Industry Standard Solution for

Plant Maintenance (ISPM)

Equipment Taxonomy and Failure Reporting

Reliability Dynamics LLC 2014

Tony Ciliberti, PE

Principal Engineer, Reliability Dynamics

Twenty-seven years experience as a reliability engineer in petrochemical, oil and gas
Former Principal Consultant/Solution Architect with SAP Americas National
Consulting Practice
SAP Top Talent
SAP Certified Solution Consultant - PLM

Industry standards involvement

United States expert representative on ISO TC 67/SG 4/WG 4 (developing ISO 14224
Version 3)
PERD Project, PERD ERP Subcommittee Chair

BS in Chemical Engineering from Texas A&M University, 1987

Reliability Dynamics LLC 2014

Reliability Dynamics

Reliability Dynamics LLC

Company Overview
Registered engineering company specializing in equipment reliability and maintenance
solutions for corporate software systems
In business since September 1, 2010
Primary product is the Industry Standard Solution for Plant Maintenance (ISPM)
US patent pending for equipment taxonomy and failure reporting methodology

Our customers
Pembina Pipeline
Queiroz Galvo leo E Gs S.A. (QGOG)
Maersk Drilling
Nexen Inc
Marathon Oil
Fortis Alberta
ExxonMobil

Reliability Dynamics LLC 2014

Reliability Dynamics

What We Deliver

A toolset for using ERP software that enables high-quality failure data
Engineering methods compliant and consistent with consensus standard engineering
practices
Failure data collection made integral with work management

Standard practices consistent with good engineering practice

Equipment taxonomy
Failure data collection
Failure data aggregation
Failure metrics
Rapid-Deployment Solution (RDS)
No need to reinvent the wheel each time (maintenance is maintenance)
Refinement of the solution through actual practice
Less risk and better results
Enables benchmarking and data exchange

Reliability Dynamics LLC 2014

Reliability Dynamics

What We Provide

End-to-end methodology for equipment taxonomy and failure reporting

System configuration
Functional location template and categories
Equipment malfunction report and related work processes
Equipment PM condition report

Content
Failure catalogs
Classification structures

Enhancements
Data validations and defaults
Data aggregation
Other supporting functionality

Reliability Dynamics LLC 2014

Reliability Dynamics

ISPM Solution Overview

Standard failure coding

(ISO 14224 Annexes A

and B)
Catalog profiles used to
define equipment
boundaries and for
specificity of codes to
equipment classes

Multi-level failure reporting

process (MLFRTM)

Equipment malfunction
reports

Standard data collection

processes
Minimum data capture (ISO
14224 Tables 6 and 8)

Simplified failure metrics

(standard SAP reports)

Classification of individual
failure events

Equipment taxonomy

Structurally
synchronized with
equipment subdivision
(ISO 14224 Annex A)
Differentiates between
functional and physical
aspects of equipment
(ISO 15926-2, Figs E.9
and E.10)
Logical and systematic
process for representing
P&ID tag numbers
Framework for efficient
risk assessment

Use/Location data
(ISO 14224 Table 5 and
Annex A)
Used to identify how
equipment is used
(process conditions)
Integral parameter in
failure metrics
Reliability Dynamics LLC 2014

Work execution at the

component level
Failure reporting at the
equipment level (ISO 14224
Table 6)

Risk assessment

Similar to and integrated

with malfunction reporting
(hypothetical vs. actual
failure): same use of codes,
operating context,
classification, and reporting

Malfunction reports generated for

failures found via inspection

Consequence(s) of failure
qualitative matrix (ISO 14224
Table C.1)
Lost production amount
Affected equipment/unit(s)
Instrumented safety systems
failure classification (PERD
and ISO 14224 Table F.1)
Other as required by
customer (standard class
functionality)

Preventive maintenance

Risk data used for strategy

development
Administration at area or
equipment level
Pass/Fail inspection verdict
recorded at equipment or
component level
Inspection verdicts used to
optimize interval/scope

Legend
Equipment taxonomy
Failure reporting
Future functionality

Reliability Dynamics

ISPM Solution Details

Reliability Dynamics LLC 2014

Reliability Dynamics

SAP Landscape with ISPM Appliance

ISPM Appliance

Corporate ERP System

System of record for equipment master data

Work management system
Initial data collection point for equipment failure data

Equipment
failure events

Equipment
Taxonomy

PM Condition
Reports

Reliability Dynamics LLC 2014

Failure consequence
accounting
Failure metrics

Equipment
Malfunction
Reports

Standard
Failure Data
Processes

Data Repositories/Other
Systems

ERP DATABASE
Work execution
Results recording
Labor and material
bookings

Planned Maintenance
and Inspections

ts
ac
r
t
Ex
ata

Inte
rfac
e

Failure Data
Repository, e.g.
OREDA, PERD

Other target
systems, e.g.
Meridium,
Ivara, etc.

Reliability Dynamics

ISPM Benefits

Optimizes bottom-line decision making

Enables corporate-wide failure metrics and benchmarking
Logical and systematic process for representing facilities
One unique ID for each object throughout all systems and records
Separation of functional and physical aspects of equipment minimizes data maintenance
requirements

Systematic and validated failure data collection processes

Industry standard compliant
Configurable for participant-specific data

Built-in appliance ensures integration with all corporate aspects

FICO, Materials Management, HR, etc.
No new application support requirements

Improves personnel efficiency

Fleshes-out bad actor equipment for prioritization and preventive strategy development
Shift to quality data collection versus after-the-fact data mining

Reliability Dynamics LLC 2014

Reliability Dynamics

Taxonomy

Definition: systematic classification of items into hierarchical generic groups based on

common factors
Relevant information is more likely to be found by logical progression from a general focus to
a more specific focus
Information summaries are defined in the context of their unique parent-child relationships,
such that the relationships can be interpreted programmatically

Equipment Taxonomy
Technical: systematic organization of equipment into hierarchical groups based on equipment
category, type, subtype, or other attributes
Functional: systematic organization of operating assets of a company into hierarchical groups
based on process function
Master data: representation of equipment taxonomy in an ERP/CMMS

Reliability Dynamics LLC 2014

Reliability Dynamics

Technical Taxonomy:
Example from ISO 14224, Annex A
Equipment type classification

Equipment subdivision
Generic representation of equipment
Boundary diagram
Subunits (Major component groups)

Maintainable items (components)

Reliability Dynamics LLC 2014

Reliability Dynamics

Functional Taxonomy

Logical representation of
facilities
Asset

register: directory of all

locations, plants, areas, etc.

Process

equipment (functional):

Labelled with P&ID tag numbers

P&ID tags serve as an address to
directly locate equipment
Operating

context: gives service

conditions for process equipment
items

Equipment

serial numbers: gives

installed and historical serial
number usage for each P&ID tag

Reliability Dynamics LLC 2014

Reliability Dynamics

Functional Taxonomy

Logical and systematic process for representing P&ID tag numbers

One unique ID for each object throughout all systems and records
All P&ID tag numbers represented in the ERP/CMMS with exact character strings in a
system-validated key field

Smart structure
Integrated with technical taxonomy
Defines equipment-to-component relationships (equipment boundaries) and equipmentto-equipment relationships in a manner that can be interpreted programmatically
Structurally synchronized with ISO 14224 equipment subdivision
Differentiates between functional and physical aspects of equipment (consistent with ISO
15926-2)
Captures equipment use/location data (operating context)

Reliability Dynamics LLC 2014

Reliability Dynamics

Functional Location and Equipment Relationship

Functional equipment location Tag P101 is an intangible object that defines process requirements for a
particular pumping service, e.g. pressure, temperature, flow, fluid type (Tag P101 in the example below)
Equipment items (serial numbers 1234 and 2345) define specific materialized objects that execute
process requirements
Field equipment change-outs are captured in SAP via corresponding equipment dismantle/installation
transactions (on 5/8/2001 S/N 1234 was dismantled and S/N 2345 installed)

FEL/FCL

Equipment

The duty represented by TAG P101, and Pump 1234 are coincident for the period of the installation, i.e. the state
S1 of Pump 1234 that is installed as TAG P101 is in fact also a state of TAG P101. TAG P101 consists of those
states of the pumps that are installed in this location.
ISO 15926-2 (Data Model) Industrial automation systems and integrationIntegration of life-cycle data for process plants including oil and gas
production facilities, Figures E.9 and E.10.

Reliability Dynamics LLC 2014

Reliability Dynamics

Malfunction reporting

Malfunction Report
An event record in an ERP/CMMS system
Initiated to address equipment critical failures, degraded performance, or incipient conditions
Initiated for the following reasons:
To notify Maintenance of required repairs
To document failure discovered during preventive maintenance and inspections
(regardless of the need for follow-on work)

Two processing stages

Work initiation, Problem Report
Work close-out, Repair Report

Reliability Dynamics LLC 2014

Reliability Dynamics

Work Processing with ISPM Appliance

Work Processing Flow with the ISPM Appliance for SAP

Maintenance Lead
Tech

17. Equipment
Failure Metrics

Aprovals and
Processing

1. Equipment
Taxonomy
(prerequisite)

1. Multi-Level Failure Reporting (MLFR) is used

to aggregate failure data at the parent
equipment level.
2. ISPM and MLFR are registered trademarks
of Reliability Dynamics LLC.

Maintenance
Engineer

Responsibilities and External Processes

2. Equipment
Failure Event

Production
Operator

External

Initial findings reason for work

Text description
Failure mode (ISO 14224 only)
Detection method
Failure effect (incipient, degraded,
critical
Condition before malfunction
Other

4. Create Malfunction
Problem Report

3. Work
Initiation

5. System validations
of required data

9. System creates
MLFR1,2 statistical
record (if applicable)

10. Execute
Work

8. Planning
and
Scheduling

13. System
validations of
required data
11. Work
close-out

14. Classify
Malfunction
Report

16. End

15. Quality check

of field input

Yes

6. Approve
Work Request

12. Complete
Malfunction
Repair Report

No

7. End

Post-repair assessment
Identify primary component failure
Primary comp. failure mechanism
Root cause of primary comp. failure
Corrective action
Failure end date/time
Other
Failure mode inference (PERD only)

1. MLFR data (if relevant)

2. Classification of failure event
Consequence matrix
Production loss
Areas and/or other equipment affected
Other

ISPM Appliance
Reliability Dynamics LLC 2014

Reliability Dynamics

ISO 14224: Table 6

Failure Data (Required)

ISO Definitions
Normative

= prescriptive = how

to comply
Informative = descriptive = help
with conceptual understanding
Normative Terms
shall

indicates a requirement
should indicates a
recommendation
may is used to indicate that
something is permitted
can is used to indicate that
something is possible

Reliability Dynamics LLC 2014

Reliability Dynamics

Resource Optimization:
Maintenance Engineer

60%
Typical Solution

Percent of Available Time

50%

ISPM
40%
30%
20%
10%
0%
Data collection Data mining

Reliability Dynamics LLC 2014

Equipment Administration
optimization
Reliability Dynamics

PM Condition Reporting

PM Condition Report
An event record in an ERP/CMMS system related to a inspection/preventive maintenance
work order
The work order specifies what needs to be inspected
Used to document inspection results for each item inspected
Inspection verdict: discrete pass/fail judgment
Inspection details, measurements, etc.

Used to optimize preventive maintenance/inspection programs

Inspection interval
Inspection scope

Used in conjunction with follow-on work notifications and malfunction reporting

Reliability Dynamics LLC 2014

Reliability Dynamics

Failure Metrics

Failure metrics are measurements of equipment reliability and operational

performance
Calculated parameters
MTBF, MTTF, MTTR, MTBR, mean time bypassed, etc.

Dataset queries
User-defined criteria, e.g.
Number of pump failures where production loss exceeds US $100,000
Predominant failure mode for said pump failures
Service conditions for said pumps
Primary failure component for said pumps
Failure mechanism and root cause for said pump primary failure component
Aggregated true cost of failure for all pumps (repair costs + consequences)

Reliability Dynamics LLC 2014

Reliability Dynamics

ERP Failure Analytics:

Multi-Variable Selection Criteria
Reporting Level (Primary Equipment)
Report

Criteria Set 1

Criteria Set 2

Criteria Set 3

Pumps in
hydrocarbon
service

Failure mode is
process leak

Production loss >

US $1.0MM

Manufacturer
part number,
mechanical seal

Root cause is
improper
installation

Operational loss >

US $50K

Steam turbines
in hot standby
service

Failure mode is
external leakage,
process medium

Injuries requiring
medical treatment
SELECTION
SELECTION
CRITERIA
CRITERIA SET
SET 11

Hierarchical Reporting
Report

Selection Node

Criteria Set 1

Criteria Set 2

Facility, Plant,
area, service,
equipment
installation,
equipment
class, or subunit

Pump thrust
bearing failures,
> 50 HP, utilities
service

Detected with
predictive
inspections

Reliability Dynamics LLC 2014

SELECTION
SELECTION
CRITERIA
CRITERIA SET
SET 22

REPORT
REPORT OUTPUT
OUTPUT
INTERSECTION
INTERSECTION OF
OF
CRITERIA
CRITERIA
SPECIFICATIONS
SPECIFICATIONS

SELECTION
SELECTION
CRITERIA
CRITERIA SET
SET 33

Reliability Dynamics

ERP Failure Analytics Demonstration:

Hierarchical Selection Example

Reliability Dynamics LLC 2014

Reliability Dynamics

ISPM Appliance for SAP: Solution Delivery

System customization
Enhancements
Consistent with SAP Official ABAP Programming Guidelines
Transferred to Customer system via SAP Transport Management System (STMS)
Configuration transferred via manual settings and STMS

Master data content

Transferred via SAP Legacy System Migration Workbench (LSMW)

Standard ERP quality control processes:

Multi-environment testing and incremental Customer sign-offs

Solution documentation
Solution overview
Business process documents
Configuration and change documentation
Technical specifications

Reliability Dynamics LLC 2014

Reliability Dynamics

Contact

Tony Ciliberti, PE
Reliability Dynamics LLC
Principal Engineer
Mobile:
Office:
Email:
Web:

+1-574-274-3887
+1-713-487-7271
tony.ciliberti@rd-eam.com
www.rd-eam.com

Reliability Dynamics LLC 2014

Reliability Dynamics