exercises


Ignorance about
ERRORS Use & importance Lack of
Poor communication time
ENTERED Naval duties
IN
W. O. OF Poor interface design
Procedure too
SALINO complex
Too many rules Authorization
delays

Too many
Extended text
registers

Too much information


Time
consuming

Navegation through screens

Issued at the in-depth group interview

Fig. 17 Causes for accuracy errors in WO module


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IV Results.

First of all, alleged defects where demonstrated to be veracious, i.e., positive


evidence of their existence was obtained:
Lack of visibility of electric power costs of ships in Valparaiso is due to the lack of
individual measurement instruments.
Parts cost of equipments in RxR mode are not reflected in ship´s costs.
Costs of fuel consumption in international missions were not charged to the unit.
This is already fixed because now there is a credit added to the fuel account of the
ship equals to the amount delivered.
Historical maintenance information doesn´t discriminate parts with high rotation for
frequent failures of equipment. This problem existed but it has been solved through
applications developed.
The lack of capability to perform pattern extraction from the data stored is been
solved with the new updated version of the software to be installed that will add BI
capabilities: data warehousing and data mining.
The lack of usefulness of the information delivered by SALINO was corroborated
by searching on the system and the users of the organization.
Users of five directorates were asked their opinion about the most important data
quality dimension to support in proper form their decision making processes in their
jobs and 87,5 % of them answered that Accuracy is the most relevant, followed by
Relevancy with 7,8% Accessibility with 3,1% and Representational with 1,6%.

DATA QUALITY DIMENSION IMPORTANCE

Data quality dimention


Accuracy Relevancy Accesability Representationa
8% 3% 2%

87%

Fig. 18 : Results of Survey 1 weighting the dimensions importance

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In order to find out where the highest number of errors is, to focus the search
there, a survey to users of SIAMA showed that 95% of them said that the module
with highest amount of errors is Work Order (WO) and the rest opined that the
module Task Program has more accuracy errors. None of them thought that the
other modules (Group Work and APL) have more errors.
To confirm or deny this, an application was developed and run over the total WO
opened of five ships. The number of WO with errors is shown in the figure 19.

NUMBER OF WO WITH ACCURACY ERRORS

Amount of WO with errors


150 128

100 77
66
Amount of WO
50 23 26
with errors
0
Case Case Case Case Case
1 2 3 4 5

Fig. 19: Results of measurement: Amount of WO with errors

The rates of errors per ship are showed in the figure 20.

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RATES OF ACCURACY ERRORS PER SHIP

Rate of errors
66.1%
70.0%
60.0%
50.0% 40.2%
39.9%
40.0%
30.0% 24.0%23.2%
Rate of errors
20.0%
10.0%
0.0%
Case Case Case Case Case
1 2 3 4 5

Fig. 20: Results of measurement: Rates of errors

The work continued searching for the causes of this amount of errors.
The semi structured in-depth individual interviews held with the people who enter
the data established seven problems that lead to cause errors that are listed in the
table 8:

Table 8: Problems that lead to errors

Lack of time
Other jobs more important or more urgent
Procedure quite complex
Many registers to fill in
Too time consuming
Lack of knowledge about use and importance
of data.
Lack of training

The relative occurrence of each problem in the interview is shown in the figure 21

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Relative occurrence of problem

Relative occurrence of problems

Lack of time

Other jobs more


important or more
urgent
8.10% 14.30%
Procedure quite
complex
10.20%
18.40%
Many registers to fill in
14.30% 16.30%
18.40%
Too time consuming

Lack of knowledge
about use and
importance of data.
Lack of training

Fig 21: Results of individual interviews: problems leading to errors

Finally, in an in-depth group interview using a brainstorming technique, the


fourteen root causes of accuracy errors in the WO module of SALINO were
determined using the Ishikawa (Fishbone) Cause-Effect Method.
The five most relevant were selected to be:
a. Lack of continuum training
b. Poor motivation
c. Poor interface design
d. Extended text
e. Navigation through screens

They were grouped in two:

a. People related: Lack of motivation – training


b. System related: procedure - interface too complex

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V Discussion
Even though the lack of visibility in electric power costs for the ships in Valparaiso
exists, it is due an external problem of SALINO. And it has a way to be solved.
The parts cost in RxR mode of maintenance is a procedure problem because the
costs are wrongly charged to DIRISNAV instead of to the ship, so the operation
cost is affected.
The same situation occurred with the cost of fuel consumed in international
deployments which is already fixed.
Related to the SALINO capability to perform some kind of analysis on the data
stored to help the managers take preventive actions, the applications developed
are in the proper direction. Even though the implementation of the updated version
of the Ellipse software will add more capabilities of data analysis, the models have
to be constructed and the participation of users is crucial.
In order to try to narrow the scope of the research to be realistic with the time
available, users were asked for the most relevant data quality dimension for the
decision making process.
87,5% of the users surveyed chose accuracy as the most important aspect of the
data they used. The rest of the data quality dimensions felt far away from
accuracy: Relevancy got 7,8%, Accessibility 3,1% and Representational just 1,6%.
These indicated that the major efforts should be directed towards reducing or
ideally eliminating accuracy errors, because they are perceived as important to
support the user jobs.
When the search went to SIAMA to find out where the accuracy errors were and to
measure their occurrence it was found that 95% of the members of SIAMA
selected the WO module and only one person, equivalent to the 5%, opined Task
Program module. This is explicable because WO module is the broadest module
and the most used. The registers to be measured selected by the users obtained
very similar preferences (between 10% and 15%) and only register WO status
showed 25%, so it was decided to measure those registers.
The measurement performed gave results quite suppressive. The amount of errors
found was quite high if we consider some standards given in literature (Orr, K.,
1998).

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The error rates measured indicate that we are far away from standards so
something has to be done to improve this situation.
In the search for causes of this high amount of errors there were detected the five
most relevant on the user opinions and they turned out to be:
a. Lack of continuum training
b. Poor motivation
c. Poor interface design
d. Extended text
e. Navigation through screens

All of them are feasible to reduce or eliminate. The author studied the subject and
came up with the solution proposed:
User related causes (a and b) have to be faced through training, oriented to
motivate and to deliver updated knowledge and skills on SALINO.
System related causes ( c, d, and e) have to be faced through a modification
project.
Both of them will be explained in the Recommendation Chapter.

VI Conclusions

The existence of flaws in Salino that produce non - correct information was proved:
there are errors in the data entered to the system. The most relevant type of error
in terms of frequency and importance was identified and it turned to be accuracy
errors. This type of error was viewed by the users of information the one that the
most affected them in their decision making processes.
The amount of accuracy errors was measured and it turned to be quite high
compared with standards.
The root causes were deducted from the interviews with the operators who enter
the data and can be summarized as: lack of motivation and training and the
difficulty in following complex procedures for entering the data in an interface with
a great amount of records to fill. Just to create a WO the user has to go through 15
screens.

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VII Recommendations

The following actions are recommended:

a. To update and rationalize the rules for entering data to Salino


b. Simplify the interface, trying to automate more the task.
These two actions should be faced through a software development project that
after the classical phases of specifications requirements and analysis could
construct and implement a modernization to the system that was designed and
implemented almost twenty years ago. These improvements should update
procedures that show to be complex or that delay operation like to rationalize
authorization procedures. Also the interface has a lot of room for improvement. For
instance, the current WO module has fifteen screens through which the user has to
navigate. This could be replaced, with not too much effort, for only one screen with
ten or twelve tabs.
Another improvement to reduce the errors is to replace the extended text registers
by registers filled with predefined texts in tables.

A deep analysis should come up with improvements that could have a great
positive impact in the reduction of errors.

c. Train and motivate the personnel in charge of entering data. Ensure that
they are aware of the use and the importance of the information
generated by the data they enter as well as the consequences of errors
in the data entered.
These training activities have to have a double objective:
One objective is to refresh the knowledge of SALINO and to give the users the
necessary skills to operate it in a comfortable manner.
The other objective is a motivational objective: users have to be taught about the
role of SALINO in the asset management in the CN, It also should be highlighted
the importance of every single piece of data that is entered into the system and the
consequences of the errors.

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d. Develop an application to detect in line the errors and inconsistencies in


the open WO, checking all the registers so they can be corrected on a
daily basis in order to keep the system as free of errors as possible.
This application should be similar to the one developed for this research but
covering all the modules (not only WO) all the registers and all the assets.
This should be an application to run batch at night to avoid slow down the system.

VIII Cost – benefit analysis

Objective: To perform a cost-benefit analysis of the implementation of the


recommended actions to diminish the amount of accuracy errors in the data
entered into the Salino system.

Specific actions to be taken :

a. To update and rationalize the rules for entering data.


b. Develop a modification to simplify the interface
c. Develop a training plan to deliver competencies and motivate
personnel.
d. Execute the training plan
e. Develop an application to detect erros on line.

Costs:

Action a: Not to be considered because there is a work in progres regarding


this issue when the system will be upgraded to a new version. Some
activities are considered in costs of Action b.

Action b:
 40 person hours Analysis
 120 person hours programming
 20 person hours testing

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Action c:
 160 person hours an Expert in Salino and in motivational sciences

Action d:

 30 courses, one week duration (40 hours) per semester.

Action e:
 40 person hours Analysis
 120 person hours Programming
 20 person hours testing

Person hour = $20.000 (Chilean pesos)


1 week course = 40 person hours + $200.000 course
material

Cost summary

Action Cost
Action a No cost
Action b $ 3.600.000
Action c $3.200.000
Action d $30.000.000
Action e $3.600.000
Total $40.400.000
Benefits:

Action a: The rationalization of rules should diminish the amount of


errors in 10%

Action b: The simplification of the interface should diminish the


amount of errors in 10%

Action c: Do not produce any effect on errors

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Action d: the training and motivation should diminish the amount of


errors in 30%.

Action e: The application should diminish the amount of errors in 20%

The implementation of the actions recommended should diminish the


amount of errors in 70%.

Given the enormous amount of errors detected, a decrese in a 70% is a


great contribution to the improvement of the quality of the information used
to support the logistical managerial decision making.

BONUS:

In addition to the enormous benefit described in the previous paragraphs, there is


another one related to the operational availability of the Fleet.
We know that the operational availability (Ao) defined as ―the probability that a
system or equipment, when used under stated conditions in an actual operational
environment, will operate satisfactorily when called upon‖ (Blanchard, 2008) and it
is expressed as

MTBM
𝐴𝑜 =
MTBM + MDT
Where:
MTBM=mean time between maintenances
MDT= mean maintenance downtime
But the MDT is given by the sum of active maintenance time plus administrative
delay time plus logistical delay time. This last is the result, among others, for
waiting for spare parts to become available.
On the other hand, during the Seminar on Asset Maintenance held in 2009, two
lecturers stated that a significant incidence (not specified quantitatively at that time)
on the MDT due to lack of spare parts was caused for wrong data from SALINO.
(DGSA, 2009-1).
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So the expected improvement in the data quality of SALINO will have necessarily a
repercussion in the diminishing of MDT and consequently in the increasing of A o
and a positive impact on the operational readiness of the Fleet .
Due to the lack of time, it was not possible to quantify this correlation, but it is an
interesting topic for further research.

Summary: the implementation of the actions recommended will produce a


decrease of 70% in the total amount of errors in the data entered in Salino at a
total cost of $40.400.000. (Chilean pesos) (€62.800).
This is considered highly cost- effective.

IX Suggestion for further work

a. The correlation between the improvement of data quality in SALINO and the
improvement in the Operational Availability of the Fleet, as a result of the
diminishing of MDT, mentioned in the previous section should be a gripping
topic for further research.

b. During the research, especially during the activity of interviews, some other
problems were detected: there are missing registers in historic data.
Also it was found that several equipments that were replaced did not were
updated in the data base, so the data was not consistent.
Further research should be performed to investigate about performing data
cleansing or other techniques to ensure a better data/information quality.

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X References

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Documents

(SALINO) Manual de Salino (1999) Salino Manual


(DABA, 2009) Informe de Costos Operacionales Operational Costs Report
(DGSA, 2007) Resultado de auditoría de datos en Salino data audit report.
Salino.
(DGSA, 2008) Directiva DGSA Nº 400/10 de ago Directive Material
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SALINO
(SIAMA, 2011) Informe anual de actividad de Salino annual activity
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2008) 2007 year 2007
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1) mantenimiento de activos. maintenance debriefing
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mejoramiento de stocks. improvement.
DOCA, 2011) Anteproyecto modificación Modification of electrical
distribución eléctrica molo. distribution at sea breaker
Project
SIAMA, 2010) Proposición de modificación de Procedure modification
Procedimiento. proposition
(DABA, 2011) Informe de costos operacionales. Operational cost report
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AMC como curso regular. Master in AMC course as
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(DGSA, 2012) Plan de actualización de versión de Version update plan for
SALINO Salino

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XI Appendices

Appendix A Survey 1

Objective: to determine the most important data quality dimension from the point of
view of the decision makers.

Participants: Engineers and technicians of the Material and Technical Directorates.

Question: After reviewing the description of the twenty basic data quality dimension
and the way they are grouped to conform four: accuracy, relevancy,
representational and accessibility, which of this is the most important to support
your decision making process?

Material delivered:

Description of the twenty data quality dimensions

Dimension Description
Believability The extent to which data are accepted as true, real, and credible.
Value-added The extent to which data are beneficial and provide advantages from their use.
Relevancy The extent to which data are applicable and helpful for the task at hands.
Accuracy The extent to which data are correct, reliable, and certified free of errors.
Interpretability The extent to which data are in appropriate language and units and the data
definitions are clear.
Easy of understanding The extent to which data are clear without ambiguity and easily comprehended.
Accessibility The extent to which data are available or easily and quickly retrievable.
Objectivity The extent to which data are unbiased (unprejudiced) and impartial.
Timeliness The extent to which the age of the data is appropriate for the task at hand.
Completeness The extent to which data are of sufficient breath, depth, and scope for the task at
hand.
Traceability The extent to which data are well documented, verifiable, and easily attributed to
a source.
Reputation The extent to which data are trusted or highly regarded in terms of their source
or content.
Representational The extent to which data are always presented in the same format and are
consistency compatible with previous data.
Cost-effectiveness The extent to which the cost of collecting appropriate data is reasonable.
Easy of operation The extent to which data are easily managed and manipulated (i.e., updated,
moved, aggregated, reproduced, customized).
Variety of data and The extent to which data are available from several differing data sources
data sources
Concise The extent to which data are compactly represented without being overwhelming
(i.e., brief in presentation, yet complete and to the point).
Access security The extent to which access to data can be restricted and hence kept secure.
Appropriate amount of The extent to which the quantity or volume of available data is appropriate.
data
Flexibility The extent to which data are expandable, adaptable, and easily applied to other
needs.

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Grouped data quality dimensions

Result of the survey

Professional Most important


Job position
level dimension
Material directorate
Operative Planning Engineer Accuracy
Financial planning Engineer Accuracy
Projects & contracts Engineer Accuracy
Head Div 210 Technician Accuracy
Head Div 220 Technician Accuracy
Head Div 230 Technician Accuracy
Head operations dept. Engineer Accuracy
Naval material div Engineer Accuracy
Naval Material assistant Technician Accuracy
Configuration control Engineer Accuracy
Finances dept. Engineer Accuracy
Management control div Technician Accuracy
Supply div Technician Relevancy
Monetary resources Engineer Accuracy
Non monetary resources Engineer Accessibility
Techn. Directorate coord. Technician Accuracy
Budgeting div Engineer Accuracy
Budget assistant Technician Relevancy
Insurance div Technician Accuracy
Transport div Technician Accuracy
Acquisition portal Technician Relevancy

Systems Engineering
Directorate
Head Frigate project L-M Engineer Accuracy
Asistant Frigate proj L-M Technician Accuracy
Head Frigate project 22 Engineer Accuracy
Asistant Frigate project 22 Technician Accuracy
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Head marit unit proj Engineer Accuracy


Assist. Maritime unit proj Technician Accuracy
Head Av. & M C proj Engineer Accuracy
Assit. Av & MC proj Technician Accuracy
Monitor LPC, LPM Technician Accuracy
Monitor LSG Technician Accuracy
Monitor LEP Technician Accuracy
Weapon system div Engineer Accuracy
TP & A/S war Technician Accuracy
Long term planning maint. Technician Accuracy
Fire control &Sonar div Engineer Representational
MC weapons Technician Accuracy
Maritime units weapons Technician Accuracy
Electronics & Nav div Engineer Accuracy
Electronic war div Technician Accuracy
MAE & ECM div Technician Accuracy
Radars div Technician Accuracy
Command & Control div Engineer Accessibility
Units Recuperations
Systems analysis 1 Technician Accuracy
Systems analysis 2 Technician Accuracy
Systems analysis 3 Technician Accuracy
Data Link Engineer Accuracy
Diesel plan Technician Accuracy
Gas turbines 1 Engineer Accuracy
Technician Technician Accuracy
Electricity program Technician Relevancy
Aux machinery program Technician Accuracy
Missiles program Engineer Accuracy
Boilers program Technician Accuracy
Automatic control Technician Accuracy
Stability div Technician Accuracy
Alterations div Engineer Accuracy
Platform area div Technician Accuracy
Finance div Technician Accuracy
Inspectorate
Artillery div Technician Accuracy
Digital documentation Engineer Relevancy
Telecommunication div Technician Accuracy
Maintenance Directorate
Weapons planning Technician Accuracy
Engineering planning Engineer Accuracy
Submarines planning Technician Accuracy
Maritime units planning Engineer Accuracy

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Summary of the results

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Appendix B: Survey 2

Objective: To find out what module of Salino in the maintenance area shows the
highest number of accuracy errors.

Participants: Engineers and technicians of the Maintenance Information


Directorate.

Questionnaire:
1.- In your opinion, which module of Salino in the maintenance area shows the
highest amount of accuracy errors?

2.- Designate a register , in the module you chose, you think is the most frequently
erroneous.

Results of the survey


Job position Professional Module Register
level
Head planning dept. Engineer Work Order WO Status
Ass. Plan. dept Technician Work Order Equip stat/f.ef
Head oper. Dept Engineer Work Order Has text ext
Ass. Oper. Dept Technician Work Order Overscheduled
Artillery area Engineer Work Order Has text
Maneuvering area Technician Work Order WO Status
Navigation area Technician Work Order WO Status
Electronic area Engineer Work Order Has task asig.
Telecomm. Area Technician Work Order Has text ext
Project mngr. Technician Work Order Overscheduled
Scorpene proj Engineer Work Order WO Status
Electricity area Technician Work Order Has text ext.
DC area Technician Work Order Has text
Propulsion area Technician Work Order Equip stat/f.ef
MC area Technician Work Order Has CN status
Control Dept. Engineer Work Order Has CN Status
Finance Dept. Technician Task Equip stat/f.ef
Program
Frigates area Technician Work Order WO Status
Submarines area Engineer Work Order Overscheduled

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Summary of the Results

Registers most refered

 Work order status


 Overscheduled
 Equipment status/failure effect
 Has CN Status?
 Has task assigned?
 Has text?
 Has extended text?

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Appendix C: Application run

Objective: To detect how many errors exist in seven selected registers of the Work
Orders open.

Participants: Five ships of the Fleet

Registered checked: Work order staus, Overscheduled, equipment status/failure


effect, has CN status?, has task asssigned?, has text?, has extended text? Errors in entry
data or
modification of
W.O.
CASE 1
Type of failure
Has CN status?
CASE Nº 1 OPEN W.O.: 321 AMOUNT OF ERRORS:128

Work Order
Status
Has extended
text inthe W.O.?

End of reapir due

Equipment status/
Failure effect
Has text in the
task?

Has task
assigned?

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How to reduce the amount of non – correct information in Salino

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How to reduce the amount of non – correct information in Salino

Errors in entry
data or
modification of
W.O.
CASE 2
Type of failure
Has CN status?
CASE Nº 2 OPEN W.O.: 96 AMOUNT OF ERRORS:23

Work Order
Status
Has extended
text inthe W.O.?

End of reapir due

Equipment status/
Failure effect
Has text in the
task?

Has task
assigned?

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How to reduce the amount of non – correct information in Salino
Errors in entry
data or
modification of
W.O.

Type of failure
CASE 3
Has CN status?
CASE Nº 3 OPEN W.O.: 112 AMOUNT OF ERRORS:26

Work Order
Status
Has extended
text inthe W.O.?

End of reapir due

Equipment status/
Failure effect
Has text in the
task?

Has task
assigned?

CASE 4
CASE Nº 4 OPEN W.O. : 164 AMOUNT OF ERRORS : 66

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Errors in entry
data or
modification of
W.O.

Type of failure
CASE 5
Has CN status?
CASE Nº 5 OPEN W.O.: 115 AMOUNT OF ERRORS : 76

Work Order
Status
Has extended
text inthe W.O.?

End of reapir due

Equipment status/
Failure effect
Has text in the
task?

Has task
assigned?

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How to reduce the amount of non – correct information in Salino

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Appendix D: Face-to-face interviews

Objective: To find out the root causes of the great amount of accuracy errors found
in the process of entering data in the W.O. module of Salino.

Participants: Two operators of each ship investigated with application developed


by the researcher.

Question aked :

1. Explain your job on board: identify the tasks.


2. Prioritize them.
3. Describe how friendly or tough you find the prodedure and the
interface to enter the data in the W.O. module.
4. What do you know about the use of the information generated by the
data you enter and how important do you think it is this data, Why?

Job position Professional level Ship


Power generation Technician Case 1
Navigation system Technician Case 1
Propulsion system Technician Case 2
Power generation Technician Case 2
A/A weapons Technician Case 3
Propulsion system Technician Case 3
Auxiliary machinery Technician Case 4
Data link system Technician Case 4
Auxiliary machinery Technician Case 5
Propulsion system Technician Case 5

Problems detected

1.- Lack of time, too many things to do.


2.- Other jobs more important or mor urgent
3.- The procedure is quite complex
4.- Many registrers to fill in.
5.- Too time consuming
6.- Lack of knowledge about the use and importance of data
7.- Lack of training

Problems 3, 4,and 5 are highlighted because a generalized claim was : ― the


amount of data to be enered to the system is too high, there are too many registers
to be filled in, and the way to classify is to bothersome‖

The interviewees said that, after a determined limit, due to the lack of time,
they opt for leaving registers empy by selecting ―accept‖ or ―Cancel‖ in the default
options.
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Appendix F: Mincom Ellipse

Mincom Ellipse is a fully integrated Enterprise Asset


Management (EAM) application suite providing
complete visibility and management of assets to the
capital-intensive industries of Mining, Utilities, Defense, Transportation and
Government.

Mincom Ellipse enables world's best practice in the management of assets, work,
logistics, financials and human resources, empowering asset-intensive
organizations to respond faster and make better decisions that directly impact the
bottom line by:

 Increasing asset utilization


 Reducing operating costs
 Delivering quality products and services
 Meeting regulatory standards for audit compliance
 Ensuring supply chain availability and visibility
 Allocating skilled resources appropriately
 Mitigating Risk
 Improving productivity.

Mincom Ellipse's world-class modules of Asset and Work Management, Supply


Chain Management, Financial Management and Human Resource Management
are an integrated foundation, delivered from a Service Oriented Architecture (SOA)
platform. These foundation modules are complemented by business analytics,
advanced maintenance and planning and mobile workforce solutions, offering the
broadest functionality and the most robust solution in the Enterprise Asset
Management (EAM) market today.

Mincom used elements within SALINO Configuration:


- MIMS Vu
- MIMS Extender
- LinkOne GTi
- MIMS open enterprise

Mincom LinkOne

Mincom LinkOne is software for creating graphical catalogues that helps users find
the right part, first time, every time. A world leader in graphical content creation,
distribution and access, Mincom LinkOne has the unmatched power to link
graphics with parts lists and rich text to easily produce electronic parts catalogs
(EPC) and graphical Interactive Electronic Technical Manuals (IETM).

Mincom LinkOne Version 5, released on the 30th of November 2006, takes the
strength of the 13 years of development and understanding Mincom has built, and
provides a flexible solution for Asset Maintainers and Original Equipment
Manufacturers.

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How to reduce the amount of non – correct information in Salino

Mincom LinkOne's superior publishing, distribution, and viewing system makes all
forms of electronic parts and service information available at the touch of a key via
the internet, intranet, or CD. This assists our customers in the areas of:

 Asset Management
 Inventory Control
 Supply Chain Management
 Process Manufacturing
 Material Management

MIMS open enterprise


MIMS = Mincom Information Management System (MIMS)
This is an Open Enterprise product.
MIMS Open Enterprise 4.3 features technology and functionality improvements
that enhance Mincom's ability to deliver total EAM solutions

MIMS Open Enterprise is made by Mincom, a Brisbane, Australia-based business


solutions assembler in the enterprise asset management software, services and
solutions market.
MIMS is designed for capital-intensive industries with work and maintenance
management, inventory control and/or costing requirements.

MIMS Vu
Report Tool

MIMS Extender
The MIMS/Extender is a user-friendly GUI environment that allows customers to
rapidly develop and
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How to reduce the amount of non – correct information in Salino

customize front-end applications, and includes extensive samples, templates and


documentation. MIMS/Extender was developed over the Inprise Corporation's
Delphi product. The business object
connector SDK enables customers to access MIMS Open Enterprise data using
applications such as Microsoft Office, Excel, Project and Access, and display that
information in a format familiar to them. The Business Object Connector uses
industry standard interfaces such as COM, DCOM, CORBA and C++.

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