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IMPROVEMENT ON MAINTENANCE PERFORMANCE


Jlio Nascif

1 CHANGING AND IMPROVEMENT


The words CHANGE AND IMPROVE are more and more used at organizations. To occur IMPROVEMENT, CHANGE is needed. But not always CHANGE means IMPROVEMENT. Sometimes a change can worsen a situation or results. Throughout time, man constantly seeking an improvement. This means seeking to overcome challenges, improve quality of life, produce goods with higher technology, among others. Some examples illustrate the improvement obtained over time. Figures 1 and 2, shows a Ford assembly line in 1920 and Fiat's Brazil in 2011, respectively.

Figure 1 (1) Figure 2 (2) The graph in Figure 3 shows the evolution of time to swimming freestyle 100 m for men and women, between 1900 and 2010.

Figure 3

Jlio Nascif, mechanical engineer, CEO of TECM TECNOLOGIA EMPRESARIAL LTDA, coauthor of Maintenance books (see bibliography).

TECM Tecnologia Empresarial Ltda - www.tecem.com.br - AUGUST 2011

In both cases it appears that a considerable improvement occurred when comparing the two extreme dates, i.e., a sum of improvements that occurred during the interval considered.

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2 GLOBALIZATION, COMPETITIVENESS AND THREATS


Globalization is a process of interaction and integration among the people, companies and governments of different nations, focused on international trade and investment, supported by information technology. It is considered that began in the 80s, with integration into the global economic and financial relations, with United States of America as the dominant polo. On the positive side, globalization has brought the commercial and cultural exchange. But it has also brought, as a negative point, an interdependence in which developed countries are better served accentuating the economic "gap" between them and the poor countries. This phenomenon is irreversible and, for Brazil, had the following consequences, among others: -Increased external vulnerability in the economic market -Increases in imports resulting in reduction of the balance or deficit -Threat of deindustrialization of the country At the same time that threats are present, it is necessary to face the situation taking from it the lessons that turn these threats into opportunities. In a country that has a considerable consumer market, natural resources and enviable weather, we must induce a culture that privileges the increased competitiveness of domestic enterprises aided by a more concrete support from the government in the area of infrastructure that currently is inadequate. According to Porter, the competitiveness is the result of skill or knowledge acquired talent capable of creating and sustaining superior performance developed by competitors. Also, according to Porter, the concept that underpins competitiveness is productivity, since market share is the capacity that organizations must achieve higher levels of productivity and increase it over time. The competitive advantage of any organization has its origins in basic activities, but should be developed in all areas of the organization, i.e., operation, logistics, maintenance, services, management, infrastructure, technology / innovation and supply chain. However, in the most of companies, the basic is not well done.

THE BEGIN DO THE BASIC WELL DONE

Increasing competitiveness is a goal that should be part of the management process in organizations.

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3 - IMPROVING PERFORMANCE On a business level, the improvement in performance is necessary for companies to: Be more productive Be competitive Obtain better results Remain on the market (to survive)

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SURVIVE
IMPROVE THE RESULTS IMPROVE THE COMPETITIVITY IMPROVE THE PRODUCTIVITY

Figure 4 The Performance Improvement (Business Performance Improvement), which is part of the management process of the organization, implies the adoption of a consistent policy that sum the coordinated efforts of all segments and collaborators. Such programs should be shared by service providers (third party) since its outcome will influence the outcome of the Organization (contractor). Moreover, this policy is a PERMANENT goal for the company. The improvement may have a date to start but no end date.

Permanent process

Coordinated efforts of all segments and collaborators. MANAGEMENT


Outsourced staff

Own staff

Figure 5 The benchmarking practice, which consists in seeking, understanding and adapting best practices that exist within and outside of organizations, can ensure and sustain competitive advantages. This process led by senior management of the organization, requires a

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constant pro-active attitude and a systemic approach that is part of an organization's policy, i.e. a continuous and dynamic process of change and performance improvement. This policy should establish business excellence as a paradigm for the organization. The process of improving the performance aligns all segments of the organization around the guidelines established by top management while allowing the treatment of the interfaces between the various segments (areas or departments), that in many companies, constitutes an obstacle to the achievement of results. Thus, regardless of individual efforts of the Maintenance and of Supplies Chain to achieve excellence, the interface between these two segments should be analyzed and treated so that significantly reduce or eliminate wear points, friction and that negatively impact the company's bottom line.

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GOAL

MAINTENANCE

OPERATION
ADMINISTRATION

COMPANY
ENGINEERING HUMAN RESOURCES

SUPPLY CHAIN

FINANCIAL

Figure 6 4 IMPROVEMENT ON MAINTENANCE PERFORMANCE Ensure the availability and reliability of assets to meet a production program or service with Safety, Environmental Preservation and Appropriate Costs is the mission of Maintenance. Maintenance is a strategic role in organizations provided that: There is no production without maintenance The performance of maintenance directly impacts costs and profits The performance of maintenance can impact the environment and safety Thus, as the better the performance of maintenance better will be the results of the Organization. In the process of improving performance in maintenance it is necessary: Develop an Action Plan aligned Organization guidelines P Implement the Action Plan acting according to the best practices D Make periodic internal and external checks (audits) for analysis of compliance and the adequacy of the plan of action. C Make corrections detected in the verification phase. A The application of best practices is the natural way to achieve excellence or World Class Maintenance. Companies where there is a structured program of maintenance, set goals

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for improving the utilization of assets grounded in the application of best practices and controlled by (few) representative indicators.

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RESULTS

Desired Situation

Best Pratices

Action Plan Auditing A P

Current Situation

TIME

Figure 7 4.1 BEST PRACTICES Best practices are those chosen as those that produce the best results if properly applied. Some of the best practices in the management of routine maintenance are: Failure Analysis Integrated action with Operation and Engineering Emphasis on Predictive Maintenance and Inspection Applying the technique Preliminary Analysis of Risk (safety services) Critical analysis of service requests prioritizing services that impact the availability and reliability of assets Critical analysis of annual maintenance plans (predictive, preventive, lubrication, inspection) Practice of multifunctionality and versatility, adding tasks that add productivity to the service (for its own personnel and contractors) Outsourcing, whenever possible, by results Application systematized (and enforcement) training programs for staff Implementation of programs for internal and external audit as a tool for assessment and dissemination of best practices Adoption of the practice of TPM - Total Productive Maintenance with emphasis on Autonomous Maintenance. Development and use of procedures for key jobs Integration between Maintenance and Supply Chain

The best practices are widely known by maintenance personnel; everyone agrees that your application is factor in improving outcomes and that companies that apply are better off in the market. However, a significant number of professionals or businesses do not apply them. BEST PRACTICES Not enough to know. We have to apply them.

TECM Tecnologia Empresarial Ltda - www.tecem.com.br - AUGUST 2011

Pgina | 6 4.2 A CRITICAL ANALYSIS OF PROCESS Figure 7 shows that the improvement process includes turning the PDCA which is nothing more than the fulfillment of four phases - P, D, C, A. To improve, not enough plan and execute. We have to make CRITICAL ANALYSIS process comprising the steps of CHECK (C) and ACT (A). While in phase C analysis is done, in phase A are proposed improvements (or ACT). A process or an activity / service may remain unchanged for 30 years, always being planned and carried out the same way. This can happen in the review of equipment, maintenance shutdowns or turnarounds, in a particular operation or implementation of preventive plans for a press, for example. If there is no questioning the results will be the same, always. The question of how it is done and if you can improve them, is carried out in the verification phase (C). Once established new way (better) a service is planned and / or executed, we get an improvement. The improvement can occur: At runtime service In order to provide the service In personal safety In the previous planning service In staff training, among other Improvements may include also several factors simultaneously. That is, there may be improvement in runtime, personal security and advance planning, for example. The application of critical analysis (C + A) will not be made for all maintenance services, but should focus on those considered most important, most critical or have greater impact on the results. The important thing is to adopt this procedure. While in phase C is analyzed, in phase A are proposed improvements (or fixes). A process or an activity / service may remain unchanged for 30 years, always being planned and carried out the same way. This can happen in the review of equipment, maintenance shutdowns in a particular operation or implementation of preventive plans a press, for example. If there is no questioning the results will be the same, always. The question how it is done and if you can improve, is carried out in the verification phase (C). Once established new way (better) a service is planned and / or executed, we get an improvement.

TECM Tecnologia Empresarial Ltda - www.tecem.com.br - AUGUST 2011

The improvement can occur: At runtime service In the way to or perform the service In personal safety In the previous planning of service In staff training, among other Improvements may include, also, several factors simultaneously. That is, there may be improvement in runtime, personal security and advance planning, for example. The application of critical analysis (C + A) will not be made for all maintenance services, but should focus on those considered most important, most critical or have greater impact on the results. The important thing is to adopt this procedure.

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The improvement occurs in steps. Every time you complete the rotation of PDCA climbed a rung on the ladder of improvement.

CONTINUOUS IMPROVEMENT PROCESS

results
Actual performance level

time

Figure 8

The following example illustrates what was written above: Be a tower in a chemical plant during a maintenance shutdown, which occurs every three years, should be inspected and undergo repairs in both - the internal and external sides. Figure 9 shows the assembly of scaffolding inside the tower so that the service is performed from top to bottom. Only a front of service is possible in this configuration. Suppose the time to perform the maintenance, according this procedure, is 15 days.

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Figure 9

Figure 10

Figure 10 shows a change in the way you perform the service, applied after critical analysis conducted by the Planning and Specialists. Now, three separated ambient have been created in which different services can be developed simultaneously. The steel plate, supported on brackets that remain on the tower to be used in the next stops, ensures that objects do not fall on workers below it. Thus, three fronts for the service may occur simultaneously, safely and time spent will be 5 days. The Gain in 10 days on the equipment delivery, contributes to increase plant availability.

steel plate to create Chapa separadora de ambientes two separate ambients

Figure 11 This type of solution, derived from critical analysis by maintenance professionals, adopted for service in the tower, can be applied to other types of equipment keeping the characteristics and circumstances in each case.

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4.4 INDICATORS The essence of process benchmarking is the comparison of the indicators and the implementation of best practices. The indicators enable the company to monitoring the progress of their improvement process at the same time, comparing with excellent companies; establish the goals needed for market share. In Maintenance, some key indicators of the process should be permanently controlled and compared with other excellent companies. Among other highlights are: Availability Maintenance Cost / Gross Sales Maintenance Cost / Estimated Replacement Value (E R V) Backlog Rate of rework Productivity of Maintenance Labor Rates of compliance with maintenance scheduling Maintenance percent of corrective, preventive and predictive. The table in figure 12 shows some indicators of maintenance with the average values considered benchmark.
Indicator (Metric) Manufacturing Performance Availability (continuous processes) O E E (continuous processes) Scrap rate Unavailability due to maintenance Based on actives value Maintenance costs / E R V Inventory cost / E R V Maintenance costs / Production Costs Staff Worker per Supervisor Workers per Planner Based on sales Maintenance costs / gross sales $ Labor Cost / Gross sales $ Maintenane inventory cost / gross sales $ Maintenance Performance Planned work Preventive Maintenane plan compliance Maintenance Schedulling compliance PM + PdM hours / Total of hours Emergencial (Corrective) Maintenance/Total of hours Absence Overtime Backlog Training spend / worker Training hours by worker by year Worker turn over
medium values

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98% 95% 50 - 100 ppm < 5% 2-3% 1 - 2% 7 - 30% 8 to 12 20 to 30 2 - 8% 0,5 - 2,5% 0,8 - 1,6% > 80% > 90% > 90% > 55% < 10% < 2% < 5% 2-5 weeks 1 - 3 K$ 60 - 90 h < 2%

Figure 12

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Pgina | 10 5 CONCLUSION The improvement on Maintenance Performance is part of the company's overall improvement in the pursuit of excellence. What is sought in this process?

Eliminate activities that do not add value to the company's results. Work in a structured joining effort of all Work in a coordinated way to obtain the best result To ensure repeatability and sustainability Go beyond the indices (results) international Using all this as a competitive advantage

But to achieve improved performance requires some assumptions: PERSEVERANCE DISCIPLINE FOCUS, because

Figura 13 (3)

THIS DISPUTE is PERMANENT!

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Bibliografia: 1 Manuteno Orientada para Resultados Julio Nascif e Luiz Dorigo. Editora Qualitymark, Rio de Janeiro, 2009. 2 Manuteno Funo Estratgica Alan Kardec e Julio Nascif Ed. Qualitymark, Rio de Janeiro, 3 edio, 2009 3 Petrobras Regap Planejamento de Paradas de Manuteno. 2005 4 Competitividade Michael Porter, 1979 /2001 diversos. Photos credits: (1) Ford Model A Assembly Line, 1928, source Wikimedia Commons- File:Literary Digest 1928-01-07 Henry Ford Interview 2.jpg (2) 11/04/2012 Carros do lvaro - Montadoras investiro US$ 22 bilhes at 2015, segundo presidente da Anfavea (3) 22 de Julho 2011, 13:12 SAPO.MZ Jogos Africanos - http://jogosafricanos.sapo.mz/noticias/atletismo/

TECM Tecnologia Empresarial Ltda - www.tecem.com.br - august 2011

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