MINEvolution 2011

UTILISING SMART TOOLS TO MANAGE THE BUSINESS & COST OF FLEET MAINTENANCE
Trevor Hughes

Asset Management Engineers

+Maintenance Management Consultants +Established in 2006 +Substantial growth over the last 3 years
(grown from 5 employees to 10 currently)

+Quickly established ourselves as leaders in Classified Plant Management (Clients include

Newcrest Telfer, FMG, CPM, RTIO, BHPBilliton)

+Developed in close association with Ramesys Global a Maintenance Budgeting & Reporting System +Passionate about helping our clients achieve their goals
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In House Maintenance & MARCs

Why does in house Maintenance & MARCs fail to meet targets?
+ Poorly managed by the client rep and/or MARC Contractor + Lack of understanding of the MARC or Maintenance targets + Lack of appropriate infrastructure + Maintenance is not being driven + Too busy fighting bushfires + Lack of meaningful KPIs. Focus on the lag indicators + Honeymoon period
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Case Study Smart Tools 1

Objective Maintenance Audit Tool
+ Audited 20 Sites using an Objective Maintenance Audit Tool + Focuses on 8 key areas of Maintenance Management + Overall Results
o Max = 55.3% o Average 46.4% o Min 28.3%

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Audit Results
70% 60% 50% 40% 35% 30% 20% 10% 0%
Org Struct / Culture / Leadership Work Managem ent Contractor Managem ent Materials Managem ent Perform ance Measurement Asset Managem ent / Cont Im pr Budgeting & Cost Control Inform ation Technology

63%

64% 59% 57%

63%

64% 58%

38% 34% 31% 23% 22% 28% 23% 22%

Focus should be here

Performance Measurement includes all Maintenance KPIs

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Performance Measurement
Is important for business success So why is it often so badly done?
+ Too busy trying to do our jobs + Often the hardest part to measure and understand

BUT IT DOESNT HAVE TO BE!

Imagine a tool that could give you a quick, high level snapshot of your business performance.
+ One Minute Manager

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Maintenance KPIs
You cant control what you dont or cant measure
+ Why are some KPIs measured and not others
o In the contract (Availability) o Easier to measure

Two types of KPIs

+ Lead Indicators
o Measure of your inputs or efforts

+ Lag Indicators
o Measure of the results of your inputs/efforts

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Lead Indicators
Lead Indicators (Measure of your inputs or efforts)
+ Maintenance Business Process KPIs
o Jobs by type completed in a period (by jobs & by hours) o Schedule Loading o Schedule Completion o Schedule Work Ratio (by jobs & by hours) o Preventive Ratio (by jobs & by hours) o PM or Service Completion o Outstanding Work

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Lag Indicators
Lag Indicators (Measure of the results of your inputs/efforts)
+ Output measures
o Availability o Utilisation o % Run Time o Reliability (measured as MTBF) o Performance against Budget

One Minute Manager

+ Lead indicators drive the lag indicators
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Smart Tools
If the lead indicators are so important why arent they measured very well?
+ Lack of processes + Lack of systems to capture the lead indicators + Extra resource just to manage the information

Smart Tools
+ Simple to use + Extracts existing information out of your Maintenance Systems + Ensures the processes are followed and changes behaviour

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Case Study Smart Tools 2

Key Performance Indicator System

1 Next weeks scheduled work is locked in the KPIS the week before

3 The KPIS compares what you said you were going to do with what you did do

2 At the completion of the scheduled week another snapshot of the CMMS is taken

This information is driven from data already in your CMMS

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Key Performance Indicator System

PM COMPLETION (Ratio of system generated PM work orders (jobs) completed against the PM work orders scheduled for the same period)
70 60 50 No of WO's 40 60% 30 20 10 0 Week No PM's Sched PM's Comp % 1106 32 21 66% 1107 62 56 90% 1108 29 28 97% 1109 33 24 73% 1110 52 47 90% 1111 49 42 86% 1112 37 27 73% 1113 26 20 77% 1114 42 38 90% 1115 47 30 64% 40% 20% 0% 120% 100% 80%

+PM or Service Completion trending down +Will lead to increased breakdowns +Increased breakdowns reduce availability & reliability
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Key Performance Indicator System

SCHEDULE COMPLETION (The ratio of completed scheduled work orders, compared to all work orders scheduled for the same period)
90 80 70 No of WO's 60 50 40 30 20 10 0 Week No Sched WO's Sched WO's Comp % 1106 47 34 72% 1107 75 66 88% 1108 43 39 91% 1109 53 38 72% 1110 64 57 89% 1111 80 57 71% 1112 60 42 70% 1113 55 33 60% 1114 51 46 90% 1115 70 47 67% 120% 100% 80% 60% 40% 20% 0%

+ Again Schedule Completion is trending down + If you are not working on what you said you would do, then what are you working on
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Key Performance Indicator System

+ If you are not working on scheduled jobs then you must be working on unscheduled jobs

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Why are the beancounters always on my case Often told what the Maintenance Budget is
+ Meet contractual obligations + No work plan budget based on OEM recommendations to justify budget + No automatic reforecasting of major component changes

Case Study 3 - Smart Tools - MBRS

+ Simple to use (designed for planners & supervisors) + Activity based budget + Automatic reforecasting (will automatically update the forecast based
on actual run hours)

+ Multiple scenarios and budget periods + Linked to your Maintenance system (SAP, Pronto, Ellipse)
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Maintenance Budget by Task or Activity

+ All the details behind the planned budget expenditure.

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Reducing the Budget

+ Realistic reductions can be made to the budget by intelligent stretching of service intervals. + Compared against baseline budget to evaluate cost savings + Risk / return assessments can be made.
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Maintenance Cost Variances

+ Quickly identify and drill down to the problem areas. + Allows focus on analysing reasons for failure and + Identifying corrective actions to prevent future failures.
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Investigating the Variances

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What is the Full Year Cost Outcome?

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In Summary
What would the one minute manager do?
+ Focus on the lead indicators + If the lead indicators are under control then the lag indicators will be under control + If the lag indicators are under control then the Operations Manager will be off my back + Weekly focus on activities + Monthly focus on costs + If the costs are under control then the beancounters will be off my back

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In Summary
Utilise smart tools to collect, manage & report the data
+ Maintenance Systems Audit Tool + Maintenance Key Performance Indicator System + Maintenance Budgeting & Reporting System + Classified Plant Management System

It is not difficult to improve Performance Measurement

+ Smart tools support the analysis of variance against plans

However, understanding problems is only valuable if actions are taken to improve performance
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Outcomes / Lessons Learned

Case Study 1 Maintenance Auditing Tool
+ Significant Maintenance Improvement + Standardised business processes and KPI reporting over 6 sites

Case Study 3 - MBRS

+ Maintenance Budget was not cut + Used to justify manning levels

Case Study 4 - CPMS

+ Reduces risk of non compliance with the MSIR 1995 + Improves the management of Classified Plant on site
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Remember

SMART MAINTENANCE IS GOOD BUSINESS !

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