The document discusses BHP Steel's implementation of Reliability Centred Maintenance (RCM) across its operations. It outlines BHP's 7 step plan to transition from managing maintenance as a cost centre to treating it as a profit centre. This included re-education of employees, redefining roles and responsibilities, redeveloping measurements, and applying strategy based maintenance using RCM methodology. As a result, BHP achieved a 50% reduction in maintenance costs within 6 years. The document argues that RCM represents a maintenance philosophy for the future as its adoption has grown worldwide.
The document discusses BHP Steel's implementation of Reliability Centred Maintenance (RCM) across its operations. It outlines BHP's 7 step plan to transition from managing maintenance as a cost centre to treating it as a profit centre. This included re-education of employees, redefining roles and responsibilities, redeveloping measurements, and applying strategy based maintenance using RCM methodology. As a result, BHP achieved a 50% reduction in maintenance costs within 6 years. The document argues that RCM represents a maintenance philosophy for the future as its adoption has grown worldwide.
The document discusses BHP Steel's implementation of Reliability Centred Maintenance (RCM) across its operations. It outlines BHP's 7 step plan to transition from managing maintenance as a cost centre to treating it as a profit centre. This included re-education of employees, redefining roles and responsibilities, redeveloping measurements, and applying strategy based maintenance using RCM methodology. As a result, BHP achieved a 50% reduction in maintenance costs within 6 years. The document argues that RCM represents a maintenance philosophy for the future as its adoption has grown worldwide.
by Peter Ormond, Strategic Corp., Australia Reliability Centred Maintenance Original paper by Nowlan and Heap, 1978 Major re-work in RCM II by John Moubray SAE Standard JA1011 in 1999 Maintenance Philosophies Breakdown Maintenance Industrial Revolution Preventive or Change-out Maintenance Second World War Predictive or Condition Based Maintenance Mid 60s Reliability Centred Maintenance Mid 80s BHPs Experience Steel Industry World Wide Review Man-hours per Liquid Tonne of Steel Four Best Practice Organisations Biggest difference Maintenance treated as a PROFIT CENTRE BHP was managing Maintenance as COST CENTRE BHP Action Plan Understand Problem Set Overall Target Target 40% Reduce in Maint. Cost Per Tonne in 5 years Develop Approach for Solution 7 Step Plan BHPs 7 Step Plan 1. Re-Education 2. Re-Define Roles & Responsibilities 3. Re-Develop Measurements 4. Provide Processes and Systems 5. Apply Strategy Based Maintenance 6. Formalise Continuous Improvement 7. Focus on Waste Reduction Education Develop a new technique for applying training - SBL Develop a high level training package Introduction to Maintenance and its Management Apply training package to ALL employees BHPs 7 Step Plan 1. Re-Education 2. Re-Define Roles & Responsibilities 3. Re-Develop Measurements 4. Provide Processes and Systems 5. Apply Strategy Based Maintenance 6. Formalise Continuous Improvement 7. Focus on Waste Reduction Roles & Responsibilities New understandings required new definitions Some changes to organisational structure Once-off exercise BHPs 7 Step Plan 1. Re-Education 2. Re-Define Roles & Responsibilities 3. Re-Develop Measurements 4. Provide Processes and Systems 5. Apply Strategy Based Maintenance 6. Formalise Continuous Improvement 7. Focus on Waste Reduction Measurements The only way to make permanent change is to change the way things are measured Split measurements between KPIs and the PIs that feed them KPIs are ALL Historical, Summary and UNCONTROLLABLE Measuring is not enough, interpreting the measures is the important step BHPs 7 Step Plan 1. Re-Education 2. Re-Define Roles & Responsibilities 3. Re-Develop Measurements 4. Provide Processes and Systems 5. Apply Strategy Based Maintenance 6. Formalise Continuous Improvement 7. Focus on Waste Reduction Processes and Systems Follow-on from all the previous steps Includes fully developed processes, procedures, documentation, etc. Also includes adequate computer systems, both hard and software, as well as appropriate training BHPs 7 Step Plan 1. Re-Education 2. Re-Define Roles & Responsibilities 3. Re-Develop Measurements 4. Provide Processes and Systems 5. Apply Strategy Based Maintenance 6. Formalise Continuous Improvement 7. Focus on Waste Reduction Strategy Based Maintenance Understand Profit Centre Maintenance Travel World looking for solutions RCM recognised as fitting exactly with required philosophy Love results Hate effort required Develop Methodology to enhance RCM (RCM Turbo)
BHPs 7 Step Plan 1. Re-Education 2. Re-Define Roles & Responsibilities 3. Re-Develop Measurements 4. Provide Processes and Systems 5. Apply Strategy Based Maintenance 6. Formalise Continuous Improvement 7. Focus on Waste Reduction Continuous Maintenance Improvement Appoint responsibility Formalise process Recognise shortcomings of P-D-C-A Change Act to AUTHORISE BHPs 7 Step Plan 1. Re-Education 2. Re-Define Roles & Responsibilities 3. Re-Develop Measurements 4. Provide Processes and Systems 5. Apply Strategy Based Maintenance 6. Formalise Continuous Improvement 7. Focus on Waste Reduction Waste Reduction Very similar to Continuous Maintenance Improvement Look outside normal Maintenance sphere Same structure but less frequent BHP Steels Results Achieved 50% reduction in 6 years Pointed to two factors having greater impact than anticipated: Re-Education of all employees into common understanding of Maintenance Implementation of RCM (RCM Turbo) World Wide View Late 80s Paper based analyses Several successful exercises No PC Tools Almost no-one had heard of RCM World Wide View Mid90s Many heard of RCM but few knowledgeable Several Tools Other systems claiming to be RCM SAE Standard JA1011
World Wide View Current 2000+ Few organisation not heard of RCM Most organisations have some-one with detailed knowledge Many organisations have Reliability Group Many others trying to start projects RCM Incorporated into University Courses
How does it all fit together? Business Plan Plant Strategy Operating requirements Inventory plant items Life Plans for critical plant items (RCM analysis)
Document Retrieval System Work instructions CMMS Task lists Maintenance plans Work orders RCM-Turbo The Versatile Tool Equip Codes Fail Analysis Task Analysis Opt Freq Grp Tasks Resource Bal Scheduling KPI Review Reactive Maintenance Systems Maturity Proactive I m p r o v e m e n t
S t e p s
RCM-Turbo The Versatile Tool Equip Codes Fail Analysis Task Analysis Opt Freq Grp Tasks Resource Bal Scheduling KPI Review CMMS I m p r o v e m e n t
S t e p s
Reactive Maintenance Systems Maturity Proactive RCM-Turbo The Versatile Tool Equip Codes Fail Analysis Task Analysis Opt Freq Grp Tasks Resource Bal Scheduling KPI Review RCM CMMS I m p r o v e m e n t
S t e p s
Reactive Maintenance Systems Maturity Proactive RCM-Turbo The Versatile Tool Equip Codes Fail Analysis Task Analysis Opt Freq Grp Tasks Resource Bal Scheduling KPI Review RCM RCM-Turbo RCM- Turbo CMMS I m p r o v e m e n t
S t e p s
Reactive Maintenance Systems Maturity Proactive Cost of Inspection Cost of Failure Total Annual Business Cost of Maint. Optimum Frequency Time MTBF FTM - Optimum Frequency based on Probability of Failure in MTBF Frequency Optimisation 70% Confidence non-failure 92% Confidence non-failure Warning Time P F 1 F
Warning Time Cost of Inspection Cost of Failure Total Annual Business Cost of Maint. Optimum Frequency Time MTBF CBM - Optimum Frequency based on Confidence of non Failure in Warning Time Warning Time Cost of Planned Repair Frequency Optimisation Frequency Optimisation Graph Benefits Obtained from Frequency Optimisation Many Tasks Increase in Frequency Increasing Reliability Many Tasks Reduce in Frequency Reduced Costs without Compromising Reliability Average Cost Reduction 10% 15% Assists What If..? Scenario Testing Justification of Maintenance Decisions Benefits of RCM Changing Organisations to Profit Centre rather than Cost Centre Maintenance A Methodology to apply Business Decision to Maintenance Planning Supports all Current Maintenance Techniques Consistent with and sub-part of TPM Title Question RCM Maintenance Philosophy of the Future? YES !