SMRP ARMS Training Rev2

Reliability Excellence
and the Five Pillars
ARMS Reliability Engineers
SLIDE 1 www.globalreliability.com
Purpose
In this 2 day workshop we explore what reliability excellence is and how you achieve
it. The Five Pillars or subject areas of skills, capabilities and know-how for the
Maintenance and Reliability Professional as described in SMRP Body Of Knowledge
will be used as the basis for the journey to Reliability Excellence.
Reliability Excellence and The Five
Pillars
Contents
Section 1 Introduction
Section 2 Business & Management
Section 3 Manufacturing Process Reliability
Section 4 Equipment Reliability
Section 5 People Skills
Section 6 Work Management
Section 7 SMRP Exam Sample Questions
Section 8 Summary
Section 1:
Introduction
Contents
• Reliability Excellence
• Understanding the Business Driver for
Reliability Excellence
• The SMRP Five Pillars
What is Reliability Excellence?
• Organizing and managing an efficient and effective
maintenance program
• Organizing and managing efficient and effective operational
practices
• Assuring capacity to an operation
• Getting active participation from all employees
• Receiving a commitment from top-level leadership
• Having an organizational culture that embraces accountability
and continuous improvement
• Developing a cooperative partnership between maintenance
and operations
• Randy Heisler, CMRP, article on Maintenance Technology Website
Journey To Reliability Excellence
• The Journey to Reliability Excellence involves the
use of various techniques to:
Identify where to start Determine costs

analysis Decide optimum
Determine causes of tasks
problems Calculate criticality
Assess Reliability Rank importance
Predict future reliability Quantify risk
Determine likely Identify Hazards
effects
Understanding Business Drivers
Shareholder Value
Scenario
1
Scenario
R.O.I.
$ Cash
2
Dividends $
Scenario
3
Shareholders main goal is Return On their Investments
Shareholder Value
• Return on Investment (capital productivity)
is the ultimate objective of any enterprise.
• This is normally determined by the quantity of
products per unit (in monetary terms) to
capital input.
• For example when two business cases are
compared, financial return per unit of capital
employed is an important consideration as a
measure of performance.
Shareholder Value
Defects Plant Design Capital
Capacity Investment
Production Available Plant Plant Maintenance

Revenue Capacity Downtime Requirement
•Feedstock Availability
•Product Demand
Yield
Plant
Profitability
Operating Equipment
Efficiency Condition
•Feed Mix
Operating Operating •Product Mix
Expenses Severity •Product Specification
The net revenue from a plant is determined by the

profitability of it’s operation.
The SMRP Five Pillars
What is the SMRP?
• SMRP – Society for Maintenance & Reliability
Professionals
• An organization “By Practitioners, for Practitioners”
• Formed and Chartered in 1992
• 2200 members worldwide
• 200 Executive Company members
• ARMS is a Sponsor Company
• Conducts examinations to become a Certified
Maintenance and Reliability Professional (CMRP)
• www.smrp.org • SMRP DOES NOT endorse any commercial activities
including this training course.
• Completing this course DOES NOT ensure that you
will pass the CMRP exam.
• The course uses the SMRP five pillars to categorise
the material
Where Does the SMRP Five Pillars
Model Fit?
• The SMRP’s Body of Knowledge (BoK) Directorate
provides our members with a number of enhanced tools
for your Maintenance and Reliability (M&R)
Improvement and Cost Reduction Toolbox.
• It is the goal of the BoK Directorate to provide the best

possible assistance in the areas of “best practices”,
best practice metrics, benchmarking and body of
knowledge reference material, to enable you to
optimize improvement opportunities when applying this
knowledge. .”
SMRP Body of Knowledge
The five subject areas of skills, capabilities and know-
how for the Maintenance and Reliability Professional
SMRP Vision
• SMRP's Vision is to become the global

organization known for providing
competitive advantage through
improved physical asset management
The 5 Pillars
• What are 5 pillars

– Business & Management
– Manufacturing Process Reliability
– Equipment Reliability
– People Skills
– Work Management
Pillar 1 – Business & Management
• Create Strategic Direction & Plan

• Selling Programs and Change to Stakeholders
• Create Measurement and Performance Management
System
• Manage Risk
• Business Case Preparation
• Communicate to Stakeholders
• Plan and Budget Resources
• Maintenance/operations Performance
agreements/specifications
Pillar 2 - Manufacturing Process
Reliability
• Maintain process and industry standards and

specifications
• Understand the manufacturing process
• Manufacturing effectiveness techniques
• Safety Health Environmental
• Manage effects of change to processes and
equipment
Pillar 3 – Equipment Reliability
• Determine equipment and process performance

expectations from the business plan
• Establish current performance levels and analyze
gaps
• Establish a maintenance strategy to assure
performance
• Cost-justify (budget) tactics selected for
implementation
• Execute a maintenance strategy
• Review performance and adjust maintenance
strategy
Pillar 4 – People Skills
• Assess organization competence and direction

• Develop the maintenance and reliability
organization structure
• Develop the maintenance and reliability staff
• Communicate maintenance and reliability to the
organization
Pillar 5 – Work Management
• Comprehensive work identification
• Plant wide formal prioritization system
• Effective work planning prior to scheduling
• Effective work cooperative work scheduling and backlog
management
• Effective resource management (people materials financial)
• Document work execution and update records / history
• Equipment history review and failure identification
• Effective performance measures and follow up
• project planning
• Effective use of information technologies (CMMS)
Summary
• The workshop addresses the excellence in

the maintenance and reliability elements of
the 5 Pillars
Section 2:
Business & Management
Objective
This section describes the skills used to

translate an organization’s business
goals into appropriate maintenance and
reliability goals that support and
contribute to the organization’s
business results
Contents
• Strategic Direction
• Selling Programs
• Measurement and Performance Management
• Managing Risk
• Business Case Preparation
• Communicate to Stakeholders
• Plan and Budget Resources
• Maintenance / Operations Performance agreements /
specifications
Create strategic direction and
plan
Establish the Business Case
• We need to understand the context of the

business drivers and the impact that
maintenance and reliability has upon them
• What would be if we are able to achieve
these goals?
• Why do we want to invest in change and
improvement?
Understanding the contribution

of the assets to the business Business
performance is essential in Goals
making
maintenance decisions.
HR Market Asset Product

Strategy Strategy Strategy Strategy
Capital Maintenance Risk

Investment Management Management
Define the Business Goal Contribution in Specific
Measurable Terms
Business
Goals
Produce 10,000 tonnes of product
Each year with low chance of injury or
Asset Environmental impact, at lowest
Strategy possible cost
Maintenance Understand your business…..

Management
Determine the Asset Strategy in Specific
Measurable Terms
Business
Goals Understand the asset……..
Be available 85% of the time for

Asset operation at maximum output,
Strategy with minimal spillage and
less than 2% re-processing
Measure the opportunity……

Maintenance
Management
Determine the Maintenance Plan with Specific Tasks
That Deliver The Strategy
Business
Goals
The best maintenance meets the
asset strategy and business
goals at least overall cost
Asset
Strategy Maintenance tasks that are performed
at specified frequency,
with spares and resources in
an efficient manner
Maintenance
Management
Justifying Maintenance Decisions
Achieve the agreed plant The maintenance strategy
output and safety at optimum for each maintainable item
resource costs. of equipment is determined.
Production output :
quantity and quality
Plant availability Maintenance task at
specified frequency,
Safety & statutory duration, materials, and
requirements labour resource.
Operating Efficiency
The reason understanding the Business Goals

is important is that the cost of maintenance is
balanced against the cost of failure.
• What is the annual spending on maintenance at your
facility?………………..
• What percentage of maintenance is performed in a
reactive manner?............
• What is the cost per shutdown and/or per
hour?...............................
• What was the annual cost impact of plant
interruptions/downtime last
year?.................................
• What is the annual cost of waste?................
• What is the annual cost of poor quality?………
• List other areas of lost profit opportunities in your
organisation and estimate how much each is worth
on an annual basis.
Identify Current State
• Auditing and benchmarking establishes

where the system is now compared to:
– Other similar industries participating in a
survey
– Published Best Practice Benchmarks
• Identifying the Gap
• Provides a basis for making improvements
Best Objectives Organisational Budget Performance Engineering Planning
Practice in Structure
Maintenance
Level 5 Objectives are regularly Flat structure. Zero base budgeting. Performance Targets are Review of processes and 95% of work is scheduled
reviewed using clearly Widespread Budget linked to business set and measured. failure documentation to one week before
World defined indicators at all communication. Highly strategy. A Continuous improvement systematically determine All materials & services
Class levels skilled flexible workforce. attitude based on business root cause failure and organised well ahead of
Effective meetings and objectives. initiate improvements time (4 Weeks min.)
communication channels.
Management providing a Strategic Improvements
support role.
Individual held accountable.
Level 4 Objectives are Structure developed to suit Expenditure justified on KPIs prominent in the work Documentation of failures 80% of work is scheduled
communicated but not business needs. Manning plant performance and place with personnel and repairs with an ad hoc one week before
measured levels optimised to core payback in line with understanding their review and rectification Some materials & services
activities. company goals and influence process arranged ahead of time
Remuneration based on objectives. Shift away from
salaries and performance historical budget setting Long term trends
reward.
Authority levels clearly
understood
Training program based on
non-core and core skills
upgrade.
Level 3 Objectives are set at senior Job descriptions written for Planned expenditure with KPIs implemented and Good documentation of 60% of work is scheduled
management level but not all positions regular reviews. Cost monitored. Regular reviews failures and repairs with a one week before
communicated Training Program on core cutting used as a means to with discussions at review of special cases Materials & services
skills limit or reduce expenditure. management level. Results resulting in some success arranged on the job
Excessive meetings - No performance or actions not stories.
inefficient consideration. communicated.
No overtime culture
Level 2 Objectives are General, but Decision making difficult. Maintenance Budget based Performance measures Some documentation of 40% of work is scheduled
not clearly defined or Few Meetings on historical performance identified failures and repairs with Materials & services
measurable Individuals with clearly plus an annual increase limited analysis of root arranged on the day
defined responsibilities No performance cause
Low overtime culture consideration
Level 1 No Objectives Multi-layered Maintenance Budget fixed., No measurement No documentation of 10% of work is scheduled
Poor communication. Low often exceeded. Poor failures and repairs Materials & services
meetings reporting and management. No systematic reviews of arranged on the job
High ratio of staff to trades causes
support > 10:1
High overtime levels
Best Work Initiation Work Execution Stores & Operations Strategy & Contracting
Practice in Purchases Development
Maintenance
Level 5 85% of work is generated Materials, permits, job pack Zero critical and minimal Strong sense of ownership Fully defined strategy for all Efficient contractors with
from predictive and and labour scheduled and ordinary stockouts and commitment to equipment with procedures ownership of reliability and
World preventative program delivered just in time. achieving and improving and programs planned and cost objectives.
Class All history on findings and High stock turn ratio (>3) cost and reliability targets implemented.
All work planned materials used recorded. with regular reviews of Deviations investigated , Strategic sourcing with
High degree of Predictive inventory levels On the job problem solving root cause remedied. continuous improvement
maintenance Efficient shutdowns and Pre Arranged material in and improvement Everybody understands objectives resulting in
startups on or ahead of job lots, no waiting identification strategy and support its mutual benefits
schedule implementation.
Level 4 50% of work is generated All work completed within Customer drive No demarcation. Policy and procedures are Long Term Partnerships
from predictive and schedule. Quick check out Operations undertaking in place but implementation
preventative program. Job organisation occurs at Supplier agreements basic maintenance not measured.
Complete resource trades level. established Not understood at all levels
planning. Kit lists developed Operations and
Very few delays on maintenance take joint
shutdown and startup responsibility to improve
basic equipment care
Level 3 Preventative and Predictive Not all work completed Blanket orders with Flexible work force. Criticality defined for all Preferred contractor list
program developed and within schedule suppliers and some field Mature co-operative equipment and monitoring based on performance
rationalised for all Some equipment not deliveries relationship between by specialists audits
equipment. prepared for maintenance Some queuing at store operations and
on time with some delays in maintenance
startup.
Level 2 Preventative and Predictive Historical work standards Access restricted to store- Some demarcation. Planned maintenance Competitive bidding. Fixed
program developed for used in manual planning men. Long processing Generally a co-operative based on PM and price agreements
critical equipment via a process, utilising excess times. Low stock turn ratio. atmosphere experience.
CMMS. CMMS used manpower. High number of stock outs Criticality and other
mainly as a Jobs controller Too much stock parameters are defined.
Detailed planning of Considerable lead times
shutdown and startup
however not implemented.
Level 1 Reactive : Breakdown No job instructions Open store with self serve Strict demarcation between No Strategy or Direction Uncoordinated contractor
orientated. No planned Equipment not available for and uncontrolled inventory. skills. No procedures or systems selection based on
maintenance. maintenance Purchasing is completely Operators report failures - Do not acknowledge need convenience and short term
Materials not known reactive maintenance reacts for strategy goals
significant problems with
delays.
Identify Target Performance
Selling programs and changes to
stakeholders
Identify the Stakeholders
• Stakeholders are those individuals or groups

who, at some time during the Maintenance
change cycle, will affect and be affected by what
is happening.
• Stakeholders include Production Managers,
Production Supervisors, Production Workers,
Maintenance Supervisors, Maintenance
Tradesmen, Engineers, Suppliers, members of
the change team etc.
Identify the Stakeholders
• You need to think about how, in your own way, you can
bring them on board to support change.
• All of the good ideas in the world go nowhere if the
people affected by them and affecting them do not give
them their support.
• Motivating stakeholders to make their agenda yours is
no easy task. One reason for its difficulty is that so many
stakeholders are involved in complex change. Adding to
the complexity, each of these stakeholder individuals
and groups perceives themselves as having different
stakes.
What’s in It For Me?
• People change when the case for change
becomes a personal matter.
• An employee will change his or her behavior
when management honestly promises to make
things better, and communicates persuasively
that the forthcoming change program is part of
the solution for that individual.
• For any Maintenance change project, consider
each of the stakeholder individuals and groups
from which support for the change is essential,
and ask the question - what is in it for them?
Influencing Reliability Improvement
• As a reliability leader, you cannot make

sustainable reliability improvements without you
people truly following you.
• As a reliability leader, you need to show the
“what’s in it for me”.
• As a reliability leader, you need to demonstrate
and deliver the “what’s in it for me”.
• As a reliability leader, you need to reward the
behaviors of reliability improvement. Over time
they start to self perpetuate.
Create measurement and
performance evaluation systems
Measurement and Performance
Evaluation Systems
• Any organisation, regardless of its size, needs
a scorecard to measure how well it is doing
• In immature companies, these measures are

mostly:
– Reactive
– Financial
– Aimed at control
Evaluation Systems
• Typically, such an organisation would produce monthly
statements of sales, expenses and profit.
• These figures are then compared to the budget,

whereupon some reaction (either celebration or
punishment) is triggered.
• This process normally takes place halfway through the

next month which results in reactive measures that are
mainly of historical value.
Evaluation Systems
• One of the most important aspects of performance

measurement is that it should align very closely to the
manufacturing strategy, thus support it.
• There are two major reasons for this:

– The organisation needs to know to what extent it is
achieving the goals laid down in the strategy.
– 'You get what you measure.'
Evaluation Systems
• When identifying measures the acronym
SMART is often applied.
• Specific
• Measurable
• Achievable
• Relevant or Realistic
• Time-bound
Manage Risk
Managing Risk
• You've carefully thought out all the

angles.
• You've done it a thousand times.
• It comes naturally to you.
• You know what you're doing, its what
you've been trained to do your whole
life.
• Nothing could possibly go wrong, right ?
Managing Risk
Managing Risk
• “The exposure of an activity to an uncertain
outcome”. From the Oxford Dictionary.
• “The chance of something happening that will have
an impact upon objectives. It is measured in terms of
consequences and likelihood”. From-ASNZS 4360
1999
• “The probability of something happening that will
have an adverse impact upon people, plant,
equipment, financials, property or the environment
and the severity of the impact”.
• It is often expressed as:
Risk = Consequence x Likelihood

Managing Risk
• Human safety risks – risk of injury or death to

the workforce or the general public.
• Environmental risks – release of toxic materials.
• Operational risks – military missions where
failures in aircraft, naval and weapons systems
affect the outcome of the mission.
• Economic risks – arising from loss of production
and capital assets, compensation payments and
contractual penalty clauses.
Managing Risk
• The alternative to risk management is risky management.

That is, making reckless decisions which are not based
on a careful consideration of the facts and the risks
involved.
• Murphy’s Law-Whatever can go wrong, will go wrong
• When things go wrong, it always costs money to fix them.
• If you are prepared for the unexpected, you can
• recover quickly
• minimise costs
• capitalise on an opportunity
Managing Risk
RCM – Reliability
Centered
Maintenance
SIL – Safety
Integrity Levels
Process Alarms
RBI – Risk
Based Local Shutdown Systems
Inspection
Relief Valves
ESD/EDP Systems
Mechanical Integrity
Increasing
Risk
Reliability Centred Maintenance (RCM)
• Choosing the Optimum Maintenance Task.

• The goal of an RCM analysis is to preserve
function of an item.
– Step 1 FMEA to sort out which failures matter.
– Step 2 The maintenance task selection logic
decides the optimum task based on type of failure
mode.
– Step3 Determine whether it is worth doing, if so
assign task to a plan, if not redesign or run to
failure.
Safety Integrity Levels
• IEC 61508 – Functional Safety of

Electrical/Electronic/Programmable Systems
• Specifies requirements for availability of protection
systems based on Safety Integrity Level
SIL Availability
4 >99.99%
3 99.90 - 99.99%
2 99.00 - 99.90%
1 90.00 - 99.00%
Safety Integrity Levels
• IEC 61508 has the following views:

– Zero risk can never be reached
– Safety must be considered from the beginning
– Non tolerable risks must be reduced (ALARP)
• Risk is reduced to a tolerable level by

applying safety functions that may include
further redundancies levels or function
testing at set intervals
Risk Based Inspection (RBI)
• RBI is the use of risk assessment to plan and justify

and to aid the interpretation of results from inspection,
testing and monitoring.
• It should deliver fully developed inspection and
monitoring plans that are consistent with the business
objectives and regulatory requirements of the end-user
• RBI Systems typically cover static equipment that may
include:
– Bulk storage tanks, process pressure vessels and
process piping
– Non-cathodically protected buried piping.
– Transportation pipelines and supporting aerial
structures
Risk Based Inspection (RBI)
• Pressure System Register

• Physical and operational data
• Corrosion Risk Assessment including:
– Hazard Risk Assessment
– Operability Assessment
– Consequence assessment
– Corrosion Vulnerability (Internal and external)
– Corrosion Risk (Internal and external)
– Inspection Priority (Internal and external)
– Inspection Frequency (Internal and external)
• NDT Monitoring Points/Video Camera Surveys
• NDT Results
• All Relief Valves in each system
Quantifying Consequences
Safety Operational Cost Per Cost Per

ID Description
Severity Severity Occurrence Hour
EXPL Major explosion 50 0 100000.00 0.00

FIRE Major plant fire 10 0 50000.00 0.00 Notable Significant Highly Serious Extremely Catas
Likelihood Event Event Significant Event Serious -trophic
ILOSS Intermediate loss of production 0 0 0.00
(per annum) 250.00
(20-80%) Cat 1 Cat 2 Cat 3.1 Cat 3.2 Cat 4.1 Cat 4.2
{A} Almost Level Level Level Level Level Level
LOWQ Unacceptable product quality 0 10 0.00
Certain 500.00 II II I I I I
1D
MLEAK Material leakage 0 0 10 -0.00
1.0/yr 50.00 1M 1M 1M 1W 1D
{B} Likely Level Level Level Level Level Level

MLOSS Major loss of production 0 0 0.00/yr 400.00
<1.0 III III II II I I
(60-100%) 1Y 1M 1W 1W
{C} Unlikely Level Level Level Level Level Level

SLOSS Small loss of production 0 0 0.00 50.00 IV IV III III II I
<1/10yr
(1-20%) 5Y 5Y 1Y 1M
{D}Very Unlikely Level Level Level Level Level Level

<1/100yr IV IV IV IV III II
5Y 1Y
{E} Level Level Level Level Level Level

Extremely IV IV IV IV IV III
5Y
Unlikely
<1/1000 yr
Use Risk Matrix to set threshold levels based
on acceptable likelihood.
Failure Mode & Effect Analysis
(FMEA )
• Identify Ways Equipment can

lose Function.
• List Potential Failure Modes of

Equipment and assign Effects
on System Performance.
• Allows Focus on Failures

which are important.
FMEA
• From the selected item drill

down thru functions and
functional failures.
• Potential failure modes are

identified for each item.
• Failure effects are estimated

according to cost, safety,
environment or operational
impacts.
• Sort on failure effect severity
FMEA Ranking
Example: Train
Part Failure Effects End Severity
Mode Effects
Brakes Seized open No brakes Unsafe Ops Catastrophic IV
Brakes Leaks Low stopping force Unsafe Ops Critical III
Engine Seized No Power No Service Major II
Engine Seized No Power No Service Major II
Brakes Seized closed No Motion No Service Major II
Brakes Indication Lamp on Operator Control None Minor I
Work on Improving Brakes seized Open
Failure Modes Effect and Criticality
Analysis (FMECA)
Failure Modes Effect and
FMECA Criticality Analysis
• Is an Extension to FMEA
• Identifies the Severity and

Probability of Failure Modes to
assign a Criticality to each
Failure Modes.
• Used to develop a Critical Items

List for targeting improvement
efforts
FMECA Criticality Analysis
Example: Train
Part Failure Severity Mode Failure Criticality
Mode Rate
Engine Seized II 0.01 0.02
Brakes Leaks III 0.1 0.3
Brakes Seized open IV 0.0001 0.0004
Brakes Seized closed II 0.001 0.002
Brakes Indication Lamp on I 0.0001 0.0001
Sort on criticality
FMECA Criticality Rank
Example: Train
Part Failure Severity Mode Failure Criticality
Mode Rate
Brakes Leaks III 0.1 0.3
Engine Seized II 0.01 0.02
Brakes Seized closed II 0.001 0.002
Brakes Seized open IV 0.0001 0.0004
Brakes Indication Lamp on I 0.0001 0.0001
Work on Brake Leaks
Fault Tree Analysis (FTA)
Fault Tree Analysis is a Top Down

Approach starting with an
undesirable event such as a
failure of a system followed by
identifying all of the possible
events or combination of events
that could lead to failure.
Example:
What if the supply of electricity to
Wellington failed?
What if the Gas Supply line to
Melbourne failed in winter?
FTA: Top Down Tree
The Analyst makes use of a tree diagram with logic gates,
such as AND and OR gates.
Flow down
cause
Why Use Fault Trees ?
• Quantify the Risk Exposure

• Identify Important items
• Model large and complex systems
• Model redundancy
• Model common cause failures
• Graphical representation easy to understand
• Well-used throughout safety and process
industries to evaluate risk.
Exercise
• Fault Tree Exercise
Business case preparation
Establishing the Benefit
Reactive
• Fixing breakdowns consumes a disproportionate amount of resources

and time, and little is actually left over for the Preventive Maintenance
activities.
• Often assumes all failures can be prevented through regular preventive
maintenance regimes.
• Sometimes predictive maintenance activities are completed but repairs
not actioned:- “Inspect to Failure”.
• It is typically the Preventive

Maintenance regimes which Traditional Maintenance
are then cut, leading to further practices are often fixed
rises in failures and reactive and based on the type of
responses. equipment.
Reactive
Reactive
Companies spending more than 10% of maintenance resources attending

to breakdowns or unplanned events, are in danger of being trapped in a
cycle where maintenance tasks are undertaken as a response to plant
events.
Reactive Maintenance increases both direct and indirect costs to the business.
• Lower Equipment Availability
• Less system Uptime.
• More Interruptions to Supply.
• Higher Risk of Safety and Environmental events.
• Indirect Costs of poor asset

maintenance are often x10 to x20
times greater than direct costs.
Proactive
• Reliability Engineering methods focus on managing the

consequences of equipment failure.
• Failures are addressed based on the likelihood of
failures occurring rather than waiting for failures to
actually occur.
• Proactive Maintenance can reduce:
— risk,
— improve business performance,
— and cost up to 30 to 40% less
than traditional maintenance.
Reactive to Proactive
• Changing Focus
“Fixers” “Failure Eliminators”
“I look after the “I manage the reliability

equipment” of the process”
Proactive
In every asset management process, 2 questions

are asked that ultimately deliver value to the
organization:
Maintenance Effectiveness – How effective is the asset strategy in
providing plant reliability and achieving output factors?
“Are we performing the right maintenance on the right equipment at the

right time to achieve the desired outputs?”
Maintenance Efficiency – How organizationally efficient is the maintenance

department in carrying out the maintenance work at best costs?
“Are we optimizing our maintenance dollar?”
Maintenance Effectiveness
• Reliability Engineering
• Risk Management
• Condition Monitoring
Maintenance Efficiency
• Computerised Maintenance Management Systems (CMMS)
• Work Processes
• Productivity
Implementation of these principals will assist in moving the

organization from a Reactive to a Proactive environment
Calculate the Benefit
Plant Profitability
Production Operating
–
Revenue Expenses
Return On
Investment
=
Capital Invested
The return on investment is the ratio of the plant

profitability to the value of the asset.
Total Usable Time (TUT)
Total Available Time (TAT) NST
Available Operating Time (AOT) PDT
Availability (NOT) UDT
Usable Operating Time (UOT) LT
Net Productive Time (NPT) DPT

Unplanned
Downtime
Defects Process Time
Utilization Rate (UR) = TAT/TUT SCRAP BREAKDOWNS
REWORKS FAILURES
SET- UPS
Availability Rate (AR) = AOT/TAT OFF - SPEC.
OFF - QUALITY
Reliability Rate (RR) = NOT/AOT
Lost Time Planned Downtime
Performance Rate (PR) = UOT/NOT MINOR STOPPAGES
SHUTDOWN
LUNCH & BREAKS
REDUCED SPEED
MEETING
Quality Rate (QR) = NPT/UOT IDLING
TRAINING
SLOW DOWN
NO OPERATOR
OEE = A x PR x QR TEST
Not Scheduled Time
CHANGEOVER
WEEKEND
^OEE = Overall Equipment Effectiveness NO RAW MATERIAL
NIGHT SHIFT
STATUTORY HOLIDAYS
“World-class”
Metric Case 1 Case 2 Performance
Availability 0.8 0.9 >0.95
Performance Rate 0.8 0.9 >0.95
Quality 0.9 0.9 >0.95
Demand 0.24 0.9 ~1.0

(1 shift, 5 days)
OEE ^ 0.58 0.73 >0.85
Asset Utilization 0.14 0.66 >0.85*
OEE = Availability X Performance Rate X Quality

AU = Availability x Performance Rate x Quality x Demand
*Some organizations view world-class asset utilization as 90%+. Of
course, the achievability of different levels of performance varies from
industry to industry.
• Consider the following values for a generic organization

and depending on the industry these can value greatly
from one to the other:
– Gross Revenue per Unit of Production 5

– Max Annual Prod Capacity 400,000
– Asset Utilization1 65%
– Operating Expenses2 $1,250,000
– Capital Invested $2,000,000
– Revenue $1,300,000
– Profit $50,000
– Return on Capital Employed 2.50%
1. Availability = 80%, Performance Rate = 90%, Quality Rate = 90%, Demand = 100%
2. Operating Expense is 50% maintenance 50% other
Calculate the Benefit – Capital
Invested
• Reduce Capital
• Increase in breakdowns, availability drops to 70%
• Increase operating expenses (maintenance)
• Plant Debottlenecking
• Identification of equipment performing under capacity
• Improves performance rate by 5%
• Plant Expansion
• Capital investment in adding additional production
lines
Calculate the Benefit – Capital
Invested
Reduce Capital Plant
Requirement Debottleneck Expansion
Gross Revenue
per Unit of
Production 5 5 5
Capacity 400,000 400,000 440,000
Asset Utilisation 57% 72% 65%
Operating
Expenses $1,400,000 $1,250,000 $1,400,000
Revenue $1,140,000 $1,400,000 $1,430,000
Profit -$260,000 $190,000 $30,000
Capital Invested $1,500,000 $2,200,000 $3,000,000
Return on Capital
Employed -17.33% 8.64% 1.00%
Calculate the Benefit – Improve
Efficiency
1. Implement CMMS
- Cost Control
- Work Processes
2. Work management systems
- Introduce planning of maintenance activities
- Introduce work scheduling
- Productivity monitoring
3. Materials & Logistics Improvements
- Create Bills of Materials (BOM), and Application
Parts Lists (APL)
- Procurement optimization
- Stores/Warehouse organization
Efficiency
Work
Implement Management Materials &
CMMS Systems Logistics Overall
AR Improvement 5% 4% 1% 10%
Availability 85% 84% 81% 90%
PR 90% 90% 90% 90%
QR 90% 90% 90% 90%
D 100% 100% 100% 100%
Asset Utilization 69% 68% 66% 73%
Efficiency
Work
Implement Management Materials &
CMMS Systems Logistics Overall
Gross Revenue per
Unit of Production 5 5 5 5
Capacity 400,000 400,000 400,000 400,000
Asset Utilisation 69% 68% 66% 73%
Operating Expenses $1,200k $1,250k $1,200k $1,200k
Revenue $1,380k $1,360k $1,320k $1,460k
Profit $180k $110k $120k $260k
Capital Invested $2.5M $2.1M $2.1M $2.7M
Return on Capital
Employed 7.2% 5.24% 5.71% 9.63%
Effectiveness
1. Maintenance Strategy Optimisation

- Reduction in unplanned failures
- Increase in planned maintenance
- Reduction in risk
2. Defect Elimination program
- Usually low cost to implement
- Can focus on product quality issues
3. Spares Optimisation
- Improves availability as critical equipment not waiting
on parts
Effectiveness
Maintenance Defect Spares

Strategy Elimination optimisation Overall
AR Improvement 5% 7.5% 2.5% 15%
Availability 85% 87.5% 82.5% 95%
PR 95% 95% 95% 95%
QR 95% 95% 90% 95%
D 100% 100% 100% 100%
Asset Utilization 77% 79% 71% 86%
Effectiveness
Maintenance Defect Spares
Strategy Elimination Optimisations Overall
Gross Revenue per
Capacity 400,000 400,000 400,000 400,000
Operating Expenses $1,200k $1.200k $1,200k $1,100k
Revenue $1,540k $1,580k $1,420k $1,720k
Profit $340k $380k $220k $620k
Return on Capital
Employed 16.19% 18.5% 10.4% 27.6%
Calculate the Benefit – Overall
Capital Efficiency Effectiveness Overall

Improvement Improvement Improvement Improvement
Gross Revenue per

Capacity 400,000 400,000 400,000 400,000
Operating
Expenses $1,250k $1,200k $1,100k $1,100k
Revenue $1,400k $1,460k $1,720k $1,800k
Profit $190k $260k $620k $700k
Return on Capital
Employed 8.64% 9.63% 27.6% 22.2%
Communicate to stakeholders
Planning and Communication
• Identify sponsor(s) for change

• Identify long-term business goals and what key
results must be achieved
• Identify today's performance and key results
areas
• Vision: What would be if we were good enough
to achieve our goals?
• List and group actions to close gap of vision with
current status
• Create agreement on maintenance and reliability
improvement progression model
• Create project description and prioritize

• Create resource and benefits plan and key
results areas
• Develop implementation schedule
• Achieve management review and approval
• Communicate plan to gain “buy-in”
• Revise plan on an annual basis
• Present results to leadership periodically

• Konosuke Matsushita, founder of Matsushita Electric Industries,
developed the idea of 'glass wall' management.
• The 'glass wall' refers to open communication, visibility and

transparency.
• His idea was to share key information with everyone in the workplace so
that they understood the situation and could make informed decisions.
• This information would include performance measures and plans, as

well as physical examples of problems, letters of praise, photographs
and guidelines.
• Even a stranger would be able to understand the situation.
Source- Matsushita Leadership - John Kotter

• In order to make the displayed information easily
understandable, it should be visual, simple and self-
explanatory.
• Normally, the information is displayed on a large notice
board next to the work area and it acts as a 'scoreboard' for
the team.
– It empowers the work team with the necessary information for
decision making.
– It drives continuous and focused improvement.
– It measures the success of the other best practices such as
maintenance, quality, etc.
– It communicates the team's performance to others, e.g. managers
and customers.

• Empowered teams are an essential element of any world

class organisation.
• Empowerment means that teams throughout the

organisation are actively driving down waste and improving
performance.
• For these teams to be effective, they need accurate, and

accessible information.

Pareto Bad Actors
Implementation Plan 800
700
600
Team code of 500
$K
400
Team Vision 300

200
conduct
Quarter -1 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5
100
ID Task Name Duration Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
0
1 1BCMImplementationPlanExtract (Level 1to2) 268days
2 1.1Conduct BCMAudit 5days
3 1.21. Asset CareStrategy 37days
4 1.2.1Management TeamOverview 5days
5 1.2.2ConsolidateAsset CareStrategy 0.4wks
6 1.2.3BCMSensitisation-Shopfloor 5days
7 1.2.4Clarificationof Roles andResponsibilities 10days
8 1.32. PreventiveMaintenance 195days
9 1.3.1Revisit Criticality List &ExpandConditionMonitoring 1week
10 1.3.2ReviewConditionMonitoringEffectiveness 2wks
11 1.3.3Fast TRACCRCMSpecialist Workshop 1week
12 1.3.4HighLeverageAreaSelection 1week
13 1.3.5DevelopFast TRACCRCMmaintenanceprogramme 2months
14 1.3.6Implement schedules fromFast TRACCRCM 2months Son of Pareto - Rotory Valves
Team Department 15
16
17
18
1.43. AnalysisandImprovement
1.4.1EstablishMulti-Disciplinary Teams
1.4.2Implement Situational Root CauseAnalysis
1.4.3Implementationof 3Tiers of ProblemSolving
95days
2months
2months
2months
600
Maintenance $ / Tonne of Product Objectives 19

20
1.4.4EstablishVisual Management
1.54. PlanningandScheduling
1month
30days
500
400
Photo 21
22
1.5.1DevelopaMaintenancePlanwithShut Intervals
1.5.2EstablishWeeklyPlanningMeeting
2weeks
1month
$K
23 1.65. InformationManagement 140days
300
120 24 1.6.1ReviewCMMSReportingSystemUsage 1week
25 1.6.2Development of CMMStoSupport Root CauseAnalysis 2weeks
200
26 1.6.3DevelopTechnical Library 2weeks
100
100 27 1.76. Early Equipment Management 0days 23/10
28 1.87. TrainingandDevelopment 6days 0

Maintenance $ / Tonne
29 1.8.1Development of Asset CareSkills Matrix 5days

Seal undesize Air pressure low Incorrect airflow abrasive product
80
60
40 Maintenance $ / T onne of Product PM Complience to Schedule

120
100
100
20
Maintenance $ / Tonne
80 90
Percent
60
80
0
40
20
Jun Jul Aug Sep Oct Nov Dec 70 Jan Feb Mar Apr May AVG
60
0
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May AVG
Month 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51
Month F07 F08
WeekAct
Number F08 Target
F07 F08 Act F08 Target
Breakdown Work Order Percentage

Planned Work Attainment to Schedule
35
Electrical shop Electrical shop Motor test bay
30 100
25
90 before before before
80
Breakdown %
Percent
20
70
15 60
50
10
5
40
30
The Journey – where we have come from, to where we are going.
0
20
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51
Month
F08 Target F07 F08 A ct
Week Number
Breakdown Work Order Percentage Hours Spent on Training
35 80
70
30
60
Hours on Training
25
Breakdown %
50
20
40
15 30
10 20
10
5
0
0
Electrical shop after Electrical shop after Motor test bay after
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Daily Performance Measurement

Growing Commitment
• Define Reliability Improvement Opportunity for each manufacturing
area (Involve operations and use historical data and Pareto charts).
• Develop a business case and set targets that relate equipment
availability to production plans (Short and long term).
• Develop technical support base (expert reliability engineering
support) for Reliability based efforts.
• Assign a reliability team / champion for each area.
• Revise maintenance policies using RCM (Anticipate failures)
approach to reduce reliance on Preventive Maintenance, extend
intervals and adopt Condition Monitoring/ Inspection techniques.
• Implement new failure prevention and condition based maintenance
plans and Improvement projects (according to priority).

Plan and budget resources

Develop Project Budget




Summing up the challenge
From To
Mission Doing work Return On Investment
People Systems challenge People Challenge
Failures Problem to Fix Opportunity to Improve future
Maint Budget Cost Investment
Work Instr One off Dynamic

LifeCycle Cost New Equipment Regular Review
Maint Plans Backlog of Work Predicted performance
RCA Procedure base Causal Thinking
Plant Design Engineering Practice RAMS
Proj Handover On time: On budget Deliverables: Spare & Maint
CMMS Data Information
Risk Chance Mitigate the Possibility
Work Efficiency ROI
KPI

Standards
• ISO 10007:1995 - Quality Guidelines

for Configuration Management.
• IEC 62198 - Application Guidelines for
Project Risk Management
• CSA Q850-97 - Risk Management
Guidelines for Decision Makers
• NFPA 1561 - Maintainability Program
Standard Implementation Guide

Section 3:
Manufacturing Process Reliability

Objective
This subject area relates maintenance

and reliability activities to the
manufacturing process of the
organization to ensure that
maintenance and reliability activities
improve the manufacturing process.

Contents
• Understand the manufacturing process

• Manufacturing effectiveness techniques
• Safety Health Environmental

Understand the manufacturing
process

Process Mapping
Phase 1
An audit is carried out on site to develop a map
of the maintenance system based on what is
actually happening rather than what is
supposed to be happening.
Phase 2
Analysis of the key driving elements which
establish the critical areas for improvement.
To understand the key

Phase 3
areas for improvements
Design a tailor made improvement program which
delivers bottom line benefits. compare the existing
driving elements with
best practice.

Process Mapping
Analyse Key
Driving
Elements
Systems Compare to Assess Stakeholder Improvement

Map Best Practice Benefits Endorsement Plan
Determine
To Be

ARMS Continuous Improvement
Process AWB
Failure Review
Parameters History
Asset Equipment
Strategy Criticality
PARETO
Identify Analysis
Plan Work CMMS
Work
Schedule Measure
Work Performance Implement Define
Solutions Problem
Work Close Identify Cause &

Execution Workorder Solutions Effects

Manufacturing effectiveness
techniques

Total Productive Maintenance (TPM)
• TPM is a maintenance program

concept to markedly increase
production while, at the same time,
increasing employee morale and job
satisfaction.

Background TPM
• Main manufacturing excellence approach of
Toyota and other excellent Japanese
companies since the 70’s.
• TPM is foundation for JIT, FA, PokaYoke,
Lean Manufacturing, Zero Defects.
• TPM Reference Standard –JIPM (Japan
Institute of Plant Maintenance)
• Comes from the best of Japanese Industrial
Excellence and evolved from the heat of the
continuing Energy Crisis and Globalization
challenges to achieve More with Less.

Goals of TPM
1. Increase asset Utilization and Equipment
(OEE)
2. Foster Production Equipment (Ownership )
3. Equipment breakdown prevention ( Planned
Maintenance through CM, TBM, CBM)
4. Defect Prevention (QM Process & PokaYoke)
5. Evolving into Self Directed Work Teams
(SDWTs) and Lean Manufacturing

Pillars of TPM
1. Focused improvement (Kobetsu-Kaizen): for eliminating
waste
2. Autonomous maintenance (Jishu-Hozen): in autonomous
maintenance, the operator is the key player. It involves
daily maintenance activities carried out by the operators
themselves that prevent the deterioration of the
equipment.
3. Planned maintenance: for achieving zero breakdowns
4. Education and training: for increasing productivity
5. Early equipment/product management: to reduce waste
occurring during the implementation of a new machine or
the production of a new product

Pillars of TPM
6. Quality maintenance (Hinshitsu-Hozen): This is actually
“maintenance for quality”. It includes the most effective
quality tool of TPM: “poka-yoke”, which aims to achieve
zero loss by taking necessary measures to prevent loss.
7. Safety, hygiene, environment: for achieving zero work-
related accidents and for protecting the environment.
8. Office TPM: for involvement of all parties to TPM since
office processes can be improved in a similar manner as
well.

Six Sigma (6σ)
• Originated from Motorola

• Seeks to identify and remove the causes of defects and
errors in manufacturing and business processes.
• It uses a set of quality management methods, including
statistical methods, and creates a special infrastructure
of people within the organization ("Black Belts" etc.) who
are experts in these methods.
• Each Six Sigma project carried out within an
organization follows a defined sequence of steps and
has quantified financial targets (cost reduction or profit
increase).

Six Sigma (6σ) DMAIC
• The basic methodology consists of the following five

steps:
– Define process improvement goals that are consistent with
customer demands and the enterprise strategy.
– Measure key aspects of the current process and collect relevant
data.
– Analyze the data to verify cause-and-effect relationships.
Determine what the relationships are, and attempt to ensure that
all factors have been considered.
– Improve or optimize the process based upon data analysis using
techniques like Design of Experiments.
– Control to ensure that any deviations from target are corrected
before they result in defects. Set up pilot runs to establish
process capability, move on to production, set up control
mechanisms and continuously monitor the process.

Six Sigma (6σ) Tools
• Analysis of variance • Pareto chart
• Business process • Process capability
mapping • Root cause analysis
• Cause & effects • Run charts
diagram (also known as • SIPOC analysis (Suppliers,
fishbone or Ishikawa Inputs, Process, Outputs,
diagram) Customers)
• Chi-square test of • Taguchi methods
independence and fits
• Control chart • Thought process map
• Failure mode and
effects analysis
• Histograms

Safety Health Environmental

Health Safety & Environment
• Occupational health and safety (H&S) and the

environment must not be sacrificed to achieve
manufacturing and production goals.
• The benefits of good H&S and environmental practices
should be recognized for helping create a safer, happier
work environment that nurtures improved job
satisfaction.
• Given the degree of regulation that has been applied and
people's sensitivities about these areas, it becomes vital
to use pro-active programs to identify and eliminate any
deviation from accepted environmental and H&S
practices.

EventTree
• Event tree diagrams provide a logical

representation of the possible
outcomes following a hazardous event.
• Event tree analysis provides an
inductive approach to reliability and risk
assessment and are constructed using
forward logic.

EventTree

Exercise Event Tree
• Event Tree Exercise

Hazard and Operability (HAZOP)
• The Hazard and Operability Study (or HAZOP Study)
is a standard hazard analysis technique used in the
preliminary risk assessment of new systems or
modifications to existing ones.
• The HAZOP study is a detailed examination, by a
group of specialists, of components within a system
to determine what would happen if that component
were to operate outside its normal design mode.
• The effects of such behavior is then assessed and
noted down on study forms. The categories of
information entered on these forms can vary from
industry to industry and from company to company

Hazard and Operability (HAZOP)

Exercise HAZOP
• HAZOP Exercise

Standards
• ISO 3864-1:2002 - Safety Colors and
Safety Signs
• IEEE 902-1998 - Maintenance,
Operation and Safety of Power
Systems
• ANSI/ASSE a10.8-2001 - Scaffolding
Safety requirements
• IEC 61882 - HAZOP Studies Guide

Section 4:
Equipment Reliability

Objective
This subject area describes two kinds of
activities that apply to the equipment and
processes for which the maintenance and
reliability professional is accountable.
– First are those activities used to assess the
current capabilities of the equipment and
processes in terms of their reliability, availability,
maintainability, and criticality.
– Second are the activities used to select and apply
the most appropriate maintenance practices, so
that the equipment and processes continue to
deliver their intended capabilities in the safest and
most cost-effective manner.

Contents
• Determine equipment and process performance

expectations from the business plan
• Establish current performance levels and analyze gaps
• Establish a maintenance strategy to assure
performance
• Cost-justify (budget) tactics selected for implementation
• Execute a maintenance strategy
• Review performance and adjust maintenance strategy

Equipment Reliability
Failure Review
AWB
Parameters History
Asset Equipment
Strategy Criticality
CMMS

Determine equipment and process
performance expectations from the
business plan

Definition: Probability
What’s the chance of that happening?
The probability of an event occurring is the scientific measure of

chance which qualitatively expresses it’s likelihood.
Is a number between 0 and 1
•an event with a probability of 0 is an impossible event
•an event with a probability of 1 is certain.
In general terms, it is a measure of the likelihood that a particular
event will occur in any one trial, carried out in prescribed
conditions.

Definitions: Failures
Failures = loss of desired Function

Stoppage of plant due to malfunction.
Cessation of component function.
Performance below desired level.
Failure Rate (λ). is the number of failures per

unit of time is represented by
No of Failures/Operating Hours
Mean Time to Failure (MTTF) is the reciprocal of the constant
Failure Rate.
Operating Hours/No of Failures

What is Reliability?
• Reliability is the probability that an item

(component, equipment, or system) successfully
performs its intended function/s for a stated
period of time under specified conditions.
• For constant failure rates (do not change with

age), the “probability of not having a failure”
(Reliability) by time ‘t’ is:
− t/mttf
R(t) = e − λt
R(t) = e
• For Changing Failure Rate with Time
− ( t/η ) β
R(t) = e Weibull Equation
Reliability Exercise
• A particular electric motor manufacturer states that

their motors have an MTBF of 43,800 hrs (5 yrs).
What is the probability that a motor will operate
continuously without failure for :-
• 1 month? 1 year? 2 years? 5 years ? 10 years?
??% ??% ??% ??% ??%
− λt
R(t) = e
98.3% 81.9% 67.0% 36.8% 13.5%

Maintainability - How long will it take to fix?
• MTTR or Mean Time To Repair is the average time taken

from the failure of the system to the start up.
Total Downtime MTTR may often depend

on access and supply
No of Outages logistics.

Definitions: Availability
Is it up and running when I need it?

• Availability is the fraction of time that an item (component,
equipment, or system) can perform its required function.
• Availability is an important measure when system failure
can be tolerated and repair can be instigated and can be
represented by the expression:
A = MTBF Time Between Failure
MTBF+MTTR Total Operating Time

Definitions: Maintainability
Will I be able to restore the system?
• Maintainability is the ease that a system will be

returned to an operational state within a given period of
time
• A common measure is Mean Time to Repair (MTTR)

RAMS Defined
Asset Management needs to consider…
• Reliability
RAMS • Availability
• Maintainability
• Safety*
in order to make asset performance

decisions that meet their business goals.
S is for Supportability in Defense but in industry Safety is more appropriate.

RAMS: Example
• Volvo has a model 240GL guaranteed to start

999 times out of 1000 starts and a fix it response
You need a time of same day in Capital cities and 14 days for
rural areas
car that is
reliable • Toyota have a Land cruiser model that is also
guaranteed to start 999 times out of 1000. Toyota
guarantee a fix it response time of 7 days
anywhere in the country.
• A) Assume you only use the car in the city and

start your car 1000 times in a year. What is the
best choice of car?
• B) Assume you use the car in country areas.

Which is the best choice?

Equipment Criticality Analysis
• Equipment criticality is a weighted figure that

signifies the importance of the maintainable item
upon breakdown
• It is a classification technique that assesses
equipment into a predetermined number of
levels based on risk
• It can be used for:
– Prioritizing maintenance strategy development
– Work sequencing of maintenance activities
– Measuring effectiveness of maintenance

Criticality Description Examples
Safety, Environment protection systems that ensure
1 Critical the Technical Integrity of a plant
Critical path production systems and equipment that
on failure would stop production or effect quality
2 High immediately
Production systems and equipment that would
3 Medium reduce plant capacity but not necessarily stop it.
Ancillary devices that upon failure will not effect
production or cause financial loss to the
4 Low business.
Tooling or any non related equipment to plant or
process that would not have any impact to the
5 Non-Critical business upon failure

• Many techniques used for determining

equipment criticality that may include:
– Risk Matrices
– FMECA
– Simulation software
– Plant Knowledge/Experience

Establish current performance levels
and analyze gaps

Reliability Block Diagrams
If A has a Reliability
of 0.9 then the system
also has 0.9 Reliability
System fails if the single component A

fails because there is no open path
between the input and output.

Series Network
Component A Component B Component C System

Working Working Working Working
Failed Working Working Failed
Working Failed Working Failed
Working Working Failed Failed
Working Failed Failed Failed
Failed Working Failed Failed
Failed Failed Working Failed
Failed Failed Failed Failed
Simple Series Arrangement and Truth Table
Reliability System= R1 x R2 x R3

Lets extend our system to 100 blocks in series

where each block has a reliability of 0.99.
1 2 … 100
If each item has a reliability of 0.99 then the system

has a reliability = 0.99100 = 0.366 or 36.6%

Parallel Network
Component A Component B Component C System

Working Working Working Working
Failed Working Working Working
Working Failed Working Working
Working Working Failed Working
Working Failed Failed Working
Failed Working Failed Working
Failed Failed Working Working
Failed Failed Failed Failed
Simple Parallel Arrangement and Truth Table
If any of the three components failed

individually the system would not fail as
a path would still be open between the input
nodes and the output nodes.

Reliability of simple parallel system

= 1-(1-R1) x (1-R2) x (1-R3)

If reliability of each block is 0.9, what is the

reliability of the system?

If each item has a reliability of 0.9

= 1 – (0.1 x 0.1x 0.1) = 0.999 or 99.9%


Increasing Complexity by
Incorporating Series and Parallel
Relationships
Availability Simulation
1. Define the success path
2. Input the Reliability and Maintenance

Parameters
3. Check system performance meets goals
4. Implement
5. Improve

1. Define Success Paths
• What equipment needs to be in an operational state in order for
the system to operate over the specified life.
• Is there redundancy?
warm standby, cold standby or buffers.
• Critical Failure Modes that can cause downtime.
• Max Sustainable Capacity of Equipment

2. Input Failure Models
• Failure Behavior
using Weibull Failure data :
Parameters Failure Modes:
Dominant Failure Mode:

bearing wear, impeller/body erosion,
bearing wear
Failure effect unit shutdown if unscheduled failure
Equipment Item Wet end Shaft and bearings Drive motor
• Times to Repair or No. Items (population)

Dominant failure Mode
Characteristic
-
Erosion
Wear
5
Bearing failure
Random / Wear
15
Insulation & bearings
Random / Wear
Maintain by PM, Wear in failure rate

Age wear-in complete
Random Service Failure - .2 .066
Inspection,or Rate / yr
Age wear out begins 43800 17520 43800
Monitoring.
Mean wear out life 17520 8760 17520
Eta 1 17520 43800 132727
Beta 1 2 1 1
Gamma 1 43800 0 0
Eta 2 87600 17520
Beta 2 2 2
Gamma 2 17520 43800
Eta 3
Beta 3
Gamma 3
Corrective Mtce
Distrib Normal Normal Normal
Mean Repair time 12 12 4
Misc Costs - - -
ARF 1 1 1

2. Input Failure Models
• Define Crew Requirements
– Type of resource
– Logistics delay for corrective
• Define Spares Required

– Unit cost of Spares
– Logistics delay-site, depot, store,
manufacturer
– Carrying capacity
– Optimise holding levels

3. Simulate Performance
• Ensure system lifetime set.
• Simulate at desired level of

repeatability
• Compare Results to goals

– Unavailability, Reliability,
MTBF.
– Costs.
– Capacity.
• Importance ranking for further

improvement.

4. Identify Improvement Opportunities
• Consequences
ID D e scription Me a n Ca pa city
– Sort by capacity Digestion Digestion System 98.39
– Review low capacity Tank Tank 98.90
Pump Pump 99.79
blocks in model Piping Piping and Valves 99.99
Filters Filters 99.65
– See tank in this
example has largest
impact on Digestion Largest Impact on Capacity
capacity followed by
the pump

5. Improve
• Work completion
feedback to failure data
Plant Design
models.
Business
Decisions AvSim
Model
Assumptions
• Maximum Capacity
assumptions.
Plant
Availability
• Update model Records
• Forward Predictions
Exercise RBD
• RBD Exercise

Establish a maintenance strategy
to assure performance

Seven Questions of RCM
1. What are the functions of the asset?
2. In what way can it fail to fulfil it’s functions?
3. What causes each functional failure?
4. What happens when each failure occurs?
5. In what way does each failure matter?
6. What should be done to predict or prevent each
failure?
7. What should be done if a suitable proactive task
cannot be found?

RCM Maintenance Task Selection Logic
Is the failure evident yes Will the failure have
in the normal course a direct and adverse no
of operations? effect on
environment, health, Will the failure
no safety? have a
significant
yes cost impact.
yes
Is there an effective no no
Inspection or
Monitoring task? Is there an effective no
Preventive task?
yes yes
Develop Inspection Develop Preventive Redesign or Run To

Task Schedule Task and Accept Risk Fail
and/or monitoring Schedule. & Run to Fail
scheme.

Classical RCM Facilitator
Operation/
Maintenance
•Time Consuming Productions
Supervisor Supervision
•Resource hungry Maintenance

Operator Technician
•Lots of Documentation Technical Adviser

or Specialist
•Final decision is still subjective

•Hard to update
•Often becomes “shelf ware”
RCMCOST USING SIMULATION METHODS
OVERCOME THESE DIFFICULTIES
New Generation :
Maintenance Improvement Process
•Hard data link between failure impact and
maintenance task.
•Based on using a probabilistic approach to failure.
•Uses computer simulation to evaluate and
optimise decisions.
•Easily updated.
•Rapid.
•Collects knowledge from all sources.
RCMCost Simulation Software
•Advice for decision making

based on performance
simulation.
Hi Maint Costs Low Maint Costs
Low Failure Costs Hi Failure Costs
•Redundancy modeling.
•Cost Benefit comparison for
alternative maintenance
strategies.
Make your decisions
based on measurable
outcomes.

Implement
• Typical Groupings
– Daily operations tasks
– Weekly maintenance checks
– Regular monthly routines
– Scheduled overhauls or
shutdowns.
– End of Life replacement

RCM Exercise
• RCMCost Exercise

Cost-justify (budget) tactics selected
for implementation

Asset Life Cycle
•Define functional requirements
•Set reliability, maintainability, availability, safety (RAMS) targets
Conceptual •Use like-type data from similar plant, databases, experts to test design
Design
•Develop maintenance strategy, spares, manning
•Confirm reliability of detailed design
Detailed •Estimate life costs and compare cost/benefit of options
Design •Evaluate SH&E risk levels
•Develop contractor warranties
•Build plant
Implement •Implement maintenance strategy
•Develop performance metrics
and management processes
Thru-life to
End of Life
80-90% of life costs are
determined by management •Audit performance, solve problems
decisions made before here ! •Refurbishment/upgrades,
•Continuously improve reliability, reduce
cost and SH&E risk

Life Cycle Cost Analysis
• LCCA is an economic method of project evaluation in

which all costs arising from acquiring, owning,
operating, maintaining, and disposing are
considered.
• The objective of LCCA is generally to find the most
cost effective option from a series of alternatives.
• LCCA requires that future costs have to be
calculated by taking into account the time value of
money.
• LCC = Capital Cost + Present worth of Maintenance
and Operations - Present worth of Salvage value

Acquisition Costs
Sustaining Costs
Disposal Costs
Recurring Investment
Initial Investment
R&D
Operational costs
Disposal
Maintenance & Reliability Costs

Acquisition Costs
Lowest Cost of Sustaining Costs
Ownership Disposal Costs
$
Least Purchase Cost
A B C D
ti on ti on i on ti on
Op Op t Op
Op

Example: Control Valve
A control valve regulates the rate of flow from a storage tank into the
pressurised tank. Due to erosion caused by cavitation, the valve fails every
12 months at a cost of $4,000 per repair. With the existing components, the
motor power output is 23.1kW.
The following four options are suggested:
1. A new type of control valve can be installed. Pressure vessel
2. The pump impeller can be trimmed so that the
pump does not develop as much head. Storage tank
Control Valve
3. A variable frequency drive (VFD) can be
installed, and the flow control valve removed.
4. The system can be left as it is, with a yearly
Pump
repair of the flow control valve to be expected.
• The cost of a new control valve (Option A) that is properly sized is $5,000.
The cost of reducing the impeller diameter (Option B) is $2,250. By
reducing the impeller diameter, the motor power output will be 14.0kW. A
VFD (Option C) costs $20,000, and an additional $1,500 to install. The VFD
will cost $500 to maintain each year. It is assumed that it will not need any
repairs over the project’s 8-year life and will require 11.6kW to drive. The
option to leave the system unchanged (Option D) will result in a yearly cost
of $4,000 for repairs to the cavitating flow control valve.

Example: Control Valve
Pressure vessel
Storage tank
Control Valve
LCC Costs and Assumptions
Pump
• The current energy price is $0.08/kWh.

• The process is operated for 6,000 hours/year.
• The company has an annual cost for routine maintenance for
pumps of this size at $500 per year, with a repair cost of
$2,500 every second year.
• There is no decommissioning cost or environmental disposal
cost associated with this project.
• This project has an 8-year life.
• The interest rate for new capital projects is 8% and an
inflation rate of 4% is expected.

Example: Solution
Option A – Change Control Option B – Trim Impeller Option C – VFD & remove Option D – Repair Control
Valve control valve Valve
Initial Investment Cost $5,000 $2,250 $21,500 $0
Energy Price (present) per kWh $0.080 $0.080 $0.080 $0.080
Weighted average power of 23.1 14.0 11.6 23.1

equipment in kW
Average operating hours/year 6,000 6,000 6,000 6,000
Energy cost/year (calculated) = $11,088 $6,720 $5,568 $11,088

Energy price x Weighted
average power x Average
operating hours/year
Maintenance cost (routine $500 $500 $1,000 $500

maintenance/year)
Repair every 2nd year $2,500 $2,500 $2,500 $2,500
Other yearly cost $0 $0 $0 $4,000
Downtime cost/year $0 $0 $0 $0
Environmental cost $0 $0 $0 $0
Decommissioning/disposal $0 $0 $0 $0
(Salvage) cost
Life time in years 8 8 8 8
Interest rate (%) 8.0% 8.0% 8.0% 8.0%
Inflation rate (%) 4.0% 4.0% 4.0% 4.0%
Present LCC value $91,827 $59,481 $74,313 $113,930

Example: Solution

Review performance and adjust
maintenance strategy

The Weibull Distribution
Why Important?
• One of the most widely used distributions
• Highly flexible
• Best fits many real world applications:
• Weibull distribution represents the life of components and
parts whereas the Exponential distribution represents the life
of assemblies and systems
• Mechanical components: ball bearings, motors, fatigue failure
of some simple structures
• Failures where chemical actions are a predominant
mechanism

Example
• Component A
– First install lasted 10hrs
– Second Install Lasted 100hrs
– Third Install 190hrs
• Component B
– First install lasted 99hrs
– Second Install Lasted 100hrs
– Third Install 101hrs
• What is the MTBF of Component A

• What is the MTBF of Component B
• Would they require different maintenance?

Advantages of Weibull Analysis
Primary advantage of Weibull is the ability by the

analyst to use few data points to make failure forecasts.
This means that it is possible to use data as the first
few failures emerge and decide appropriate action
before more failure data is generated.
This gives the reliability engineer the tool to model
failure behavior, make decisions on future performance
levels, determine warranty periods, and confirm B10
lives.

Bathtub Curve
The Weibull Distribution was invented in 1937 by

Waloddi Weibull.
High
Increasing
Probability
Probability
of death
of death when
when young
past the
“wear out”
age
Age In Service

Three Zones: Failure Behavior
Weibull parameters can describe any failure
behavior over an asset’s lifetime using any of the 3
zones of the bathtub curve.
Zone 1 Zone 2 Zone 3
Infant Mortality Random Failure Wear Out

Probability of Beta < 1 Beta = 1 Beta >1 − ( t/η ) β
Failure
R(t) = e
Age In Service

Failure Behavior Patterns
Reliability Centered Maintenance recognizes
6 different combinations of Age-Reliability
Patterns.
A
B
C
D
E
F
Failure Behavior: Aviation Study
• Failure patterns
– Type A – Bathtub (4%)

– Type B – Worst old (2%) Failure
percentages from
– Type C – Slow ageing(5%) aviation industry
– Type D – Best new (7%) study
– Type E – Constant (14%)

– Type F – Worst new (68%)

Characteristic Life = 63.2% Life
For random failures with constant failure rate,
63.2% of items will have failed by the MTTF. This
point is known as the Characteristic life (in
Weibull terms η).
100
Substitute T=MTTF
Into Weibull Formula
And calculate R.
63.2%
MTTF

Gamma: The Location
Parameter
Each zone commences at Gamma - γ
Gamma 1 Gamma 2 Gamma 3

Weibull and the Bathtub Curve
Each zone commences at Gamma - γ
Beta<1 Beta=1 Beta>1
Eta 1 Eta 3
Eta 2
Gamma 1 Gamma 2 Gamma 3

Failure Curves
If we know
β the shape of the curve and
η the characteristic life and
γ the failure free period
we can predict the probability of behavior over
any future time.
Failure curves can be determined from

test data
history
engineering judgment

Weibull Analysis of Boiler Tubes
What use is the Weibull Formula?
Based on our practice of overhauling boiler tubes

every 4 years, what’s the probability of getting
through the next 4 years without a failure?

Summary Of Reliability Methods
• Pareto Analysis: 80:20 rule. Address Important Items

• FMEA Identify Failure modes sorted by Severity
• FMECA Identify Failure Modes sorted by Criticality
• RBD Identify Important bottlenecks in a system
• RCA Identify Causes and Find Effective Solutions
• RCM Choose optimum maintenance tasks
• RAMS Consider reliability at design
• LCC Compare costs over whole of life

What Method Would You Use
Here?

Standards
• NFPA 1915 - Standard for Fire Apparatus

Preventive Maintenance Program.
• IEEE 516-2003 - Guide for Maintenance
Methods on Energized Power Lines
• IEC 60300-1 - Dependability Management -
Part 1: Management Systems
• SAE JA1010/1 - Maintainability Program
Standard Implementation Guide

Section 5:
People Skills

Objective
This inventory describes processes for

assuring that the maintenance and
reliability staff is the most qualified and
best assigned to achieve the
maintenance and reliability organization
goals.

Contents
• Assess organization competence and

direction
staff
• Communicate maintenance and reliability to
the organization

Assess organization competence and
direction

What is Competency Assessment?
Performance is “normally” the fundamental

driver for wanting competence
development:
– It equips people to perform and achieve in
new areas
– Optimizes existing performance

What is Competency Assessment?
• Is a process where the competencies

that needed for performance are
defined
• The use of these competencies is then
assessed relative to how an individual
uses them to produce on expected
outputs or results.

Types of Competences
• Functional
These are the professional and work related competences, assessed as
highly necessary in order to perform the assignments of a job in a specific
field or category.
• Business
Business skills are competences of a more generic nature which partly link
to general overall knowledge of business relations and partly to a more
industry-specific understanding of e.g. market dynamics, customers,
technology utilization etc.
• Personal
Personal skills refer partly to a person’s personality and partly to real
competences; for example communication skills, interpersonal skills, etc.
Leadership skills
• Leadership
Primarily focus on the leadership dimension, and not so much the
management dimension of the leadership term.

Types of Competences
Anti-Clockwise Clockwise
Left brain functions Right brain functions
Uses logic Uses feeling
Detail oriented “Big picture" oriented
Facts rule Imagination rules
Words and language Symbols and images
Present and past Present and future
Maths and science Philosophy & religion
Can comprehend Can "get it" (i.e. Meaning)
Knowing Believes
Acknowledges Appreciates
Order/pattern perception Spatial perception
Knows object name Knows object function
Reality based Fantasy based
Forms strategies Presents possibilities
Practical Impetuous
Safe Risk taking

Implementing Competency Assessment
• Many requirements must be met before an

organization can install a formal competency
assessment process:
• What work outputs or results are expected of the
employee?
• How do the outputs or results contribute to meeting
the organization’s strategic goals or business
objectives?
• How is the work performed? What tasks are
performed?
• What competencies or tools must the employee use
in order to have successful performance relative to
the information revealed earlier?

Competency Matrix
Training
Course
Event
Hazop Plant Faultree Reliability
Weibull Tree
FMEA RCM RBD LCC Analysi Capacit Analysi Program
Data Analysi
s y s Mangmnt
s
REL 101
Reliability
Roadmap
I I I I
REL 102
Reliability Methods I I I I I I I I
RCM 201
Maintenance
Optimisation
W W W I
RBD 201
Plant Availability
Simulation
W W I
RCM301
Advanced RCM ADV ADV ADV
RBD 301
Plant Capacity
/Debottlenecking
ADV I W
LCC 301
Lifecycle Cost
Calculations
W
FTA 201
Fault Tree Training. W W
HAZ 201
Hazops W
REL 401
Reliability
Leadership W
REL 402
Managing
Reliability Projects ADV ADV ADV ADV ADV ADV
I= Introductory, W=
= Working Knowledge, = Advanced
Knowledge ADV=

Develop the maintenance and reliability

Types of Maintenance Organizational
Structures
• Central Maintenance. All crafts and related
maintenance functions report to a central
maintenance manager.
• Decentralized. All crafts and maintenance
craft support staff report to operations
• Distributed. A combination of the above.
Typically centralized maintenance leadership
function, with maintenance and reliability staff
functions reporting here. Crafts are in some
proportion allocated to production units and
to a central maintenance function.

Typical Reactive Organizational
Structure

Typical Proactive Organizational
Structure

Develop the maintenance and reliability
staff

Training Needs Analysis
• A Training Needs Analysis (TNA) is used to assess an
organization’s training needs
• The root of the TNA is the gap analysis.
• This is an assessment of the gap between the knowledge,

skills and attitudes that the people in the organization
currently possess and the knowledge, skills and attitudes that
they require to meet the organization’s objectives.

Training Needs Analysis
The output of the needs analysis will be a document that
specifies why, what, who, when, where and how.
• Why do people need the training?

• What skills need imparting?
• Who needs the training?
• When will they need the new skills?
• Where may the training be conducted? and
• How may the new skills be imparted?

Reliability Specialists Training
Lev 1 Lev 2 Lev 3 Lev 4 Lev 5
Introductory Skill Advanced Leadership Specialists
Building Skills Skills Courses
REL 102 RCA 201 RCA 301 RCA 401 RCA 501
Reliability Apollo RCA Super User RCA for Failure
Methods Practitioner Workshop Managers Reporting
RCM 201 RCM 301 REL 401 RCM 501

Maintenance Advanced Reliability Mobile
Optimization RCMCost Leadership Plant
RBD201 RBD 301 REL 402 RCM 502

Availability Advanced Reliability Grinding
Simulation AvSim Projects Plant
HAZ201 LCC301 RCM 503

Hazops Lifecycle Electrical
Cost Plant

Development of Training Materials
Some considerations when during this phase are:
• How complex is the training that is needed?

• How much time do learners have to learn the new
knowledge and skills?
• How much money is available to pay for the training,
whether in-house or using a consultant?
• How capable are learners to undertake the training?
• What are learner's learning preferences and styles?

Evaluation of Training Programs
LEVEL 1 – REACTION How did participants react to the

program?
LEVEL 2 - LEARNING To what extent did participants improve

knowledge and skills and change
attitudes as a result of the training?
LEVEL 3 - BEHAVIOUR To what extent did participants change
their behaviour back in the workplace as
a result of the training?
LEVEL 4 - RESULTS What organizational benefits resulted
from the training?

Key Issues in the Success of Training
Programs
Trainee Readiness
• Positive employee attitudes toward training programmes
are critical for training success, the individuals potential for
training success, does the trainee have the aptitude to learn
Training Programme Structure
• When and how often does training take place
• How long are the training sessions
• How much guidance and individual attention does each
trainee receive
• Practice makes perfect - over learning the material
• Continuous or spaced over time
• Segment the material into parts or present the material as
a whole (whole learning)
Communicate maintenance and
reliability to the organization

Typical Operations
• A look at our maintenance supervisors will

reveal some interesting insights about the
work culture we have created.
• In our reactive model, one of the supervisor’s
primary responsibilities is the immediate
correction of an equipment breakdown
• How many of your supervisors carry radios?
Why? In general, the answer will be, “So they
can respond to an emergency faster

Typical Operations
• As we move toward a more proactive

maintenance philosophy, the culture we start
with is firmly entrenched in a reactive mode.
• The expectations, attitudes, and even the
rewards system have evolved to support the
reactive world we have grown up with. How
will we change?
• What can we do to change the mindset we
have worked so hard to create?

Reactions to Change
• Maintenance supervisors. Let’s face it.

Working in the truly proactive work place can
be pretty boring.
• Especially if your whole working life has been
filled with the challenge and excitement of
fighting fires—and winning.
• The other reality of the transition to a
proactive maintenance environment is that it
generally starts with the equipment in
relatively poor condition

Reactions to Change
• When now confronted with an organizational

change to a proactive work environment, the
usual reaction of supervisors who have
generally been on the forefront of the fire
fighting is “it’ll never work.”
• The supervisors actually are key personnel
as to whether the change from reactive to
proactive maintenance will work

Reactions to Change
• Maintenance technicians. The reaction by

craft technicians to a change to proactive
maintenance practices is slightly different.
• In our reactive world, craft technicians were
often the ones “planning” the job—planning
in the sense that they needed to visit the
work site, determine how the work should be
done, identify parts and tools required, etc

Reactions to Change
• Operations personnel. The reaction to the

proactive model by operations personnel is
generally the same, whether they are
supervisors or operators.
• Their reaction is based on the “training” and
expectations we have set for them in the
past.
• As stated earlier, operations has been
accustomed to maintenance rushing out to
fight the fire.

Reactions to Change
• Senior management. The reaction of more

senior plant officials is sometimes the most
confusing.
• After all, it is likely that these are the
individuals who have driven the change to a
proactive maintenance strategy.
• It is their budget dollars that are fueling the
change.
• However, these are the individuals who very
often have the largest negative impact on the
success of the move to proactive
maintenance.

Reactions to Change
• The bad news here is that senior managers

may have the greatest impact, even negative
impact, on the success of the transition to
proactive maintenance.
• Even when the senior managers have
intellectually accepted the benefits of the
change to proactive maintenance, they may
still react to equipment failures with the knee
jerk reaction they have operated on for years.

Preparing for Change
• When most organizations begin the process

of moving to a proactive maintenance model,
time is initially spent on very tangible acts,
such as upgrading the CMMS, improving
maintenance processes and procedures,
rewriting preventive maintenance tasks, etc.
• These are the tasks that are easily defined,
can be estimated and scheduled, and
generally produce a very concrete result.

Preparing for Change
• It is imperative that when an organization

embarks on the transition to proactive
maintenance that the intangible soft side
tasks be addressed from the very beginning
of the project.
• Even when an organization acknowledges
that there is a soft side to the process, the
tendency is generally to begin with the
concrete deliverables and leave the softer
issues to later.
• In far too many instances, later never arrives.

Communicating the Vision
• Many proactive maintenance processes

fail not because of poor implementation
tools but because of the lack of a good
communication plan
• Staff needs to know what you are
planning to do before you announce
that you are doing it

• Communications strategy may be as simple

as town meetings with all personnel invited
• To facilitate ownership and commitment to
the vision a strategy of having teams of
senior staff deliver the message to their
respective departments may be employed.
• The main purpose of being formal with a
communication strategy is to assure a
consistent message is delivered to all
personnel.

• As you build your vision and as you discuss

that vision with your senior staff, you must
look, listen, and feel for any telltale sign that
the members of your staff are not on the bus
with you.
• You may have to go outside your staff
meetings and more formal interfaces with
your staff and test to see if they are saying
the same things to their peers and
subordinates as they are saying in front of
you.

• Listening is an important part of the

communication plan you initiate.
• Your employees will have fears and concerns
about how they are going to act in the new
proactive world.
• With no experience to draw upon, they may
not understand what will be expected of
them. It is important to listen carefully to their
concerns and address them

Review the rewards system
• In the reactive work place, many of our rewards exist
only because equipment fails. As we transition to the
proactive maintenance process, it would not be
appropriate to remove all such rewards.
• However, there should be new rewards created that
recognize outstanding performance in the area of
failure prevention.
• It may be a good time to check your personnel
reward system.
• How do you treat the firefighter vs the individual who
did something less flashy behind the scenes and
prevented a failure?

Standards
• ASQ Q10015:2001 - Quality

Management Guidelines for Training.
• ISO 8152:1984 - Training of Mechanics
for Earth-moving Machinery

Section 6:
Work Management

Objective
This subject area focuses on the skills

used to get the maintenance and
reliability work done. It includes
scheduling and planning activities,
quality assurance of maintenance
activities, stores and inventory
management.

Contents
• Comprehensive work identification
• Plant wide formal prioritization system
• Effective work planning prior to scheduling
• Effective work cooperative work scheduling and backlog
management
• Effective resource management (people materials financial)
• Document work execution and update records / history
• Equipment history review and failure identification
• Effective performance measures and follow up
• project planning
• Effective use of information technologies (CMMS)

Work Management Process
Identify
Plan Work CMMS
Work
Schedule Measure
Work Performance
Work Close
Execution Workorder

Comprehensive work identification

Identify Work
• The Work/Service Order is the heart of the Work

Management Process and is the tool for:
– Identifying the task, location, priority and when
required
– Planning the job, describing the necessary procedure
– Identifying all resources, equipment and material for
the job
– Identifying Safety, Environmental and Quality
standards
– Planning the cost, duration and time of the job
– Collecting all job costs

Identify Work

Identify Work
Total Cost
Direct Curve
Breakeven Point
Cost of
1-2 years
Maintena
nce
Savings
Planned PM
20-70%
Predictive
20 –50%
Planned
Proactive
50-80%
Reactive
maintenance
30-80%
Time Source: Taking the Forties to 2010, RLThomson, et al.

BP Exploration , presented at SPE International Offshore European Conference, Aberdeen,
Scotland, Sept 1993.

Types of Maintenance Actions
• Choice of Four Types Of Maintenance Actions:
Corrective Maintenance
Breakdown
Planned
Predictive Maintenance
Preventive Maintenance
Proactive Maintenance

• Corrective Maintenance (Breakdown)
– Heavy but hidden cost

– Preventive maintenance is minimized
– Low plant reliability
– Only cost effective if consequence of
failure are minor

• Corrective Maintenance (Planned)
– Repairs uncovered as a result of a

developed maintenance strategy
– This type allows us to determine the
success of the maintenance strategy

• Predictive Maintenance
– Condition based maintenance

– Usually non intrusive techniques
– Human senses
– Trend potential failure signs using techniques
such as vibration, thermography, ultrasonics,
acoustics, magnetic particle, performance tests
– Fixed frequency or continuous monitoring

• Task Frequency Determination
– On condition tasks
• Point at which failure is evident is known as
potential failure time
• Point of final failure known as failure time
• Time between potential failure and failure is
known as P-F interval

• P-F Interval
Failure Potential Functional
Resistance
Failure Failure
x
x
Age
P-F Interval
or warning time

• Predictive Maintenance - Vibration Monitoring
• Imbalance – Predominantly a large

peak at 1 x RPM
• Angular Misalignment – 1,2 3 x RPM
and stronger in axial plane
• Offset Misalignment – 1,2 3 x RPM
and stronger in radial plane
• Mechanical Looseness – Displayed

by multiple peaks x RPM. Can often
exhibit a ½ peak as well
• Predictive Maintenance - Infrared Thermography
Example of a loose
connection causing
excessive heat
shown by the yellow
zone above 65C

• Preventive Maintenance (Time Based)
– Periodic overhaul
– Open and Inspect
– Fixed time schedule
– Required to avoid equipment failure
– Reliability decreases with age
– Preventive maintenance can restore lost
reliability

Prob of fail
PM Tasks extend the

life and prevents
equipment entering wear out zone!
Age
Wear out
Maintain before wear out
• Daily Routines
– Clean
– Adjust
– Lubricate
• Periodic Overhaul
– Refurbish
– Planned shutdowns- to make as good as new
• Planned Replacement
– Discard equipment and renew

• Proactive Maintenance
• Key Driver
– Root Cause Analysis to continuously
improve to eliminate defects
– Focuses on extending the life of
equipment through ongoing analysis

Plant wide formal prioritization
system

Work Priority
• To ensure each job is adequately attended, it is

important to assign a priority to the task
• Priority can be defined as the relative
importance of a task in relation with other tasks
• Typically based on the urgency of the job and
used to ensure:
– Critical tasks are completed in time
– Best use of maintenance resources
– Maintain end-user satisfaction (Operations, Client,
Customer)

Work Priority
• A typical priority system may include the

following categories:
– 1: Critical (Immediate)
– 2: High (Within 24 Hours)
– 3: Medium (Within 7 Days)
– 4: Low (Within 1 Month)
– 5: Hold (Shutdown Work)

Work Priority
• The Emergency priority is for a task that is required to
remedy a situation that is an immediate safety or
environmental concern as a result of equipment failure
or safety protection system. The response time for such
task is usually immediate and would not sit on the
backlog for more that 24 hours. In addition this type of
priority would not appear on a weekly planning schedule
due to the urgent nature of such work.
• The High priority is required for tasks in critical plant
where equipment failure has caused or has potential to
cause major downtime or quality problems where no
redundancy is built into the system.

Work Priority
• The Medium priority is used for critical plant that may
have backup capabilities and tasks that do not cause
lengthy production downtime or disturb product quality.
• The Low priority is required for ancillary plant, non-
critical equipment, tooling or any other type of task that
does not affect operations or product quality in any way.
• The Hold priority covers a number of stages of a work
order that are usually difficult to place a meaningful
priority against. Some of these special conditions may
include shutdown work, work requiring special approval
and overhead work such as training that may be open
for lengthy periods.

Effective work planning prior to
scheduling

Work Planning
• Work that must be performed by the maintenance

department will ultimately identify itself.
• This type of practice is considered “reactive” where
tradesmen are simply dispatched to "fix it when it fails"
ending up costing on average 2-3 more times than a
planned repair.
• This increased maintenance cost is due to the
inefficiency at which the labour force is able to provide
such a corrective repair and is influenced by:
– Undefined scope of work
– Parts and equipment unavailability
– Excessive overtime or callout costs
– Decreased productivity

Labour Planning
• To ensure the work can

be completed it is
essential that the
necessary labour is
estimated
• The trade, number and
task duration is required
to enable capacity
levelling of the available
workforce

Materials Planning
• To improve planning of parts it is important that

spare part identification can be made quickly
and efficiently
– Application Part List (APL) is a standard list of parts
for a specific job and is predefined in the CMMS
– Bills of Materials (BOM) is the parts and components
that make up a piece of equipment
• For each work order that is planned, the
materials are ordered and prepared and verified
on site prior to work order is issued

Bills of Materials
• Allows for rapid part

identification in an
emergency
• Enables planned
work to be detailed
with ease
• Increases efficiency
of maintenance
department

Workpacks
• A workpack is a document that is given to the team
responsible for the execution of a work order and
comprises of all the detailed information to complete the
task safely and efficiently.
• A typical work pack may contain:
– Work Order Ticket
– Work Instructions
– Gantt Schedule
– Drawings
– Checklists
– Material Safety Data Sheets (MSDS)
– Plant Isolations
– Job Safety Analysis (JSA)

Effective work cooperative work
scheduling and backlog management

Work Scheduling

Work Scheduling
• Ranking Index for Maintenance
Expenditure (RIME)
• A system used for work sequencing
originating from the US Navy
RIME – Work Priority x Equipment

Criticality

Work Scheduling
• Typically both
values are
weighted so
as to ensure
that there are
no 2 values
the same

Effective resource management
(people materials financial)

Productivity
• Productivity can be measured by recording

the delays caused preventing trades from
effective tool time.
• Delays may include waiting for:
– Permits
– Spare parts or equipment
– Bad weather
– Travel to work location
• Productive and non productive work is
recorded at the timesheet level and analyzed
to improve non productive time

Productivity
• Productivity can be measured against estimating

norms for benchmarking purposes.
• An example is from a library by John S Page that
includes:
– Estimator's Piping Man-Hour Manual, Fifth Edition
– Estimator's Electrical Man-Hour Manual, Third Edition
– Estimator's Equipment Installation Man-Hour Manual
• These sources are commonly used for estimating
shutdown durations

Spares Optimisation
• To aid in the efficiency of the maintenance workflow,

materials management is an integral part.
• It is essential that the parts on hand be adequate to
meet the needs of all work in progress and
emergencies, so that each maintenance function be
fully served: not too many, not too few.
• Slow-moving spares are generally responsible for a
large part of the inventory value of any organisation.
• They tend to be expensive and, although only
accounting for perhaps 20% of the inventory items,
they often represent 60-80% of the inventory capital
tied up

Spares Optimisation
Holding too many
• The optimum parts holding spares increase
procurement costs
is that level of spares and warehouse
Costs to the business

space
which incurs minimum total
impact to the business as Not holding
a whole i.e. the minimum spares, risk can
exponentially
combination of holding increase
costs (i.e. storage costs,

in-storage maintenance
costs etc.) against the risk
exposures to the
consequences of part
unavailability when needed
(usually equipment Optimal level of
spare
downtime costs).

Spares Optimisation
• Exercise spares optimization

Stores Efficiency
• A well labeled store ensure that parts can be found and

identified when needed
• Optimisation of suppliers utilized can reduce the amount
of duplicate parts and costs of inventory maintenance
• Bills of Materials enable fast sourcing of the correct
spare
• Part naming conventions can assist in also reducing
duplicate parts and also improve part searching. Some
examples may include
– Mescode – 12.3.443.123
– AUSLANG – Bearing, SKF 6310, Ball

Cost Management
• Activity Based Cost Profile
Budgeting enables
Effects
18000
Labor
Equipment
costs to be managed 16000

Spares
Operational
bottom up 14000
Alarms
Commission
12000
• Costs are rolled up

Redesign
Cost per Interval

10000
by cost centers to
systems or major
8000
plant areas
6000
4000
• Work orders are 2000
created and planned 0
to execute the 0 8760 17520 26280 35040 43800
Time
52560 61320 70080 78840 87600
activities

Cost Management

Cost Management
Area Manager
• Clear roles and

responsibilities need
to be in place to
ensure that
accountability is held
for cost control at all
levels

Document work execution and
update records / history

Problem Reports
• Properly defined problem reports enable criticality
of problem to be assessed.
• Enables appropriate priority and resources to be
assigned to repair problem
• Problem reports should be raised for a
maintainable item
• The problem report should describe the functional
failure
• i.e. not - pump broken
• but - pump delivering no product

Problem Reporting
If we can get operators to define the problem
and include:
what is not happening…
when…
where…
and why the problem is significant to them
Safety hazard
Losing production throughput
Increasing wastage
Then maintenance can go to work to identify the

causes.

Importance of Learning From
Each Failure
When a component fails, a valuable piece of
information about it has been generated because we
have the opportunity to learn how to improve the
component if we take the right actions
“If maintenance record the failure modes

and the causes then the data collected will
help avoid future recurrence”

Problem Reporting
Tailings Dam Pump 26/01/98 TTF

pump failed 1/02/98 144
Beta =1.1
Problem Reporting
Tailings Dam Pump Mode 26/01/98 TTF
Pump Brgs. seized 1/02/98 144
Pump Worn shaft 2/07/98 3768
Seized bearings Beta = 0.5
Worn shaft Beta= 2

Problem Reporting
Problem solving is a way of thinking and needs to be taught
Apollo Root Cause Analysis - Method of Approach

Step 1: Define the problem by writing the: Step 3: Identify effective solutions
What Challenge the cause and offer solutions
When Identify the best solution, they must:
Where Prevent recurrence
Significance Be within your control
Meet your goals and objectives
Step 2: Create a cause and effect chart Step 4: Implement the best solution
For each primary effect ask why
Look for causes in actions and conditions
Connect causes with a caused by?
Support causes with evidence

Equipment history review and
failure identification

Defect Elimination
PARETO
CMMS Analysis
Define
Implement Problem
Solutions
Identify Cause &

Solutions Effects

Pareto Analysis.
Downtime
90
80
•The Pareto principle (also known as the 80-20 70
60
rule), the law of the vital few states:- 50
40
Downtime
30
“for many events, 80% of the effects comes 20
10
from 20% of the causes”. 0
Elevator Incline Ball mill Centrifuge Weigher
Belt
Named after Italian economist Vilfredo Pareto,
who observed that 80% of income in Italy went
to 20% of the population. This graph shows 80%
of downtime caused by
4 equipment items.
Work on the Vital

Few.

Building a Pareto Chart
1. Decide the measure that you are

interested in.
2. Decide what you will plot the measure
against- cost, failures, downtime etc.
3. Calculate percentage contribution.
4. Sort the data from highest to lowest
5. Create plot using a bar chart.

Typical Pareto Relationships in
Reliability
Measure X Axis
Downtime Process Unit
Maintenance Costs Equipment
Number of Failures Failure Modes
Failure Effect Costs Failure Modes
Total Maintenance Hours Type of Equipment
Safety Incidents Type of Incident

Pareto Example
• Extracting data from the

CMMS may at times be
difficult.
• There are solutions that
connect to these systems
to enable east analysis of
data
• Decisions then can be
made to prioritise RCA or
review the maintenance
strategy

Root Cause Analysis (RCA)
Problem Solution

Root Cause Analysis (RCA)
Ineffective Problem Solving
• Incomplete Problem • Storytelling
Definition • Do Not Understand
• Categorization Cause and Effect
• Stop Analysis Too Soon • “Right” and “Wrong”
• Need to Place Blame Answers
• Failure to Involve • Emotional Response
Stakeholders • Belief in a Single
• Bias to Past Reality
Experiences

Problem Solving Steps
Problem
Cause & Effect

Relationships
Solutions

Root Cause Analysis Helps Eliminate
Recurring Equipment Failures.
Action
Caused
•Establish Cause and Effect culture in Effect
By
addressing day to day and major incidents.
Condition
•Empower workforce teams to find solutions.
•Improve work requests and historical data.

Apollo RCA
Empower workplace
teams to eliminate
problems.

Effective Problem Solving:
The Apollo Four Step Method
1. Define the Problem
2. Create a Cause & Effect Chart
3. Identify Effective Solutions
4. Implement the Best Solutions

Defining the Problem
• What: What is the problem?

• When: When did it happen?
• Where: Where did it happen?
– Significance:
• Safety
• Environmental
• Production/ Service
• Maintenance
• Frequency

Cause and Effect Chart
CAUSE /
EFFECT
CAUSE/ CB
EFFECT CAUSE /
EFFECT
CB
PRIMARY
EFFECT
CAUSE /
CAUSE/ CB EFFECT
EFFECT
CB= Caused By CAUSE /
EFFECT

Add Evidence
CAUSE /
EFFECT
CAUSE/ CB Evidence
EFFECT CAUSE /
Evidence EFFECT
CB
PRIMARY Evidence
EFFECT
CAUSE /
CAUSE/ CB EFFECT
EFFECT Evidence
CB= Caused By CAUSE /

Evidence
EFFECT
Evidence

Find Solutions
CAUSE /
Solution
EFFECT
CAUSE/ CB Evidence
EFFECT Solution CAUSE /

Solution Solution
EFFECT
CBSolution Evidence
PRIMARY Solution
Evidence
Solution
EFFECT
Solution CAUSE /
Solution
CAUSE/ CB EFFECT
EFFECT Solution
Evidence
CB= Caused By Solution

CAUSE /
Evidence Solution
Solution EFFECT
Solution Evidence
Solution

The Solution Process
• Challenge Each Cause And Offer

Solutions
• Identify the Best Solutions
• Check that it meets Criteria
• Calculate Value Add and ROI

Solution Matrix
Within Meets our
Prevents our Goals and
Cause Solution Recurrence Control Objectives Cost
Relied on
statement from Rely on drivers
guard memory instead NO NO NO
Ask Inventory
Manager No YES YES
Place large signs
No Signs on tank No YES YES
Tank contained Store acid in off-site
Acid facility YES YES NO
Fittings on hose Make unique
match fittings on fittings for different
tank materials YES YES YES $5,000
Total $5,000

Compare to Value of Problem
What: Caustic Mixed with Acid
When: 0915 August 18th, 2000
While offloading truck containing caustic.
Where: Morristown, NJ / Acid-Caustic Storage / Acid Tank
#3545 / Truck #42
Significance:
Safety: Potential Multiple Fatalities & Serious Injuries
Environmental: Hazardous Release
Lost Revenue: Lost Product $15,000
Additional Cost: Cleanup $27,300
Total: $42,300
Frequency 2nd Time in 12 Months

Return on Investment
Cost of Problem
(Cost of Solutions) + (Cost of

Investigation)
$42,300
$7,000 +$2,000
= 470%

Effective performance measures
and follow up

Corrective Maintenance Cost
Corrective Maintenance Cost is the percentage of maintenance costs that are used
to restore equipment to a functional state after a fault recognition:
Corrective Maintenance Cost (%) = Corrective Maintenance Costs x 100

Total Maintenance Cost
Corrective Maintenance Costs: Labor, material, services, and/or contractor cost

for work done to restore the function of an asset after failure or imminent failure.
Total Maintenance Costs: Expenditures for maintenance labor (including

maintenance performed by operators, e.g., TPM), materials, contractors, services,
and resources. Include all maintenance expenses for
outages/shutdowns/turnarounds as well as normal operating times. Include capital
expenditures directly related to end-of-life machinery replacement (this is necessary
so that excessive replacement – vs. proper maintenance – is not masked.) Do not
include capital expenditures for plant expansions or improvements. Maintenance
costs are for activities on work orders (i.e., tied to a work order).

Maintenance Training Costs
Maintenance training costs are the dollar expenditures for the
formal training that maintenance personnel receive annually. It is
expressed as costs per employee.
Training Costs per Employee = Total Training Costs

Number of Maintenance Employees
Total Training Costs: Includes all costs for formal training that are directed at
improving job skills. Training costs should include all employee labor, travel
expenses, stationary, registration fees, instructor fees, etc.
Maintenance Employees: All personnel, salaried and hourly, direct and indirect,
that are responsible for executing work assignments pertaining to the care
(maintenance) of physical assets.

Actual Cost to Planning Estimate
Costs
Actual Cost to Planning Estimate is the ratio of the actual cost incurred on
a work order to the estimated cost for that work order.
Actual Cost to Planning Estimate = Actual Work Order Cost x 100

Planned Cost
Actual Work Order Costs: The Cost of the Work Order after it is closed.
It includes trades (Mechanic, Operator, Electrician, etc.), Service
(Contractors, Vendors, etc.), and Material requirements (Repair Parts).
Planned Costs: The Planner’s estimate of what it should cost to complete

the Work Order at the point when the planning is complete, and the work
order is sent for approval. It includes trades (Mechanic, Operator,
Electrician, etc.), service (Contractors, Vendors, etc.), and material
requirements (Repair Parts). Contingency allowances are not to be
included.

Planning Variance Index
The percent of work orders closed where the actual cost varied by within
+/- 20% of the planned cost.
Planning Variance Index = [(Number of closed work orders where actual costs are within
20% of planned cost)/(Total number of work orders closed)] x 100
Actual Work Order Costs: The Cost of the Work Order after it is closed.
It includes trades (Mechanic, Operator, Electrician, etc.), Service
(Contractors, Vendors, etc.), and Material requirements (Repair Parts).
Planned Costs: The Planner’s estimate of what it should cost to complete

the Work Order at the point when the planning is complete, and the work
order is sent for approval. It includes trades (Mechanic, Operator,
Electrician, etc.), service (Contractors, Vendors, etc.), and material
requirements (Repair Parts). Contingency allowances are not to be
included.

Proactive Work
Proactive work is the sum of all maintenance work that is completed to
avoid failures or to identify defects that could lead to failures (failure
finding). It includes routine preventive and predictive maintenance
activities and work tasks identified from them.
Proactive Work % = [(Work completed on Preventive Maintenance Work Orders, Predictive

Maintenance Work Orders, and Corrective Work Identified from PM or PdM including equipment
inspections when identified by specific work orders (in actual hours)) / (Total Work in actual hours)] x
100
Preventive Maintenance (PM): An equipment maintenance strategy based on replacing,

overhauling or remanufacturing an item at a fixed interval, regardless of its condition at
the time. Scheduled Restoration tasks and Scheduled Discard tasks are examples of
Preventive Maintenance tasks
Predictive Maintenance (PdM): An equipment maintenance strategy based on
measuring the condition of equipment in order to assess whether it will fail during some
future period, and then taking appropriate action to avoid the consequences of that failure
Corrective Work Identified by PM and PdM’s: Work done to restore the function of an
asset before failure that was been identified by a PM or PdM task.

Reactive Work
Reactive work is maintenance work that breaks into the Weekly
Schedule. This includes emergency work (i.e., to correct safety
concerns, immediate hazards, etc.)
Reactive Work (%) = Work that breaks into the Weekly Schedule in actual hours x 100
Total Work in actual hours
Total Work: Sum of all the maintenance work done (excluding capital work). It
includes maintenance labor hours for all crews (i.e., operations, maintenance,
engineering, etc.) for normal operating times as well as outages/shutdowns/
turnarounds.
Weekly Schedule: The list of maintenance work to be done in the week. It is

usually finalized on Wednesday or Thursday of the preceding week.

Schedule Compliance
The Schedule Compliance metric is a measure of adherence to the
maintenance schedule. It is usually computed on either a daily or a
weekly basis, and is based on hours.
Schedule Compliance (%) = Scheduled Work Performed (hrs) x 100

Total Time Available to Schedule (hrs)
Scheduled Work Performed: Actual hours worked on scheduled work

per the daily or weekly schedule
Total Time Available to Schedule : The total craft hours available to

schedule during a period of time. Do not include vacation, sickness, or
time off due to injuries.

Standing Work Orders
Standing Work Orders is defined as the ratio of the hours worked to
Standing Work Orders to the total maintenance labor hours expressed
as a percentage.
Standing Work Orders (%) = Hours worked to Standing Work Orders x 100
Total Maintenance labor hours
Standing Work Orders: Is a work order opened for a specific period of time to
capture labor and material costs for reoccurring short duration maintenance
work and for work that is typically not associated with a specific piece of
equipment where the tracking work history or formalizing individual work orders
is not cost effective or practical.
Total Maintenance Labor Hours: Total hours includes all maintenance labor
hours Include maintenance labor hours for normal operating times as well as
outages/shutdowns/turnarounds.

Ready Backlog
Ready Backlog is the quantity of work that has not yet been accomplished, but
has been fully prepared for execution. It is work for which all planning has been
done and materials acquired, but awaiting assigned labor for execution.
Ready Backlog = Total of estimated hours of ready work

Hours per week of crew capacity
Ready Work: Work that has been prepared for execution – necessary planning
has been done, materials acquired, and labor requirements have been
estimated
Hours per week of crew capacity: That portion of the weekly maintenance
labor complement that is available to work on backlog jobs. It is the sum of the
straight time hours per week for each individual in the crew, plus scheduled
overtime, less indirect commitments (such as training, meetings, vacations, etc.)

PM & PdM Effectiveness
This is a measure of the effectiveness of the corrective work that results directly
from Preventive Maintenance (PM) and Predictive Maintenance (PdM)
strategies. The measure is the amount of corrective work identified from
PM/PdM work orders that was truly necessary.
PM & PdM Effectiveness = Number of PM & PdM Corrective Work Orders completed
Number of PM & PdM Corrective Work Orders written
Preventive Maintenance (PM): An equipment maintenance strategy based on

replacing, overhauling or remanufacturing an item at a fixed interval, regardless
of its condition at the time. Scheduled restoration tasks and scheduled discard
tasks are both examples of Preventive Maintenance tasks.
Predictive Maintenance (PdM) : An equipment maintenance strategy based on

measuring the condition of equipment in order to assess whether it will fail
during some future period, and then taking appropriate action to avoid the
consequences of that failure.
PM & PdM Corrective Work Orders: Corrective Work orders that are
generated from by a PM or PdM task.

Continuous Improvement Hours
Continuous Improvement Hours is the percentage of internal maintenance labor hours
that is used to improve the current performance to an increased level. Continuous
Improvement Hours are used to improve the performance for, but not limited to safety,
quality, and environment, availability, output and cost..
Continuous improvement hours = Internal labor hours used for continuous improvement x 100
Total internal maintenance personnel labor hours
Internal labor hours used for continuous improvement : The internal direct and
indirect labor hours used on improvement processes intended to improve the current level
of availability, reliability, maintainability, quality, safety, environment and costs.
Total internal maintenance personnel labor hours : Man hours of internal personnel
engaged in maintenance. The internal personnel man hours are composed of:
1. Direct personnel are personnel working in the field, or workshops performing
maintenance activities (usually referred to as “blue collar workers”)
2. Indirect Personnel (Managers, Staff and clerks, Supervisors, Maintenance
engineering personnel, Planning and scheduling personnel, Tools store men,
Warehouse and store workers)
Man hours of maintenance activities carried out by production people are included

Effective use of information
technologies (CMMS)

Computerised Maintenance
Management Systems
• The CMMS enables work processes (work flow) to
improve the efficiency of the maintenance department
• The CMMS is essentially a database used to collect
information about the asset which should be analyzed to
improve the effectiveness of the maintenance strategy
• Typical modules include:
– Work Management
– Procurement Management
– Materials Management
– Service Management
– Asset Management
– Contract Management

Types of CMMS
• ERP – Enterprise Resource Planning
– Enterprise wide information system to
coordinate all resources, information and
activities needed to complete the business
processes
• EAM – Enterprise Asset Management

– Whole life optimal management of physical
assets to maximize value

Types of CMMS
• Maximo
• Mainpac
• SAP (PM Module)
• JD Edwards
• MEX
• IMMPOWER
• …many more

Types of CMMS
• To enable continuous
improvement the
configuration of the
CMMS is critical and is
often misdiagnosed from
the start
• Often data that is
captured does not suit the
goals of RAMS
improvement projects so
effectiveness is not
realized

Asset Register
• The equipment that makeup the asset

need to be structured in the CMMS in a
way that enables maintenance history to
be captured at an appropriate level
• The hierarchy needs to make sense and
be simple to use and be clearly labeled in
the plant
• The equipment hierarchy is the “spine” of
the CMMS that links the modules together

Asset Register
• Functional
Locations
• Equipment
• Assemblies
• Spare Parts

Failure Reporting Module
• Capturing quality feedback from the corrective

repair initiates proactive actions
• It can be used for prompting RCA and also
feedback to the maintenance strategy
• To enable feedback to the maintenance strategy
it is important that both the CMMS and strategy
development tools can link together
• This is performed by capturing the data used to
make the strategy decisions in the CMMS

Failure Reporting Module

PM Module
• The maintenance strategy that is developed

needs to be issued on time to ensure that risk
and cost are optimized
• The maintenance plan can be issued based on
calendar time, condition or operating hours
• The PM module ensures that each maintenance
plan is fully prepared with scope, parts labor and
equipment requirements ready to go

PM Module

Work Order Module
• The work order allows all maintenance

history for each unique event to be
captured against a piece of equipment
• It captures all costs, labor, materials and
equipment used and work history
• The work order enables the planning
function

Work Order Module
• Cost Centers
• Estimated Costs
• Scheduling Dates
• Durations
• Priorities
• Materials, Labor
• Scope
Work Order Module
• Problem observed
• Equipment affected
• Reported By
• Actual Work
Completed
• Failure Codes

Standards
• ISO/TS 10303-1266:2004 - Resource

Management
• IEC 60300-3-3 - Application Guide for
Life Cycle Costing
• ASQ/ANSI/ASQC E2-1996 - Guide to
Inspection Planning
• SAE JA1011 - Evaluation Criteria for
Reliability Centered Maintenance

Section 7:
Exam Sample Questions

Question 1
Which one of the following is generally true?
A) Construction contractors are usually equally skilled

at performing all maintenance tasks
B) Maintenance is often reduced through project designs
that provide in-place spares for all rotating equipment
and heat exchangers
C) Reliability Centered Maintenance can be applied on
capital projects in the preconstruction stage to
determine the maintenance plan
D) Most mechanics can easily alternate between doing
capital project work and doing equipment diagnosis
and repair work

Question 2
What is the best criterion for changing a known and

controlled variable to meet a new customer
requirement?
A) Engineering analysis
B) Operator and maintainer experience
C) Senior management directive
D) Reliability and maintainability analysis

Question 3
From the choices below, select the formula for

Reliability, R:
A) R = e- (MTTR/t)
B) R = e- (t/MTBF)
C) R = Downtime/(Downtime + Uptime)
D) R = MTBF / (MTBF + MTTR)

Question 4
A reliability leader has noted that the air supply to the pneumatic drill and stamping
center is intermittently inadequate, resulting in costly process interruptions.
Three potential solutions have been identified:
1. Purchase a new, larger air compressor for $40,000
2. Perform and overhaul of the existing compressor for $10,000
3. Contract a performance investigation of the air system for $3,500
Which is the best alternative and why?
A) Overhaul the existing compressor to see if that solves the problem

B) Buy a new compressor because Mean Time Between Failure is
guaranteed by the supplier
C) Buy a new air compressor because the existing compressor seems too
small
D) Investigate system performance to determine the root cause of the
problem

Question 5
If a machine is run for 500 hours and five failures

are observed during this period,
what is the Mean Time Between Failure?
A) 500 hours
B) 0.01 hours
C) 2500 hours
D) 100 hours

Question 6
Which of the following most effectively makes

up the members of a Manufacturing Team?
A) Sales/Customer/Production/Supplier/Senior
Management
B) Maintenance/Engineering/Production/Human
Resources
C) Production/Maintenance/Supplier/Engineering
D) Senior Management/Production/Human
Resources
Question 7
What is the most important purpose of

performing risk evaluations?
A) To determine what level of response is cost
justified
B) To clearly define activities required to contain
risks
C) To identify what events may have serious
consequences
D) To assure compliance with company policies

Question 8
Of the following, what is the best method for
measuring employee skills and training?
A) Create and maintain a skills inventory tracking

database
B) Ask employees to keep a training notebook
C) Keep records of all formal training courses taken
D) Have employees complete annual self-

evaluations
Question 9
When training maintenance workers, it is

best to first:
A) List all the tasks the workers need to
perform
B) Check the budget to set how much to
spend per worker
C) Review the list of classes already taken by
the workers
D) Give classes to all workers on basic skills

Question 10
What relationship should Maintenance and
Reliability Teams have with customers and
suppliers for optimum effectiveness?
A) Purchasing should be the only communicators with
suppliers
B) Supervision should be the only communicators with
customers and suppliers
C) Team members should be involved in communicating with
customers and suppliers
D) Sales should be the only department communicating with
customers
Question 11
Which of the following metrics definitions is not
accurate?
A) Uptime - % of time you run producing quality

product at design rate
B) Schedule compliance - how often mechanics
are pulled off their current work to another task
C) MTBF - a measure or indicator of equipment life
expectancy
D) Backlog - how long it takes to fix broken
equipment
Question 12
Which of the following does not support people
development?
A) Providing feedback only when asked
B) Defining result areas, goals, and

measurements
C) Coaching, feedback, and encouragement
D) Defining training and skills goals

Question 13
From the following list, which is not a critical
structural element of a strategic plan for
maintenance and reliability?
A) Current levels of performance
B) Benefits available through implementation
C) Historical direction of the business
D) Vision of the future state

Question 14
Which performance result best shows a maintenance
and reliability manager that the scheduled
maintenance activities being implemented are
effective?
A) Hours spent on unscheduled maintenance have decreased
B) Maintenance cost per unit of production has decreased
C) Total annual maintenance cost has decreased
D) Production rate has increased

Question 15
When the time period between the testing which
detects a failure and the failure actually occurs is
highly variable, and the life expectancy is highly
variable, a good approach is:
A) More frequent periodic predictive testing

B) Structured preventive maintenance
C) On-line condition monitoring
D) Time based rebuild or changeout

Answers
1. C
2. A
3. B
4. D
5. D
6. C
7. A
8. A
9. A
10. C
11. D
12. A
13. C
14 . A
15. C

Section 8:
Summary

World Class Reliability Excellence
3rd Plateau
2nd Plateau
Change Mindset to maintenance

as a reliability function not repair
Ist Plateau
Change Mindset to maintenance as a reliability function not repair
Reactive Proactive
Maintenance Maintenance

3rd Plateau
2nd Plateau
Training in Root Cause Analysis-eliminate

repetitive failures
Ist Plateau

Training in Root Cause Analysis-eliminate repetitive failures
Reactive Proactive

3rd Plateau
2nd Plateau
Implement an Effective Maintenance

Planning System
Ist Plateau

Implement an Effective Maintenance Planning System
Reactive Proactive

3rd Plateau
•
Alignment of maintenance objectives with plant production
targets using RBD and identify criticality and bottlenecks.
2nd Plateau
Alignment of maintenance objectives with plant production targets using

RBD and identify criticality and bottlenecks.
Ist Plateau

Reactive Proactive

3rd Plateau
Revise maintenance plans using RCM

and equipment history data
2nd Plateau

Revise maintenance plans using RCM and equipment history data
Ist Plateau

Reactive Proactive

3rd Plateau
Align Organisational roles

2nd Plateau

Ist Plateau

Reactive Proactive

Institutionalise3 Plateau
Equipment and Reliability Measures
rd
Institutionalise Equipment and Reliability Measures
2nd Plateau

Ist Plateau

Reactive Proactive

Analyse downtime and causal factors.

3 Plateau rd

2nd Plateau

Ist Plateau

Reactive Proactive

Institutionalise
3 Plateau Loss reporting across shifts.
rd

Institutionalise Loss reporting across shifts.
2nd Plateau

Ist Plateau

Reactive Proactive

Apply Reliability
3 Plateau Concepts to New Equipment.
rd

Apply Reliability Concepts to New Equipment.
2nd Plateau

Ist Plateau

Reactive Proactive

Lifecycle Cost3 included

Plateau in asset management plans
rd

Apply Reliability Concepts to New Equipment.
Lifecycle Cost included in asset management plans
2nd Plateau

Ist Plateau

Reactive Proactive

The End

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Reliability Excellence

and the Five Pillars

ARMS Reliability Engineers

• Randy Heisler, CMRP, article on Maintenance Technology Website

Identify where to start Determine costs

Shareholders main goal is Return On their Investments

Production Available Plant Plant Maintenance

The net revenue from a plant is determined by the

• It is the goal of the BoK Directorate to provide the best

• SMRP's Vision is to become the global

• What are 5 pillars

• Create Strategic Direction & Plan

• Maintain process and industry standards and

• Determine equipment and process performance

• Assess organization competence and direction

• The workshop addresses the excellence in

Business & Management

This section describes the skills used to

• We need to understand the context of the

Understanding the contribution

HR Market Asset Product

Capital Maintenance Risk

Maintenance Understand your business…..

Be available 85% of the time for

Measure the opportunity……

The reason understanding the Business Goals

• Auditing and benchmarking establishes

• Stakeholders are those individuals or groups

• As a reliability leader, you cannot make

• In immature companies, these measures are

• These figures are then compared to the budget,

• This process normally takes place halfway through the

• One of the most important aspects of performance

• There are two major reasons for this:

• You've carefully thought out all the

Risk = Consequence x Likelihood

• Human safety risks – risk of injury or death to

• The alternative to risk management is risky management.

• Choosing the Optimum Maintenance Task.

• IEC 61508 – Functional Safety of

• IEC 61508 has the following views:

• Risk is reduced to a tolerable level by

• RBI is the use of risk assessment to plan and justify

• Pressure System Register

Safety Operational Cost Per Cost Per

EXPL Major explosion 50 0 100000.00 0.00

{B} Likely Level Level Level Level Level Level

{C} Unlikely Level Level Level Level Level Level

{D}Very Unlikely Level Level Level Level Level Level

{E} Level Level Level Level Level Level

• Identify Ways Equipment can

• List Potential Failure Modes of

• Allows Focus on Failures

• From the selected item drill

• Potential failure modes are

• Failure effects are estimated

• Sort on failure effect severity

Work on Improving Brakes seized Open

• Identifies the Severity and

• Used to develop a Critical Items

Work on Brake Leaks

Fault Tree Analysis is a Top Down

• Quantify the Risk Exposure