Overview Maintenance Optimization

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OverviewMaintenance Optimization
Maintenance Optimization (2008? 1??)

• Prof. Bo-Suk Yang
• Intelligent Mechanics Lab.
• Pukyong National University

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Contents
Why needs Maintenance Optimization
Maintenance Strategy What is Maintenance
Optimization Goal of Maintenance Optimization
Benefit of Maintenance Optimization True
Maintenance Optimization Process
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Why needs Maintenance Optimization
? Severe competition in the market has forced to
become more cost-effective ? Production and
maintenance personnel must increasingly be
able to identify which maintenance operations
are truly necessary and how to schedule them
without significant production disturbances
? Ensuring operations at low costs sets many
challenges for maintenance operations ?
Larger maintenance jobs should be planned
according to need rather than at
pre-determined intervals
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Why needs Maintenance Optimization
? Maintenance cost estimated in USA 740
billion annually World-wide probably
between 2 3 trillion (DiStefano Covino,
2007) ? Annual excess maintenance spend (184
billion) Productivity losses (553
billion) Potential annual reliability
benefit (737 billion)
Annual excess maintenance spend (in billion US )
by U.S. industry
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Why needs Maintenance Optimization
? The economical consequences from an unexpected
one-day stoppage in industry may become as
high as up to 100,000 200,000 euros as
follows Nuclear power plant 300,000
Pulp and paper plant 200,000 Steel
works and continuous casting 150,000
Chemical factory, coal power station and mining
plant 100,000 Oil refinery
50,000 (Holmberg et al., 2004)
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Why needs Maintenance Optimization
? Maintenance Data

• 100 billion spent annually on maintenance in the
  USA
• Downtime costs as much as 50,000 per hour
• 3040 of downtime is caused by poor design or
• maintenance
• 18 of maintenance work unnecessary

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Why needs Maintenance Optimization
? Spare parts inventories should be kept low but
also sufficiently large to ensure the right
parts are available when needed ? Proactive
maintenance also sets new demand on plant
automation and information solutions ?
Information databases contain process and
equipment data for an entire plants
lifecycle
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Why needs Maintenance Optimization
? Asset owners of large industrial facilities
must try to achieve a balance between
maintaining high equipment reliability and
controlling overall maintenance
expenditures ? Maintenance cost is a significant
portion of the operating expenses of the
facility ? Poor equipment performance leads to
facility downtime, which decreases the
efficiency of operations ? Poor performance can
also lead to early component failure, and
possibly impact on the safety of workers
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Why needs Maintenance Optimization
? Change in Maintenance Strategy
Maintenance in a time perspective (Waeyenbergh
and Pintelon, 2002)
RAM Reliability, Available, Maintainability PM
Preventive Maintenance ICT Information and
Communication Technology CBM Condition Based
Maintenance CM Condition Monitoring WO
Work-order.
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Why needs Maintenance Optimization
? Strength Weaknesses of Different Maintenance
Types
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Why needs Maintenance Optimization
? Strength Weaknesses of Different Maintenance
Types
Percentage of time spent on equipment maintenance
activities
? According to the Federal Energy Management
Program (FEMP) in USA, a functional PdM
program can provide savings of 8 to 12
over a program utilizing only PM strategies.
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Why needs Maintenance Optimization
? Strength Weaknesses of Different Maintenance
Types
The FEMP also came up with the following
industrial savings based on the initiation of a
functional PdM program (Thorp, 2007).
Return on investment 10 Reduction in
maintenance costs 25 30 Elimination of
breakdowns 70 75 Reduction in downtime
35 45 Increase in production 20 25
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Why needs Maintenance Optimization

• Maintenance systems are critical to organizations
  in order to meet their goals and objectives.
• Maintenance can be used to provide competitive
  advantages.
• Maintenance management has evolved over time.
• Now days concepts such as strategic maintenance
  management are emerging.

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Role of Maintenance

• Organization objectives
• Profitability
• Return on investment (ROI)
• Customer service
• Safety and environment
• Cost

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Role of Maintenance

• Maintenance has a high impact on business
  profitability, through its impact on
• Equipment capacity
• Availability rate (A)
• Performance rate (R)
• Product quality rate (QR)
• Safety
• Health and the environment
• Cost of production

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Quantification of the Impact

• Maintenance provide productive capacity (PC)
• Productive capacity is a function of utilization
  
• and over all equipment effectiveness (OEE)
• OEE A ? R ? QR
• PC U ? OEE (???? ??? ? ??????)
• where U is utilization

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Strategic Maintenance Objectives

• Maximize availability
• Ensure equipment are operating at full capacity
  (rate)
• Integrate and continuously improve all elements
• to ensure the best quality rate
• Improve equipment utilization

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Strategic Maintenance

• Strategic maintenance has four dimensions
• ? Managerial Dimension
• Aligning maintenance objectives with
  organizational
• objectives
• Performance evaluation
• Human resources capacity
• ? Technical Dimension
• Functional requirements
• Design upgrade
• Maintainability requirement

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Strategic Maintenance

• Strategic maintenance has four dimensions
• ? Operational Dimension
• Production scheduling
• Spare parts inventory
• Keeping with technology
• Developing competencies
• ? Commercial or Economic Dimension
• Sales and marketing
• Production costs
• Maintenance costs

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What is Maintenance Optimization
? Maintenance optimization is a process that
attempts to balance Maintenance
requirements (economic, technical, etc.)
Resources used to carry out the maintenance
program (people, spares, equipment,
facilities, etc.) for the entirety of a
plants lifecycle
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Basic Age Repair/Replace Model
First models date from end 50s / 60s Barlow
Proschan, Jorgenson and McCall
Total maintenance cost vs. Mean Time between
Maintenance (MTBM)
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Goal of Maintenance Optimization
? To select the appropriate maintenance technique
for each piece of equipment within a system
? To identify the periodicity that the
maintenance technique should be conducted to
achieve regulatory requirements, maintenance
targets concerning safety, equipment
reliability, system availability and costs

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Goal of Maintenance Optimization
Maintainability Requirement
? Knowledge about system and plant condition
Technical know-how Data base
Inspection Monitoring ? Selection optimal
mix of maintenance polices Predictive
Preventive Reactive
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Important Relations between Stakeholders
Need to be well-defined and organized to ensure
overall optimization
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Conflicts between Organizations

• In design phase advanced reliability studies have
  been carried out, taking failure consequences and
  costs into account as well as lifetime
  distributions
• As a result redundancy decisions are made
• However, once system is transferred to user, he
  has to learn again. He also does not have the
  information, so learning goes slow.
• Maker is often not involved in the operations, it
  creates uncertainty to make more money.

Why does not only sell equipment, but provide
also all data around it?
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True Maintenance Optimization Process
? Continually monitors and optimizes the current
maintenance program to improve its overall
effectiveness ? Integration of data provided
by monitoring systems into a plants
information system creates the best possible
foundation for optimization of plant-wide
maintenance operations
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Comparison of Maintenance Approach
? Planned approach conducts maintenance at
the most optimum time, which is often before
the equipment fails
? Reactive approach performs maintenance as
a result of unexpected failures ? Preventive
approach performs maintenance strictly on a
scheduled basis
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Predictive Maintenance Approach

• Characteristics
• Maintenance performed at needed time
• Asses probability of failure
• Technology based
• Advantage
• Lower costs
• Extend equipment lifecycle
• Assist in identifying root cause
• Disadvantage
• Requires investment
• Requires additional skills

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Preventive Maintenance Approach

• Characteristics
• Time based
• Forecast and prepares for planned downtime
• Advantage
• Improves resource planning
• Reduces downtime
• Control budget
• Disadvantage
• Activities performed regardless of need
• Possibility of statistical and human errors

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Reactive Maintenance Approach

• Characteristics
• Run to failure
• No routine tasks performed
• Advantage
• Do not spend money unless you have to
• Disadvantage
• Most expensive approach
• Less availability
• Longer downtime
• Higher capital costs

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Continuous Assessment

• Goals and targets
• Performance measurements
• OEE
• Productive capacity
• ROI
• Cost
• Technology adaptation
• Learning and development
• Action plans

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Benefit of Maintenance Optimization
When maintenance optimization is effectively
implemented it will get some benefits as follows
? Improve system availability and performance ?
Reduce overall maintenance and logistic costs ?
Improve equipment reliability and system safety ?
Reduce resource waste ? Move from a reactive or
preventive approaches to a planned approach ?
Help to eliminate incremental deterioration in
performance ? Avoid unplanned downtime
process disturbances
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