Reliability Centered Maintenance (RCM),

Total Productive Maintenance (TPM)

Value Driven Maintenance (VDM)
 Objective of this Session

To provide an understanding of
Advanced maintenance strategies
applied in the industries.

RCM, TPM & VDM

Reliability Centered Maintenance
RCM

Systems Reliability and Functional

Analysis
 RCM History

• Early PM assumed periodic overhauls ensured reliability and safety

• The airline industry, led by the efforts of Nowlan & Heap, took a
different approach and developed a maintenance process based
on:
- System Functions,
- Consequence Of Failure, &
- Failure Modes.
• Their work led to the development of Reliability-Centered
Maintenance, first published in 1978 and sponsored by the Office
of the Assistant Secretary of Defense, USA.
 RCM History

• Reliability and Safety is the primary concern of RCM.

• RCM aims to preserve System Functions.

• The secondary concern of RCM is Cost-effectiveness.

• Useful for industry whereby safety, health, and security is of

paramount important: Airline, Nuclear Power Plant, etc.
 Functional Perspective

How do I keep
How do I keep
the pump
the tank full?
operating?

A B
Water Pumping System Example

Purpose:
Ensure proper fluid level in tank B, by
pumping fluid from tank A
Traditional Maintenance Approach:
- Focused on the pump
- Vibration Analysis etc.
- Minimize failures of the pump,
and determine maintenance strategy
 Why Functional?

• Traditional approach focused on keeping the pump operational

• Can other failures, besides pump failure cause the loss of system
function?
– Reservoir failure
– Hoses and fittings failure

• What if the pump reliability cannot be improved, or maintenance

cannot be optimized?

• Alternate methods to ensure the system function is preserved:

– Pump redundancy (back-up pump)
– Gravity assisted flow
– Increased storage level in tank B (… buying time …)
 What is RCM?

➢ RCM is an approach to maintenance that combines

reactive, preventive, predictive, and proactive maintenance
practices and strategies to maximize the life that a piece of
equipment functions. RCM does this at minimal cost.

➢ In effect, RCM strives to create the optimal mix of an

intuitive approach and a rigorous statistical approach to
deciding how to maintain the function of the
equipment/asset.
 RCM Analysis

• RCM analysis carefully considers the following

questions:
– What does the system or equipment do; what are its functions?

– What functional failures are likely to occur?

– What are the likely Consequences of these functional failures?

– What can be done to reduce the probability of the failure, identify the
onset of failure, or reduce the consequences of the failure?

To implement RCM, it is imperative that maintenances supervisors/managers

and maintenance technicians think about their facilities in terms of function.
 The primary RCM principles are:

1. RCM is Concerned with Maintaining System Functionality: RCM seeks to

preserve system or equipment function, not just to maintain a piece of machinery’s
operability for operability’s sake.

2. RCM is System Focused: It is more concerned with maintaining system function

than individual component function. Can this system still provide its primary
function if a component fails? (In this example, If the answer is "yes," then the
component is allowed to run to failure).

3. RCM is Reliability Centred: RCM is not overly concerned with simple failure
rate; it seeks to know the conditional probability of failure at specific ages.

4. RCM Recognizes Design Limitations: The objective of RCM is to maintain the

inherent reliability of system function. A maintenance program can only maintain
the level of reliability inherent in the system design; no amount of maintenance can
overcome poor design.
 The primary RCM principles are:

5. RCM is Driven by Safety First, then Economics: Safety must be maintained

at any cost; it always comes first in any maintenance task. Hence, the cost of
maintaining safe working conditions is not calculated as a cost of RCM. Once
safety on the job is ensured, RCM assigns costs to all other activities.

6. RCM defines Failure as an Unsatisfactory Condition: Failure is not an

option. Here failure is defined as a loss of acceptable product/service quality level,
or failure is defined as a function not being maintained.
 The primary RCM principles are:

7. RCM Recognizes Four Maintenance Categories and Uses a Logic Tree to Screen
Maintenance Tasks. This ensures consistency in determining how to perform maintenance
on all types of facility equipment. Each piece of equipment is assigned to one of four
categories:

a. Run-to-Failure: Under an RCM program, run-to-failure is a conscious decision

reached after analysis of what facility functions) would be affected by system
failure versus the (life cycle) cost of preventing failure.

b. Calendar-Based Maintenance (PM): This is the most basic approach. It

schedules tasks based on the time since that task was last performed. It is the
type of maintenance most often performed in Preventive Maintenance
programs.
 The primary RCM principles are:

c. Condition Monitoring (CM): This maintenance is performed based on

predictive testing and inspection. Real-time data are gathered and analyzed as
a way to determine when a piece of equipment requires maintenance.

d. Proactive Maintenance: Efforts in this area of a maintenance program are

aimed at applying the lessons learned from past maintenance experience to
future situations. This includes writing better specifications, precision rebuild,
failed part analysis, and root-cause failure analysis.
 The primary RCM principles are:

8. RCM is an Ongoing Process. This is one of the most important characteristics of RCM.
No maintenance procedures escape review.

Maintenance personnel gather data from the successes/failures achieved and feed
these data back to improve future maintenance procedures and design of new
systems.

The feedback loop is an essential part of the RCM process.

The feedback includes:

➢ changing old equipment specifications that have been proven inadequate or
incorrect,
➢ rebuilding worn/failed equipment to better resist failure,
➢ performing failed-part analysis, and
➢ performing root-cause failure analysis.
 RCM Approach
RCM integrates:
➢ Preventive Maintenance (PM),
➢ Predictive Testing and Inspection (PT&I),
➢ Repair (also called reactive maintenance), and
➢ Proactive Maintenance
to increase the probability that a machine or component will function
in the required manner over its design life-cycle with a minimum
amount of maintenance and downtime.
 RCM Approach
• These principal maintenance strategies, rather than being applied
independently, are optimally integrated to take advantage of their
respective strengths, and maximize facility and equipment reliability
while minimizing life-cycle costs.
Components of an RCM Program
 RCM Concept
• The decision as to how the RCM program is implemented
should be made by the end user based on:
➢ Consequences of failure
➢ Probability of failure
➢ Historical data
➢ Risk tolerance (Mission Criticality)

• For example, an identical make and model of exhaust fan can

be used to support restroom operations or as part of a
smoke/purge system. The consequence of failure and the
maintenance approach of the two units are different, based on
the system function.
NASA
RCM
Logic
Tree
RCM Analysis
Considerations
 System & Boundary: Power Plant

POWER
PLANT

UNIT 1 UNIT 2 UNIT 3

N01 N02 N03

WASTE
BOILER SYSTEM
FUEL
N02B N02N N02F

FLY ASH BED ASH

N02NA N02NB
 System & Boundary: Air Compressor

INGERSOLL
RAND
COMPRESSOR

SYSTEM PRESSURIZATION SYSTEM

1A SYSTEM 1B 1C

SUBSYSTEM SUBSYSTEM AIR PUMP SUBSYSTEM

1B1 1B2 ASSY 1B3 1B4

MOTOR COMPR CHK VALVE AIR FILTER PRESSURE

1B3A 1B3B 1B3C 1B3D REG 1B3E
 Failure Modes and Effects Analysis (FMEA)

• Failure Modes and Effects Analysis (FMEA) is applied to each system,

subsystem, and component identified in the boundary definition. For
every function identified, there can be multiple failure modes.

• The FMEA addresses each system function, all possible failures, and
the dominant failure modes associated with each failure.

• The FMEA then examines the Consequences Of Failure to determine

what Effect Failure has on the mission or operation, on the system,
and on the machine.
 Failure Modes and Effects Analysis (FMEA)

• In short, FMEA includes review of the following:

Steps in the process

1. Failure modes (What could go wrong?)
2. Failure causes (Why would the failure happen?)
3. Failure effects (What would be the consequences of each failure?)
FMEA Example
Variation of FMEA Forms: Example
 System Analysis

Where is Failure Effects or consequences?

 System Analysis
Function Functional Failure Failure Mode Source of Failure

Components Analysis
(Batteries)
Function Functional Failure Failure Mode Source of Failure
Component
Analysis
Sub-component Failure Analysis
 Standards and References

• DoD Policy:
– “RCM shall be used as a logical decision process for
determining optimum failure management strategies,
including maintenance approaches, and establishing the
need for both reactive and proactive maintenance tasks.”
• AFI 21-118
• AR 750-1
• MCO 4000.57A
• MIL-STD-3037
• NAVAIR 00-25-403
• SAE JA 1011/1012
• DoD Manual 4151.22-M
Total Productive Maintenance
(TPM)
 Total Productive Maintenance

TPM is a Productive Maintenance implemented

by all employees in an organization.

TPM involves everyone in the organization

from operators to senior management in
equipment improvement.
 TPM in three words:

Total = All individuals in the organization working together.

Productive = production of goods that meet or exceed

customer’s expectations.

Maintenance = keeping equipment and plant in good condition

at all times.
 TPM History
• This is an innovative Japanese Concept.
• Developed in 1951.
• Nippondenso was the 1st company that implemented
TPM in 1960.
• Based on these developments Nippondenso was
awarded the distinguished plant prize for developing
and implementing TPM, by the Japanese Institute of
Plant Engineers ( JIPE ).
• This Nippondenso became the first company to
obtain the TPM certifications.
 TPM GOALS:

• Increase Production Quality.

• Increase Job Satisfaction.
• Using Teams For Continuous Improvement.
• Improve The State Of Maintenance
• Empower Employees

CONTINUOUS PROCESS IMPROVEMENT

 TPM GOALS:
Using teams for continuous improvement.

CONTINUOUS PROCESS IMPROVEMENT

 Lean Concept
The original seven wastes (Muda) was developed by Taiichi Ohno, the Chief Engineer
at Toyota, as part of the Toyota Production System (TPS).

The original seven wastes

are
1. Transportation,
2. Inventory,
3. Motion,
4. Waiting,
5. Overproduction,
6. Overprocessing &
7. Defects.

They are often referred to

by the acronym
'TIMWOOD'.
8. Under Utilization of
people
 TPM GOALS:
Using teams for continuous improvement.
 5S Philosophy
 Based on five Japanese words that begin with ‘S’,
the 5S Philosophy focuses on effective work place
organization and standardized work procedures.
5 S’s
1. Sort :(Seiri)
2. Set In Order:(Seiton)
3. Shine: (Seiso)
4. Standardize: (Seiketsu)
5. Sustain: (Shitsuke)
 Sort :(Seiri)

• The first S focuses on eliminating unnecessary items

from the workplace.
• An effective visual method to identify these
unneeded items is called red tagging.
• A red tag is placed on all items not required to
complete your job. These items are then moved
to a central holding area.
• This process is for evaluation of the red tag
items.
 Set In Order:(Seiton)

• Second S focuses on efficient and effective

storage methods and how to organize the
work area.

• Strategies for effective Set In Order are

painting floors, outlining work areas and
locations, shadow boards, and modular
shelving and cabinets for needed items such as
trash cans, brooms, mop and buckets
 Shine: (Seiso)

• Once you have eliminated the clutter and junk that has
been clogging your work areas and identified the
necessary items, the next step is to thoroughly clean the
work area.

• Workers will also begin to notice changes in equipment

and facility location such as air, oil, coolant leaks,
fatigue, breakage, and misalignment.

• These changes, if left unattended, could lead to

equipment failure and loss of production.
 Standardize: (Seiketsu)

• Now the first three S’s are implemented.

• Use standard methods to keep Sort, Set In Order, and

Shine to a condition .

• Allow your employees to participate in the development

of such standards.
 Sustain: (Shitsuke)

• This is the most difficult S to implement and achieve.

• Maintain through empowerment, commitment, and

discipline .

• Sustain focuses on defining a new status quo and

standard of work place organization.
 Benefits of 5 S’s
• Simplifies work environment

• Reduces waste

• Improves quality

• Improves safety

• Provide self esteem (confidence) for everyone in the

organization.
 Similarities between TQM & TPM
• Total commitment to the program by upper level
management is required in both programs.

• Employees must be empowered to initiate corrective

action, and

• A long range outlook must be accepted, as TPM may

take a year or more to implement.

• It is an on-going process which is a continuous process

improvement.
1. Autonomous maintains 2. Planned maintains 3. Equipment and process improvement
4. Early management of new equipment 5. Process quality management 6. TPM in the office
7. Education and training 8. Safety and environmental management.

PILLARS of TPM
1 2 3 4 5 6

improvement
Equipment and process

equipment
Early management of new
Autonomous maintains

TPM in the office

Planned maintains

Process quality management

Education and training
7
Safety and environmental management.
8
 Autonomous Maintenance (1)

• Train the operators to close the gap between them

and the maintenance staff, making it easier for
both to work as one team

• Change the equipment so the operator can identify

any abnormal conditions and measure before it
affects the process or leads to a failure
 Autonomous Maintenance (2)
 Seven (7) steps are implemented to progressively increase
operators knowledge, participation and responsibility for the
equipment.

 1. Perform initial cleaning and inspection

 2. Counter measures for the causes and effects of dirt and dust
 3. Establish cleaning and lubrication standards
 4. Conducting general inspection training
 5. Carry out equipment inspection checks
 6. Workplace management and controls
 7. Continuous improvement
 Operator Autonomous Maintenance

7 Steps

T P M

Aut. Mgt. 77
Standardization 6
Autonomous Inspection
5
OIL
General Inspection
4
Prepare Temporary Standards 3
Countermeasures for Contamination
22
Initial Clean-up
1
 Equipment and process improvement (3)

 Objectives: Maximize efficiency by eliminating waste and

manufacturing loss

 Manufacturing losses are categorized into 13 bid losses:

 Equipment losses (6)
 Manpower losses (4)
 Material losses (3)
 Planned maintains
 Objectives : Establish preventative and predictive
maintenance system for equipment and tooling
 Natural life cycle of individual machine elements must be
achieved
 correct operation
 correct set-up
 cleaning
 lubrication
 feedback and repair of minor defects
 quality spare parts
 Early Management of New Equipment
Objective: establish system to shorter
 new production or equipment development
 start-up, commissioning and stabilization time for quality
and efficiency

New equipment need to be :

 easy to operate
 easy to clean
 easy to maintain and reliable
 have quick set-up times
 operate at the lowest life cycle cost
 Process Quality Management
 Definition: a process for controlling the condition of
equipment components that affect variability in product
quality
 Objectives: to set and maintain condition to accomplish
zero defect

Quality rate has direct correlation with:

 material condition
 equipment precision
 production methods
 process parameters
 TPM in
Administration & Support Department

• Administration and support departments can be seen as

process plans whose principles tasks are to collect,
process and distribute information.

• Process analysis should be applied to streaming

information flow
 Education and Training
• TPM is a continuous learning process

• Two major components :

- Soft skills training : how to work as a team,
diversity training and communication skills
- Technical training : upgrading problem-solving
and equipment-related skills
 Safety & Environmental Management

Assuring safety and preventing adverse

environment impacts are important priority in
an TPM effort
 Requirement & Fundamental
Improvements

• Increasing motivation: changing people attitudes

• Increasing competency and people skills

• Improving the work environment, so that it support

the establishment of a program for implementing
TPM
 TPM Summary
• TPM = Total Productive
Maintenance
– Proactive (all employees
involved) Peak Performance

– Preventive
– Predictive Continuous Waste Reduction
– Planned
• TPM is an integral part of 5S Standardized
Total Quality production Visual
TPM Work
System Factory
Maintenance Dilemma
 Maintenance Dilemma
"What is actually the added value of maintenance?“
➢ Is a frequently heard question in boardrooms the world
over.

➢ Even though maintenance is often critically important,

few maintenance managers are able to answer the
question convincingly.

➢ Especially when they are asked to express the benefits in

terms of economic value added, the language
increasingly being spoken in corporate boardrooms .
 What is your most important Strategic
Objective/s ?

1. To Serve production the best way we can?

2. To stay with budget at all time?
3. To become (remain) world class/best in class
maintenance organizations
4. To make money for my company or to add
value to the company
➢ The board considers maintenance and reliability as
being high important.

➢ But treats it as a cost center or a necessary evil

➢ Maintenance is not able to convince the board of the

Real Value

➢ Maintenance and board do not speak the same

language
➢ Resulting in wrong decision making
➢ The language of the board is not about the availability,
reliability, etc

➢ The language of the board is about cash, money

➢ We must be able to convince the decision makers to take

the what decision they need to improve and invest.

➢ The strategy is not smart enough ie not be able to

quantify things that we need the board to take decision
on it.
Value Driven Maintenance (VDM)
What is VALUE?
Reference to financial literature reveals that value is defined as the sum of all
future free cash flows, discounted to today
1- A cash flow is the difference between income and expenditure.
2- Future stems from the knowledge that the value of a cash flow is
related to time.

One RM is worth more today than One RM next year. This is because you can
deposit a 1 RM at the bank today and use it to generate income over a period of
one year. Therefore, we have to adjust future cash flows.

Value = Benefits / Cost

 Value of Maintenance
A maintenance manager is likely to say:
"This theoretical approach is all very well, but what good is it to me in
practice?

➢ The value of maintenance comes from delivering maximum

availability at minimum cost!

➢ While this is true in theory, it's little help in the day to day
operation.

➢ This is because you have to prioritize: do you want to reduce costs

or increase uptime? Is a 1% increase of uptime just as valuable as a
1% reduction of costs?
And how do you determine the value of safety?

VDM provides answers by identifying the value potential of the

four value drivers in maintenance and enabling you to manage by
those drivers.
What maintenance is all about?
Today's maintenance managers are constantly balancing between:
1- Higher machine availability (asset utilization) and

2- Lower maintenance costs (cost control).

3- In doing so, they must take into account the growing body of laws
and regulations covering : (Safety, health and environment).

4- To make everything work, they need to use the right technicians,

spare parts, knowledge and contractors (Resource allocation).
For all Four Value Drivers, maintenance can help to increase a
company’s economic value.

In a market where there is more demand than supply,

Greater machine availability results in more products, more income
and thus higher value.

On the other hand, lower maintenance costs produce higher value by

avoiding expenditure. The same applies to resource allocation. One
example is a technical storeroom. Smarter inventory management of
spare parts can enormously increase value for a company.
Similarly, the safety, health and environment (SHE) factor
affects value.

SHE accidents tend to necessitate substantial expenditure, with

resulting negative cash flows.

Damage caused to personnel, environment and image, for

example, will increase expenditure.

An even greater danger is loss of the license to operate

because of inability to comply with SHE legislation. No license
to operate means no production and no income.
 Value Potential

Maintenance managers must show where there is potential for value

within their maintenance organization.

VDM provides a calculation model that is based on the Present Value

(PV) methodology

The result of the calculation of value will differ markedly depending

on the industry involved.
Construction material industry:
➢ There is currently less demand than supply and worldwide prices
are under considerable pressure.

➢ The value potential here lies mainly in controlling costs and the
smarter deployment of people and resources.
Pharmaceutical industry:
➢ The situation is the other way round.

➢ Demand for medicines continues to grow but the technical

availability of the production process is relatively low.

➢ This matter is obviously receiving attention

➢ The SHE factor here is becoming more and more important with
the growing role of the FDA (Food & Drug Administration) in the
European pharmaceutical industry.
 Value and Time

Value depends not only on the industry concerned, but also on time.
In the aviation industry, traditionally the focus was on increasing
fleet availability and meeting the regulations of the Aviation
Authorities.

As a result of the attacks in the US on September 11, 2001, there has

been a reduction of the demand for air travel.

This reduced the importance of fleet availability. This meant that

many airlines could only survive if they focused on controlling costs.
This required an enormous improvement, one in which the VDM
methodology guided the way.
 Value and Competences

Once the value potential has been identified, the maintenance

function must be organized accordingly.

Which competences are, and are not, important? There will be little
point in giving priority to reducing the stock of spare parts if the value
potential lies in more uptime.

Unfortunately, we all too often see that these decisions are not made
by the maintenance department.

VDM does do this, however, and it makes a link between value drivers
and core competences
Construction material industry
The economic crisis in the international housing market forced many companies to
focus on controlling costs.

So the right-hand value circle must be configured from maintenance budgeting to

cost analysis.

Pharmaceutical companies
There, the left-hand value circle must be organized from equipment performance
planning to loss analysis.

Interestingly, both value circles include the competences of reliability engineering,

planning & preparation and maintenance execution. These competences are the
link between the four value drivers and thus form the heart of VDM.
 Value and Best Practices
Now that we know the important competences, the next step is to organize and
control them in the right way.

VDM puts forward best practices from leading maintenance

organization.

Total Productive Maintenance (TPM) thus enjoys a reputation mainly as the best
practice for registering, analyzing and improving production losses (asset
utilization) in discrete production.

In contrast, Asset Based Costing (ABC) is a proven best practice for properly
controlling maintenance costs.
➢ Using these best practices, a technical department can quickly
become a professional maintenance organization that adds value
to the overall business performance.

➢ In VDM terminology, this is called the Most Valuable

Maintenance Organization
Maintenance 4.0
.
As a Maintenance Manager using a conceptual model of VDM to show where there is
potential for value/values
within your organization.?

Explain:
Whether the Value is time
dependent or not?
What Maintenance Competence
you need?
What Best Practices you want to
adopt and why?
Any questions…….?
 Project

• Using the RCM method to design a maintenance plan

for a simple system in your company/department. You
can include:
– Background of the system and its current maintenance practice
– System functional analysis (diagram and Explanation)
– FMEA analysis
– Component and sub-component analysis
– RCM Logic tree
– Final RCM maintenance program and explanation
RCM Analysis
Considerations
 System & Boundary: Power Plant

POWER
PLANT

UNIT 1 UNIT 2 UNIT 3

N01 N02 N03

WASTE
BOILER SYSTEM
FUEL
N02B N02N N02F

FLY ASH BED ASH

N02NA N02NB
 System & Boundary: Air Compressor

INGERSOLL
RAND
COMPRESSOR

SYSTEM PRESSURIZATION SYSTEM

1A SYSTEM 1B 1C

SUBSYSTEM SUBSYSTEM AIR PUMP SUBSYSTEM

1B1 1B2 ASSY 1B3 1B4

MOTOR COMPR CHK VALVE AIR FILTER PRESSURE

1B3A 1B3B 1B3C 1B3D REG 1B3E
FMEA Example
Variation of FMEA Forms: Example
System Analysis
Component Analysis