Page 1 of 149

Table of Contents

1.0 Business & Management ............................................................................ 4

1.1 Create Strategic Direction and Plan for M&R Operation ...................................... 4
1.2 Administer Strategic Plan ................................................................................. 5
1.3 Measure Performance ................................................................................... 18
1.4 Organizational Changes ................................................................................. 38
1.5 Communication with Stakeholders .................................................................. 44
Pillar 1 Metrics Appendix .................................................................................................... 48
2.0 Manufacturing Process Reliability ........................................................... 50
2.1 Operating Procedures .................................................................................... 50
2.2 Process Improvement Techniques .................................................................. 56
2.3 Change Management .................................................................................... 61
2.4 Maintain Processes........................................................................................ 65
Pillar 2 Metrics Appendix .................................................................................................... 68
3.0 EQUIPMENT RELIABILITY........................................................................ 70
3.1 Determine Equipment Reliability Expectations ................................................. 70
3.2 Evaluate Equipment Reliability And Identify Improvement Opportunities ............ 74
3.3 Establish A Strategic Plan To Assure Reliability Of Existing Equipment ............... 76
3.4 Establish A Strategic Plan To Assure Reliability Of New Equipment .................... 78
3.5 Justify the Costs of Selected Plans for Implementation ..................................... 79
3.6 Implement Selected Plans to Assure Equipment Reliability ................................ 81
3.7 Review Reliability Of Equipment And Adjust Reliability Strategy ........................ 83
Pillar 3 Metrics Appendix .................................................................................................... 85
4.0 Leadership and Organization ................................................................... 87
4.1 Determine Organizational Requirements ......................................................... 87
4.2 Analyzing Organizational Capability ................................................................ 92
4.3 Develop the Organization Structure ................................................................ 95

Page 2 of 149
 4.4 Develop Personnel ...................................................................................... 103
4.5 Lead and Manage People............................................................................. 111
Pillar 4 Metrics Appendix .................................................................................................. 118
5.0 Work Management................................................................................. 120
5.1 Identify, Validate and Approve Work Intake .................................................. 120
5.2 Prioritize Work ............................................................................................ 122
5.3 Plan Work .................................................................................................. 125
5.4 Schedule Work ........................................................................................... 129
5.5 Execute Work ............................................................................................. 132
5.7 Analyze Work and Follow-Up ....................................................................... 136
5.8 Measure Work Management Performance ..................................................... 139
5.9 Plan and Execute Projects............................................................................ 141
5.10 Use Information Technologies effectively .................................................... 143
5.11 Manage resources and materials ................................................................ 145
Pillar 5 Metrics Appendix .................................................................................................. 148

Page 3 of 149
 1.0 Business & Management
Translate business goals into maintenance and reliability goals that support an
organization’s business goals.

1.1 Create Strategic Direction and Plan for M&R Operation

Maintenance and reliability leaders create a vision and a mission as well as a
strategic plan, to guide implementation of appropriate maintenance and
reliability systems and processes, in order to achieve organizational business
goals. The strategic plan provides a clear purpose (a demonstrated business
need), defined goals and, in turn, benefits to the organization. Goals should be
clear, measurable and established in a top-down (cascading) manner.
Maintenance and reliability leaders utilize their knowledge of industry
benchmarks to assist in establishing these goals, provide a measurement
system, and determine gaps in their maintenance and reliability processes. It is
important for operations, maintenance, and other involved disciplines to agree
on the goals and the measures used to quantify them. Equally important is an
understanding of everyone’s role in the strategic plan and the responsibilities
they have. Routine review and discussion of progress will provide team
commitment and allow for periodic adjustments to the plan that may be
required.

1.1.1 Concepts
Understand the organization’s business goals
Understand current maintenance and reliability capabilities
Understand “the gap” between current capabilities and stated goals
Understand risk and culture
Establish a vision, mission, and strategic plan
Establish clear and measurable goals
Strategic plan and goals needs to align with and support overall business
goals
Strategic plan and goals must be understood and supported by operations,
maintenance, and other involved stakeholders

1.1.2 Tools

1.1.2.1 Reporting Systems

Page 4 of 149
 1.1.2.2 Strategic Planning Tools
Balanced Scorecard
Key Performance Indicators (KPI)
SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats)
Risk analysis
OEE (Overall Equipment Effectiveness)

1.1.2.3 Cost Concepts

ROI (return on Investment)
NPV (Net Present Value)

1.1.2.4 Benchmarking

1.1.3 Processes
Create vision, mission, and strategic plan to support organizational business
goals
Develop a business case for change
Develop cascading goals
Benchmarking
Reliability and Maintenance assessments
Leading and lagging KPIs
Gap assessment
Develop roles and responsibilities

1.1.3.1 Definitions
Mission
Vision
Strategic plan

1.2 Administer Strategic Plan

To obtain the support and resources required to implement the strategic plan, a
solid business case should be developed that specifies the benefits in financial
terms and operational risk mitigation. The business case should include an
understanding of the changes that will be required to the organization structure,
personnel, roles and responsibilities, tools and training, and priorities.

Page 5 of 149
Support for the resource requirements will be enhanced when management
understands the value provided by the plan. Maintenance and reliability leaders
should communicate this vision to those with a stake in the process to garner
commitment to implementation and execution of the plan. This requires
champions positioned to lead the effort and enlist support of customers,
stakeholders and staff.

1.2.1 Concepts

1.2.1.1 Understand the Vision, Mission, and Strategic Plan

1.2.1.1.1 Vision
A vision statement describes a future state of a venture in both short and
long terms. Intervals of two to five to ten years are common. Vision
statements focus on tomorrow and what the venture would like to become.
The language often is in present tense as if the vision had been achieved.

1.2.1.1.2 Mission
This is the plan for how you will achieve your vision. Your mission is a call
to action. Some reference to a business model would be appropriate. You
need not include every detail, which would only handcuff you later.
Nonetheless, it is through your mission statement that people will be able
to understand how they are going to share your vision with you.

1.2.1.1.3 Strategic Plan

This is a document used to communicate with the organization. You’ll need
to inform the team with the organization’s goals, the actions needed to
achieve those goals and all the other critical elements developed during the
planning exercise.

Strategic planning is an organizational management activity that is used to

set priorities, focus energy and resources, strengthen operations, ensure
that employees and other stakeholders are working toward common goals,
establish agreement around intended outcomes/results, and assess and
adjust the organization's direction in response to a changing environment.
It is a disciplined effort that produces fundamental decisions and actions
that shape and guide what an organization is, who it serves, what it does,
and why it does it, with a focus on the future. Effective strategic planning

Page 6 of 149
 articulates not only where an organization is going and the actions needed
to make progress, but also how it will know if it is successful.

1.2.1.2. Understand the Business Case and Benefits to Stakeholders

We define a business case as a well-reasoned argument designed to convince
an audience of the benefits of an investment, while educating them about the
changes, costs, and risks that will be part of the effort. The goal of your
business case is to inform key stakeholders about the initiative and convince
them to support it in some specific ways.

A complete business case is a package of information, analysis, and

recommendations. It includes a plain language statement of the problem to
be solved, with key data to illustrate its significance, as well as its severity and
complexity. It also identifies customers and other stakeholders and how they
are affected by the problem. The case clearly states assumptions, estimates,
and other weaknesses in your underlying data. It presents the options
available to the decision maker, comparing features, costs and benefits, and
stakeholder impacts for each option. The case concludes with a recommended
course of action and a justification that presents its strengths and weaknesses.

The business case package includes a variety of presentations, both oral and
written, with supporting media such as handouts, slides, or demonstrations.
Your business case distills weeks or months of work. You need to be armed
with all the data, but you will also need to present your findings and
recommendations in a cogent, convincing and interesting way. The best
analysis can be entirely misunderstood if the presentation is disorganized,
overly technical, or too mired in detail. Decide what the key points are and
build your presentation around them. You can always add detail in response
to questions.

1.2.1.3 Identify Champion(s) to Lead Implementation of the

Strategic Plan
A significant factor in the success of projects is the Champion.

A champion is an individual who identifies with a new development (whether

or not he made it) and uses all the weapons at his command against the
funded resistance of the organization. He functions as an entrepreneur within
the organization. Since he does not have official authority to take unnecessary
risks, he puts his job in the organization (and often his standing) on the line.

Page 7 of 149
 He has great energy as well as the capacity to invite and withstand
disapproval.
The strategic plan needs ownership at the executive level as well as at the
staff level. Identify champions of the strategic plan at all levels of the
organization and have them help define what’s in it for the people they
influence. It is important to include all verticals of your organization in this
process. Marketing, strategy, planning, and business-development teams
should all have buy-in. There are opportunities across the organization for
strategic growth. Make sure each team is aligned in the goals and doing its
part to execute the plan.

Strategic Plan and Goals must be Understood and

Supported by Operations, Maintenance and Other Involved
Discipline
As mentioned before, everybody must understand what the plan is, the
goals, the instruments, and how the follow up process is to be done.

1.2.2 Tools

1.2.2.1 Reporting Tools

Reporting tools are software applications that make data extracted in a
query accessible to the user. For example, a “dashboard” is a common
reporting tool that makes a variety of information available on a single
screen, in the form of charts, graphs, ordered lists, etc.

To do your job well, you need the right information at the right time.
Unfortunately, that information lives in an ever-increasing array of
disconnected spreadsheets, systems, databases, and applications.

The tool set must include development tools, configuration and

administration tools, and report viewing tools.

CMMS / EAMS
Computerized Maintenance Management System (CMMS) software makes it
easier for maintenance managers to track, manage and report their asset or
equipment maintenance needs. To better understand what a CMMS is, we
will break the term down into individual components:

Computerized: Computerized refers to the fact that with a CMMS, your

maintenance data is stored on a computer.

Page 8 of 149
Maintenance: Maintenance is what users of CMMS software do every day,
whether it’s responding to an on-demand work order for a broken window
or performing routine inspection on a generator. Computer software
cannot accomplish the work of a skilled technician. What it can do,
however, is ensure tasks are prioritized correctly and that everything is in
place (inventory, labor) to ensure success. CMMS solutions give technicians
the freedom to focus less on paperwork and more on hands-on
maintenance.

Management: Managing maintenance is the most essential role of a CMMS

solution. Maintenance management software is designed to give users
immediate insight into the state of his or her maintenance needs with
comprehensive work order schedules, accurate inventory forecasts, and
instant access to hundreds of invaluable reports. CMMS solutions make
maintenance management easier by empowering managers with
information so that they can make the most informed decisions possible.

Systems: Different CMMS solutions offer diverse types of systems. The

best CMMS systems allow users to accomplish existing maintenance
practices more effectively while introducing time-saving features that lead
to cost reductions and further time savings.

Enterprise Asset Management System (EAMS) is the optimal lifecycle

management of the physical assets of an organization. Subjects covered
include the design, construction, commissioning, operations, maintenance
and decommissioning or replacement of plant, equipment and facilities. To
better understand what an EAMS is, we will break the term down into
individual components.

Enterprise: Enterprise refers to the scope of the assets in the organization

departments, locations, facilities; and potentially supporting business
functions, including Finance & GL, Human Resources and Payroll. Various
assets are managed by modern enterprises at present. An “Enterprise”
often refers to more than one plant, often a group of plants, and often the
term covers multiple operations within a single plant.

Assets: The assets may be fixed assets like buildings, plants, machineries or
moving assets like vehicles, ships, moving equipment etc.

Page 9 of 149
 The lifecycle management of the high-value physical assets requires
regressive planning and execution of the work.

Management: Maintenance Management solutions helps companies like

yours do the following:
Deploy maintenance resources effectively.
Manage maintenance-related, work-order processes efficiently.
Schedule maintenance based on asset condition rather than on arbitrary
dates.
Model scenarios to determine optimum preventive maintenance.
Create customized reports to meet business-specific asset management
needs.
Enterprise Asset Management and Maintenance Solutions enables companies
to improve performance visibility by analyzing data for key trends and
anomalies, forecasting reliability issues, and making forward-looking
decisions that deliver improved bottom-line results.

Key functions of EAM software include the following.

Work Orders: Scheduling jobs, assigning personnel, reserving materials,

and recording costs.

Preventive Maintenance: Keeping track of preventive maintenance

inspections and jobs, including step-by-step instructions or checklists, lists
of materials required, and other pertinent details.

Asset Management: Recording data about equipment and property

including specifications, warranty information, service contracts, spare
parts, purchase date, and expected lifetime.

Inventory Control: Management of spare parts, tools, and other materials

including the reservation of materials.

Page 10 of 149
 Advanced Reporting and Analytics: Creating customized reports and
analyses that can be used to forecast likely problems in time to prevent
them. Financial Management and Reporting Tools include Purchase
Requisitions (PR), Purchase Orders (PO), and Approvals for Expenditures
(AFE)
Scorecards
A performance scorecard is a graphical representation of the progress over
time of some entity, such as an enterprise, an employee or a business unit,
toward some specified goal or goals. Performance scorecards are widely
used in many industries throughout both the public and private sectors.

Scorecards can be arranged into many visual configurations, but most will at
least place goals alongside a running tally of current totals, to provide an at-
a-glance measure of progress.

Though the term “scorecard” is often used synonymously with “dashboard,”

there is at least one significant difference: Scorecards must exhibit progress
against a goal, while dashboards can simply display individual pieces of data
without any context.

1.2.2.2 Communication Plan

The communication plan serves as a guide to the communication and
sponsorship efforts throughout the duration of the project. It is a living and
working document and is updated periodically as audience needs change. It
explains how to convey the right message from the right communicator to
the right audience; and through the right channel at the right time. It
addresses the six basic elements of communications: communicator,
message, communication channel, feedback mechanism, receiver/audience,
and time frame.

Communication plans should encompass one time and repetitious events to

inform and update key audiences and stakeholders on vision, case for
change, goals, programs, metrics, and key personnel; along with information
on where to get more information as well as key contacts for answering
questions and providing ongoing feedback.

A communication plan includes the following:

Page 11 of 149
 Who – The target audiences.
What – The key messages to be articulated.
When – The timing. It specifies the appropriate time-of-delivery for each
message, including repeating events or updates.
Why – The desired outcomes.
How –The communication vehicle. It is how the message will be delivered.
By Whom – The sender. This is the person who will deliver the information
and how he or she is chosen.

1.2.2.3 Project Planning Methodology

Project management is the discipline of initiating, planning, executing,
controlling, and closing the work of a team to achieve specific goals and
meet specific success criteria. A project is a temporary endeavor designed to
produce a unique product, service or result with a defined beginning and end
(usually time-constrained and often constrained by funding or deliverable)
undertaken to meet unique goals and objectives, typically to bring about
beneficial change or added value.

The temporary nature of projects stands in contrast with business as usual

(or operations), which are repetitive, permanent, or semi-permanent
functional activities to produce products or services. In practice,
the management of such distinct production approaches requires the
development of distinct technical skills and management strategies.

The primary challenge of project management is to achieve all the project

goals within the given constraints. This information is usually described in
project documentation, created at the beginning of the development
process. The primary constraints are scope, time, quality and budget. The
secondary challenge is to optimize the allocation of necessary inputs and
apply them to meet pre-defined objectives.

1.2.2.4 Milestone
Milestones are tools used in project management to mark specific points
along a project timeline. These points may signal, among other anchors,
such anchors as the following: a project start and end date, a need for
external review, or input and budget checks. In many instances, milestones
do not impact project duration. Instead, they focus on major progress points
that must be reached to achieve success.

Page 12 of 149
 A good project management plan will include timelines that allow the
organization to clearly see the time investment necessary to implement the
plan and project.

1.2.3 Processes

1.2.3.1 Present Business Case to Stakeholders

Addressing the individual concerns of stakeholders in the room will go a long
way toward winning you allies and gaining buy-in by key stakeholders and
formal and informal change agents within the organization. For example, if
the finance person frets about keeping expenses under control, discuss
expense numbers; if someone is interested in growth in Asia, show how your
project helps the company grow in the region.

Research past presentations and outcomes to make sure bases are covered.
If other projects had questions or issues, make sure you have answers and
address those issues.

Consider allowing decision makers to preview your presentation. Ask for their
input in advance and include their recommendations in the final
presentation. That increases their investment in your success. Letting key
stakeholders see how you listened to their input and included their ideas
increases their buy-in into your proposal.

1.2.3.2 Communicate the Plan to Garner “Buy-In”

For a plan to be effective, it must enjoy full support from an organization’s
executive leadership. An information security officer must play the role of a
salesman, not only to corporate leadership but also to rank-and-file staff.
Top-to-bottom organizational buy-in is essential and will dictate the
effectiveness of the plan and its associated policies and procedures.

The need for executive level sponsorship is twofold. First, to assure staff
buy-in, corporate leadership needs to visibly and consistently validate the
policy and procedures. If the executive level doesn’t fully support the
program, there will be little reason for the rest of the organization to do so.
Second, it is necessary to ensure that funding will be in place to support the
program. A significant initial investment of human resources, hardware, and
software is necessary for the correct development of the program.

Page 13 of 149
It is vital to communicate with top executives and receive their attention and
support. Changes and movements are always involved in these projects and
the support and goodwill of all of the organization including top management
is necessary.

1.2.3.3 Determine Necessary Organizational Structure and Staffing

The organization may be structured in diverse ways, according to its main
objectives. Company structure determines how the business will operate and
perform. Organizational structure can allow for the allocation of
responsibilities for the company’s functions in management and production.
Operational standards and routines may be developed based upon the
foundation of the organizational structure. Designing an organizational
structure helps to determine which staff participate in decision making,
which can be helpful in shaping the actions of the company or business.

An organizational structure defines how activities such as task allocation,

coordination and supervision are directed toward the achievement of
organizational aims. Organizations need to be efficient, flexible, innovative
and caring to achieve a sustainable competitive advantage. Organizational
structure can also function as a viewing glass or perspective through which
individuals perceive their organization and its environment.

1.2.3.4 Determine Roles, Responsibilities and Expectations

The success of a team can be impeded by a lack of clarity regarding the
roles, responsibilities, and expectations of the various agencies and
individuals who compose its membership. To fully understand the distinction
between a role and a responsibility, please keep in mind the following
definitions:

Roles are the positions team members assume or the parts that they play
in an operation or process. (For example, a role an individual might
assume is that of facilitator, or communications liaison.) Formal roles
essentially describe “who” is responsible for “what.”
Responsibilities are the specific tasks or duties that members are
expected to complete as a function of their roles. They are the specific
activities or obligations for which they are held accountable when they
assume—or are assigned to—a role on a project or team. (For example,
the role of a team facilitator might include responsibilities as follows: that
meeting agendas reflect feedback and input from all members; that the

Page 14 of 149
 meetings start and end on time; and that all members have opportunities
to contribute to discussions.)
Expectations are performance indicators that evaluate how well the
responsibilities are being performed. They provide a standard by which
people are held accountable for their responsibilities in the organization.

1.2.3.5 Determine Necessary Tools and Training

How should an organization best determine its training needs? Here are
eight ideas to consider:

Define your need area or areas. Once you have identified an area in
which your organization needs to trained or developed, define the need
area with specifics. Can you validate that the need exists? What could
excellence in this area do for your organization? How will excellence
impact your organization’s overall key performance indicators?
Analyze and assess your current state. In addition to traditional analysis,
use an assessment. You can find an assessment to measure just about
anything, from technical skills to soft skills, from leadership competencies
to attitudes, from behavioral tendencies to teaming skills, and everything
in between. Look for instruments that are research-backed and reliably
measure the specific area or areas you identify. A good assessment
should provide comparative norms that you could benchmark your
organization against and then measure an individual’s progress following
training.
Develop your plan. Effective training and development should change
behaviors and performance so never enter into it without a plan. Establish
goals and objectives that describe where you want to be and when.
Determine the resources you will need. Think about what can go wrong
during the execution of your plan and develop contingency plans. Focus
on measurable outcomes that result from employees successfully
applying what they learn.
Engage experts. Face it: If you already had in-house expertise then you
would not have gaps in performance, knowledge and behaviors! You
need the expertise of outside resources that have a proven track record
of helping clients succeed. The good ones will help you design your plan
and they may also recommend assessments and tools to benchmark and
measure progress. The best ones will help you become self-sufficient.

Page 15 of 149
 (Note to self: Beware of those organizations that want to perpetually train
you.)

Train your leaders first. Always train your leaders first. Leaders should
model the new skills and behaviors themselves. They must know the
training well enough to accurately observe performance, reinforce
training and coach employees in applying and mastering the training.
Effective leaders schedule observation time to follow up training. They
have the necessary tools to provide formal and informal feedback to
employees. Unless management observation and feedback is intentional,
what is learned will not be retained and the organization will have wasted
the opportunity and resources spent on a training program.
Train your staff and institutionalize the training. The most effective
training programs are those which follow this sage advice: Never do for
the learner what the learner should do for himself. The learner will only
master a skill or behavior through repeated application. Repetition is the
heart of learning, so what is learned during the training must be
reinforced in the days, weeks, and months following the training.
Catch them doing it right. Leaders should plan on catching their people
correctly applying the training and provide immediate feedback to
encourage continued use and development. An excellent practice
following training is to dedicate a portion of staff meetings for employee
discussion and skills reinforcement. Recognize staffers who have done
well applying what was learned. Finally, remember that people don’t
always do what you expect but they do what you inspect.

1.2.3.6 Determine the Detailed Implementation Plan

In this portion of the business plan, you’ll clarify objectives, assign tasks with
deadlines, and chart your progress in reaching goals and milestones.
Guidelines for the implementation plan include the following:

Objectives: These should be crystal clear and specifically spelled out. You
will use them as a building block for the rest of the implementation plan.
Tasks: This part details what must be accomplished to achieve your
objectives. Include a task manager for each step, so that roles are clearly
defined and there is accountability. As you enumerate tasks and
assignments, these descriptions should be plainly and generally
stated; don’t get into a step-by- step, micromanaged explanation
of how the tasks will be carried out.

Page 16 of 149
 Emphasize the expected results associated with these tasks.
Time allocation: Each task should be paired with an appropriate
timeframe for completion. You should be aggressive but reasonable with
your time allocation to ensure not just completion but competent work.
For assistance in framing this timescale, use a program such as Microsoft
Project, or just create your own Gantt chart.
A Gantt chart is a helpful tool that shows how long it will take to complete
different tasks and in what order the tasks should be finished.
Progress: You or a member of your management team needs to oversee
monitoring each task’s progress and the completion percentage of each
objective. When delays occur, try to get to the root of the problem. Did
the person responsible drop the ball? Did he or she have too many
responsibilities to handle? Did a third party, such as a supplier or the
bank, fail to hold up its end of a deal? Adjust your Gantt chart
appropriately to account for the delay, and make a note of the previous
deadline and the reason it was missed.
The more efficiently you start implementing your business plan, the more
likely it is that you will survive this initial period.

1.2.3.7 Determine Available Resources

Having sufficient support for your efforts to become success will make your
plan and activities more effective and efficient. Having sufficient resources to
carry out the changes you want to make is equally important.

Before you start planning, you need to look at what you already do with
regard and what resources you have available. Then you can further expand
and improve your current efforts.

Resources include the following:

Human resources: People who are already in the staff or who you’ll need
to find.

Financial resources: These include incomes and assignations as well as

other special sources to be determined by the specialist to find what are
we looking.

Materials, instruments and others: This includes whatever will be required

to achieve the goals.

Page 17 of 149