MRO Today

MRO Today

R.T. "Chris" ChristensenStructuring an effective maintenance operation

by R.T. “Chris” Christensen

Part 2: From firefighting to RCM
As you will recall, part one of this series addressed “fighting fires,” or the most cost ineffective way of managing the maintenance function. This article will give you some pointers on moving away from fire fighting to the world of RCM or Reliability Centered Maintenance.

The third article will be about the cost benefit analysis that the cost improvement that goes along with the improvements made as you move to RCM.

RCM as a way of life

The first thing to realize is that this is not an implementation program but more of a fundamental change in the way you approach your maintenance operation; RCM is a continuous process that takes a great deal of effort.

The objective is to move from a reactive to a proactive maintenance operation.

The goal is to know the condition of the equipment and maintain to the level needed to do the job. We don’t want to over-maintain the equipment, which is a waste of money, but we do need to maintain the equipment so that it is fully capable to complete the task that is required. This is Reliability Centered Maintenance. The catch here is that you just don’t say that we are going to do RCM and be doing it the very next day.

This is where most of the current maintenance functions have problems when they move from firefighting to RCM. When you were in a firefighting mode you were in what we call high cost maintenance. You ran to failure and then only patched it or did minimal work to get the equipment back into service. You thought that you were saving money by getting all you could out of the equipment before the repair, but you really weren’t.

What run-to-fail really costs
While there is a cost to repair, the biggest cost is lost production. All your repairs were being done while the equipment was scheduled to make parts. Run-to-failure means all those parts are late, or even worse, the order is lost because you couldn’t produce and meet the customers’ requirements.

While run-to-failure is costly, what is worse is that you consumed the equipment. The equipment has not been properly repaired or maintained and as such it is no longer as capable as it was when new. It still works but the outgoing quality is now lower, the machine is probably running slower and the time between failures is getting shorter. Output is down and maintenance cost is rising. Understanding this simple fact prepares you to move toward RCM.

From reactive to proactive in seven “easy” steps
What you need to do is to bring the capabilities of the equipment back to the level it was before you began to run it into the ground or consume it. This basically means that you now have to spend money and correct deficiencies that are now part of the operations of the machine and restore its capabilities. You must pay for all your past shortcomings and replace the worn out parts that you have been living with.

The basic steps in moving from reactive to proactive maintenance are:
1. Establish a budget for the work
2. Schedule machine down time through production
3. Choose the highest volume, most problematic machine or process and correct it
4. Establish proactive Preventive and proactive Maintenance programs for that machine
5. Apply Lean technology and 5S programs to the machine so it can perform as desired
6. Establish machine performance metrics
7. Begin work on the next problematic machine.

Doing this will allow you to attack the main causes of the problem machines that you have and also begin to add reliability to the machines beginning with the equipment that has the highest use rate.

What we have found is that the cost of maintenance actually will decrease and the time available for production will increase. And, (and this is the greatest saving), the machine will be maintained during time when it is not needed for production and minimal production time will be lost. This is where you need to change how you measure machine effectiveness.

Useful metrics
Try using some of these metrics to track your equipment:
1. Maintenance cost per run hour
2. Out-going machine controlled quality levels
3. Set-up downtime
4. Machine adjustment downtime
5. Machine available for production time

Only measure what the machine is involved in. Total maintenance cost per machine means nothing unless it is tied into the parts produced per dollar of maintenance. Machine utilization is a measure of sales. The more sales sells, the more the machines will have to do and the more that they will run and be utilized. Utilization is NOT a maintenance measure.

So think your way through and work on making the shift from reactive to proactive maintenance all the way to RCM. What we have seen when companies do this is a reduction in maintenance cost in the 20 to 30 percent range and an increase in productivity of the equipment in the 5 to 20 percent range. More for less, what a concept.

R. T. “Chris” Christensen is Emeritus Faculty at the University of Wisconsin, Madison, and is Emeritus Director of Operations and Maintenance Management Certificate Programs at the Universities Executive Education Department in the School of Business. Contact Coach Christensen at 262-613-0073; E-mail: crchristensen1958@wi.rr.com.

This article appeared in the June/July 2006 issue of MRO Today magazine. Copyright 2006.

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Part One: Fighting fires

Part Two:
Structuring an effective maintenance operation

Part Three:
What does your maintenance really cost?