Maintenances Role in an Effective Asset Management Program

(Issues to Consider and Address)

Ed LeClair CDM
Asset Management and Capital Planning Workshop
September 7, 2006

The Promise of Asset Management Programs

Asset Management promises:

Improved system reliability Reduced cost of ownership Effective decision-making regarding asset maintenance, rehabilitation and replacement Improved funding capabilities

Asset Management Seeks to Answer the Following Questions

What assets are owned, where are they, what condition are they in, and what is their remaining service life? What are your assets worth in real dollars? What needs to be done to preserve your assets (repair, rehabilitate and/or replace)? When will you need to rehabilitate or replace your assets, and how much will it cost? Ultimately, what can you do to prevent unexpected asset failures?

Maintenance The Frontline of Asset Management (AM)

Maintain Assets
Maintain, Repair and Rehabilitate Assets

Keep Related Asset Information

What do we own and whats its condition Performance requirements

Analyze Asset Data

How do our assets fail

Develop Asset Management Plans

How can we keep assets from failing unexpectedly How can we keep assets performing effectively and efficiently

Asset/Maintenance Management: Complimentary Practices Yes, But

What we frequently see:
No link between business (AM) outcomes and maintenance practices Maintenance is heavily reactive (Costly) Ineffective planning/scheduling Hand on Wrench time low (Low uptime) Work isnt tracked effectively (No analysis) Disciplined priorities do not exist Maintenance plans are not evaluated Distrust of corporate goals (Job security)

The Road to Failure is Often Paved With Good Intentions What Can Be Done? Where to Start?
No One-Size-Fits-All Approach to Asset/Maintenance Management Business Practices Improvement is an iterative process Begin by developing a Documented Maintenance Vision/Strategy (Begin with the end in sight) Purpose Statement
The framework for Maintenances contribution to the organization

Goals/Objectives
Link to organizational goals, form basis for performance measures

Measures/Reports
Connect the dots between what I do and how it contributes to organizational success

Develop a Documented Maintenance Strategy

Takes a fairly abstract and complex management concept and makes it actionable Key Maintenance Strategy Elements (Fundamental)
Recording of asset information
Registry/Hierarchy/Condition/Valuation

Determine criticality of assets Development of Asset Management Plans

Planned/predictive maintenance

Organizational Structure/Staffing/Skills Planning & scheduling Use of CMMS

Develop a Documented Maintenance Strategy (continued)

Develop detailed standard operating procedures for each strategy element including:
What needs to be done, Why it needs to be done, Who needs to do it, How it will be accomplished, When and/or how frequently it needs to be done.

Involve staff charged with the plans execution in its design

Develop a Documented Maintenance Strategy Recording of Asset Information

Develop your asset registry/information
Identify and record Maintenance Managed Items (MMI)
Strike the right balance between suitable detail and cost Identify and track rebuildable components

Key Equipment Specifications (New Construction and/or Rehabilitations):

Location Associated system and sub-system Asset Identifier Size/capacity Material Installation date and estimated remaining useful life Installation and/or replacement value

Equipment Failure Events

Failure modes/consequences and repairs

Develop a Documented Maintenance Strategy Asset Hierarchy

Develop the Asset Hierarchy:
Organize your assets for cost and condition roll-up and analysis
Update as necessary

Parent/Child relationships Asset/Maintenance Management implications Strike the right balance between suitable detail and cost

Develop a Documented Maintenance Strategy Asset Condition and Value

Assessing Assets Condition:
Many excellent condition monitoring methods exist Inspection assessments are sufficiently effective for most needs More sophisticated assessment techniques are component specific Invest proportionally according to asset criticality Monitor asset condition over time Strike the right balance between suitable detail and cost

Develop a Documented Maintenance Strategy Asset Condition and Value

Assessment practices
Visual inspections Performance testing Diagnostic testing

Typical condition assessment program:

Utility staff or contract service providers Criteria for condition assessments Frequency/staging

Remaining Asset Useful Life/Value

Generally straight-line depreciation Operating context of assets

Develop a Documented Maintenance Strategy Asset Criticality

Rank Assets Criticality:

Not all assets are created equal, mission critical Update regularly Asset/Maintenance Management implications Maintenance takes the lead in determining probability of failure

Ranking Criteria
Consequence of failure and probability of failure Consequence of failure Safety Economics Statutory Obligations

Develop a Documented Maintenance Strategy Asset Management Plans

Total Asset Management Plan (TAMP) is the aggregate of all individual asset plans Designed to prevent or manage asset failure Planned maintenance:
Inspection/lubrication/etc Scheduled overhaul/replacement tasks Predictive maintenance

Task selection:
Failure Modes, Effects and Consequence Analysis (FMECA) Reliability Centered Maintenance (RCM) Process

Develop a Documented Maintenance Strategy - Asset Management Plans

Develop a Documented Maintenance Strategy Organizational Structure/Staffing/Skills

Workload and service delivery options Asset Management Plan Organizational Structure Internal Maintenance Staff/Skills Operations staff involvement Outside contractors

Develop a Documented Maintenance Strategy Planning & Scheduling

Planning and Scheduling:
Elements of a planned/scheduled job:
Need is shown work is scoped Analysis job is broken out to component tasks Required skills are identified and time estimates made Materials are identified, ordered and on hand Special tools are gathered Required specs and drawings are on hand Related activities are listed and scheduled Disciplined priorities Communication

Develop a Documented Maintenance Strategy Planning & Scheduling

Why plan and schedule work?
Productivity losses:
Waiting for instructions/spare parts Multiple trips between worksite and the storeroom for parts and materials Not having proper tools/information Work site not ready 3-5 hours of execution time can be saved for every hour of advance preparation

Planning = Thoughtful and Analytical

Information capture/accuracy Maintains records Generates reports Tracks overall performance

Develop a Documented Maintenance Strategy Planning & Scheduling

Supervisor versus Planner/scheduler Usually determined by utilitys operating context

Develop a Documented Maintenance Strategy Use of CMMS

A CMMS Supports Asset Management Practices by:
Cataloging the inventory of assets Storing and retrieving asset data including work history Providing necessary information for repair/replace decisions Providing ability to record and track labor and material costs Tracking assets life-cycle costs (labor and material) and rehabilitations

All but the smallest utilities will find it hard to apply AM practices without a CMMS

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Develop a Documented Maintenance Strategy Maintenance Measures

Maintenance performance measures can help track results, improve service, and communicate results and whats important
Many good maintenance measures exist, but

Measures Background:
First make sure youre doing the right work, then measures can help determine if youre doing the work right (outcomes versus outputs) Measure systems should be positive, not punitive Not an end, but just the beginning

The Road to Failure is Often Paved With Good Intentions The Final Analysis
Asset Management promises:
Improved system reliability Reduced cost of ownership Effective decision-making regarding asset maintenance, rehabilitation and replacement Improved funding capabilities

Asset Management needs:

Accurate asset information capture and analysis Appropriate asset management plans Effective execution of maintenance activities Maintenance involvement in CIP Skilled and motivated maintenance staff

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QUESTIONS?

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